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, 2007

Date of reporting period: February 28, 2007

Item 1. Reports to Stockholders.

Table of Contents

Fund Performance Overviews	1
Shareholder Expenses	12
Schedules of Investments	14
iShares MSCI Austria Index Fund	14
iShares MSCI Belgium Index Fund	20
iShares MSCI EMU Index Fund	21
iShares MSCI France Index Fund	30
iShares MSCI Germany Index Fund	37
iShares MSCI Italy Index Fund	44
iShares MSCI Netherlands Index Fund	50
iShares MSCI Spain Index Fund	56
iShares MSCI Sweden Index Fund	62
iShares MSCI Switzerland Index Fund	68
iShares MSCI United Kingdom Index Fund	70
Financial Statements	74
Financial Highlights	82
Notes to Financial Statements	93
iShares Family of Funds	102

Fund Performance Overview

iSHARES^® MSCI AUSTRIA INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Austria Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 17.53%, while the Index returned 19.76%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
21.80%	21.23%	22.86%	37.62%	37.51%	38.93%	15.22%	15.23%	16.03%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
21.80%	21.23%	22.86%	393.59%	391.65%	417.52%	312.27%	312.86%	342.24%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	43.66	%
Industrial	13.95
Communications	12.79
Basic Materials	11.34
Energy	11.34
Utilities	5.58
Consumer Cyclical	1.04
Short-Term and Other Net Assets	0.30
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Erste Bank der Oesterreichischen Sparkassen AG	19.78	%
Telekom Austria AG	12.79
OMV AG	11.34
Meinl European Land Ltd.	5.18
CA Immobilien Anlagen AG	5.04
Wienerberger AG	4.98
Boehler-Uddeholm AG	4.85
voestalpine AG	4.68
Raiffeisen International Bank Holding AG	4.66
Oesterreichische Elektrizitaetswirtschafts AG Class A	4.54
TOTAL	77.84	%

FUND PERFORMANCE OVERVIEWS 1

Fund Performance Overview

iSHARES^® MSCI BELGIUM INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Belgium Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 13.72%, while the Index returned 13.47%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
25.90%	25.73%	25.62%	23.07%	23.17%	20.95%	10.80%	10.76%	10.72%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
25.90%	25.73%	25.62%	182.39%	183.48%	158.85%	178.95%	177.82%	176.88%

“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” the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	53.34	%
Consumer Non-Cyclical	18.25
Basic Materials	8.46
Diversified	7.91
Communications	6.77
Industrial	4.11
Consumer Cyclical	1.04
Short-Term and Other Net Assets	0.12
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Fortis	24.02	%
KBC Group NV	14.26
Dexia SA	10.77
UCB SA	4.91
Solvay SA	4.91
Belgacom SA	4.89
InBev	4.88
Groupe Bruxelles Lambert SA	4.83
Delhaize Group	4.16
Cofinimmo	3.80
TOTAL	81.43	%

2 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI EMU INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI EMU Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 14.45%, while the Index returned 14.64%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
26.60%	26.69%	26.89%	16.35%	16.33%	16.71%	5.26%	5.28%	5.61%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
26.60%	26.69%	26.89%	113.19%	113.01%	116.57%	40.29%	40.47%	43.40%

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.

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

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	33.20	%
Communications	12.45
Industrial	11.27
Consumer Non-Cyclical	11.02
Utilities	8.62
Consumer Cyclical	7.19
Energy	6.65
Basic Materials	6.03
Technology	2.56
Diversified	0.87
Short-Term and Other Net Assets	0.14
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Total SA (France)	3.40	%
Banco Santander Central Hispano SA (Spain)	2.47
Telefonica SA (Spain)	2.15
Allianz SE (Germany)	2.07
Siemens AG (Germany)	2.06
BNP Paribas (France)	2.01
Sanofi-Aventis (France)	1.98
Nokia OYJ (Finland)	1.95
Banco Bilbao Vizcaya Argentaria SA (Spain)	1.92
E.ON AG (Germany)	1.85
TOTAL	21.86	%

FUND PERFORMANCE OVERVIEWS 3

Fund Performance Overview

iSHARES^® MSCI FRANCE INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI France Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 10.90%, while the Index returned 11.18%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
25.07%	24.93%	25.45%	15.26%	15.21%	15.52%	10.82%	10.80%	11.08%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
25.07%	24.93%	25.45%	103.38%	102.95%	105.73%	179.31%	178.78%	186.01%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	21.89	%
Consumer Non-Cyclical	17.87
Industrial	13.07
Energy	11.90
Communications	11.21
Consumer Cyclical	7.97
Utilities	6.03
Basic Materials	4.87
Technology	2.86
Diversified	2.09
Short-Term and Other Net Assets	0.24
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Total SA	11.35	%
BNP Paribas	6.74
Sanofi-Aventis	6.67
AXA	5.48
Societe Generale Class A	4.78
Suez SA	3.80
France Telecom SA	3.54
Vivendi SA	3.51
Carrefour SA	3.08
Groupe Danone	2.89
TOTAL	51.84	%

4 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI GERMANY INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Germany Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 18.55%, while the Index returned 18.80%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
27.37%	27.44%	27.67%	15.56%	15.62%	15.80%	8.88%	8.92%	9.18%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
27.37%	27.44%	27.67%	106.09%	106.62%	108.24%	134.22%	134.93%	140.74%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	27.20	%
Industrial	15.52
Consumer Cyclical	15.33
Utilities	13.33
Basic Materials	11.52
Consumer Non-Cyclical	5.58
Communications	5.53
Technology	5.52
Energy	0.26
Short-Term and Other Net Assets	0.21
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Allianz SE	9.51	%
Siemens AG	9.15
E.ON AG	8.37
Deutsche Bank AG	6.99
DaimlerChrysler AG Registered	6.38
Deutsche Telekom AG	5.09
BASF AG	4.91
RWE AG	4.65
Bayer AG	4.29
SAP AG	4.06
TOTAL	63.40	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI ITALY INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Italy Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 10.32%, while the Index returned 10.51%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
23.72%	23.70%	23.38%	18.91%	18.91%	18.69%	13.18%	13.13%	13.10%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
23.72%	23.70%	23.38%	137.76%	137.71%	135.55%	244.87%	243.39%	242.35%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	49.56	%
Energy	15.61
Communications	13.01
Utilities	9.07
Consumer Cyclical	5.51
Consumer Non-Cyclical	4.09
Industrial	2.99
Short-Term and Other Net Assets	0.16
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Eni SpA	15.61	%
UniCredito Italiano SpA	14.05
Intesa Sanpaolo SpA	9.82
Telecom Italia SpA	6.40
Assicurazioni Generali SpA	4.87
Enel SpA	4.85
Terna SpA	4.22
Capitalia SpA	3.17
Mediobanca SpA	3.16
Banco Popolare di Verona e Novara Scrl	3.16
TOTAL	69.31	%

6 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI NETHERLANDS INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Netherlands Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 10.87%, while the Index returned 10.93%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
23.49%	23.56%	23.21%	11.77%	11.80%	12.20%	5.99%	5.89%	7.25%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
23.49%	23.56%	23.21%	74.40%	74.71%	77.80%	78.84%	77.23%	101.42%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	41.58	%
Consumer Non-Cyclical	20.22
Industrial	13.83
Communications	11.33
Basic Materials	6.57
Technology	3.73
Energy	1.70
Consumer Cyclical	0.99
Short-Term and Other Net Assets	0.05
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
ING Groep NV	17.60	%
ABN AMRO Holding NV	13.81
Unilever NV	9.02
Koninklijke Philips Electronics NV	8.99
Koninklijke KPN NV	4.95
TNT NV	4.84
Aegon NV	4.82
Akzo Nobel NV	4.50
Reed Elsevier NV	4.07
Koninklijke Ahold NV	3.78
TOTAL	76.38	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI SPAIN INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Spain Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 21.99%, while the Index returned 22.04%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
37.32%	37.32%	36.96%	23.89%	23.89%	23.83%	15.32%	15.31%	15.49%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
37.32%	37.32%	36.96%	191.91%	191.87%	191.12%	316.06%	315.47%	322.09%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	39.72	%
Communications	18.34
Utilities	15.08
Industrial	8.32
Consumer Non-Cyclical	7.53
Energy	5.35
Consumer Cyclical	3.45
Basic Materials	1.42
Technology	0.68
Short-Term and Other Net Assets	0.11
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Banco Santander Central Hispano SA	18.86	%
Telefonica SA	17.08
Banco Bilbao Vizcaya Argentaria SA	13.31
Endesa SA	5.17
Banco Popular Espanol SA	4.95
Iberdrola SA	4.89
Repsol YPF SA	4.30
Actividades de Construcciones y Servicios SA	3.22
Altadis SA	3.09
Industria de Diseno Textil SA	2.84
TOTAL	77.71	%

8 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SWEDEN INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Sweden Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 22.79%, while the Index returned 23.14%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
33.74%	33.33%	33.79%	21.03%	20.96%	21.19%	10.92%	10.86%	12.16%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
33.74%	33.33%	33.79%	159.74%	158.90%	161.43%	181.89%	180.27%	214.92%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Communications	23.88	%
Financial	21.46
Consumer Cyclical	20.04
Industrial	18.98
Basic Materials	7.43
Consumer Non-Cyclical	7.40
Energy	0.69
Technology	0.14
Short-Term and Other Net Assets	(0.02	)
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Telefonaktiebolaget LM Ericsson Class B	16.10	%
Nordea Bank AB	9.61
Hennes & Mauritz AB Class B	7.55
Volvo AB Class B	5.11
Sandvik AB	4.83
TeliaSonera AB	4.80
Svenska Handelsbanken AB Class A	4.47
Skandinaviska Enskilda Banken AB Class A	4.34
Atlas Copco AB Class A	3.23
Svenska Cellulosa AB Class B	2.96
TOTAL	63.00	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® MSCI SWITZERLAND INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Switzerland Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 11.22%, while the Index returned 9.29%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
23.41%	23.90%	21.60%	15.78%	15.95%	16.11%	9.28%	9.29%	10.42%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
23.41%	23.90%	21.60%	108.01%	109.61%	110.99%	142.80%	143.22%	169.33%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Consumer Non-Cyclical	45.10	%
Financial	28.24
Industrial	10.15
Consumer Cyclical	6.43
Basic Materials	6.33
Communications	2.78
Technology	0.72
Short-Term and Other Net Assets	0.25
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Nestle SA Registered	13.43	%
Roche Holding AG	12.33
Novartis AG Registered	11.67
UBS AG Registered	10.73
Zurich Financial Services AG Registered	4.90
Credit Suisse Group Registered	4.68
Swiss Reinsurance Co. Registered	4.49
Compagnie Financiere Richemont AG Class A	3.83
ABB Ltd. Registered	3.81
Holcim Ltd. Registered	3.13
TOTAL	73.00	%

10 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI United Kingdom Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 9.08%, while the Index returned 9.40%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
22.93%	22.53%	23.71%	13.68%	13.79%	14.51%	8.05%	8.13%	8.63%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
22.93%	22.53%	23.71%	89.87%	90.75%	96.92%	116.90%	118.41%	128.91%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	27.79	%
Consumer Non-Cyclical	21.88
Energy	15.07
Communications	10.09
Basic Materials	7.54
Consumer Cyclical	7.29
Utilities	4.96
Industrial	4.22
Technology	0.62
Diversified	0.14
Short-Term and Other Net Assets	0.40
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
HSBC Holdings PLC	6.70	%
BP PLC	6.61
GlaxoSmithKline PLC	5.34
Vodafone Group PLC	4.85
Royal Bank of Scotland Group PLC	4.11
Royal Dutch Shell PLC Class A	3.98
Barclays PLC	3.13
Royal Dutch Shell PLC Class B	2.95
AstraZeneca PLC	2.86
HBOS PLC	2.65
TOTAL	43.18	%

FUND PERFORMANCE OVERVIEWS 11

Shareholder Expenses (Unaudited)

iSHARES^®, INC.

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2006 to February 28, 2007.

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 (9/1/06)	Ending Account Value (2/28/07)	Annualized Expense Ratio		Expenses Paid During Period a (9/1/06 to 2/28/07)
Austria
Actual	$    1,000.00	$    1,175.30	0.52	%	$    2.80
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Belgium
Actual	1,000.00	1,137.20	0.52		2.76
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
EMU
Actual	1,000.00	1,144.50	0.52		2.76
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
France
Actual	1,000.00	1,109.00	0.52		2.72
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61

12 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (9/1/06)	Ending Account Value (2/28/07)	Annualized Expense Ratio		Expenses Paid During Period a (9/1/06 to 2/28/07)
Germany
Actual	$    1,000.00	$    1,185.50	0.52	%	$    2.82
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Italy
Actual	1,000.00	1,103.20	0.52		2.71
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Netherlands
Actual	1,000.00	1,108.70	0.52		2.72
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Spain
Actual	1,000.00	1,219.90	0.52		2.86
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Sweden
Actual	1,000.00	1,227.90	0.52		2.87
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Switzerland
Actual	1,000.00	1,112.20	0.52		2.72
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
United Kingdom
Actual	1,000.00	1,090.80	0.52		2.70
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61

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

SHAREHOLDER EXPENSES 13

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.70%
BANKS – 24.44%
Erste Bank der Oesterreichischen Sparkassen AG	1,164,910	$	86,418,326
Raiffeisen International Bank Holding AG	151,552		20,359,589
			106,777,915
BUILDING MATERIALS – 4.98%
Wienerberger AG	354,520		21,776,099
			21,776,099
CHEMICALS – 0.14%
Lenzing AG	1,746		611,190
			611,190
ELECTRIC – 5.58%
EVN AGa	40,138		4,514,678
Oesterreichische Elektrizitaetswirtschafts AG Class A	472,414		19,850,562
			24,365,240
ENGINEERING & CONSTRUCTION – 2.24%
Flughafen Wien AG	105,774		9,791,729
			9,791,729
ENTERTAINMENT – 1.04%
bwin Interactive Entertainment AGb	139,180		4,559,476
			4,559,476
ENVIRONMENTAL CONTROL – 0.27%
BWT AG	16,714		819,107
Christ Water Technology AGb	21,106		362,440
			1,181,547
FOREST PRODUCTS & PAPER – 1.67%
Mayr-Melnhof Karton AG	37,698		7,297,278
			7,297,278
INSURANCE – 3.42%
Wiener Staedtische Allgemeine Versicherung AG	215,110		14,960,474
			14,960,474
IRON & STEEL – 9.53%
Boehler-Uddeholm AG	288,351		21,196,932
voestalpine AG	330,934		20,458,492
			41,655,424

Security	Shares or Principal		Value
MACHINERY – 3.65%
Andritz AG		75,640	$	15,936,707
				15,936,707
MACHINERY – CONSTRUCTION & MINING – 0.54%
Palfinger AG		16,104		2,361,256
				2,361,256
MANUFACTURING – 2.27%
RHI AGb		218,624		9,917,096
				9,917,096
OIL & GAS – 11.34%
OMV AG		888,751		49,530,876
				49,530,876
REAL ESTATE – 15.80%
CA Immobilien Anlagen AGb		724,104		21,999,619
Immoeast AGb		719,761		10,648,605
IMMOFINANZ AGb		903,739		13,716,693
Meinl European Land Ltd.b		838,558		22,652,326
				69,017,243
TELECOMMUNICATIONS – 12.79%
Telekom Austria AG		2,239,203		55,903,841
				55,903,841
TOTAL COMMON STOCKS (Cost: $347,132,406)				435,643,391
SHORT-TERM INVESTMENTS – 0.79%
CERTIFICATES OF DEPOSITc – 0.04%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	37,130		37,130
Deutsche Bank AG
5.35%, 08/08/07		61,884		61,884
Washington Mutual Bank
5.33%, 03/19/07		61,884		61,884
				160,898
COMMERCIAL PAPERc – 0.18%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d		23,543		23,395
BNP Paribas Finance Inc.
5.12%, 06/06/07		8,664		8,544

14 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2007

Security	Principal		Value
Bryant Park Funding LLC
5.27%, 03/06/07d	$	6,100	$	6,096
Cantabric Finance LLC
5.25%, 03/06/07d		19,803		19,788
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		18,565		18,432
Concord Minutemen Capital Co. LLC
5.29%, 03/19/07d		12,616		12,583
Crown Point Capital Co. LLC
5.20%, 07/18/07d		28,594		28,020
Edison Asset Securitization LLC
5.21%, 04/11/07d		10,259		10,198
Five Finance Inc.
5.22%, 04/20/07d		11,387		11,304
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07d		43,319		42,575
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d		40,596		40,547
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07d		48,269		47,669
Harrier Finance Funding LLC
5.12%, 06/06/07d		24,753		24,412
Irish Permanent Treasury PLC
5.18%, 07/10/07		12,377		12,143
KKR Pacific Funding Trust
5.29%, 03/13/07d		30,942		30,887
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07d		31,276		30,744
Liberty Street Funding Corp.
5.27%, 03/06/07d		2,970		2,968
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		55,843		55,313
Nationwide Building Society
5.21%, 04/13/07d		23,516		23,369
Nestle Capital Corp.
5.19%, 08/09/07		14,852		14,507
Sedna Finance Inc.
5.22%, 04/17/07d		14,109		14,013

Security	Shares or Principal		Value
Simba Funding Corp.
5.20%, 07/23/07d	$	24,753	$	24,239
Societe Generale
5.18%, 05/16/07		61,884		61,207
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07d		94,300		94,209
Thornburg Mortgage Capital Resources LLC
5.28%, 03/12/07d		18,120		18,090
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07d		12,995		12,985
Tulip Funding Corp.
5.29%, 03/15/07d		47,517		47,420
Westpac Banking Corp.
5.20%, 07/12/07d		22,278		21,850
Zela Finance Inc.
5.20%, 07/16/07d		14,852		14,558
				772,065
MEDIUM-TERM NOTESc – 0.02%
Bank of America N.A.
5.28%, 04/20/07		6,188		6,188
Cullinan Finance Corp.
5.71%, 06/28/07d		18,565		18,565
K2 USA LLC
5.39%, 06/04/07d		18,565		18,565
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07d		28,962		28,962
				72,280
MONEY MARKET FUNDS – 0.00%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares
5.30%e,f		16,395		16,395
				16,395

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2007

Security	Principal		Value
REPURCHASE AGREEMENTSc – 0.11%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $49,514 (collateralized by non-U.S. Government debt securities, value $51,032, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	49,507	$	49,507
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $37,136 (collateralized by non-U.S. Government debt securities, value $40,876, 0.00% to 9.20%, 10/17/18 to 11/25/52).		37,130		37,130
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $2,475 (collateralized by non-U.S. Government debt securities, value $2,601, 5.43%, 3/15/08).		2,475		2,475
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $37,136 (collateralized by non-U.S. Government debt securities, value $40,009, 0.00% to 10.00%, 5/27/33 to 8/25/46).		37,130		37,130
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $49,514 (collateralized by non-U.S. Government debt securities, value $52,023, 4.91% to 6.31%, 10/25/33 to 8/25/46).		49,507		49,507
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $27,233 (collateralized by non-U.S. Government debt securities, value $29,343, 0.00% to 10.00%, 5/27/33 to 8/25/46).		27,229		27,229

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $14,854 (collateralized by non-U.S. Government debt securities, value $16,546, 0.00% to 10.00%, 5/27/33 to 2/28/37).	$	14,852	$	14,852
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $9,186 (collateralized by non-U.S. Government debt securities, value $9,652, 4.52% to 6.89%, 1/15/09 to 10/25/36).		9,185		9,185
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $103,981 (collateralized by non-U.S. Government debt securities, value $114,631, 0.00% to 10.00%, 4/1/07 to 12/31/49).		103,965		103,965
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $12,379 (collateralized by non-U.S. Government debt securities, value $13,007, 3.72% to 5.99%, 12/15/36 to 6/1/46).		12,377		12,377
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $6,189 (collateralized by non-U.S. Government debt securities, value $6,504, 6.25% to 9.56%, 5/15/11 to 2/1/30).		6,188		6,188
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $24,757 (collateralized by non-U.S. Government debt securities, value $26,012, 1.63% to 14.50%, 5/1/07 to 9/18/37).		24,753		24,753

16 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2007

Security	Principal		Value
Morgan Stanley 5.36%, due 3/1/07, maturity value $24,757 (collateralized by non-U.S. Government debt securities, value $26,017, 0.00% to 10.00%, 3/1/07 to 2/28/37).	$	24,753	$	24,753
Morgan Stanley 5.51%, due 2/4/08, maturity value $18,213 (collateralized by non-U.S. Government debt securities, value $20,549, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		17,327		17,327
Wachovia Capital 5.38%, due 3/1/07, maturity value $54,466 (collateralized by non-U.S. Government debt securities, value $57,226, 0.00% to 8.32%, 2/15/08 to 3/15/49).		54,458		54,458
				470,836
TIME DEPOSITSc – 0.03%
Bank of Nova Scotia
5.30%, 03/02/07		10,381		10,381
Chase Bank USA N.A.
5.38%, 03/01/07		37,130		37,130
Citibank N.A.
5.47%, 03/01/07		37,130		37,130
Deutsche Bank AG
5.38%, 03/01/07		58,139		58,139
				142,780
VARIABLE & FLOATING RATE NOTESc – 0.41%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08d		63,369		63,375
American Express Centurion Bank
5.41%, 07/19/07		27,229		27,241
American Express Credit Corp.
5.42%, 03/05/08		7,426		7,430
AmeriCredit Automobile Receivables Trust
5.35%, 03/06/07		1,128		1,128

Security	Principal		Value
Arkle Master Issuer PLC Series 2006-1A Class 1A
5.30%, 11/19/07d	$	18,565	$	18,565
ASIF Global Financing
5.40%, 05/03/07d		2,475		2,476
Australia & New Zealand Banking Group Ltd.
5.32%, 02/22/08d		16,090		16,090
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08d		35,893		35,893
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07d		63,121		63,122
BMW US Capital LLC
5.32%, 01/15/08d		24,753		24,753
BNP Paribas
5.33%, 11/19/07d		45,794		45,794
Brigantine High Grade Funding Ltd.
5.40%, 09/05/07d		23,763		23,761
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07d		18,070		18,069
CC USA Inc.
5.36%, 07/30/07d		12,377		12,377
Commodore CDO Ltd.
5.44%, 12/12/07d		6,188		6,188
Credit Agricole SA
5.33%, 11/23/07		24,753		24,753
Credit Suisse First Boston NY
5.36%, 04/24/07		12,377		12,377
Cullinan Finance Corp.
5.36%, 04/25/07d		6,188		6,188
DaimlerChrysler Auto Trust Series 2006-C Class A1
5.33%, 10/08/07d		1,899		1,899
DEPFA Bank PLC
5.40%, 12/14/07d		24,753		24,753
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07d		28,467		28,467
Eli Lilly Services Inc.
5.31%, 03/01/07d		16,523		16,523

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2007

Security	Principal		Value
Fifth Third Bancorp
5.32%, 02/22/08d	$	49,507	$	49,507
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07d		16,090		16,089
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08d		25,991		25,994
Granite Master Issuer PLC
5.29%, 08/20/07d		86,637		86,637
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07d		32,180		32,180
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		37,130		37,132
HBOS Treasury Services PLC
5.46%, 01/24/08d		24,753		24,753
Holmes Financing PLC
5.29%, 07/16/07d		43,319		43,319
JP Morgan Securities Inc.
5.40%, 11/16/07		49,507		49,507
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08g		68,072		68,072
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07d		18,565		18,565
Kestrel Funding LLC
5.30%, 07/11/07d		9,901		9,901
Kommunalkredit Austria AG
5.32%, 02/08/08d		14,852		14,852
Leafs LLC
5.32%, 01/22/08d		23,983		23,983
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07d		27,229		27,228
Lothian Mortgages Master Issuer PLC
5.29%, 04/24/07d		8,727		8,727
Marshall & Ilsley Bank
5.32%, 02/15/08		13,614		13,614

Security	Principal		Value
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d	$	44,797	$	44,797
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		27,229		27,229
Metropolitan Life Global Funding I
5.33%, 03/06/08d		37,130		37,130
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07d,g		2,475		2,475
Mound Financing PLC
5.29%, 05/08/07d		23,268		23,268
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08d		39,606		39,605
National City Bank of Indiana
5.34%, 05/21/07		12,377		12,377
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08d		81,687		81,696
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08d		24,815		24,812
Northern Rock PLC
5.38%, 02/01/08d		29,704		29,705
Northlake CDO I
5.42%, 09/06/07d		7,426		7,426
Pricoa Global Funding I
5.31%, 02/27/08d		33,417		33,417
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07d		35,893		35,892
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		24,753		24,753
Strips III LLC
5.37%, 07/24/07d		5,037		5,037
SunTrust Bank
5.29%, 05/01/07		24,753		24,754
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07d		60,399		60,396
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07d		40,843		40,842

18 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 28, 2007

Security	Principal		Value
Wachovia Asset Securitization Inc. 5.31%, 03/25/07d	$	27,942	$	27,942
Wachovia Bank N.A. 5.36%, 05/22/07		49,507		49,507
Wal-Mart Stores Inc. 5.50%, 07/16/07d		18,565		18,570
Wells Fargo & Co. 5.33%, 11/15/07d		12,377		12,377
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07d		18,565		18,565
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07d		74,260		74,254
Wind Master Trust 5.31%, 07/25/07d		9,901		9,901
				1,798,009
TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,433,263)				3,433,263
TOTAL INVESTMENTS
IN SECURITIES – 100.49%
(Cost: $350,565,669)				439,076,654
Other Assets, Less Liabilities – (0.49)%				(2,135,727	)
NET ASSETS – 100.00%			$	436,940,927

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

^b Non-income earning security.

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited)

iSHARES^® MSCI BELGIUM INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.88%
BANKS – 49.54%
Banque Nationale de Belgique	256	$	1,270,797
Dexia SA	956,377		28,159,541
Fortis	1,461,068		62,763,528
KBC Group NV	306,896		37,280,057
			129,473,923
BEVERAGES – 4.88%
InBev	192,564		12,746,351
			12,746,351
CHEMICALS – 4.91%
Solvay SA	90,311		12,827,933
			12,827,933
ELECTRICAL COMPONENTS & EQUIPMENT – 1.34%
NV Bekaert SA	29,184		3,496,540
			3,496,540
ELECTRONICS – 0.64%
Barco NV	18,202		1,668,889
			1,668,889
FOOD – 7.20%
Colruyt SA	36,461		7,937,288
Delhaize Group	130,867		10,883,817
			18,821,105
HOLDING COMPANIES - DIVERSIFIED – 7.91%
Groupe Bruxelles Lambert SA	112,981		12,622,910
Sofina SA	73,419		8,059,273
			20,682,183
MANUFACTURING – 1.39%
AGFA-Gevaert NV	163,486		3,636,713
			3,636,713
MINING – 3.55%
Umicore	54,291		9,277,860
			9,277,860
PHARMACEUTICALS – 6.17%
Omega Pharma SA	42,707		3,298,516
UCB SA	199,161		12,843,650
			16,142,166
REAL ESTATE INVESTMENT TRUSTS – 3.80%
Cofinimmo	49,942		9,930,597
			9,930,597

Security	Shares	Value
RETAIL – 1.04%
SA D’Ieteren NV	7,290	$	2,720,397
			2,720,397
TELECOMMUNICATIONS – 6.77%
Belgacom SA	298,612		12,788,118
Mobistar SA	58,031		4,898,322
			17,686,440
TRANSPORTATION – 0.74%
Compagnie Maritime Belge SA	24,662		1,313,515
Euronav SA	20,420		616,082
			1,929,597
TOTAL COMMON STOCKS (Cost: $224,940,604)
			261,040,694
SHORT-TERM INVESTMENTS – 0.06%
MONEY MARKET FUNDS – 0.06%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%a,b	161,525		161,525
			161,525
TOTAL SHORT-TERM INVESTMENTS
(Cost: $161,525)			161,525
TOTAL INVESTMENTS
IN SECURITIES – 99.94%
(Cost: $225,102,129)			261,202,219
Other Assets, Less Liabilities – 0.06%			151,343
NET ASSETS – 100.00%		$	261,353,562

^a Affiliated issuer. See Note 2.

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

See notes to financial statements.

20 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 98.51%
AUSTRIA – 1.85%
Andritz AG	6,086	$	1,282,269
Boehler-Uddeholm AG	22,981		1,689,353
Erste Bank der Oesterreichischen Sparkassen AG	110,194		8,174,692
Flughafen Wien AG	6,019		557,192
Immoeast AGa	153,716		2,274,173
IMMOFINANZ AGa	272,244		4,132,042
Mayr-Melnhof Karton AG	5,171		1,000,961
Meinl European Land Ltd.a	108,240		2,923,933
Oesterreichische Elektrizitaetswirtschafts AG Class A	47,100		1,979,115
OMV AG	97,270		5,420,943
Raiffeisen International Bank Holding AG	21,761		2,923,386
RHI AGa	19,698		893,529
Telekom Austria AG	191,219		4,773,965
voestalpine AG	45,881		2,836,384
Wiener Staedtische Allgemeine Versicherung AG	16,884		1,174,249
Wienerberger AG	38,436		2,360,900
			44,397,086
BELGIUM – 3.66%
AGFA-Gevaert NV	48,685		1,082,988
Barco NV	7,422		680,502
Belgacom SA	71,765		3,073,350
Cofinimmo	4,750		944,502
Colruyt SA	9,035		1,966,852
Compagnie Maritime Belge SA	13,932		742,028
Delhaize Group	43,522		3,619,595
Dexia SA	323,637		9,529,160
Euronav SA	12,849		387,661
Fortis	645,088		27,711,235
Groupe Bruxelles Lambert SA	41,207		4,603,891
InBev	91,674		6,068,159
KBC Group NV	105,101		12,767,098
Mobistar SA	17,594		1,485,087
NV Bekaert SA	8,806		1,055,048
Omega Pharma SA	11,675		901,730

Security	Shares	Value
SA D’Ieteren NV	1,437	$	536,243
Solvay SA	37,503		5,326,992
UCB SA	47,800		3,082,564
Umicore	14,098		2,409,226
			87,973,911
FINLAND – 4.36%
Amer Group OYJ	34,800		764,006
Cargotec Corp. Class B	24,177		1,424,373
Elisa OYJ Class A	85,655		2,525,418
Fortum OYJ	233,815		6,442,776
KCI Konecranes OYJ	38,976		1,214,539
Kesko OYJ Class B	31,484		1,657,729
Kone OYJ Class B	45,472		2,598,465
Metso OYJ	68,987		3,418,225
Neste Oil OYJ	81,951		2,628,387
Nokia OYJ	2,155,265		46,946,985
Nokian Renkaat OYJ	76,858		1,874,162
OKO Bank PLC Class A	43,059		737,718
Orion OYJa	48,152		1,058,410
Outokumpu OYJ	55,097		2,049,496
Rautaruukki OYJ	50,467		2,306,588
Sampo OYJ	221,351		6,169,505
SanomaWSOY OYJ Class Bb	18,057		515,689
Stora Enso OYJ Class R	353,732		5,826,761
TietoEnator OYJ	42,133		1,182,681
UPM-Kymmene OYJ	298,635		7,771,293
Uponor OYJ	41,207		1,440,825
Wartsila OYJ Class B	33,930		2,025,856
YIT OYJ	63,104		2,054,756
			104,634,643
FRANCE – 29.10%
Accor SA	115,287		10,162,202
Air France-KLM	64,357		2,788,406
Alcatel-Lucent	1,148,240		14,636,808
ALSTOMa	61,116		7,374,793
Arcelor Mittal	378,861		19,172,486
Atos Origin SAa	37,368		2,019,863
AXA	924,611		39,279,095
BNP Paribas	463,009		48,280,631
Bouygues SA	113,898		7,928,903
Business Objects SAa	52,976		1,930,711
Cap Gemini SA	72,691		5,074,719

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2007

Security	Shares	Value
Carrefour SA	333,360	$	22,228,963
Casino Guichard-Perrachon SA	23,030		1,980,438
CNP Assurances SA	20,136		2,253,969
Compagnie de Saint-Gobain	171,865		15,982,565
Compagnie Generale des Etablissements Michelin Class B	83,373		8,658,544
Credit Agricole SAb	378,039		15,061,018
Dassault Systemes SA	31,960		1,633,820
Essilor International SA	53,708		6,118,347
European Aeronautic Defence and Space Co.b	59,264		2,028,359
France Telecom SA	931,093		25,250,407
Gaz de Franceb	110,813		4,875,866
Gecina SA	4,189		769,151
Groupe Danone	126,862		20,064,157
Hermes International	36,114		4,710,848
Imerys SA	19,172		1,707,429
Klepierre	12,122		2,385,871
Lafarge SA	85,655		12,791,152
Lagardere SCA	64,960		4,984,640
L’Air Liquide SA	66,712		15,269,110
L’Oreal SA	164,365		17,180,543
LVMH Moet Hennessy Louis Vuitton SA	133,344		14,748,266
M6-Metropole Television	34,262		1,214,283
Neopost SA	17,131		2,205,441
Pernod Ricard SA	48,884		10,072,792
PPR SA	37,966		5,702,190
PSA Peugeot Citroen SA	86,462		5,823,669
Publicis Groupe SA	76,404		3,419,368
Renault SA	102,323		12,149,853
Sanofi-Aventis	560,230		47,554,702
Schneider Electric SA	125,936		15,271,404
SCOR	49,610		1,258,221
Societe BIC	13,572		926,157
Societe des Autoroutes Paris-Rhin-Rhone	16,244		1,362,552
Societe Generale Class A	205,467		34,561,557
Societe Television Francaise 1	66,672		2,243,153
Sodexho Alliance SA	58,475		4,028,199
STMicroelectronics NV	386,605		7,491,762

Security	Shares	Value
Suez SA	556,526	$	26,920,937
Technip SA	50,467		3,387,217
Thales SA	81,951		4,215,379
Total SA	1,212,597		81,722,816
Unibail Holding	25,465		7,351,247
Valeo SA	41,026		2,016,532
Vallourec SA	19,909		4,926,553
Veolia Environnement	158,346		11,152,792
Vinci SA	110,194		15,235,845
Vivendi SA	638,940		25,193,633
Zodiac SA	32,018		2,173,921
			698,914,255
GERMANY – 21.22%
Adidas AG	111,120		5,448,621
Allianz SE	231,500		49,778,112
ALTANA AG	39,440		2,383,496
BASF AG	274,559		27,871,859
Bayer AG	401,421		23,050,275
Beiersdorf AG	30,095		1,947,945
Bilfinger Berger AG	18,520		1,534,626
Celesio AG	39,904		2,260,783
Commerzbank AG	349,102		14,387,764
Continental AG	74,543		9,286,477
DaimlerChrysler AG Registered	504,670		34,272,160
Deutsche Bank AG	289,375		37,938,303
Deutsche Boerse AG	58,338		11,664,041
Deutsche Lufthansa AG	126,399		3,416,140
Deutsche Post AG	431,516		13,748,667
Deutsche Postbank AG	31,947		2,681,835
Deutsche Telekom AG	1,499,657		26,861,979
Douglas Holding AG	16,240		939,608
E.ON AG	339,379		44,444,729
Fresenius Medical Care AG & Co. KGaA	35,188		4,973,530
Heidelberger Druckmaschinen AG	36,114		1,545,635
Hochtief AG	29,632		2,576,352
Hypo Real Estate Holding AG	77,784		4,919,611
Infineon Technologies AGa	432,905		6,633,412
IVG Immobilien AG	49,541		2,206,677
KarstadtQuelle AGa,b	37,503		1,300,910
Linde AG	60,094		6,113,144

22 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2007

Security	Shares	Value
MAN AG	71,302	$	7,650,759
Merck KGaA	31,583		3,923,725
METRO AG	87,074		6,013,266
Muenchener Rueckversicherungs- Gesellschaft AG	111,120		17,677,193
Puma AG	6,945		2,463,218
Rheinmetall AG	19,446		1,563,066
RWE AG	242,149		24,661,724
Salzgitter AG	23,150		2,855,254
SAP AG	494,484		22,737,497
Siemens AG	468,556		49,360,389
Suedzucker AG	35,651		752,078
ThyssenKrupp AG	198,673		9,723,295
TUI AGb	135,196		3,148,492
Volkswagen AG	93,063		11,720,296
Wincor Nixdorf AG	7,888		1,285,681
			509,722,624
GREECE – 1.54%
Coca-Cola Hellenic Bottling Co. SA ADR	168,995		6,597,565
Hellenic Telecommunications
Organization SA ADRa	820,908		11,147,931
National Bank of Greece SA ADR	1,848,828		19,338,741
			37,084,237
IRELAND – 2.73%
Allied Irish Banks PLC	495,873		14,574,271
Bank of Ireland	554,211		12,628,467
C&C Group PLC	150,475		2,087,084
CRH PLC	301,876		12,580,976
DCC PLC	47,328		1,594,207
DEPFA Bank PLC	209,739		3,515,825
Elan Corp. PLCa	235,667		3,028,991
Grafton Group PLCa	120,957		1,904,556
Greencore Group PLC	112,141		681,410
IAWS Group PLC	60,653		1,407,701
Independent News & Media PLC	341,697		1,489,503
Irish Life & Permanent PLC	157,930		4,468,590
Kerry Group PLC Class A	70,839		1,871,496
Kingspan Group PLC	69,453		1,889,925
Paddy Power PLC	57,875		1,311,117
Ryanair Holdings PLCa	43,520		331,129

Security	Shares	Value
Total Produce PLCa	182,058	$	187,582
			65,552,830
ITALY – 10.68%
Alleanza Assicurazioni SpAb	221,118		2,839,074
Arnoldo Mondadori Editore SpA	57,528		594,254
Assicurazioni Generali SpA	518,560		22,248,535
Autogrill SpA	94,920		1,712,753
Autostrade SpA	163,968		4,938,332
Banca Monte dei Paschi di Siena SpAb	645,525		4,161,206
Banca Popolare di Milano Scrl	244,464		3,787,907
Banche Popolari Unite Scrl	186,589		5,299,207
Banco Popolare di Verona e Novara Scrl	209,739		6,344,553
Benetton Group SpA	30,430		499,643
Bulgari SpA	82,975		1,195,800
Capitalia SpA	920,140		7,912,638
Enel SpA	2,264,261		23,613,752
Eni SpA	1,437,458		43,957,455
Fiat SpAa	291,227		6,893,758
Finmeccanica SpA	208,380		6,143,793
Fondiaria-Sai SpA	41,442		1,890,817
Gruppo Editoriale L’Espresso SpAb	90,965		477,036
Intesa Sanpaolo SpA	4,118,812		29,951,300
Italcementi SpA	49,666		1,490,575
Lottomatica SpA	42,793		1,690,170
Luxottica Group SpA	71,862		2,249,749
Mediaset SpA	418,089		4,848,971
Mediobanca SpA	266,908		5,976,098
Mediolanum SpAb	152,894		1,270,362
Pirelli & C. SpA	1,485,934		1,658,604
Seat Pagine Gialle SpA	2,322,408		1,426,520
Snam Rete Gas SpA	466,241		2,785,322
Telecom Italia SpA	5,682,862		17,171,751
Terna SpA	436,900		1,517,834
Tiscali SpAa,b	165,889		556,593
UniCredito Italiano SpA	4,260,989		39,399,874
			256,504,236
NETHERLANDS – 10.12%
ABN AMRO Holding NV	1,007,025		35,264,389
Aegon NV	799,601		15,790,682

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2007

Security	Shares	Value
Akzo Nobel NV	151,401	$	9,317,681
ASML Holding NVa	275,948		6,783,596
Buhrmann NV	63,010		859,797
Corio NV	22,224		2,062,315
Euronext NV	48,825		5,304,745
Fugro NV	29,632		1,384,466
Hagemeyer NVa,b	301,413		1,425,382
Heineken NV	109,731		5,399,356
ING Groep NV	1,028,786		43,854,119
Koninklijke Ahold NVa	867,321		8,661,399
Koninklijke DSM NV	82,977		3,589,677
Koninklijke KPN NV	1,037,583		15,981,141
Koninklijke Philips Electronics NV	648,849		23,801,586
Oce NV	51,393		854,026
QIAGEN NVa,b	94,928		1,544,868
Randstad Holding NV	23,491		1,643,062
Reed Elsevier NV	384,753		6,790,079
Rodamco Europe NV	24,076		3,311,984
Royal Numico NV	94,530		4,864,912
SBM Offshore NV	70,215		2,494,061
TNT NV	229,185		9,842,140
Unilever NV	923,222		23,890,595
Vedior NV	93,526		2,037,227
Wereldhave NV	11,575		1,536,797
Wolters Kluwer NV CVA	156,957		4,741,691
			243,031,773
PORTUGAL – 1.12%
Banco BPI SA Registered	193,323		1,639,476
Banco Comercial Portugues SA Class R	1,355,664		4,942,510
Banco Espirito Santo SA	140,480		2,597,939
Brisa-Auto Estradas de Portugal SA	182,885		2,369,919
CIMPOR-Cimentos de Portugal SGPS SA	136,593		1,111,464
Energias de Portugal SA	932,945		5,102,027
Jeronimo Martins SGPS SA	23,880		577,891
Portugal Telecom SGPS SA	429,081		5,707,621
PT Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA	53,048		757,497

Security	Shares	Value
Sonae Industria SGPS SAa	77,784	$	911,382
Sonae SGPS SA	489,671		1,054,334
			26,772,060
SPAIN – 12.13%
Abertis Infraestructuras SAb	139,826		3,982,200
Acciona SA	15,742		3,143,073
Acerinox SA	100,934		2,683,908
Actividades de Construcciones y Servicios SA	120,843		6,830,463
Altadis SA	145,845		7,386,353
Antena 3 de Television SAb	47,733		1,067,486
Banco Bilbao Vizcaya Argentaria SA	1,891,355		46,045,243
Banco Popular Espanol SA	480,594		9,440,080
Banco Santander Central Hispano SA	3,209,979		59,405,507
Cintra Concesiones de Infraestructuras de Transporte SAb	138,513		2,433,484
Corporacion Mapfre SA	327,180		1,620,707
Ebro Puleva SA	46,763		1,087,180
Endesa SA	495,410		25,162,135
Fadesa Inmobiliaria SA	28,706		1,371,537
Fomento de Construcciones y Contratas SA	20,424		2,120,556
Gamesa Corporacion Tecnologica SA	110,194		3,160,124
Gas Natural SDG SA	96,385		4,120,068
Grupo Ferrovial SA	35,264		3,488,990
Iberdrola SA	409,292		17,933,502
Iberia Lineas Aereas de Espana SA	251,047		1,057,869
Indra Sistemas SA	75,932		1,745,261
Industria de Diseno Textil SA	118,528		6,887,495
NH Hoteles SAb	72,691		1,640,042
NH Hoteles SA Rightsa,b	72,691		24,965
Promotora de Informaciones SA	45,936		910,187
Repsol YPF SA	488,928		15,519,762
SacyrVallehermoso SA	52,319		2,840,453
Sociedad General de Aguas de Barcelona SA Class A	36,715		1,233,321
Sociedad General de Aguas de Barcelona SA Newa,c	327		10,730
Sogecable SAa,b	28,243		1,059,536

24 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2007

Security	Shares or Principal	Value
Telefonica SA	2,402,044	$	51,719,574
Union Fenosa SA	65,746		3,291,508
Zeltia SAa,b	97,304		880,456
			291,303,755
TOTAL COMMON STOCKS (Cost: $1,956,084,210)			2,365,891,410
PREFERRED STOCKS – 1.35%
GERMANY – 0.80%
Henkel KGaA	31,484		4,440,851
Porsche AG	4,640		6,076,313
ProSiebenSat.1 Media AG	49,078		1,661,582
RWE AG	20,372		1,863,276
Volkswagen AG	59,397		5,229,390
			19,271,412
ITALY – 0.55%
Intesa Sanpaolo SpA RNC	541,247		3,846,486
Telecom Italia SpA RNC	3,222,017		8,176,013
Unipol SpA	330,119		1,121,792
			13,144,291
TOTAL PREFERRED STOCKS (Cost: $25,564,911)			32,415,703
SHORT-TERM INVESTMENTS – 1.12%
CERTIFICATES OF DEPOSITd – 0.05%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$287,424		287,424
Deutsche Bank AG
5.35%, 08/08/07	479,039		479,039
Washington Mutual Bank
5.33%, 03/19/07	479,039		479,039
			1,245,502
COMMERCIAL PAPERd – 0.25%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07e	182,248		181,011
BNP Paribas Finance Inc.
5.12%, 06/06/07	67,066		66,141
Bryant Park Funding LLC
5.27%, 03/06/07e	47,222		47,187

Security	Principal		Value
Cantabric Finance LLC
5.25%, 03/06/07e	$	153,293	$	153,181
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07e		143,712		142,680
Concord Minutemen
Capital Co. LLC
5.29%, 03/19/07e		97,661		97,402
Crown Point Capital Co. LLC
5.20%, 07/18/07e		221,345		216,901
Edison Asset Securitization LLC
5.21%, 04/11/07e		79,411		78,940
Five Finance Inc.
5.22%, 04/20/07e		88,143		87,504
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07e		335,328		329,568
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07e		314,250		313,871
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07e		373,651		369,010
Harrier Finance Funding LLC
5.12%, 06/06/07e		191,616		188,975
Irish Permanent Treasury PLC
5.18%, 07/10/07		95,808		94,002
KKR Pacific Funding Trust
5.29%, 03/13/07e		239,520		239,097
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07e		242,103		237,982
Liberty Street Funding Corp.
5.27%, 03/06/07e		22,994		22,977
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07e		432,278		428,172
Nationwide Building Society
5.21%, 04/13/07e		182,035		180,902
Nestle Capital Corp.
5.19%, 08/09/07		114,969		112,301
Sedna Finance Inc.
5.22%, 04/17/07e		109,221		108,477
Simba Funding Corp.
5.20%, 07/23/07e		191,616		187,630

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
Societe Generale
5.18%, 05/16/07	$	479,039	$	473,801
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07e		729,972		729,266
Thornburg Mortgage Capital Resources LLC
5.28%, 03/12/07e		140,263		140,036
Three Pillars Funding Corp. 5.26%,
03/01/07 - 03/12/07e		100,594		100,515
Tulip Funding Corp.
5.29%, 03/15/07e		367,828		367,071
Westpac Banking Corp.
5.20%, 07/12/07e		172,454		169,141
Zela Finance Inc.
5.20%, 07/16/07e		114,969		112,694
				5,976,435
MEDIUM-TERM NOTESd – 0.02%
Bank of America N.A.
5.28%, 04/20/07		47,904		47,904
Cullinan Finance Corp.
5.71%, 06/28/07e		143,712		143,712
K2 USA LLC
5.39%, 06/04/07e		143,712		143,712
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07e		224,191		224,191
				559,519
MONEY MARKET FUNDS – 0.02%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%f,g		388,347		388,347
				388,347
REPURCHASE AGREEMENTSd – 0.15%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $ 383,289 (collateralized by non-U.S. Government debt securities, value $395,040, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	383,232		383,232

Security	Principal		Value
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $287,467 (collateralized by non-U.S. Government debt securities, value $316,416, 0.00% to 9.20%, 10/17/18 to 11/25/52).	$	287,424	$	287,424
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $ 19,165 (collateralized by non-U.S. Government debt securities, value $20,136, 5.43%, 3/15/08).		19,162		19,162
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $287,467 (collateralized by non-U.S. Government debt securities, value $309,707, 0.00% to 10.00%, 5/27/33 to 8/25/46).		287,424		287,424
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $383,289 (collateralized by non-U.S. Government debt securities, value $402,711, 4.91% to 6.31%, 10/25/33 to 8/25/46).		383,232		383,232
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $210,809 (collateralized by non-U.S. Government debt securities, value $227,140, 0.00% to 10.00%, 5/27/33 to 8/25/46).		210,777		210,777
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $114,986 (collateralized by non-U.S. Government debt securities, value $128,081, 0.00% to 10.00%, 5/27/33 to 2/28/37).		114,969		114,969

26 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2007

Security	Principal		Value
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $71,114 (collateralized by non-U.S. Government debt securities, value $74,717, 4.52% to 6.89%, 1/15/09 to 10/25/36).	$	71,103	$	71,103
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $804,908 (collateralized by non-U.S. Government debt securities, value $887,355, 0.00% to 10.00%, 4/1/07 to 12/31/49).		804,786		804,786
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $95,822 (collateralized by non-U.S. Government debt securities, value $100,684, 3.72% to 5.99%, 12/15/36 to 6/1/46).		95,808		95,808
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $47,911 (collateralized by non-U.S. Government debt securities, value $50,345, 6.25% to 9.56%, 5/15/11 to 2/1/30).		47,904		47,904
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $191,645 (collateralized by non-U.S. Government debt securities, value $201,356, 1.63% to 14.50%, 5/1/07 to 9/18/37).		191,616		191,616
Morgan Stanley 5.36%, due 3/1/07, maturity value $191,645 (collateralized by non-U.S. Government debt securities, value $201,400, 0.00% to 10.00%, 3/1/07 to 2/28/37).		191,616		191,616

Security	Principal		Value
Morgan Stanley 5.51%, due 2/4/08, maturity value $140,988 (collateralized by non-U.S. Government debt securities, value $159,068, 0.00% to 10.00%, 3/1/07 to 2/28/37).h	$	134,131	$	134,131
Wachovia Capital 5.38%, due 3/1/07, maturity value $421,618 (collateralized by non-U.S. Government debt securities, value $442,982, 0.00% to 8.32%, 2/15/08 to 3/15/49).		421,555		421,555
				3,644,739
TIME DEPOSITSd – 0.05%
Bank of Nova Scotia 5.30%, 03/02/07		80,356		80,356
Chase Bank USA N.A. 5.38%, 03/01/07		287,424		287,424
Citibank N.A. 5.47%, 03/01/07		287,424		287,424
Deutsche Bank AG 5.38%, 03/01/07		450,050		450,050
				1,105,254
VARIABLE & FLOATING RATE NOTESd – 0.58%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08e		490,536		490,585
American Express Centurion Bank
5.41%, 07/19/07		210,777		210,872
American Express Credit Corp. 5.42%, 03/05/08		57,485		57,513
AmeriCredit Automobile Receivables Trust
5.35%, 03/06/07		8,733		8,733
Arkle Master Issuer PLC Series 2006-1A Class 1A
5.30%, 11/19/07e		143,712		143,712
ASIF Global Financing 5.40%, 05/03/07e		19,162		19,163
Australia & New Zealand Banking Group Ltd.
5.32%, 02/22/08e		124,550		124,550

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2007

Security	Principal		Value
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08e	$	277,843	$	277,851
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07e		488,620		488,630
BMW US Capital LLC 5.32%, 01/15/08e		191,616		191,616
BNP Paribas 5.33%, 11/19/07e		354,489		354,489
Brigantine High Grade Funding Ltd.
5.40%, 09/05/07e		183,951		183,934
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07e		139,880		139,880
CC USA Inc. 5.36%, 07/30/07e		95,808		95,813
Commodore CDO Ltd. 5.44%, 12/12/07e		47,904		47,904
Credit Agricole SA 5.33%, 11/23/07		191,616		191,616
Credit Suisse First Boston NY 5.36%, 04/24/07		95,809		95,809
Cullinan Finance Corp. 5.36%, 04/25/07e		47,904		47,904
DaimlerChrysler Auto Trust Series 2006-C Class A1
5.33%, 10/08/07e		14,699		14,699
DEPFA Bank PLC 5.40%, 12/14/07e		191,616		191,616
Dorada Finance Inc. 5.33% - 5.41%, 06/27/07 - 07/17/07e		220,358		220,361
Eli Lilly Services Inc. 5.31%, 03/01/07e		127,904		127,904
Fifth Third Bancorp 5.32%, 02/22/08e		383,232		383,232
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07e		124,550		124,544
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08e		201,197		201,216

Security	Principal		Value
Granite Master Issuer PLC 5.29%, 08/20/07e	$	670,655	$	670,655
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07e		249,100		249,102
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		287,424		287,442
HBOS Treasury Services PLC 5.46%, 01/24/08e		191,616		191,616
Holmes Financing PLC 5.29%, 07/16/07e		335,328		335,328
JP Morgan Securities Inc. 5.40%, 11/16/07		383,232		383,232
JPMorgan Chase & Co. 5.29% - 5.45%, 07/27/07 - 02/29/08h		526,943		526,944
K2 USA LLC 5.20% - 5.33%, 04/02/07 - 06/28/07e		143,712		143,710
Kestrel Funding LLC 5.30%, 07/11/07e		76,646		76,643
Kommunalkredit Austria AG 5.32%, 02/08/08e		114,969		114,969
Leafs LLC 5.32%, 01/22/08e		185,651		185,651
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07e		210,777		210,773
Lothian Mortgages Master Issuer PLC
5.29%, 04/24/07e		67,554		67,554
Marshall & Ilsley Bank 5.32%, 02/15/08		105,389		105,389
Master Funding LLC
5.35%, 04/25/07 - 05/25/07e		346,773		346,773
Merrill Lynch & Co. Inc. 5.46%, 05/30/07h		210,777		210,777
Metropolitan Life Global Funding I
5.33%, 03/06/08e		287,424		287,424

28 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2007

Security	Principal		Value
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07e,h	$	19,162	$	19,162
Mound Financing PLC
5.29%, 05/08/07e		180,119		180,119
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08e		306,585		306,581
National City Bank of Indiana
5.34%, 05/21/07		95,808		95,810
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08e		632,332		632,403
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08e		192,095		192,070
Northern Rock PLC
5.38%, 02/01/08e		229,939		229,943
Northlake CDO I
5.42%, 09/06/07e		57,485		57,485
Pricoa Global Funding I
5.31%, 02/27/08e		258,681		258,681
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07e		277,843		277,841
Skandinaviska Enskilda Banken
5.32%, 02/15/08e		191,616		191,616
Strips III LLC
5.37%, 07/24/07e		38,990		38,990
SunTrust Bank
5.29%, 05/01/07		191,616		191,617
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07e		467,542		467,526
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07e		316,166		316,166
Wachovia Asset Securitization Inc.
5.31%, 03/25/07e		216,300		216,299
Wachovia Bank N.A.
5.36%, 05/22/07		383,232		383,232

Security	Principal		Value
Wal-Mart Stores Inc.
5.50%, 07/16/07e	$	143,712	$	143,748
Wells Fargo & Co.
5.33%, 11/15/07e		95,808		95,812
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07e		143,712		143,712
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07e		574,847		574,796
Wind Master Trust
5.31%, 07/25/07e		76,646		76,646
				13,918,383
TOTAL SHORT-TERM INVESTMENTS (Cost: $26,838,179)				26,838,179
TOTAL INVESTMENTS IN SECURITIES – 100.98% (Cost: $2,008,487,300)				2,425,145,292
Other Assets, Less Liabilities – (0.98)%				(23,548,328	)
NET ASSETS – 100.00%			$	2,401,596,964

ADR - American Depositary Receipts

^a Non-income earning security.

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

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

^d All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^e This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^f Affiliated issuer. See Note 2.

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

^h The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.76%
ADVERTISING – 0.68%
PagesJaunes SA	18,061	$	374,566
Publicis Groupe SA	19,586		876,548
			1,251,114
AEROSPACE & DEFENSE – 1.73%
European Aeronautic Defence and Space Co.a	46,478		1,590,747
Safran SA	23,490		538,045
Thales SA	12,528		644,413
Zodiac SA	5,967		405,140
			3,178,345
AIRLINES – 0.40%
Air France-KLM	17,199		745,184
			745,184
APPAREL – 0.64%
Hermes International	9,088		1,185,473
			1,185,473
AUTO MANUFACTURERS – 2.49%
PSA Peugeot Citroen SA	21,708		1,462,148
Renault SA	26,352		3,129,042
			4,591,190
AUTO PARTS & EQUIPMENT – 1.41%
Compagnie Generale des Etablissements Michelin Class B	20,412		2,119,849
Valeo SA	9,747		479,090
			2,598,939
BANKS – 13.55%
BNP Paribas	118,962		12,404,857
Credit Agricole SA	93,763		3,735,504
Societe Generale Class A	52,354		8,806,454
			24,946,815
BEVERAGES – 1.44%
Pernod Ricard SA	12,851		2,648,013
			2,648,013
BUILDING MATERIALS – 4.20%
Compagnie de Saint-Gobain	44,766		4,163,009
Imerys SA	4,590		408,778
Lafarge SA	21,222		3,169,153
			7,740,940

Security	Shares	Value
CHEMICALS – 2.13%
L’Air Liquide SA	17,172	$	3,930,345
			3,930,345
COMMERCIAL SERVICES – 0.15%
Societe des Autoroutes
Paris-Rhin-Rhone	3,213		269,507
			269,507
COMPUTERS – 1.02%
Atos Origin SAb	9,504		513,722
Cap Gemini SA	19,466		1,358,964
			1,872,686
COSMETICS & PERSONAL CARE – 2.33%
L’Oreal SA	40,959		4,281,312
			4,281,312
DIVERSIFIED FINANCIAL SERVICES – 0.76%
Euronext NV	12,825		1,393,412
			1,393,412
ENGINEERING & CONSTRUCTION – 3.23%
Bouygues SA	28,998		2,018,669
Vinci SA	28,404		3,927,246
			5,945,915
FOOD – 6.26%
Carrefour SA	84,996		5,667,665
Casino Guichard-Perrachon SA	6,156		529,378
Groupe Danone	33,642		5,320,729
			11,517,772
FOOD SERVICE – 0.51%
Sodexho Alliance SA	13,547		933,219
			933,219
GAS – 0.67%
Gaz de France	27,999		1,231,980
			1,231,980
HAND & MACHINE TOOLS – 2.12%
Schneider Electric SA	32,124		3,895,459
			3,895,459
HEALTH CARE - PRODUCTS – 0.87%
Essilor International SA	13,999		1,594,748
			1,594,748
HOLDING COMPANIES - DIVERSIFIED – 2.09%
LVMH Moet Hennessy Louis Vuitton SA	34,857		3,855,294
			3,855,294

30 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2007

Security	Shares	Value
HOME FURNISHINGS – 0.38%
Thomson	36,882	$	692,788
			692,788
HOUSEHOLD PRODUCTS & WARES – 0.15%
Societe BIC SA	3,996		272,688
			272,688
INSURANCE – 6.09%
AXA	237,519		10,090,223
CNP Assurances	6,286		703,638
SCOR	16,659		422,510
			11,216,371
IRON & STEEL – 2.74%
Arcelor Mittal	99,576		5,039,103
			5,039,103
LODGING – 1.37%
Accor SA	28,680		2,528,056
			2,528,056
MACHINERY – 1.03%
ALSTOMb	15,643		1,887,622
			1,887,622
MEDIA – 4.72%
Lagardere SCA	17,226		1,321,820
M6-Metropole Television	9,558		338,746
Societe Television Francaise 1	16,659		560,485
Vivendi SA	163,998		6,466,500
			8,687,551
METAL FABRICATE & HARDWARE – 0.76%
Vallourec SA	5,630		1,393,164
			1,393,164
OFFICE & BUSINESS EQUIPMENT – 0.32%
Neopost SA	4,536		583,964
			583,964
OIL & GAS – 11.35%
Total SA	310,068		20,896,993
			20,896,993
OIL & GAS SERVICES – 0.55%
Technip SA	15,041		1,009,514
			1,009,514

Security	Shares or Principal		Value
PHARMACEUTICALS – 6.67%
Sanofi-Aventis		144,666	$	12,279,864
				12,279,864
REAL ESTATE – 1.49%
Gecina SA		1,809		332,154
Klepierre		2,646		520,790
Unibail Holding		6,533		1,885,949
				2,738,893
RETAIL – 0.77%
PPR SA		9,453		1,419,765
				1,419,765
SEMICONDUCTORS – 1.02%
STMicroelectronics NV		97,065		1,880,958
				1,880,958
SOFTWARE – 0.50%
Business Objects SAb		13,824		503,816
Dassault Systemes SA		8,291		423,842
				927,658
TELECOMMUNICATIONS – 5.81%
Alcatel-Lucent		328,401		4,186,183
France Telecom SA		240,300		6,516,721
				10,702,904
WATER – 5.36%
Suez SA		144,720		7,000,568
Veolia Environnement		40,635		2,862,047
				9,862,615
TOTAL COMMON STOCKS
(Cost: $164,684,739)				183,628,133
SHORT-TERM INVESTMENTS – 0.94%
CERTIFICATES OF DEPOSITc – 0.04%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	17,880		17,880
Deutsche Bank AG
5.35%, 08/08/07		29,799		29,799
Washington Mutual Bank
5.33%, 03/19/07		29,799		29,799
				77,478

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2007

Security	Principal		Value
COMMERCIAL PAPERc – 0.20%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d	$	11,337	$	11,252
BNP Paribas Finance Inc.
5.12%, 06/06/07		4,172		4,114
Bryant Park Funding LLC
5.27%, 03/06/07d		2,937		2,935
Cantabric Finance LLC
5.25%, 03/06/07d		9,536		9,529
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		8,940		8,876
Concord Minutemen Capital Co. LLC
5.29%, 03/19/07d		6,075		6,059
Crown Point Capital Co. LLC
5.20%, 07/18/07d		13,769		13,492
Edison Asset Securitization LLC
5.21%, 04/11/07d		4,940		4,910
Five Finance Inc.
5.22%, 04/20/07d		5,483		5,443
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07d		20,859		20,501
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d		19,548		19,524
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07d		23,243		22,954
Harrier Finance Funding LLC
5.12%, 06/06/07d		11,920		11,755
Irish Permanent Treasury PLC
5.18%, 07/10/07		5,960		5,847
KKR Pacific Funding Trust
5.29%, 03/13/07d		14,899		14,873
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07d		15,060		14,804
Liberty Street Funding Corp.
5.27%, 03/06/07d		1,430		1,429
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		26,890		26,635
Nationwide Building Society
5.21%, 04/13/07d		11,324		11,253

Security	Shares or Principal		Value
Nestle Capital Corp.
5.19%, 08/09/07	$	7,152	$	6,986
Sedna Finance Inc.
5.22%, 04/17/07d		6,794		6,748
Simba Funding Corp.
5.20%, 07/23/07d		11,920		11,672
Societe Generale
5.18%, 05/16/07		29,799		29,473
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07d		45,408		45,364
Thornburg Mortgage Capital Resources LLC
5.28%, 03/12/07d		8,725		8,711
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07d		6,258		6,253
Tulip Funding Corp.
5.29%, 03/15/07d		22,881		22,834
Westpac Banking Corp.
5.20%, 07/12/07d		10,728		10,521
Zela Finance Inc.
5.20%, 07/16/07d		7,152		7,010
				371,757
MEDIUM-TERM NOTESc – 0.02%
Bank of America N.A.
5.28%, 04/20/07		2,980		2,980
Cullinan Finance Corp.
5.71%, 06/28/07d		8,940		8,940
K2 USA LLC
5.39%, 06/04/07d		8,940		8,940
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07d		13,946		13,946
				34,806
MONEY MARKET FUNDS – 0.05%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%e,f		88,026		88,026
				88,026

32 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2007

Security	Principal		Value
REPURCHASE AGREEMENTSc – 0.12%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $23,843 (collateralized by non-U.S. Government debt securities, value $24,574, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	23,839	$	23,839
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $17,882 (collateralized by non-U.S. Government debt securities, value $19,683, 0.00% to 9.20%, 10/17/18 to 11/25/52).		17,879		17,879
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $1,192 (collateralized by non-U.S. Government debt securities, value $1,253, 5.43%, 3/15/08).		1,192		1,192
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $17,882 (collateralized by non-U.S. Government debt securities, value $19,265, 0.00% to 10.00%, 5/27/33 to 8/25/46).		17,879		17,879
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $23,843 (collateralized by non-U.S. Government debt securities, value $25,051, 4.91% to 6.31%, 10/25/33 to 8/25/46).		23,839		23,839
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $13,113 (collateralized by non-U.S. Government debt securities, value $14,129, 0.00% to 10.00%, 5/27/33 to 8/25/46).		13,111		13,111

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $7,153 (collateralized by non-U.S. Government debt securities, value $7,967, 0.00% to 10.00%, 5/27/33 to 2/28/37).	$	7,152	$	7,152
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $4,424 (collateralized by non-U.S. Government debt securities, value $4,648, 4.52% to 6.89%, 1/15/09 to 10/25/36).		4,423		4,423
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $50,070 (collateralized by non-U.S. Government debt securities, value $55,198, 0.00% to 10.00%, 4/1/07 to 12/31/49).		50,062		50,062
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $5,961 (collateralized by non-U.S. Government debt securities, value $6,263, 3.72% to 5.99%, 12/15/36 to 6/1/46).		5,960		5,960
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $2,980 (collateralized by non-U.S. Government debt securities, value $3,132, 6.25% to 9.56%, 5/15/11 to 2/1/30).		2,980		2,980
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $11,922 (collateralized by non-U.S. Government debt securities, value $12,525, 1.63% to 14.50%, 5/1/07 to 9/18/37).		11,920		11,920
Morgan Stanley 5.36%, due 3/1/07, maturity value $11,922 (collateralized by non-U.S. Government debt securities, value $12,528, 0.00% to 10.00%, 3/1/07 to 2/28/37).		11,920		11,920

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2007

Security	Principal		Value
Morgan Stanley 5.51%, due 2/4/08, maturity value $8,771 (collateralized by non-U.S. Government debt securities, value $9,895, 0.00% to 10.00%, 3/1/07 to 2/28/37).g	$	8,344	$	8,344
Wachovia Capital 5.38%, due 3/1/07, maturity value $26,227 (collateralized by non-U.S. Government debt securities, value $27,556, 0.00% to 8.32%, 2/15/08 to 3/15/49).		26,223		26,223
				226,723
TIME DEPOSITSc – 0.04%
Bank of Nova Scotia
5.30%, 03/02/07		4,999		4,999
Chase Bank USA N.A.
5.38%, 03/01/07		17,879		17,879
Citibank N.A.
5.47%, 03/01/07		17,879		17,879
Deutsche Bank AG
5.38%, 03/01/07		27,996		27,996
				68,753
VARIABLE & FLOATING RATE NOTESc – 0.47%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08d		30,514		30,517
American Express Centurion Bank
5.41%, 07/19/07		13,111		13,117
American Express Credit Corp.
5.42%, 03/05/08		3,576		3,578
AmeriCredit Automobile Receivables Trust
5.35%, 03/06/07		543		543
Arkle Master Issuer PLC Series 2006-1A Class 1A
5.30%, 11/19/07d		8,940		8,940
ASIF Global Financing
5.40%, 05/03/07d		1,192		1,192
Australia & New Zealand Banking Group Ltd.
5.32%, 02/22/08d		7,748		7,748

Security	Principal		Value
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08d	$	17,283	$	17,284
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07d		30,395		30,395
BMW US Capital LLC
5.32%, 01/15/08d		11,920		11,920
BNP Paribas
5.33%, 11/19/07d		22,051		22,051
Brigantine High Grade Funding Ltd.
5.40%, 09/05/07d		11,443		11,442
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07d		8,701		8,702
CC USA Inc.
5.36%, 07/30/07d		5,960		5,960
Commodore CDO Ltd.
5.44%, 12/12/07d		2,980		2,980
Credit Agricole SA
5.33%, 11/23/07		11,920		11,920
Credit Suisse First Boston NY
5.36%, 04/24/07		5,960		5,960
Cullinan Finance Corp.
5.36%, 04/25/07d		2,980		2,980
DaimlerChrysler Auto Trust Series 2006-C Class A1
5.33%, 10/08/07d		914		914
DEPFA Bank PLC
5.40%, 12/14/07d		11,920		11,920
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07d		13,707		13,708
Eli Lilly Services Inc.
5.31%, 03/01/07d		7,956		7,956
Fifth Third Bancorp
5.32%, 02/22/08d		23,839		23,839
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07d		7,748		7,747
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08d		12,515		12,517

34 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2007

Security	Principal		Value
Granite Master Issuer PLC
5.29%, 08/20/07d	$	41,718	$	41,718
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07d		15,495		15,495
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		17,879		17,881
HBOS Treasury Services PLC
5.46%, 01/24/08d		11,920		11,920
Holmes Financing PLC
5.29%, 07/16/07d		20,859		20,859
JP Morgan Securities Inc.
5.40%, 11/16/07		23,839		23,839
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08g		32,779		32,779
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07d		8,940		8,940
Kestrel Funding LLC
5.30%, 07/11/07d		4,768		4,768
Kommunalkredit Austria AG
5.32%, 02/08/08d		7,152		7,152
Leafs LLC
5.32%, 01/22/08d		11,548		11,548
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07d		13,111		13,112
Lothian Mortgages Master Issuer PLC
5.29%, 04/24/07d		4,202		4,202
Marshall & Ilsley Bank
5.32%, 02/15/08		6,556		6,556
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d		21,571		21,572
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		13,111		13,111
Metropolitan Life Global Funding I
5.33%, 03/06/08d		17,879		17,879
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07d,g		1,192		1,192

Security	Principal		Value
Mound Financing PLC
5.29%, 05/08/07d	$	11,204	$	11,204
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08d		19,071		19,072
National City Bank of Indiana
5.34%, 05/21/07		5,960		5,960
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08d		39,334		39,339
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08d		11,949		11,947
Northern Rock PLC
5.38%, 02/01/08d		14,303		14,304
Northlake CDO I
5.42%, 09/06/07d		3,576		3,576
Pricoa Global Funding I
5.31%, 02/27/08d		16,091		16,091
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07d		17,283		17,284
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		11,920		11,920
Strips III LLC
5.37%, 07/24/07d		2,425		2,425
SunTrust Bank
5.29%, 05/01/07		11,920		11,920
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07d		29,084		29,082
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07d		19,667		19,668
Wachovia Asset Securitization Inc.
5.31%, 03/25/07d		13,455		13,455
Wachovia Bank N.A.
5.36%, 05/22/07		23,839		23,839
Wal-Mart Stores Inc.
5.50%, 07/16/07d		8,940		8,942
Wells Fargo & Co.
5.33%, 11/15/07d		5,960		5,960

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2007

Security	Principal		Value
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07d	$	8,940	$	8,940
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07d		35,759		35,755
Wind Master Trust
5.31%, 07/25/07d		4,768		4,768
				865,804
TOTAL SHORT-TERM INVESTMENTS (Cost: $1,733,347)				1,733,347
TOTAL INVESTMENTS IN SECURITIES – 100.70% (Cost: $166,418,086)				185,361,480
Other Assets, Less Liabilities – (0.70)%				(1,291,567	)
NET ASSETS – 100.00%			$	184,069,913

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

^b Non-income earning security.

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

36 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 96.30%
AIRLINES – 0.63%
Deutsche Lufthansa AG	253,650	$	6,855,307
			6,855,307
APPAREL – 1.49%
Adidas AG	234,460		11,496,433
Puma AG	13,469		4,777,119
			16,273,552
AUTO MANUFACTURERS – 8.57%
DaimlerChrysler AG Registered	1,025,181		69,620,082
Volkswagen AG	189,621		23,880,750
			93,500,832
AUTO PARTS & EQUIPMENT – 1.70%
Continental AG	148,738		18,529,601
			18,529,601
BANKS – 11.72%
Commerzbank AG	702,505		28,952,788
DEPFA Bank PLC	399,375		6,694,665
Deutsche Bank AG	581,898		76,289,323
Deutsche Postbank AG	73,260		6,149,911
Hypo Real Estate Holding AG	153,702		9,721,204
			127,807,891
BIOTECHNOLOGY – 0.24%
QIAGEN NVa,b	161,771		2,632,678
			2,632,678
CHEMICALS – 9.20%
BASF AG	527,696		53,569,063
Bayer AG	815,381		46,820,560
			100,389,623
COMPUTERS – 0.28%
Wincor Nixdorf AG	18,612		3,033,607
			3,033,607
COSMETICS & PERSONAL CARE – 0.45%
Beiersdorf AG	76,305		4,938,959
			4,938,959
DIVERSIFIED FINANCIAL SERVICES – 2.26%
Deutsche Boerse AG	114,943		22,981,588
MLP AGb	69,608		1,671,627
			24,653,215

Security	Shares	Value
ELECTRIC – 13.02%
E.ON AG	697,015	$	91,280,376
RWE AG	498,361		50,755,698
			142,036,074
ENERGY– ALTERNATE SOURCES – 0.26%
Solarworld AGb	39,787		2,868,541
			2,868,541
ENGINEERING & CONSTRUCTION – 1.85%
Bilfinger Berger AG	41,110		3,406,506
Hochtief AG	46,924		4,079,804
Linde AG	124,552		12,670,222
			20,156,532
FOOD – 1.33%
METRO AG	184,404		12,734,805
Suedzucker AG	84,697		1,786,732
			14,521,537
HEALTH CARE – PRODUCTS – 0.92%
Fresenius Medical Care AG & Co. KGaA	70,986		10,033,278
			10,033,278
INSURANCE – 12.82%
Allianz SE	482,582		103,766,828
Muenchener Rueckversicherungs- Gesellschaft AG	226,776		36,075,982
			139,842,810
IRON & STEEL – 2.32%
Salzgitter AG	45,425		5,602,588
ThyssenKrupp AG	403,086		19,727,512
			25,330,100
LEISURE TIME – 0.52%
TUI AGb	242,514		5,647,751
			5,647,751
MACHINERY– DIVERSIFIED – 1.95%
Heidelberger Druckmaschinen AG	65,921		2,821,338
MAN AG	141,006		15,130,052
Rheinmetall AG	41,743		3,355,294
			21,306,684
MANUFACTURING – 9.15%
Siemens AG	947,428		99,807,525
			99,807,525

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2007

Security	Shares	Value
MEDIA – 0.15%
Premiere AGa,b	79,300	$	1,670,784
			1,670,784
PHARMACEUTICALS – 1.75%
ALTANA AG	80,811		4,883,689
Celesio AG	102,889		5,829,232
Merck KGaA	66,996		8,323,271
			19,036,192
REAL ESTATE – 0.40%
IVG Immobilien AG	97,496		4,342,709
			4,342,709
RETAIL – 0.42%
Douglas Holding AG	35,352		2,045,382
KarstadtQuelle AGa,b	71,591		2,483,359
			4,528,741
SEMICONDUCTORS – 1.18%
Infineon Technologies AGa	842,360		12,907,499
			12,907,499
SOFTWARE – 4.06%
SAP AG	964,211		44,336,610
			44,336,610
TELECOMMUNICATIONS – 5.09%
Deutsche Telekom AG	3,097,373		55,480,399
			55,480,399
TRANSPORTATION – 2.57%
Deutsche Post AG	880,512		28,054,269
			28,054,269
TOTAL COMMON STOCKS (Cost: $ 863,746,270)			1,050,523,300
PREFERRED STOCKS – 3.49%
AUTO MANUFACTURERS – 2.00%
Porsche AG	8,683		11,370,824
Volkswagen AG	118,085		10,396,359
			21,767,183
ELECTRIC – 0.31%
RWE AG	37,141		3,397,012
			3,397,012

Security	Shares or Principal		Value
HOUSEHOLD PRODUCTS & WARES – 0.89%
Henkel KGaA		68,522	$	9,665,099
				9,665,099
MEDIA – 0.29%
ProSiebenSat.1 Media AG		93,920		3,179,751
				3,179,751
TOTAL PREFERRED STOCKS (Cost: $ 26,748,273)				38,009,045
SHORT-TERM INVESTMENTS – 1.51%
CERTIFICATES OF DEPOSITc – 0.07%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	175,309		175,309
Deutsche Bank AG
5.35%, 08/08/07		292,182		292,182
Washington Mutual Bank
5.33%, 03/19/07		292,182		292,182
				759,673
COMMERCIAL PAPERc – 0.34%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d		111,159		110,404
BNP Paribas Finance Inc.
5.12%, 06/06/07		40,905		40,342
Bryant Park Funding LLC
5.27%, 03/06/07d		28,802		28,781
Cantabric Finance LLC
5.25%, 03/06/07d		93,498		93,430
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		87,655		87,026
Concord Minutemen Capital Co. LLC
5.29%, 03/19/07d		59,567		59,409
Crown Point Capital Co. LLC
5.20%, 07/18/07d		135,006		132,295
Edison Asset Securitization LLC
5.21%, 04/11/07d		48,436		48,148
Five Finance Inc.
5.22%, 04/20/07d		53,761		53,372
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07d		204,527		201,014

38 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2007

Security	Principal		Value
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d	$	191,671	$	191,440
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07d		227,902		225,072
Harrier Finance Funding LLC
5.12%, 06/06/07d		116,873		115,262
Irish Permanent Treasury PLC
5.18%, 07/10/07		58,436		57,335
KKR Pacific Funding Trust
5.29%, 03/13/07d		146,091		145,833
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07d		147,666		145,153
Liberty Street Funding Corp.
5.27%, 03/06/07d		14,025		14,014
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		263,660		261,156
Nationwide Building Society
5.21%, 04/13/07d		111,029		110,338
Nestle Capital Corp.
5.19%, 08/09/07		70,124		68,496
Sedna Finance Inc.
5.22%, 04/17/07d		66,617		66,163
Simba Funding Corp.
5.20%, 07/23/07d		116,873		114,442
Societe Generale
5.18%, 05/16/07		292,182		288,987
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07d		445,234		444,803
Thornburg Mortgage Capital Resources LLC
5.28%, 03/12/07d		85,551		85,413
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07d		61,356		61,308
Tulip Funding Corp.
5.29%, 03/15/07d		224,350		223,889
Westpac Banking Corp.
5.20%, 07/12/07d		105,185		103,165
Zela Finance Inc.
5.20%, 07/16/07d		70,124		68,736
				3,645,226

Security	Shares or Principal		Value
MEDIUM-TERM NOTESc – 0.03%
Bank of America N.A.
5.28%, 04/20/07	$	29,218	$	29,218
Cullinan Finance Corp.
5.71%, 06/28/07d		87,655		87,655
K2 USA LLC
5.39%, 06/04/07d		87,655		87,655
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07d		136,741		136,741
				341,269
MONEY MARKET FUNDS – 0.03%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%e,f		305,433		305,433
				305,433
REPURCHASE AGREEMENTSc – 0.20%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $233,780 (collateralized by non-U.S. Government debt securities, value $240,948, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	233,745		233,745
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $175,335 (collateralized by non-U.S. Government debt securities, value $192,992, 0.00% to 9.20%, 10/17/18 to 11/25/52).		175,309		175,309
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $11,689 (collateralized by non-U.S. Government debt securities, value $12,281, 5.43%, 3/15/08).		11,687		11,687

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2007

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $175,335 (collateralized by non-U.S. Government debt securities, value $188,901, 0.00% to 10.00%, 5/27/33 to 8/25/46).	$	175,309	$	175,309
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $233,780 (collateralized by non-U.S. Government debt securities, value $245,627, 4.91% to 6.31%, 10/25/33 to 8/25/46).		233,745		233,745
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $128,579 (collateralized by non-U.S. Government debt securities, value $138,540, 0.00% to 10.00%, 5/27/33 to 8/25/46).		128,560		128,560
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $70,135 (collateralized by non-U.S. Government debt securities, value $78,121, 0.00% to 10.00%, 5/27/33 to 2/28/37).		70,124		70,124
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $43,374 (collateralized by non-U.S. Government debt securities, value $45,572, 4.52% to 6.89%, 1/15/09 to 10/25/36).		43,368		43,368
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $490,940 (collateralized by non-U.S. Government debt securities, value $541,227, 0.00% to 10.00%, 4/1/07 to 12/31/49).		490,866		490,866

Security	Principal		Value
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $58,445 (collateralized by non-U.S. Government debt securities, value $61,411, 3.72% to 5.99%, 12/15/36 to 6/1/46).	$	58,436	$	58,436
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $29,222 (collateralized by non-U.S. Government debt securities, value $30,707, 6.25% to 9.56%, 5/15/11 to 2/1/30).		29,218		29,218
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $116,890 (collateralized by non-U.S. Government debt securities, value $122,814, 1.63% to 14.50%, 5/1/07 to 9/18/37).		116,873		116,873
Morgan Stanley 5.36%, due 3/1/07, maturity value $116,890 (collateralized by non-U.S. Government debt securities, value $122,840, 0.00% to 10.00%, 3/1/07 to 2/28/37).		116,873		116,873
Morgan Stanley 5.51%, due 2/4/08, maturity value $85,993 (collateralized by non-U.S. Government debt securities, value $97,021, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		81,811		81,811
Wachovia Capital 5.38%, due 3/1/07, maturity value $257,158 (collateralized by non-U.S. Government debt securities, value $270,189, 0.00% to 8.32%, 2/15/08 to 3/15/49).		257,120		257,120
				2,223,044

40 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2007

Security	Principal		Value
TIME DEPOSITSc – 0.06%
Bank of Nova Scotia
5.30%, 03/02/07	$	49,012	$	49,012
Chase Bank USA N.A.
5.38%, 03/01/07		175,309		175,309
Citibank N.A.
5.47%, 03/01/07		175,309		175,309
Deutsche Bank AG
5.38%, 03/01/07		274,500		274,500
				674,130
VARIABLE & FLOATING RATE NOTESc – 0.78%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08d		299,194		299,223
American Express Centurion Bank
5.41%, 07/19/07		128,560		128,618
American Express Credit Corp.
5.42%, 03/05/08		35,062		35,079
AmeriCredit Automobile Receivables Trust
5.35%, 03/06/07		5,326		5,326
Arkle Master Issuer PLC Series 2006-1A Class 1A
5.30%, 11/19/07d		87,655		87,655
ASIF Global Financing
5.40%, 05/03/07d		11,687		11,688
Australia & New Zealand Banking Group Ltd.
5.32%, 02/22/08d		75,967		75,967
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08d		169,465		169,470
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07d		298,025		298,031
BMW US Capital LLC
5.32%, 01/15/08d		116,873		116,873
BNP Paribas
5.33%, 11/19/07d		216,215		216,215
Brigantine High Grade Funding Ltd.
5.40%, 09/05/07d		112,198		112,187

Security	Principal		Value
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07d	$	85,317	$	85,317
CC USA Inc.
5.36%, 07/30/07d		58,436		58,440
Commodore CDO Ltd.
5.44%, 12/12/07d		29,218		29,218
Credit Agricole SA
5.33%, 11/23/07		116,873		116,873
Credit Suisse First Boston NY
5.36%, 04/24/07		58,436		58,437
Cullinan Finance Corp.
5.36%, 04/25/07d		29,218		29,218
DaimlerChrysler Auto Trust Series 2006-C Class A1
5.33%, 10/08/07d		8,965		8,965
DEPFA Bank PLC
5.40%, 12/14/07d		116,873		116,873
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07d		134,404		134,406
Eli Lilly Services Inc.
5.31%, 03/01/07d		78,013		78,013
Fifth Third Bancorp
5.32%, 02/22/08d		233,745		233,745
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07d		75,967		75,963
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08d		122,716		122,729
Granite Master Issuer PLC
5.29%, 08/20/07d		409,055		409,055
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07d		151,935		151,935
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		175,309		175,321
HBOS Treasury Services PLC
5.46%, 01/24/08d		116,873		116,873

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2007

Security	Principal		Value
Holmes Financing PLC
5.29%, 07/16/07d	$	204,527	$	204,527
JP Morgan Securities Inc.
5.40%, 11/16/07		233,745		233,745
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08g		321,400		321,400
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07d		87,655		87,653
Kestrel Funding LLC
5.30%, 07/11/07d		46,749		46,747
Kommunalkredit Austria AG
5.32%, 02/08/08d		70,124		70,124
Leafs LLC
5.32%, 01/22/08d		113,234		113,234
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07d		128,560		128,558
Lothian Mortgages Master Issuer PLC
5.29%, 04/24/07d		41,204		41,204
Marshall & Ilsley Bank
5.32%, 02/15/08		64,280		64,280
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d		211,508		211,508
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		128,560		128,560
Metropolitan Life Global Funding I
5.33%, 03/06/08d		175,309		175,309
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07d,g		11,687		11,687
Mound Financing PLC
5.29%, 05/08/07d		109,860		109,860
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08d		186,996		186,995
National City Bank of Indiana
5.34%, 05/21/07		58,436		58,437
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08d		385,680		385,723

Security	Principal		Value
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08d	$	117,165	$	117,150
Northern Rock PLC
5.38%, 02/01/08d		140,247		140,250
Northlake CDO I
5.42%, 09/06/07d		35,062		35,062
Pricoa Global Funding I
5.31%, 02/27/08d		157,778		157,778
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07d		169,465		169,465
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		116,873		116,873
Strips III LLC
5.37%, 07/24/07d		23,782		23,782
SunTrust Bank
5.29%, 05/01/07		116,873		116,874
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07d		285,169		285,160
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07d		192,840		192,840
Wachovia Asset Securitization Inc.
5.31%, 03/25/07d		131,928		131,928
Wachovia Bank N.A.
5.36%, 05/22/07		233,745		233,745
Wal-Mart Stores Inc.
5.50%, 07/16/07d		87,655		87,677
Wells Fargo & Co.
5.33%, 11/15/07d		58,436		58,439
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07d		87,655		87,655
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07d		350,618		350,587
Wind Master Trust
5.31%, 07/25/07d		46,749		46,749
				8,489,278

42 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2007

	Value
TOTAL SHORT-TERM INVESTMENTS (Cost: $16,438,053)	$	16,438,053
TOTAL INVESTMENTS IN SECURITIES – 101.30% (Cost: $ 906,932,596)		1,104,970,398
Other Assets, Less Liabilities – (1.30)%		(14,127,350	)
NET ASSETS – 100.00%	$	1,090,843,048

^a Non-income earning security.

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

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Unaudited)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 94.32%
AEROSPACE & DEFENSE – 2.17%
Finmeccanica SpA	152,502	$	4,496,308
			4,496,308
APPAREL – 0.34%
Benetton Group SpA	42,781		702,439
			702,439
AUTO MANUFACTURERS – 2.81%
Fiat SpAa	246,312		5,830,556
			5,830,556
AUTO PARTS & EQUIPMENT – 0.74%
Pirelli & C. SpA	1,378,414		1,538,589
			1,538,589
BANKS – 36.85%
Banca Monte dei Paschi di Siena SpAb	641,344		4,134,255
Banca Popolare di Milano Scrl	230,076		3,564,969
Banche Popolari Unite Scrl	215,088		6,108,591
Banco Popolare di Verona e Novara Scrl	216,571		6,551,220
Capitalia SpA	766,140		6,588,332
Intesa Sanpaolo SpA	2,803,344		20,385,440
UniCredito Italiano SpA	3,156,061		29,182,991
			76,515,798
BUILDING MATERIALS – 0.82%
Italcementi SpA	56,475		1,694,927
			1,694,927
COMMERCIAL SERVICES – 2.56%
Autostrade SpA	176,634		5,319,803
			5,319,803
DIVERSIFIED FINANCIAL SERVICES – 3.16%
Mediobanca SpA	293,286		6,566,704
			6,566,704
ELECTRIC – 9.07%
Enel SpA	965,286		10,066,871
Terna SpA	2,525,922		8,775,302
			18,842,173
ENTERTAINMENT – 0.51%
Lottomatica SpA	26,964		1,064,981
			1,064,981

Security	Shares	Value
HEALTH CARE – PRODUCTS – 1.53%
Luxottica Group SpA	101,682	$	3,183,309
			3,183,309
INSURANCE – 6.96%
Assicurazioni Generali SpA	235,853		10,119,145
Fondiaria-Sai SpA	53,988		2,463,236
Mediolanum SpAb	224,784		1,867,680
			14,450,061
MEDIA – 3.51%
Arnoldo Mondadori Editore SpA	76,012		785,191
Gruppo Editoriale L’Espresso SpAb	75,064		393,648
Mediaset SpA	417,868		4,846,408
Seat Pagine Gialle SpA	2,039,184		1,252,552
			7,277,799
OIL & GAS – 15.61%
Eni SpA	1,060,092		32,417,605
			32,417,605
RETAIL – 1.11%
Autogrill SpA	70,034		1,263,706
Bulgari SpA	72,248		1,041,207
			2,304,913
TELECOMMUNICATIONS – 6.57%
Telecom Italia SpA	4,399,959		13,295,238
Tiscali SpAa,b	104,781		351,562
			13,646,800
TOTAL COMMON STOCKS (Cost: $181,747,426)			195,852,765
PREFERRED STOCKS – 5.52%
BANKS – 0.45%
Intesa Sanpaolo SpA RNC	131,208		932,457
			932,457
INSURANCE – 2.14%
Unipol SpA	1,309,365		4,449,411
			4,449,411
TELECOMMUNICATIONS – 2.93%
Telecom Italia SpA RNC	2,397,567		6,083,934
			6,083,934
TOTAL PREFERRED STOCKS (Cost: $10,895,454)			11,465,802

44 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2007

Security	Principal		Value
SHORT-TERM INVESTMENTS – 1.05%
CERTIFICATES OF DEPOSITc – 0.04%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	20,418	$	20,418
Deutsche Bank AG
5.35%, 08/08/07		34,031		34,031
Washington Mutual Bank
5.33%, 03/19/07		34,031		34,031
				88,480
COMMERCIAL PAPERc – 0.20%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d		12,947		12,869
BNP Paribas Finance Inc.
5.12%, 06/06/07		4,764		4,699
Bryant Park Funding LLC
5.27%, 03/06/07d		3,355		3,352
Cantabric Finance LLC
5.25%, 03/06/07d		10,890		10,882
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		10,209		10,136
Concord Minutemen Capital Co. LLC
5.29%, 03/19/07d		6,938		6,920
Crown Point Capital Co. LLC
5.20%, 07/18/07d		15,724		15,409
Edison Asset Securitization LLC
5.21%, 04/11/07d		5,641		5,608
Five Finance Inc.
5.22%, 04/20/07d		6,262		6,216
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07d		23,822		23,413
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d		22,324		22,298
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07d		26,544		26,214
Harrier Finance Funding LLC
5.12%, 06/06/07d		13,612		13,425
Irish Permanent Treasury PLC
5.18%, 07/10/07		6,806		6,678
KKR Pacific Funding Trust
5.29%, 03/13/07d		17,016		16,986

Security	Principal		Value
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07d	$	17,199	$	16,906
Liberty Street Funding Corp.
5.27%, 03/06/07d		1,633		1,632
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		30,709		30,418
Nationwide Building Society
5.21%, 04/13/07d		12,932		12,851
Nestle Capital Corp.
5.19%, 08/09/07		8,167		7,978
Sedna Finance Inc.
5.22%, 04/17/07d		7,759		7,706
Simba Funding Corp.
5.20%, 07/23/07d		13,612		13,329
Societe Generale
5.18%, 05/16/07		34,031		33,659
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07d		51,857		51,807
Thornburg Mortgage Capital Resources LLC
5.28%, 03/12/07d		9,964		9,948
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07d		7,146		7,141
Tulip Funding Corp.
5.29%, 03/15/07d		26,131		26,077
Westpac Banking Corp.
5.20%, 07/12/07d		12,251		12,016
Zela Finance Inc.
5.20%, 07/16/07d		8,167		8,006
				424,579
MEDIUM-TERM NOTESc – 0.02%
Bank of America N.A.
5.28%, 04/20/07		3,403		3,403
Cullinan Finance Corp.
5.71%, 06/28/07d		10,209		10,209
K2 USA LLC
5.39%, 06/04/07d		10,209		10,209
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07d		15,926		15,926
				39,747

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
MONEY MARKET FUNDS – 0.15%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares
5.30%e,f		305,711	$	305,711
				305,711
REPURCHASE AGREEMENTSc – 0.12%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $27,229 (collateralized by non-U.S. Government debt securities, value $28,064, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	27,225		27,225
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $20,422 (collateralized by non-U.S. Government debt securities, value $22,478, 0.00% to 9.20%, 10/17/18 to 11/25/52).		20,419		20,419
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $1,361 (collateralized by non-U.S. Government debt securities, value $1,430, 5.43%, 3/15/08).		1,361		1,361
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $20,422 (collateralized by non-U.S. Government debt securities, value $22,002, 0.00% to 10.00%, 5/27/33 to 8/25/46).		20,419		20,419
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $27,229 (collateralized by non-U.S. Government debt securities, value $28,609, 4.91% to 6.31%, 10/25/33 to 8/25/46).		27,225		27,225

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $14,976 (collateralized by non-U.S. Government debt securities, value $16,136, 0.00% to 10.00%, 5/27/33 to 8/25/46).	$	14,974	$	14,974
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $8,168 (collateralized by non-U.S. Government debt securities, value $9,099, 0.00% to 10.00%, 5/27/33 to 2/28/37).		8,167		8,167
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $5,052 (collateralized by non-U.S. Government debt securities, value $5,308, 4.52% to 6.89%, 1/15/09 to 10/25/36).		5,051		5,051
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $57,181 (collateralized by non-U.S. Government debt securities, value $63,038, 0.00% to 10.00%, 4/1/07 to 12/31/49).		57,172		57,172
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $6,807 (collateralized by non-U.S. Government debt securities, value $7,153, 3.72% to 5.99%, 12/15/36 to 6/1/46).		6,806		6,806
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $3,404 (collateralized by non-U.S. Government debt securities, value $3,577, 6.25% to 9.56%, 5/15/11 to 2/1/30).		3,403		3,403

46 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2007

Security	Principal		Value
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $13,614 (collateralized by non-U.S. Government debt securities, value $14,304, 1.63% to 14.50%, 5/1/07 to 9/18/37).	$	13,612	$	13,612
Morgan Stanley 5.36%, due 3/1/07, maturity value $13,614 (collateralized by non-U.S. Government debt securities, value $14,308, 0.00% to 10.00%, 3/1/07 to 2/28/37).		13,612		13,612
Morgan Stanley 5.51%, due 2/4/08, maturity value $10,016 (collateralized by non-U.S. Government debt securities, value $11,300, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		9,529		9,529
Wachovia Capital 5.38%, due 3/1/07, maturity value $29,951 (collateralized by non-U.S. Government debt securities, value $31,470, 0.00% to 8.32%, 2/15/08 to 3/15/49).		29,947		29,947
				258,922
TIME DEPOSITSc – 0.04%
Bank of Nova Scotia
5.30%, 03/02/07		5,709		5,709
Chase Bank USA N.A.
5.38%, 03/01/07		20,419		20,419
Citibank N.A.
5.47%, 03/01/07		20,419		20,419
Deutsche Bank AG
5.38%, 03/01/07		31,972		31,972
				78,519

Security	Principal		Value
VARIABLE & FLOATING RATE NOTESc – 0.48%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08d	$	34,848	$	34,851
American Express Centurion Bank
5.41%, 07/19/07		14,974		14,980
American Express Credit Corp.
5.42%, 03/05/08		4,084		4,086
AmeriCredit Automobile Receivables Trust
5.35%, 03/06/07		620		620
Arkle Master Issuer PLC Series 2006-1A Class 1A
5.30%, 11/19/07d		10,209		10,209
ASIF Global Financing
5.40%, 05/03/07d		1,361		1,361
Australia & New Zealand Banking Group Ltd.
5.32%, 02/22/08d		8,848		8,848
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08d		19,738		19,739
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07d		34,712		34,712
BMW US Capital LLC
5.32%, 01/15/08d		13,612		13,612
BNP Paribas
5.33%, 11/19/07d		25,183		25,183
Brigantine High Grade Funding Ltd.
5.40%, 09/05/07d		13,068		13,067
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07d		9,937		9,937
CC USA Inc.
5.36%, 07/30/07d		6,806		6,807
Commodore CDO Ltd.
5.44%, 12/12/07d		3,403		3,403
Credit Agricole SA
5.33%, 11/23/07		13,612		13,612
Credit Suisse First Boston NY
5.36%, 04/24/07		6,806		6,806

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2007

Security	Principal		Value
Cullinan Finance Corp.
5.36%, 04/25/07d	$	3,403	$	3,403
DaimlerChrysler Auto Trust Series 2006-C Class A1
5.33%, 10/08/07d		1,044		1,044
DEPFA Bank PLC
5.40%, 12/14/07d		13,612		13,612
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07d		15,654		15,655
Eli Lilly Services Inc.
5.31%, 03/01/07d		9,086		9,086
Fifth Third Bancorp
5.32%, 02/22/08d		27,225		27,225
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07d		8,848		8,848
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08d		14,293		14,294
Granite Master Issuer PLC
5.29%, 08/20/07d		47,644		47,644
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07d		17,696		17,697
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		20,419		20,420
HBOS Treasury Services PLC
5.46%, 01/24/08d		13,612		13,612
Holmes Financing PLC
5.29%, 07/16/07d		23,822		23,822
JP Morgan Securities Inc.
5.40%, 11/16/07		27,225		27,225
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08g		37,434		37,434
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07d		10,209		10,209
Kestrel Funding LLC
5.30%, 07/11/07d		5,445		5,445

Security	Principal		Value
Kommunalkredit Austria AG
5.32%, 02/08/08d	$	8,167	$	8,167
Leafs LLC
5.32%, 01/22/08d		13,189		13,189
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07d		14,974		14,973
Lothian Mortgages Master Issuer PLC
5.29%, 04/24/07d		4,799		4,799
Marshall & Ilsley Bank
5.32%, 02/15/08		7,487		7,487
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d		24,635		24,635
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		14,974		14,974
Metropolitan Life Global Funding I
5.33%, 03/06/08d		20,419		20,419
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07d,g		1,361		1,361
Mound Financing PLC
5.29%, 05/08/07d		12,796		12,796
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08d		21,780		21,779
National City Bank of Indiana
5.34%, 05/21/07		6,806		6,806
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08d		44,921		44,926
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08d		13,646		13,644
Northern Rock PLC
5.38%, 02/01/08d		16,335		16,335
Northlake CDO I
5.42%, 09/06/07d		4,084		4,084
Pricoa Global Funding I
5.31%, 02/27/08d		18,377		18,377
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07d		19,738		19,737

48 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2007

Security	Principal		Value
Skandinaviska Enskilda Banken
5.32%, 02/15/08d	$	13,612	$	13,612
Strips III LLC
5.37%, 07/24/07d		2,770		2,770
SunTrust Bank
5.29%, 05/01/07		13,612		13,613
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07d		33,214		33,213
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07d		22,461		22,460
Wachovia Asset Securitization Inc.
5.31%, 03/25/07d		15,366		15,366
Wachovia Bank N.A.
5.36%, 05/22/07		27,225		27,225
Wal-Mart Stores Inc.
5.50%, 07/16/07d		10,209		10,212
Wells Fargo & Co.
5.33%, 11/15/07d		6,806		6,806
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07d		10,209		10,210
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07d		40,837		40,833
Wind Master Trust
5.31%, 07/25/07d		5,445		5,445
				988,761
TOTAL SHORT-TERM INVESTMENTS (Cost: $2,184,719)				2,184,719
TOTAL INVESTMENTS IN SECURITIES – 100.89% (Cost: $194,827,599)				209,503,286
Other Assets, Less Liabilities – (0.89)%				(1,844,821	)
NET ASSETS – 100.00%			$	207,658,465

^a Non-income earning security.

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

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Unaudited)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.95%
BANKS – 13.81%
ABN AMRO Holding NV	721,688	$	25,272,348
			25,272,348
BEVERAGES – 3.44%
Heineken NV	127,917		6,294,206
			6,294,206
CHEMICALS – 6.57%
Akzo Nobel NV	133,861		8,238,216
Koninklijke DSM NV	87,709		3,794,389
			12,032,605
COMMERCIAL SERVICES – 1.84%
Randstad Holding NV	22,333		1,562,066
Vedior NV	82,994		1,807,814
			3,369,880
COMPUTERS – 0.30%
Getronics NVa	64,176		549,331
			549,331
DISTRIBUTION & WHOLESALE – 0.99%
Buhrmann NV	55,289		754,441
Hagemeyer NVa,b	223,259		1,055,792
			1,810,233
ELECTRONICS – 8.99%
Koninklijke Philips Electronics NV	448,811		16,463,636
			16,463,636
FOOD – 14.94%
Koninklijke Ahold NVb	692,593		6,916,498
Royal Numico NV	76,063		3,914,522
Unilever NV	638,288		16,517,241
			27,348,261
INSURANCE – 22.42%
Aegon NV	447,366		8,834,674
ING Groep NV	755,743		32,215,100
			41,049,774
MEDIA – 6.38%
Reed Elsevier NV	422,302		7,452,740
Wolters Kluwer NV CVA	139,903		4,226,487
			11,679,227

Security	Shares or Principal		Value
OFFICE & BUSINESS EQUIPMENT – 0.53%
Oce NV		58,143	$	966,194
				966,194
OIL & GAS SERVICES – 1.70%
Fugro NV		23,939		1,118,478
SBM Offshore NV		56,160		1,994,823
				3,113,301
REAL ESTATE INVESTMENT TRUSTS – 5.35%
Corio NV		31,339		2,908,157
Rodamco Europe NV		32,876		4,522,545
Wereldhave NV		17,792		2,362,220
				9,792,922
SEMICONDUCTORS – 2.90%
ASML Holding NVb		215,729		5,303,240
				5,303,240
TELECOMMUNICATIONS – 4.95%
Koninklijke KPN NV		588,079		9,057,756
				9,057,756
TRANSPORTATION – 4.84%
TNT NV		206,276		8,858,334
				8,858,334
TOTAL COMMON STOCKS (Cost: $161,019,572)				182,961,248
SHORT-TERM INVESTMENTS – 0.75%
CERTIFICATES OF DEPOSITc – 0.04%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	14,925		14,925
Deutsche Bank AG
5.35%, 08/08/07		24,874		24,874
Washington Mutual Bank
5.33%, 03/19/07		24,874		24,874
				64,673
COMMERCIAL PAPERc – 0.17%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d		9,463		9,402
BNP Paribas Finance Inc.
5.12%, 06/06/07		3,482		3,434

50 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2007

Security	Principal		Value
Bryant Park Funding LLC
5.27%, 03/06/07d	$	2,452	$	2,450
Cantabric Finance LLC
5.25%, 03/06/07d		7,960		7,954
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		7,462		7,408
Concord Minutemen Capital Co. LLC
5.29%, 03/19/07d		5,071		5,058
Crown Point Capital Co. LLC
5.20%, 07/18/07d		11,493		11,263
Edison Asset Securitization LLC
5.21%, 04/11/07d		4,123		4,099
Five Finance Inc.
5.22%, 04/20/07d		4,577		4,544
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07d		17,412		17,113
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d		16,318		16,298
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07d		19,402		19,161
Harrier Finance Funding LLC
5.12%, 06/06/07d		9,950		9,813
Irish Permanent Treasury PLC
5.18%, 07/10/07		4,975		4,881
KKR Pacific Funding Trust
5.29%, 03/13/07d		12,437		12,415
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07d		12,571		12,357
Liberty Street Funding Corp.
5.27%, 03/06/07d		1,194		1,193
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		22,446		22,233
Nationwide Building Society
5.21%, 04/13/07d		9,452		9,393
Nestle Capital Corp.
5.19%, 08/09/07		5,970		5,831
Sedna Finance Inc.
5.22%, 04/17/07d		5,671		5,633

Security	Shares or Principal		Value
Simba Funding Corp.
5.20%, 07/23/07d	$	9,950	$	9,743
Societe Generale
5.18%, 05/16/07		24,874		24,602
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07d		37,904		37,867
Thornburg Mortgage Capital Resources LLC
5.28%, 03/12/07d		7,283		7,271
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07d		5,223		5,219
Tulip Funding Corp.
5.29%, 03/15/07d		19,100		19,060
Westpac Banking Corp.
5.20%, 07/12/07d		8,955		8,783
Zela Finance Inc.
5.20%, 07/16/07d		5,970		5,852
				310,330
MEDIUM-TERM NOTESc – 0.02%
Bank of America N.A.
5.28%, 04/20/07		2,487		2,487
Cullinan Finance Corp.
5.71%, 06/28/07d		7,462		7,462
K2 USA LLC
5.39%, 06/04/07d		7,462		7,462
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07d		11,641		11,641
				29,052
MONEY MARKET FUNDS – 0.00%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%e,f		1,334		1,334
				1,334

SCHEDULES OF INVESTMENTS 51

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2007

Security	Principal		Value
REPURCHASE AGREEMENTSc – 0.10%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $19,903 (collateralized by non-U.S. Government debt securities, value $20,513, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	19,900	$	19,900
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $14,927 (collateralized by non-U.S. Government debt securities, value $16,430, 0.00% to 9.20%, 10/17/18 to 11/25/52).		14,925		14,925
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $995 (collateralized by non-U.S. Government debt securities, value $1,046, 5.43%, 3/15/08).		995		995
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $14,927 (collateralized by non-U.S. Government debt securities, value $16,082, 0.00% to 10.00%, 5/27/33 to 8/25/46).		14,925		14,925
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $19,903 (collateralized by non-U.S. Government debt securities, value $20,911, 4.91% to 6.31%, 10/25/33 to 8/25/46).		19,900		19,900
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $10,947 (collateralized by non-U.S. Government debt securities, value $11,794, 0.00% to 10.00%, 5/27/33 to 8/25/46).		10,945		10,945

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $5,971 (collateralized by non-U.S. Government debt securities, value $6,651, 0.00% to 10.00%, 5/27/33 to 2/28/37).	$	5,970	$	5,970
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $3,693 (collateralized by non-U.S. Government debt securities, value $3,880, 4.52% to 6.89%, 1/15/09 to 10/25/36).		3,692		3,692
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $41,795 (collateralized by non-U.S. Government debt securities, value $46,076, 0.00% to 10.00%, 4/1/07 to 12/31/49).		41,789		41,789
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $4,976 (collateralized by non-U.S. Government debt securities, value $5,228, 3.72% to 5.99%, 12/15/36 to 6/1/46).		4,975		4,975
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $2,487 (collateralized by non-U.S. Government debt securities, value $2,614, 6.25% to 9.56%, 5/15/11 to 2/1/30).		2,487		2,487
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $9,951 (collateralized by non-U.S. Government debt securities, value $10,456, 1.63% to 14.50%, 5/1/07 to 9/18/37).		9,950		9,950

52 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2007

Security	Principal		Value
Morgan Stanley 5.36%, due 3/1/07, maturity value $9,951 (collateralized by non-U.S. Government debt securities, value $10,458, 0.00% to 10.00%, 3/1/07 to 2/28/37).	$	9,950	$	9,950
Morgan Stanley 5.51%, due 2/4/08, maturity value $7,321 (collateralized by non-U.S. Government debt securities, value $8,260, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		6,965		6,965
Wachovia Capital 5.38%, due 3/1/07, maturity value $21,892 (collateralized by non-U.S. Government debt securities, value $23,002, 0.00% to 8.32%, 2/15/08 to 3/15/49).		21,889		21,889
				189,257
TIME DEPOSITSc – 0.03%
Bank of Nova Scotia
5.30%, 03/02/07		4,173		4,173
Chase Bank USA N.A.
5.38%, 03/01/07		14,925		14,925
Citibank N.A.
5.47%, 03/01/07		14,925		14,925
Deutsche Bank AG
5.38%, 03/01/07		23,369		23,369
				57,392
VARIABLE & FLOATING RATE NOTESc – 0.39%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08d		25,471		25,474
American Express Centurion Bank
5.41%, 07/19/07		10,945		10,950
American Express Credit Corp.
5.42%, 03/05/08		2,985		2,986
AmeriCredit Automobile Receivables Trust
5.35%, 03/06/07		453		453

Security	Principal		Value
Arkle Master Issuer PLC Series 2006-1A Class 1A
5.30%, 11/19/07d	$	7,462	$	7,462
ASIF Global Financing
5.40%, 05/03/07d		995		995
Australia & New Zealand Banking Group Ltd.
5.32%, 02/22/08d		6,467		6,467
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08d		14,427		14,428
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07d		25,372		25,372
BMW US Capital LLC
5.32%, 01/15/08d		9,950		9,950
BNP Paribas
5.33%, 11/19/07d		18,407		18,407
Brigantine High Grade Funding Ltd.
5.40%, 09/05/07d		9,552		9,551
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07d		7,263		7,263
CC USA Inc.
5.36%, 07/30/07d		4,975		4,975
Commodore CDO Ltd.
5.44%, 12/12/07d		2,487		2,487
Credit Agricole SA
5.33%, 11/23/07		9,950		9,950
Credit Suisse First Boston NY
5.36%, 04/24/07		4,975		4,975
Cullinan Finance Corp.
5.36%, 04/25/07d		2,487		2,487
DaimlerChrysler Auto Trust Series 2006-C Class A1
5.33%, 10/08/07d		763		763
DEPFA Bank PLC
5.40%, 12/14/07d		9,950		9,950
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07d		11,442		11,442
Eli Lilly Services Inc.
5.31%, 03/01/07d		6,641		6,641

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2007

Security	Principal		Value
Fifth Third Bancorp
5.32%, 02/22/08d	$	19,900	$	19,900
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07d		6,467		6,467
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08d		10,447		10,448
Granite Master Issuer PLC
5.29%, 08/20/07d		34,824		34,824
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07d		12,935		12,934
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		14,925		14,926
HBOS Treasury Services PLC
5.46%, 01/24/08d		9,950		9,950
Holmes Financing PLC
5.29%, 07/16/07d		17,412		17,412
JP Morgan Securities Inc.
5.40%, 11/16/07		19,900		19,900
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08g		27,362		27,362
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07d		7,462		7,462
Kestrel Funding LLC
5.30%, 07/11/07d		3,980		3,980
Kommunalkredit Austria AG
5.32%, 02/08/08d		5,970		5,970
Leafs LLC
5.32%, 01/22/08d		9,640		9,640
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07d		10,945		10,944
Lothian Mortgages Master Issuer PLC
5.29%, 04/24/07d		3,508		3,508
Marshall & Ilsley Bank
5.32%, 02/15/08		5,472		5,472

Security	Principal		Value
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d	$	18,006	$	18,007
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		10,945		10,945
Metropolitan Life Global Funding I
5.33%, 03/06/08d		14,925		14,925
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07d,g		995		995
Mound Financing PLC
5.29%, 05/08/07d		9,353		9,353
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08d		15,920		15,919
National City Bank of Indiana
5.34%, 05/21/07		4,975		4,975
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08d		32,834		32,838
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08d		9,975		9,973
Northern Rock PLC
5.38%, 02/01/08d		11,940		11,940
Northlake CDO I
5.42%, 09/06/07d		2,985		2,985
Pricoa Global Funding I
5.31%, 02/27/08d		13,432		13,432
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07d		14,427		14,427
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		9,950		9,950
Strips III LLC
5.37%, 07/24/07d		2,025		2,025
SunTrust Bank
5.29%, 05/01/07		9,950		9,950
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07d		24,277		24,276
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07d		16,417		16,417

54 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 28, 2007

Security	Principal		Value
Wachovia Asset Securitization Inc.
5.31%, 03/25/07d	$	11,231	$	11,232
Wachovia Bank N.A.
5.36%, 05/22/07		19,900		19,900
Wal-Mart Stores Inc.
5.50%, 07/16/07d		7,462		7,464
Wells Fargo & Co.
5.33%, 11/15/07d		4,975		4,975
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07d		7,462		7,463
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07d		29,849		29,846
Wind Master Trust
5.31%, 07/25/07d		3,980		3,980
				722,719
TOTAL SHORT-TERM INVESTMENTS (Cost: $1,374,757)				1,374,757
TOTAL INVESTMENTS IN SECURITIES – 100.70% (Cost: $162,394,329)				184,336,005
Other Assets, Less Liabilities – (0.70)%				(1,277,302	)
NET ASSETS – 100.00%			$	183,058,703

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

^b Non-income earning security.

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Unaudited)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.89%
AGRICULTURE – 3.09%
Altadis SA	402,894	$	20,404,657
			20,404,657
AIRLINES – 0.40%
Iberia Lineas Aereas de Espana SA	620,946		2,616,561
			2,616,561
BANKS – 38.16%
Banco Bilbao Vizcaya Argentaria SA	3,604,785		87,758,882
Banco Popular Espanol SA	1,660,338		32,613,233
Banco Santander Central Hispano SA	6,721,941		124,399,665
Bankinter SA	92,867		6,863,536
			251,635,316
BIOTECHNOLOGY – 0.23%
Zeltia SAa,b	165,402		1,496,641
			1,496,641
COMMERCIAL SERVICES – 2.71%
Abertis Infraestructuras SAb	443,394		12,627,720
Cintra Concesiones de Infraestructuras de Transporte SAb	297,470		5,226,142
			17,853,862
COMPUTERS – 0.68%
Indra Sistemas SA	194,745		4,476,122
			4,476,122
ELECTRIC – 11.48%
Endesa SA	671,328		34,097,103
Iberdrola SA	735,318		32,218,628
Union Fenosa SA	187,280		9,375,987
			75,691,718
ENERGY - ALTERNATE SOURCES – 1.05%
Gamesa Corporacion Tecnologica SA	242,276		6,947,949
			6,947,949
ENGINEERING & CONSTRUCTION – 8.32%
Acciona SA	44,481		8,881,147
Actividades de Construcciones y Servicios SA	375,844		21,244,000

Security	Shares	Value
Fomento de Construcciones y Contratas SA	87,591	$	9,094,282
Grupo Ferrovial SA	83,719		8,283,087
SacyrVallehermoso SAb	135,433		7,352,799
			54,855,315
FOOD – 0.91%
Ebro Puleva SA	245,887		5,716,558
Viscofan SA	14,338		295,650
			6,012,208
FOREST PRODUCTS & PAPER – 0.29%
Grupo Empresarial ENCE SA	32,795		1,942,060
			1,942,060
GAS – 2.66%
Gas Natural SDG SA	410,994		17,568,326
			17,568,326
INSURANCE – 1.17%
Corporacion Mapfre SA	1,552,932		7,692,546
			7,692,546
IRON & STEEL – 1.13%
Acerinox SAb	280,751		7,465,372
			7,465,372
LODGING – 0.21%
NH Hoteles SAb	59,783		1,348,814
NH Hoteles SA Rightsa,b	59,783		20,532
			1,369,346
MEDIA – 1.26%
Antena 3 de Television SAb	145,962		3,264,248
Promotora de Informaciones SA	154,386		3,059,043
Sogecable SAa,b	52,974		1,987,319
			8,310,610
OIL & GAS – 4.30%
Repsol YPF SA	892,458		28,328,784
			28,328,784
PHARMACEUTICALS – 0.59%
FAES FARMA SAb	169,128		3,887,328
			3,887,328
REAL ESTATE – 0.39%
Fadesa Inmobiliaria SA	53,579		2,559,938
			2,559,938

56 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
RETAIL – 2.84%
Industria de Diseno Textil SA		322,636	$	18,747,923
				18,747,923
TELECOMMUNICATIONS – 17.08%
Telefonica SA		5,232,808		112,670,127
				112,670,127
WATER – 0.94%
Sociedad General de Aguas de Barcelona SA Class A		182,967		6,146,183
Sociedad General de Aguas de Barcelona SA Newa,c		1,456		47,775
				6,193,958
TOTAL COMMON STOCKS (Cost: $610,885,512)				658,726,667
SHORT-TERM INVESTMENTS – 2.25%
CERTIFICATES OF DEPOSITd – 0.10%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	159,375		159,375
Deutsche Bank AG
5.35%, 08/08/07		265,624		265,624
Washington Mutual Bank
5.33%, 03/19/07		265,624		265,624
				690,623
COMMERCIAL PAPERd – 0.50%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07e		101,055		100,372
BNP Paribas Finance Inc.
5.12%, 06/06/07		37,187		36,675
Bryant Park Funding LLC
5.27%, 03/06/07e		26,184		26,165
Cantabric Finance LLC
5.25%, 03/06/07e		85,000		84,938
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07e		79,687		79,115
Concord Minutemen Capital Co. LLC
5.29%, 03/19/07e		54,152		54,009
Crown Point Capital Co. LLC
5.20%, 07/18/07e		122,734		120,270

Security	Principal		Value
Edison Asset Securitization LLC
5.21%, 04/11/07e	$	44,033	$	43,772
Five Finance Inc.
5.22%, 04/20/07e		48,875		48,520
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07e		185,937		182,744
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07e		174,249		174,039
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07e		207,187		204,613
Harrier Finance Funding LLC
5.12%, 06/06/07e		106,250		104,785
Irish Permanent Treasury PLC
5.18%, 07/10/07		53,125		52,123
KKR Pacific Funding Trust
5.29%, 03/13/07e		132,812		132,578
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07e		134,244		131,960
Liberty Street Funding Corp.
5.27%, 03/06/07e		12,750		12,741
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07e		239,695		237,418
Nationwide Building Society
5.21%, 04/13/07e		100,937		100,309
Nestle Capital Corp.
5.19%, 08/09/07		63,750		62,270
Sedna Finance Inc.
5.22%, 04/17/07e		60,562		60,150
Simba Funding Corp.
5.20%, 07/23/07e		106,250		104,040
Societe Generale
5.18%, 05/16/07		265,624		262,719
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07e		404,764		404,372
Thornburg Mortgage Capital Resources LLC
5.28%, 03/12/07e		77,775		77,649

SCHEDULES OF INVESTMENTS 57

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07e	$	55,779	$	55,735
Tulip Funding Corp.
5.29%, 03/15/07e		203,958		203,538
Westpac Banking Corp.
5.20%, 07/12/07e		95,625		93,788
Zela Finance Inc.
5.20%, 07/16/07e		63,750		62,488
				3,313,895
MEDIUM-TERM NOTESd – 0.05%
Bank of America N.A.
5.28%, 04/20/07		26,562		26,562
Cullinan Finance Corp.
5.71%, 06/28/07e		79,687		79,687
K2 USA LLC
5.39%, 06/04/07e		79,687		79,687
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07e		124,312		124,312
				310,248
MONEY MARKET FUNDS – 0.03%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%f,g		168,686		168,686
				168,686
REPURCHASE AGREEMENTSd – 0.31%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $212,531 (collateralized by non-U.S. Government debts securities, value $219,047, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	212,499		212,499
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $159,398 (collateralized by non-U.S. Government debts securities, value $175,450, 0.00% to 9.20%, 10/17/18 to 11/25/52).		159,374		159,374

Security	Principal		Value
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $10,627 (collateralized by non-U.S. Government debt securities, value $11,165, 5.43%, 3/15/08).	$	10,625	$	10,625
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $159,398 (collateralized by non-U.S. Government debt securities, value $171,731, 0.00% to 10.00%, 5/27/33 to 8/25/46).		159,374		159,374
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $212,531 (collateralized by non-U.S. Government debt securities, value $223,300, 4.91% to 6.31%, 10/25/33 to 8/25/46).		212,499		212,499
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $116,893 (collateralized by non-U.S. Government debt securities, value $125,948, 0.00% to 10.00%, 5/27/33 to 8/25/46).		116,875		116,875
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $63,760 (collateralized by non-U.S. Government debt securities, value $71,020, 0.00% to 10.00%, 5/27/33 to 2/28/37).		63,750		63,750
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $39,432 (collateralized by non-U.S. Government debt securities, value $41,430, 4.52% to 6.89%, 1/15/09 to 10/25/36).		39,426		39,426

58 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2007

Security	Principal		Value
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $446,316 (collateralized by non-U.S. Government debt securities, value $492,032, 0.00% to 10.00%, 4/1/07 to 12/31/49).	$	446,248	$	446,248
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $53,133 (collateralized by non-U.S. Government debt securities, value $55,829, 3.72% to 5.99%, 12/15/36 to 6/1/46).		53,125		53,125
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $26,566 (collateralized bynon-U.S. Government debt securities, value $27,916, 6.25% to 9.56%, 5/15/11 to 2/1/30).		26,562		26,562
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $106,266 (collateralized by non-U.S. Government debt securities, value $111,651, 1.63% to 14.50%, 5/1/07 to 9/18/37).		106,250		106,250
Morgan Stanley 5.36%, due 3/1/07, maturity value $106,266 (collateralized by non-U.S. Government debt securities, value $111,675, 0.00% to 10.00%, 3/1/07 to 2/28/37).		106,250		106,250
Morgan Stanley 5.51%, due 2/4/08, maturity value $78,177 (collateralized by non-U.S. Government debt securities, value $88,202, 0.00% to 10.00%, 3/1/07 to 2/28/37).h		74,375		74,375

Security	Principal		Value
Wachovia Capital 5.38%, due 3/1/07, maturity value $233,784 (collateralized by non-U.S. Government debt securities, value $245,630, 0.00% to 8.32%, 2/15/08 to 3/15/49).	$	233,749	$	233,749
				2,020,981
TIME DEPOSITSd – 0.09%
Bank of Nova Scotia
5.30%, 03/02/07		44,557		44,557
Chase Bank USA N.A.
5.38%, 03/01/07		159,374		159,374
Citibank N.A.
5.47%, 03/01/07		159,374		159,374
Deutsche Bank AG
5.38%, 03/01/07		249,550		249,550
				612,855
VARIABLE & FLOATING RATE NOTESd – 1.17%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08e		271,999		272,025
American Express Centurion Bank
5.41%, 07/19/07		116,875		116,927
American Express Credit Corp.
5.42%, 03/05/08		31,875		31,890
AmeriCredit Automobile Receivables Trust
5.35%, 03/06/07		4,842		4,842
Arkle Master Issuer PLC Series 2006-1A Class 1A
5.30%, 11/19/07e		79,687		79,687
ASIF Global Financing
5.40%, 05/03/07e		10,625		10,626
Australia & New Zealand Banking Group Ltd.
5.32%, 02/22/08e		69,062		69,062
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08e		154,062		154,067

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2007

Security	Principal		Value
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07e	$	270,936	$	270,941
BMW US Capital LLC
5.32%, 01/15/08e		106,250		106,250
BNP Paribas
5.33%, 11/19/07e		196,562		196,562
Brigantine High Grade Funding Ltd.
5.40%, 09/05/07e		102,000		101,990
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07e		77,562		77,562
CC USA Inc.
5.36%, 07/30/07e		53,125		53,128
Commodore CDO Ltd.
5.44%, 12/12/07e		26,562		26,562
Credit Agricole SA
5.33%, 11/23/07		106,250		106,250
Credit Suisse First Boston NY
5.36%, 04/24/07		53,125		53,125
Cullinan Finance Corp.
5.36%, 04/25/07e		26,562		26,562
DaimlerChrysler Auto Trust Series 2006-C Class A1
5.33%, 10/08/07e		8,150		8,150
DEPFA Bank PLC
5.40%, 12/14/07e		106,250		106,250
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07e		122,187		122,189
Eli Lilly Services Inc.
5.31%, 03/01/07e		70,922		70,922
Fifth Third Bancorp
5.32%, 02/22/08e		212,499		212,499
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07e		69,062		69,059
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08e		111,562		111,573
Granite Master Issuer PLC
5.29%, 08/20/07e		371,874		371,874

Security	Principal		Value
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07e	$	138,124	$	138,126
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		159,374		159,385
HBOS Treasury Services PLC
5.46%, 01/24/08e		106,250		106,250
Holmes Financing PLC
5.29%, 07/16/07e		185,937		185,937
JP Morgan Securities Inc.
5.40%, 11/16/07		212,499		212,499
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08h		292,186		292,186
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07e		79,687		79,685
Kestrel Funding LLC
5.30%, 07/11/07e		42,500		42,498
Kommunalkredit Austria AG
5.32%, 02/08/08e		63,750		63,750
Leafs LLC
5.32%, 01/22/08e		102,942		102,942
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07e		116,875		116,872
Lothian Mortgages MasterIssuer PLC
5.29%, 04/24/07e		37,458		37,458
Marshall & Ilsley Bank
5.32%, 02/15/08		58,437		58,437
Master Funding LLC
5.35%, 04/25/07 - 05/25/07e		192,283		192,283
Merrill Lynch & Co. Inc.
5.46%, 05/30/07h		116,875		116,875
Metropolitan Life Global Funding I
5.33%, 03/06/08e		159,374		159,374
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07e,h		10,625		10,625
Mound Financing PLC
5.29%, 05/08/07e		99,875		99,875

60 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2007

Security	Principal		Value
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08e	$	169,999	$	169,997
National City Bank of Indiana
5.34%, 05/21/07		53,125		53,126
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08e		350,624		350,663
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08e		106,515		106,501
Northern Rock PLC
5.38%, 02/01/08e		127,500		127,502
Northlake CDO I
5.42%, 09/06/07e		31,875		31,875
Pricoa Global Funding I
5.31%, 02/27/08e		143,437		143,437
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07e		154,062		154,061
Skandinaviska Enskilda Banken
5.32%, 02/15/08e		106,250		106,250
Strips III LLC
5.37%, 07/24/07e		21,620		21,620
SunTrust Bank
5.29%, 05/01/07		106,250		106,251
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07e		259,249		259,240
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07e		175,312		175,312
Wachovia Asset Securitization Inc.
5.31%, 03/25/07e		119,937		119,937
Wachovia Bank N.A.
5.36%, 05/22/07		212,499		212,499
Wal-Mart Stores Inc.
5.50%, 07/16/07e		79,687		79,707
Wells Fargo & Co.
5.33%, 11/15/07e		53,125		53,127
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07e		79,687		79,688

Security	Principal		Value
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07e	$	318,749	$	318,720
Wind MasterTrust
5.31%, 07/25/07e		42,500		42,500
				7,717,644
TOTAL SHORT-TERM INVESTMENTS (Cost: $14,834,932)				14,834,932
TOTAL INVESTMENTS IN SECURITIES – 102.14% (Cost: $625,720,444)				673,561,599
Other Assets, Less Liabilities – (2.14)%				(14,093,753	)
NET ASSETS – 100.00%			$	659,467,846

^a Non-income earning security.

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

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

^d All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^e This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^f Affiliated issuer. See Note 2.

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

^h The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 100.02%
AGRICULTURE – 1.58%
Swedish Match AB	348,565	$	6,010,983
			6,010,983
AIRLINES – 0.40%
SAS ABa	85,503		1,520,191
			1,520,191
AUTO MANUFACTURERS – 9.65%
Scania AB Class B	115,920		8,541,326
Volvo AB Class A	109,877		8,691,128
Volvo AB Class B	252,287		19,380,279
			36,612,733
BANKS – 18.42%
Nordea Bank AB	2,406,145		36,487,138
Skandinaviska Enskilda Banken AB Class A	538,223		16,453,789
Svenska Handelsbanken AB Class A	590,870		16,968,497
			69,909,424
COMMERCIAL SERVICES – 2.02%
Securitas AB Class B	363,055		5,420,044
Securitas Direct AB Class Ba	365,775		1,058,246
Securitas Systems AB Class Ba	361,795		1,196,264
			7,674,554
COSMETICS & PERSONAL CARE – 0.49%
Oriflame Cosmetics SA	48,152		1,856,342
			1,856,342
DIVERSIFIED FINANCIAL SERVICES – 0.84%
D. Carnegie & Co. AB	71,812		1,507,054
OMX AB	88,920		1,685,495
			3,192,549
ENGINEERING & CONSTRUCTION – 2.37%
Skanska AB Class B	436,793		8,979,825
			8,979,825
FOOD – 0.36%
Axfood AB	34,948		1,369,719
			1,369,719
FOREST PRODUCTS & PAPER – 3.81%
Billerud AB	49,433		725,656

Security	Shares	Value
Holmen AB Class B	61,502	$	2,506,869
Svenska Cellulosa AB Class B	217,350		11,244,565
			14,477,090
HAND & MACHINE TOOLS – 4.83%
Sandvik AB	1,169,182		18,329,524
			18,329,524
HEALTH CARE - PRODUCTS – 1.69%
Elekta AB Class B	99,689		2,131,154
Getinge AB Class B	207,690		4,292,003
			6,423,157
HOME FURNISHINGS – 2.44%
Electrolux AB Series B	312,244		6,986,668
Nobia AB	56,838		2,280,308
			9,266,976
HOUSEHOLD PRODUCTS & WARES – 1.26%
Husqvarna ABa	309,281		4,782,548
			4,782,548
IRON & STEEL – 1.76%
SSAB Svenskt Stal AB Class A	175,490		4,714,548
SSAB Svenskt Stal AB Class B	76,804		1,964,829
			6,679,377
MACHINERY – 5.13%
Atlas Copco AB Class A	389,298		12,233,962
Atlas Copco AB Class B	242,466		7,222,266
			19,456,228
MANUFACTURING – 2.08%
Alfa Laval AB	110,124		5,493,213
Trelleborg AB Class B	94,997		2,396,401
			7,889,614
MEDIA – 1.49%
Eniro AB	201,250		2,366,280
Modern Times Group MTG AB Class Ba	59,248		3,272,064
			5,638,344
METAL FABRICATE & HARDWARE – 4.57%
Assa Abloy AB Class B	362,250		7,821,632
Hoganas AB Class Bb	30,429		754,594
SKF AB	470,603		8,752,691
			17,328,917

62 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
MINING – 1.86%
Boliden AB		335,524	$	7,077,203
				7,077,203
OIL & GAS – 0.69%
Lundin Petroleum ABa		255,507		2,621,873
				2,621,873
REAL ESTATE – 2.20%
Castellum AB		180,159		2,439,248
Fabege AB		93,065		2,500,196
Kungsleden AB		157,793		2,653,665
Wihlborgs Fastigheter AB		37,740		740,918
				8,334,027
RETAIL – 7.55%
Hennes & Mauritz AB Class B		550,459		28,674,030
				28,674,030
SOFTWARE – 0.14%
Telelogic ABa		285,672		549,639
				549,639
TELECOMMUNICATIONS – 22.39%
Tele2 AB Class B		376,318		5,658,272
Telefonaktiebolaget LM Ericsson Class B		17,187,877		61,118,004
TeliaSonera AB		2,168,348		18,232,968
				85,009,244
TOTAL COMMON STOCKS (Cost: $331,455,181)				379,664,111
SHORT-TERM INVESTMENTS – 0.09%
CERTIFICATES OF DEPOSITc– 0.00%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	3,023		3,023
Deutsche Bank AG
5.35%, 08/08/07		5,038		5,038
Washington Mutual Bank
5.33%, 03/19/07		5,038		5,038
				13,099

Security	Principal		Value
COMMERCIAL PAPERc – 0.02%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d	$	1,916	$	1,892
BNP Paribas Finance Inc.
5.12%, 06/06/07		705		696
Bryant Park Funding LLC
5.27%, 03/06/07d		497		496
Cantabric Finance LLC
5.25%, 03/06/07d		1,612		1,611
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		1,511		1,501
Concord Minutemen Capital Co. LLC
5.29%, 03/19/07d		1,027		1,024
Crown Point Capital Co. LLC
5.20%, 07/18/07d		2,328		2,281
Edison Asset Securitization LLC
5.21%, 04/11/07d		835		830
Five Finance Inc.
5.22%, 04/20/07d		927		920
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07d		3,526		3,466
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d		3,305		3,301
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07d		3,929		3,881
Harrier Finance Funding LLC
5.12%, 06/06/07d		2,015		1,987
Irish Permanent Treasury PLC
5.18%, 07/10/07		1,008		989
KKR Pacific Funding Trust
5.29%, 03/13/07d		2,519		2,514
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07d		2,546		2,502
Liberty Street Funding Corp.
5.27%, 03/06/07d		242		242

SCHEDULES OF INVESTMENTS 63

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2007

Security	Principal		Value
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d	$	4,546	$	4,502
Nationwide Building Society
5.21%, 04/13/07d		1,914		1,902
Nestle Capital Corp.
5.19%, 08/09/07		1,209		1,181
Sedna Finance Inc.
5.22%, 04/17/07d		1,149		1,141
Simba Funding Corp.
5.20%, 07/23/07d		2,015		1,973
Societe Generale
5.18%, 05/16/07		5,038		4,982
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07d		7,676		7,668
Thornburg Mortgage Capital Resources LLC
5.28%, 03/12/07d		1,475		1,473
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07d		1,058		1,057
Tulip Funding Corp.
5.29%, 03/15/07d		3,868		3,860
Westpac Banking Corp.
5.20%, 07/12/07d		1,814		1,779
Zela Finance Inc.
5.20%, 07/16/07d		1,209		1,185
				62,836
MEDIUM-TERM NOTESc – 0.00%
Bank of America N.A.
5.28%, 04/20/07		504		504
Cullinan Finance Corp.
5.71%, 06/28/07d		1,511		1,511
K2 USA LLC
5.39%, 06/04/07d		1,511		1,511
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07d		2,357		2,357
				5,883

Security	Shares or Principal		Value
MONEY MARKET FUNDS – 0.02%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%e,f		85,613	$	85,613
				85,613
REPURCHASE AGREEMENTSc – 0.01%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $4,031 (collateralized by non-U.S. Government debt securities, value $4,154, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	4,030		4,030
BearStearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $3,023 (collateralized by non-U.S. Government debt securities, value $3,327, 0.00% to 9.20%, 10/17/18 to 11/25/52).		3,023		3,023
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $202 (collateralized by non-U.S. Government debt securities, value $212, 5.43%, 3/15/08).		202		202
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $3,023 (collateralized by non-U.S. Government debt securities, value $3,257, 0.00% to 10.00%, 5/27/33 to 8/25/46).		3,023		3,023
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $4,031 (collateralized by non-U.S. Government debt securities, value $4,235, 4.91% to 6.31%, 10/25/33 to 8/25/46).		4,030		4,030

64 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2007

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $2,217 (collateralized by non-U.S. Government debt securities, value $2,389, 0.00% to 10.00%, 5/27/33 to 8/25/46).	$	2,217	$	2,217
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $1,209 (collateralized by non-U.S. Government debt securities, value $1,347, 0.00% to 10.00%, 5/27/33 to 2/28/37).		1,209		1,209
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $748 (collateralized by non-U.S. Government debt securities, value $786, 4.52% to 6.89%, 1/15/09 to 10/25/36).		748		748
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $8,464 (collateralized by non-U.S. Government debt securities, value $9,331, 0.00% to 10.00%, 4/1/07 to 12/31/49).		8,463		8,463
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $1,008 (collateralized by non-U.S. Government debt securities, value $1,059, 3.72% to 5.99%, 12/15/36 to 6/1/46).		1,008		1,008
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $504 (collateralized by non-U.S. Government debt securities, value $529, 6.25% to 9.56%, 5/15/11 to 2/1/30).		504		504

Security	Principal		Value
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $2,015 (collateralized by non-U.S. Government debt securities, value $2,117, 1.63% to 14.50%, 5/1/07 to 9/18/37).	$	2,015	$	2,015
Morgan Stanley 5.36%, due 3/1/07, maturity value $2,015 (collateralized by non-U.S. Government debt securities, value $2,118, 0.00% to 10.00%, 3/1/07 to 2/28/37).		2,015		2,015
Morgan Stanley 5.51%, due 2/4/08, maturity value $1,483 (collateralized by non-U.S. Government debt securities, value $1,673, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		1,410		1,410
Wachovia Capital 5.38%, due 3/1/07, maturity value $4,434 (collateralized by non-U.S. Government debt securities, value $4,658, 0.00% to 8.32%, 2/15/08 to 3/15/49).		4,433		4,433
				38,330
TIME DEPOSITSc – 0.00%
Bank of Nova Scotia
5.30%, 03/02/07		845		845
Chase Bank USA N.A.
5.38%, 03/01/07		3,023		3,023
Citibank N.A.
5.47%, 03/01/07		3,023		3,023
Deutsche Bank AG
5.38%, 03/01/07		4,733		4,733
				11,624

SCHEDULES OF INVESTMENTS 65

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2007

Security	Principal		Value
VARIABLE & FLOATING RATE NOTESc– 0.04%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08d	$	5,158	$	5,160
American Express Centurion Bank
5.41%, 07/19/07		2,217		2,218
American Express Credit Corp.
5.42%, 03/05/08		605		605
AmeriCredit Automobile Receivables Trust
5.35%, 03/06/07		92		92
Arkle Master Issuer PLC
Series 2006-1A Class 1A
5.30%, 11/19/07d		1,511		1,511
ASIF Global Financing
5.40%, 05/03/07d		202		202
Australia & New Zealand Banking Group Ltd.
5.32%, 02/22/08d		1,310		1,310
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08d		2,922		2,921
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07d		5,138		5,139
BMW US Capital LLC
5.32%, 01/15/08d		2,015		2,015
BNP Paribas
5.33%, 11/19/07d		3,728		3,728
Brigantine High Grade Funding Ltd.
5.40%, 09/05/07d		1,934		1,934
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07d		1,471		1,471
CC USA Inc.
5.36%, 07/30/07d		1,008		1,008
Commodore CDO Ltd.
5.44%, 12/12/07d		504		504
Credit Agricole SA
5.33%, 11/23/07		2,015		2,015
Credit Suisse First Boston NY
5.36%, 04/24/07		1,008		1,008
Cullinan Finance Corp.
5.36%, 04/25/07d		504		504

Security	Principal		Value
DaimlerChrysler Auto Trust
Series 2006-C Class A1
5.33%, 10/08/07d	$	155	$	155
DEPFA Bank PLC
5.40%, 12/14/07d		2,015		2,015
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07d		2,317		2,317
Eli Lilly Services Inc.
5.31%, 03/01/07d		1,345		1,345
Fifth Third Bancorp
5.32%, 02/22/08d		4,030		4,030
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07d		1,310		1,310
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08d		2,116		2,116
Granite Master Issuer PLC
5.29%, 08/20/07d		7,053		7,053
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07d		2,620		2,620
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		3,023		3,023
HBOS Treasury Services PLC
5.46%, 01/24/08d		2,015		2,015
Holmes Financing PLC
5.29%, 07/16/07d		3,526		3,526
JP Morgan Securities Inc.
5.40%, 11/16/07		4,030		4,030
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08g		5,541		5,541
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07d		1,511		1,511
Kestrel Funding LLC
5.30%, 07/11/07d		806		806
Kommunalkredit Austria AG
5.32%, 02/08/08d		1,209		1,209
Leafs LLC
5.32%, 01/22/08d		1,952		1,952

66 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2007

Security	Principal		Value
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07d	$	2,217	$	2,217
Lothian Mortgages Master Issuer PLC
5.29%, 04/24/07d		710		710
Marshall & Ilsley Bank
5.32%, 02/15/08		1,108		1,108
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d		3,647		3,647
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		2,217		2,217
Metropolitan Life Global Funding I
5.33%, 03/06/08d		3,023		3,023
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07d,g		202		202
Mound Financing PLC
5.29%, 05/08/07d		1,894		1,894
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08d		3,224		3,224
National City Bank of Indiana
5.34%, 05/21/07		1,008		1,008
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08d		6,650		6,651
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08d		2,020		2,020
Northern Rock PLC
5.38%, 02/01/08d		2,418		2,418
Northlake CDO I
5.42%, 09/06/07d		605		604
Pricoa Global Funding I
5.31%, 02/27/08d		2,720		2,720
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07d		2,922		2,922
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		2,015		2,015
Strips III LLC
5.37%, 07/24/07d		410		410
SunTrust Bank
5.29%, 05/01/07		2,015		2,015

Security	Principal		Value
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07d	$	4,917	$	4,916
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07d		3,325		3,325
Wachovia Asset Securitization Inc.
5.31%, 03/25/07d		2,275		2,275
Wachovia Bank N.A.
5.36%, 05/22/07		4,030		4,030
Wal-Mart Stores Inc.
5.50%, 07/16/07d		1,511		1,512
Wells Fargo & Co.
5.33%, 11/15/07d		1,008		1,008
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07d		1,511		1,511
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07d		6,045		6,045
Wind MasterTrust
5.31%, 07/25/07d		806		806
				146,372
TOTAL SHORT-TERM INVESTMENTS (Cost: $363,757)				363,757
TOTAL INVESTMENTS IN SECURITIES – 100.11% (Cost: $331,818,938)				380,027,868
Other Assets, Less Liabilities – (0.11)%				(427,810	)
NET ASSETS – 100.00%			$	379,600,058

^a Non-income earning security.

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

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 67

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.75%
BANKS – 6.66%
Banque Cantonale Vaudoise	1,496	$	708,064
Credit Suisse Group Registered	178,378		12,342,729
Julius Baer Holding AG	22,208		2,802,369
Vontobel Holding AG Registered	35,880		1,712,909
			17,566,071
BUILDING MATERIALS – 3.89%
Geberit AG Registered	1,218		2,008,723
Holcim Ltd. Registered	83,192		8,249,714
			10,258,437
CHEMICALS – 6.33%
Ciba Specialty Chemicals AG Registered	29,774		1,890,742
Clariant AG Registereda	55,982		875,578
Givaudan SA Registered	5,421		4,811,959
Lonza Group AG Registered	13,589		1,207,342
Syngenta AG Registereda	44,905		7,916,841
			16,702,462
COMMERCIAL SERVICES – 1.97%
Adecco SA Registered	39,640		2,638,988
SGS SA Registered	2,262		2,552,437
			5,191,425
COMPUTERS – 0.38%
Logitech International SA Registereda	38,770		1,014,331
			1,014,331
DIVERSIFIED FINANCIAL SERVICES – 10.73%
UBS AG Registered	478,181		28,290,679
			28,290,679
ENGINEERING & CONSTRUCTION – 3.81%
ABB Ltd. Registered	600,464		10,055,264
			10,055,264
FOOD – 13.43%
Nestle SA Registered	95,286		35,424,045
			35,424,045
HAND & MACHINE TOOLS – 0.86%
Schindler Holding AG
Participation Certificates	27,148		1,711,756

Security	Shares	Value
Schindler Holding AG Registered	8,710	$	550,973
			2,262,729
HEALTH CARE - PRODUCTS – 5.70%
Nobel Biocare Holding AG	15,061		4,988,679
Phonak Holding AG Registered	28,932		2,184,352
Straumann Holding AG Registered	7,144		1,876,382
Synthes Inc.	47,915		5,987,413
			15,036,826
INSURANCE – 9.39%
Swiss Reinsurance Co. Registered	139,221		11,856,358
Zurich Financial Services AG Registered	45,179		12,911,457
			24,767,815
LEISURE TIME – 0.05%
Kuoni Reisen Holding AG Registereda	227		130,118
			130,118
MACHINERY – 0.42%
Rieter Holding AG	1,247		629,525
SIG Holding AGa	1,392		467,344
			1,096,869
MANUFACTURING – 0.55%
Sulzer AG Registered	1,190		1,447,060
			1,447,060
PHARMACEUTICALS – 24.00%
Novartis AG Registered	553,828		30,770,742
Roche Holding AG	182,727		32,529,356
			63,300,098
REAL ESTATE – 1.46%
PSP Swiss Property AGa	67,694		3,844,234
			3,844,234
RETAIL – 6.38%
Compagnie Financiere Richemont AG Class A	183,282		10,100,621
Swatch Group (The) AG Class B	16,082		3,921,074
Swatch Group (The) AG Registered	56,980		2,801,874
			16,823,569
SEMICONDUCTORS – 0.34%
OC Oerlikon Corp. AG Registereda	1,803		899,138
			899,138

68 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2007

Security	Principal	Value
TELECOMMUNICATIONS – 2.78%
Swisscom AG Registered	19,513	$	7,318,174
			7,318,174
TRANSPORTATION – 0.62%
Kuehne & Nagel International AG Registered	21,451		1,633,592
			1,633,592
TOTAL COMMON STOCKS (Cost: $206,294,665)			263,062,936
SHORT-TERM INVESTMENTS – 0.06%
MONEY MARKET FUNDS – 0.06%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%b,c	158,908		158,908
			158,908
TOTAL SHORT-TERM INVESTMENTS (Cost: $158,908)			158,908
TOTAL INVESTMENTS IN SECURITIES – 99.81% (Cost: $206,453,573)			263,221,844
Other Assets, Less Liabilities – 0.19%			501,154
NET ASSETS – 100.00%		$	263,722,998

^a Non-income earning security.

^b Affiliated issuer. See Note 2.

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 69

Schedule of Investments (Unaudited)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.60%
ADVERTISING – 0.64%
Aegis Group PLC	298,818	$	835,956
WPP Group PLC	423,617		6,135,056
			6,971,012
AEROSPACE & DEFENSE – 1.79%
BAE Systems PLC	1,155,619		9,868,536
BBA Aviation PLC	144,458		774,283
Cobham PLC	399,438		1,553,855
Meggitt PLC	153,738		1,012,328
Rolls-Royce Group PLCa	635,778		6,120,808
			19,329,810
AGRICULTURE – 2.97%
British American Tobacco PLC	554,815		16,842,257
Gallaher Group PLC	235,921		5,210,641
Imperial Tobacco Group PLC	240,890		10,008,185
			32,061,083
AIRLINES – 0.20%
British Airways PLCa	202,454		2,128,613
			2,128,613
APPAREL – 0.18%
Burberry Group PLC	157,248		1,946,073
			1,946,073
AUTO PARTS & EQUIPMENT – 0.16%
GKN PLC	251,691		1,696,785
TI Automotive Ltd. Class Aa,b	52,283		1
			1,696,786
BANKS – 18.69%
Barclays PLCc	2,332,309		33,823,495
HBOS PLC	1,351,486		28,631,092
HSBC Holdings PLC	4,146,580		72,404,978
Lloyds TSB Group PLC	2,018,014		22,700,569
Royal Bank of Scotland Group PLC	1,130,572		44,512,177
			202,072,311
BEVERAGES – 2.71%
Diageo PLC	978,744		19,267,250
SABMiller PLC	322,075		7,119,784
Scottish & Newcastle PLC	283,842		2,928,706
			29,315,740

Security	Shares	Value
BUILDING MATERIALS – 0.53%
Hanson PLC	256,269	$	4,085,586
Travis Perkins PLC	42,313		1,622,801
			5,708,387
CHEMICALS – 0.58%
Imperial Chemical Industries PLC	429,225		3,879,914
Johnson Matthey PLC	78,038		2,358,257
			6,238,171
COMMERCIAL SERVICES – 1.85%
Aggreko PLC	90,090		767,568
Bunzl PLC	123,213		1,591,266
Capita Group PLC	223,304		2,831,401
Davis Service Group PLC (The)	60,372		611,683
De La Rue PLC	58,500		778,442
Experian Group Ltd.	366,265		4,274,427
Group 4 Securicor PLC	405,522		1,468,248
Hays PLC	519,246		1,506,037
Intertek Group PLC	54,990		929,487
Michael Page International PLC	119,340		1,123,777
Rank Group PLC	206,622		906,025
Rentokil Initial PLC	643,500		1,869,579
Serco Group PLC	166,842		1,395,339
			20,053,279
COMPUTERS – 0.16%
LogicaCMG PLC	524,303		1,741,617
			1,741,617
DISTRIBUTION & WHOLESALE – 0.70%
Inchcape PLC	162,504		1,667,176
Wolseley PLC	235,638		5,906,314
			7,573,490
DIVERSIFIED FINANCIAL SERVICES – 1.85%
AMVESCAP PLC	267,747		3,153,550
Cattles PLC	117,000		995,122
Close Brothers Group PLC	46,566		944,517
Collins Stewart PLCa	79,095		353,415
ICAP PLC	171,756		1,585,380
Investec PLC	123,369		1,489,318
London Stock Exchange Group PLC	56,814		1,405,126
Man Group PLC	643,144		6,919,604
Provident Financial PLC	90,924		1,307,011
Schroders PLC	43,758		942,445
Tullett Prebon PLCa	79,095		961,040
			20,056,528

70 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2007

Security	Shares	Value
ELECTRIC – 3.24%
International Power PLC	535,132	$	3,827,846
National Grid PLC	974,113		14,565,807
Scottish & Southern Energy PLC	307,666		8,664,369
Scottish Power PLC	532,155		7,978,114
			35,036,136
ELECTRONICS – 0.12%
Electrocomponents PLC	153,738		798,413
Premier Farnell PLC	128,232		453,601
			1,252,014
ENGINEERING & CONSTRUCTION – 0.22%
AMEC PLC	118,404		1,071,455
Balfour Beatty PLC	152,409		1,354,530
			2,425,985
ENTERTAINMENT – 0.46%
EMI Group PLC	289,864		1,367,607
Ladbrokes PLC	225,810		1,785,613
PartyGaming PLC	356,578		255,063
William Hill PLC	128,018		1,589,346
			4,997,629
ENVIRONMENTAL CONTROL – 0.08%
Biffa PLC	127,807		813,401
			813,401
FOOD – 4.73%
Cadbury Schweppes PLC	748,477		7,994,212
J Sainsbury PLC	522,990		5,239,953
Tate & Lyle PLC	173,628		1,910,602
Tesco PLC	2,851,498		24,141,124
Unilever PLC	445,792		11,890,252
			51,176,143
FOOD SERVICE – 0.40%
Compass Group PLC	733,707		4,356,783
			4,356,783
GAS – 0.89%
Centrica PLC	1,311,142		9,616,393
			9,616,393
HEALTH CARE - PRODUCTS – 0.40%
Smith & Nephew PLC	334,697		3,889,620
SSL International PLC	66,924		483,631
			4,373,251

Security	Shares	Value
HOLDING COMPANIES - DIVERSIFIED – 0.14%
Tomkins PLC	308,880	$	1,554,179
			1,554,179
HOME BUILDERS – 1.02%
Barratt Developments PLC	86,112		1,987,969
Bellway PLC	40,248		1,166,576
Berkeley Group Holdings (The) PLCa	32,058		956,835
Bovis Homes Group PLC	42,588		868,838
Persimmon PLC	102,048		2,791,840
TaylorWoodrow PLC	204,984		1,633,985
Wimpey (George) PLC	140,868		1,570,816
			10,976,859
HOME FURNISHINGS – 0.05%
Galiform PLCa	210,132		524,023
			524,023
HOUSEHOLD PRODUCTS & WARES – 1.02%
Reckitt Benckiser PLC	219,040		11,006,320
			11,006,320
INSURANCE – 4.91%
Aviva PLC	918,052		14,717,067
Friends Provident PLC	608,166		2,455,218
Legal & General Group PLC	2,337,392		7,168,802
Old Mutual PLC	1,868,022		6,452,259
Prudential PLC	875,425		11,554,661
Resolution PLC	243,935		3,002,164
Royal & Sun Alliance Insurance Group PLC	1,082,718		3,257,050
Standard Life PLCa	756,756		4,471,404
			53,078,625
IRON & STEEL – 0.35%
Corus Group PLC	319,681		3,774,631
			3,774,631
LEISURE TIME – 0.35%
Carnival PLC	60,953		2,896,727
First Choice Holidays PLC	177,138		877,412
			3,774,139
LODGING – 0.28%
InterContinental Hotels Group PLC	128,717		3,027,038
			3,027,038

SCHEDULES OF INVESTMENTS 71

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2007

Security	Shares	Value
MANUFACTURING – 0.85%
Charter PLCa	58,734	$	989,319
Cookson Group PLC	71,761		824,113
FKI PLC	205,920		443,907
IMI PLC	120,603		1,206,576
Invensys PLCa	282,906		1,570,409
Smiths Group PLC	204,203		4,121,924
			9,156,248
MEDIA – 2.74%
British Sky Broadcasting Group PLC	409,266		4,467,469
Daily Mail & General Trust PLC Class A	107,803		1,635,206
Emap PLC	76,050		1,076,807
ITV PLC	1,412,190		3,037,374
Pearson PLC	289,266		4,478,423
Reed Elsevier PLC	452,556		5,263,732
Reuters Group PLC	464,022		3,962,567
Trinity Mirror PLC	108,010		1,038,254
United Business Media PLC	102,886		1,429,563
Yell Group PLC	279,447		3,280,401
			29,669,796
MINING – 6.61%
Anglo American PLC	510,736		24,182,103
BHP Billiton PLC	855,919		17,134,511
Rio Tinto PLC	369,088		19,790,041
Xstrata PLC	219,684		10,311,091
			71,417,746
OIL & GAS – 15.07%
BG Group PLC	1,220,938		16,557,714
BP PLC	6,977,536		71,379,461
Royal Dutch Shell PLC Class A	1,329,625		43,046,702
Royal Dutch Shell PLC Class B	988,666		31,911,254
			162,895,131
PACKAGING& CONTAINERS – 0.19%
Rexam PLC	208,231		2,056,727
			2,056,727
PHARMACEUTICALS – 8.20%
AstraZeneca PLC	550,371		30,890,805
GlaxoSmithKline PLC	2,059,741		57,723,057
			88,613,862

Security	Shares	Value
REAL ESTATE – 2.01%
British Land Co. PLC	186,220	$	5,470,520
Brixton PLC	90,792		869,186
Great Portland Estates PLC	57,330		843,767
Hammerson PLC	101,423		3,054,998
Land Securities Group PLC	167,941		6,773,338
Liberty International PLC	96,642		2,295,457
Slough Estates PLC	167,310		2,437,831
			21,745,097
RETAIL – 3.49%
Alliance Boots PLC	295,452		4,571,300
Carphone Warehouse Group (The) PLC	141,102		821,970
DSG International PLC	651,690		2,183,926
Enterprise Inns PLC	205,959		2,540,839
HMV Group PLC	141,804		386,282
Home Retail Group	311,073		2,578,715
Kesa Electricals PLC	188,136		1,245,283
Kingfisher PLC	847,103		4,175,177
Marks & Spencer Group PLC	606,037		8,016,847
Mitchells & Butlers PLC	148,731		2,068,019
Next PLC	80,964		3,240,025
Punch Taverns PLC	95,499		2,163,502
Signet Group PLC	616,548		1,416,708
Whitbread PLC	71,056		2,294,873
			37,703,466
SEMICONDUCTORS – 0.17%
ARM Holdings PLC	483,779		1,215,920
CSR PLCa	45,972		649,575
			1,865,495
SOFTWARE – 0.29%
Misys PLC	179,478		821,294
Sage Group PLC	459,576		2,314,681
			3,135,975
TELECOMMUNICATIONS – 6.71%
BT Group PLC	2,976,448		17,251,376
Cable & Wireless PLC	882,597		2,849,630
Vodafone Group PLC	18,896,847		52,401,831
			72,502,837

72 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2007

Security	Shares	Value
TRANSPORTATION – 0.44%
Arriva PLC	70,200	$	987,785
FirstGroup PLC	155,458		1,852,326
National Express Group PLC	49,140		1,058,360
Stagecoach Group PLC	286,416		875,634
			4,774,105
VENTURE CAPITAL – 0.33%
3i Group PLC	165,375		3,620,126
			3,620,126
WATER – 0.83%
Kelda Group PLC	127,296		2,225,258
Severn Trent PLC	82,631		2,236,338
United Utilities PLC	314,964		4,490,498
			8,952,094
TOTAL COMMON STOCKS (Cost: $888,384,080)			1,076,765,154
SHORT-TERM INVESTMENTS – 0.04%
MONEY MARKET FUNDS – 0.04%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%c,d	371,087		371,087
			371,087
TOTAL SHORT-TERM INVESTMENTS (Cost: $371,087)			371,087
TOTAL INVESTMENTS IN SECURITIES – 99.64% (Cost: $888,755,167)			1,077,136,241
Other Assets, Less Liabilities – 0.36%			3,942,352
NET ASSETS – 100.00%		$	1,081,078,593

^a Non-income earning security.

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

^c Affiliated issuer. See Note 2.

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 73

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2007

	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	$	350,549,274		$	224,940,604		$	2,008,098,953		$	166,330,060		$	906,627,163		$	194,521,888
Affiliated issuers (Note 2)		16,395			161,525			388,347			88,026			305,433			305,711
Total cost of investments	$	350,565,669		$	225,102,129		$	2,008,487,300		$	166,418,086		$	906,932,596		$	194,827,599
Investments in securities, at value (including securities on loana) (Note 1):
Unaffiliated issuers	$	439,060,259		$	261,040,694		$	2,424,756,945		$	185,273,454		$	1,104,664,965		$	209,197,575
Affiliated issuers (Note 2)		16,395			161,525			388,347			88,026			305,433			305,711
Total value of investments		439,076,654			261,202,219			2,425,145,292			185,361,480			1,104,970,398			209,503,286
Foreign currencies, at valueb		326,545			150,840			1,735,682			79,252			540,786			57,882
Receivables:
Investment securities sold		13,761,663			3,814,940			–			276,389			5,855,902			6,286,539
Dividends and interest		767,816			127,281			2,344,693			343,841			1,484,972			69,891
Capital shares sold		–			–			–			–			16,816			241,914
Total Assets		453,932,678			265,295,280			2,429,225,667			186,060,962			1,112,868,874			216,159,512
LIABILITIES
Payables:
Investment securities purchased		13,397,309			3,841,742			–			271,782			5,475,643			6,479,313
Collateral for securities on loan (Note 5)		3,416,868			–			26,449,832			1,645,321			16,132,620			1,879,008
Capital shares redeemed		–			–			210,249			–			–			56,407
Investment advisory fees (Note 2)		177,574			99,976			968,622			73,946			417,563			86,319
Total Liabilities		16,991,751			3,941,718			27,628,703			1,991,049			22,025,826			8,501,047
NET ASSETS	$	436,940,927		$	261,353,562		$	2,401,596,964		$	184,069,913		$	1,090,843,048		$	207,658,465
Net assets consist of:
Paid-in capital	$	351,832,349		$	227,393,161		$	1,969,068,228		$	163,360,139		$	913,260,620		$	172,911,155
Distributions in excess of net investment income or accumulated net investment loss		(4,497,543	)		(1,300,631	)		(708,965	)		(88,516	)		(971,741	)		(193,729	)
Undistributed net realized gain (accumulated net realized loss)		1,067,790			(847,799	)		16,469,013			1,843,202			(19,553,934	)		20,244,403
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		88,538,331			36,108,831			416,768,688			18,955,088			198,108,103			14,696,636
NET ASSETS	$	436,940,927		$	261,353,562		$	2,401,596,964		$	184,069,913		$	1,090,843,048		$	207,658,465
Shares outstanding		12,200,000			10,240,000			23,150,000			5,400,000			39,600,000			6,300,000
Net asset value per share	$	35.81		$	25.52		$	103.74		$	34.09		$	27.55		$	32.96

^a Securities on loan with market values of $3,253,644, $–, $24,803,314, $1,566,646, $15,352,629 and $1,783,498, respectively. See Note 5.

^b Cost of foreign currencies: $323,952, $148,287, $1,701,761, $78,145, $529,720 and $56,671, respectively.

See notes to financial statements.

74 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2007

	iShares MSCI
	Netherlands Index Fund			Spain Index Fund		Sweden Index Fund			Switzerland Index Fund			United Kingdom Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	162,392,995		$	625,551,758	$	331,733,325		$	206,294,665		$	862,768,157
Affiliated issuers (Note 2)		1,334			168,686		85,613			158,908			25,987,010
Total cost of investments	$	162,394,329		$	625,720,444	$	331,818,938		$	206,453,573		$	888,755,167
Investments in securities, at value
(including securities on loana) (Note 1):
Unaffiliated issuers	$	184,334,671		$	673,392,913	$	379,942,255		$	263,062,936		$	1,042,941,659
Affiliated issuers (Note 2)		1,334			168,686		85,613			158,908			34,194,582
Total value of investments		184,336,005			673,561,599		380,027,868			263,221,844			1,077,136,241
Foreign currencies, at valueb		108,520			624,561		3,794			183,075			1,044,238
Receivables:
Investment securities sold		1,106,985			2,988,695		–			1,662,219			3,192,118
Dividends and interest		625			72,161		1,264			407,305			3,420,459
Total Assets		185,552,135			677,247,016		380,032,926			265,474,443			1,084,793,056
LIABILITIES
Payables:
Investment securities purchased		1,043,793			2,865,803		–			1,647,255			3,217,211
Collateral for securities on loan (Note 5)		1,373,423			14,666,246		278,144			–			–
Capital shares redeemed		–			–		–			–			52,496
Investment advisory fees (Note 2)		76,216			247,121		154,724			104,190			444,756
Total Liabilities		2,493,432			17,779,170		432,868			1,751,445			3,714,463
NET ASSETS	$	183,058,703		$	659,467,846	$	379,600,058		$	263,722,998		$	1,081,078,593
Net assets consist of:
Paid-in capital	$	161,667,689		$	560,271,226	$	338,072,649		$	212,010,904		$	922,853,995
Undistributed (distributions in excess of) net investment income
(accumulated net investment loss)		(822,432	)		2,524,766		141,248			(379,706	)		3,477,686
Undistributed net realized gain
(accumulated net realized loss)		271,326			48,819,111		(6,822,773	)		(4,696,319	)		(33,640,866	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		21,942,120			47,852,743		48,208,934			56,788,119			188,387,778
NET ASSETS	$	183,058,703		$	659,467,846	$	379,600,058		$	263,722,998		$	1,081,078,593
Shares outstanding		6,950,000			12,150,000		12,075,000			10,625,000			46,800,000
Net asset value per share	$	26.34		$	54.28	$	31.44		$	24.82		$	23.10

^a Securities on loan with market values of $1,302,667, $13,922,894, $264,832, $– and $–, respectively. See Note 5.

^b Cost of foreign currencies: $108,077, $613,628, $3,790, $180,009 and $1,043,616, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 75

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2007

	iShares MSCI
	Austria Index Fund			Belgium Index Fund			EMU Index Fund		France Index Fund			Germany Index Fund			Italy Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	63,269		$	252,252		$	8,987,530	$	747,187		$	1,918,057		$	1,290,269
Interest from affiliated issuers (Note 2)		4,599			3,737			31,730		2,529			22,510			4,010
Securities lending income		8,078			1,764			98,397		3,430			36,906			11,232
Total investment income		75,946			257,753			9,117,657		753,146			1,977,473			1,305,511
EXPENSES
Investment advisory fees (Note 2)		1,054,164			545,159			5,456,074		497,046			2,346,357			508,047
Total expenses		1,054,164			545,159			5,456,074		497,046			2,346,357			508,047
Net investment income (loss)		(978,218	)		(287,406	)		3,661,583		256,100			(368,884	)		797,464
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(8,531,898	)		258,344			1,921,412		(803,042	)		(3,340,580	)		(288,801	)
In-kind redemptions		16,894,026			1,349,283			30,239,115		8,765,255			20,133,040			25,824,326
Foreign currency transactions		21,645			5,953			133,803		12,519			12,494			33,034
Net realized gain		8,383,773			1,613,580			32,294,330		7,974,732			16,804,954			25,568,559
Net change in unrealized appreciation (depreciation) on:
Investments		54,177,936			22,879,467			237,642,456		11,435,716			133,619,932			(6,718,332	)
Translation of assets and liabilities in foreign currencies		21,415			2,178			92,738		10,833			48,687			2,082
Net change in unrealized appreciation (depreciation)		54,199,351			22,881,645			237,735,194		11,446,549			133,668,619			(6,716,250	)
Net realized and unrealized gain		62,583,124			24,495,225			270,029,524		19,421,281			150,473,573			18,852,309
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	61,604,906		$	24,207,819		$	273,691,107	$	19,677,381		$	150,104,689		$	19,649,773

^a Net of foreign withholding tax of $11,165, $42,393, $1,505,413, $129,230, $327,648 and $227,695, respectively.

See notes to financial statements.

76 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2007

	iShares MSCI
	Netherlands Index Fund			Spain Index Fund			Sweden Index Fund			Switzerland Index Fund			United Kingdom Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	513,445		$	5,806,404		$	857,181		$	203,684		$	11,555,921
Interest from affiliated issuers (Note 2)		2,508			7,105			5,248			2,525			22,352
Securities lending income		2,167			114,851			6,767			938			–
Total investment income		518,120			5,928,360			869,196			207,147			11,578,273
EXPENSES
Investment advisory fees (Note 2)		476,901			1,255,444			729,211			586,645			2,505,830
Total expenses		476,901			1,255,444			729,211			586,645			2,505,830
Net investment income (loss)		41,219			4,672,916			139,985			(379,498	)		9,072,443
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		294,075			978,022			265,995			385,414			(1,911,821	)
Investments in affiliated issuers (Note 2)		–			–			–			–			397,174
In-kind redemptions		9,267,401			51,428,748			–			2,061,953			10,199,533
Foreign currency transactions		25,239			(7,189	)		(4,713	)		(8,460	)		138,441
Net realized gain		9,586,715			52,399,581			261,282			2,438,907			8,823,327
Net change in unrealized appreciation
(depreciation) on:
Investments		8,980,998			18,650,973			45,516,782			20,251,732			61,486,983
Translation of assets and liabilities in foreign currencies		(595	)		9,971			1,192			10,412			(24,121	)
Net change in unrealized appreciation
(depreciation)		8,980,403			18,660,944			45,517,974			20,262,144			61,462,862
Net realized and unrealized gain		18,567,118			71,060,525			45,779,256			22,701,051			70,286,189
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	18,608,337		$	75,733,441		$	45,919,241		$	22,321,553		$	79,358,632

^a Net of foreign withholding tax of $90,608, $1,006,075, $4,569, $1,812 and $127,221, respectively.

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
	Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	(978,218	)	$	4,573,969		$	(287,406	)	$	3,228,861		$	3,661,583		$	36,506,832
Net realized gain		8,383,773			34,514,511			1,613,580			2,556,361			32,294,330			83,839,198
Net change in unrealized appreciation (depreciation)		54,199,351			(8,534,884	)		22,881,645			12,287,153			237,735,194			101,409,737
Net increase in net assets resulting from operations		61,604,906			30,553,596			24,207,819			18,072,375			273,691,107			221,755,767
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(8,705,133	)		(2,357,719	)		(4,042,358	)		(2,145,588	)		(39,632,440	)		(12,287,252	)
Total distributions to shareholders		(8,705,133	)		(2,357,719	)		(4,042,358	)		(2,145,588	)		(39,632,440	)		(12,287,252	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		47,516,306			289,063,151			92,801,942			103,356,773			445,898,386			1,281,531,733
Cost of shares redeemed		(55,112,541	)		(122,573,813	)		(4,098,051	)		(13,758,909	)		(73,281,076	)		(243,363,438	)
Net increase (decrease) in net assets from capital share transactions		(7,596,235	)		166,489,338			88,703,891			89,597,864			372,617,310			1,038,168,295
INCREASE IN NET ASSETS		45,303,538			194,685,215			108,869,352			105,524,651			606,675,977			1,247,636,810
NET ASSETS
Beginning of period		391,637,389			196,952,174			152,484,210			46,959,559			1,794,920,987			547,284,177
End of period	$	436,940,927		$	391,637,389		$	261,353,562		$	152,484,210		$	2,401,596,964		$	1,794,920,987
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	(4,497,543	)	$	5,185,808		$	(1,300,631	)	$	3,029,133		$	(708,965	)	$	35,261,892
SHARES ISSUED AND REDEEMED
Shares sold		1,300,000			9,400,000			3,720,000			4,880,000			4,400,000			15,050,000
Shares redeemed		(1,700,000	)		(4,200,000	)		(160,000	)		(680,000	)		(700,000	)		(2,900,000	)
Net increase (decrease) in shares outstanding		(400,000	)		5,200,000			3,560,000			4,200,000			3,700,000			12,150,000

See notes to financial statements.

78 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI France Index Fund						iShares MSCI Germany Index Fund						iShares MSCI Italy Index Fund
	Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	256,100		$	2,234,907		$	(368,884	)	$	16,579,393		$	797,464		$	3,283,210
Net realized gain		7,974,732			24,946,517			16,804,954			43,262,838			25,568,559			2,217,054
Net change in unrealized appreciation (depreciation)		11,446,549			(236,936	)		133,668,619			55,951,665			(6,716,250	)		13,029,731
Net increase in net assets resulting from operations		19,677,381			26,944,488			150,104,689			115,793,896			19,649,773			18,529,995
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,600,181	)		(1,093,386	)		(17,227,480	)		(2,745,191	)		(4,310,712	)		(1,062,571	)
Total distributions to shareholders		(2,600,181	)		(1,093,386	)		(17,227,480	)		(2,745,191	)		(4,310,712	)		(1,062,571	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		6,165,897			193,944,708			230,966,831			611,158,486			122,007,074			90,441,632
Cost of shares redeemed		(51,058,945	)		(89,235,841	)		(75,795,586	)		(236,206,028	)		(76,011,384	)		(4,111,384	)
Net increase (decrease) in net assets from capital share transactions		(44,893,048	)		104,708,867			155,171,245			374,952,458			45,995,690			86,330,248
INCREASE (DECREASE)
IN NET ASSETS		(27,815,848	)		130,559,969			288,048,454			488,001,163			61,334,751			103,797,672
NET ASSETS
Beginning of period		211,885,761			81,325,792			802,794,594			314,793,431			146,323,714			42,526,042
End of period	$	184,069,913		$	211,885,761		$	1,090,843,048		$	802,794,594		$	207,658,465		$	146,323,714
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	(88,516	)	$	2,255,565		$	(971,741	)	$	16,624,623		$	(193,729	)	$	3,319,519
SHARES ISSUED AND REDEEMED
Shares sold		200,000			6,800,000			8,700,000			28,500,000			3,750,000			3,300,000
Shares redeemed		(1,600,000	)		(3,200,000	)		(3,000,000	)		(11,100,000	)		(2,250,000	)		(150,000	)
Net increase (decrease) in shares outstanding		(1,400,000	)		3,600,000			5,700,000			17,400,000			1,500,000			3,150,000

See notes to financial statements.

FINANCIAL STATEMENTS 79

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Netherlands Index Fund						iShares MSCI Spain Index Fund						iShares MSCI Sweden Index Fund
	Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	41,219		$	2,460,966		$	4,672,916		$	2,816,735		$	139,985		$	3,522,482
Net realized gain		9,586,715			8,002,115			52,399,581			7,154,162			261,282			18,268,143
Net change in unrealized appreciation (depreciation)		8,980,403			11,681,549			18,660,944			15,105,957			45,517,974			(9,543,135	)
Net increase in net assets resulting from operations		18,608,337			22,144,630			75,733,441			25,076,854			45,919,241			12,247,490
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(3,524,849	)		(1,617,341	)		(4,483,132	)		(1,611,053	)		(3,600,238	)		(1,227,638	)
Total distributions to shareholders		(3,524,849	)		(1,617,341	)		(4,483,132	)		(1,611,053	)		(3,600,238	)		(1,227,638	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		90,698,941			63,102,133			565,223,166			102,462,370			185,854,494			133,924,232
Cost of shares redeemed		(32,715,011	)		(37,612,147	)		(155,135,686	)		(14,743,172	)		–			(55,030,029	)
Net increase in net assets from capital share transactions		57,983,930			25,489,986			410,087,480			87,719,198			185,854,494			78,894,203
INCREASE IN NET ASSETS		73,067,418			46,017,275			481,337,789			111,184,999			228,173,497			89,914,055
NET ASSETS
Beginning of period		109,991,285			63,974,010			178,130,057			66,945,058			151,426,561			61,512,506
End of period	$	183,058,703		$	109,991,285		$	659,467,846		$	178,130,057		$	379,600,058		$	151,426,561
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(822,432	)	$	2,661,198		$	2,524,766		$	2,334,982		$	141,248		$	3,601,501
SHARES ISSUED AND REDEEMED
Shares sold		3,650,000			2,850,000			11,100,000			2,475,000			6,225,000			5,250,000
Shares redeemed		(1,250,000	)		(1,650,000	)		(2,925,000	)		(375,000	)		–			(2,250,000	)
Net increase in shares outstanding		2,400,000			1,200,000			8,175,000			2,100,000			6,225,000			3,000,000

See notes to financial statements.

80 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Switzerland Index Fund						iShares MSCI United Kingdom Index Fund
	Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	(379,498	)	$	1,856,248		$	9,072,443		$	31,286,621
Net realized gain		2,438,907			6,236,495			8,823,327			6,097,571
Net change in unrealized appreciation (depreciation)		20,262,144			25,594,505			61,462,862			85,793,247
Net increase in net assets resulting from operations		22,321,553			33,687,248			79,358,632			123,177,439
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,891,314	)		(773,209	)		(34,304,512	)		(16,085,262	)
Total distributions to shareholders		(1,891,314	)		(773,209	)		(34,304,512	)		(16,085,262	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		61,351,711			94,447,210			192,126,409			344,797,700
Cost of shares redeemed		(6,378,107	)		(18,366,262	)		(28,510,876	)		(44,331,266	)
Net increase in net assets from capital share transactions		54,973,604			76,080,948			163,615,533			300,466,434
INCREASE IN NET ASSETS		75,403,843			108,994,987			208,669,653			407,558,611
NET ASSETS
Beginning of period		188,319,155			79,324,168			872,408,940			464,850,329
End of period	$	263,722,998		$	188,319,155		$	1,081,078,593		$	872,408,940
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period	$	(379,706	)	$	1,891,106		$	3,477,686		$	28,709,755
SHARES ISSUED AND REDEEMED
Shares sold		2,500,000			4,750,000			8,200,000			17,200,000
Shares redeemed		(250,000	)		(875,000	)		(1,200,000	)		(2,200,000	)
Net increase in shares outstanding		2,250,000			3,875,000			7,000,000			15,000,000

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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	31.08		$	26.62		$	17.04		$	10.61		$	8.19		$	8.18
Income from investment operations:
Net investment income (loss)a		(0.08	)		0.44			0.29			0.21			0.09			0.13
Net realized and unrealized gain (loss)b		5.54			4.31			9.38			6.39			2.43			(0.12	)
Total from investment operations		5.46			4.75			9.67			6.60			2.52			0.01
Less distributions from:
Net investment income		(0.73	)		(0.29	)		(0.09	)		(0.17	)		(0.10	)		–
Total distributions		(0.73	)		(0.29	)		(0.09	)		(0.17	)		(0.10	)		–
Net asset value, end of period	$	35.81		$	31.08		$	26.62		$	17.04		$	10.61		$	8.19
Total return		17.53	%c		18.00	%		56.82	%		62.70	%		31.15	%		0.12	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	436,941		$	391,637		$	196,952		$	57,920		$	22,288		$	14,740
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.77	%		0.84	%		0.84	%
Ratio of net investment income (loss) to average net assetsd		(0.48	)%		1.48	%		1.26	%		1.37	%		0.98	%		1.57	%
Portfolio turnover ratee		7	%		32	%		21	%		11	%		26	%		32	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

82 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	22.83		$	18.94		$	14.77		$	11.16		$	10.43		$	11.81
Income from investment operations:
Net investment income (loss)a		(0.03	)		0.75			0.71			0.37			0.41			0.25
Net realized and unrealized gain (loss)b		3.16			3.95			3.75			4.25			0.43			(1.56	)
Total from investment operations		3.13			4.70			4.46			4.62			0.84			(1.31	)
Less distributions from:
Net investment income		(0.44	)		(0.81	)		(0.29	)		(1.01	)		(0.11	)		(0.07	)
Total distributions		(0.44	)		(0.81	)		(0.29	)		(1.01	)		(0.11	)		(0.07	)
Net asset value, end of period	$	25.52		$	22.83		$	18.94		$	14.77		$	11.16		$	10.43
Total return		13.72	%c		25.66	%		30.22	%		42.88	%		8.25	%		(11.10	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	261,354		$	152,484		$	46,960		$	24,813		$	21,871		$	10,427
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.78	%		0.84	%		0.84	%
Ratio of net investment income (loss) to average net assetsd		(0.28	)%		3.60	%		3.89	%		2.79	%		4.10	%		2.26	%
Portfolio turnover ratee		5	%		10	%		10	%		21	%		8	%		18	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	92.28		$	74.97		$	59.38		$	50.12		$	46.02		$	56.74
Income from investment operations:
Net investment incomea		0.17			2.73			1.76			1.36			0.93			0.75
Net realized and unrealized gain (loss)b		13.14			15.90			15.13			8.69			3.62			(11.47	)
Total from investment operations		13.31			18.63			16.89			10.05			4.55			(10.72	)
Less distributions from:
Net investment income		(1.85	)		(1.32	)		(1.30	)		(0.79	)		(0.45	)		–
Total distributions		(1.85	)		(1.32	)		(1.30	)		(0.79	)		(0.45	)		–
Net asset value, end of period	$	103.74		$	92.28		$	74.97		$	59.38		$	50.12		$	46.02
Total return		14.45	%c		25.18	%		28.54	%		20.07	%		10.05	%		(18.89	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,401,597		$	1,794,921		$	547,284		$	326,606		$	165,388		$	131,168
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.58	%		0.79	%		0.84	%		0.84	%
Ratio of expenses to average net assets exclusive of foreign taxesd		n/a			n/a			0.57	%		0.79	%		n/a			n/a
Ratio of net investment income to average net assetsd		0.35	%		3.23	%		2.50	%		2.29	%		2.08	%		1.44	%
Portfolio turnover ratee		1	%		8	%		8	%		11	%		7	%		3	%

^a Based on average shares outstanding throughout each period.

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

^c 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 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	31.16		$	25.41		$	20.40		$	16.90		$	15.52		$	19.53
Income from investment operations:
Net investment incomea		0.04			0.55			0.47			0.24			0.23			0.18
Net realized and unrealized gain (loss)b		3.35			5.52			4.84			3.54			1.33			(4.19	)
Total from investment operations		3.39			6.07			5.31			3.78			1.56			(4.01	)
Less distributions from:
Net investment income		(0.46	)		(0.32	)		(0.30	)		(0.28	)		(0.18	)		–
Total distributions		(0.46	)		(0.32	)		(0.30	)		(0.28	)		(0.18	)		–
Net asset value, end of period	$	34.09		$	31.16		$	25.41		$	20.40		$	16.90		$	15.52
Total return		10.90	%c		24.13	%		26.13	%		22.44	%		10.22	%		(20.53	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	184,070		$	211,886		$	81,326		$	61,201		$	54,075		$	49,674
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.79	%		0.84	%		0.84	%
Ratio of net investment income to average net assetsd		0.27	%		1.95	%		1.98	%		1.23	%		1.56	%		1.00	%
Portfolio turnover ratee		2	%		10	%		7	%		9	%		9	%		3	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	23.68		$	19.08		$	14.96		$	12.57		$	12.07		$	15.19
Income from investment operations:
Net investment income (loss)a		(0.01	)		0.57			0.28			0.19			0.21			0.11
Net realized and unrealized gain (loss)b		4.39			4.15			4.03			2.40			0.41			(3.23	)
Total from investment operations		4.38			4.72			4.31			2.59			0.62			(3.12	)
Less distributions from:
Net investment income		(0.51	)		(0.12	)		(0.19	)		(0.20	)		(0.12	)		–
Total distributions		(0.51	)		(0.12	)		(0.19	)		(0.20	)		(0.12	)		–
Net asset value, end of period	$	27.55		$	23.68		$	19.08		$	14.96		$	12.57		$	12.07
Total return		18.55	%c		24.82	%		28.89	%		20.55	%		5.39	%		(20.54	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,090,843		$	802,795		$	314,793		$	98,764		$	101,800		$	94,160
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.80	%		0.84	%		0.84	%
Ratio of net investment income (loss) to average net assetsd		(0.08	)%		2.62	%		1.54	%		1.27	%		1.98	%		0.77	%
Portfolio turnover ratee		2	%		12	%		9	%		9	%		11	%		9	%

^a Based on average shares outstanding throughout each period.

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

^c 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 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	30.48		$	25.77		$	20.21		$	16.67		$	15.15		$	17.79
Income from investment operations:
Net investment incomea		0.13			1.07			0.78			0.56			0.43			0.37
Net realized and unrealized gain (loss)b		3.02			4.15			5.42			3.59			1.47			(3.01	)
Total from investment operations		3.15			5.22			6.20			4.15			1.90			(2.64	)
Less distributions from:
Net investment income		(0.67	)		(0.51	)		(0.64	)		(0.61	)		(0.38	)		–
Total distributions		(0.67	)		(0.51	)		(0.64	)		(0.61	)		(0.38	)		–
Net asset value, end of period	$	32.96		$	30.48		$	25.77		$	20.21		$	16.67		$	15.15
Total return		10.32	%c		20.61	%		30.74	%		25.09	%		12.79	%		(14.84	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	207,658		$	146,324		$	42,526		$	27,279		$	29,997		$	29,538
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.83	%		0.84	%		0.84	%
Ratio of expenses to average net assets exclusive of foreign taxesd		n/a			n/a			n/a			0.79	%		n/a			n/a
Ratio of net investment income to average net assetsd		0.82	%		3.87	%		3.18	%		2.85	%		2.84	%		2.34	%
Portfolio turnover ratee		5	%		15	%		18	%		9	%		22	%		10	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	24.17		$	19.10		$	15.70		$	14.31		$	14.69		$	18.59
Income from investment operations:
Net investment incomea		0.01			0.60			0.57			0.39			0.30			0.25
Net realized and unrealized gain (loss)b		2.61			4.95			3.09			1.37			(0.43	)		(4.11	)
Total from investment operations		2.62			5.55			3.66			1.76			(0.13	)		(3.86	)
Less distributions from:
Net investment income		(0.45	)		(0.48	)		(0.26	)		(0.37	)		(0.25	)		(0.04	)
Total distributions		(0.45	)		(0.48	)		(0.26	)		(0.37	)		(0.25	)		(0.04	)
Net asset value, end of period	$	26.34		$	24.17		$	19.10		$	15.70		$	14.31		$	14.69
Total return		10.87	%c		29.53	%		23.40	%		12.28	%		(0.78	)%		(20.79	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	183,059		$	109,991		$	63,974		$	28,265		$	18,599		$	19,103
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.78	%		0.84	%		0.84	%
Ratio of net investment income to average net assetsd		0.05	%		2.78	%		3.13	%		2.45	%		2.37	%		1.48	%
Portfolio turnover ratee		3	%		17	%		6	%		9	%		18	%		15	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

88 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	44.81		$	35.70		$	27.55		$	22.39		$	17.95		$	21.33
Income from investment operations:
Net investment incomea		0.50			1.07			0.79			0.44			0.24			0.17
Net realized and unrealized gain (loss)b		9.35			8.78			7.97			4.99			4.36			(3.55	)
Total from investment operations		9.85			9.85			8.76			5.43			4.60			(3.38	)
Less distributions from:
Net investment income		(0.38	)		(0.74	)		(0.61	)		(0.27	)		(0.16	)		–
Total distributions		(0.38	)		(0.74	)		(0.61	)		(0.27	)		(0.16	)		–
Net asset value, end of period	$	54.28		$	44.81		$	35.70		$	27.55		$	22.39		$	17.95
Total return		21.99	%c		28.09	%		31.85	%		24.28	%		25.81	%		(15.85	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	659,468		$	178,130		$	66,945		$	45,456		$	50,372		$	18,850
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.80	%		0.84	%		0.84	%
Ratio of net investment income to average net assetsd		1.94	%		2.67	%		2.33	%		1.64	%		1.22	%		0.85	%
Portfolio turnover ratee		6	%		6	%		8	%		6	%		17	%		14	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	25.88		$	21.58		$	16.82		$	12.59		$	9.88		$	12.88
Income from investment operations:
Net investment incomea		0.02			0.76			0.46			0.28			0.25			0.12
Net realized and unrealized gain (loss)b		5.88			3.96			4.45			4.20			2.58			(3.12	)
Total from investment operations		5.90			4.72			4.91			4.48			2.83			(3.00	)
Less distributions from:
Net investment income		(0.34	)		(0.42	)		(0.15	)		(0.25	)		(0.12	)		–
Total distributions		(0.34	)		(0.42	)		(0.15	)		(0.25	)		(0.12	)		–
Net asset value, end of period	$	31.44		$	25.88		$	21.58		$	16.82		$	12.59		$	9.88
Total return		22.79	%c		22.16	%		29.21	%		35.81	%		29.04	%		(23.29	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	379,600		$	151,427		$	61,513		$	27,758		$	16,992		$	8,154
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.58	%		0.92	%		0.84	%		0.84	%
Ratio of expenses to average net assets exclusive of foreign taxesd		n/a			n/a			0.57	%		0.79	%		n/a			n/a
Ratio of net investment income to average net assetsd		0.10	%		3.13	%		2.28	%		1.74	%		2.44	%		0.98	%
Portfolio turnover ratee		2	%		14	%		6	%		9	%		12	%		31	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

90 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	22.49		$	17.63		$	14.58		$	12.23		$	11.59		$	12.95
Income from investment operations:
Net investment income (loss)a		(0.04	)		0.27			0.22			0.09			0.05			0.03
Net realized and unrealized gain (loss)b		2.56			4.71			2.92			2.31			0.62			(1.38	)
Total from investment operations		2.52			4.98			3.14			2.40			0.67			(1.35	)
Less distributions from:
Net investment income		(0.19	)		(0.12	)		(0.09	)		(0.05	)		(0.03	)		(0.01	)
Total distributions		(0.19	)		(0.12	)		(0.09	)		(0.05	)		(0.03	)		(0.01	)
Net asset value, end of period	$	24.82		$	22.49		$	17.63		$	14.58		$	12.23		$	11.59
Total return		11.22	%c		28.36	%		21.54	%		19.56	%		5.89	%		(10.47	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	263,723		$	188,319		$	79,324		$	41,920		$	33,643		$	31,883
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.79	%		0.84	%		0.84	%
Ratio of net investment income (loss) to average net assetsd		(0.34	)%		1.34	%		1.34	%		0.64	%		0.43	%		0.20	%
Portfolio turnover ratee		3	%		11	%		5	%		4	%		10	%		12	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	21.92		$	18.74		$	15.72		$	13.00		$	12.77		$	15.11
Income from investment operations:
Net investment incomea		0.22			0.97			0.60			0.48			0.39			0.48
Net realized and unrealized gain (loss)b		1.77			2.79			2.76			2.72			0.12			(2.60	)
Total from investment operations		1.99			3.76			3.36			3.20			0.51			(2.12	)
Less distributions from:
Net investment income		(0.81	)		(0.58	)		(0.34	)		(0.48	)		(0.28	)		(0.22	)
Total distributions		(0.81	)		(0.58	)		(0.34	)		(0.48	)		(0.28	)		(0.22	)
Net asset value, end of period	$	23.10		$	21.92		$	18.74		$	15.72		$	13.00		$	12.77
Total return		9.08	%c		20.61	%		21.53	%		24.77	%		4.20	%		(14.19	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,081,079		$	872,409		$	464,850		$	452,870		$	150,809		$	120,067
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.77	%		0.84	%		0.84	%
Ratio of net investment income to average net assetsd		1.89	%		4.81	%		3.39	%		3.11	%		3.23	%		3.39	%
Portfolio turnover ratee		3	%		10	%		11	%		6	%		6	%		14	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

92 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

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, 2007, 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 that market’s equity securities index compiled by Morgan Stanley Capital International Inc. (“MSCI”). The investment adviser uses a “passive” or index approach to achieve each Fund’s investment objective. Each of the Funds is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold securities of fewer companies than diversified funds and may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.

Each Fund invests in the securities of 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; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets and the risk of war.

Pursuant to the 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.

1. SIGNIFICANT ACCOUNTING POLICIES

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 the financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

SECURITY VALUATION

The securities and other assets of each Fund are generally valued using market valuations. A market valuation generally means a valuation (i) obtained from an exchange, a pricing service or a major market maker (or dealer), (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker (or dealer) or (iii) based on amortized cost. In the case of shares of funds that are not traded on an exchange, a market valuation means such fund’s published net asset value per share. The investment adviser may use various pricing services or discontinue the use of any pricing service. A price obtained from a pricing

NOTES TO FINANCIAL STATEMENTS 93

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

service based on such pricing service’s valuation matrix may be considered a market valuation. In the event that current market valuations are not readily available or such valuations do not reflect current market values, the affected investments will be valued using fair value pricing pursuant to the pricing policy and procedures approved by the Board of 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, net of any foreign taxes withheld at source, 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. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Any use of a rate different from the rates used by MSCI may adversely affect a Fund’s ability to track its underlying index. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

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

FOREIGN TAXES

Certain countries may levy taxes on stock dividends (based on the par value of the stock dividends received) and other taxable corporate events (i.e. spin-offs and tender offers) by companies whose securities are held by the Funds. These foreign taxes, if any, are paid by the Funds receiving the stock dividends or holding the securities subject to the taxable corporate event, and are disclosed in their respective Statements 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 capital gains, if any, generally are declared and distributed once a year. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

The tax character of current year distributions will be determined at the end of the current fiscal year.

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, 2007.

94 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The Funds had tax basis net capital loss carryforwards as of August 31, 2006, the tax year-end of the Funds, as follows:

iShares MSCI Index Fund	Expiring 2008		Expiring 2009		Expiring 2010		Expiring 2011		Expiring 2012		Expiring 2013		Expiring 2014		Total
Austria	$	491,457	$	336,553	$	1,291,324	$	370,948	$	855,364	$	–	$	–	$	3,345,646
Belgium		–		59,876		1,677,678		117,767		175,781		33,969		–		2,065,071
EMU		–		–		–		–		4,037,607		1,873,963		–		5,911,570
France		–		–		2,436,748		236,944		2,400,550		–		–		5,074,242
Germany		–		–		8,697,227		5,469,732		8,656,712		2,241,687		–		25,065,358
Italy		–		–		2,675,493		848,408		541,980		527,327		–		4,593,208
Netherlands		–		60,885		3,222,792		1,497,810		2,481,175		129,137		403,525		7,795,324
Spain		–		–		1,083,394		678,910		1,582,094		–		–		3,344,398
Sweden		–		89,443		3,350,244		1,577,551		1,149,514		–		107,613		6,274,365
Switzerland		–		–		2,501,682		1,018,305		2,149,171		354,252		–		6,023,410
United Kingdom		–		–		9,945,254		6,448,554		4,272,059		1,517,783		7,063,063		29,246,713

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

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

Each Fund reclassifies at the end of its tax year certain amounts to paid-in-capital from accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss), respectively, as a result of permanent book and tax differences primarily attributed to net investment loss, return of capital, passive foreign investment companies, realized foreign currency gains and losses and gains and losses on in-kind redemptions. These reclassifications have no effect on net assets or net asset values per share.

As of February 28, 2007, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares MSCI Index Fund	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation
Austria	$	358,787,664	$	80,288,990	$	–		$	80,288,990
Belgium		226,290,307		35,226,144		(314,232	)		34,911,912
EMU		2,020,521,323		409,457,277		(4,833,308	)		404,623,969
France		167,827,791		22,158,486		(4,624,797	)		17,533,689
Germany		918,282,305		190,333,837		(3,645,744	)		186,688,093
Italy		195,922,841		13,713,739		(133,294	)		13,580,445
Netherlands		164,059,273		20,438,897		(162,165	)		20,276,732
Spain		626,219,009		48,106,613		(764,023	)		47,342,590
Sweden		332,676,281		51,116,776		(3,765,189	)		47,351,587
Switzerland		207,415,307		55,888,215		(81,678	)		55,806,537
United Kingdom		902,494,814		175,889,385		(1,247,958	)		174,641,427

NOTES TO FINANCIAL STATEMENTS 95

Notes to 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.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Company, Barclays Global Fund Advisors (“BGFA”) manages the investment of each Fund’s assets. BGFA is a California corporation indirectly owned by Barclays Bank PLC. Under the Investment Advisory Agreement, BGFA is responsible for all expenses (“Covered Expenses”) of 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 of the average daily 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 Average Daily Net Assets
0.59%	First $7 billion
0.54	Over $7 billion, up to and including $11 billion
0.49	Over $11 billion, up to and including $24 billion
0.44	Over $24 billion

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 and expenses are Covered Expenses as defined above.

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

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SEC”), the Funds are permitted to lend portfolio securities to Barclays Capital Inc. (“BarCap”). Pursuant to the same exemptive order, Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Company. BarCap and BGI are affiliates of BGFA, the Funds’ investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 28, 2007, BGI earned securities lending agent fees as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees
Austria	$	8,078
Belgium		1,764
EMU		98,397
France		3,430
Germany		36,906

iShares MSCI Index Fund	Securities Lending Agent Fees
Italy	$	11,232
Netherlands		2,167
Spain		114,851
Sweden		6,767
Switzerland		938

96 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Cross trades for the six months ended February 28, 2007, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (oran affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

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

The following table provides information about the direct investment by the iShares MSCI United Kingdom Index Fund (exclusive of short-term investments) in issuers of which BGFA is an affiliate, for the six months ended February 28, 2007.

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		Net Realized Gain
Barclays PLC	1,993	476	137	2,332	$	33,823,495	$	397,174

As of February 28, 2007, certain directors and officers of the Company are also officers of BGI and/or BGFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2007, were as follows:

iShares MSCI Index Fund	Purchases		Sales
Austria	$	28,585,520	$	39,199,971
Belgium		10,943,538		12,463,225
EMU		20,315,401		49,512,133
France		3,210,459		5,835,355
Germany		15,037,270		32,183,984
Italy		9,942,047		11,637,638
Netherlands		7,507,717		5,553,099
Spain		28,960,239		27,647,446
Sweden		4,872,074		7,539,197
Switzerland		6,176,292		6,190,781
United Kingdom		28,188,454		48,120,651

NOTES TO FINANCIAL STATEMENTS 97

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

In-kind transactions (see Note 4) for the six months ended February 28, 2007, were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Austria	$	47,330,510	$	54,404,331
Belgium		90,572,280		4,033,185
EMU		442,361,517		72,984,832
France		6,153,594		50,716,956
Germany		230,414,177		75,665,322
Italy		119,952,685		75,898,004
Netherlands		85,599,639		32,666,832
Spain		563,289,769		154,839,196
Sweden		185,349,201		–
Switzerland		59,111,576		6,317,462
United Kingdom		191,118,557		28,407,643

4. CAPITAL SHARE TRANSACTIONS

The Company is authorized to issue 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
Austria	19,800,000
Belgium	136,200,000
EMU	500,000,000
France	340,200,000
Germany	382,200,000
Italy	63,600,000

iShares MSCI Index Fund	Authorized Shares
Netherlands	255,000,000
Spain	127,800,000
Sweden	63,600,000
Switzerland	318,625,000
United Kingdom	943,200,000

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. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to Investors Bank, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the market

98 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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

As of February 28, 2007, certain Funds had loaned securities which were collateralized by cash. Pursuant to an exemptive order issued by the SEC, the cash collateral received was invested in a joint account with other investment funds managed by BGFA. The joint account invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds, including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities or non-U.S. Government debt securities. The market value of the securities on loan as of February 28, 2007 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, as disclosed in the Funds’ Statements of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to BGI as securities lending agent.

6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

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

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

NOTES TO FINANCIAL STATEMENTS 99

Notes:

100 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

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

iShares S&P Domestic Index Funds

iShares S&P 1500 (ISI)

iShares S&P 100 (OEF)

iShares S&P 500 (IVV)

iShares S&P 500 Growth (IVW)

iShares S&P 500 Value (IVE)

iShares S&P MidCap 400 (IJH)

iShares S&P MidCap 400 Growth (IJK)

iShares S&P MidCap 400 Value (IJJ)

iShares S&P SmallCap 600 (IJR)

iShares S&P SmallCap 600 Growth (IJT)

iShares S&P SmallCap 600 Value (IJS)

iShares Domestic Sector Index Funds

iShares Cohen & Steers Realty Majors (ICF)

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

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

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

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

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

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

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

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

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

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

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

iShares Dow Jones Transportation Average (IYT)

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

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

iShares 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 Nasdaq Biotechnology (IBB)

iShares Domestic Subsector Index Funds

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

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

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

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

iShares Dow Jones U.S. Insurance (IAK)

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

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

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

iShares Dow Jones U.S. Pharmaceuticals (IHE)

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

iShares Global Index Funds

iShares S&P Global 100 (IOO)

iShares S&P Global Consumer Discretionary Sector (RXI)

iShares S&P Global Consumer Staples Sector (KXI)

iShares S&P Global Energy Sector (IXC)

iShares S&P Global Financials Sector (IXG)

iShares S&P Global Healthcare Sector (IXJ)

iShares S&P Global Industrials Sector (EXI)

iShares S&P Global Materials Sector (MXI)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares S&P Global Utilities Sector (JXI)

iShares Russell Index Funds

iShares Russell 3000 (IWV)

iShares Russell 3000 Growth (IWZ)

iShares Russell 3000 Value (IWW)

iShares Russell 1000 (IWB)

iShares Russell 1000 Growth (IWF)

iShares Russell 1000 Value (IWD)

iShares Russell Midcap (IWR)

iShares Russell Midcap Growth (IWP)

iShares Russell Midcap Value (IWS)

iShares Russell 2000 (IWM)

iShares Russell 2000 Growth (IWO)

iShares Russell 2000 Value (IWN)

iShares Russell Microcap^™ (IWC)

iShares International Country Index Funds

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria (EWO)

iShares MSCI Belgium (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Malaysia (EWM)

iShares MSCI Mexico (EWW)

iShares MSCI Netherlands (EWN)

iShares MSCI Singapore (EWS)

iShares MSCI South Africa (EZA)

iShares MSCI South Korea (EWY)

iShares MSCI Spain (EWP)

iShares MSCI Sweden (EWD)

iShares MSCI Switzerland (EWL)

iShares MSCI Taiwan (EWT)

iShares MSCI United Kingdom (EWU)

iShares S&P/TOPIX 150 (ITF)

iShares Bond Funds

iShares Lehman Aggregate (AGG)

iShares Lehman Short Treasury (SHV)

iShares Lehman 1-3 Year Treasury (SHY)

iShares Lehman 3-7 Year Treasury (IEI)

iShares Lehman 7-10 Year Treasury (IEF)

iShares Lehman 10-20 Year Treasury (TLH)

iShares Lehman 20+ Year Treasury (TLT)

iShares Lehman TIPS (TIP)

iShares Lehman Credit (CFT)

iShares Lehman 1-3 Year Credit (CSJ)

iShares Lehman Intermediate Credit (CIU)

iShares iBoxx $ Investment Grade Corporate (LQD)

iShares Lehman Government/Credit (GBF)

iShares Lehman Intermediate Government/Credit (GVI)

iShares Lehman MBS Fixed-Rate (MBB)

iShares iBoxx $ High Yield Corporate (HYG)

iShares Specialty Index Funds

iShares KLD Select Social^SM (KLD)

iShares KLD 400 Social (DSI)

iShares Dow Jones Select Dividend (DVY)

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

iShares International Index Funds

iShares MSCI EAFE (EFA)

iShares MSCI EAFE Growth (EFG)

iShares MSCI EAFE Value (EFV)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI Pacific ex-Japan (EPP)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

iShares NYSE Index Funds

iShares NYSE Composite (NYC)

iShares NYSE 100 (NY)

iShares^® is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by 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 (“FXI”), iBoxx, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The Nasdaq Stock Market, Inc., New York Stock Exchange LLC, Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. iBoxx is a registered trademark of International Index Company Limited. “Goldman Sachs^®” is a trademark of Goldman, Sachs & Co. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. “FTSE” is a trade and service mark of London Stock Exchange and The Financial Times; “Xinhua” is a trade and service mark of Xinhua Financial Network Limited.

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 2007 Semi-Annual Report.

4322-iS-0407

102 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overviews	1
Shareholder Expenses	13
Schedules of Investments	15
iShares MSCI Australia Index Fund	15
iShares MSCI Brazil Index Fund	22
iShares MSCI Canada Index Fund	25
iShares MSCI Emerging Markets Index Fund	28
iShares MSCI Hong Kong Index Fund	39
iShares MSCI Malaysia Index Fund	46
iShares MSCI Mexico Index Fund	48
iShares MSCI Pacific ex-Japan Index Fund	54
iShares MSCI Singapore Index Fund	62
iShares MSCI South Africa Index Fund	68
iShares MSCI South Korea Index Fund	70
iShares MSCI Taiwan Index Fund	78
Financial Statements	81
Financial Highlights	89
Notes to Financial Statements	101
iShares Family of Funds	110

Fund Performance Overview

iSHARES^® MSCI AUSTRALIA INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Australia Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 18.89%, while the Index returned 18.66%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
29.18%	29.74%	28.60%	25.15%	25.11%	24.64%	12.09%	12.10%	12.22%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
29.18%	29.74%	28.60%	206.97%	206.58%	200.81%	213.17%	213.38%	216.73%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	48.87	%
Basic Materials	16.60
Consumer Non-Cyclical	11.68
Industrial	8.91
Consumer Cyclical	4.98
Energy	3.56
Communications	2.71
Utilities	1.49
Technology	0.48
Short-Term and Other Net Assets	0.72
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
BHP Billiton Ltd.	10.05	%
National Australia Bank Ltd.	6.96
Commonwealth Bank of Australia	6.82
Australia & New Zealand Banking Group Ltd.	5.71
Westpac Banking Corp.	4.97
Westfield Group	3.47
Woolworths Ltd.	3.47
QBE Insurance Group Ltd.	2.73
Rio Tinto Ltd.	2.29
Brambles Ltd.	2.18
TOTAL	48.65	%

FUND PERFORMANCE OVERVIEWS 1

Fund Performance Overview

iSHARES^® MSCI BRAZIL INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Brazil Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 19.57%, while the Index returned 19.84%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
10.99%	13.44%	11.92%	30.60%	29.89%	33.08%	15.91%	15.90%	18.42%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
10.99%	13.44%	11.92%	279.98%	269.68%	317.36%	166.54%	166.41%	207.29%

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.

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

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Basic Materials	29.58	%
Energy	22.35
Financial	17.21
Consumer Non-Cyclical	8.90
Utilities	7.39
Communications	6.18
Industrial	4.95
Consumer Cyclical	2.87
Short-Term and Other Net Assets	0.57
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Petroleo Brasileiro SA Preferred	12.37	%
Companhia Vale do Rio Doce Class A Preferred	11.09
Petroleo Brasileiro SA	9.98
Companhia Vale do Rio Doce ADR	9.01
Banco Bradesco SA Preferred	6.86
Banco Itau Holding Financeira SA Preferred	4.73
Unibanco Uniao de Bancos
Brasileiros SA	4.28
Companhia de Bebidas das Americas Preferred	4.24
Gerdau SA Preferred	2.29
Usinas Siderurgicas de Minas Gerais SA Class A Preferred	2.00
TOTAL	66.85	%

2 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI CANADA INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Canada Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 4.03%, while the Index returned 4.20%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
10.42%	10.62%	10.77%	20.08%	20.03%	20.51%	12.24%	12.29%	12.77%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
10.42%	10.62%	10.77%	149.62%	149.16%	154.21%	217.18%	218.76%	232.70%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	31.12	%
Energy	27.10
Basic Materials	17.65
Communications	6.80
Industrial	5.16
Consumer Cyclical	3.80
Technology	3.15
Diversified	2.26
Consumer Non-Cyclical	2.06
Utilities	0.69
Short-Term and Other Net Assets	0.21
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Royal Bank of Canada	6.23	%
Manulife Financial Corp.	5.45
Bank of Nova Scotia	4.52
EnCana Corp.	4.11
Suncor Energy Inc.	3.43
Bank of Montreal	3.19
Canadian Imperial Bank of Commerce	3.04
Canadian Natural Resources Ltd.	2.85
Barrick Gold Corp.	2.71
Sun Life Financial Inc.	2.60
TOTAL	38.13	%

FUND PERFORMANCE OVERVIEWS 3

Fund Performance Overview

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

Performance as of February 28, 2007

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 Index is designed to measure equity market performance in the global emerging markets. The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 16.09%, while the Index returned 16.61%.

Average Annual Total Returns
Year Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX
15.87%	17.32%	17.05%	37.36%	37.54%	37.17%

Cumulative Total Returns
Inception to 2/28/07
NAV	MARKET	INDEX
244.75%	246.51%	243.02%

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.

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

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	20.37	%
Energy	14.96
Communications	13.77
Basic Materials	13.52
Technology	10.58
Industrial	9.86
Utilities	4.67
Consumer Cyclical	4.56
Consumer Non-Cyclical	4.47
Diversified	2.46
Exchange-Traded Funds	0.55
Short-Term and Other Net Assets	0.23
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Samsung Electronics Co. Ltd. GDR (South Korea)	4.15	%
OAO Gazprom ADR (Russia)	4.10
Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan)	3.67
POSCO ADR (South Korea)	3.40
Kookmin Bank ADR (South Korea)	2.95
Siliconware Precision Industries Co. ADR (Taiwan)	2.24
LUKOIL ADR (Russia)	1.98
Chunghwa Telecom Co. Ltd. Sponsored ADR (Taiwan)	1.95
United Microelectronics Corp. ADR (Taiwan)	1.94
China Mobile Ltd. (Hong Kong)	1.92
TOTAL	28.30	%

4 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI HONG KONG INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Hong Kong Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 14.13%, while the Index returned 14.46%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
21.57%	20.62%	22.15%	15.25%	14.98%	16.22%	3.48%	3.35%	5.17%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
21.57%	20.62%	22.15%	103.32%	100.95%	112.01%	40.79%	39.04%	65.57%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	45.63	%
Diversified	16.11
Utilities	12.38
Consumer Cyclical	11.98
Industrial	6.68
Communications	5.48
Basic Materials	1.02
Technology	0.64
Short-Term and Other Net Assets	0.08
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Hutchison Whampoa Ltd.	8.92	%
Cheung Kong (Holdings) Ltd.	8.10
Sun Hung Kai Properties Ltd.	7.14
CLP Holdings Ltd.	5.84
Hong Kong Exchanges & Clearing Ltd.	4.83
Esprit Holdings Ltd.	4.77
Swire Pacific Ltd. Class A	4.65
Hang Seng Bank Ltd.	4.60
BOC Hong Kong Holdings Ltd.	3.96
Bank of East Asia Ltd.	3.65
TOTAL	56.46	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI MALAYSIA INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Malaysia Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities included in the Index. For the six-month period ended February 28, 2007, the Fund returned 33.96%, while the Index returned 34.66%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
41.64%	38.66%	42.67%	16.06%	15.60%	17.18%	(1.75)%	(2.01)%	(0.80)%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
41.64%	38.66%	42.67%	110.54%	106.40%	120.95%	(16.21)%	(18.38)%	(7.68)%

“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. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. As the Fund has a NAV which is determined prior to the opening of the regular trading day on the stock exchange on which it is listed, the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	31.48	%
Consumer Cyclical	14.86
Consumer Non-Cyclical	14.01
Industrial	13.11
Communications	9.84
Utilities	8.85
Diversified	5.80
Energy	1.49
Technology	0.35
Short-Term and Other Net Assets	0.21
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Malayan Banking Bhd	9.74	%
Bumiputra-Commerce Holdings Bhd	8.41
IOI Corp. Bhd	5.35
Tenaga Nasional Bhd	5.22
Genting Bhd	5.10
Sime Darby Bhd	4.70
Malaysia International Shipping Corp. Bhd	4.22
Maxis Communications Bhd	4.19
Public Bank Bhd	3.83
Telekom Malaysia Bhd	3.48
TOTAL	54.24	%

6 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI MEXICO INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Mexico Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 23.43%, while the Index returned 22.28%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
32.99%	32.29%	30.47%	28.16%	27.73%	27.42%	17.20%	17.05%	18.48%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
32.99%	32.29%	30.47%	245.78%	239.99%	235.91%	388.87%	382.79%	445.09%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Communications	41.66	%
Industrial	19.74
Consumer Cyclical	11.45
Consumer Non-Cyclical	10.06
Basic Materials	6.74
Financial	5.74
Diversified	4.53
Short-Term and Other Net Assets	0.08
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
America Movil SAB de CV Series L	24.17	%
Cemex SA de CV Series CPO	16.24
Telefonos de Mexico SA de CV Series L	8.92
Fomento Economico Mexicano SAB	4.76
Wal-Mart de Mexico SA de CV Series V	4.75
Grupo Televisa SA Series CPO	4.66
Grupo Financiero Banorte SAB de CV Series O	4.39
Grupo Mexico SA de CV Series B	3.34
Grupo Carso SA de CV Series A1	2.87
Grupo Modelo SA de CV Series C	2.77
TOTAL	76.87	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Pacific ex-Japan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 19.23%, while the Index returned 19.31%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
28.38%	28.68%	28.37%	22.29%	22.18%	22.17%	22.76%	22.70%	22.69%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
28.38%	28.68%	28.37%	173.54%	172.30%	172.21%	199.40%	198.57%	198.59%

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.

The Fund’s per share net asset value or ”NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (10/26/01), the NAV of the Fund is used as a proxy for secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	48.18	%
Basic Materials	11.26
Industrial	9.06
Consumer Non-Cyclical	7.95
Consumer Cyclical	6.58
Communications	5.71
Diversified	3.99
Utilities	3.69
Energy	2.38
Technology	0.67
Short-Term and Other Net Assets	0.53
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
BHP Billiton Ltd. (Australia)	6.68	%
National Australia Bank Ltd. (Australia)	4.63
Commonwealth Bank of Australia (Australia)	4.51
Australia & New Zealand Banking Group Ltd. (Australia)	3.78
Westpac Banking Corp. (Australia)	3.28
Westfield Group (Australia)	2.31
Woolworths Ltd. (Australia)	2.30
Hutchison Whampoa Ltd. (Hong Kong)	1.82
QBE Insurance Group Ltd. (Australia)	1.81
Cheung Kong (Holdings) Ltd. (Hong Kong)	1.66
TOTAL	32.78	%

8 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SINGAPORE INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Singapore Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 32.31%, while the Index returned 32.84%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
40.64%	40.76%	41.30%	19.93%	19.45%	19.65%	2.34%	2.29%	2.83%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
40.64%	40.76%	41.30%	148.08%	143.18%	145.26%	26.03%	25.42%	32.20%

“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. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Financial	55.89	%
Communications	15.22
Industrial	11.16
Diversified	5.67
Consumer Cyclical	5.23
Consumer Non-Cyclical	4.46
Technology	2.02
Energy	0.25
Short-Term and Other Net Assets	0.10
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
United Overseas Bank Ltd.	12.52	%
DBS Group Holdings Ltd.	12.07
Singapore Telecommunications Ltd.	11.78
Oversea-Chinese Banking Corp.	10.60
Keppel Corp. Ltd.	4.56
Singapore Airlines Ltd.	4.41
CapitaLand Ltd.	4.30
City Developments Ltd.	3.76
Singapore Press Holdings Ltd.	3.44
Singapore Exchange Ltd.	2.69
TOTAL	70.13	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI South Africa Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 20.57%, while the Index returned 21.12%.

Average Annual Total Returns
Year Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX
9.90%	10.81%	10.82%	33.38%	33.64%	34.99%

Cumulative Total Returns
Inception to 2/28/07
NAV	MARKET	INDEX
223.04%	225.62%	239.08%

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.

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

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Basic Materials	26.05	%
Financial	21.60
Communications	14.85
Consumer Cyclical	9.95
Energy	9.40
Diversified	7.81
Industrial	5.31
Consumer Non-Cyclical	4.98
Short-Term and Other Net Assets	0.05
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Sasol Ltd.	9.40	%
Standard Bank Group Ltd.	8.37
MTN Group Ltd.	7.98
Impala Platinum Holdings Ltd.	7.37
Gold Fields Ltd.	5.15
Anglo Platinum Ltd.	4.60
FirstRand Ltd.	4.57
Naspers Ltd.	3.55
Telkom South Africa Ltd.	3.32
AngloGold Ashanti Ltd.	3.24
TOTAL	57.55	%

10 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SOUTH KOREA INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Korea Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 8.13%, while the Index returned 7.61%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
6.38%	2.77%	6.30%	19.45%	18.62%	21.37%	14.46%	14.15%	15.09%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
6.38%	2.77%	6.30%	143.17%	134.82%	163.40%	150.91%	146.35%	160.45%

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.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. As the Fund has a NAV which is determined prior to the opening of the regular trading day on the stock exchange on which it is listed, the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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 secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Industrial	35.43	%
Financial	20.85
Consumer Cyclical	13.56
Basic Materials	9.95
Communications	6.87
Consumer Non-Cyclical	5.14
Energy	3.39
Utilities	3.00
Technology	0.49
Short-Term and Other Net Assets	1.32
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Samsung Electronics Co. Ltd.	18.28	%
Kookmin Bank	8.24
POSCO	7.59
Shinhan Financial Group Ltd.	3.29
Hyundai Motor Co. Ltd.	3.08
Korea Electric Power Corp.	3.00
SK Corp.	2.51
Shinsegae Co. Ltd.	2.33
Hyundai Heavy Industries Co. Ltd.	2.21
KT&G Corp.	1.88
TOTAL	52.41	%

FUND PERFORMANCE OVERVIEWS 11

Fund Performance Overview

iSHARES^® MSCI TAIWAN INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Taiwan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 16.42%, while the Index returned 16.42%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
14.96%	11.09%	15.85%	6.85%	5.56%	7.91%	(3.29)%	(3.77)%	(2.32)%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Inception to 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
14.96%	11.09%	15.85%	39.24%	31.07%	46.31%	(20.05)%	(22.67)%	(14.58)%

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 the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. As the Fund has a NAV which is determined prior to the opening of the regular trading day on the stock exchange on which it is listed, the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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 secondary market trading price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Technology	36.68	%
Industrial	24.91
Financial	17.09
Basic Materials	10.74
Communications	4.65
Consumer Cyclical	3.56
Energy	1.24
Consumer Non-Cyclical	0.93
Short-Term and Other Net Assets	0.20
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd.	14.09	%
Hon Hai Precision Industry Co. Ltd.	9.15
Cathay Financial Holding Co. Ltd.	3.89
United Microelectronics Corp.	3.42
China Steel Corp.	2.98
Chunghwa Telecom Co. Ltd.	2.96
AU Optronics Corp.	2.83
MediaTek Inc.	2.74
Nan Ya Plastic Corp.	2.73
Formosa Plastic Co.	2.30
TOTAL	47.09	%

12 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited)

iSHARES^®, INC.

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2006 to February 28, 2007.

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 (9/1/06)	Ending Account Value (2/28/07)	Annualized Expense Ratio		Expenses Paid During Period a (9/1/06 to 2/28/07)
Australia
Actual	$1,000.00	$1,188.90	0.52	%	$2.82
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Brazil
Actual	1,000.00	1,195.70	0.69		3.76
Hypothetical (5% return before expenses)	1,000.00	1,021.40	0.69		3.46
Canada
Actual	1,000.00	1,040.30	0.52		2.63
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Emerging Markets
Actual	1,000.00	1,160.90	0.75		4.02
Hypothetical (5% return before expenses)	1,000.00	1,021.10	0.75		3.76

SHAREHOLDER EXPENSES 13

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (9/1/06)	Ending Account Value (2/28/07)	Annualized Expense Ratio		Expenses Paid During Period a (9/1/06 to 2/28/07)
Hong Kong
Actual	$1,000.00	$1,141.30	0.52	%	$2.76
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Malaysia
Actual	1,000.00	1,339.60	0.52		3.02
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Mexico
Actual	1,000.00	1,234.30	0.52		2.88
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
Pacific ex-Japan
Actual	1,000.00	1,192.30	0.50		2.72
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.50		2.51
Singapore
Actual	1,000.00	1,323.10	0.52		3.00
Hypothetical (5% return before expenses)	1,000.00	1,022.20	0.52		2.61
South Africa
Actual	1,000.00	1,205.70	0.68		3.72
Hypothetical (5% return before expenses)	1,000.00	1,021.40	0.68		3.41
South Korea
Actual	1,000.00	1,081.30	0.68		3.51
Hypothetical (5% return before expenses)	1,000.00	1,021.40	0.68		3.41
Taiwan
Actual	1,000.00	1,164.20	0.68		3.65
Hypothetical (5% return before expenses)	1,000.00	1,021.40	0.68		3.41

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

14 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.28%
AIRLINES – 0.53%
Qantas Airways Ltd.	1,194,246	$	4,846,181
			4,846,181
APPAREL – 0.30%
Billabong International Ltd.	206,727		2,793,573
			2,793,573
BANKS – 26.10%
Australia & New Zealand
Banking Group Ltd.	2,280,622		52,652,572
Commonwealth Bank of Australia	1,597,088		62,870,937
Macquarie Office Trust	2,454,909		3,094,953
National Australia Bank Ltd.	2,017,292		64,153,238
Suncorp-Metway Ltd.a	700,660		12,018,891
Westpac Banking Corp.	2,280,920		45,758,008
			240,548,599
BEVERAGES – 2.07%
Coca-Cola Amatil Ltd.	647,903		4,221,960
Foster’s Group Ltd.	2,510,487		12,501,834
Lion Nathan Ltd.	365,389		2,386,759
			19,110,553
BIOTECHNOLOGY – 0.40%
Sonic Healthcare Ltd.	327,868		3,632,311
			3,632,311
BUILDING MATERIALS – 3.11%
Boral Ltd.	730,654		4,836,038
CSR Ltd.	1,096,288		3,135,667
James Hardie Industries NV	576,067		4,321,242
Rinker Group Ltd.	1,112,796		16,379,140
			28,672,087
COMMERCIAL SERVICES – 3.24%
A.B.C. Learning Centres Ltd.	441,811		2,381,175
Brambles Ltd.b	1,925,629		20,119,390
Sydney Roads Group	1,166,774		1,204,361
Transurban Group	1,036,096		6,163,758
			29,868,684
COMPUTERS – 0.48%
Computershare Ltd.	555,609		4,391,055
			4,391,055

Security	Shares	Value
DIVERSIFIED FINANCIAL SERVICES – 3.98%
ASX Ltd.	212,182	$	6,996,852
Babcock & Brown Ltd.	284,080		5,730,325
Challenger Financial Services
Group Ltd.	449,959		1,630,908
Macquarie Bank Ltd.	310,714		19,338,892
Perpetual Ltd.	50,890		2,991,369
			36,688,346
ELECTRIC – 0.74%
AGL Energy Ltd.b	537,067		6,783,607
			6,783,607
ENGINEERING & CONSTRUCTION – 1.44%
Downer EDI Ltd.	372,481		2,154,264
Leighton Holdings Ltd.	171,875		4,211,839
Multiplex Group	784,006		2,724,311
WorleyParsons Ltd.	194,405		4,197,171
			13,287,585
ENTERTAINMENT – 2.05%
Aristocrat Leisure Ltd.	435,274		5,761,966
Tabcorp Holdings Ltd.	649,209		8,261,439
Tattersall’s Ltd.	1,340,103		4,857,297
			18,880,702
FOOD – 3.72%
Goodman Fielder Ltd.	1,322,106		2,354,363
Woolworths Ltd.	1,490,569		31,946,233
			34,300,596
FOREST PRODUCTS & PAPER – 0.19%
PaperlinX Ltd.	556,721		1,772,220
			1,772,220
GAS – 0.75%
Alinta Ltd.	610,826		6,858,530
			6,858,530
HEALTH CARE – PRODUCTS – 0.33%
Cochlear Ltd.	67,607		3,022,593
			3,022,593
HOUSEHOLD PRODUCTS & WARES – 0.16%
Pacific Brands Ltd.	628,040		1,449,952
			1,449,952

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2007

Security	Shares	Value
INSURANCE – 6.56%
AMP Ltd.	2,322,607	$	18,868,312
AXA Asia Pacific Holdings Ltd.	1,080,758		6,344,295
Insurance Australia Group Ltd.	2,145,980		10,111,731
QBE Insurance Group Ltd.	998,042		25,165,030
			60,489,368
INVESTMENT COMPANIES – 1.55%
Macquarie Airports	843,405		2,458,876
Macquarie Communications Infrastructure Group	394,287		1,845,430
Macquarie Infrastructure Group	3,297,451		9,977,190
			14,281,496
IRON & STEEL – 1.02%
BlueScope Steel Ltd.	899,589		6,613,395
OneSteel Ltd.	710,264		2,809,456
			9,422,851
MANUFACTURING – 2.59%
Ansell Ltd.	183,741		1,686,672
Futuris Corp. Ltd.	766,181		1,267,796
Orica Ltd.	384,143		7,491,465
Wesfarmers Ltd.	468,507		13,455,885
			23,901,818
MEDIA – 0.97%
APN News & Media Ltd.	345,839		1,621,398
John Fairfax Holdings Ltd.	1,257,849		4,767,297
Publishing & Broadcasting Ltd.	169,043		2,561,387
			8,950,082
MINING – 15.39%
Alumina Ltd.	1,443,382		7,665,489
BHP Billiton Ltd.	4,332,780		92,622,200
Iluka Resources Ltd.	290,740		1,351,623
Newcrest Mining Ltd.	414,695		7,368,414
Paladin Resources Ltd.a,b	522,978		3,749,933
Rio Tinto Ltd.a	354,476		21,115,788
Zinifex Ltd.	604,023		7,957,715
			141,831,162
OIL & GAS – 3.56%
Caltex Australia Ltd.	166,130		2,923,045
Origin Energy Ltd.	1,058,758		7,391,440
Santos Ltd.	743,097		5,480,498
Woodside Petroleum Ltd.	578,984		16,998,401
			32,793,384

Security	Shares	Value
PACKAGING & CONTAINERS – 0.67%
Amcor Ltd.	1,077,351	$	6,188,472
			6,188,472
PHARMACEUTICALS – 1.76%
CSL Ltd.	226,016		13,828,635
Symbion Health Ltd.	802,673		2,397,047
			16,225,682
REAL ESTATE – 10.68%
Centro Properties Group	1,020,967		7,907,949
CFS Retail Property Trust	1,698,235		3,211,498
Commonwealth Property Office Fund	1,807,341		1,965,250
DB RREEF Trust	3,320,038		4,564,962
GPT Group	2,404,998		9,569,842
ING Industrial Fund	1,040,290		1,950,878
Investa Property Group	1,882,291		3,515,068
Lend Lease Corp. Ltd.	445,742		6,339,564
Macquarie Goodman Group	1,747,234		9,857,409
Mirvac Group	1,227,312		5,473,562
Stockland	1,779,291		12,099,194
Westfield Group	1,866,187		31,982,549
			98,437,725
RETAIL – 2.10%
Coles Group Ltd.	1,409,062		17,053,753
Harvey Norman Holdings Ltd.	659,961		2,262,071
			19,315,824
TELECOMMUNICATIONS – 1.74%
Telstra Corp. Ltd.	3,552,465		11,924,442
Telstra Corp. Ltd. Installment Receipt	1,852,954		4,131,899
			16,056,341
TRANSPORTATION – 1.10%
Toll Holdings Ltd.	665,375		10,155,347
			10,155,347
TOTAL COMMON STOCKS (Cost: $773,249,977)			914,956,726

16 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2007

Security	Principal		Value
SHORT-TERM INVESTMENTS – 2.97%
CERTIFICATES OF DEPOSITc – 0.14%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	292,607	$	292,607
Deutsche Bank AG
5.35%, 08/08/07		487,679		487,679
Washington Mutual Bank
5.33%, 03/19/07		487,679		487,679
				1,267,965
COMMERCIAL PAPERc – 0.66%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d		185,535		184,280
BNP Paribas Finance Inc.
5.12%, 06/06/07		68,275		67,334
Bryant Park Funding LLC
5.27%, 03/06/07d		48,073		48,038
Cantabric Finance LLC
5.25%, 03/06/07d		156,057		155,943
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		146,304		145,253
Concord Minutemen
Capital Co. LLC
5.29%, 03/19/07d		99,422		99,159
Crown Point Capital Co. LLC
5.20%, 07/18/07d		225,337		220,813
Edison Asset Securitization LLC
5.21%, 04/11/07d		80,844		80,364
Five Finance Inc.
5.22%, 04/20/07d		89,733		89,082
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07d		341,375		335,512
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d		319,917		319,532
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07d		380,390		375,665
Harrier Finance Funding LLC
5.12%, 06/06/07d		195,072		192,383

Security	Principal		Value
Irish Permanent Treasury PLC
5.18%, 07/10/07	$	97,536	$	95,697
KKR Pacific Funding Trust
5.29%, 03/13/07d		243,839		243,409
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07d		246,469		242,274
Liberty Street Funding Corp.
5.27%, 03/06/07d		23,409		23,391
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		440,074		435,894
Nationwide Building Society
5.21%, 04/13/07d		185,318		184,165
Nestle Capital Corp.
5.19%, 08/09/07		117,043		114,326
Sedna Finance Inc.
5.22%, 04/17/07d		111,191		110,433
Simba Funding Corp.
5.20%, 07/23/07d		195,072		191,014
Societe Generale
5.18%, 05/16/07		487,679		482,346
Thames Asset Global
Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07d		743,137		742,418
Thornburg Mortgage
Capital Resources LLC
5.28%, 03/12/07d		142,792		142,562
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07d		102,409		102,328
Tulip Funding Corp.
5.29%, 03/15/07d		374,461		373,691
Westpac Banking Corp.
5.20%, 07/12/07d		175,564		172,192
Zela Finance Inc.
5.20%, 07/16/07d		117,043		114,727
				6,084,225
MEDIUM-TERM NOTESc – 0.06%
Bank of America N.A.
5.28%, 04/20/07		48,768		48,768

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
Cullinan Finance Corp.
5.71%, 06/28/07d	$	146,304	$	146,304
K2 USA LLC
5.39%, 06/04/07d		146,304		146,304
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07d		228,234		228,234
				569,610
MONEY MARKET FUNDS – 0.05%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%e,f		462,881		462,881
				462,881
REPURCHASE AGREEMENTSc– 0.40%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $390,201 (collateralized by non-U.S. Government debt securities, value $402,165, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	390,143		390,143
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $292,651 (collateralized by non-U.S. Government debt securities, value $322,122, 0.00% to 9.20%, 10/17/18 to 11/25/52).		292,607		292,607
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $19,510 (collateralized by non-U.S. Government debt securities, value $20,499, 5.43%, 3/15/08).		19,507		19,507
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $292,651 (collateralized by non-U.S. Government debt securities, value $315,293, 0.00% to 10.00%, 5/27/33 to 8/25/46).		292,607		292,607

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $390,201 (collateralized by non-U.S. Government debt securities, value $409,974, 4.91% to 6.31%, 10/25/33 to 8/25/46).	$	390,143	$	390,143
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $214,611 (collateralized by non-U.S. Government debt securities, value $231,237, 0.00% to 10.00%, 5/27/33 to 8/25/46).		214,579		214,579
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $117,061 (collateralized by non-U.S. Government debt securities, value $130,391, 0.00% to 10.00%, 5/27/33 to 2/28/37).		117,043		117,043
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $72,396 (collateralized by non-U.S. Government debt securities, value $76,064, 4.52% to 6.89%, 1/15/09 to 10/25/36).		72,385		72,385
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $819,425 (collateralized by non-U.S. Government debt securities, value $903,359, 0.00% to 10.00%, 4/1/07 to 12/31/49).		819,301		819,301
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $97,551 (collateralized by non-U.S. Government debt securities, value $102,500, 3.72% to 5.99%, 12/15/36 to 6/1/46).		97,536		97,536

18 2007 iSHARES SEMI-ANNUAL TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2007

Security	Principal		Value
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $48,775 (collateralized by non-U.S. Government debt securities, value $51,253, 6.25% to 9.56%, 5/15/11 to 2/1/30.	$	48,768	$	48,768
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $195,101 (collateralized by non-U.S. Government debt securities, value $204,988, 1.63% to 14.50%, 5/1/07 to 9/18/37).		195,072		195,072
Morgan Stanley 5.36%, due 3/1/07, maturity value $195,101 (collateralized by non-U.S. Government debt securities, value $205,032, 0.00% to 10.00%, 3/1/07 to 2/28/37).		195,072		195,072
Morgan Stanley 5.51%, due 2/4/08, maturity value $143,531 (collateralized by non-U.S. Government debt securities, value $161,937, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		136,550		136,550
Wachovia Capital 5.38%, due 3/1/07, maturity value $429,221 (collateralized by non-U.S. Government debt securities, value $450,971, 0.00% to 8.32%, 2/15/08 to 3/15/49).		429,157		429,157
				3,710,470
TIME DEPOSITSc – 0.12%
Bank of Nova Scotia
5.30%, 03/02/07		81,805		81,805
Chase Bank USA N.A.
5.38%, 03/01/07		292,607		292,607

Security	Principal		Value
Citibank N.A. 5.47%, 03/01/07	$	292,607	$	292,607
Deutsche Bank AG 5.38%, 03/01/07		458,167		458,167
				1,125,186
VARIABLE & FLOATING RATE NOTESc – 1.54%
Allstate Life Global Funding II 5.30% - 5.40%, 02/15/08 - 03/07/08d		499,383		499,427
American Express Centurion Bank 5.41%, 07/19/07		214,579		214,675
American Express Credit Corp. 5.42%, 03/05/08		58,521		58,550
AmeriCredit Automobile Receivables Trust 5.35%, 03/06/07		8,890		8,890
Arkle Master Issuer PLC Series 2006-1A Class 1A 5.30%, 11/19/07d		146,304		146,304
ASIF Global Financing 5.40%, 05/03/07d		19,507		19,509
Australia & New Zealand Banking Group Ltd. 5.32%, 02/22/08d		126,797		126,797
Bank of Ireland 5.30% - 5.32%, 08/14/07 - 02/20/08d		282,854		282,862
Beta Finance Inc. 5.29% - 5.41%, 04/25/07 - 07/25/07d		497,432		497,442
BMW US Capital LLC 5.32%, 01/15/08d		195,072		195,072
BNP Paribas 5.33%, 11/19/07d		360,882		360,882
Brigantine High Grade Funding Ltd. 5.40%, 09/05/07d		187,269		187,251
Carlyle Loan Investment Ltd. 5.37%, 04/13/07 - 07/15/07d		142,402		142,402
CC USA Inc. 5.36%, 07/30/07d		97,536		97,541

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2007

Security	Principal		Value
Commodore CDO Ltd. 5.44%, 12/12/07d	$	48,768	$	48,768
Credit Agricole SA 5.33%, 11/23/07		195,072		195,072
Credit Suisse First Boston NY 5.36%, 04/24/07		97,536		97,536
Cullinan Finance Corp. 5.36%, 04/25/07d		48,768		48,768
DaimlerChrysler Auto Trust Series 2006-C Class A1 5.33%, 10/08/07d		14,964		14,964
DEPFA Bank PLC 5.40%, 12/14/07d		195,072		195,072
Dorada Finance Inc. 5.33% - 5.41%, 06/27/07 - 07/17/07d		224,332		224,336
Eli Lilly Services Inc. 5.31%, 03/01/07d		130,210		130,210
Fifth Third Bancorp 5.32%, 02/22/08d		390,143		390,143
Five Finance Inc. 5.31% - 5.37%, 06/29/07 - 07/13/07d		126,797		126,790
General Electric Capital Corp. 5.28% - 5.45%, 07/09/07 - 02/22/08d		204,825		204,845
Granite Master Issuer PLC 5.29%, 08/20/07d		682,750		682,750
Harrier Finance Funding LLC 5.29% - 5.36%, 07/25/07 - 08/15/07d		253,593		253,594
Hartford Life Global Funding Trust 5.36% - 5.40%, 07/13/07 - 03/14/08		292,607		292,627
HBOS Treasury Services PLC 5.46%, 01/24/08d		195,072		195,072
Holmes Financing PLC 5.29%, 07/16/07d		341,375		341,375
JP Morgan Securities Inc. 5.40%, 11/16/07		390,143		390,143

Security	Principal		Value
JPMorgan Chase & Co. 5.29% - 5.45%, 07/27/07 - 02/29/08g	$	536,447	$	536,447
K2 USA LLC 5.20% - 5.33%, 04/02/07 - 06/28/07d		146,304		146,301
Kestrel Funding LLC 5.30%, 07/11/07d		78,029		78,026
Kommunalkredit Austria AG 5.32%, 02/08/08d		117,043		117,043
Leafs LLC 5.32%, 01/22/08d		188,999		188,999
Links Finance LLC 5.28% - 5.35%, 05/10/07 - 05/16/07d		214,579		214,574
Lothian Mortgages Master Issuer PLC 5.29%, 04/24/07d		68,773		68,773
Marshall & Ilsley Bank 5.32%, 02/15/08		107,289		107,289
Master Funding LLC 5.35%, 04/25/07 - 05/25/07d		353,027		353,026
Merrill Lynch & Co. Inc. 5.46%, 05/30/07g		214,579		214,579
Metropolitan Life Global Funding I 5.33%, 03/06/08d		292,607		292,607
Metropolitan Life Insurance Funding Agreement 5.44%, 08/01/07d,g		19,507		19,507
Mound Financing PLC 5.29%, 05/08/07d		183,367		183,367
Natexis Banques Populaires 5.33% - 5.35%, 06/20/07 - 02/08/08d		312,114		312,111
National City Bank of Indiana 5.34%, 05/21/07		97,536		97,538
Nationwide Building Society 5.37% - 5.48%, 07/20/07 - 01/28/08d		643,736		643,809
Newcastle Ltd. 5.34%, 04/24/07 - 01/24/08d		195,559		195,534

20 2007 iSHARES SEMI-ANNUAL TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2007

Security	Principal		Value
Northern Rock PLC
5.38%, 02/01/08d	$	234,086	$	234,090
Northlake CDO I
5.42%, 09/06/07d		58,521		58,521
Pricoa Global Funding I
5.31%, 02/27/08d		263,347		263,347
Sedna Finance Inc.
5.32% - 5.34%,
05/25/07 - 08/21/07d		282,854		282,852
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		195,072		195,072
Strips III LLC
5.37%, 07/24/07d		39,694		39,694
SunTrust Bank
5.29%, 05/01/07		195,072		195,073
Tango Finance Corp.
5.27% - 5.34%,
04/25/07 - 07/16/07d		475,975		475,959
Union Hamilton Special Funding LLC
5.36% - 5.37%,
03/28/07 - 06/21/07d		321,868		321,869
Wachovia Asset Securitization Inc.
5.31%, 03/25/07d		220,201		220,201
Wachovia Bank N.A.
5.36%, 05/22/07		390,143		390,143
Wal-Mart Stores Inc.
5.50%, 07/16/07d		146,304		146,341
Wells Fargo & Co.
5.33%, 11/15/07d		97,536		97,541
WhistleJacket Capital Ltd.
5.28% - 5.35%,
04/18/07 - 06/13/07d		146,304		146,305
White Pine Finance LLC
5.28% - 5.32%,
05/22/07 - 08/20/07d		585,215		585,163
Wind MasterTrust
5.31%, 07/25/07d		78,029		78,029
				14,169,399
TOTAL SHORT-TERM INVESTMENTS (Cost: $27,389,736)				27,389,736

	Value
TOTAL INVESTMENTS IN SECURITIES – 102.25% (Cost: $800,639,713)	$	942,346,462
Other Assets, Less Liabilities – (2.25)%		(20,752,130	)
NET ASSETS – 100.00%	$	921,594,332

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

^b Non-income earning security.

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 39.43%
AEROSPACE & DEFENSE – 1.87%
Empresa Brasileira de Aeronautica SA	4,795,600	$	53,942,029
			53,942,029
AGRICULTURE – 0.71%
Souza Cruz SA	1,135,800		20,597,409
			20,597,409
BANKS – 4.65%
Banco Nossa Caixa SA	567,200		10,673,406
Unibanco Uniao de Bancos Brasileiros SA	14,513,020		123,733,237
			134,406,643
CHEMICALS – 0.40%
Braskem SA Class A	1,766,836		11,468,205
			11,468,205
COMMERCIAL SERVICES – 0.84%
Companhia de Concessoes Rodoviarias	1,893,000		24,342,393
			24,342,393
COSMETICS & PERSONAL CARE – 0.74%
Natura Cosmeticos SA	1,688,600		21,419,688
			21,419,688
ELECTRIC – 1.79%
Centrais Eletricas Brasileiras SA	1,388,200,000		29,424,870
EDP - Energias do Brasil SA	707,300		11,127,565
Tractebel Energia SA	1,388,200		11,279,534
			51,831,969
FOOD – 0.85%
Cosan SA Industria e Comercioa	757,190		13,988,220
Perdigao SA	883,400		10,652,398
			24,640,618
HEALTH CARE - SERVICES – 0.40%
Diagnosticos da America SAa	525,100		11,402,313
			11,402,313
INTERNET – 0.55%
Submarino SA	484,530		15,953,202
			15,953,202

Security	Shares	Value
IRON & STEEL – 2.22%
Companhia Siderurgica Nacional SA	1,556,184	$	54,316,173
Gerdau SA	693,100		9,944,336
			64,260,509
MINING – 9.01%
Companhia Vale do Rio Doce ADR	7,628,784		260,294,110
			260,294,110
OIL & GAS – 9.98%
Petroleo Brasileiro SA	12,792,300		288,323,860
			288,323,860
REAL ESTATE – 0.97%
Cyrela Brazil Realty SA	2,019,200		18,736,806
Gafisa SA	631,000		9,178,182
			27,914,988
RETAIL – 0.64%
Lojas Renner SA	1,317,100		18,543,626
			18,543,626
TELECOMMUNICATIONS – 1.18%
Brasil Telecom Participacoes SA	794,200,000		13,605,774
Tele Norte Leste Participacoes SA	793,538		20,371,088
			33,976,862
TRANSPORTATION – 1.75%
All America Latina
Logistica SA	4,417,000		50,661,305
			50,661,305
WATER – 0.88%
Companhia de Saneamento
Basico do Estado de Sao Paulo	189,300,000		25,279,531
			25,279,531
TOTAL COMMON STOCKS (Cost: $752,799,859)			1,139,259,260

22 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2007

Security	Shares	Value
PREFERRED STOCKS – 60.00%
AIRLINES – 1.30%
Gol Linhas Aereas Inteligentes SA	594,100	$	16,986,279
Tam SAa	705,300		20,697,216
			37,683,495
BANKS – 11.59%
Banco Bradesco SA	5,388,600		198,233,471
Banco Itau Holding Financeira SA	3,988,370		136,746,798
			334,980,269
BEVERAGES – 4.24%
Companhia de Bebidasdas Americas	252,400,000		122,455,017
			122,455,017
BUILDING MATERIALS – 0.65%
Duratex SA	1,009,620		18,737,178
			18,737,178
ELECTRIC – 4.50%
Centrais Eletricas Brasileiras SA Class B	1,180,400,000		24,797,855
Companhia Energetica de Minas Gerais	1,189,500,000		56,583,896
Companhia Energetica de Sao Paulo Class Ba	1,766,800,000		20,847,074
Companhia Paranaense de Energia Class B	1,388,200,000		16,085,601
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class Ba	239,780,000		11,813,937
			130,128,363
FOOD – 1.12%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar	454,320,000		13,449,839
Sadia SA	6,005,000		18,922,963
			32,372,802

Security	Shares	Value
FOREST PRODUCTS & PAPER – 2.57%
Aracruz Celulose SA Class B	6,233,200	$	33,206,544
Klabin SA	7,748,000		18,722,204
Votorantim Celulose e Papel SA	1,226,900		22,243,703
			74,172,451
GAS – 0.22%
Companhia de Gas de Sao Paulo Class A	37,860,000		6,259,473
			6,259,473
IRON & STEEL – 4.29%
Gerdau SA	3,872,373		66,047,398
Usinas Siderurgicas de Minas Gerais SA Class A	1,388,200		57,810,062
			123,857,460
MACHINERY – 0.68%
Weg SA	2,650,200		19,598,747
			19,598,747
MEDIA – 0.53%
Net Servicos de Comunicacao SAa	1,216,568		15,472,132
			15,472,132
MINING – 11.09%
Companhia Vale do Rio Doce Class A	10,896,400		320,578,966
			320,578,966
OIL & GAS – 12.37%
Petroleo Brasileiro SA	17,702,700		357,556,183
			357,556,183
RETAIL – 0.71%
Lojas Americanas SA	365,400,000		20,395,619
			20,395,619
TELECOMMUNICATIONS – 3.92%
Brasil Telecom Participacoes SA	2,902,600,000		23,447,754
Tele Norte Leste Participacoes SA	3,097,539		40,269,466
Telemig Celular Participacoes SA	2,650,200,000		4,818,541

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2007

Security	Shares	Value
Telesp Celular Participacoes SAa	5,805,283	$	21,602,325
TIM Participacoes SA	7,193,400,000		23,074,413
			113,212,499
TEXTILES – 0.22%
Companhia de Tecidos
Norte de Minas	50,480,400		6,407,658
			6,407,658
TOTAL PREFERRED STOCKS (Cost: $1,201,232,787)			1,733,868,312
SHORT-TERM INVESTMENTS – 0.17%
MONEY MARKET FUNDS – 0.17%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares
5.30%b,c	4,775,657		4,775,657
			4,775,657
TOTAL SHORT-TERM INVESTMENTS (Cost: $4,775,657)			4,775,657
TOTAL INVESTMENTS IN SECURITIES – 99.60% (Cost: $1,958,808,303)			2,877,903,229
Other Assets, Less Liabilities – 0.40%			11,629,849
NET ASSETS – 100.00%		$	2,889,533,078

ADR – American Depositary Receipts

^a Non-income earning security.

^b Affiliated issuer. See Note 2.

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

See notes to financial statements.

24 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.79%
AEROSPACE & DEFENSE – 0.28%
CAE Inc.	276,604	$	2,870,897
			2,870,897
AIRLINES – 0.27%
ACE Aviation Holdings Inc. Class Aa	90,830		2,804,184
			2,804,184
APPAREL – 0.33%
Gildan Activewear Inc.a	66,198		3,419,002
			3,419,002
AUTO PARTS & EQUIPMENT – 0.84%
Magna International Inc. Class A	119,508		8,747,918
			8,747,918
BANKS – 17.93%
Bank of Montreal	551,124		33,258,739
Bank of Nova Scotia	1,088,980		47,235,105
Canadian Imperial
Bank of Commerce	369,941		31,758,357
National Bank of Canada	178,302		9,929,743
Royal Bank of Canada	1,410,100		65,048,236
			187,230,180
BEVERAGES – 0.11%
Cott Corp.a	78,937		1,102,715
			1,102,715
CHEMICALS – 2.82%
Agrium Inc.	145,792		5,581,513
Methanex Corp.	117,501		2,956,189
NOVA Chemicals Corp.	90,844		2,858,849
Potash Corp. of Saskatchewan Inc.	114,634		18,001,414
			29,397,965
COAL – 0.39%
Fording Canadian Coal Trust	162,217		4,074,275
			4,074,275
COMMERCIAL SERVICES – 0.29%
QuebecorWorld Inc.	93,081		1,230,443
Ritchie Bros. Auctioneers Inc.	32,373		1,846,770
			3,077,213

Security	Shares	Value
COMPUTERS – 2.68%
CGI Group Inc.a	293,768	$	2,475,313
Research In Motion Ltd.a	182,506		25,535,742
			28,011,055
DIVERSIFIED FINANCIAL SERVICES – 0.99%
CI Financial Income Fund	68,310		1,546,740
IGM Financial Inc.	131,156		5,665,474
TSX Group Inc.	75,276		3,136,099
			10,348,313
ELECTRIC – 0.69%
Fortis Inc.	117,946		2,645,499
TransAlta Corp.	220,953		4,556,431
			7,201,930
ELECTRONICS – 0.13%
Celestica Inc.a	222,419		1,394,209
			1,394,209
ENGINEERING & CONSTRUCTION – 0.49%
SNC-Lavalin Group Inc.	165,914		5,085,454
			5,085,454
FOOD – 0.96%
George Weston Ltd.	56,837		3,441,582
Loblaw Companies Ltd.	120,607		4,757,216
Saputo Inc.	51,293		1,837,283
			10,036,081
FOREST PRODUCTS & PAPER – 0.38%
Abitibi-Consolidated Inc.	435,817		1,200,536
Canfor Corp.a	87,543		859,341
Domtar Inc.a	232,215		1,932,897
			3,992,774
HAND & MACHINE TOOLS – 0.43%
Finning International Inc.	100,017		4,448,328
			4,448,328
HEALTH CARE – SERVICES – 0.27%
MDS Inc.	154,037		2,863,849
			2,863,849
HOLDING COMPANIES - DIVERSIFIED – 2.26%
Brookfield Asset Management Inc.
Class A	383,664		20,528,830
Onex Corp.	120,623		3,069,712
			23,598,542

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2007

Security	Shares	Value
INSURANCE – 11.34%
Fairfax Financial Holdings Ltd.	18,782	$	3,615,601
Great-West Lifeco Inc.	294,150		9,081,259
Manulife Financial Corp.	1,701,913		56,926,381
Power Corp. of Canada	376,613		12,414,048
Power Financial Corp.	271,470		9,279,363
Sun Life Financial Inc.	630,257		27,117,364
			118,434,016
IRON & STEEL – 0.69%
Algoma Steel Inc.a	34,977		1,501,933
IPSCO Inc.	52,026		5,648,296
			7,150,229
LODGING – 0.23%
Four Seasons Hotels Inc.	29,130		2,347,939
			2,347,939
MANUFACTURING – 0.58%
Bombardier Inc. Class Ba	1,555,497		6,049,266
			6,049,266
MEDIA – 3.59%
Astral Media Inc. Class A	55,246		1,931,761
Rogers Communications Inc. Class B	488,433		15,904,117
Shaw Communications Inc. Class B	190,598		6,531,259
Thomson Corp.	246,783		9,923,516
Yellow Pages Income Fund	276,578		3,179,627
			37,470,280
MINING – 13.76%
Aber Diamond Corp.	65,161		2,322,911
Agnico-Eagle Mines Ltd.	131,428		5,160,501
Alcan Inc.	413,161		21,430,602
Barrick Gold Corp.	949,368		28,273,362
Bema Gold Corp.a	537,598		3,356,119
Cameco Corp.	387,364		14,288,084
Eldorado Gold Corp.a	378,280		2,251,840
First Quantum Minerals Ltd.	74,026		4,289,853
Goldcorp Inc.	771,962		20,659,390
Ivanhoe Mines Ltd.a	272,428		2,753,206
Kinross Gold Corp.a	398,846		5,592,110
Lundin Mining Corp.a	266,104		2,891,275

Security	Shares	Value
Meridian Gold Inc.a	110,673	$	3,027,922
Novelis Inc.	81,440		3,542,228
Pan American Silver Corp.a	82,031		2,456,977
Teck Cominco Ltd. Class B	232,490		16,353,908
Yamana Gold Inc.	339,407		5,004,773
			143,655,061
OIL & GAS – 23.68%
ARC Energy Trust	106,118		1,945,791
Canadian Natural Resources Ltd.	593,191		29,711,405
Canadian Oil Sands Trust	255,409		5,946,583
Canetic Resources Trust	247,434		3,156,891
Duvernay Oil Corp.a	45,621		1,248,542
EnCana Corp.	885,542		42,934,683
Enerplus Resources Fund	134,763		5,810,940
Ensign Resource Service Group	142,156		2,290,160
First Calgary Petroleums Ltd.a	257,286		1,360,431
Harvest Energy Trust	134,179		3,145,777
Husky Energy Inc.	140,598		9,101,009
Imperial Oil Ltd.	370,269		13,183,856
Nexen Inc.	288,559		16,500,687
Niko Resources Ltd.	39,355		2,809,273
OPTI Canada Inc.a	189,922		3,181,159
Penn West Energy Trust	259,439		7,772,881
Petro-Canada	548,113		20,217,379
Precision Drilling Trust	67,682		1,583,316
PrimeWest Energy Trust	91,226		1,781,651
Provident Energy Trust	229,634		2,496,980
Shell Canada Ltd.	227,131		8,643,201
Suncor Energy Inc.	506,902		35,855,573
Talisman Energy Inc.	1,199,943		20,641,210
UTS Energy Corp.a	460,743		1,559,976
Western Oil Sands Inc. Class Aa	159,547		4,347,385
			247,226,739
OIL & GAS SERVICES – 0.24%
Trican Well Service Ltd.	127,821		2,539,959
			2,539,959
PHARMACEUTICALS – 0.43%
Angiotech Pharmaceuticals Inc.a	94,503		624,620
Biovail Corp.	155,437		3,212,007
QLT Inc.a	82,660		691,565
			4,528,192

26 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2007

Security	Shares	Value
PIPELINES – 2.79%
Enbridge Inc.	381,265	$	12,066,645
TransCanada Corp.	537,509		17,098,704
			29,165,349
REAL ESTATE – 0.86%
Brookfield Properties Corp.	158,312		7,090,995
MI Developments Inc. Class A	51,402		1,885,025
			8,976,020
RETAIL – 2.13%
Alimentation Couche Tard Inc. Class B	149,200		3,149,290
Canadian Tire Corp. Ltd. Class A	86,100		5,261,238
Jean Coutu Group Inc. Class A	158,833		2,006,155
RONA Inc.a	126,463		2,529,152
Shoppers Drug Mart Corp.	213,830		9,311,466
			22,257,301
SOFTWARE – 0.47%
Cognos Inc.a	98,929		3,736,783
Open Text Corp.a	52,524		1,148,088
			4,884,871
TELECOMMUNICATIONS – 3.21%
BCE Inc.	294,996		7,723,660
Nortel Networks Corp.a	477,521		14,278,185
TELUS Corp.	64,884		3,118,173
TELUS Corp. NVS	178,404		8,410,876
			33,530,894
TRANSPORTATION – 3.25%
Canadian National Railway Co.	569,169		24,804,517
Canadian Pacific Railway Ltd.	171,661		9,142,663
			33,947,180
TOTAL COMMON STOCKS
(Cost: $890,175,456)			1,041,868,180

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.03%
MONEY MARKET FUNDS – 0.03%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%b,c	300,977	$	300,977
			300,977
TOTAL SHORT-TERM INVESTMENTS
(Cost: $300,977)			300,977
TOTAL INVESTMENTS IN SECURITIES – 99.82%
(Cost: $890,476,433)			1,042,169,157
Other Assets, Less Liabilities – 0.18%			1,887,693
NET ASSETS – 100.00%		$	1,044,056,850

NVS – Non-Voting Shares

^a Non-income earning security.

^b Affiliated issuer. See Note 2.

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 97.79%
ARGENTINA – 0.91%
BBVA Banco Frances SA ADR	914,298	$	10,688,144
Petrobras Energia
Participaciones SA ADRa	1,720,261		18,200,361
Tenaris SA ADR	2,201,996		99,992,638
			128,881,143
BRAZIL – 8.69%
Aracruz Celulose SA ADR	560,444		30,073,425
Banco Bradesco SA ADR	4,834,569		177,863,793
Banco Itau Holding Financiera SA ADR	5,506,569		188,379,725
Brasil Telecom Participacoes SA ADR	674,519		27,318,019
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR	821,337		24,599,043
Companhia de Bebidas das Americas ADR	1,044,028		50,499,634
Companhia Energetica de Minas Gerais ADR	139,260		6,705,369
Companhia Vale do Rio Doce ADR	4,893,568		166,968,540
Companhia Vale do Rio Doce Sponsored ADR	6,658,460		196,757,493
Empresa Brasileira de Aeronautica SA ADR	1,152,904		52,284,196
Gerdau SA Sponsored ADR	1,835,700		31,482,255
Net Servicos de Comunicacao SA ADR	600,084		8,221,151
Petroleo Brasileiro SA ADR	1,909,988		172,662,915
Tele Norte Leste Participacoes SA ADR	1,779,152		23,075,601
Unibanco-Uniao de Bancos Brasileiros SA GDR	651,568		55,696,033
Votorantim Celulose e Papel ADRb	778,168		13,952,552
			1,226,539,744
CHILE – 2.04%
Banco Santander Chile SA ADR	1,672,037		79,588,961

Security	Shares	Value
Compania de
Telecomunicaciones de
Chile SA ADR	2,019,316	$	17,164,186
Enersis SA ADR	4,917,780		76,963,257
LAN Airlines SA
Sponsored ADR	453,339		30,908,653
Sociedad Quimica y Minera de Chile SA ADRc	613,044		83,668,245
			288,293,302
CHINA – 7.04%
Angang New Steel Co.
Ltd. Class Hb	11,816,000		18,603,587
Bank of China Ltd. Class Ha,b	143,480,000		68,688,505
Bank of Communications Co.
Ltd. Class Hb	39,774,000		40,067,762
Beijing Capital International
Airport Co. Ltd. Class Hb	13,508,000		12,449,291
China Construction
Bank Class Hb	169,644,000		95,545,947
China Eastern Airlines Corp.
Ltd. Class Ha,b	59,080,000		17,696,094
China Life Insurance Co.
Ltd. Class H	43,888,000		117,693,074
China Petroleum & Chemical
Corp. Class H	109,804,000		87,845,449
China Shipping Development
Co. Ltd. Class H	15,210,000		21,065,781
Cofco International Ltd.b	5,070,000		4,231,328
COSCO Pacific Ltd.	6,752,000		18,063,413
Datang International Power
Generation Co.
Ltd. Class Hb	6,760,000		6,835,887
Guangshen Railway
Co. Ltd. Class Hb	54,086,363		33,993,068
Huadian Power International
Corp. Ltd.b	28,730,000		10,076,444
Huaneng Power International
Inc. Class Hb	20,256,000		17,501,632
Hunan Non-Ferrous Metal
Corp. Ltd. Class Ha	23,660,000		15,899,927
Industrial & Commercial
Bank of China Class Ha	176,396,000		97,316,636

28 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Shares	Value
Jiangsu Expressway Co.
Ltd. Class Hb	5,070,000	$	3,777,044
Jiangxi Copper Co. Ltd.b	16,898,000		19,293,954
Maanshan Iron & Steel Co.
Ltd. Class Hb	18,568,000		11,978,895
PetroChina Co. Ltd. Class H	114,798,000		133,867,079
Ping An Insurance (Group) Co. of China Ltd. Class H	9,287,500		42,144,039
Shanghai Forte Land Co.
Class H	5,064,000		2,119,642
Sinopec Shanghai
Petrochemical Co. Ltd.
Class H	20,280,000		10,279,789
Sinotrans Ltd.	20,256,000		7,830,360
Travelsky Technology Ltd.
Class H	1,690,000		3,093,455
Tsingtao Brewery Co. Ltd.
Class Hb	3,380,000		5,762,912
Weichai Power Co. Ltd.
Class Hb	3,377,000		14,524,173
XinAo Gas Holdings Ltd.b	3,388,000		3,304,604
Yanzhou Coal Mining Co. Ltd. Class Hb	20,256,800		18,617,286
Zhejiang Expressway Co. Ltd. Class H	20,280,000		15,212,011
Zijin Mining Group Co. Ltd.
Class H	27,008,000		18,253,554
			993,632,622
CZECH REPUBLIC – 1.83%
CEZ AS	4,293,817		172,320,655
Komercni Banka AS	239,343		39,126,809
Philip Morris CR AS	10,131		5,272,273
Unipetrol ASa	3,585,500		37,046,908
Zentiva NV	86,835		4,886,152
			258,652,797
EGYPT – 0.70%
Orascom Construction
Industries Co. GDR	469,063		45,030,048
Orascom Telecom Holding
SAE GDR	756,242		53,390,685
			98,420,733

Security	Shares	Value
HONG KONG – 4.99%
Air China Ltd.b	25,320,000	$	18,960,102
AMP Ltd.	2,322,607		18,868,312
Beijing Enterprises
Holdings Ltd.b	3,380,000		8,220,371
Brilliance China Automotive
Holdings Ltd.a,b	21,798,000		5,357,214
Chaoda Modern Agriculture
(Holdings) Ltd.	1,688,000		1,222,953
China Agri-Industries Ltd.d	5,274,000		2,356,062
China Everbright
Pacific Ltd.a,b	18,796,000		17,346,897
China Mengniu Dairy Co. Ltd.b	3,376,000		9,269,383
China Merchants Holdings
International Co. Ltd.	6,752,000		26,317,269
China Mobile Ltd.	29,118,000		270,594,678
China Overseas Land &
Investment Ltd.b	27,008,000		27,242,046
China Resources
Enterprises Ltd.	11,830,000		34,904,125
China Resources Land Ltd.b	27,040,000		27,689,669
China Resources Power
Holdings Co. Ltd.	5,064,000		7,130,295
China Travel International
Investment Hong Kong Ltd.b	59,366,951		26,065,133
Citic Pacific Ltd.	9,295,000		31,231,999
CNOOC Ltd.	101,280,000		81,674,282
Denway Motors Ltd.b	32,072,000		12,726,495
GOME Electrical Appliances
Holdings Ltd.b	7,495,000		8,317,864
Guangdong Investment Ltd.	11,820,110		6,203,353
Guangzhou Investment
Co. Ltd.	28,696,000		6,538,264
Lenovo Group Ltd.b	35,448,000		13,612,381
Li Ning Co. Ltd.b	3,376,000		6,352,444
Nine Dragons Paper
Holdings Ltd.b	9,284,000		19,251,795
Shanghai Industrial
Holdings Ltd.	3,380,000		7,917,515
Shenzhen Investment Ltd.	27,030,000		12,109,750
Sinofert Holdings Ltd.b	28,502,000		15,104,167
			703,716,506

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Shares	Value
HUNGARY – 1.81%
Gedeon Richter Rtb	403,528	$	78,379,059
MagyarTelekom
Telecommunications PLC	2,805,594		13,703,504
MOL Magyar Olaj-es
Gazipari Rtb	546,068		58,562,157
OTP Bank Ltd.b	2,470,388		105,435,650
			256,080,370
INDIA – 5.97%
HDFC Bank Ltd. ADR	2,139,540		142,001,270
ICICI Bank Ltd. ADR	3,426,640		131,343,111
Infosys Technologies Ltd. ADR	3,398,334		184,393,603
Mahanagar Telephone
Nigam Ltd. ADR	5,057,423		30,243,390
Reliance Industries Ltd. GDRe	1,516,917		93,745,471
Satyam Computer Services
Ltd. ADR	4,952,648		106,779,091
Videsh Sanchar Nigam
Ltd. ADRb	4,634,404		78,136,051
Wipro Ltd. ADRb	4,806,096		76,128,561
			842,770,548
INDONESIA – 2.18%
PT Aneka Tambang Tbk	45,576,000		45,418,781
PT Astra Agro Lestari Tbk	2,110,000		2,899,907
PT Astra International Inc. Tbk	13,089,000		20,139,128
PT Bank Central Asia Tbk	38,015,000		20,503,080
PT Bank Danamon
Indonesia Tbk	13,092,987		8,244,502
PT Bank Internasional
Indonesia Tbk	118,582,000		2,532,277
PT Bank Mandiri Tbk	28,274,000		7,198,932
PT Bank Pan Indonesia Tbka	213,606,522		13,333,595
PT Bank Rakyat Indonesia Tbk	34,089,061		17,732,359
PT Berlian Laju Tanker Tbk	22,392,500		4,291,395
PT Bumi Resources Tbk	124,701,000		16,523,923
PT Indosat Tbk	1,266,000		817,982
PT Kalbe Farma Tbka	246,164,656		32,888,450
PT Perusahaan Gas
Negara Tbk	16,036,000		15,717,265
PT Ramayana Lestari
Sentosa Tbk	84,509,870		7,126,168

Security	Shares	Value
PT Semen
Gresik (Persero) Tbk	438,000	$	1,851,481
PTTelekomunikasi
Indonesia Tbk	79,336,000		77,324,690
PT United Tractors Tbk	16,521,771		12,574,748
			307,118,663
ISRAEL – 3.46%
Africa Israel Investments Ltd.	76,895		6,810,387
AudioCodes Ltd.a	33,300		324,675
Bank Hapoalim Ltd.	9,803,227		45,342,250
Bank Leumi Le-Israel	12,834,863		46,030,154
Check Point Software
Technologies Ltd.a	1,366,436		30,854,125
Clal Industries and
Investments Ltd.	459,980		2,657,759
Clal Insurance Co. Ltd.	83,556		2,118,628
Discount Investment
Corp. Ltd.	70,980		2,153,307
ECI Telecom Ltd.a	414,404		3,323,520
Elbit Systems Ltd.	646,504		22,143,069
Elite Industries Ltd.	189,900		2,099,890
Israel Chemicals Ltd.	6,903,076		42,407,417
Israel Corp. Ltd. (The)	9,284		4,884,229
Israel Discount Bank Class Aa	14,491,096		32,941,808
Koor Industries Ltd.a	273,513		14,869,350
Makhteshim-Agan
Industries Ltd.	2,967,628		17,759,311
Mizrahi Tefahot Bank Ltd.	4,618,540		32,897,238
NICE Systems Ltd.a	169,000		5,792,339
Orbotech Ltd.a	570,456		12,749,692
Super-Sol Ltd.a	1,658,603		6,440,069
Syneron Medical Ltd.a	168,800		4,508,648
Teva Pharmaceutical
Industries Ltd.	4,165,984		148,912,189
			488,020,054
MEXICO – 7.21%
Alfa SAB de CV Class Ab	3,629,200		22,977,563
America Movil SAB de CV
Series Lb	90,308,000		197,735,846
Carso Infraestructura y
Construccion SA de CVa,b	2,849,700		2,524,954

30 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Shares	Value
Cemex SA de CV Series CPOa,b	39,414,800	$	134,537,169
Consorcio Ara SA de CVb	5,915,000		37,280,080
Controladora Comercial Mexicana SA de CVb	9,452,800		24,102,015
Corporacion GEO SAB de CV Series Ba,b	5,645,700		30,545,048
Desarrolladora Homex SAB de CVa,b	1,089,900		9,905,963
Empresas ICA SAB de CVa,b	5,196,100		18,560,160
Fomento Economico Mexicano SABb	5,154,500		57,086,480
Grupo Carso SA de CV Series A1b	761,241		2,568,387
Grupo Financiero Banorte SAB de CV Series Ob	10,144,456		39,634,449
Grupo Mexico SA de CV Series Bb	11,186,700		48,837,833
Grupo Modelo SA de CV Series Cb	11,083,698		57,037,056
Grupo Televisa SA Series CPOb	17,470,800		95,633,926
Industrias Penoles SA de CV Series CPb	761,488		7,405,440
Kimberly-Clark de Mexico SA de CV Class Ab	6,245,600		26,197,723
Telefonos de Mexico SA de CV Series Lb	47,524,900		69,103,129
TV Azteca SA de CV Series CPOb	10,550,000		8,449,830
Urbi Desarrollos Urbanos SA de CVa,b	3,436,300		13,441,037
Wal-Mart de Mexico SA de CV Series Vb	29,711,800		114,886,336
			1,018,450,424
PERU – 0.29%
Compania de Minas Buenaventura SA ADR	1,493,882		41,410,409
			41,410,409
PHILIPPINE ISLANDS – 1.58%
Ayala Corp.	2,557,320		29,508,045
Ayala Land Inc. Class B	31,228,000		9,812,538

Security	Shares	Value
Bank of the Philippine Islands	20,053,800	$	25,618,619
Filinvest Land Inc.a	329,224,375		11,396,424
Globe Telecom Inc.	388,240		10,359,466
Jollibee Foods Corp.	32,494,000		33,476,536
Manila Electric Co. Class B	9,368,400		13,801,898
Megaworld Corp.d	237,841,040		14,946,999
Metropolitan Bank& Trust Co.	40		51
Petron Corp.	169,644,000		15,380,078
Philippine Long Distance Telephone Co.	540,160		25,821,279
SM Investments Corp.	1,612,040		11,708,527
SM Prime Holdings Inc.	94,528,000		21,424,983
			223,255,443
RUSSIA – 9.15%
JSC MMC Norilsk Nickel ADR	512,427		90,955,792
LUKOIL ADR	3,527,076		279,697,127
Mobile TeleSystems Sponsored ADR	759,600		38,967,480
OAO Gazprom ADR	14,201,083		578,268,100
OAO Tatneft ADR	208,957		17,970,302
Polyus Gold ADRa	478,782		24,561,517
RAO Unified Energy System of Russia GDR	200,028		23,743,324
Rostelecom ADRb	604,307		29,478,095
Sberbank GDR	78,820		34,254,585
Surgutneftegaz ADRb	1,796,933		106,378,434
Vimpel-Communications Sponsored ADRa	844,000		67,908,240
			1,292,182,996
SOUTH AFRICA – 10.34%
African Bank Investments Ltd.	8,215,591		31,175,713
Alexander Forbes Ltd.a	8,164,152		18,464,837
Anglo Platinum Ltd.	356,903		50,542,407
AngloGold Ashanti Ltd.	930,130		40,283,083
AVI Ltd.	3,403,408		9,358,635
Barloworld Ltd.	1,782,732		42,501,440
Bidvest Group Ltd.	2,105,974		40,826,356
Consol Ltd.	3,403,408		8,960,893
Edgars Consolidated Stores Ltd.	3,828,150		23,316,383
FirstRand Ltd.	22,306,088		73,450,952

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Shares	Value
Foschini Ltd.	4,871,828	$	43,618,913
Gold Fields Ltd.	2,781,026		47,779,826
Impala Platinum Holdings Ltd.	3,194,088		90,465,418
Imperial Holdings Ltd.a	2,029,457		45,760,652
Investec Ltd.	3,701,085		43,507,454
JD Group Ltd.	2,400,424		29,966,934
Liberty Group Ltd.	625,406		6,878,924
Metropolitan Holdings Ltd.	7,477,163		15,626,040
Mittal Steel South Africa Ltd.	2,831,003		42,757,164
MTN Group Ltd.	8,808,032		106,568,795
Nampak Ltd.	5,844,973		18,684,177
Naspers Ltd.	2,907,958		68,567,885
Nedbank Group Ltd.	2,660,289		49,286,286
Network Healthcare Holdings Ltd.a	14,603,032		28,309,399
Pick’n Pay Stores Ltd.	3,868,910		17,479,326
Reunert Ltd.	1,339,428		14,087,999
Sanlam Ltd.	13,516,660		35,216,574
Sappi Ltd.	345,690		4,871,685
Sasol Ltd.	3,627,916		116,220,207
Shoprite Holdings Ltd.	9,836,821		36,516,322
SPAR Group Ltd. (The)	1,357,276		8,399,350
Standard Bank Group Ltd.	7,589,330		104,866,796
Steinhoff International Holdings Ltd.	1,418,764		5,081,435
Telkom South Africa Ltd.	1,022,235		22,909,038
Tiger Brands Ltd.	1,302,864		31,276,045
Tongaat-Hulett Group Ltd.	1,228,209		20,263,853
Truworths International Ltd.	7,542,831		35,259,959
Woolworths Holdings Ltd.	10,964,568		30,692,891
			1,459,800,046
SOUTH KOREA – 15.29%
Hyundai Heavy Industries Co. Ltd.	285,120		48,746,225
Kookmin Bank ADRa	4,663,100		416,601,354
Korea Electric Power Corp. ADRa	12,289,688		258,206,345
KT Corp. ADRa	5,971,300		134,234,824
LG.Philips LCD Co. Ltd. ADRa,b	5,291,880		85,516,781
POSCO ADR	5,175,408		479,760,322

Security	Shares	Value
Samsung Electronics Co. Ltd. GDRe	1,952,300	$	586,178,075
Samsung Heavy Industries Co. Ltd.	1,080,000		26,492,514
SKTelecom Co. Ltd. ADR	5,411,884		123,390,955
			2,159,127,395
TAIWAN – 10.93%
AU Optronics Corp. ADRb	11,282,592		159,648,677
Chunghwa Telecom Co. Ltd. Sponsored ADR	14,277,948		275,421,617
Siliconware Precision Industries Co. ADRc	34,833,568		316,288,797
Taiwan Semiconductor Manufacturing Co. Ltd. ADR	46,741,044		518,825,588
United Microelectronics Corp. ADRb	82,806,597		273,261,770
			1,543,446,449
THAILAND – 2.28%
Advanced Info Service PCL	6,472,400		14,203,057
Aromatics Thailand PCL	8,478,300		10,863,212
Bangkok Bank PCL	7,865,600		26,180,053
Bangkok Expressway PCL	15,628,400		10,817,891
Banpu PCL	2,511,000		13,830,839
Charoen Pokphand Foods PCL	28,000		3,827
Electricity Generating PCL	3,378,700		9,902,228
Kasikornbank PCL	12,016,400		23,360,306
Kiatnakin Bank PCL	6,273,100		5,497,046
Krung Thai Bank PCL	14,309,100		4,889,118
PTT Chemical PCL	5,131,968		11,790,678
PTT Exploration & Production PCL	13,444,400		38,808,577
PTT PCL	7,471,500		45,775,317
Ratchaburi Electricity Generating Holding PCL	27,707,600		36,113,735
Siam Cement PCL	2,511,000		17,602,887
Siam City Cement PCL	508,400		4,073,190
Siam Makro PCL	10,876,800		26,431,105
Thai Airways International PCL	2,353,600		2,929,001

32 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Shares	Value
Thai Union Frozen Products PCL	10,044,000	$	6,804,477
Thanachart Capital PCL	15,118,900		5,388,474
Tisco Bank PCL	6,344,700		3,961,933
United Broadcasting Corp. PCLa,d	5,658,800		3,000,247
			322,227,198
TURKEY – 1.10%
Adana Cimento Sanayi TAS Class Ab	3,207,552		20,975,507
AkbankTAS b	3,290,756		21,635,938
Akcansa Cimento Sanayi ve Ticaret ASb	442,267		2,860,903
Arcelik ASb	793,071		5,354,421
Dogan Yayin Holding ASa,b	2,296,528		7,663,211
Eregli Demir ve Celik Fabrikalari TASb	1,468,972		12,046,713
Hurriyet Gazetecilik ve Matbaacilik ASb	1,831,487		5,023,803
Tofas Turk Otomobil Fabrikasi ASb	5,980,077		22,195,408
Trakya Cam Sanayii ASb	141,872		411,223
Tupras-Turkiye Petrol Rafinerileri ASb	729,326		14,050,289
Turk Sise ve Cam Fabrikalari ASa,b	2,774,418		11,180,051
Turkiye Garanti Bankasi ASb	3,980,304		15,195,222
Yapi ve Kredi Bankasi ASa,b	7,510,168		16,246,811
			154,839,500
TOTAL COMMON STOCKS (Cost: $11,236,785,612)			13,806,866,342
PREFERRED STOCKS – 1.43%
BRAZIL – 1.43%
Petroleo Brasileiro SA ADR	2,483,208		202,580,109
			202,580,109
TOTAL PREFERRED STOCKS (Cost: $167,942,617)			202,580,109

Security	Shares or Principal		Value
EXCHANGE-TRADED FUNDS – 0.55%
iShares MSCI Malaysia Index Fundb,c		902,055	$	9,083,694
iShares MSCI South Korea Index Fundb,c		562,297		27,546,930
iShares MSCI Taiwan Index Fundb,c		2,897,456		40,361,562
TOTAL EXCHANGE-TRADED FUNDS (Cost: $67,335,463)				76,992,186
SHORT-TERM INVESTMENTS – 7.21%
CERTIFICATES OF DEPOSITf – 0.34%
Credit Suisse First Boston NY 5.28% - 5.43%,     04/23/07 - 08/21/07	$	10,997,597		10,997,597
Deutsche Bank AG 5.35%, 08/08/07		18,329,327		18,329,327
Washington Mutual Bank 5.33%, 03/19/07		18,329,327		18,329,327
				47,656,251
COMMERCIAL PAPERf – 1.62%
Amstel Funding Corp. 5.22%, 04/16/07 - 04/17/07e		6,973,283		6,926,135
BNP Paribas Finance Inc. 5.12%, 06/06/07		2,566,106		2,530,740
Bryant Park Funding LLC 5.27%, 03/06/07e		1,806,832		1,805,509
Cantabric Finance LLC 5.25%, 03/06/07e		5,865,385		5,861,108
Cheyne Finance LLC 5.24%, 04/12/07 - 04/23/07e		5,498,798		5,459,312
Concord Minutemen Capital Co. LLC 5.29%, 03/19/07e		3,736,763		3,726,880
Crown Point Capital Co. LLC 5.20%, 07/18/07e		8,469,249		8,299,205
Edison Asset Securitization LLC 5.21%, 04/11/07e		3,038,489		3,020,460

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Principal		Value
Five Finance Inc. 5.22%, 04/20/07e	$	3,372,596	$	3,348,145
General Electric Capital Corp. 5.12% - 5.20%,     06/04/07 - 07/17/07e		12,830,529		12,610,161
Giro Funding Corp. 5.25%,     03/05/07 - 03/12/07e		12,024,039		12,009,541
Grampian Funding LLC 5.14% - 5.23%,     04/23/07 - 06/06/07e		14,296,875		14,119,309
Harrier Finance Funding LLC 5.12%, 06/06/07e		7,331,731		7,230,684
Irish Permanent Treasury PLC 5.18%, 07/10/07		3,665,865		3,596,766
KKR Pacific Funding Trust 5.29%, 03/13/07e		9,164,664		9,148,503
Lexington Parker Capital Co. LLC 5.18% - 5.20%,     05/17/07 - 07/25/07e		9,263,495		9,105,821
Liberty Street Funding Corp. 5.27%, 03/06/07e		879,808		879,164
Lockhart Funding LLC 5.25%,     05/04/07 - 05/14/07e		16,540,092		16,382,981
Nationwide Building Society 5.21%, 04/13/07e		6,965,144		6,921,800
Nestle Capital Corp. 5.19%, 08/09/07		4,399,039		4,296,933
Sedna Finance Inc. 5.22%, 04/17/07e		4,179,087		4,150,606
Simba Funding Corp. 5.20%, 07/23/07e		7,331,731		7,179,231
Societe Generale 5.18%, 05/16/07		18,329,327		18,128,886
Thames Asset Global Securitization No. 1 Inc. 5.25% - 5.28%,     03/02/07 - 03/12/07e		27,930,669		27,903,659

Security	Shares or Principal		Value
Thornburg Mortgage Capital Resources LLC 5.28%, 03/12/07e	$	5,366,827	$	5,358,169
Three Pillars Funding Corp. 5.26%,     03/01/07 - 03/12/07e		3,849,012		3,845,982
Tulip Funding Corp. 5.29%, 03/15/07e		14,074,064		14,045,110
Westpac Banking Corp. 5.20%, 07/12/07e		6,598,558		6,471,792
Zela Finance Inc. 5.20%, 07/16/07e		4,399,039		4,311,987
				228,674,579
MEDIUM-TERM NOTES – 0.15%
Bank of America N.A. 5.28%, 04/20/07		1,832,933		1,832,933
Cullinan Finance Corp. 5.71%, 06/28/07e		5,498,798		5,498,798
K2 USA LLC 5.39%, 06/04/07e		5,498,798		5,498,798
Sigma Finance Inc. 5.13% - 5.51%,     03/30/07 - 06/18/07e		8,578,125		8,578,125
				21,408,654
MONEY MARKET FUNDS – 0.04%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%c,g		5,552,948		5,552,948
				5,552,948
REPURCHASE AGREEMENTSf – 0.99%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $ 14,665,645 (collateralized by non-U.S. Government debt securities, value $ 15,115,292, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	14,663,462		14,663,462

34 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Principal		Value
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $10,999,236 (collateralized by non-U.S. Government debt securities, value $12,106,908, 0.00% to 9.20%, 10/17/18 to 11/25/52).	$	10,997,596	$	10,997,596
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $733,282 (collateralized by non-U.S. Government debt securities, value $770,440, 5.43%, 3/15/08).		733,173		733,173
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $10,999,233 (collateralized by non-U.S. Government debt securities, value $11,850,231, 0.00% to 10.00%, 5/27/33 to 8/25/46).		10,997,596		10,997,596
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $14,665,645 (collateralized by non-U.S. Government debt securities, value $15,408,792, 4.91% to 6.31%, 10/25/33 to 8/25/46).		14,663,462		14,663,462
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $8,066,118 (collateralized by non-U.S. Government debt securities, value $8,690,991, 0.00% to 10.00%, 5/27/33 to 8/25/46).		8,064,904		8,064,904

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $4,399,706 (collateralized by non-U.S. Government debt securities, value $4,900,706, 0.00% to 10.00%, 5/27/33 to 2/28/37).	$	4,399,039	$	4,399,039
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $2,720,990 (collateralized by non-U.S. Government debt securities, value $2,858,870, 4.52% to 6.89%, 1/15/09 to 10/25/36).		2,720,585		2,720,585
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $30,797,940 (collateralized by non-U.S. Government debt securities, value $33,952,582, 0.00% to 10.00%, 4/1/07 to 12/31/49).		30,793,270		30,793,270
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $3,666,411 (collateralized by non-U.S. Government debt securities, value $3,852,445, 3.72% to 5.99%, 12/15/36 to 6/1/46).		3,665,865		3,665,865

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Principal		Value
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $1,833,208 (collateralized by non-U.S. Government debt securities, value $1,926,329, 6.25% to 9.56%, 5/15/11 to 2/1/30).	$	1,832,933	$	1,832,933
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $7,332,823 (collateralized by non-U.S. Government debt securities, value $7,704,434, 1.63% to 14.50%, 5/1/07 to 9/18/37).		7,331,731		7,331,731
Morgan Stanley 5.36%, due 3/1/07, maturity value $7,332,823 (collateralized by non-U.S. Government debt securities, value $7,706,093, 0.00% to 10.00%, 3/1/07 to 2/28/37).		7,331,731		7,331,731
Morgan Stanley 5.51%, due 2/4/08, maturity value $5,394,574 (collateralized by non-U.S. Government debt securities, value $6,086,369, 0.00% to 10.00%, 3/1/07 to 2/28/37).h		5,132,212		5,132,212
Wachovia Capital 5.38%, due 3/1/07, maturity value $16,132,219 (collateralized by non-U.S. Government debt securities, value $16,949,671, 0.00% to 8.32%, 2/15/08 to 3/15/49).		16,129,808		16,129,808
				139,457,367

Security	Principal		Value
TIME DEPOSITSf – 0.30%
Bank of Nova Scotia
5.30%, 03/02/07	$	3,074,635	$	3,074,635
Chase Bank USA N.A.
5.38%, 03/01/07		10,997,596		10,997,596
Citibank N.A.
5.47%, 03/01/07		10,997,596		10,997,596
Deutsche Bank AG
5.38%, 03/01/07		17,220,110		17,220,110
				42,289,937
VARIABLE & FLOATING RATE NOTESf – 3.77%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08e		18,769,231		18,771,099
American Express Centurion Bank
5.41%, 07/19/07		8,064,904		8,068,537
American Express Credit Corp.
5.42%, 03/05/08		2,199,519		2,200,590
AmeriCredit Automobile Receivables Trust
5.35%, 03/06/07		334,142		334,142
Arkle Master Issuer PLC
Series 2006-1A Class 1A 5.30%, 11/19/07e		5,498,798		5,498,798
ASIF Global Financing
5.40%, 05/03/07e		733,173		733,240
Australia & New Zealand Banking Group Ltd.
5.32%, 02/22/08e		4,765,625		4,765,625
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08e		10,631,010		10,631,315
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07e		18,695,914		18,696,255
BMW US Capital LLC
5.32%, 01/15/08e		7,331,731		7,331,731
BNP Paribas
5.33%, 11/19/07e		13,563,702		13,563,702

36 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Principal		Value
Brigantine High Grade Funding Ltd.
5.40%, 09/05/07e	$	7,038,462	$	7,037,803
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07e		5,352,164		5,352,163
CC USA Inc.
5.36%, 07/30/07e		3,665,865		3,666,067
Commodore CDO Ltd.
5.44%, 12/12/07e		1,832,933		1,832,933
Credit Agricole SA
5.33%, 11/23/07		7,331,731		7,331,731
Credit Suisse First Boston NY
5.36%, 04/24/07		3,665,865		3,665,890
Cullinan Finance Corp.
5.36%, 04/25/07e		1,832,933		1,832,933
DaimlerChrysler Auto Trust
Series 2006-C Class A1 5.33%, 10/08/07e		562,405		562,405
DEPFA Bank PLC
5.40%, 12/14/07e		7,331,731		7,331,731
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07e		8,431,491		8,431,633
Eli Lilly Services Inc.
5.31%, 03/01/07e		4,893,930		4,893,930
Fifth Third Bancorp
5.32%, 02/22/08e		14,663,462		14,663,462
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07e		4,765,625		4,765,385
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08e		7,698,318		7,699,075
Granite Master Issuer PLC
5.29%, 08/20/07e		25,661,058		25,661,058
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07e		9,531,250		9,531,302
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		10,997,596		10,998,303

Security	Principal		Value
HBOS Treasury Services PLC
5.46%, 01/24/08e	$	7,331,731	$	7,331,731
Holmes Financing PLC
5.29%, 07/16/07e		12,830,529		12,830,529
JP Morgan Securities Inc.
5.40%, 11/16/07		14,663,462		14,663,462
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08h		20,162,260		20,162,260
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07e		5,498,798		5,498,703
Kestrel Funding LLC
5.30%, 07/11/07e		2,932,692		2,932,579
Kommunalkredit Austria AG
5.32%, 02/08/08e		4,399,039		4,399,039
Leafs LLC
5.32%, 01/22/08e		7,103,494		7,103,494
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07e		8,064,904		8,064,742
Lothian Mortgages Master Issuer PLC
5.29%, 04/24/07e		2,584,814		2,584,814
Marshall & Ilsley Bank
5.32%, 02/15/08		4,032,452		4,032,452
Master Funding LLC
5.35%, 04/25/07 - 05/25/07e		13,268,453		13,268,454
Merrill Lynch & Co. Inc.
5.46%, 05/30/07h		8,064,904		8,064,904
Metropolitan Life Global Funding I
5.33%, 03/06/08e		10,997,596		10,997,596
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07e,h		733,173		733,173
Mound Financing PLC
5.29%, 05/08/07e		6,891,827		6,891,827
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08e		11,730,770		11,730,636

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2007

Security	Principal		Value
National City Bank of Indiana
5.34%, 05/21/07	$	3,665,865	$	3,665,934
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08e		24,194,712		24,197,436
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08e		7,350,060		7,349,087
Northern Rock PLC
5.38%, 02/01/08e		8,798,077		8,798,243
Northlake CDO I
5.42%, 09/06/07e		2,199,519		2,199,519
Pricoa Global Funding I
5.31%, 02/27/08e		9,897,837		9,897,837
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07e		10,631,010		10,630,933
Skandinaviska Enskilda Banken
5.32%, 02/15/08e		7,331,731		7,331,731
Strips III LLC
5.37%, 07/24/07e		1,491,880		1,491,880
SunTrust Bank
5.29%, 05/01/07		7,331,731		7,331,795
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07e		17,889,424		17,888,833
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07e		12,097,356		12,097,356
Wachovia Asset Securitization Inc.
5.31%, 03/25/07e		8,276,199		8,276,199
Wachovia Bank N.A.
5.36%, 05/22/07		14,663,462		14,663,462
Wal-Mart Stores Inc.
5.50%, 07/16/07e		5,498,798		5,500,190
Wells Fargo & Co.
5.33%, 11/15/07e		3,665,865		3,666,011

Security	Principal		Value
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07e	$	5,498,798	$	5,498,820
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07e		21,995,193		21,993,221
Wind Master Trust
5.31%, 07/25/07e		2,932,692		2,932,692
				532,554,412
TOTAL SHORT-TERM INVESTMENTS (Cost: $1,017,594,148)				1,017,594,148
TOTAL INVESTMENTS IN SECURITIES – 106.98% (Cost: $12,489,657,840)				15,104,032,785
Other Assets, Less Liabilities – (6.98)%				(985,666,697	)
NET ASSETS – 100.00%			$	14,118,366,088

ADR – American Depositary Receipts

GDR – Global Depositary Receipts

^a Non-income earning security.

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

^c Affiliated issuer. See Note 2.

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

^e This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^f All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

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

^h The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

38 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.92%
AIRLINES – 1.05%
Cathay Pacific Airways Ltd.a	5,705,000	$	14,225,439
			14,225,439
APPAREL – 1.02%
Yue Yuen Industrial Holdings Ltd.a	3,993,500		13,801,889
			13,801,889
BANKS – 13.08%
Bank of East Asia Ltd.	8,671,700		49,617,269
BOC Hong Kong Holdings Ltd.	22,249,500		53,827,368
Hang Seng Bank Ltd.a	4,593,700		62,564,121
Wing Hang Bank Ltd.	1,047,000		11,847,318
			177,856,076
CHEMICALS – 1.02%
Kingboard Chemical Holdings Co. Ltd.	3,288,500		13,806,792
			13,806,792
DISTRIBUTION & WHOLESALE – 7.96%
Esprit Holdings Ltd.	6,220,500		64,814,293
Li & Fung Ltd.	13,693,000		43,468,172
			108,282,465
DIVERSIFIED FINANCIAL SERVICES – 4.83%
Hong Kong Exchanges & Clearing Ltd.	6,372,000		65,617,987
			65,617,987
ELECTRIC – 8.94%
CLP Holdings Ltd.	10,839,700		79,435,355
Hongkong Electric Holdings Ltd.	8,329,500		42,168,340
			121,603,695
ELECTRICAL COMPONENTS & EQUIPMENT – 0.46%
Johnson Electric Holdings Ltd.a	8,557,500		6,243,712
			6,243,712
ENGINEERING & CONSTRUCTION – 3.19%
Cheung Kong Infrastructure Holdings Ltd.a	2,677,000		9,389,015
New World Development Co. Ltd.a	15,431,800		34,015,027
			43,404,042

Security	Shares	Value
GAS – 3.44%
Hong Kong & China Gas Co. Ltd. (The)a	21,415,663	$	46,766,152
			46,766,152
HAND & MACHINE TOOLS – 0.63%
Techtronic Industries Co. Ltd.	6,275,500		8,595,145
			8,595,145
HOLDING COMPANIES - DIVERSIFIED – 16.11%
Hutchison Whampoa Ltd.	12,749,800		121,340,403
Melco International Development Ltd.a	4,397,000		8,498,739
Swire Pacific Ltd. Class A	5,587,000		63,219,641
Wharf Holdings Ltd. (The)	7,341,000		26,028,916
			219,087,699
LODGING – 1.45%
Shangri-La Asia Ltd.	7,598,000		19,694,520
			19,694,520
MEDIA – 0.78%
Television Broadcasts Ltd.	1,619,000		10,538,017
			10,538,017
REAL ESTATE – 25.56%
Cheung Kong (Holdings) Ltd.	8,987,000		110,147,492
Hang Lung Properties Ltd.	13,692,000		36,191,621
Henderson Land Development Co. Ltd.	5,252,000		29,781,703
Hopewell Holdings Ltd.	3,740,000		14,385,904
Hysan Development Co. Ltd.	3,788,000		10,424,843
Kerry Properties Ltd.a	2,852,500		14,167,019
Shui On Land Ltd.b	10,269,000		9,332,706
Shun Tak Holdings Ltd.a	5,533,000		8,201,444
Sino Land Co. Ltd.	7,756,000		17,830,570
Sun Hung Kai Properties Ltd.	8,198,000		97,014,336
			347,477,638
REAL ESTATE INVESTMENT TRUSTS – 2.16%
Link REIT (The)	12,551,000		29,335,952
			29,335,952
RETAIL – 0.31%
Giordano International Ltd.a	9,128,000		4,241,343
			4,241,343

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
SEMICONDUCTORS – 0.64%
ASM Pacific Technology Ltd.a		1,039,500	$	6,067,509
Solomon Systech International Ltd.a		13,692,000		2,699,036
				8,766,545
TELECOMMUNICATIONS – 4.70%
Foxconn International Holdings Ltd.a,b		12,551,000		33,175,653
Hutchison Telecommunications International Ltd.b		8,585,000		17,912,202
PCCW Ltd.a		21,679,576		12,793,012
				63,880,867
TEXTILES – 0.19%
Texwinca Holdings Ltd.a		3,602,000		2,558,926
				2,558,926
TRANSPORTATION – 2.40%
MTR Corp. Ltd.a		8,334,083		22,029,212
Orient Overseas International Ltd.		1,301,200		10,626,392
				32,655,604
TOTAL COMMON STOCKS (Cost: $1,155,100,896)				1,358,440,505
SHORT-TERM INVESTMENTS – 11.26%
CERTIFICATES OF DEPOSITc– 0.52%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	1,641,824		1,641,824
Deutsche Bank AG
5.35%, 08/08/07		2,736,373		2,736,373
Washington Mutual Bank
5.33%, 03/19/07		2,736,373		2,736,373
				7,114,570
COMMERCIAL PAPERc – 2.51%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d		1,041,037		1,034,011
BNP Paribas Finance Inc.
5.12%, 06/06/07		383,092		377,812

Security	Principal		Value
Bryant Park Funding LLC
5.27%, 03/06/07d	$	269,741	$	269,543
Cantabric Finance LLC
5.25%, 03/06/07d		875,639		875,001
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		820,912		815,017
Concord Minutemen Capital Co. LLC
5.29%, 03/19/07d		557,859		556,383
Crown Point Capital Co. LLC
5.20%, 07/18/07d		1,264,369		1,238,983
Edison Asset Securitization LLC
5.21%, 04/11/07d		453,614		450,922
Five Finance Inc.
5.22%, 04/20/07d		503,493		499,842
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07d		1,915,461		1,882,562
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d		1,795,061		1,792,896
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07d		2,134,371		2,107,863
Harrier Finance Funding LLC
5.12%, 06/06/07d		1,094,549		1,079,464
Irish Permanent Treasury PLC
5.18%, 07/10/07		547,275		536,959
KKR Pacific Funding Trust
5.29%, 03/13/07d		1,368,187		1,365,774
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07d		1,382,941		1,359,402
Liberty Street Funding Corp.
5.27%, 03/06/07d		131,346		131,250
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		2,469,259		2,445,804
Nationwide Building Society
5.21%, 04/13/07d		1,039,822		1,033,351
Nestle Capital Corp.
5.19%, 08/09/07		656,730		641,486

40 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
Sedna Finance Inc. 5.22%, 04/17/07d	$	623,893	$	619,641
Simba Funding Corp. 5.20%, 07/23/07d		1,094,549		1,071,783
Societe Generale 5.18%, 05/16/07		2,736,373		2,706,449
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07d		4,169,751		4,165,719
Thornburg Mortgage Capital Resources LLC 5.28%, 03/12/07d		801,210		799,917
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07 d		574,616		574,164
Tulip Funding Corp. 5.29%, 03/15/07d		2,101,108		2,096,785
Westpac Banking Corp. 5.20%, 07/12/07d		985,094		966,170
Zela Finance Inc. 5.20%, 07/16/07d		656,730		643,734
				34,138,687
MEDIUM-TERM NOTESc – 0.24%
Bank of America N.A. 5.28%, 04/20/07		273,637		273,637
Cullinan Finance Corp. 5.71%, 06/28/07d		820,912		820,912
K2 USA LLC 5.39%, 06/04/07d		820,912		820,912
Sigma Finance Inc. 5.13% - 5.51%,     03/30/07 - 06/18/07d		1,280,622		1,280,622
				3,196,083
MONEY MARKET FUNDS – 0.15%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%e,f		2,063,042		2,063,042
				2,063,042

Security	Principal		Value
REPURCHASE AGREEMENTSc – 1.53%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $2,189,424 (collateralized by non-U.S. Government debt securities, value $2,256,552, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	2,189,098	$	2,189,098
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $1,642,069 (collateralized by non-U.S. Government debt securities, value $1,807,432, 0.00% to 9.20%, 10/17/18 to 11/25/52).		1,641,824		1,641,824
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $109,471 (collateralized by non-U.S. Government debt securities, value $115,018, 5.43%, 3/15/08).		109,455		109,455
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $ 1,642,068 (collateralized by non-U.S. Government debt securities, value $1,769,113, 0.00% to 10.00%, 5/27/33 to 8/25/46).		1,641,824		1,641,824
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $ 2,189,424 (collateralized by non-U.S. Government debt securities, value $2,300,368, 4.91% to 6.31%, 10/25/33 to 8/25/46).		2,189,098		2,189,098
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $ 1,204,185 (collateralized by non-U.S. Government debt securities, value $1,297,472, 0.00% to 10.00%, 5/27/33 to 8/25/46).		1,204,004		1,204,004

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2007

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $ 656,830 (collateralized by non-U.S. Government debt securities, value $731,623, 0.00% to 10.00%, 5/27/33 to 2/28/37).	$	656,730	$	656,730
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $406,214 (collateralized by non-U.S. Government debt securities, value $426,799, 4.52% to 6.89%, 1/15/09 to 10/25/36).		406,154		406,154
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $4,597,804 (collateralized by non-U.S. Government debt securities, value $5,068,758, 0.00% to 10.00%, 4/1/07 to 12/31/49).		4,597,107		4,597,107
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $547,356 (collateralized by non-U.S. Government debt securities, value $575,129, 3.72% to 5.99%, 12/15/36 to 6/1/46).		547,275		547,275
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $273,678 (collateralized by non-U.S. Government debt securities, value $287,580, 6.25% to 9.56%, 5/15/11 to 2/1/30).		273,637		273,637
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $1,094,712 (collateralized by non-U.S. Government debt securities, value $1,150,190, 1.63% to 14.50%, 5/1/07 to 9/18/37).		1,094,549		1,094,549

Security	Principal		Value
Morgan Stanley 5.36%, due 3/1/07, maturity value $1,094,712 (collateralized by non-U.S. Government debt securities, value $1,150,437, 0.00% to 10.00%, 3/1/07 to 2/28/37).	$	1,094,549	$	1,094,549
Morgan Stanley 5.51%, due 2/4/08, maturity value $805,352 (collateralized by non-U.S. Government debt securities, value $908,630, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		766,184		766,184
Wachovia Capital 5.38%, due 3/1/07, maturity value $2,408,368 (collateralized by non-U.S. Government debt securities, value $2,530,405, 0.00% to 8.32%, 2/15/08 to 3/15/49).		2,408,008		2,408,008
				20,819,496
TIME DEPOSITSc – 0.46%
Bank of Nova Scotia 5.30%, 03/02/07		459,010		459,010
Chase Bank USA N.A. 5.38%, 03/01/07		1,641,824		1,641,824
Citibank N.A. 5.47%, 03/01/07		1,641,824		1,641,824
Deutsche Bank AG 5.38%, 03/01/07		2,570,779		2,570,779
				6,313,437
VARIABLE & FLOATING RATE NOTESc– 5.85%
Allstate Life Global Funding II 5.30% - 5.40%,     02/15/08 - 03/07/08d		2,802,046		2,802,324
American Express Centurion Bank 5.41%, 07/19/07		1,204,004		1,204,547

42 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2007

Security	Principal		Value
American Express Credit Corp. 5.42%, 03/05/08	$	328,365	$	328,525
AmeriCredit Automobile Receivables Trust 5.35%, 03/06/07		49,884		49,884
Arkle Master Issuer PLC Series 2006-1A Class 1A 5.30%, 11/19/07d		820,912		820,912
ASIF Global Financing 5.40%, 05/03/07d		109,455		109,465
Australia & New Zealand Banking Group Ltd. 5.32%, 02/22/08d		711,457		711,457
Bank of Ireland 5.30% - 5.32%,     08/14/07 - 02/20/08d		1,587,096		1,587,141
Beta Finance Inc. 5.29% - 5.41%,     04/25/07 - 07/25/07d		2,791,101		2,791,151
BMW US Capital LLC 5.32%, 01/15/08d		1,094,549		1,094,549
BNP Paribas 5.33%, 11/19/07d		2,024,916		2,024,916
Brigantine High Grade Funding Ltd. 5.40%, 09/05/07d		1,050,767		1,050,669
Carlyle Loan Investment Ltd. 5.37%, 04/13/07 - 07/15/07d		799,021		799,021
CC USA Inc. 5.36%, 07/30/07d		547,275		547,305
Commodore CDO Ltd. 5.44%, 12/12/07d		273,637		273,637
Credit Agricole SA 5.33%, 11/23/07		1,094,549		1,094,549
Credit Suisse First Boston NY 5.36%, 04/24/07		547,275		547,278
Cullinan Finance Corp. 5.36%, 04/25/07d		273,637		273,637
DaimlerChrysler Auto Trust Series 2006-C Class A1 5.33%, 10/08/07d		83,961		83,961

Security	Principal		Value
DEPFA Bank PLC 5.40%, 12/14/07d	$	1,094,549	$	1,094,549
Dorada Finance Inc. 5.33% - 5.41%,     06/27/07 - 07/17/07d		1,258,732		1,258,752
Eli Lilly Services Inc. 5.31%, 03/01/07d		730,612		730,612
Fifth Third Bancorp 5.32%, 02/22/08d		2,189,098		2,189,098
Five Finance Inc. 5.31% - 5.37%,     06/29/07 - 07/13/07d		711,457		711,421
General Electric Capital Corp. 5.28% - 5.45%,     07/09/07 - 02/22/08d		1,149,277		1,149,390
Granite Master Issuer PLC 5.29%, 08/20/07d		3,830,922		3,830,922
Harrier Finance Funding LLC 5.29% - 5.36%,     07/25/07 - 08/15/07d		1,422,914		1,422,922
Hartford Life Global Funding Trust 5.36% - 5.40%,     07/13/07 - 03/14/08		1,641,824		1,641,929
HBOS Treasury Services PLC 5.46%, 01/24/08d		1,094,549		1,094,549
Holmes Financing PLC 5.29%, 07/16/07d		1,915,461		1,915,461
JP Morgan Securities Inc. 5.40%, 11/16/07		2,189,098		2,189,098
JPMorgan Chase & Co. 5.29% - 5.45%,     07/27/07 - 02/29/08g		3,010,010		3,010,010
K2 USA LLC 5.20% - 5.33%,     04/02/07 - 06/28/07d		820,912		820,897
Kestrel Funding LLC 5.30%, 07/11/07d		437,820		437,803
Kommunalkredit Austria AG 5.32%, 02/08/08d		656,730		656,730
Leafs LLC 5.32%, 01/22/08d		1,060,476		1,060,476

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2007

Security	Principal		Value
Links Finance LLC
5.28% - 5.35%,
05/10/07 - 05/16/07d	$	1,204,004	$	1,203,980
Lothian Mortgages Master
Issuer PLC
5.29%, 04/24/07d		385,885		385,885
Marshall & Ilsley Bank
5.32%, 02/15/08		602,002		602,002
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d		1,980,839		1,980,838
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		1,204,004		1,204,004
Metropolitan Life Global Funding I
5.33%, 03/06/08d		1,641,824		1,641,824
Metropolitan Life Insurance
Funding Agreement
5.44%, 08/01/07d,g		109,455		109,455
Mound Financing PLC
5.29%, 05/08/07d		1,028,876		1,028,876
Natexis Banques Populaires
5.33% - 5.35%,
06/20/07 - 02/08/08d		1,751,279		1,751,259
National City Bank of Indiana
5.34%, 05/21/07		547,275		547,285
Nationwide Building Society
5.37% - 5.48%,
07/20/07 - 01/28/08d		3,612,013		3,612,419
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08d		1,097,286		1,097,141
Northern Rock PLC
5.38%, 02/01/08d		1,313,459		1,313,484
Northlake CDO I
5.42%, 09/06/07d		328,365		328,365
Pricoa Global Funding I
5.31%, 02/27/08d		1,477,641		1,477,641
Sedna Finance Inc.
5.32% - 5.34%,
05/25/07 - 08/21/07d		1,587,096		1,587,085
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		1,094,549		1,094,549

Security	Principal		Value
Strips III LLC
5.37%, 07/24/07d	$	222,722	$	222,722
SunTrust Bank
5.29%, 05/01/07		1,094,549		1,094,559
Tango Finance Corp.
5.27% - 5.34%,
04/25/07 - 07/16/07d		2,670,700		2,670,611
Union Hamilton Special
Funding LLC
5.36% - 5.37%,
03/28/07 - 06/21/07d		1,806,006		1,806,006
Wachovia Asset
Securitization Inc.
5.31%, 03/25/07d		1,235,548		1,235,548
Wachovia Bank N.A.
5.36%, 05/22/07		2,189,098		2,189,098
Wal-Mart Stores Inc.
5.50%, 07/16/07d		820,912		821,120
Wells Fargo & Co.
5.33%, 11/15/07d		547,275		547,296
WhistleJacket Capital Ltd.
5.28% - 5.35%,
04/18/07 - 06/13/07d		820,912		820,915
White Pine Finance LLC
5.28% - 5.32%,
05/22/07 - 08/20/07d		3,283,648		3,283,352
Wind Master Trust
5.31%, 07/25/07d		437,820		437,820
				79,504,686
TOTAL SHORT-TERM INVESTMENTS (Cost: $153,150,001)				153,150,001
TOTAL INVESTMENTS IN SECURITIES – 111.18% (Cost: $1,308,250,897)				1,511,590,506
Other Assets, Less Liabilities – (11.18)%				(151,994,449	)
NET ASSETS – 100.00%			$	1,359,596,057

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

^b Non-income earning security.

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

44 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2007

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Unaudited)

iSHARES^® MSCI MALAYSIA INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.79%
AGRICULTURE – 10.80%
British American Tobacco
(Malaysia) Bhd	1,784,700	$	22,671,753
Golden Hope Plantations Bhd	5,987,800		11,196,143
Highlands & Lowlands Bhd	2,079,400		3,442,912
IOI Corp. Bhd	9,432,800		51,970,608
Kuala Lumpur Kepong Bhd	5,181,300		15,530,588
			104,812,004
AIRLINES – 1.11%
AirAsia Bhda	11,338,600		5,276,025
Malaysian Airline System Bhda	3,471,800		5,500,568
			10,776,593
AUTO MANUFACTURERS – 1.36%
DRB-Hicom Bhd	8,408,400		4,512,644
Proton Holdings Bhd	3,439,800		7,070,100
Tan Chong Motor Holdings Bhd	4,713,800		1,655,145
			13,237,889
AUTO PARTS & EQUIPMENT– 0.76%
UMW Holdings Bhd	2,802,800		7,361,050
			7,361,050
BANKS – 26.17%
AMMB Holdings Bhd	19,237,400		18,342,254
Bumiputra-Commerce
Holdings Bhd	30,600,032		81,675,792
Hong Leong Bank Bhd	6,497,400		11,407,082
Malayan Banking Bhd	26,499,200		94,558,949
Public Bank Bhd	14,141,400		37,139,846
RHB Capital Bhd	8,790,600		10,991,387
			254,115,310
BEVERAGES – 0.34%
Guinness Anchor Bhd	1,911,000		3,273,194
			3,273,194
BUILDING MATERIALS – 0.69%
Lafarge Malayan Cement Bhd	16,052,400		6,690,409
			6,690,409
COMMERCIAL SERVICES – 1.79%
PLUS Expressways Bhd	20,766,200		17,428,669
			17,428,669

Security	Shares	Value
DIVERSIFIED FINANCIAL SERVICES – 2.32%
Bursa Malaysia Bhd	4,331,600	$	13,230,979
Hong Leong Credit Bhd	2,930,200		4,767,953
TA Enterprise Bhd	9,300,200		4,486,822
			22,485,754
ELECTRIC – 7.45%
Malakoff Bhd	7,516,600		21,672,184
Tenaga Nasional Bhd	14,778,450		50,625,578
			72,297,762
ENGINEERING & CONSTRUCTION – 7.26%
Gamuda Bhd	7,898,800		15,107,611
IJM Corp. Bhd	4,862,200		12,075,690
Malaysian Resources Corp. Bhda	10,701,600		5,285,118
MMC Corp. Bhd	4,236,200		6,590,719
Road Builder (Malaysia)
Holdings Bhd	4,585,500		5,550,248
Transmile Group Bhd	1,979,800		7,912,418
YTL Corp. Bhd	9,172,888		17,937,277
			70,459,081
ENTERTAINMENT – 6.53%
Berjaya Sports Toto Bhd	9,300,200		12,053,357
Magnum Corp. Bhd	11,083,800		9,492,264
Resorts World Bhd	6,808,800		29,155,581
Tanjong PLC	3,091,600		12,708,833
			63,410,035
FOOD – 1.08%
PPB Group Bhd	6,497,466		10,479,784
			10,479,784
GAS – 1.40%
Petronas Gas Bhd	5,505,200		13,594,057
			13,594,057
HOLDING COMPANIES - DIVERSIFIED – 5.80%
Mulpha International Bhda	10,446,800		5,039,992
Multi-Purpose Holdings Bhda	8,026,200		5,590,616
Sime Darby Bhd	20,511,400		45,671,973
			56,302,581
INSURANCE – 0.18%
Kurnia Asia Bhd	5,223,431		1,729,712
			1,729,712

46 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MALAYSIA INDEX FUND

February 28, 2007

Security	Shares	Value
LODGING – 5.10%
Genting Bhd	4,881,800	$	49,472,995
			49,472,995
MEDIA – 2.17%
Astro All Asia Networks PLC	6,624,800		9,928,690
Media Prima Bhd	8,281,000		5,673,537
Star Publications (Malaysia) Bhd	6,115,360		5,516,568
			21,118,795
OIL & GAS – 1.20%
Petronas Dagangan Bhd	3,439,800		5,597,162
Shell Refining Co.	2,066,400		6,016,923
			11,614,085
OIL & GAS SERVICES – 0.29%
Scomi Group Bhd	8,281,000		2,860,408
			2,860,408
REAL ESTATE – 2.81%
IGB Corp. Bhd	9,172,800		5,760,822
IOI Properties Bhd	1,146,650		3,404,271
KLCC Property Holdings Bhd	5,860,400		5,286,573
SP Setia Bhd	7,007,000		12,801,827
			27,253,493
SEMICONDUCTORS – 0.35%
Malaysian Pacific Industries Bhd	1,163,500		3,421,082
			3,421,082
TELECOMMUNICATIONS – 7.67%
Maxis Communications Bhd	12,177,600		40,673,114
Telekom Malaysia Bhd	11,720,800		33,793,914
			74,467,028
TRANSPORTATION – 5.16%
Malaysia International Shipping Corp. Bhd	15,449,400		41,016,106
Malaysian Bulk Carriers Bhd	3,312,400		3,479,769
Pos Malaysia & Services Holdings Bhd	4,331,600		5,638,623
			50,134,498
TOTAL COMMON STOCKS (Cost: $751,143,281)			968,796,268

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.18%
MONEY MARKET FUNDS – 0.18%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%b,c	1,749,437	$	1,749,437
			1,749,437
TOTAL SHORT-TERM INVESTMENTS (Cost: $1,749,437)			1,749,437
TOTAL INVESTMENTS IN SECURITIES – 99.97% (Cost: $752,892,718)			970,545,705
Other Assets, Less Liabilities – 0.03%			249,600
NET ASSETS – 100.00%		$	970,795,305

^a Non-income earning security.

^b Affiliated issuer. See Note 2.

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Unaudited)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.92%
BEVERAGES – 8.35%
Coca-Cola FEMSA
SAB de CV ADR	247,200	$	8,528,400
Fomento Economico
Mexicano SABa	4,476,236		49,574,654
Grupo Modelo SA de CV
Series Ca	5,603,200		28,834,242
			86,937,296
BUILDING MATERIALS – 16.24%
Cemex SA de CV Series CPOa,b	49,496,676		168,950,310
			168,950,310
DIVERSIFIED FINANCIAL SERVICES – 4.39%
Grupo Financiero Banorte
SAB de CV Series Oa	11,680,200		45,634,611
			45,634,611
ENGINEERING& CONSTRUCTION – 3.97%
Carso Infraestructura y
Construccion SA de CVa,b	5,586,600		4,949,962
Empresas ICA SAB de CVa,b	2,637,774		9,421,972
Grupo Aeroportuario del
Pacifico SA de CV Class Ha	3,626,100		15,047,568
Grupo Aeroportuario del
Sureste SA de CV ADR	267,554		11,924,882
			41,344,384
FOOD – 1.71%
Grupo Bimbo SA de CV Series Aa	3,832,100		17,807,833
			17,807,833
FOREST PRODUCTS & PAPER – 2.22%
Kimberly-Clark de Mexico
SA de CV Class Aa	5,505,200		23,092,050
			23,092,050
HOLDING COMPANIES - DIVERSIFIED – 4.53%
Alfa SAB de CV Class Aa	2,722,200		17,235,072
Grupo Carso SA de CV Series A1a	8,858,030		29,886,526
			47,121,598
HOME BUILDERS – 4.23%
Corporacion Geo SAB de CV
Series Ba,b	3,481,400		18,835,491

Security	Shares or Principal		Value
Desarrolladora Homex
SAB de CVa,b		1,297,830	$	11,795,812
Urbi Desarrollos Urbanos
SA de CVa,b		3,419,600		13,375,715
				44,007,018
MEDIA – 6.05%
Grupo Televisa SA Series CPOa		8,858,000		48,488,067
TV Azteca SA de CV Series CPOa		18,030,900		14,441,520
				62,929,587
MINING – 4.05%
Grupo Mexico SA de CVSeries Ba		7,951,600		34,714,340
Industrias Penoles SA de CV
Series CP a		762,200		7,412,364
				42,126,704
REAL ESTATE – 1.35%
Consorcio Ara SA de CVa		2,224,800		14,022,100
				14,022,100
RETAIL – 7.22%
Controladora Comercial
Mexicana SA de CVa		4,490,800		11,450,293
Organizacion Soriana SAB de
CV Class Ba		4,980,578		14,265,282
Wal-Mart de Mexico SA de
CV Series Va		12,779,500		49,414,372
				75,129,947
TELECOMMUNICATIONS – 35.61%
America Movil SAB de
CV Series La		114,877,040		251,531,523
Carso Global Telecom
Class A1a,b		7,605,342		26,239,179
Telefonos de Mexico SA de
CV Series La		63,839,400		92,825,072
				370,595,774
TOTAL COMMON STOCKS (Cost: $958,459,436)				1,039,699,212
SHORT-TERM INVESTMENTS – 6.22%
CERTIFICATES OF DEPOSITc – 0.29%
Credit Suisse First Boston NY
5.28% - 5.43%,
04/23/07 - 08/21/07	$	690,707		690,707

48 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2007

Security	Principal	Value
Deutsche Bank AG
5.35%, 08/08/07 $	1,151,177	$	1,151,177
Washington Mutual Bank
5.33%, 03/19/07	1,151,177		1,151,177
			2,993,061
COMMERCIAL PAPERc – 1.38%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d	437,959		435,004
BNP Paribas Finance Inc.
5.12%, 06/06/07	161,165		158,944
Bryant Park Funding LLC
5.27%, 03/06/07d	113,478		113,395
Cantabric Finance LLC
5.25%, 03/06/07d	368,377		368,108
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d	345,353		342,873
Concord Minutemen
Capital Co. LLC
5.29%, 03/19/07d	234,688		234,067
Crown Point Capital Co. LLC
5.20%, 07/18/07d	531,913		521,233
Edison Asset Securitization LLC
5.21%, 04/11/07d	190,833		189,701
Five Finance Inc.
5.22%, 04/20/07d	211,817		210,281
General Electric Capital Corp.
5.12% - 5.20%,
06/04/07 - 07/17/07d	805,824		791,984
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d	755,172		754,262
Grampian Funding LLC
5.14% - 5.23%,
04/23/07 - 06/06/07d	897,918		886,766
Harrier Finance Funding LLC
5.12%, 06/06/07d	460,471		454,125
Irish Permanent Treasury PLC
5.18%, 07/10/07	230,235		225,896
KKR Pacific Funding Trust
5.29%, 03/13/07d	575,589		574,574
Lexington Parker Capital Co. LLC
5.18% - 5.20%,
05/17/07 - 07/25/07d	581,796		571,893

Security	Principal		Value
Liberty Street Funding Corp.
5.27%, 03/06/07d	$	55,257	$	55,216
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		1,038,804		1,028,936
Nationwide Building Society
5.21%, 04/13/07d		437,447		434,725
Nestle Capital Corp.
5.19%, 08/09/07		276,283		269,870
Sedna Finance Inc.
5.22%, 04/17/07d		262,468		260,680
Simba Funding Corp.
5.20%, 07/23/07d		460,471		450,893
Societe Generale
5.18%, 05/16/07		1,151,177		1,138,589
Thames Asset Global
Securitization No. 1 Inc.
5.25% - 5.28%,
03/02/07 - 03/12/07d		1,754,192		1,752,495
Thornburg Mortgage
Capital Resources LLC
5.28%, 03/12/07d		337,065		336,521
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07d		241,738		241,547
Tulip Funding Corp.
5.29%, 03/15/07d		883,925		882,106
Westpac Banking Corp.
5.20%, 07/12/07d		414,424		406,462
Zela Finance Inc.
5.20%, 07/16/07d		276,283		270,815
				14,361,961
MEDIUM-TERM NOTESc – 0.13%
Bank of America N.A.
5.28%, 04/20/07		115,118		115,118
Cullinan Finance Corp.
5.71%, 06/28/07d		345,353		345,353
K2 USA LLC
5.39%, 06/04/07d		345,353		345,353
Sigma Finance Inc.
5.13% - 5.51%,
03/30/07 - 06/18/07d		538,751		538,751
				1,344,575

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
MONEY MARKET FUNDS – 0.11%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%e,f		1,138,909	$	1,138,909
				1,138,909
REPURCHASE AGREEMENTSc – 0.84%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $921,079 (collateralized by non-U.S. Government debt securities, value $949,319, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	920,942		920,942
BearStearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $690,809 (collateralized by non-U.S. Government debt securities, value $760,377, 0.00% to 9.20%, 10/17/18 to 11/25/52).		690,706		690,706
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $46,054 (collateralized by non-U.S. Government debt securities, value $48,388, 5.43%, 3/15/08).		46,047		46,047
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $690,809 (collateralized by non-U.S. Government debt securities, value $744,256, 0.00% to 10.00%, 5/27/33 to 8/25/46).		690,706		690,706
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $921,079 (collateralized by non-U.S. Government debt securities, value $967,753, 4.91% to 6.31%, 10/25/33 to 8/25/46).		920,942		920,942

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $506,594 (collateralized by non-U.S. Government debt securities, value $545,840, 0.00% to 10.00%, 5/27/33 to 8/25/46).	$	506,518	$	506,518
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $276,325 (collateralized by non-U.S. Government debt securities, value $307,790, 0.00% to 10.00%, 5/27/33 to 2/28/37).		276,283		276,283
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $170,892 (collateralized by non-U.S. Government debt securities, value $179,552, 4.52% to 6.89%, 1/15/09 to 10/25/36).		170,867		170,867
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $1,934,271 (collateralized by non-U.S. Government debt securities, value $2,132,399, 0.00% to 10.00%, 4/1/07 to 12/31/49).		1,933,978		1,933,978
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $230,269 (collateralized by non-U.S. Government debt securities, value $241,954, 3.72% to 5.99%, 12/15/36 to 6/1/46).		230,235		230,235
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $115,135 (collateralized by non-U.S. Government debt securities, value $120,984, 6.25% to 9.56%, 5/15/11 to 2/1/30).		115,118		115,118

50 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2007

Security	Principal		Value
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $ 460,540 (collateralized by non-U.S. Government debt securities, value $483,879, 1.63% to 14.50%, 5/1/07 to 9/18/37).	$	460,471	$	460,471
Morgan Stanley 5.36%, due 3/1/07, maturity value $460,540 (collateralized by non-U.S. Government debt securities, value $483,983, 0.00% to 10.00%, 3/1/07 to 2/28/37).		460,471		460,471
Morgan Stanley 5.51%, due 2/4/08, maturity value $338,808 (collateralized by non-U.S. Government debt securities, value $382,256, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		322,330		322,330
Wachovia Capital 5.38%, due 3/1/07, maturity value $1,013,187 (collateralized by non-U.S. Government debt securities, value $1,064,528, 0.00% to 8.32%, 2/15/08 to 3/15/49).		1,013,036		1,013,036
				8,758,650
TIME DEPOSITSc – 0.26%
Bank of Nova Scotia 5.30%, 03/02/07		193,103		193,103
Chase Bank USA N.A. 5.38%, 03/01/07		690,706		690,706
Citibank N.A. 5.47%, 03/01/07		690,706		690,706
Deutsche Bank AG 5.38%, 03/01/07		1,081,513		1,081,513
				2,656,028

Security	Principal		Value
VARIABLE& FLOATING RATE NOTESc– 3.21%
Allstate Life Global Funding II 5.30% - 5.40%,     02/15/08 - 03/07/08d	$	1,178,806	$	1,178,923
American Express Centurion Bank     5.41%, 07/19/07		506,518		506,746
American Express Credit Corp. 5.42%, 03/05/08		138,141		138,209
AmeriCredit Automobile Receivables Trust 5.35%, 03/06/07		20,986		20,986
Arkle Master Issuer PLC Series 2006-1A Class 1A 5.30%, 11/19/07d		345,353		345,353
ASIF Global Financing 5.40%, 05/03/07d		46,047		46,051
Australia & New Zealand Banking Group Ltd. 5.32%, 02/22/08d		299,306		299,306
Bank of Ireland 5.30% - 5.32%,     08/14/07 - 02/20/08d		667,683		667,702
Beta Finance Inc. 5.29% - 5.41%,     04/25/07 - 07/25/07d		1,174,201		1,174,221
BMW US Capital LLC 5.32%, 01/15/08d		460,471		460,471
BNP Paribas 5.33%, 11/19/07d		851,871		851,871
Brigantine High Grade Funding Ltd. 5.40%, 09/05/07d		442,052		442,011
Carlyle Loan Investment Ltd. 5.37%, 04/13/07 - 07/15/07d		336,144		336,144
CC USA Inc. 5.36%, 07/30/07d		230,235		230,248
Commodore CDO Ltd. 5.44%, 12/12/07d		115,118		115,118
Credit Agricole SA 5.33%, 11/23/07		460,471		460,471

SCHEDULES OF INVESTMENTS 51

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2007

Security	Principal		Value
Credit Suisse First Boston NY
5.36%, 04/24/07	$	230,235	$	230,237
Cullinan Finance Corp.
5.36%, 04/25/07d		115,118		115,118
DaimlerChrysler Auto Trust
Series 2006-C Class A1
5.33%, 10/08/07d		35,322		35,322
DEPFA Bank PLC
5.40%, 12/14/07d		460,471		460,471
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07d		529,542		529,551
Eli Lilly Services Inc.
5.31%, 03/01/07d		307,364		307,364
Fifth Third Bancorp
5.32%, 02/22/08d		920,942		920,942
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07d		299,306		299,291
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08d		483,495		483,542
Granite Master Issuer PLC
5.29%, 08/20/07d		1,611,648		1,611,648
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07d		598,612		598,615
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		690,706		690,751
HBOS Treasury Services PLC
5.46%, 01/24/08d		460,471		460,471
Holmes Financing PLC
5.29%, 07/16/07d		805,824		805,824
JP Morgan Securities Inc.
5.40%, 11/16/07		920,942		920,942
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08g		1,266,295		1,266,295
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07d		345,353		345,347

Security	Principal		Value
Kestrel Funding LLC
5.30%, 07/11/07d	$	184,188	$	184,181
Kommunalkredit Austria AG
5.32%, 02/08/08d		276,283		276,283
Leafs LLC
5.32%, 01/22/08d		446,137		446,136
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07d		506,518		506,508
Lothian Mortgages Master Issuer PLC
5.29%, 04/24/07d		162,340		162,340
Marshall & Ilsley Bank
5.32%, 02/15/08		253,259		253,259
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d		833,328		833,328
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		506,518		506,518
Metropolitan Life Global Funding I
5.33%, 03/06/08d		690,706		690,706
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07d,g		46,047		46,047
Mound Financing PLC
5.29%, 05/08/07d		432,843		432,843
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08d		736,754		736,745
National City Bank of Indiana
5.34%, 05/21/07		230,235		230,240
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08d		1,519,554		1,519,725
Newcastle Ltd.
5.34%, 04/24/07 – 01/24/08d		461,622		461,561
Northern Rock PLC
5.38%, 02/01/08d		552,565		552,576
Northlake CDO I
5.42%, 09/06/07d		138,141		138,141
Pricoa Global Funding I
5.31%, 02/27/08d		621,636		621,636

52 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INDEX FUND

February 28, 2007

Security	Principal		Value
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07d	$	667,683	$	667,678
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		460,471		460,471
Strips III LLC
5.37%, 07/24/07d		93,698		93,698
SunTrust Bank
5.29%, 05/01/07		460,471		460,475
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07d		1,123,549		1,123,512
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07d		759,777		759,777
Wachovia Asset Securitization Inc.
5.31%, 03/25/07d		519,788		519,788
Wachovia Bank N.A.
5.36%, 05/22/07		920,942		920,942
Wal-Mart Stores Inc.
5.50%, 07/16/07d		345,353		345,441
Wells Fargo & Co.
5.33%, 11/15/07d		230,235		230,245
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07d		345,353		345,355
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07d		1,381,413		1,381,289
Wind Master Trust
5.31%, 07/25/07d		184,188		184,188
				33,447,194
TOTAL SHORT-TERM INVESTMENTS (Cost: $64,700,378)				64,700,378
TOTAL INVESTMENTS IN SECURITIES – 106.14% (Cost: $1,023,159,814)				1,104,399,590
Other Assets, Less Liabilities – (6.14)%				(63,838,564	)
NET ASSETS – 100.00%			$	1,040,561,026

ADR – American Depositary Receipts

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

^b Non-income earning security.

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Unaudited)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.47%
AUSTRALIA – 66.02%
A.B.C. Learning Centres Ltd.a	958,205	$	5,164,321
AGL Energy Ltd.b	1,111,040		14,033,367
Alinta Ltd.	1,269,258		14,251,594
Alumina Ltd.	3,006,152		15,965,021
Amcor Ltd.	2,225,216		12,781,987
AMP Ltd.	4,829,961		39,237,466
Ansell Ltd.	399,302		3,665,440
APN News & Media Ltd.	719,823		3,374,748
Aristocrat Leisure Ltd.	908,792		12,030,189
ASX Ltd.	439,945		14,507,498
Australia & New Zealand Banking Group Ltd.	4,701,269		108,537,892
AXA Asia Pacific Holdings Ltd.	2,249,077		13,202,594
Babcock & Brown Ltd.	588,357		11,868,055
BHP Billiton Ltd.	8,967,168		191,691,899
Billabong International Ltd.	439,821		5,943,452
BlueScope Steel Ltd.	1,845,040		13,563,947
Boral Ltd.	1,563,105		10,345,848
Brambles Ltd.b	3,982,272		41,607,642
Caltex Australia Ltd.	360,358		6,340,471
Centro Properties Group	2,085,810		16,155,743
CFS Retail Property Trust	3,641,982		6,887,279
Challenger Financial Services Group Ltd.	921,312		3,339,360
Coca-Cola Amatil Ltd.	1,374,756		8,958,387
Cochlear Ltd.	140,691		6,290,053
Coles Group Ltd.	2,890,028		34,977,754
Commonwealth Bank of Australia	3,288,824		129,467,786
Commonwealth Property
Office Fund	3,732,960		4,059,113
Computershare Ltd.	1,180,609		9,330,516
CSL Ltd.	470,728		28,801,172
CSR Ltd.	2,251,872		6,440,936
DB RREEF Trust	6,923,922		9,520,204
Downer EDI Ltd.	794,798		4,596,756
Foster’s Group Ltd.	5,120,295		25,498,270
Futuris Corp. Ltd.	1,588,246		2,628,063
Goodman Fielder Ltd.	2,732,681		4,866,268
GPT Group	4,881,597		19,424,595

Security	Shares	Value
Harvey Norman Holdings Ltd.	1,458,364	$	4,998,663
Iluka Resources Ltd.	631,597		2,936,235
ING Industrial Fund	2,161,774		4,054,020
Insurance Australia Group Ltd.	4,446,762		20,952,880
Investa Property Group	3,998,193		7,466,392
James Hardie Industries NV	1,215,761		9,119,769
John Fairfax Holdings Ltd.	2,593,514		9,829,521
Leighton Holdings Ltd.	365,006		8,944,561
Lend Lease Corp. Ltd.	939,921		13,368,024
Lion Nathan Ltd.	759,004		4,957,894
Macquarie Airports	1,769,222		5,158,016
Macquarie Bank Ltd.	644,492		40,113,292
Macquarie Communications Infrastructure Group	847,813		3,968,124
Macquarie Goodman Group	3,524,782		19,885,840
Macquarie Infrastructure Group	6,828,192		20,660,252
Macquarie Office Trust	5,175,553		6,524,923
Mirvac Group	2,571,116		11,466,655
Multiplex Group	1,627,427		5,655,080
National Australia Bank Ltd.	4,176,928		132,833,253
Newcrest Mining Ltd.	863,676		15,346,030
OneSteel Ltd.	1,509,488		5,970,793
Orica Ltd.	799,794		15,597,393
Origin Energy Ltd.	2,139,499		14,936,349
Pacific Brands Ltd.	1,351,001		3,119,047
Paladin Resources Ltd.a,b	1,097,934		7,872,566
PaperlinX Ltd.	1,195,225		3,804,781
Perpetual Ltd.	106,943		6,286,224
Publishing & Broadcasting Ltd.	344,252		5,216,202
Qantas Airways Ltd.	2,531,893		10,274,276
QBE Insurance Group Ltd.	2,063,488		52,029,612
Rinker Group Ltd.	2,299,808		33,850,658
Rio Tinto Ltd.a	732,704		43,646,459
Santos Ltd.	1,556,128		11,476,774
Sonic Healthcare Ltd.	697,449		7,726,742
Stockland	3,690,970		25,098,627
Suncorp-Metway Ltd.a	1,437,925		24,665,693
Sydney Roads Group	2,410,513		2,488,166
Symbion Health Ltd.	1,666,158		4,975,699
Tabcorp Holdings Ltd.	1,347,136		17,142,834
Tattersall’s Ltd.	2,758,112		9,996,970

54 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2007

Security	Shares	Value
Telstra Corp. Ltd.	7,295,144	$	24,487,369
Telstra Corp. Ltd.
Installment Receipt	3,816,960		8,511,433
Toll Holdings Ltd.	1,384,938		21,137,743
Transurban Groupa	2,151,569		12,799,732
Wesfarmers Ltd.	973,383		27,956,317
Westfield Group	3,862,656		66,197,860
Westpac Banking Corp.	4,688,568		94,058,333
Woodside Petroleum Ltd.a	1,197,504		35,157,540
Woolworths Ltd.	3,086,272		66,145,722
WorleyParsons Ltd.	375,746		8,112,292
Zinifex Ltd.	1,266,381		16,683,967
			1,895,019,283
HONG KONG – 20.37%
ASM Pacific Technology Ltd.a	450,000		2,626,627
Bank of East Asia Ltd.	3,763,200		21,532,077
BOC Hong Kong Holdings Ltd.	9,520,000		23,031,374
Cathay Pacific Airways Ltd.a	2,464,000		6,143,993
Cheung Kong (Holdings) Ltd.	3,888,000		47,652,548
Cheung Kong Infrastructure Holdings Ltd.a	1,125,000		3,945,701
CLP Holdings Ltd.	4,647,000		34,054,088
Esprit Holdings Ltd.	2,689,500		28,023,156
Foxconn International Holdings Ltd.a,b	5,376,000		14,210,207
Giordano International Ltd.	4,032,000		1,873,477
Hang Lung Properties Ltd.	5,850,736		15,465,062
Hang Seng Bank Ltd.	1,948,800		26,541,776
Henderson Land Development Co. Ltd.	2,250,000		12,758,727
Hong Kong & China Gas Co. Ltd. (The)a	9,183,836		20,055,072
Hong Kong Exchanges & Clearing Ltd.	2,688,000		27,680,657
Hongkong Electric Holdings Ltd.	3,584,000		18,144,106
Hopewell Holdings Ltd.	1,568,000		6,031,310
Hutchinson Telecommunications International Ltd.b	3,584,000		7,477,849
Hutchison Whampoa Ltd.a	5,491,000		52,258,087
Hysan Development Co. Ltd.	1,568,000		4,315,246
Johnson Electric Holdings Ltd.	3,808,000		2,778,388

Security	Shares	Value
Kerry Properties Ltd.a	1,232,000	$	6,118,761
Kingboard Chemical Holdings Co. Ltd.	1,462,500		6,140,317
Li & Fung Ltd.	5,823,600		18,486,909
Link REIT (The)	5,488,000		12,827,321
Melco International Development Ltd.	1,800,000		3,479,129
MTR Corp. Ltd.a	3,648,000		9,642,640
New World Development Co. Ltd.	6,719,941		14,812,204
Noble Group Ltd.	2,464,000		2,255,009
Orient Overseas International Ltd.	450,000		3,674,974
PCCW Ltd.a	10,125,845		5,975,212
Shangri-La Asia Ltd.	3,136,000		8,128,720
Shui On Land Ltd.b	4,704,000		4,275,105
Shun Tak Holdings Ltd.	2,700,000		4,002,151
Sino Land Co. Ltd.	3,492,000		8,027,894
Solomon Systech International Ltd.	6,272,000		1,236,368
Sun Hung Kai Properties Ltd.	3,522,000		41,679,006
Swire Pacific Ltd. Class A	2,427,000		27,462,693
Techtronic Industries Co. Ltd.	2,250,000		3,081,679
Television Broadcasts Ltd.	675,000		4,393,553
Wharf Holdings Ltd. (The)	3,136,000		11,119,286
Wing Hang Bank Ltd.	450,000		5,091,970
Yue Yuen Industrial Holdings Ltd.	1,800,000		6,220,959
			584,731,388
NEW ZEALAND – 1.75%
Auckland International Airport Ltd.	2,671,158		4,191,068
Contact Energy Ltd.	686,823		4,262,415
Fisher & Paykel Appliances Holdings Ltd.	675,941		1,728,139
Fisher & Paykel Healthcare Corp. Ltd.	1,361,126		3,718,263
Fletcher Building Ltd.	1,209,626		8,998,141
Kiwi Income Property Trust	1,596,346		1,744,330
Sky City Entertainment Group Ltd.	1,164,625		3,956,444
Sky Network Television Ltd.	533,465		2,111,210

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2007

Security	Shares	Value
Telecom Corp. of New Zealand Ltd.	4,918,714	$	16,606,410
Tower Ltd.b	390,051		674,832
Vector Ltd.	459,846		869,668
Warehouse Group Ltd. (The)	270,060		1,318,470
			50,179,390
SINGAPORE – 11.33%
Allgreen Properties Ltd.a	1,568,000		1,619,506
Ascendas Real Estate Investment Trusta	2,475,000		3,915,346
CapitaCommercial Trust	2,464,000		4,542,232
CapitaLand Ltd.	3,300,000		15,100,507
CapitaMall Trust Management Ltd.a	2,250,000		5,147,900
Chartered Semiconductor Manufacturing Ltd.a,b	2,475,000		2,362,151
City Developments Ltd.	1,302,000		11,490,113
ComfortDelGro Corp. Ltd.	4,725,000		5,745,056
COSCO Corp. (Singapore) Ltd.	2,025,000		3,587,351
Creative Technology Ltd.	146,250		946,478
DBS Group Holdings Ltd.	2,878,000		40,072,822
Fraser and Neave Ltd.	2,016,150		6,431,647
Haw Par Corp. Ltd.	225,397		1,068,232
Jardine Cycle & Carriage Ltd.	358,000		3,042,327
Keppel Corp. Ltd.	1,433,000		16,674,228
Keppel Land Ltd.a	900,000		5,000,817
Neptune Orient Lines Ltd.a	1,125,000		2,117,993
Olam International Ltd.	1,800,000		2,906,357
Oversea-Chinese Banking Corp.	6,495,600		36,092,564
Parkway Holdings Ltd.	1,568,251		3,034,498
SembCorp Industries Ltd.	2,016,240		5,799,285
SembCorp Marine Ltd.a	1,350,000		3,071,090
Singapore Airlines Ltd.	1,350,000		13,943,455
Singapore Exchange Ltd.	2,025,000		9,001,471
Singapore Land Ltd.	224,000		1,332,505
Singapore Petroleum Co. Ltd.a	192,000		562,288
Singapore Post Ltd.	3,360,000		2,460,010
Singapore Press Holdings Ltd.	3,807,517		10,951,512
Singapore Technologies Engineering Ltd.a	3,360,000		7,116,457

Security	Shares or Principal		Value
Singapore Telecommunications Ltd.a		18,225,328	$	38,124,562
SMRT Corp. Ltd.		1,800,000		1,706,161
STATS ChipPAC Ltd.a,b		3,375,000		3,265,240
Suntec REIT a		2,250,000		2,779,866
United Overseas Bank Ltd.		2,959,000		39,459,781
United Overseas Land Ltd.		1,350,000		4,394,836
Venture Corp. Ltd.		675,000		6,133,355
Want Want Holdings Ltd.		1,125,000		1,732,500
Wing Tai Holdings Ltd.		1,350,333		2,453,947
				325,186,446
TOTAL COMMON STOCKS (Cost: $2,046,041,611)				2,855,116,507
SHORT-TERM INVESTMENTS – 6.36%
CERTIFICATES OF DEPOSITc– 0.30%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	1,950,475		1,950,475
Deutsche Bank AG
5.35%, 08/08/07		3,250,791		3,250,791
Washington Mutual Bank
5.33%, 03/19/07		3,250,791		3,250,791
				8,452,057
COMMERCIAL PAPERc – 1.41%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d		1,236,744		1,228,379
BNP Paribas Finance Inc.
5.12%, 06/06/07		455,111		448,838
Bryant Park Funding LLC
5.27%, 03/06/07d		320,450		320,215
Cantabric Finance LLC
5.25%, 03/06/07d		1,040,253		1,039,495
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		975,237		968,235
Concord Minutemen Capital Co. LLC
5.29%, 03/19/07d		662,732		660,979
Crown Point Capital Co. LLC
5.20%, 07/18/07d		1,502,060		1,471,902

56 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2007

Security	Principal		Value
Edison Asset Securitization LLC
5.21%, 04/11/07d	$	538,890	$	535,693
Five Finance Inc.
5.22%, 04/20/07d		598,146		593,809
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07d		2,275,554		2,236,471
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d		2,132,519		2,129,947
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07d		2,535,617		2,504,125
Harrier Finance Funding LLC
5.12%, 06/06/07d		1,300,316		1,282,395
Irish Permanent Treasury PLC
5.18%, 07/10/07		650,158		637,903
KKR Pacific Funding Trust
5.29%, 03/13/07d		1,625,395		1,622,529
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07d		1,642,924		1,614,960
Liberty Street Funding Corp.
5.27%, 03/06/07d		156,038		155,924
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		2,933,462		2,905,597
Nationwide Building Society
5.21%, 04/13/07d		1,235,301		1,227,613
Nestle Capital Corp.
5.19%, 08/09/07		780,190		762,081
Sedna Finance Inc.
5.22%, 04/17/07d		741,180		736,129
Simba Funding Corp.
5.20%, 07/23/07d		1,300,316		1,273,270
Societe Generale
5.18%, 05/16/07		3,250,791		3,215,242
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07d		4,953,633		4,948,843

Security	Shares or Principal		Value
Thornburg Mortgage Capital Resources LLC
5.28%, 03/12/07d	$	951,832	$	950,296
Three Pillars Funding Corp.
5.26%, 03/01/07- 03/12/07d		682,640		682,103
Tulip Funding Corp.
5.29%, 03/15/07d		2,496,100		2,490,965
Westpac Banking Corp.
5.20%, 07/12/07d		1,170,285		1,147,802
Zela Finance Inc.
5.20%, 07/16/07d		780,190		764,751
				40,556,491
MEDIUM-TERM NOTESc – 0.13%
Bank of America N.A.
5.28%, 04/20/07		325,079		325,079
Cullinan Finance Corp.
5.71%, 06/28/07d		975,237		975,237
K2 USA LLC
5.39%, 06/04/07d		975,237		975,237
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07d		1,521,370		1,521,370
				3,796,923
MONEY MARKET FUNDS – 0.11%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%e,f		3,176,265		3,176,265
				3,176,265
REPURCHASE AGREEMENTSc– 0.86%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $2,601,020 (collateralized by non-U.S. Government debt securities, value $2,680,767, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	2,600,633		2,600,633

SCHEDULES OF INVESTMENTS 57

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2007

Security	Principal		Value
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $1,950,766 (collateralized by non-U.S. Government debt securities, value $2,147,216, 0.00% to 9.20%, 10/17/18 to 11/25/52).	$	1,950,475	$	1,950,475
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $130,051 (collateralized by non-U.S. Government debt securities, value $136,641, 5.43%, 3/15/08).		130,032		130,032
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $1,950,765 (collateralized by non-U.S. Government debt securities, value $2,101,693, 0.00% to 10.00%, 5/27/33 to 8/25/46).		1,950,475		1,950,475
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $2,601,020 (collateralized by non-U.S. Government debt securities, value $2,732,820, 4.91% to 6.31%, 10/25/33 to 8/25/46).		2,600,633		2,600,633
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $1,430,563 (collateralized by non-U.S. Government debt securities, value $1,541,387, 0.00% to 10.00%, 5/27/33 to 8/25/46).		1,430,348		1,430,348

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $780,308 (collateralized by non-U.S. Government debt securities, value $869,163, 0.00% to 10.00%, 5/27/33 to 2/28/37).	$	780,190	$	780,190
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $482,580 (collateralized by non-U.S. Government debt securities, value $507,034, 4.52% to 6.89%, 1/15/09 to 10/25/36).		482,508		482,508
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $5,462,157 (collateralized by non-U.S. Government debt securities, value $6,021,647, 0.00% to 10.00%, 4/1/07 to 12/31/49).		5,461,329		5,461,329
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $650,255 (collateralized by non-U.S. Government debt securities, value $683,249, 3.72% to 5.99%, 12/15/36 to 6/1/46).		650,158		650,158
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $325,128 (collateralized by non-U.S. Government debt securities, value $341,643, 6.25% to 9.56%, 5/15/11 to 2/1/30).		325,079		325,079

58 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2007

Security	Principal		Value
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $1,300,510 (collateralized by non-U.S. Government debt securities, value $1,366,417, 1.63% to 14.50%, 5/1/07 to 9/18/37).	$	1,300,316	$	1,300,316
Morgan Stanley 5.36%, due 3/1/07, maturity value $1,300,510 (collateralized by non-U.S. Government debt securities, value $1,366,711, 0.00% to 10.00%, 3/1/07 to 2/28/37).		1,300,316		1,300,316
Morgan Stanley 5.51%, due 2/4/08, maturity value $956,752 (collateralized by non-U.S. Government debt securities, value $1,079,446, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		910,221		910,221
Wachovia Capital 5.38%, due 3/1/07, maturity value $2,861,124 (collateralized by non-U.S. Government debt securities, value $3,006,103, 0.00% to 8.32%, 2/15/08 to 3/15/49).		2,860,696		2,860,696
				24,733,409
TIME DEPOSITSc – 0.26%
Bank of Nova Scotia
5.30%, 03/02/07		545,301		545,301
Chase Bank USA N.A.
5.38%, 03/01/07		1,950,475		1,950,475
Citibank N.A.
5.47%, 03/01/07		1,950,475		1,950,475
Deutsche Bank AG
5.38%, 03/01/07		3,054,066		3,054,066
				7,500,317

Security	Principal		Value
VARIABLE & FLOATING RATE NOTESc– 3.29%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08d	$	3,328,810	$	3,329,141
American Express Centurion Bank 5.41%, 07/19/07		1,430,348		1,430,992
American Express Credit Corp. 5.42%, 03/05/08		390,095		390,285
AmeriCredit Automobile Receivables Trust 5.35%, 03/06/07		59,262		59,262
Arkle Master Issuer PLC
Series 2006-1A Class 1A
5.30%, 11/19/07d		975,237		975,237
ASIF Global Financing
5.40%, 05/03/07d		130,032		130,044
Australia & New Zealand
Banking Group Ltd.
5.32%, 02/22/08d		845,206		845,206
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08d		1,885,459		1,885,512
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07d		3,315,807		3,315,867
BMW US Capital LLC
5.32%, 01/15/08d		1,300,316		1,300,316
BNP Paribas
5.33%, 11/19/07d		2,405,585		2,405,585
Brigantine High Grade
Funding Ltd.
5.40%, 09/05/07d		1,248,304		1,248,187
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07d		949,231		949,231
CC USA Inc.
5.36%, 07/30/07d		650,158		650,194
Commodore CDO Ltd.
5.44%, 12/12/07d		325,079		325,079
Credit Agricole SA
5.33%, 11/23/07		1,300,316		1,300,316

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2007

Security	Principal		Value
Credit Suisse First Boston NY
5.36%, 04/24/07	$	650,158	$	650,162
Cullinan Finance Corp.
5.36%, 04/25/07d		325,079		325,079
DaimlerChrysler Auto Trust
Series 2006-C Class A1
5.33%, 10/08/07d		99,745		99,745
DEPFA Bank PLC
5.40%, 12/14/07d		1,300,316		1,300,316
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07d		1,495,364		1,495,389
Eli Lilly Services Inc.
5.31%, 03/01/07d		867,961		867,961
Fifth Third Bancorp
5.32%, 02/22/08d		2,600,633		2,600,633
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07d		845,206		845,163
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08d		1,365,332		1,365,467
Granite Master Issuer PLC
5.29%, 08/20/07d		4,551,107		4,551,107
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07d		1,690,411		1,690,420
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		1,950,475		1,950,599
HBOS Treasury Services PLC
5.46%, 01/24/08d		1,300,316		1,300,316
Holmes Financing PLC
5.29%, 07/16/07d		2,275,554		2,275,554
JP Morgan Securities Inc.
5.40%, 11/16/07		2,600,633		2,600,633
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08g		3,575,870		3,575,870

Security	Principal		Value
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07d	$	975,237	$	975,221
Kestrel Funding LLC
5.30%, 07/11/07d		520,127		520,106
Kommunalkredit Austria AG
5.32%, 02/08/08d		780,190		780,190
Leafs LLC
5.32%, 01/22/08d		1,259,838		1,259,838
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07d		1,430,348		1,430,319
Lothian Mortgages Master
Issuer PLC
5.29%, 04/24/07d		458,429		458,429
Marshall & Ilsley Bank
5.32%, 02/15/08		715,174		715,174
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d		2,353,222		2,353,222
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		1,430,348		1,430,348
Metropolitan Life Global Funding I
5.33%, 03/06/08d		1,950,475		1,950,475
Metropolitan Life Insurance
Funding Agreement
5.44%, 08/01/07d,g		130,032		130,032
Mound Financing PLC
5.29%, 05/08/07d		1,222,297		1,222,297
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08d		2,080,506		2,080,482
National City Bank of Indiana
5.34%, 05/21/07		650,158		650,170
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08d		4,291,044		4,291,526
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08d		1,303,567		1,303,394
Northern Rock PLC
5.38%, 02/01/08d		1,560,380		1,560,409

60 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2007

Security	Principal		Value
Northlake CDO I
5.42%, 09/06/07d	$	390,095	$	390,095
Pricoa Global Funding I
5.31%, 02/27/08d		1,755,427		1,755,427
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07d		1,885,459		1,885,445
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		1,300,316		1,300,316
Strips III LLC
5.37%, 07/24/07d		264,592		264,592
SunTrust Bank
5.29%, 05/01/07		1,300,316		1,300,328
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07d		3,172,772		3,172,668
Union Hamilton Special
Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07d		2,145,522		2,145,522
Wachovia Asset
Securitization Inc.
5.31%, 03/25/07d		1,467,822		1,467,822
Wachovia Bank N.A.
5.36%, 05/22/07		2,600,633		2,600,633
Wal-Mart Stores Inc.
5.50%, 07/16/07d		975,237		975,484
Wells Fargo & Co.
5.33%, 11/15/07d		650,158		650,184
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07d		975,237		975,241
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07d		3,900,949		3,900,600

Security	Principal		Value
Wind Master Trust
5.31%, 07/25/07d	$	520,127	$	520,127
				94,450,984
TOTAL SHORT-TERM INVESTMENTS (Cost: $182,666,446)				182,666,446
TOTAL INVESTMENTS IN SECURITIES – 105.83% (Cost: $2,228,708,057)				3,037,782,953
Other Assets, Less Liabilities – (5.83)%				(167,353,477	)
NET ASSETS – 100.00%			$	2,870,429,476

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

^b Non-income earning security.

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Unaudited)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.90%
AIRLINES – 4.41%
Singapore Airlines Ltd.	6,405,000	$	66,153,947
			66,153,947
BANKS – 35.19%
DBS Group Holdings Ltd.	13,007,000		181,107,436
Oversea-Chinese Banking Corp.	28,638,000		159,126,001
United Overseas Bank Ltd.	14,091,000		187,910,704
			528,144,141
BEVERAGES – 2.18%
Fraser and Neave Ltd.	10,248,000		32,691,773
			32,691,773
COMPUTERS – 0.30%
Creative Technology Ltd.a	704,550		4,559,598
			4,559,598
DISTRIBUTION & WHOLESALE – 0.82%
Jardine Cycle & Carriage Ltd.	1,442,000		12,254,290
			12,254,290
DIVERSIFIED FINANCIAL SERVICES – 2.69%
Singapore Exchange Ltd.	9,096,000		40,433,273
			40,433,273
ELECTRONICS – 1.64%
Venture Corp. Ltd.	2,710,000		24,624,285
			24,624,285
ENGINEERING & CONSTRUCTION – 3.89%
SembCorp Industries Ltd.	8,967,000		25,791,665
Singapore Technologies Engineering Ltd.a	15,372,000		32,557,791
			58,349,456
FOOD – 1.36%
Olam International Ltd.a	7,686,000		12,410,146
Want Want Holdings Ltd.a	5,170,000		7,961,800
			20,371,946
HEALTH CARE - SERVICES – 0.92%
Parkway Holdings Ltd.a	7,138,500		13,812,688
			13,812,688
HOLDING COMPANIES - DIVERSIFIED – 5.67%
Haw Par Corp. Ltd.	1,281,000		6,071,090
Keppel Corp. Ltd.	5,887,000		68,500,474

Security	Shares	Value
Noble Group Ltd.a	11,529,000	$	10,551,136
			85,122,700
MEDIA – 3.44%
Singapore Press Holdings Ltd.	17,940,000		51,600,588
			51,600,588
OIL & GAS – 0.25%
Singapore Petroleum Co. Ltd.a	1,281,000		3,751,515
			3,751,515
REAL ESTATE – 14.21%
Allgreen Properties Ltd.a	7,686,000		7,938,473
CapitaCommercial Trusta	11,529,000		21,253,002
CapitaLand Ltd.a	14,097,000		64,506,619
City Developments Ltd.	6,405,000		56,523,942
Keppel Land Ltd.a	3,944,000		21,914,692
Singapore Land Ltd.	1,860,000		11,064,553
UOL Group Ltd.	6,405,000		20,851,054
Wing Tai Holdings Ltd.a	5,124,000		9,311,796
			213,364,131
REAL ESTATE INVESTMENT TRUSTS – 3.80%
Ascendas Real Estate
Investment Trusta	11,529,000		18,238,392
CapitaMall Trust
Management Ltd.a	10,748,000		24,590,946
Suntec REITa	11,529,000		14,244,033
			57,073,371
SEMICONDUCTORS – 1.72%
Chartered Semiconductor
Manufacturing Ltd.a,b	11,529,000		11,003,328
STATS ChipPAC Ltd.a,b	15,372,000		14,872,077
			25,875,405
SHIPBUILDING – 0.97%
SembCorp Marine Ltd.a	6,405,000		14,570,616
			14,570,616
TELECOMMUNICATIONS – 11.78%
Singapore Telecommunications Ltd.a	84,558,568		176,883,424
			176,883,424

62 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
TRANSPORTATION – 4.66%
ComfortDelGro Corp. Ltd.		20,502,000	$	24,928,073
COSCO Corp. (Singapore) Ltd.		8,967,000		15,885,321
Neptune Orient Lines Ltd.a		5,124,000		9,646,753
Singapore Post Ltd.a		16,653,000		12,192,424
SMRT Corp. Ltd.		7,686,000		7,285,308
				69,937,879
TOTAL COMMON STOCKS (Cost: $1,265,195,809)				1,499,575,026
SHORT-TERM INVESTMENTS – 11.40%
CERTIFICATES OF DEPOSITc– 0.53%
Credit Suisse First Boston NY
5.28% - 5.43%,
04/23/07 - 08/21/07	$	1,845,971		1,845,971
Deutsche Bank AG
5.35%, 08/08/07		3,076,619		3,076,619
Washington Mutual Bank
5.33%, 03/19/07		3,076,619		3,076,619
				7,999,209
COMMERCIAL PAPERc – 2.56%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d		1,170,481		1,162,569
BNP Paribas Finance Inc.
5.12%, 06/06/07		430,727		424,790
Bryant Park Funding LLC
5.27%, 03/06/07d		303,281		303,059
Cantabric Finance LLC
5.25%, 03/06/07d		984,518		983,800
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		922,986		916,358
Concord Minutemen
Capital Co. LLC
5.29%, 03/19/07d		627,224		625,565
Crown Point Capital Co. LLC
5.20%, 07/18/07d		1,421,582		1,393,040
Edison Asset Securitization LLC
5.21%, 04/11/07d		510,017		506,991
Five Finance Inc.
5.22%, 04/20/07d		566,098		561,994

Security	Principal		Value
General Electric Capital Corp.
5.12% - 5.20%,
06/04/07 - 07/17/07d	$	2,153,633	$	2,116,643
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d		2,018,262		2,015,828
Grampian Funding LLC
5.14% - 5.23%,
04/23/07 - 06/06/07d		2,399,762		2,369,957
Harrier Finance Funding LLC
5.12%, 06/06/07d		1,230,647		1,213,687
Irish Permanent Treasury PLC
5.18%, 07/10/07		615,324		603,725
KKR Pacific Funding Trust
5.29%, 03/13/07d		1,538,309		1,535,597
Lexington Parker Capital
Co. LLC
5.18% - 5.20%,
05/17/07 - 07/25/07d		1,554,898		1,528,433
Liberty Street Funding Corp.
5.27%, 03/06/07d		147,678		147,570
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		2,776,291		2,749,920
Nationwide Building Society
5.21%, 04/13/07d		1,169,115		1,161,840
Nestle Capital Corp.
5.19%, 08/09/07		738,388		721,250
Sedna Finance Inc.
5.22%, 04/17/07d		701,469		696,688
Simba Funding Corp.
5.20%, 07/23/07d		1,230,647		1,205,050
Societe Generale
5.18%, 05/16/07		3,076,619		3,042,974
Thames Asset Global
Securitization No. 1 Inc.
5.25% - 5.28%,
03/02/07 - 03/12/07d		4,688,225		4,683,691
Thornburg Mortgage
Capital Resources LLC
5.28%, 03/12/07d		900,834		899,381
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07d		646,065		645,556

SCHEDULES OF INVESTMENTS 63

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
Tulip Funding Corp.
5.29%, 03/15/07d	$	2,362,363	$	2,357,503
Westpac Banking Corp.
5.20%, 07/12/07d		1,107,583		1,086,305
Zela Finance Inc.
5.20%, 07/16/07d		738,388		723,777
				38,383,541
MEDIUM-TERM NOTESc – 0.24%
Bank of America N.A.
5.28%, 04/20/07		307,662		307,662
Cullinan Finance Corp.
5.71%, 06/28/07d		922,986		922,986
K2 USA LLC
5.39%, 06/04/07d		922,986		922,986
Sigma Finance Inc.
5.13% - 5.51%,
03/30/07 - 06/18/07d		1,439,858		1,439,858
				3,593,492
MONEY MARKET FUNDS – 0.08%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%e,f		1,244,278		1,244,278
				1,244,278
REPURCHASE AGREEMENTSc– 1.56%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $ 2,461,661 (collateralized by non-U.S. Government debt securities, value $2,537,135, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	2,461,295		2,461,295
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $1,846,246 (collateralized by non-U.S. Government debt securities, value $2,032,172, 0.00% to 9.20%, 10/17/18 to 11/25/52).		1,845,971		1,845,971

Security	Principal		Value
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $123,083 (collateralized by non-U.S. Government debt securities, value $129,320, 5.43%, 3/15/08).	$	123,065	$	123,065
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $1,846,246 (collateralized by non-U.S. Government debt securities, value $1,989,088, 0.00% to 10.00%, 5/27/33 to 8/25/46).		1,845,971		1,845,971
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $2,461,661 (collateralized by non-U.S. Government debt securities, value $2,586,400, 4.91% to 6.31%, 10/25/33 to 8/25/46).		2,461,295		2,461,295
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $1,353,916 (collateralized by non-U.S. Government debt securities, value $1,458,802, 0.00% to 10.00%, 5/27/33 to 8/25/46).		1,353,712		1,353,712
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $738,500 (collateralized by non-U.S. Government debt securities, value $822,594, 0.00% to 10.00%, 5/27/33 to 2/28/37).		738,388		738,388

64 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2007

Security	Principal		Value
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $456,724 (collateralized by non-U.S. Government debt securities, value $479,868, 4.52% to 6.89%, 1/15/09 to 10/25/36).	$	456,656	$	456,656
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $5,169,503 (collateralized by non-U.S. Government debt securities, value $5,699,017, 0.00% to 10.00%, 4/1/07 to 12/31/49).		5,168,719		5,168,719
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $615,416 (collateralized by non-U.S. Government debt securities, value $646,641, 3.72% to 5.99%, 12/15/36 to 6/1/46).		615,324		615,324
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $307,708 (collateralized by non-U.S. Government debt securities, value $323,339, 6.25% to 9.56%, 5/15/11 to 2/1/30).		307,662		307,662
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $1,230,830 (collateralized by non-U.S. Government debt securities, value $1,293,206, 1.63% to 14.50%, 5/1/07 to 9/18/37).		1,230,647		1,230,647

Security	Principal		Value
Morgan Stanley 5.36%, due 3/1/07, maturity value $1,230,830 (collateralized by non-U.S. Government debt securities, value $1,293,485, 0.00% to 10.00%, 3/1/07 to 2/28/37).	$	1,230,647	$	1,230,647
Morgan Stanley 5.51%, due 2/4/08, maturity value $905,491 (collateralized by non-U.S. Government debt securities, value $1,021,611, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		861,453		861,453
Wachovia Capital 5.38%, due 3/1/07, maturity value $2,707,829 (collateralized by non-U.S. Government debt securities, value $2,845,040, 0.00% to 8.32%, 2/15/08 to 3/15/49).		2,707,424		2,707,424
				23,408,229
TIME DEPOSITSc – 0.47%
Bank of Nova Scotia
5.30%, 03/02/07		516,084		516,084
Chase Bank USA N.A.
5.38%, 03/01/07		1,845,971		1,845,971
Citibank N.A.
5.47%, 03/01/07		1,845,971		1,845,971
Deutsche Bank AG
5.38%, 03/01/07		2,890,434		2,890,434
				7,098,460
VARIABLE & FLOATING RATE NOTESc – 5.96%
Allstate Life Global Funding II
5.30% - 5.40%,
02/15/08 - 03/07/08d		3,150,457		3,150,770
American Express Centurion Bank
5.41%, 07/19/07		1,353,712		1,354,322

SCHEDULES OF INVESTMENTS 65

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2007

Security	Principal		Value
American Express Credit Corp.
5.42%, 03/05/08	$	369,194	$	369,374
AmeriCredit Automobile
Receivables Trust
5.35%, 03/06/07		56,086		56,086
Arkle Master Issuer PLC
Series 2006-1A Class 1A
5.30%, 11/19/07d		922,986		922,986
ASIF Global Financing
5.40%, 05/03/07d		123,065		123,076
Australia & New Zealand
Banking Group Ltd.
5.32%, 02/22/08d		799,921		799,921
Bank of Ireland
5.30% - 5.32%,
08/14/07 - 02/20/08d		1,784,439		1,784,490
Beta Finance Inc.
5.29% - 5.41%,
04/25/07 - 07/25/07d		3,138,151		3,138,208
BMW US Capital LLC
5.32%, 01/15/08d		1,230,647		1,230,647
BNP Paribas
5.33%, 11/19/07d		2,276,698		2,276,698
Brigantine High Grade
Funding Ltd.
5.40%, 09/05/07d		1,181,422		1,181,311
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07d		898,373		898,373
CC USA Inc.
5.36%, 07/30/07d		615,324		615,358
Commodore CDO Ltd.
5.44%, 12/12/07d		307,662		307,662
Credit Agricole SA
5.33%, 11/23/07		1,230,647		1,230,647
Credit Suisse First Boston NY
5.36%, 04/24/07		615,324		615,328
Cullinan Finance Corp.
5.36%, 04/25/07d		307,662		307,662
DaimlerChrysler Auto Trust
Series 2006-C Class A1
5.33%, 10/08/07d		94,401		94,401
DEPFA Bank PLC
5.40%, 12/14/07d		1,230,647		1,230,647

Security	Principal		Value
Dorada Finance Inc.
5.33% - 5.41%,
06/27/07 - 07/17/07d	$	1,415,245	$	1,415,268
Eli Lilly Services Inc.
5.31%, 03/01/07d		821,457		821,457
Fifth Third Bancorp
5.32%, 02/22/08d		2,461,295		2,461,295
Five Finance Inc.
5.31% - 5.37%,
06/29/07 - 07/13/07d		799,921		799,881
General Electric Capital Corp.
5.28% - 5.45%,
07/09/07 - 02/22/08d		1,292,180		1,292,306
Granite Master Issuer PLC
5.29%, 08/20/07d		4,307,266		4,307,266
Harrier Finance Funding LLC
5.29% - 5.36%,
07/25/07 - 08/15/07d		1,599,842		1,599,851
Hartford Life Global Funding Trust
5.36% - 5.40%,
07/13/07 - 03/14/08		1,845,971		1,846,089
HBOS Treasury Services PLC
5.46%, 01/24/08d		1,230,647		1,230,647
Holmes Financing PLC
5.29%, 07/16/07d		2,153,633		2,153,633
JP Morgan Securities Inc.
5.40%, 11/16/07		2,461,295		2,461,295
JPMorgan Chase & Co.
5.29% - 5.45%,
07/27/07 - 02/29/08g		3,384,280		3,384,281
K2 USA LLC
5.20% - 5.33%,
04/02/07 - 06/28/07d		922,986		922,970
Kestrel Funding LLC
5.30%, 07/11/07d		492,259		492,240
Kommunalkredit Austria AG
5.32%, 02/08/08d		738,388		738,388
Leafs LLC
5.32%, 01/22/08d		1,192,337		1,192,337
Links Finance LLC
5.28% - 5.35%,
05/10/07 - 05/16/07d		1,353,712		1,353,685

66 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2007

Security	Principal		Value
Lothian Mortgages Master
Issuer PLC
5.29%, 04/24/07d	$	433,867	$	433,867
Marshall & Ilsley Bank
5.32%, 02/15/08		676,856		676,856
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d		2,227,140		2,227,140
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		1,353,712		1,353,712
Metropolitan Life Global Funding I
5.33%, 03/06/08d		1,845,971		1,845,971
Metropolitan Life Insurance
Funding Agreement
5.44%, 08/01/07d,g		123,065		123,065
Mound Financing PLC
5.29%, 05/08/07d		1,156,809		1,156,809
Natexis Banques Populaires
5.33% - 5.35%,
06/20/07 - 02/08/08d		1,969,036		1,969,013
National City Bank of Indiana
5.34%, 05/21/07		615,324		615,335
Nationwide Building Society
5.37% - 5.48%,
07/20/07 - 01/28/08d		4,061,136		4,061,594
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08d		1,233,724		1,233,560
Northern Rock PLC
5.38%, 02/01/08d		1,476,777		1,476,805
Northlake CDO I
5.42%, 09/06/07d		369,194		369,194
Pricoa Global Funding I
5.31%, 02/27/08d		1,661,374		1,661,374
Sedna Finance Inc.
5.32% - 5.34%,
05/25/07 - 08/21/07d		1,784,439		1,784,425
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		1,230,647		1,230,647
Strips III LLC
5.37%, 07/24/07d		250,415		250,415
SunTrust Bank
5.29%, 05/01/07		1,230,647		1,230,658

Security	Principal		Value
Tango Finance Corp.
5.27% - 5.34%,
04/25/07 - 07/16/07d	$	3,002,780	$	3,002,680
Union Hamilton Special
Funding LLC
5.36% - 5.37%,
03/28/07 - 06/21/07d		2,030,568		2,030,568
Wachovia Asset
Securitization Inc.
5.31%, 03/25/07d		1,389,178		1,389,178
Wachovia Bank N.A.
5.36%, 05/22/07		2,461,295		2,461,295
Wal-Mart Stores Inc.
5.50%, 07/16/07d		922,986		923,219
Wells Fargo & Co.
5.33%, 11/15/07d		615,324		615,348
WhistleJacket Capital Ltd.
5.28% - 5.35%,
04/18/07 - 06/13/07d		922,986		922,989
White Pine Finance LLC
5.28% - 5.32%,
05/22/07 - 08/20/07d		3,691,942		3,691,611
Wind Master Trust
5.31%, 07/25/07d		492,259		492,259
				89,390,443
TOTAL SHORT-TERM INVESTMENTS (Cost: $171,117,652)				171,117,652
TOTAL INVESTMENTS IN SECURITIES – 111.30% (Cost: $1,436,313,461)				1,670,692,678
Other Assets, Less Liabilities – (11.30)%				(169,674,860	)
NET ASSETS – 100.00%			$	1,501,017,818

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

^b Non-income earning security.

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 67

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.95%
BANKS – 14.79%
FirstRand Ltd.	4,959,628	$	16,331,389
Nedbank Group Ltd.	357,182		6,617,392
Standard Bank Group Ltd.	2,162,498		29,880,666
			52,829,447
BUILDING MATERIALS – 0.39%
Pretoria Portland Cement Co. Ltd.	23,870		1,381,272
			1,381,272
DIVERSIFIED FINANCIAL SERVICES – 2.24%
African Bank Investments Ltd.	833,218		3,161,813
Alexander Forbes Ltd.a	631,284		1,427,773
Investec Ltd.	291,648		3,428,417
			8,018,003
ELECTRONICS – 0.91%
Reunert Ltd.	309,318		3,253,382
			3,253,382
ENGINEERING & CONSTRUCTION – 2.15%
Aveng Ltd.	697,996		3,790,692
Murray & Roberts Holdings Ltd.	526,070		3,876,831
			7,667,523
FOOD – 3.24%
Shoprite Holdings Ltd.	764,150		2,836,683
SPAR Group Ltd. (The)	300,762		1,861,232
Tiger Brands Ltd.	286,688		6,882,120
			11,580,035
FOREST PRODUCTS & PAPER – 1.42%
Sappi Ltd.	360,220		5,076,451
			5,076,451
HEALTH CARE – PRODUCTS – 0.51%
Aspen Pharmacare Holdings Ltd.a	377,394		1,827,481
			1,827,481
HEALTH CARE - SERVICES – 1.23%
Network Healthcare Holdings Ltd.a	2,265,666		4,392,214
			4,392,214
HOLDING COMPANIES - DIVERSIFIED – 7.81%
AVI Ltd.	561,658		1,544,438
Barloworld Ltd.	354,454		8,450,404
Bidvest Group Ltd.	459,668		8,911,112

Security	Shares	Value
Imperial Holdings Ltd.a	330,522	$	7,452,684
Tongaat-Hulett Group Ltd.	93,868		1,548,700
			27,907,338
HOME FURNISHINGS – 2.07%
Lewis Group Ltd.	168,888		1,578,978
Steinhoff International
Holdings Ltd.	1,618,882		5,798,176
			7,377,154
INSURANCE – 4.13%
Liberty Group Ltd.	195,672		2,152,223
Metropolitan Holdings Ltd.	983,320		2,054,977
Sanlam Ltd.	4,040,974		10,528,434
			14,735,634
IRON & STEEL – 2.04%
Kumba Iron Ore Ltd.a	109,492		1,919,381
Mittal Steel South Africa Ltd.	354,392		5,352,448
			7,271,829
MEDIA – 3.55%
Naspers Ltd.	538,284		12,692,410
			12,692,410
MINING – 22.59%
Anglo Platinum Ltd.	116,126		16,445,050
AngloGold Ashanti Ltd.	267,158		11,570,370
Gold Fields Ltd.	1,071,546		18,409,854
Harmony Gold Mining Co. Ltd.a	597,432		7,950,372
Impala Platinum Holdings Ltd.	928,760		26,305,055
			80,680,701
OIL & GAS – 9.40%
Sasol Ltd.	1,047,552		33,558,304
			33,558,304
PACKAGING & CONTAINERS – 1.24%
Consol Ltd.	561,782		1,479,126
Nampak Ltd.	919,832		2,940,356
			4,419,482
REAL ESTATE – 0.44%
Allan Gray Property Trust	1,771,464		1,558,765
			1,558,765

68 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 28, 2007

Security	Shares	Value
RETAIL – 7.88%
Edgars Consolidated Stores Ltd.	888,336	$	5,410,650
Ellerine Holdings Ltd.	183,086		2,016,305
Foschini Ltd.	359,600		3,219,605
JD Group Ltd.	314,464		3,925,774
Massmart Holdings Ltd.	353,028		4,072,299
Pick’n Pay Stores Ltd.	388,306		1,754,325
Truworths International Ltd.	810,774		3,790,070
Woolworths Holdings Ltd.	1,409,694		3,946,128
			28,135,156
TELECOMMUNICATIONS – 11.30%
MTN Group Ltd.	2,353,582		28,476,100
Telkom South Africa Ltd.	529,480		11,866,036
			40,342,136
TRANSPORTATION – 0.62%
Grindrod Ltd.	580,382		1,376,485
Super Group Ltd.	492,528		846,466
			2,222,951
TOTAL COMMON STOCKS (Cost: $346,621,973)			356,927,668
SHORT-TERM INVESTMENTS – 0.00%
MONEY MARKET FUNDS – 0.00%
Barclays Global Investors Funds Institutional
Money Market Fund,
Institutional Shares
5.30%b,c	2,130		2,130
			2,130
TOTAL SHORT-TERM INVESTMENTS (Cost: $2,130)			2,130
TOTAL INVESTMENTS IN SECURITIES – 99.95% (Cost: $346,624,103)			356,929,798
Other Assets, Less Liabilities – 0.05%			170,315
NET ASSETS – 100.00%		$	357,100,113

^a Non-income earning security.

^b Affiliated issuer. See Note 2.

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 69

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 96.44%
ADVERTISING – 0.20%
Cheil Communications Inc.a	13,500	$	3,268,557
			3,268,557
AEROSPACE& DEFENSE – 0.42%
Hanjin Heavy Industries & Construction Co. Ltd.	222,750		6,977,939
			6,977,939
AGRICULTURE – 1.88%
KT&G Corp.	517,725		31,282,311
			31,282,311
AIRLINES – 0.53%
Asiana Airlines Inc.	418,500		2,755,335
Korean Air Co. Ltd.	170,392		6,052,472
			8,807,807
APPAREL – 0.15%
LG Fashion Corp.	109,954		2,487,013
			2,487,013
AUTO MANUFACTURERS – 3.73%
Hyundai Motor Co. Ltd.	702,000		51,436,763
Kia Motors Corp.a,b	837,000		10,799,140
			62,235,903
AUTO PARTS & EQUIPMENT – 1.78%
Hankook Tire Co. Ltd.	486,000		7,947,754
Hyundai Mobis	263,256		21,805,212
			29,752,966
BANKS – 9.58%
Daegu Bank	540,000		9,203,568
Kookmin Bank	1,525,509		137,371,948
Korea Exchange Banka	445,500		6,410,242
Pusan Bank	486,000		6,734,947
			159,720,705
BEVERAGES – 0.26%
Hite Brewery Co. Ltd.	40,500		4,365,244
			4,365,244
CHEMICALS – 2.02%
Hanwha Chemical Corp.	222,750		3,169,640
Honam Petrochemical Corp.b	60,750		5,225,390
KCC Corp.	20,250		5,483,434

Security	Shares	Value
Korea Zinc Co. Ltd.a	60,750	$	5,922,109
LG Chem Ltd.	202,500		9,354,094
LG Petrochemical Co. Ltd.	94,515		2,955,789
Samsung Fine Chemicals Co. Ltd.a	60,750		1,619,226
			33,729,682
COMMERCIAL SERVICES – 0.23%
S1 Corp.	94,500		3,773,176
			3,773,176
COSMETICS & PERSONAL CARE – 0.60%
AmorePacific Corp.	15,250		8,971,541
Pacific Corp.	6,759		1,022,786
			9,994,327
DISTRIBUTION & WHOLESALE – 1.89%
Daewoo International Corp.	195,750		7,795,078
Hyosung Corp.	5		148
LG International Corp.	145,715		3,172,090
Samsung Corp.	627,750		20,598,359
			31,565,675
DIVERSIFIED FINANCIAL SERVICES – 8.58%
Daewoo Securities Co. Ltd.a	526,500		9,728,257
Daishin Securities Co. Ltd.a	168,750		3,879,620
Hana Financial Group Inc.	519,751		27,596,421
Hyundai Securities Co. Ltd.	499,500		6,868,987
Korea Investment Holdings Co. Ltd.	168,755		8,422,518
Mirae Asset Securities Co. Ltd.a	60,750		4,386,747
Mirae Asset Securities Co. Ltd. Rightsc	12,318		235,451
Samsung Securities Co.a	243,000		13,547,308
Shinhan Financial Group Ltd.	972,000		54,808,538
Tong Yang Investment Bankb	371,250		4,100,032
Woori Investment & Securities Co.a	425,250		9,483,116
			143,056,995
ELECTRIC – 3.00%
Korea Electric Power Corp.	1,188,000		49,957,311
			49,957,311
ELECTRICAL COMPONENTS & EQUIPMENT – 20.27%
LG Electronics Inc.	472,506		29,954,984
LS Cable Ltd.	87,750		3,186,843

70 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2007

Security	Shares	Value
Samsung Electronics Co. Ltd.	506,250	$	304,814,431
			337,956,258
ELECTRONICS – 3.02%
Daeduck Electronics Co. Ltd.a	438,751		3,573,559
Hyundai Autonet Co. Ltd.a	445,500		3,491,335
LG.Philips LCD Co. Ltd.b	445,500		14,641,845
Samsung Electro-Mechanics Co. Ltd.a	438,750		16,516,606
Samsung SDI Co. Ltd.a	182,250		12,211,931
			50,435,276
ENGINEERING & CONSTRUCTION – 3.39%
Daelim Industrial Co. Ltd.	114,750		9,809,255
Daewoo Engineering & Construction Co. Ltd.a	702,000		14,238,293
GS Engineering & Construction Corp.	162,000		14,794,520
Hyundai Engineering & Construction Co. Inc.b	175,500		9,579,165
Samsung Engineering Co. Ltd.	148,500		8,105,448
			56,526,681
ENVIRONMENTAL CONTROL – 0.32%
Woongjin Coway Co. Ltd.	189,000		5,268,398
			5,268,398
FOOD – 1.23%
CJ Corp.a	87,750		9,094,616
Lotte Confectionery Co. Ltd.	3,500		4,493,469
Nong Shim Co. Ltd.a	13,502		3,713,516
ORION Corp.	13,509		3,292,254
			20,593,855
HOME BUILDERS – 1.05%
Hyundai Development Co.	290,257		17,568,917
			17,568,917
HOUSEHOLD PRODUCTS & WARES – 0.39%
LG Household & Health Care Ltd.a	54,000		6,537,114
			6,537,114
INSURANCE – 2.69%
Dongbu Insurance Co. Ltd.	175,500		4,780,264
Hyundai Marine &
Fire Insurance Co. Ltd.	330,750		4,495,699

Security	Shares	Value
Korean Reinsurance Co.	337,500	$	4,694,967
Samsung Fire & Marine Insurance Co. Ltd.	175,500		30,936,604
			44,907,534
INTERNET – 1.86%
Daum Communications Corp.a,b	51,975		3,604,086
NCsoft Corp.a,b	67,500		3,727,302
NHN Corp.b	172,800		23,671,233
			31,002,621
IRON & STEEL – 7.82%
Dongkuk Steel Mill Co. Ltd.	155,261		3,808,569
POSCOa	337,500		126,513,221
			130,321,790
LODGING – 0.56%
Kangwon Land Inc.a	486,002		9,263,816
			9,263,816
MACHINERY- DIVERSIFIED – 0.37%
Doosan Infracore Co. Ltd.	290,250		6,118,151
			6,118,151
MANUFACTURING – 0.51%
Cheil Industries Inc.	209,250		8,588,205
			8,588,205
MINING – 0.11%
Poongsan Corp.	87,768		1,812,772
			1,812,772
MULTIPLE UTILITIES – 0.72%
KT Freetel Co. Ltd.	438,750		12,020,548
			12,020,548
OIL & GAS – 3.39%
SK Corp.a	492,750		41,860,465
S-Oil Corp.	202,500		14,622,491
			56,482,956
PHARMACEUTICALS – 0.55%
Hanmi Pharm Co. Ltd.a	28,313		3,472,604
Yuhan Corp.a	35,398		5,638,420
			9,111,024
RETAIL – 3.42%
Hyundai Department Store Co. Ltd.	67,500		6,056,865
Lotte Shopping Co. Ltd.	33,750		12,203,329

SCHEDULES OF INVESTMENTS 71

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2007

Security	Shares	Value
Shinsegae Co. Ltd.	67,500	$	38,849,952
			57,110,146
SEMICONDUCTORS – 0.49%
Samsung Techwin Co. Ltd.a	222,750		8,231,602
			8,231,602
SHIPBUILDING – 4.89%
Daewoo Shipbuilding &
Marine Engineering Co. Ltd.	452,250		15,944,250
Hyundai Heavy
Industries Co. Ltd.a	216,000		36,928,958
Hyundai Mipo Dockyard	54,000		8,773,495
Samsung Heavy
Industries Co. Ltd.	810,000		19,869,385
			81,516,088
TELECOMMUNICATIONS – 4.09%
KT Corp.	452,261		20,218,953
KT Corp. ADRb	405,000		9,104,400
SKTelecom Co. Ltd.	119,920		25,023,128
SKTelecom Co. Ltd. ADR	608,175		13,866,390
			68,212,871
TRANSPORTATION – 0.45%
Hanjin Shipping Co. Ltd.a	222,750		7,521,981
			7,521,981
TOTAL COMMON STOCKS (Cost: $989,487,546)			1,608,084,215
PREFERRED STOCKS – 2.24%
AUTO MANUFACTURERS – 0.45%
Hyundai Motor Co. Ltd.	182,250		7,528,432
			7,528,432
ELECTRICAL COMPONENTS & EQUIPMENT – 1.79%
LG Electronics Inc.	141,750		4,937,241
Samsung Electronics Co. Ltd.	54,000		24,944,250
			29,881,491
TOTAL PREFERRED STOCKS (Cost: $37,356,021)			37,409,923

Security	Principal		Value
SHORT-TERM INVESTMENTS – 7.44%
CERTIFICATES OF DEPOSITd – 0.35%
Credit Suisse First Boston NY
5.28% – 5.43%,
04/23/07 – 08/21/07	$	1,338,032	$	1,338,032
Deutsche Bank AG
5.35%, 08/08/07		2,230,054		2,230,054
Washington Mutual Bank
5.33%, 03/19/07		2,230,054		2,230,054
				5,798,140
COMMERCIAL PAPERd – 1.67%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07e		848,411		842,668
BNP Paribas Finance Inc.
5.12%, 06/06/07		312,208		307,905
Bryant Park Funding LLC
5.27%, 03/06/07e		219,830		219,669
Cantabric Finance LLC
5.25%, 03/06/07e		713,617		713,097
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07 e		669,016		664,212
Concord Minutemen Capital
Co. LLC
5.29%, 03/19/07e		454,637		453,434
Crown Point Capital Co. LLC
5.20%, 07/18/07e		1,030,419		1,009,730
Edison Asset Securitization LLC
5.21%, 04/11/07e		369,680		367,487
Five Finance Inc.
5.22%, 04/20/07e		410,330		407,355
General Electric Capital Corp.
5.12% - 5.20%,
06/04/07 - 07/17/07e		1,561,038		1,534,227
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07 e		1,462,915		1,461,152
Grampian Funding LLC
5.14% - 5.23%,
04/23/07 - 06/06/07e		1,739,442		1,717,838
Harrier Finance Funding LLC
5.12%, 06/06/07e		892,022		879,728

72 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2007

Security	Principal		Value
Irish Permanent Treasury PLC
5.18%, 07/10/07	$	446,011	$	437,604
KKR Pacific Funding Trust
5.29%, 03/13/07e		1,115,027		1,113,061
Lexington Parker Capital Co. LLC
5.18% - 5.20%,
05/17/07 - 07/25/07e		1,127,051		1,107,867
Liberty Street Funding Corp.
5.27%, 03/06/07e		107,043		106,964
Lockhart Funding LLC
5.25%,     05/04/07 - 05/14/07e		2,012,365		1,993,250
Nationwide Building Society
5.21%, 04/13/07e		847,420		842,147
Nestle Capital Corp.
5.19%, 08/09/07		535,213		522,790
Sedna Finance Inc.
5.22%, 04/17/07e		508,452		504,987
Simba Funding Corp.
5.20%, 07/23/07e		892,022		873,467
Societe Generale
5.18%, 05/16/07		2,230,054		2,205,667
Thames Asset Global
Securitization No. 1 Inc.
5.25% - 5.28%,
03/02/07 - 03/12/07e		3,398,209		3,394,924
Thornburg Mortgage
Capital Resources LLC
5.28%, 03/12/07e		652,960		651,906
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07e		468,293		467,925
Tulip Funding Corp.
5.29%, 03/15/07e		1,712,333		1,708,811
Westpac Banking Corp.
5.20%, 07/12/07e		802,819		787,396
Zela Finance Inc.
5.20%, 07/16/07e		535,213		524,622
				27,821,890

Security	Shares or Principal		Value
MEDIUM-TERM NOTESd – 0.15%
Bank of America N.A.
5.28%, 04/20/07	$	223,005	$	223,005
Cullinan Finance Corp.
5.71%, 06/28/07 e		669,016		669,016
K2 USA LLC
5.39%, 06/04/07 e		669,016		669,016
Sigma Finance Inc.
5.13% – 5.51%,
03/30/07 – 06/18/07e		1,043,666		1,043,666
				2,604,703
MONEY MARKET FUNDS – 0.06%
Barclays Global Investors Funds
Institutional Money Market
Fund, Institutional Shares
5.30%f,g		946,492		946,492
				946,492
REPURCHASE AGREEMENTSd – 1.02%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $1,784,309 (collateralized by non-U.S. Government debt securities, value $1,839,015, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	1,784,043		1,784,043
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $1,338,232 (collateralized by non-U.S. Government debt securities, value $1,472,998, 0.00% to 9.20%, 10/17/18 to 11/25/52).		1,338,032		1,338,032
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $89,215 (collateralized by non-U.S. Government debt securities, value $93,736, 5.43%, 3/15/08).		89,202		89,202

SCHEDULES OF INVESTMENTS 73

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2007

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $1,338,231 (collateralized by non-U.S. Government debt securities, value $1,441,769, 0.00% to 10.00%, 5/27/33 to 8/25/46).	$	1,338,032	$	1,338,032
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $1,784,309 (collateralized by non-U.S. Government debt securities, value $1,874,724, 4.91% to 6.31%, 10/25/33 to 8/25/46).		1,784,043		1,784,043
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $981,372 (collateralized by non-U.S. Government debt securities, value $1,057,397, 0.00% to 10.00%, 5/27/33 to 8/25/46).		981,224		981,224
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $535,294 (collateralized by non-U.S. Government debt securities, value $596,249, 0.00% to 10.00%, 5/27/33 to 2/28/37).		535,213		535,213
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $331,051 (collateralized by non-U.S. Government debt securities, value $347,827, 4.52% to 6.89%, 1/15/09 to 10/25/36).		331,002		331,002
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $ 3,747,058 (collateralized by non-U.S. Government debt securities, value $4,130,871, 0.00% to 10.00%, 4/1/07 to 12/31/49).		3,746,490		3,746,490

Security	Principal		Value
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $446,077 (collateralized by non-U.S. Government debt securities, value $468,711, 3.72% to 5.99%, 12/15/36 to 6/1/46).	$	446,011	$	446,011
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $223,039 (collateralized by non-U.S. Government debt securities, value $234,369, 6.25% to 9.56%, 5/15/11 to 2/1/30).		223,005		223,005
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $892,155 (collateralized by non-U.S. Government debt securities, value $937,367, 1.63% to 14.50%, 5/1/07 to 9/18/37).		892,022		892,022
Morgan Stanley 5.36%, due 3/1/07, maturity value $892,155 (collateralized by non-U.S. Government debt securities, value $937,569, 0.00% to 10.00%, 3/1/07 to 2/28/37).		892,022		892,022
Morgan Stanley 5.51%, due 2/4/08, maturity value $656,335 (collateralized by non-U.S. Government debt securities, value $740,503, 0.00% to 10.00%, 3/1/07 to 2/28/37).h		624,415		624,415
Wachovia Capital 5.38%, due 3/1/07, maturity value $1,962,740 (collateralized by non-U.S. Government debt securities, value $2,062,197, 0.00% to 8.32%, 2/15/08 to 3/15/49).		1,962,447		1,962,447
				16,967,203

74 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2007

Security	Principal		Value
TIME DEPOSITSd – 0.31%
Bank of Nova Scotia
5.30%, 03/02/07	$	374,078	$	374,078
Chase Bank USA N.A.
5.38%, 03/01/07		1,338,032		1,338,032
Citibank N.A.
5.47%, 03/01/07		1,338,032		1,338,032
Deutsche Bank AG
5.38%, 03/01/07		2,095,100		2,095,100
				5,145,242
VARIABLE & FLOATING RATE NOTESd – 3.88%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08e		2,283,575		2,283,802
American Express Centurion Bank
5.41%, 07/19/07		981,224		981,666
American Express Credit Corp.
5.42%, 03/05/08		267,606		267,737
AmeriCredit Automobile
Receivables Trust
5.35%, 03/06/07		40,654		40,654
Arkle Master Issuer PLC
Series 2006-1A Class 1A
5.30%, 11/19/07e		669,016		669,016
ASIF Global Financing
5.40%, 05/03/07e		89,202		89,210
Australia & New Zealand
Banking Group Ltd.
5.32%, 02/22/08e		579,814		579,814
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08e		1,293,431		1,293,468
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07e		2,274,655		2,274,696
BMW US Capital LLC
5.32%, 01/15/08e		892,022		892,022
BNP Paribas
5.33%, 11/19/07e		1,650,240		1,650,240

Security	Principal		Value
Brigantine High Grade
Funding Ltd.
5.40%, 09/05/07e	$	856,341	$	856,261
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07e		651,176		651,176
CC USA Inc.
5.36%, 07/30/07e		446,011		446,035
Commodore CDO Ltd.
5.44%, 12/12/07e		223,005		223,005
Credit Agricole SA
5.33%, 11/23/07		892,022		892,022
Credit Suisse First Boston NY
5.36%, 04/24/07		446,011		446,014
Cullinan Finance Corp.
5.36%, 04/25/07e		223,005		223,005
DaimlerChrysler Auto Trust
Series 2006-C Class A1
5.33%, 10/08/07e		68,425		68,425
DEPFA Bank PLC
5.40%, 12/14/07e		892,022		892,022
Dorada Finance Inc.
5.33% - 5.41%,
06/27/07 - 07/17/07e		1,025,825		1,025,842
Eli Lilly Services Inc.
5.31%, 03/01/07e		595,424		595,424
Fifth Third Bancorp
5.32%, 02/22/08e		1,784,043		1,784,043
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07e		579,814		579,785
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08e		936,623		936,715
Granite Master Issuer PLC
5.29%, 08/20/07e		3,122,075		3,122,075
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07e		1,159,628		1,159,635
Hartford Life Global
Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		1,338,032		1,338,119

SCHEDULES OF INVESTMENTS 75

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2007

Security	Principal		Value
HBOS Treasury Services PLC
5.46%, 01/24/08e	$	892,022	$	892,022
Holmes Financing PLC
5.29%, 07/16/07e		1,561,038		1,561,038
JP Morgan Securities Inc.
5.40%, 11/16/07		1,784,043		1,784,043
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08h		2,453,059		2,453,059
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07e		669,016		669,005
Kestrel Funding LLC
5.30%, 07/11/07e		356,809		356,795
Kommunalkredit Austria AG
5.32%, 02/08/08e		535,213		535,213
Leafs LLC
5.32%, 01/22/08e		864,253		864,253
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07e		981,224		981,204
Lothian Mortgages
Master Issuer PLC
5.29%, 04/24/07e		314,484		314,484
Marshall & Ilsley Bank
5.32%, 02/15/08		490,612		490,612
Master Funding LLC
5.35%, 04/25/07 - 05/25/07e		1,614,318		1,614,318
Merrill Lynch & Co. Inc.
5.46%, 05/30/07h		981,224		981,224
Metropolitan Life
Global Funding I
5.33%, 03/06/08e		1,338,032		1,338,032
Metropolitan Life Insurance
Funding Agreement
5.44%, 08/01/07e,h		89,202		89,202
Mound Financing PLC
5.29%, 05/08/07e		838,500		838,500

Security	Principal		Value
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08e	$	1,427,234	$	1,427,218
National City Bank of Indiana
5.34%, 05/21/07		446,011		446,019
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08e		2,943,671		2,944,003
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08e		894,252		894,133
Northern Rock PLC
5.38%, 02/01/08e		1,070,426		1,070,446
Northlake CDO I
5.42%, 09/06/07e		267,606		267,606
Pricoa Global Funding I
5.31%, 02/27/08e		1,204,229		1,204,229
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07e		1,293,431		1,293,422
Skandinaviska Enskilda Banken
5.32%, 02/15/08e		892,022		892,022
Strips III LLC
5.37%, 07/24/07e		181,511		181,511
SunTrust Bank
5.29%, 05/01/07		892,022		892,029
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07e		2,176,532		2,176,460
Union Hamilton
Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07e		1,471,835		1,471,836
Wachovia Asset Securitization Inc.
5.31%, 03/25/07e		1,006,931		1,006,932
Wachovia Bank N.A.
5.36%, 05/22/07		1,784,043		1,784,043
Wal-Mart Stores Inc.
5.50%, 07/16/07e		669,016		669,185
Wells Fargo & Co.
5.33%, 11/15/07e		446,011		446,028

76 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2007

Security	Principal		Value
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07e	$	669,016	$	669,019
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07e		2,676,064		2,675,824
Wind Master Trust
5.31%, 07/25/07e		356,809		356,809
				64,793,706
TOTAL SHORT-TERM INVESTMENTS (Cost: $124,077,376)				124,077,376
TOTAL INVESTMENTS IN SECURITIES - 106.12% (Cost: $1,150,920,943)				1,769,571,514
Other Assets, Less Liabilities – (6.12)%				(102,098,043	)
NET ASSETS – 100.00%			$	1,667,473,471

ADR - American Depositary Receipts

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

^b Non-income earning security.

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

^d All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^e This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^f Affiliated issuer. See Note 2.

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

^h The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 77

Schedule of Investments (Unaudited)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.80%
AIRLINES – 0.38%
China Airlinesa	9,684,907	$	4,541,178
EVA Airways Corp.	9,684,396		4,158,853
			8,700,031
APPAREL – 0.66%
Pou Chen Corp.	13,719,541		15,197,671
			15,197,671
AUTO MANUFACTURERS – 0.43%
China Motor Co. Ltd.	3,286,759		3,157,084
Yulon Motor Co. Ltd.	5,649,483		6,738,230
			9,895,314
AUTO PARTS & EQUIPMENT – 0.15%
Cheng Shin Rubber
Industry Co. Ltd.	3,642,039		3,559,140
			3,559,140
BANKS – 7.58%
Chang Hwa
Commercial Bank Ltd.a	29,052,446		19,309,517
Chinatrust Financial
Holding Co. Ltd.	46,806,566		37,360,021
E.Sun Financial
Holding Co. Ltd.	22,596,378		14,949,956
First Financial
Holding Co. Ltd.	31,473,867		23,115,860
Hua Nan Financial
Holdings Co. Ltd.	25,824,965		19,750,808
Mega Financial
Holding Co. Ltd.	62,946,136		42,027,769
Taishin Financial
Holdings Co. Ltd.a	35,508,439		18,858,807
			175,372,738
BUILDING MATERIALS – 1.36%
Asia Cement Corp.	10,491,860		10,714,752
Taiwan Cement Corp.	19,651,156		16,490,272
Taiwan Glass Industrial Corp.	5,220,288		4,333,077
			31,538,101

Security	Shares	Value
CHEMICALS – 7.60%
Eternal Chemical Co. Ltd.	3,534,911	$	6,136,477
Formosa Chemicals &
Fibre Co.	20,982,393		40,436,478
Formosa Plastic Co.	29,859,111		53,103,002
Nan Ya Plastic Corp.	37,122,447		63,203,924
Oriental Union Chemical Corp.	3,680,063		2,585,537
Taiwan Fertilizer Co. Ltd.	5,649,000		10,440,792
			175,906,210
COMMERCIAL SERVICES – 0.18%
Taiwan Secom Co. Ltd.	2,421,610		4,064,189
			4,064,189
COMPUTERS – 10.27%
Acer Inc.	16,947,663		32,403,726
Advantech Co. Ltd.	1,614,733		5,782,655
Benq Corp.a	16,140,019		7,812,847
CMC Magnetics Corp.a	22,596,400		6,926,362
Compal Electronics Inc.	24,210,547		21,344,959
Foxconn Technology Co. Ltd.	2,681,065		30,024,673
High Tech Computer Corp.	2,421,200		35,601,560
Innolux Display Corp.a	10,719,000		29,765,964
Inventec Co. Ltd.	11,298,284		9,069,487
Lite-On Technology Corp.	16,213,284		23,692,553
MiTAC International Corp.	7,263,059		8,188,851
Quanta Computer Inc.	13,151,075		22,550,402
Ritek Corp.a	17,754,389		4,353,732
			237,517,771
DIVERSIFIED FINANCIAL SERVICES – 3.27%
Fubon Financial
Holding Co. Ltd.	25,824,000		23,825,481
Fuhwa Financial
Holdings Co. Ltd.a	10,491,821		5,094,663
Polaris Securities Co. Ltd.a	13,945,227		6,602,292
SinoPac Financial
Holdings Co. Ltd.	41,964,193		21,141,293
Waterland Financial Holdings	12,105,000		3,783,961
Yuanta Core Pacific
Securities Co. Ltd.	19,569,644		15,263,728
			75,711,418

78 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2007

Security	Shares	Value
ELECTRICAL COMPONENTS & EQUIPMENT – 2.52%
Delta Electronics Inc.	10,157,834	$	32,985,986
Pacific Electric Wire &
Cable Co. Ltd.b	986		–
Phoenixtec Power Co. Ltd.	3,228,438		3,399,903
Tatung Co. Ltd.a	26,631,120		12,002,189
Walsin Lihwa Corp.a	19,368,069		10,022,020
			58,410,098
ELECTRONICS – 18.65%
Asia Optical Co. Inc.	807,000		3,783,961
Asustek Computer Inc.	19,368,556		51,727,858
AU Optronics Corp.	45,192,710		65,423,134
Cheng Uei Precision
Industry Co. Ltd.	1,075,000		4,012,898
Chi Mei Optoelectronics Corp.	27,438,216		27,812,941
Chunghwa Picture Tubes Ltd.a	45,192,105		8,654,391
Compeq Manufacturing Co. Ltd.a	6,456,200		2,841,120
Gigabyte Technology Co. Ltd.	3,228,017		2,547,145
HannStar Display Corp.a	37,929,000		6,503,759
Hon Hai Precision
Industry Co. Ltd.	30,339,550		211,778,346
Micro-Star International Co. Ltd.	6,456,429		4,898,656
Nan Ya Printed Circuit
Board Corp.	1,340,000		8,926,555
Optimax Technology Corp.a	3,228,157		1,861,456
Phoenix Precision
Technology Corp.	3,228,814		3,669,775
Synnex Technology
International Corp.	5,649,946		6,481,577
Wintek Corp.	7,093,537		6,243,174
Ya Hsin Industrial Co. Ltd.	6,757,461		5,680,779
Yageo Corp.a	19,368,100		8,523,140
			431,370,665
FOOD – 0.75%
Uni-President Enterprises Co.	17,754,637		17,350,510
			17,350,510
FOREST PRODUCTS & PAPER – 0.17%
Yuen Foong Yu Paper Manufacturing Co. Ltd.	9,684,360		3,909,013
			3,909,013

Security	Shares	Value
HOME FURNISHINGS – 0.42%
Nien Made Enterprise Co. Ltd.	2,421,443	$	2,270,792
Teco Electric and
Machinery Co. Ltd.	13,719,092		7,369,588
			9,640,380
INSURANCE – 4.78%
Cathay Financial
Holding Co. Ltd.	41,157,905		89,935,331
Shin Kong Financial
Holding Co. Ltd.	20,582,832		20,614,065
			110,549,396
INVESTMENT COMPANIES – 1.27%
China Development Financial
Holding Co.	63,753,808		29,409,951
			29,409,951
IRON & STEEL – 2.97%
China Steel Corp.	62,139,468		68,834,312
			68,834,312
LEISURE TIME – 0.11%
Giant Manufacturing Co. Ltd.	1,614,914		2,470,157
			2,470,157
MANUFACTURING – 0.31%
Largan Precision Co. Ltd.	523,000		7,182,322
			7,182,322
METAL FABRICATE & HARDWARE – 1.20%
CatcherTechnology Co. Ltd.	2,421,707		24,253,818
Yieh Phui Enterprise Co. Ltd.	8,070,413		3,441,253
			27,695,071
MULTIPLE UTILITIES – 0.19%
Fu Sheng Industrial Co. Ltd.	4,842,292		4,526,331
			4,526,331
OFFICE & BUSINESS EQUIPMENT – 0.13%
Kinpo Electronics Inc.	8,070,181		3,061,525
			3,061,525
OIL & GAS – 1.24%
Formosa Petrochemical Corp.	13,719,000		28,603,803
			28,603,803

SCHEDULES OF INVESTMENTS 79

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2007

Security	Shares	Value
REAL ESTATE – 0.19%
Cathay Real Estate Development Co. Ltd.a	6,456,493	$	4,369,645
			4,369,645
RETAIL – 0.34%
President Chain Store Corp.	3,228,640		7,838,883
			7,838,883
SEMICONDUCTORS – 26.28%
Advanced Semiconductor
Engineering Inc.a	24,210,690		28,692,790
Macronix
International Co. Ltd.a	22,596,492		9,258,047
MediaTek Inc.	5,649,462		63,438,572
Novatek Microelectronics
Corp. Ltd.	3,228,284		15,969,963
Powerchip
Semiconductor Corp.	45,258,000		29,531,017
Realtek
Semiconductor Corp.	5,649,903		9,430,794
Siliconware Precision
Industries Co. Ltd.	16,947,240		30,808,488
Taiwan Semiconductor
Manufacturing Co. Ltd.	154,944,136		325,876,438
United Microelectronics Corp.	129,120,262		79,157,187
Via Technologies Inc.a	6,590,861		6,820,891
Winbond Electronics Corp.a	24,210,280		9,037,525
			608,021,712
TELECOMMUNICATIONS – 4.65%
Accton Technology Corp.a	4,842,259		3,188,985
Chunghwa Telecom Co. Ltd.	36,315,800		68,443,435
Compal Communications Inc.	878,000		2,997,724
D-Link Corp.	4,842,001		7,031,555
Inventec Appliances Corp.	952,000		2,418,282
Taiwan Cellular Corp.	19,368,920		18,751,701
Zyxel Communications Corp.	3,228,250		4,737,053
			107,568,735
TEXTILES – 0.88%
Far Eastern Textile Ltd.	17,754,612		15,249,029
Formosa Taffeta Co. Ltd.	6,456,515		5,094,671
			20,343,700

Security	Shares	Value
TRANSPORTATION – 0.87%
Evergreen Marine Corp. Ltd.	6,877,467	$	4,487,573
U-Ming Marine Transport Corp.	3,228,800		4,860,348
Wan Hai Lines Ltd.	7,263,794		4,772,721
Yang Ming Marine
Transport Corp.	8,877,667		6,062,140
			20,182,782
TOTAL COMMON STOCKS (Cost: $1,815,828,889)			2,308,801,574
SHORT-TERM INVESTMENTS – 0.04%
MONEY MARKET FUNDS – 0.04%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares
5.30%c,d	868,857		868,857
			868,857
TOTAL SHORT-TERM INVESTMENTS (Cost: $868,857)			868,857
TOTAL INVESTMENTS IN SECURITIES – 99.84% (Cost: $1,816,697,746)			2,309,670,431
Other Assets, Less Liabilities – 0.16%			3,710,447
NET ASSETS – 100.00%		$	2,313,380,878

^a Non-income earning security.

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

^c Affiliated issuer. See Note 2.

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

See notes to financial statements.

80 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2007

	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	$	800,176,832		$	1,954,032,646		$	890,175,456	$	12,159,920,067		$	1,306,187,855		$	751,143,281
Affiliated issuers (Note 2)		462,881			4,775,657			300,977		329,737,773			2,063,042			1,749,437
Total cost of investments	$	800,639,713		$	1,958,808,303		$	890,476,433	$	12,489,657,840		$	1,308,250,897		$	752,892,718
Investments in securities, at value (including securities on loana) (Note 1):
Unaffiliated issuers	$	941,883,581		$	2,873,127,572		$	1,041,868,180	$	14,621,530,609		$	1,509,527,464		$	968,796,268
Affiliated issuers (Note 2)		462,881			4,775,657			300,977		482,502,176			2,063,042			1,749,437
Total value of investments		942,346,462			2,877,903,229			1,042,169,157		15,104,032,785			1,511,590,506			970,545,705
Foreign currencies, at valueb		866,539			76,548			1,614,774		17,601,025			335,856			52
Receivables:
Investment securities sold		2,825,387			20,005,712			19,059,007		75,172,746			8,845,236			13,188,060
Dividends and interest		5,894,047			13,566,293			1,151,122		22,869,004			317,448			336,503
Capital shares sold		176,075			–			–		–			180,916			25,711,964
Total Assets		952,108,510			2,911,551,782			1,063,994,060		15,219,675,560			1,521,269,962			1,009,782,284
LIABILITIES
Payables:
Investment securities purchased		3,247,664			20,430,404			19,511,792		72,595,646			9,379,383			29,501,940
Collateral for securities on loan (Note 5)		26,926,855			–			–		1,012,041,200			151,086,959			–
Capital shares redeemed		–			–			7,650		7,872,631			647,834			9,144,407
Investment advisory fees (Note 2)		339,659			1,588,300			417,768		8,799,995			559,729			340,632
Total Liabilities		30,514,178			22,018,704			19,937,210		1,101,309,472			161,673,905			38,986,979
NET ASSETS	$	921,594,332		$	2,889,533,078		$	1,044,056,850	$	14,118,366,088		$	1,359,596,057		$	970,795,305
Net assets consist of:
Paid-in capital	$	743,026,579		$	2,006,138,989		$	857,444,873	$	10,550,852,671		$	1,146,301,615		$	807,157,887
Undistributed (distributions in excess of) net investment income		(8,620,956	)		6,732,702			1,852,400		(9,985,998	)		(2,705,876	)		(1,857,096	)
Undistributed net realized gain (accumulated net realized loss)		45,472,962			(42,452,875	)		33,076,625		963,273,264			12,660,932			(52,157,011	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		141,715,747			919,114,262			151,682,952		2,614,226,151			203,339,386			217,651,525
NET ASSETS	$	921,594,332		$	2,889,533,078		$	1,044,056,850	$	14,118,366,088		$	1,359,596,057		$	970,795,305
Shares outstanding		37,600,000			63,100,000			41,100,000		126,600,000			85,575,000			95,550,000
Net asset value per share	$	24.51		$	45.79		$	25.40	$	111.52		$	15.89		$	10.16

^a Securities on loan with market values of $25,613,280, $–, $–, $943,693,567, $142,949,306 and $–, respectively. See Note 5.

^b Cost of foreign currencies: $865,109, $76,011, $1,619,049, $17,699,753, $335,953 and $52, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 81

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2007

	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	$	1,022,020,905		$	2,225,531,792		$	1,435,069,183		$	346,621,973	$	1,149,974,451		$	1,815,828,889
Affiliated issuers (Note 2)		1,138,909			3,176,265			1,244,278			2,130		946,492			868,857
Total cost of investments	$	1,023,159,814		$	2,228,708,057		$	1,436,313,461		$	346,624,103	$	1,150,920,943		$	1,816,697,746
Investments in securities, at value (including securities on loana) (Note 1):
Unaffiliated issuers	$	1,103,260,681		$	3,034,606,688		$	1,669,448,400		$	356,927,668	$	1,768,625,022		$	2,308,801,574
Affiliated issuers (Note 2)		1,138,909			3,176,265			1,244,278			2,130		946,492			868,857
Total value of investments		1,104,399,590			3,037,782,953			1,670,692,678			356,929,798		1,769,571,514			2,309,670,431
Foreign currencies, at valueb		1,285,141			2,029,107			880,401			336,114		–			4,761,119
Receivables:
Investment securities sold		40,367,940			23,559,020			–			534,469		2,426,720			68,092,781
Dividends and interest		75,316			12,963,644			653,054			296		21,963,388			5,396
Capital shares sold		–			205,738			501,117			–		–			–
Total Assets		1,146,127,987			3,076,540,462			1,672,727,250			357,800,677		1,793,961,622			2,382,529,727
LIABILITIES
Payables:
Investment securities purchased		41,424,506			25,537,677			–			508,888		–			68,006,052
Collateral for securities on loan (Note 5)		63,561,469			179,490,181			169,873,374			–		123,130,884			–
Capital shares redeemed		100,594			–			1,259,117			–		2,470,331			–
Investment advisory fees (Note 2)		480,392			1,083,128			576,941			191,676		886,936			1,142,797
Total Liabilities		105,566,961			206,110,986			171,709,432			700,564		126,488,151			69,148,849
NET ASSETS	$	1,040,561,026		$	2,870,429,476		$	1,501,017,818		$	357,100,113	$	1,667,473,471		$	2,313,380,878
Net assets consist of:
Paid-in capital	$	846,820,466		$	2,093,467,945		$	1,229,462,724		$	341,151,394	$	1,109,950,370		$	1,992,952,582
Undistributed (distributions in excess of) net investment income (accumulated net investment loss)		(1,131,513	)		(29,477,729	)		(4,987,676	)		385,000		17,243,015			(5,639,785	)
Undistributed net realized gain (accumulated net realized loss)		113,654,114			(2,652,611	)		42,160,298			5,259,264		(78,107,122	)		(166,904,752	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		81,217,959			809,091,871			234,382,472			10,304,455		618,387,208			492,972,833
NET ASSETS	$	1,040,561,026		$	2,870,429,476		$	1,501,017,818		$	357,100,113	$	1,667,473,471		$	2,313,380,878
Shares outstanding		20,600,000			22,400,000			128,100,000			3,100,000		33,750,000			161,400,000
Net asset value per share	$	50.51		$	128.14		$	11.72		$	115.19	$	49.41		$	14.33

^a Securities on loan with market values of $60,172,575, $169,155,837, $160,437,731, $–, $116,797,452 and $–, respectively. See Note 5.

^b Cost of foreign currencies: $1,307,091, $2,023,795, $879,487, $337,354, $– and $4,760,974, respectively.

See notes to financial statements.

82 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2007

	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
Dividends from unaffiliated issuersa	$	15,777,658		$	40,253,994		$	9,541,116		$	87,948,339		$	11,443,871		$	5,339,224
Dividends from affiliated issuers (Note 2)		–			–			–			1,284,241			–			–
Interest from affiliated issuers (Note 2)		15,601			170,726			9,885			562,694			47,830			23,580
Securities lending income		53,455			–			–			4,680,656			157,617			–
Total investment income		15,846,714			40,424,720			9,551,001			94,475,930			11,649,318			5,362,804
EXPENSES
Investment advisory fees (Note 2)		1,929,536			9,353,296			2,764,546			51,386,005			2,958,817			1,309,872
Foreign taxes (Note 1)		–			110,842			1,367			293,974			–			–
Total expenses		1,929,536			9,464,138			2,765,913			51,679,979			2,958,817			1,309,872
Less investment advisory fees waived		–			–			–			(253,832	)		–			–
Net expenses		1,929,536			9,464,138			2,765,913			51,426,147			2,958,817			1,309,872
Net investment income		13,917,178			30,960,582			6,785,088			43,049,783			8,690,501			4,052,932
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(2,285,842	)		25,814,635			(9,690,976	)		(32,864,625	)		(4,781,426	)		6,164,716
Investments in affiliated issuers (Note 2)		–			–			–			42,475,138			–			–
In-kind redemptions		59,898,854			–			54,152,024			1,079,506,510			38,929,428			–
Foreign currency transactions		72,252			(254,189	)		(172,002	)		670,670			(5,806	)		149,540
Net realized gain		57,685,264			25,560,446			44,289,046			1,089,787,693			34,142,196			6,314,256
Net change in unrealized appreciation (depreciation) on:
Investments		56,789,490			425,893,023			(10,391,386	)		837,228,621			98,811,441			112,346,885
Translation of assets and liabilities in foreign currencies		(16,734	)		6,065			(20,814	)		(408,480	)		(375	)		17
Net change in unrealized appreciation (depreciation)		56,772,756			425,899,088			(10,412,200	)		836,820,141			98,811,066			112,346,902
Net realized and unrealized gain		114,458,020			451,459,534			33,876,846			1,926,607,834			132,953,262			118,661,158
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	128,375,198		$	482,420,116		$	40,661,934		$	1,969,657,617		$	141,643,763		$	122,714,090

^a Net of foreign withholding tax of $518,238, $6,293,201, $1,567,547, $8,114,915, $– and $–, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 83

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2007

	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
Dividends from unaffiliated issuersa	$	6,866,166		$	40,803,269		$	7,724,917		$	4,442,123		$	22,282,064		$	1,208,408
Interest from affiliated issuers (Note 2)		28,126			56,472			40,604			4,008			53,542			80,692
Securities lending income		458,551			177,855			131,562			–			407,778			–
Total investment income		7,352,843			41,037,596			7,897,083			4,446,131			22,743,384			1,289,100
EXPENSES
Investment advisory fees (Note 2)		2,759,008			5,905,917			2,446,751			1,159,414			5,500,273			6,928,885
Foreign taxes (Note 1)		–			–			–			–			96			–
Total expenses		2,759,008			5,905,917			2,446,751			1,159,414			5,500,369			6,928,885
Net investment income (loss)		4,593,835			35,131,679			5,450,332			3,286,717			17,243,015			(5,639,785	)
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(2,011,944	)		(4,474,398	)		(1,654,265	)		(1,828,721	)		9,278,373			(8,616,332	)
In-kind redemptions		124,560,064			18,669,017			61,450,794			11,763,327			–			–
Foreign currency transactions		(34,260	)		263,014			25,030			(22,968	)		35,941			(108,084	)
Net realized gain (loss)		122,513,860			14,457,633			59,821,559			9,911,638			9,314,314			(8,724,416	)
Net change in unrealized appreciation (depreciation) on:
Investments		61,248,827			357,848,578			162,179,367			53,303,216			101,729,889			312,390,625
Translation of assets and liabilities in foreign currencies		(21,863	)		(96,481	)		(18,855	)		8,512			(263,363	)		126,431
Net change in unrealized appreciation (depreciation)		61,226,964			357,752,097			162,160,512			53,311,728			101,466,526			312,517,056
Net realized and unrealized gain		183,740,824			372,209,730			221,982,071			63,223,366			110,780,840			303,792,640
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	188,334,659		$	407,341,409		$	227,432,403		$	66,510,083		$	128,023,855		$	298,152,855

^a Net of foreign withholding tax of $–, $1,242,785, $–, $–, $4,365,200 and $268,356, respectively.

See notes to financial statements.

84 2007 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
	Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	13,917,178		$	20,156,434		$	30,960,582		$	43,261,595		$	6,785,088		$	9,118,778
Net realized gain (loss)		57,685,264			30,254,258			25,560,446			(13,454,900	)		44,289,046			88,304,312
Net change in unrealized appreciation (depreciation)		56,772,756			40,835,313			425,899,088			276,489,590			(10,412,200	)		43,740,392
Net increase in net assets resulting from operations		128,375,198			91,246,005			482,420,116			306,296,285			40,661,934			141,163,482
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(35,850,508	)		(16,397,050	)		(59,308,876	)		(20,219,476	)		(12,092,201	)		(4,108,502	)
Total distributions to shareholders		(35,850,508	)		(16,397,050	)		(59,308,876	)		(20,219,476	)		(12,092,201	)		(4,108,502	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		331,074,426			336,128,324			–			1,649,177,320			37,046,247			727,046,964
Cost of shares redeemed		(188,411,790	)		(93,925,541	)		(1,873,086	)		(19,244,643	)		(122,719,865	)		(183,241,984	)
Net increase (decrease) in net assets from capital share transactions		142,662,636			242,202,783			(1,873,086	)		1,629,932,677			(85,673,618	)		543,804,980
INCREASE (DECREASE) IN NET ASSETS		235,187,326			317,051,738			421,238,154			1,916,009,486			(57,103,885	)		680,859,960
NET ASSETS
Beginning of period		686,407,006			369,355,268			2,468,294,924			552,285,438			1,101,160,735			420,300,775
End of period	$	921,594,332		$	686,407,006		$	2,889,533,078		$	2,468,294,924		$	1,044,056,850		$	1,101,160,735
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(8,620,956	)	$	13,312,374		$	6,732,702		$	35,080,996		$	1,852,400		$	7,159,513
SHARES ISSUED AND REDEEMED
Shares sold		14,000,000			16,200,000			–			44,050,000			1,500,000			31,900,000
Shares redeemed		(8,200,000	)		(4,600,000	)		(50,000	)		(500,000	)		(5,000,000	)		(8,000,000	)
Net increase (decrease) in shares outstanding		5,800,000			11,600,000			(50,000	)		43,550,000			(3,500,000	)		23,900,000

See notes to financial statements.

FINANCIAL STATEMENTS 85

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
	Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	43,049,783		$	192,922,376		$	8,690,501		$	21,409,153		$	4,052,932		$	14,348,448
Net realized gain (loss)		1,089,787,693			1,340,943,115			34,142,196			45,228,751			6,314,256			(17,343,416	)
Net change in unrealized appreciation (depreciation)		836,820,141			667,014,214			98,811,066			17,114,750			112,346,902			40,249,132
Net increase in net assets resulting from operations		1,969,657,617			2,200,879,705			141,643,763			83,752,654			122,714,090			37,254,164
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(209,458,860	)		(113,762,995	)		(25,623,625	)		(17,872,090	)		(11,518,123	)		(14,088,338	)
Total distributions to shareholders		(209,458,860	)		(113,762,995	)		(25,623,625	)		(17,872,090	)		(11,518,123	)		(14,088,338	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,390,992,123			6,532,568,942			480,715,455			385,690,233			541,143,365			210,424,492
Cost of shares redeemed		(3,002,204,950	)		(3,651,163,544	)		(119,851,515	)		(206,843,656	)		(55,877,969	)		(246,831,356	)
Net increase (decrease) in net assets from capital share transactions		388,787,173			2,881,405,398			360,863,940			178,846,577			485,265,396			(36,406,864	)
INCREASE (DECREASE) IN NET ASSETS		2,148,985,930			4,968,522,108			476,884,078			244,727,141			596,461,363			(13,241,038	)
NET ASSETS
Beginning of period		11,969,380,158			7,000,858,050			882,711,979			637,984,838			374,333,942			387,574,980
End of period	$	14,118,366,088		$	11,969,380,158		$	1,359,596,057		$	882,711,979		$	970,795,305		$	374,333,942
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(9,985,998	)	$	156,423,079		$	(2,705,876	)	$	14,227,248		$	(1,857,096	)	$	5,608,095
SHARES ISSUED AND REDEEMED
Shares sold		31,650,000			71,850,000			31,050,000			28,575,000			54,150,000			27,900,000
Shares redeemed		(27,900,000	)		(38,850,000	)		(7,650,000	)		(15,450,000	)		(6,900,000	)		(33,525,000	)
Net increase (decrease) in shares outstanding		3,750,000			33,000,000			23,400,000			13,125,000			47,250,000			(5,625,000	)

See notes to financial statements.

86 2007 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
	Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,593,835		$	9,375,502		$	35,131,679		$	67,346,500		$	5,450,332		$	22,841,028
Net realized gain		122,513,860			128,613,827			14,457,633			71,241,794			59,821,559			31,826,561
Net change in unrealized appreciation (depreciation)		61,226,964			(14,767,360	)		357,752,097			163,112,452			162,160,512			28,410,392
Net increase in net assets resulting from operations		188,334,659			123,221,969			407,341,409			301,700,746			227,432,403			83,077,981
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(11,694,155	)		(6,377,728	)		(101,866,512	)		(62,872,256	)		(29,331,787	)		(14,378,298	)
Total distributions to shareholders		(11,694,155	)		(6,377,728	)		(101,866,512	)		(62,872,256	)		(29,331,787	)		(14,378,298	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		806,959,257			939,038,789			506,566,059			508,919,684			867,493,068			245,347,020
Cost of shares redeemed		(707,145,887	)		(547,333,327	)		(36,542,402	)		(174,924,729	)		(139,195,629	)		(80,563,776	)
Net increase in net assets from capital share transactions		99,813,370			391,705,462			470,023,657			333,994,955			728,297,439			164,783,244
INCREASE IN NET ASSETS		276,453,874			508,549,703			775,498,554			572,823,445			926,398,055			233,482,927
NET ASSETS
Beginning of period		764,107,152			255,557,449			2,094,930,922			1,522,107,477			574,619,763			341,136,836
End of period	$	1,040,561,026		$	764,107,152		$	2,870,429,476		$	2,094,930,922		$	1,501,017,818		$	574,619,763
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(1,131,513	)	$	5,968,807		$	(29,477,729	)	$	37,257,104		$	(4,987,676	)	$	18,893,779
SHARES ISSUED AND REDEEMED
Shares sold		17,000,000			24,400,000			4,000,000			4,800,000			77,300,000			28,700,000
Shares redeemed		(14,900,000	)		(14,700,000	)		(300,000	)		(1,700,000	)		(12,300,000	)		(9,500,000	)
Net increase in shares outstanding		2,100,000			9,700,000			3,700,000			3,100,000			65,000,000			19,200,000

See notes to financial statements.

FINANCIAL STATEMENTS 87

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
	Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006			Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	3,286,717		$	8,177,584		$	17,243,015		$	10,350,623		$	(5,639,785	)	$	45,072,947
Net realized gain (loss)		9,911,638			99,303,479			9,314,314			(54,701,832	)		(8,724,416	)		(76,184,152	)
Net change in unrealized appreciation (depreciation)		53,311,728			(95,009,170	)		101,466,526			299,045,492			312,517,056			123,093,505
Net increase in net assets resulting from operations		66,510,083			12,471,893			128,023,855			254,694,283			298,152,855			91,982,300
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(9,144,852	)		(4,618,354	)		(10,954,387	)		(7,841,332	)		(44,460,389	)		(16,050,567	)
Total distributions to shareholders		(9,144,852	)		(4,618,354	)		(10,954,387	)		(7,841,332	)		(44,460,389	)		(16,050,567	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		70,402,175			395,411,010			93,568,219			1,159,560,093			432,036,989			1,391,773,216
Cost of shares redeemed		(68,565,161	)		(258,896,840	)		(164,497,904	)		(483,534,641	)		(266,099,142	)		(326,594,755	)
Net increase (decrease) in net assets from capital share transactions		1,837,014			136,514,170			(70,929,685	)		676,025,452			165,937,847			1,065,178,461
INCREASE IN NET ASSETS		59,202,245			144,367,709			46,139,783			922,878,403			419,630,313			1,141,110,194
NET ASSETS
Beginning of period		297,897,868			153,530,159			1,621,333,688			698,455,285			1,893,750,565			752,640,371
End of period	$	357,100,113		$	297,897,868		$	1,667,473,471		$	1,621,333,688		$	2,313,380,878		$	1,893,750,565
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period	$	385,000		$	6,243,135		$	17,243,015		$	10,954,387		$	(5,639,785	)	$	44,460,389
SHARES ISSUED AND REDEEMED
Shares sold		650,000			3,650,000			1,950,000			26,100,000			30,300,000			111,950,000
Shares redeemed		(600,000	)		(2,450,000	)		(3,450,000	)		(10,950,000	)		(19,550,000	)		(26,350,000	)
Net increase (decrease) in shares outstanding		50,000			1,200,000			(1,500,000	)		15,150,000			10,750,000			85,600,000

See notes to financial statements.

88 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	21.59		$	18.28		$	13.56		$	11.22		$	9.36		$	9.24
Income from investment operations:
Net investment incomea		0.43			0.75			0.70			0.45			0.32			0.23
Net realized and unrealized gain (loss)b		3.59			3.23			4.60			2.32			1.81			(0.07	)
Total from investment operations		4.02			3.98			5.30			2.77			2.13			0.16
Less distributions from:
Net investment income		(1.10	)		(0.67	)		(0.58	)		(0.43	)		(0.27	)		(0.04	)
Total distributions		(1.10	)		(0.67	)		(0.58	)		(0.43	)		(0.27	)		(0.04	)
Net asset value, end of period	$	24.51		$	21.59		$	18.28		$	13.56		$	11.22		$	9.36
Total return		18.89	%c		22.35	%		39.58	%		24.95	%		23.33	%		1.74	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	921,594		$	686,407		$	369,355		$	178,998		$	87,541		$	76,731
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.79	%		0.84	%		0.84	%
Ratio of net investment income to average net assetsd		3.77	%		3.75	%		4.13	%		3.37	%		3.21	%		2.47	%
Portfolio turnover ratee		4	%		7	%		17	%		9	%		8	%		5	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

FINANCIAL HIGHLIGHTS 89

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Brazil Index Fund
	Six months ended Feb. 28, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	39.09		$	28.18		$	16.96		$	12.19		$	8.30		$	11.20
Income from investment operations:
Net investment incomea		0.49			1.00			0.89			0.55			0.32			0.38
Net realized and unrealized gain (loss)b		7.15			10.49			10.79			4.49			3.68			(3.28	)
Total from investment operations		7.64			11.49			11.68			5.04			4.00			(2.90	)
Less distributions from:
Net investment income		(0.94	)		(0.58	)		(0.46	)		(0.27	)		(0.11	)		–
Total distributions		(0.94	)		(0.58	)		(0.46	)		(0.27	)		(0.11	)		–
Net asset value, end of period	$	45.79		$	39.09		$	28.18		$	16.96		$	12.19		$	8.30
Total return		19.57	%c		41.13	%		69.72	%		41.42	%		48.85	%		(25.89	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,889,533		$	2,468,295		$	552,285		$	209,504		$	103,035		$	83,788
Ratio of expenses to average net assetsd		0.69	%		0.70	%		0.74	%		0.96	%		0.99	%		0.99	%
Ratio of expenses to average net assets exclusive of foreign taxesd		0.68	%		n/a			n/a			n/a			n/a			n/a
Ratio of net investment income to average net assetsd		2.27	%		2.65	%		3.94	%		3.59	%		3.59	%		3.50	%
Portfolio turnover ratee		4	%		15	%		48	%		106	%		85	%		103	%

^a Based on average shares outstanding throughout each period.

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

^c 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, 2007 and the years ended August 31, 2006 and August 31, 2005 would have been 4%, 13% and 9%, respectively. See Note 4.

See notes to financial statements.

90 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	24.69		$	20.30		$	14.33		$	12.25		$	9.49		$	10.70
Income from investment operations:
Net investment incomea		0.16			0.25			0.17			0.11			0.10			0.07
Net realized and unrealized gain (loss)b		0.83			4.29			6.00			2.17			2.69			(1.27	)
Total from investment operations		0.99			4.54			6.17			2.28			2.79			(1.20	)
Less distributions from:
Net investment income		(0.28	)		(0.15	)		(0.20	)		(0.20	)		(0.03	)		(0.01	)
Total distributions		(0.28	)		(0.15	)		(0.20	)		(0.20	)		(0.03	)		(0.01	)
Net asset value, end of period	$	25.40		$	24.69		$	20.30		$	14.33		$	12.25		$	9.49
Total return		4.03	%c		22.46	%		43.35	%		18.70	%		29.47	%		(11.23	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,044,057		$	1,101,161		$	420,301		$	325,298		$	503,407		$	66,420
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.70	%e		0.84	%		0.84	%
Ratio of expenses to average net assets exclusive of foreign taxesd		0.52	%		n/a			n/a			n/a			n/a			n/a
Ratio of net investment income to average net assetsd		1.28	%		1.09	%		1.00	%		0.81	%		0.98	%		0.70	%
Portfolio turnover ratef		5	%		20	%		9	%		10	%		10	%		5	%

^a Based on average shares outstanding throughout each period.

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

^c Not annualized.

^d Annualized for periods of less than one year.

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

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 91

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Emerging Markets Index Fund
	Six months ended Feb. 28, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005b			Year ended Aug. 31, 2004b			Period from Apr. 7, 2003a to Aug. 31, 2003b
Net asset value, beginning of period	$	97.43		$	77.92		$	53.96		$	45.13		$	33.75
Income from investment operations:
Net investment incomec		0.33			1.65			1.65			1.13			0.26
Net realized and unrealized gaind		15.33			18.85			24.72			7.97			11.12
Total from investment operations		15.66			20.50			26.37			9.10			11.38
Less distributions from:
Net investment income		(1.57	)		(0.99	)		(2.41	)		(0.27	)		–
Total distributions		(1.57	)		(0.99	)		(2.41	)		(0.27	)		–
Net asset value, end of period	$	111.52		$	97.43		$	77.92		$	53.96		$	45.13
Total return		16.09	%e		26.44	%		46.17	%		20.21	%		33.72	%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	14,118,366		$	11,969,380		$	7,000,858		$	1,958,596		$	297,846
Ratio of expenses to average net assets prior to waived feesf		0.75	%		0.77	%		0.78	%		0.77	%		0.78	%
Ratio of expenses to average net assets after waived feesf		0.75	%		0.77	%		0.77	%		0.76	%		0.78	%
Ratio of expenses to average net assets after waived fees and exclusive of foreign taxesf		0.74	%		0.75	%		0.74	%		0.74	%		0.72	%
Ratio of net investment income to average net assetsf		0.63	%		1.77	%		2.40	%		2.10	%		1.58	%
Portfolio turnover rateg		4	%		12	%		9	%		8	%		10	%

^a Commencement of operations.

^b Per share amounts were adjusted to reflect a three-for-one stock split effective June 9, 2005.

^c Based on average shares outstanding throughout each period.

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

^e Not annualized.

^f Annualized for periods of less than one year.

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

See notes to financial statements.

92 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	14.20		$	13.01		$	10.91		$	9.03		$	7.99		$	8.93
Income from investment operations:
Net investment incomea		0.12			0.38			0.33			0.28			0.23			0.23
Net realized and unrealized gain (loss)b		1.88			1.17			2.04			1.75			0.95			(1.11	)
Total from investment operations		2.00			1.55			2.37			2.03			1.18			(0.88	)
Less distributions from:
Net investment income		(0.31	)		(0.36	)		(0.27	)		(0.15	)		(0.14	)		(0.06	)
Total distributions		(0.31	)		(0.36	)		(0.27	)		(0.15	)		(0.14	)		(0.06	)
Net asset value, end of period	$	15.89		$	14.20		$	13.01		$	10.91		$	9.03		$	7.99
Total return		14.13	%c		12.20	%		21.96	%		22.69	%		15.14	%		(9.94	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,359,596		$	882,712		$	637,985		$	449,923		$	250,627		$	99,502
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.80	%		0.84	%		0.84	%
Ratio of net investment income to average net assetsd		1.53	%		2.87	%		2.75	%		2.78	%		3.06	%		2.56	%
Portfolio turnover ratee		4	%		10	%		6	%		5	%		10	%		15	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

FINANCIAL HIGHLIGHTS 93

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Malaysia Index Fund
	Six months ended Feb. 28, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	7.75		$	7.19		$	6.54		$	5.99		$	5.68		$	5.11
Income from investment operations:
Net investment incomea		0.07			0.26			0.20			0.13			0.10			0.08
Net realized and unrealized gainb		2.54			0.59			0.61			0.52			0.30			0.52
Total from investment operations		2.61			0.85			0.81			0.65			0.40			0.60
Less distributions from:
Net investment income		(0.20	)		(0.29	)		(0.16	)		(0.10	)		(0.09	)		(0.03	)
Total distributions		(0.20	)		(0.29	)		(0.16	)		(0.10	)		(0.09	)		(0.03	)
Net asset value, end of period	$	10.16		$	7.75		$	7.19		$	6.54		$	5.99		$	5.68
Total return		33.96	%c		12.35	%		12.39	%		11.01	%		7.39	%		11.82	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	970,795		$	374,334		$	387,575		$	224,218		$	99,730		$	93,262
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.79	%		0.84	%		0.84	%
Ratio of net investment income to average net assetsd		1.61	%		3.46	%		2.85	%		1.97	%		1.91	%		1.53	%
Portfolio turnover ratee		15	%		60	%		15	%		39	%		35	%		37	%

^a Based on average shares outstanding throughout each period.

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

^c 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, 2007 and the years ended August 31, 2006 and August 31, 2005 would have been 3%, 9% and 9%, respectively. See Note 4.

See notes to financial statements.

94 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	41.30		$	29.04		$	19.35		$	15.04		$	13.65		$	15.35
Income from investment operations:
Net investment incomea		0.21			0.76			0.42			0.26			0.19			0.32
Net realized and unrealized gain (loss)b		9.46			11.98			9.55			4.26			1.72			(1.95	)
Total from investment operations		9.67			12.74			9.97			4.52			1.91			(1.63	)
Less distributions from:
Net investment income		(0.46	)		(0.48	)		(0.28	)		(0.21	)		(0.52	)		(0.07	)
Total distributions		(0.46	)		(0.48	)		(0.28	)		(0.21	)		(0.52	)		(0.07	)
Net asset value, end of period	$	50.51		$	41.30		$	29.04		$	19.35		$	15.04		$	13.65
Total return		23.43	%c		44.11	%		51.77	%		30.28	%		14.60	%		(10.67	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,040,561		$	764,107		$	255,557		$	129,623		$	60,155		$	70,994
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.78	%		0.84	%		0.84	%
Ratio of net investment income to average net assetsd		0.87	%		2.06	%		1.70	%		1.40	%		1.43	%		2.05	%
Portfolio turnover ratee		16	%		12	%		9	%		12	%		13	%		8	%

^a Based on average shares outstanding throughout each period.

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

^c 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.

FINANCIAL HIGHLIGHTS 95

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Pacific ex-Japan Index Fund
	Six months ended Feb. 28, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			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	$	112.03		$	97.57		$	75.73		$	62.03		$	52.51		$	50.03
Income from investment operations:
Net investment incomeb		1.79			3.83			3.70			2.68			1.87			1.35
Net realized and unrealized gainc		19.52			14.33			21.15			12.53			8.53			1.40
Total from investment operations		21.31			18.16			24.85			15.21			10.40			2.75
Less distributions from:
Net investment income		(5.20	)		(3.70	)		(3.01	)		(1.51	)		(0.88	)		(0.27	)
Total distributions		(5.20	)		(3.70	)		(3.01	)		(1.51	)		(0.88	)		(0.27	)
Net asset value, end of period	$	128.14		$	112.03		$	97.57		$	75.73		$	62.03		$	52.51
Total return		19.23	%d		19.17	%		33.27	%		24.74	%		20.15	%		5.51	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,870,429		$	2,094,931		$	1,522,107		$	651,250		$	223,298		$	105,029
Ratio of expenses to average net assetse		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assetse		2.97	%		3.67	%		4.09	%		3.68	%		3.47	%		2.87	%
Portfolio turnover ratef		4	%		8	%		16	%		8	%		8	%		5	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

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

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

96 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	9.11		$	7.77		$	6.52		$	5.38		$	5.01		$	5.34
Income from investment operations:
Net investment incomea		0.06			0.40			0.38			0.22			0.12			0.07
Net realized and unrealized gain (loss)b		2.86			1.23			1.15			1.04			0.33			(0.36	)
Total from investment operations		2.92			1.63			1.53			1.26			0.45			(0.29	)
Less distributions from:
Net investment income		(0.31	)		(0.29	)		(0.28	)		(0.12	)		(0.08	)		(0.04	)
Total distributions		(0.31	)		(0.29	)		(0.28	)		(0.12	)		(0.08	)		(0.04	)
Net asset value, end of period	$	11.72		$	9.11		$	7.77		$	6.52		$	5.38		$	5.01
Total return		32.31	%c		21.61	%		24.06	%		23.47	%		9.30	%		(5.42	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,501,018		$	574,620		$	341,137		$	170,047		$	108,202		$	88,126
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.57	%		0.79	%		0.84	%		0.84	%
Ratio of net investment income to average net assetsd		1.16	%		4.74	%		5.19	%		3.50	%		2.67	%		1.44	%
Portfolio turnover ratee		4	%		6	%		8	%		9	%		14	%		9	%

^a Based on average shares outstanding throughout each period.

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

^c 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 the financial statements.

FINANCIAL HIGHLIGHTS 97

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI South Africa Index Fund
	Six months ended Feb. 28, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Period from Feb. 3, 2003a to Aug. 31, 2003
Net asset value, beginning of period	$	97.67		$	82.99		$	59.92		$	46.81		$	38.72
Income from investment operations:
Net investment incomeb		1.02			2.87			1.92			1.23			0.89
Net realized and unrealized gainc		19.01			13.78			22.36			13.24			7.20
Total from investment operations		20.03			16.65			24.28			14.47			8.09
Less distributions from:
Net investment income		(2.51	)		(1.97	)		(1.21	)		(1.36	)		–
Total distributions		(2.51	)		(1.97	)		(1.21	)		(1.36	)		–
Net asset value, end of period	$	115.19		$	97.67		$	82.99		$	59.92		$	46.81
Total return		20.57	%d		20.06	%		40.62	%		31.30	%		20.89	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	357,100		$	297,898		$	153,530		$	92,882		$	81,914
Ratio of expenses to average net assetse		0.68	%		0.70	%		0.74	%		0.95	%		0.99	%
Ratio of net investment income to average net assetse		1.94	%		2.79	%		2.62	%		2.23	%		3.86	%
Portfolio turnover ratef		3	%		7	%		32	%		13	%		17	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

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

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

98 2007 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, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	46.00		$	34.75		$	24.17		$	23.06		$	21.17		$	13.25
Income from investment operations:
Net investment income (loss)a		0.51			0.31			0.46			0.22			0.19			(0.00	)b
Net realized and unrealized gainc		3.23			11.20			10.22			1.13			1.70			7.92
Total from investment operations		3.74			11.51			10.68			1.35			1.89			7.92
Less distributions from:
Net investment income		(0.33	)		(0.26	)		(0.10	)		(0.24	)		–			–
Total distributions		(0.33	)		(0.26	)		(0.10	)		(0.24	)		–			–
Net asset value, end of period	$	49.41		$	46.00		$	34.75		$	24.17		$	23.06		$	21.17
Total return		8.13	%d		33.16	%		44.29	%		5.83	%		8.93	%		59.77	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,667,473		$	1,621,334		$	698,455		$	315,464		$	154,486		$	96,336
Ratio of expenses to average net assetse		0.68	%		0.70	%		0.74	%		0.94	%		0.99	%		1.00	%
Ratio of expenses to average net assets exclusive of foreign taxese		0.68	%		0.70	%		0.74	%		0.94	%		0.99	%		0.99	%
Ratio of net investment income (loss) to average net assetse		2.15	%		0.71	%		1.49	%		0.87	%		0.98	%		(0.01	)%
Portfolio turnover ratef		6	%		47	%		30	%		29	%		39	%		25	%

^a Based on average shares outstanding throughout each period.

^b Rounds to less than $0.01.

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

^d Not annualized.

^e Annualized for periods of less than one year.

^f Portfolio turnover rates 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, 2007 and the years ended August 31, 2006 and August 31, 2005 would have been 0% and 14% and 9%, respectively. See Note 4.

See notes to the financial statements.

FINANCIAL HIGHLIGHTS 99

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Taiwan Index Fund
	Six months ended Feb. 28, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	12.57		$	11.57		$	10.66		$	10.79		$	8.82		$	9.01
Income from investment operations:
Net investment income (loss)a		(0.04	)		0.34			0.27			0.14			0.04			(0.03	)
Net realized and unrealized gain (loss)b		2.10			0.80			0.72			(0.25	)		1.93			(0.16	)
Total from investment operations		2.06			1.14			0.99			(0.11	)		1.97			(0.19	)
Less distributions from:
Net investment income		(0.30	)		(0.14	)		(0.08	)		(0.02	)		–			–
Total distributions		(0.30	)		(0.14	)		(0.08	)		(0.02	)		–			–
Net asset value, end of period	$	14.33		$	12.57		$	11.57		$	10.66		$	10.79		$	8.82
Total return		16.42	%c		9.84	%		9.28	%		(1.10	)%		22.45	%		(2.11	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,313,381		$	1,893,751		$	752,640		$	390,228		$	234,727		$	142,043
Ratio of expenses to average net assetsd		0.68	%		0.85	%		1.03	%		1.19	%e		1.31	%		1.33	%
Ratio of expenses to average net assets exclusive of foreign taxesd		n/a			0.70	%		0.74	%		0.92	%		0.99	%		0.99	%
Ratio of net investment income (loss) to average net assetsd		(0.56	)%		2.74	%		2.34	%		1.23	%		0.43	%		(0.28	)%
Portfolio turnover ratef		19	%		29	%		20	%		19	%		15	%		11	%

^a Based on average shares outstanding throughout each period.

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

^c Not annualized.

^d Annualized for periods of less than one year.

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

^f 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, 2007 and the years ended August 31, 2006 and August 31, 2005 would have been 5%, 10% and 10%, respectively. See Note 4.

See notes to the financial statements.

100 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

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, 2007, 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 that market’s equity securities index compiled by Morgan Stanley Capital International Inc. (“MSCI”). The investment adviser uses a “passive” or index approach to achieve each Fund’s investment objective. Each of the Funds is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold securities of fewer companies than diversified funds and may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.

Each Fund invests in the securities of 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; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets and the risk of war.

Pursuant to the 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.

1. SIGNIFICANT ACCOUNTING POLICIES

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 the financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

SECURITY VALUATION

The securities and other assets of each Fund are generally valued using market valuations. A market valuation generally means a valuation (i) obtained from an exchange, a pricing service or a major market maker (or dealer), (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker (or dealer) or (iii) based on amortized cost. In the case of shares of funds that are not traded on an exchange, a market valuation means such fund’s published net asset value per share. The investment adviser may use various pricing services or discontinue the use of any pricing service. A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. In the event that current market valuations are not readily available or such valuations do not reflect current market values, the affected investments will be valued using fair value pricing pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”).

NOTES TO FINANCIAL STATEMENTS 101

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source, and interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Any use of a rate different from the rates used by MSCI may adversely affect a Fund’s ability to track its underlying index. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

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

FOREIGN TAXES

Certain countries may levy taxes on stock dividends (based on the par value of the stock dividends received) and other taxable corporate events (i.e. spin-offs and tender offers) by companies whose securities are held by the Funds. These foreign taxes, if any, are paid by the Funds receiving the stock dividends or holding the securities subject to the taxable corporate event, and are disclosed in their respective Statements 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 capital gains, if any, generally are declared and distributed once a year. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

The tax character of current year distributions will be determined at the end of the current fiscal year.

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, 2007.

102 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The Funds had tax basis net capital loss carryforwards as of August 31, 2006, 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		Expiring 2013		Expiring 2014		Total
Australia	$	–	$	71,019	$	1,971,994	$	3,625,203	$	650,082	$	596,240	$	384,424	$	–	$	7,298,962
Brazil		–		–		–		–		45,165,910		–		–		–		45,165,910
Canada		–		–		–		–		–		–		2,931,648		–		2,931,648
Emerging Markets		–		–		–		–		–		840,778		20,296,564		11,239,258		32,376,600
Hong Kong		4,085,707		–		–		4,971,970		2,870,602		2,330,414		468,716		425,440		15,152,849
Malaysia		8,654,333		–		–		9,819,029		2,898,105		775,477		6,820,474		1,543,708		30,511,126
Mexico		–		–		–		1,319,032		2,329,290		3,136,171		12,912		632,766		7,430,171
Pacific ex-Japan		–		–		–		–		329,461		2,563,114		1,175,692		853,529		4,921,796
Singapore		–		–		–		3,754,702		4,428,316		4,256,421		2,558,348		–		14,997,787
South Africa		–		–		–		–		–		527,613		–		260,738		788,351
South Korea		–		–		556,540		666,642		504,041		3,363,449		11,590,303		3,172,573		19,853,548
Taiwan		–		–		–		12,532,361		8,689,663		9,129,874		12,022,719		14,435,986		56,810,603

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

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

Each Fund reclassifies at the end of its tax year certain amounts to paid-in-capital from accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss), respectively, as a result of permanent book and tax differences primarily attributed to net investment loss, return of capital, passive foreign investment companies, realized foreign currency gains and losses and gains and losses on in-kind redemptions. These reclassifications have no effect on net assets or net asset values per share.

As of February 28, 2007, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares MSCI Index Fund	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation
Australia	$	817,754,528	$	125,373,100	$	(781,166	)	$	124,591,934
Brazil		1,981,939,958		909,121,908		(13,158,637	)		895,963,271
Canada		900,135,841		159,909,030		(17,875,714	)		142,033,316
Emerging Markets		12,544,303,209		2,727,686,992		(167,957,416	)		2,559,729,576
Hong Kong		1,317,631,230		207,056,616		(13,097,340	)		193,959,276
Malaysia		778,223,898		192,321,807		–			192,321,807
Mexico		1,025,425,089		79,238,132		(263,631	)		78,974,501
Pacific ex-Japan		2,276,648,447		764,518,287		(3,383,781	)		761,134,506
Singapore		1,443,282,303		228,711,603		(1,301,228	)		227,410,375
South Africa		350,069,386		27,060,739		(20,200,327	)		6,860,412
South Korea		1,176,939,961		607,850,849		(15,219,296	)		592,631,553
Taiwan		1,864,789,717		474,368,787		(29,488,073	)		444,880,714

NOTES TO FINANCIAL STATEMENTS 103

Notes to 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.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Company, Barclays Global Fund Advisors (“BGFA”) manages the investment of each Fund’s assets. BGFA is a California corporation indirectly owned by Barclays Bank PLC. Under the Investment Advisory Agreement, BGFA is responsible for all expenses (“Covered Expenses”) of 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 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 of the average daily 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 Average Daily Net Assets
0.59%	First $7 billion
0.54	Over $7 billion, up to and including $11 billion
0.49	Over $11 billion, up to and including $24 billion
0.44	Over $24 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 of the average daily net assets of these four Funds as follows:

Investment Advisory Fee	Aggregate Average Daily 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 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 MSCI Index Funds, as follows:

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

104 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

BGFA voluntarily waived its advisory fees for the iShares MSCI Emerging Markets Index Fund in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares MSCI Index Funds.

For its investment advisory services to the iShares MSCI Pacific ex-Japan Index Fund, BGFA is entitled to an annual investment advisory fee of 0.50% of the average daily net assets of the Fund.

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 and expenses are Covered Expenses as defined above.

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

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SEC”), the Funds are permitted to lend portfolio securities to Barclays Capital Inc. (“BarCap”). Pursuant to the same exemptive order, Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Company. BarCap and BGI are affiliates of BGFA, the Funds’ investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 28, 2007, BGI earned securities lending agent fees as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees
Australia	$	53,455
Emerging Markets		4,680,656
Hong Kong		157,617
Mexico		458,551

iShares MSCI Index Fund	Securities Lending Agent Fees
Pacific ex-Japan	$	177,855
Singapore		131,562
South Korea		407,778

Cross trades for the six months ended February 28, 2007, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

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

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 MSCI Index Funds that invest in securities in the Fund’s benchmark index. As of February 28,

NOTES TO FINANCIAL STATEMENTS 105

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

2007, 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 direct investment by the iShares MSCI Emerging Markets Index Fund (exclusive of short-term investments) in issuers of which BGFA is an affiliate, or issuers of which the Fund owns 5% or more of the outstanding voting securities, for the six months ended February 28, 2007.

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 Income		Net Realized Gain
iShares MSCI Malaysia
Index Fund	1,039	–	137	902	$	9,083,694	$	176,251	$	101,664
iShares MSCI South Korea
Index Fund	546	140	124	562		27,546,930		197,279		2,693,944
iShares MSCI Taiwan Index Fund	2,812	724	639	2,897		40,361,562		910,711		1,447,929
Siliconware Precision
Industries Co. ADR	33,802	8,708	7,676	34,834		316,288,797		–		29,010,853
Sociedad Quimica y
Minera de Chile SA ADR	595	153	135	613		83,668,245		–		9,220,748

As of February 28, 2007, certain directors and officers of the Company are also officers of BGI and/or BGFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2007, were as follows:

iShares MSCI Index Fund	Purchases		Sales
Australia	$	29,638,371	$	51,056,331
Brazil		119,462,067		157,402,562
Canada		56,327,114		60,052,296
Emerging Markets		488,614,871		654,904,620
Hong Kong		43,838,296		45,011,216
Malaysia		555,285,942		77,817,962
Mexico		159,522,777		171,740,630
Pacific ex-Japan		97,665,138		156,881,531
Singapore		41,242,318		43,955,489
South Africa		9,541,711		15,244,654
South Korea		92,486,111		177,896,965
Taiwan		533,476,049		394,617,655

106 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

In-kind transactions (see Note 4) for the six months ended February 28, 2007, were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Australia	$	328,228,675	$	187,119,604
Canada		36,772,067		122,248,221
Emerging Markets		3,346,003,381		2,962,131,369
Hong Kong		461,519,299		115,385,238
Mexico		804,688,320		700,295,694
Pacific ex-Japan		500,897,145		36,310,702
Singapore		850,279,670		136,161,055
South Africa		70,331,944		68,462,949

4. CAPITAL SHARE TRANSACTIONS

The Company has been authorized to issue 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
Australia	127,800,000
Brazil	500,000,000
Canada	340,200,000
Emerging Markets	500,000,000
Hong Kong	191,400,000
Malaysia	127,800,000

iShares MSCI Index Fund	Authorized Shares
Mexico	255,000,000
Pacific ex-Japan	500,000,000
Singapore	191,400,000
South Africa	200,000,000
South Korea	200,000,000
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). Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to Investors Bank, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash pay an additional variable charge to compensate the relevant Fund for brokerage and market impact expenses relating to investing in portfolio securities.

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the market

NOTES TO FINANCIAL STATEMENTS 107

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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

As of February 28, 2007, certain Funds had loaned securities which were collateralized by cash. Pursuant to an exemptive order issued by the SEC, the cash collateral received was invested in a joint account with other investment funds managed by BGFA. The joint account invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds, including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities or non-U.S. Government debt securities. The market value of the securities on loan as of February 28, 2007 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, as disclosed in the Funds’ Statements of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to BGI as securities lending agent.

6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

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

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

108 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 109

The iShares^® Family of Funds

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

iShares S&P Domestic Index Funds

iShares S&P 1500 (ISI)

iShares S&P 100 (OEF)

iShares S&P 500 (IVV)

iShares S&P 500 Growth (IVW)

iShares S&P 500 Value (IVE)

iShares S&P MidCap 400 (IJH)

iShares S&P MidCap 400 Growth (IJK)

iShares S&P MidCap 400 Value (IJJ)

iShares S&P SmallCap 600 (IJR)

iShares S&P SmallCap 600 Growth (IJT)

iShares S&P SmallCap 600 Value (IJS)

iShares Domestic Sector Index Funds

iShares Cohen & Steers Realty Majors (ICF)

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

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

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

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

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

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

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

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

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

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

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

iShares Dow Jones Transportation Average (IYT)

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

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

iShares 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 Nasdaq Biotechnology (IBB)

iShares Domestic Subsector Index Funds

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

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

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

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

iShares Dow Jones U.S. Insurance (IAK)

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

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

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

iShares Dow Jones U.S. Pharmaceuticals (IHE)

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

iShares Global Index Funds

iShares S&P Global 100 (IOO)

iShares S&P Global Consumer

    Discretionary Sector (RXI)

iShares S&P Global Consumer Staples

    Sector (KXI)

iShares S&P Global Energy Sector (IXC)

iShares S&PGlobal Financials Sector(IXG)

iShares S&PGlobal Healthcare Sector(IXJ)

iShares S&PGlobal Industrials Sector(EXI)

iShares S&PGlobal Materials Sector(MXI)

iShares S&PGlobal Technology Sector(IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares S&P Global Utilities Sector (JXI)

iShares Russell Index Funds

iShares Russell 3000 (IWV)

iShares Russell 3000 Growth (IWZ)

iShares Russell 3000 Value (IWW)

iShares Russell 1000 (IWB)

iShares Russell 1000 Growth (IWF)

iShares Russell 1000 Value (IWD)

iShares Russell Midcap (IWR)

iShares Russell Midcap Growth (IWP)

iShares Russell Midcap Value (IWS)

iShares Russell 2000 (IWM)

iShares Russell 2000 Growth (IWO)

iShares Russell 2000 Value (IWN)

iShares Russell Microcap™ (IWC)

iShares International Country

Index Funds

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria (EWO)

iShares MSCI Belgium (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Malaysia (EWM)

iShares MSCI Mexico (EWW)

iShares MSCI Netherlands (EWN)

iShares MSCI Singapore (EWS)

iShares MSCI South Africa (EZA)

iShares MSCI South Korea (EWY)

iShares MSCI Spain (EWP)

iShares MSCI Sweden (EWD)

iShares MSCI Switzerland (EWL)

iShares MSCI Taiwan (EWT)

iShares MSCI United Kingdom (EWU)

iShares S&P/TOPIX 150 (ITF)

iShares Bond Funds

iShares Lehman Aggregate (AGG)

iShares Lehman Short Treasury (SHV)

iShares Lehman 1-3 YearTreasury (SHY)

iShares Lehman 3-7 YearTreasury (IEI)

iShares Lehman 7-10 YearTreasury (IEF)

iShares Lehman 10-20 YearTreasury (TLH)

iShares Lehman 20+ YearTreasury (TLT)

iShares Lehman TIPS (TIP)

iShares Lehman Credit (CFT)

iShares Lehman 1-3 Year Credit (CSJ)

iShares Lehman Intermediate Credit (CIU)

iShares iBoxx $ Investment Grade Corporate (LQD)

iShares Lehman Government/Credit (GBF)

iShares Lehman Intermediate Government/Credit (GVI)

iShares Lehman MBS Fixed-Rate (MBB)

iShares iBoxx $ High Yield Corporate (HYG)

iShares Specialty Index Funds

iShares KLD Select Social ^SM (KLD)

iShares KLD 400 Social (DSI)

iShares Dow Jones Select Dividend (DVY)

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

iShares International Index Funds

iShares MSCI EAFE (EFA)

iShares MSCI EAFE Growth (EFG)

iShares MSCI EAFEValue (EFV)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI Pacific ex-Japan (EPP)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

iShares NYSE Index Funds

iShares NYSE Composite (NYC)

iShares NYSE 100 (NY)

iShares^® is a registered trademarkof 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 (“FXI”), iBoxx, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The Nasdaq Stock Market, Inc., New York Stock Exchange LLC, Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. iBoxx is a registered trademarkof International Index Company Limited. “Goldman Sachs^®” is a trademarkof Goldman, Sachs & Co. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. “FTSE” is a trade and service mark of London Stock Exchange and The Financial Times; “Xinhua” is a trade and service mark of Xinhua Financial Network Limited.

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 2007 Semi-Annual Report.

110 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Table of Contents

Fund Performance Overview	1
Shareholder Expenses	2
Schedule of Investments	3
Financial Statements	15
Financial Highlights	18
Notes to Financial Statements	19
iShares Family of Funds	26

Fund Performance Overview

iSHARES^® MSCI JAPAN INDEX FUND

Performance as of February 28, 2007

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 represented by the MSCI Japan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 8.15%, while the Index returned 8.35%.

Average Annual Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
6.53%	7.50%	7.01%	15.04%	14.90%	15.63%	2.82%	2.74%	3.58%
Cumulative Total Returns
Year Ended 2/28/07			Five Years Ended 2/28/07			Ten Years Ended 2/28/07
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
6.53%	7.50%	7.01%	101.51%	100.27%	106.67%	32.06%	31.00%	42.13%

“Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

The Fund’s per share net asset value or ”NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund, and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

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

PORTFOLIO ALLOCATION As of 2/28/07
Sector	Percentage of Net Assets
Consumer Cyclical	25.06	%
Financial	20.66
Industrial	20.37
Consumer Non-Cyclical	9.93
Basic Materials	8.78
Utilities	4.79
Technology	4.75
Communications	4.56
Energy	0.95
Short-Term and Other Net Assets	0.15
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/07
Security	Percentage of Net Assets
Toyota Motor Corp.	6.48	%
Mitsubishi UFJ Financial Group Inc.	3.47
Mizuho Financial Group Inc.	2.21
Sumitomo Mitsui Financial Group Inc.	2.07
Canon Inc.	1.93
Takeda Pharmaceutical Co. Ltd.	1.93
Honda Motor Co. Ltd.	1.93
Sony Corp.	1.76
Nippon Steel Corp.	1.38
Tokyo Electric Power Co. Inc. (The)	1.37
TOTAL	24.53	%

FUND PERFORMANCE OVERVIEW 1

Shareholder Expenses (Unaudited)

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, 2006 to February 28, 2007.

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 (9/1/06)		Ending Account Value (2/28/07)		Annualized Expense Ratio		Expenses Paid During Period a (9/1/06 to 2/28/07)
Actual	$	1,000.00	$	1,081.50	0.52	%	$	2.68
Hypothetical (5% return before expenses)		1,000.00		1,022.20	0.52			2.61

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

2 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Shares	Value
COMMON STOCKS – 99.85%
ADVERTISING – 0.24%
Asatsu-DK Inc.	167,800	$	5,225,826
Dentsu Inc.	8,390		23,367,515
Hakuhodo DY Holdings Inc.	117,460		7,930,793
			36,524,134
AGRICULTURE – 0.72%
Japan Tobacco Inc.	23,492		107,263,974
			107,263,974
AIRLINES – 0.14%
All Nippon Airways Co. Ltd.	3,356,000		13,114,133
Japan Airlines Corp.a,b	3,356,000		7,420,956
			20,535,089
APPAREL – 0.20%
Asics Corp.	461,000		5,384,850
Gunze Ltd.	1,678,000		9,573,600
Onward Kashiyama Co. Ltd.	1,105,000		15,416,002
			30,374,452
AUTO MANUFACTURERS – 9.34%
Hino Motors Ltd.	1,678,000		9,304,520
Honda Motor Co. Ltd.	7,718,800		287,944,431
Nissan Motor Co. Ltd.	11,227,100		130,004,483
Toyota Motor Corp.	14,263,000		965,432,418
			1,392,685,852
AUTO PARTS & EQUIPMENT – 1.66%
Aisin Seiki Co. Ltd.	1,007,000		34,760,771
Bridgestone Corp.	3,020,400		63,474,668
Denso Corp.	2,517,700		97,958,366
JTEKT Corp.	503,400		8,879,656
NGK Spark Plug Co. Ltd.	629,000		11,918,007
NHK Spring Co. Ltd.	406,000		4,153,032
NOK Corp.	503,400		8,603,494
Sumitomo Rubber Industries Inc.	503,400		5,990,581
Tokai Rika Co. Ltd.	167,800		4,114,099
Toyoda Gosei Co. Ltd.	335,600		7,590,902
			247,443,576
BANKS – 11.11%
Bank of Fukuoka Ltd. (The)	3,356,000		28,295,936
Bank of Kyoto Ltd. (The)	433,000		4,849,483
Bank of Yokohama Ltd. (The)	6,712,000		54,835,768

Security	Shares	Value
Chiba Bank Ltd. (The)	3,356,000	$	32,006,414
Gunma Bank Ltd.	1,678,000		11,556,299
Hokuhoku Financial Group Inc.	6,717,000		25,284,061
Joyo Bank Ltd. (The)	3,356,000		22,007,951
Mitsubishi UFJ Financial Group Inc.	41,950		516,917,753
Mitsubishi UFJ Securities Co. Ltd.	1,678,000		20,039,414
Mitsui Trust Holdings Inc.	3,361,000		37,472,093
Mizuho Financial Group Inc.	46,984		329,127,906
Nishi-Nippon City Bank Ltd. (The)	3,356,000		16,116,504
Resona Holdings Inc.	23,493		66,621,497
Sapporo Hokuyo Holdings Inc.	1,128		11,709,837
77 Bank Ltd. (The)	1,678,000		11,882,028
Shinsei Bank Ltd.	6,712,000		35,915,162
Shizuoka Bank Ltd. (The)	3,356,000		35,830,189
Sumitomo Mitsui Financial Group Inc.	31,882		309,442,546
Sumitomo Trust & Banking Co. Ltd. (The)	6,712,000		76,022,315
Suruga Bank Ltd.	776,000		10,695,092
			1,656,628,248
BEVERAGES – 0.81%
Asahi Breweries Ltd.	1,678,000		27,474,532
Coca-Cola West Japan Co. Ltd.	335,600		7,520,091
Ito En Ltd.b	335,600		10,876,516
Kirin Brewery Co. Ltd.	4,038,000		62,400,962
Sapporo Holdings Ltd.b	1,678,000		12,490,999
			120,763,100
BUILDING MATERIALS – 1.30%
Asahi Glass Co. Ltd.	5,034,000		67,213,470
Daikin Industries Ltd.	1,174,600		41,934,068
JS Group Corp.	1,342,400		30,137,013
Matsushita Electric Works Ltd.	1,678,000		19,090,552
Nippon Sheet Glass Co. Ltd.	1,678,000		8,610,575
Sumitomo Osaka Cement Co. Ltd.	1,678,000		5,480,745
Taiheiyo Cement Corp.	5,034,000		22,092,923
			194,559,346
CHEMICALS – 3.79%
Asahi Kasei Corp.	6,712,000		49,170,916

SCHEDULE OF INVESTMENTS 3

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Shares	Value
Daicel Chemical Industries Ltd.	1,678,000	$	12,080,297
Dainippon Ink & Chemical Inc.	3,356,000		13,652,293
Denki Kagaku Kogyo Kabushiki Kaisha	3,356,000		15,153,480
Hitachi Chemical Co. Ltd.	335,600		7,803,334
JSR Corp.	839,000		19,402,118
Kaneka Corp.	1,678,000		15,649,155
Mitsubishi Chemical Holdings Corp.	5,873,000		47,535,190
Mitsubishi Gas Chemical Co. Inc.	1,678,000		18,212,499
Mitsui Chemicals Inc.	3,356,000		29,145,664
Nippon Kayaku Co. Ltd.	1,678,000		14,431,210
Nissan Chemical Industries Ltd.	1,103,000		14,122,049
Nitto Denko Corp.	839,000		42,840,444
Shin-Etsu Chemical Co. Ltd.	2,013,600		126,099,608
Showa Denko K.K.	5,034,000		19,033,903
Sumitomo Chemical Co. Ltd.	6,712,000		50,983,669
Taiyo Nippon Sanso Corp.	1,678,000		14,983,533
Tokuyama Corp.	908,000		15,748,323
Tosoh Corp.	3,356,000		17,249,474
Ube Industries Ltd.	5,042,000		16,255,593
Zeon Corp.	566,000		5,933,004
			565,485,756
COMMERCIAL SERVICES – 0.91%
Benesse Corp.	335,600		12,915,863
Dai Nippon Printing Co. Ltd.	3,356,000		50,700,427
Goodwill Group Inc. (The)b	6,712		5,149,351
Kamigumi Co. Ltd.	1,678,000		14,955,209
KK DaVinci Advisorsa	5,034		5,948,095
Park 24 Co. Ltd.b	335,600		4,704,660
TIS Inc.	335,600		6,925,281
Toppan Printing Co. Ltd.	3,356,000		33,904,140
			135,203,026
COMPUTERS – 1.04%
CSK Holdings Corp.	335,600		14,700,291
Fujitsu Ltd.	8,390,000		58,206,355
Itochu Techno-Science Corp.	167,800		8,114,901
Meitec Corp.b	167,800		5,254,150
Net One Systems Co. Ltd.	3,356		4,163,666
Obic Co. Ltd.	16,780		3,400,327

Security	Shares	Value
Otsuka Corp.	62,000	$	6,049,036
TDK Corp.	671,200		55,912,090
			155,800,816
COSMETICS & PERSONAL CARE – 0.84%
Aderans Co. Ltd.	167,800		4,319,450
Kao Corp.	2,608,000		76,158,839
Shiseido Co. Ltd.	1,678,000		35,546,947
Uni-Charm Corp.	167,800		9,998,464
			126,023,700
DISTRIBUTION & WHOLESALE – 3.79%
Canon Marketing Japan Inc.	167,800		3,646,749
Hitachi High-Technologies Corp.	167,800		4,687,665
ITOCHU Corp.	8,390,000		80,794,952
Marubeni Corp.	6,716,000		42,114,935
Mitsubishi Corp.	6,701,900		156,114,647
Mitsui & Co. Ltd.	8,390,000		150,826,687
Sojitz Corp.a	2,855,600		12,725,297
Sumitomo Corp.	5,034,000		90,496,012
Toyota Tsusho Corp.	839,000		23,296,704
			564,703,648
DIVERSIFIED FINANCIAL SERVICES – 3.60%
ACOM Co. Ltd.	352,380		13,056,068
Aeon Credit Service Co. Ltd.	504,270		9,575,959
AIFUL Corp.	335,600		9,120,412
Credit Saison Co. Ltd.	839,000		27,616,154
Daiwa Securities Group Inc.	6,712,000		85,029,430
Nikko Cordial Corp.	4,195,000		40,609,909
Nomura Holdings Inc.	8,725,600		189,630,924
ORIX Corp.	419,500		115,421,361
Promise Co. Ltd.	419,700		14,310,571
SFCG Co. Ltd.	16,780		2,733,291
Shinko Securities Co. Ltd.	1,678,000		8,907,980
Takefuji Corp.	552,870		21,557,660
			537,569,719
ELECTRIC – 4.08%
Chubu Electric Power Co. Inc.	3,349,900		112,808,381
Electric Power Development Co. Ltd.	839,000		42,273,958
Hokkaido Electric Power Co. Inc.	839,000		22,942,651
Kansai Electric Power Co. Inc. (The)	3,852,700		114,457,559

4 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Shares	Value
Kyushu Electric Power Co. Inc.	1,845,800	$	52,810,583
Tohoku Electric Power Co. Inc.	2,181,500		58,180,698
Tokyo Electric Power Co. Inc. (The)	5,873,000		204,713,593
			608,187,423
ELECTRICAL COMPONENTS & EQUIPMENT – 3.71%
Casio Computer Co. Ltd.	1,174,600		25,973,347
Fujikura Ltd.	1,678,000		11,797,055
Furukawa Electric Co. Ltd. (The)	3,356,000		22,234,544
Hitachi Cable Ltd.	1,678,000		10,083,437
Hitachi Ltd.	16,780,000		117,687,302
Mitsubishi Electric Corp.	10,068,000		100,692,746
SANYO Electric Co. Ltd.a,b	6,712,000		10,083,437
Sharp Corp.	5,034,000		93,257,628
Stanley Electric Co. Ltd.	672,400		13,364,578
Sumitomo Electric Industries Ltd.	3,356,000		50,020,644
Toshiba Corp.	15,102,000		95,339,461
Ushio Inc.	167,800		3,236,047
			553,770,226
ELECTRONICS – 4.19%
Advantest Corp.	671,200		31,383,281
Alps Electric Co. Ltd.	839,000		10,033,869
Dainippon Screen Manufacturing Co. Ltd.	815,000		6,672,153
Fanuc Ltd.	839,000		74,917,669
Hirose Electric Co. Ltd.	167,800		21,172,384
IBIDEN Co. Ltd.	671,200		33,592,573
Keyence Corp.	184,292		43,349,099
Kyocera Corp.	839,000		76,333,882
Mabuchi Motor Co. Ltd.	167,800		10,437,490
Minebea Co. Ltd.	1,678,000		11,074,785
Murata Manufacturing Co. Ltd.	1,006,800		72,906,646
NEC Corp.	10,068,000		53,362,906
NGK Insulators Ltd.	1,678,000		31,723,172
Nippon Electric Glass Co. Ltd.	1,259,000		30,761,742
Omron Corp.	1,174,600		32,912,791
Secom Co. Ltd.	1,006,800		50,728,750
Tokyo Seimitsu Co. Ltd.b	167,800		6,316,310
Yaskawa Electric Corp.	1,142,000		12,433,473
Yokogawa Electric Corp.	1,006,800		14,861,739
			624,974,714

Security	Shares	Value
ENGINEERING & CONSTRUCTION – 0.96%
Chiyoda Corp.	609,000	$	13,517,914
JGC Corp.	1,202,000		18,240,250
Kajima Corp.	5,034,000		26,681,453
Nishimatsu Construction Co. Ltd.	1,678,000		5,749,824
Obayashi Corp.	3,356,000		22,574,436
Okumura Corp.b	1,678,000		9,262,033
Shimizu Corp.	3,356,000		20,166,874
Taisei Corp.	5,034,000		19,118,876
Toda Corp.	1,678,000		7,874,145
			143,185,805
ENTERTAINMENT – 0.22%
Oriental Land Co. Ltd.	335,600		19,855,306
Toho Co. Ltd.	672,400		13,392,953
			33,248,259
ENVIRONMENTAL CONTROL – 0.05%
Kurita Water Industries Ltd.	335,600		7,690,037
			7,690,037
FOOD – 1.00%
Ajinomoto Co. Inc.	3,356,000		41,438,393
Katokichi Co. Ltd.	671,200		5,024,724
Kikkoman Corp.	1,678,000		23,778,216
Meiji Dairies Corp.	1,678,000		14,487,859
Meiji Seika Kaisha Ltd.	1,678,000		8,440,630
Nichirei Corp.	1,678,000		10,225,058
Nippon Meat Packers Inc.	1,118,000		13,974,410
Nisshin Seifun Group Inc.	841,000		8,787,256
Nissin Food Products Co. Ltd.	504,200		18,000,304
Yakult Honsha Co. Ltd.	167,800		5,070,043
			149,226,893
FOREST PRODUCTS & PAPER – 0.26%
Nippon Paper Group Inc.	5,034		19,373,795
Oji Paper Co. Ltd.	3,356,000		18,778,985
			38,152,780
GAS – 0.71%
Osaka Gas Co. Ltd.	10,068,000		39,512,343
Tokyo Gas Co. Ltd.	11,746,000		65,924,716
			105,437,059
HAND & MACHINE TOOLS – 0.73%
Fuji Electric Holdings Co. Ltd.	3,356,000		16,456,396
Makita Corp.	335,600		12,321,053

SCHEDULE OF INVESTMENTS 5

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Shares	Value
Nidec Corp.	552,200	$	36,118,918
OSG Corp.b	335,600		5,401,436
SMC Corp.	168,500		22,469,511
THK Co. Ltd.	671,800		16,896,350
			109,663,664
HEALTH CARE - PRODUCTS – 0.68%
Hoya Corp.	2,013,600		69,677,680
Terumo Corp.	839,000		32,077,225
			101,754,905
HOME BUILDERS – 0.72%
Daiwa House Industry Co. Ltd.	2,664,000		47,553,361
Haseko Corp.a	3,356,000		12,887,539
Sekisui Chemical Co. Ltd.	2,654,000		21,884,273
Sekisui House Ltd.	1,678,000		25,066,971
			107,392,144
HOME FURNISHINGS – 3.32%
Matsushita Electric Industrial Co. Ltd.	10,068,015		203,085,250
Pioneer Corp.	839,400		11,498,048
Sony Corp.	5,034,000		262,141,031
Yamaha Corp.	839,000		19,154,281
			495,878,610
HOUSEWARES – 0.12%
TOTO Ltd.	1,678,000		17,730,987
			17,730,987
INSURANCE – 2.36%
Millea Holdings Inc.	3,524,000		131,757,775
Mitsui Sumitomo Insurance Co. Ltd.	6,180,000		77,090,265
Sompo Japan Insurance Inc.	4,345,000		58,234,038
T&D Holdings Inc.	1,174,600		84,958,619
			352,040,697
INTERNET – 1.34%
Access Co. Ltd.a,b	995		4,870,659
E*Trade Securities Co. Ltd.	6,712		9,120,412
eAccess Ltd.	5,034		3,662,327
Index Corp.b	5,034		3,033,528
Matsui Securities Co. Ltd.	503,400		5,128,107
Rakuten Inc.	31,882		16,575,357
SBI Holdings Inc.	46,984		20,064,906

Security	Shares	Value
SoftBank Corp.b	3,685,100	$	93,149,973
Trend Micro Inc.	533,500		15,083,977
Yahoo! Japan Corp.	75,510		28,646,449
			199,335,695
IRON & STEEL – 3.83%
Daido Steel Co. Ltd.	1,678,000		12,009,486
JFE Holdings Inc.	2,685,050		165,202,469
Kobe Steel Ltd.	13,424,000		53,929,392
Nippon Steel Corp.	30,204,000		205,209,267
Nisshin Steel Co. Ltd.	5,042,000		22,085,479
Sumitomo Metal Industries Ltd.	20,136,000		101,627,446
Tokyo Steel Manufacturing Co. Ltd.	671,800		11,209,424
			571,272,963
LEISURE TIME – 0.64%
Namco Bandai Holdings Inc.	1,006,898		14,854,688
Round One Corp.	1,678		4,092,856
Sankyo Co. Ltd.	335,600		15,040,182
Sega Sammy Holdings Inc.	839,000		20,995,358
Shimano Inc.	335,600		10,140,085
Yamaha Motor Co. Ltd.	1,007,000		29,916,361
			95,039,530
MACHINERY – 0.21%
Hitachi Construction Machinery Co. Ltd.	335,600		9,601,924
Japan Steel Works Ltd. (The)	1,678,000		16,116,504
Okuma Corp.	493,000		5,675,419
			31,393,847
MACHINERY - CONSTRUCTION & MINING – 0.68%
Komatsu Ltd.	4,530,600		100,756,476
			100,756,476
MACHINERY – DIVERSIFIED – 1.08%
Amada Co. Ltd.	1,678,000		19,019,741
Ebara Corp.b	1,678,000		7,859,982
Kubota Corp.	5,034,000		50,006,481
Sumitomo Heavy Industries Ltd.	3,356,000		34,385,653
Toyota Industries Corp.	1,006,800		49,963,995
			161,235,852

6 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Shares	Value
MANUFACTURING – 2.63%
ARRK Corp.	336,600	$	4,653,338
FUJIFILM Holdings Corp.	2,517,000		108,127,865
Glory Ltd.	167,800		3,328,101
Ishikawajima-Harima Heavy Industries Co. Ltd.	6,718,000		26,875,402
Kawasaki Heavy Industries Ltd.	6,712,000		27,361,236
Konica Minolta Holdings Inc.a	2,517,000		32,247,170
Mitsubishi Heavy Industries Ltd.	16,780,000		94,744,651
Nikon Corp.	1,678,000		38,520,994
Olympus Corp.	1,678,000		56,223,657
			392,082,414
MEDIA – 0.06%
Fuji Television Network Inc.	1,655		3,757,396
Tokyo Broadcasting System Inc.	167,800		5,551,555
			9,308,951
METAL FABRICATE & HARDWARE – 0.29%
NSK Ltd.	3,356,000		29,230,637
NTN Corp.	1,678,000		13,708,942
			42,939,579
MINING – 0.90%
DOWA HOLDINGS Co. Ltd.	1,678,000		17,320,285
Mitsubishi Materials Corp.	5,034,000		23,070,111
Mitsui Mining & Smelting Co. Ltd.	3,356,000		18,948,930
Nippon Light Metal Co. Ltd.	1,678,000		5,140,853
Sumitomo Metal Mining Co. Ltd.	2,885,000		51,498,291
Sumitomo Titanium Corp.	78,400		9,627,548
Toho Titanium Co. Ltd.b	167,800		9,106,250
			134,712,268
OFFICE & BUSINESS EQUIPMENT – 2.56%
Canon Inc.	5,285,050		288,595,801
Ricoh Co. Ltd.	3,356,000		74,209,562
Seiko Epson Corp.	671,200		19,373,794
			382,179,157
OIL & GAS – 0.95%
INPEX Holdings Inc.a	4,054		33,941,580
Nippon Mining Holdings Inc.	4,195,000		35,086,678
Nippon Oil Corp.	6,712,500		49,004,621
Showa Shell Sekiyu K.K.	503,400		5,816,387

Security	Shares	Value
TonenGeneral Sekiyu K.K.b	1,678,000	$	18,410,769
			142,260,035
PACKAGING & CONTAINERS – 0.11%
Toyo Seikan Kaisha Ltd.	839,000		16,357,261
			16,357,261
PHARMACEUTICALS – 4.97%
Astellas Pharma Inc.	2,684,830		117,603,644
Chugai Pharmaceutical Co. Ltd.	1,342,400		33,252,682
Daiichi Sankyo Co. Ltd.	3,523,869		113,313,423
Eisai Co. Ltd.	1,342,400		68,318,116
Kyowa Hakko Kogyo Co. Ltd.	1,678,000		15,309,263
Mediceo Paltac Holdings Co. Ltd.	671,200		12,519,323
Santen Pharmaceutical Co. Ltd.	167,800		4,588,530
Shionogi & Co. Ltd.	1,678,000		32,431,278
Suzuken Co. Ltd.	335,600		12,009,486
Taisho Pharmaceutical Co. Ltd.	1,098,000		20,387,391
Takeda Pharmaceutical Co. Ltd.	4,195,700		288,247,441
Tanabe Seiyaku Co. Ltd.	1,678,000		22,631,084
			740,611,661
REAL ESTATE – 3.00%
Daito Trust Construction Co. Ltd.	503,400		24,387,189
Leopalace21 Corp.	671,200		21,243,195
Mitsubishi Estate Co. Ltd.	5,333,000		166,086,593
Mitsui Fudosan Co. Ltd.	4,210,000		116,189,391
NTT Urban Development Corp.	4,197		9,493,151
Sumitomo Realty & Development Co. Ltd.	1,678,000		66,845,255
Tokyo Tatemono Co. Ltd.	1,678,000		23,310,866
Tokyu Land Corp.	1,678,000		19,954,441
			447,510,081
REAL ESTATE INVESTMENT TRUSTS – 0.52%
Japan Real Estate
Investment Corp.	1,678		20,535,089
Japan Retail Fund Investment Corp.	1,678		15,578,343
Nippon Building Fund Inc.	2,456		35,652,783
Nomura Real Estate Office Fund Inc.	520		6,144,238
			77,910,453

SCHEDULE OF INVESTMENTS 7

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Shares	Value
RETAIL – 2.97%
AEON Co. Ltd.	2,852,600	$	59,466,785
Aoyama Trading Co. Ltd.	335,600		10,621,598
Autobacs Seven Co. Ltd.	167,800		6,670,363
Citizen Watch Co. Ltd.	1,845,800		17,369,853
Daimaru Inc. (The)	1,678,000		23,240,055
FamilyMart Co. Ltd.	335,600		9,205,385
Fast Retailing Co. Ltd.	277,000		22,630,375
Isetan Co. Ltd.	1,006,800		18,354,121
Lawson Inc.	335,600		12,859,214
Marui Co. Ltd.	1,510,200		18,965,925
Mitsukoshi Ltd.	1,678,000		7,775,010
Nitori Co. Ltd.	167,800		7,874,144
Ryohin Keikaku Co. Ltd.	91,300		6,241,550
Seven & I Holdings Co. Ltd.	4,027,280		129,161,193
Shimachu Co. Ltd.	335,600		10,055,113
Shimamura Co. Ltd.	47,700		5,402,659
Takashimaya Co. Ltd.	1,678,000		21,979,626
UNY Co. Ltd.	1,245,000		17,348,145
USS Co. Ltd.	117,460		7,385,551
Yamada Denki Co. Ltd.	335,600		29,938,743
			442,545,408
SEMICONDUCTORS – 0.98%
Elpida Memory Inc.a,b	335,600		15,011,858
NEC Electronics Corp.a,b	167,800		4,531,882
Rohm Co. Ltd.	503,800		46,219,403
Sanken Electric Co. Ltd.	332,000		3,213,943
Shinko Electric Industries Co. Ltd.	167,800		3,823,775
Sumco Corp.	335,600		12,434,350
Tokyo Electron Ltd.	839,052		60,900,934
			146,136,145
SHIPBUILDING – 0.09%
Mitsui Engineering &
Shipbuilding Co. Ltd.	3,356,000		13,425,700
			13,425,700
SOFTWARE – 0.17%
Fuji Soft ABC Inc.	167,800		4,900,097
Konami Corp.	504,200		13,404,482
Nomura Research Institute Ltd.	42,000		6,377,010
			24,681,589

Security	Shares	Value
STORAGE & WAREHOUSING – 0.04%
Mitsubishi Logistics Corp.	319,000	$	5,532,726
			5,532,726
TELECOMMUNICATIONS – 2.92%
Hikari Tsushin Inc.	167,800		7,590,902
KDDI Corp.	11,746		91,898,063
Nippon Telegraph & Telephone Corp.	25,170		133,407,267
NTT Data Corp.	6,712		33,989,112
NTT DoCoMo Inc.	88,934		162,878,660
Oki Electric Industry Co. Ltd.b	3,356,000		5,919,770
			435,683,774
TEXTILES – 1.00%
Kuraray Co. Ltd.	1,678,000		18,325,796
Mitsubishi Rayon Co. Ltd.	3,356,000		22,121,247
Nisshinbo Industries Inc.	1,678,000		22,092,923
Teijin Ltd.	5,034,000		27,361,235
Toray Industries Inc.	6,712,000		48,434,485
Toyobo Co. Ltd.	3,356,000		10,734,894
			149,070,580
TOYS, GAMES & HOBBIES – 0.90%
Nintendo Co. Ltd.	503,400		133,832,129
			133,832,129
TRANSPORTATION – 4.34%
Central Japan Railway Co.	8,390		100,551,125
East Japan Railway Co.	16,780		128,592,142
Hankyu Hanshin Holdings Inc.	5,039,800		33,730,526
Kawasaki Kisen Kaisha Ltd.	3,356,000		33,365,979
Keihin Electric Express Railway Co. Ltd.b	1,682,000		13,784,209
Keio Corp.	3,356,000		23,622,433
Kintetsu Corp.	8,394,000		27,629,320
Mitsui O.S.K. Lines Ltd.	5,034,000		56,846,791
Nippon Express Co. Ltd.	5,034,000		32,119,711
Nippon Yusen Kabushiki Kaisha	5,034,000		39,724,775
Odakyu Electric Railway Co. Ltd.	1,678,000		12,561,810
Seino Holdings Co. Ltd.	1,243,000		12,484,028
Tobu Railway Co. Ltd.	5,034,000		26,044,157
Tokyu Corp.	5,034,000		40,574,503
West Japan Railway Co.	8,390		39,653,965

8 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
Yamato Holdings Co. Ltd.		1,678,000	$	26,837,237
				648,122,711
VENTURE CAPITAL – 0.07%
JAFCO Co. Ltd.		167,800		10,310,031
				10,310,031
TOTAL COMMON STOCKS (Cost: $11,301,973,460)				14,894,145,655
SHORT-TERM INVESTMENTS – 0.95%
CERTIFICATES OF DEPOSITc – 0.04%
Credit Suisse First Boston NY
5.28% - 5.43%, 04/23/07 - 08/21/07	$	1,450,374		1,450,374
Deutsche Bank AG
5.35%, 08/08/07		2,417,289		2,417,289
Washington Mutual Bank
5.33%, 03/19/07		2,417,289		2,417,289
				6,284,952
COMMERCIAL PAPERc – 0.20%
Amstel Funding Corp.
5.22%, 04/16/07 - 04/17/07d		919,643		913,426
BNP Paribas Finance Inc.
5.12%, 06/06/07		338,421		333,756
Bryant Park Funding LLC
5.27%, 03/06/07d		238,287		238,112
Cantabric Finance LLC
5.25%, 03/06/07d		773,533		772,969
Cheyne Finance LLC
5.24%, 04/12/07 - 04/23/07d		725,187		719,979
Concord Minutemen Capital Co. LLC
5.29%, 03/19/07d		492,808		491,504
Crown Point Capital Co. LLC
5.20%, 07/18/07d		1,116,933		1,094,507
Edison Asset Securitization LLC
5.21%, 04/11/07d		400,719		398,341
Five Finance Inc.
5.22%, 04/20/07d		444,781		441,557

Security	Principal		Value
General Electric Capital Corp.
5.12% - 5.20%, 06/04/07 - 07/17/07d	$	1,692,103	$	1,663,040
Giro Funding Corp.
5.25%, 03/05/07 - 03/12/07d		1,585,742		1,583,830
Grampian Funding LLC
5.14% - 5.23%, 04/23/07 - 06/06/07d		1,885,486		1,862,068
Harrier Finance Funding LLC
5.12%, 06/06/07d		966,916		953,590
Irish Permanent Treasury PLC
5.18%, 07/10/07		483,458		474,345
KKR Pacific Funding Trust
5.29%, 03/13/07d		1,208,645		1,206,513
Lexington Parker Capital Co. LLC
5.18% - 5.20%, 05/17/07 - 07/25/07d		1,221,679		1,200,884
Liberty Street Funding Corp.
5.27%, 03/06/07d		116,030		115,945
Lockhart Funding LLC
5.25%, 05/04/07 - 05/14/07d		2,181,323		2,160,603
Nationwide Building Society
5.21%, 04/13/07d		918,570		912,854
Nestle Capital Corp.
5.19%, 08/09/07		580,149		566,684
Sedna Finance Inc.
5.22%, 04/17/07d		551,142		547,386
Simba Funding Corp.
5.20%, 07/23/07d		966,916		946,804
Societe Generale
5.18%, 05/16/07		2,417,289		2,390,855
Thames Asset Global Securitization No. 1 Inc.
5.25% - 5.28%, 03/02/07 - 03/12/07d		3,683,524		3,679,961
Thornburg Mortgage Capital Resources LLC
5.28%, 03/12/07d		707,782		706,640

SCHEDULE OF INVESTMENTS 9

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Shares or Principal		Value
Three Pillars Funding Corp.
5.26%, 03/01/07 - 03/12/07d	$	507,611	$	507,212
Tulip Funding Corp.
5.29%, 03/15/07d		1,856,101		1,852,282
Westpac Banking Corp.
5.20%, 07/12/07d		870,224		853,506
Zela Finance Inc.
5.20%, 07/16/07d		580,149		568,669
				30,157,822
MEDIUM-TERM NOTESc – 0.02%
Bank of America N.A.
5.28%, 04/20/07		241,729		241,729
Cullinan Finance Corp.
5.71%, 06/28/07d		725,187		725,187
K2 USA LLC
5.39%, 06/04/07d		725,187		725,187
Sigma Finance Inc.
5.13% - 5.51%, 03/30/07 - 06/18/07d		1,131,292		1,131,292
				2,823,395
MONEY MARKET FUNDS – 0.06%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares
5.30%e,f		8,015,452		8,015,452
				8,015,452
REPURCHASE AGREEMENTSc – 0.12%
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $1,934,120 (collateralized by non-U.S. Government debt securities, value $1,993,419, 5.50% to 7.70%, 9/15/09 to 5/1/19).	$	1,933,832		1,933,832

Security	Principal		Value
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $1,450,590 (collateralized by non-U.S. Government debt securities, value $1,596,671, 0.00% to 9.20%, 10/17/18 to 11/25/52).	$	1,450,374	$	1,450,374
BNP Securities Corp. 5.36%, due 3/1/07, maturity value $96,706 (collateralized by non-U.S. Government debt securities, value $101,606, 5.43%, 3/15/08).		96,692		96,692
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $1,450,590 (collateralized by non-U.S. Government debt securities, value $1,562,820, 0.00% to 10.00%, 5/27/33 to 8/25/46).		1,450,374		1,450,374
Citigroup Global Markets Holdings Inc. 5.36%, due 3/1/07, maturity value $1,934,120 (collateralized by non-U.S. Government debt securities, value $2,032,126, 4.91% to 6.31%, 10/25/33 to 8/25/46).		1,933,832		1,933,832
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $1,063,767 (collateralized by non-U.S. Government debt securities, value $1,146,176, 0.00% to 10.00%, 5/27/33 to 8/25/46).		1,063,607		1,063,607

10 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Principal		Value
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $580,237 (collateralized by non-U.S. Government debt securities, value $646,310, 0.00% to 10.00%, 5/27/33 to 2/28/37).	$	580,149	$	580,149
Goldman Sachs Group Inc. (The) 5.36%, due 3/1/07, maturity value $358,846 (collateralized by non-U.S. Government debt securities, value $377,031, 4.52% to 6.89%, 1/15/09 to 10/25/36).		358,793		358,793
Greenwich Capital Markets Inc. 5.46%, due 3/1/07, maturity value $4,061,662 (collateralized by non-U.S. Government debt securities, value $4,477,699, 0.00% to 10.00%, 4/1/07 to 12/31/49).		4,061,046		4,061,046
HSBC Securities Inc. 5.36%, due 3/1/07, maturity value $483,530 (collateralized by non-U.S. Government debt securities, value $508,064, 3.72% to 5.99%, 12/15/36 to 6/1/46).		483,458		483,458
JP Morgan Securities Inc. 5.41%, due 3/1/07, maturity value $241,765 (collateralized by non-U.S. Government debt securities, value $254,046, 6.25% to 9.56%, 5/15/11 to 2/1/30).		241,729		241,729

Security	Principal		Value
Merrill Lynch & Co. Inc. 5.36%, due 3/1/07, maturity value $967,060 (collateralized by non-U.S. Government debt securities, value $1,016,068, 1.63% to 14.50%, 5/1/07 to 9/18/37).	$	966,916	$	966,916
Morgan Stanley 5.36%, due 3/1/07, maturity value $967,060 (collateralized by non-U.S. Government debt securities, value $1,016,287, 0.00% to 10.00%, 3/1/07 to 2/28/37).		966,916		966,916
Morgan Stanley 5.51%, due 2/4/08, maturity value $711,441 (collateralized by non-U.S. Government debt securities, value $802,676, 0.00% to 10.00%, 3/1/07 to 2/28/37).g		676,841		676,841
Wachovia Capital 5.38%, due 3/1/07, maturity value $2,127,533 (collateralized by non-U.S. Government debt securities, value $2,235,339, 0.00% to 8.32%, 2/15/08 to 3/15/49).		2,127,215		2,127,215
				18,391,774
TIME DEPOSITSc – 0.04%
Bank of Nova Scotia
5.30%, 03/02/07		405,486		405,486
Chase Bank USA N.A.
5.38%, 03/01/07		1,450,374		1,450,374
Citibank N.A.
5.47%, 03/01/07		1,450,374		1,450,374

SCHEDULE OF INVESTMENTS 11

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Principal		Value
Deutsche Bank AG
5.38%, 03/01/07	$	2,271,005	$	2,271,005
				5,577,239
VARIABLE & FLOATING RATE NOTESc – 0.47%
Allstate Life Global Funding II
5.30% - 5.40%, 02/15/08 - 03/07/08d		2,475,304		2,475,550
American Express Centurion Bank
5.41%, 07/19/07		1,063,607		1,064,086
American Express Credit Corp.
5.42%, 03/05/08		290,075		290,216
AmeriCredit Automobile Receivables Trust
5.35%, 03/06/07		44,067		44,067
Arkle Master Issuer PLC Series 2006-1A Class 1A
5.30%, 11/19/07d		725,187		725,187
ASIF Global Financing
5.40%, 05/03/07d		96,692		96,700
Australia & New Zealand Banking Group Ltd.
5.32%, 02/22/08d		628,495		628,495
Bank of Ireland
5.30% - 5.32%, 08/14/07 - 02/20/08d		1,402,028		1,402,068
Beta Finance Inc.
5.29% - 5.41%, 04/25/07 - 07/25/07d		2,465,635		2,465,680
BMW US Capital LLC
5.32%, 01/15/08d		966,916		966,916
BNP Paribas
5.33%, 11/19/07d		1,788,794		1,788,794
Brigantine High Grade Funding Ltd.
5.40%, 09/05/07d		928,239		928,152
Carlyle Loan Investment Ltd.
5.37%, 04/13/07 - 07/15/07d		705,849		705,849
CC USA Inc.
5.36%, 07/30/07d		483,458		483,485

Security	Principal		Value
Commodore CDO Ltd.
5.44%, 12/12/07d	$	241,729	$	241,729
Credit Agricole SA
5.33%, 11/23/07		966,916		966,916
Credit Suisse First Boston NY
5.36%, 04/24/07		483,458		483,461
Cullinan Finance Corp.
5.36%, 04/25/07d		241,729		241,729
DaimlerChrysler Auto Trust Series 2006-C Class A1
5.33%, 10/08/07d		74,170		74,170
DEPFA Bank PLC
5.40%, 12/14/07d		966,916		966,916
Dorada Finance Inc.
5.33% - 5.41%, 06/27/07 - 07/17/07d		1,111,953		1,111,971
Eli Lilly Services Inc.
5.31%, 03/01/07d		645,416		645,416
Fifth Third Bancorp
5.32%, 02/22/08d		1,933,832		1,933,832
Five Finance Inc.
5.31% - 5.37%, 06/29/07 - 07/13/07d		628,495		628,464
General Electric Capital Corp.
5.28% - 5.45%, 07/09/07 - 02/22/08d		1,015,262		1,015,361
Granite Master Issuer PLC
5.29%, 08/20/07d		3,384,205		3,384,205
Harrier Finance Funding LLC
5.29% - 5.36%, 07/25/07 - 08/15/07d		1,256,991		1,256,998
Hartford Life Global Funding Trust
5.36% - 5.40%, 07/13/07 - 03/14/08		1,450,374		1,450,467
HBOS Treasury Services PLC
5.46%, 01/24/08d		966,916		966,916
Holmes Financing PLC
5.29%, 07/16/07d		1,692,103		1,692,103
JP Morgan Securities Inc.
5.40%, 11/16/07		1,933,832		1,933,832

12 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Principal		Value
JPMorgan Chase & Co.
5.29% - 5.45%, 07/27/07 - 02/29/08g	$	2,659,018	$	2,659,019
K2 USA LLC
5.20% - 5.33%, 04/02/07 - 06/28/07d		725,187		725,175
Kestrel Funding LLC
5.30%, 07/11/07d		386,766		386,751
Kommunalkredit Austria AG
5.32%, 02/08/08d		580,149		580,149
Leafs LLC
5.32%, 01/22/08d		936,816		936,816
Links Finance LLC
5.28% - 5.35%, 05/10/07 - 05/16/07d		1,063,607		1,063,586
Lothian Mortgages Master Issuer PLC
5.29%, 04/24/07d		340,888		340,888
Marshall & Ilsley Bank
5.32%, 02/15/08		531,804		531,804
Master Funding LLC
5.35%, 04/25/07 - 05/25/07d		1,749,856		1,749,856
Merrill Lynch & Co. Inc.
5.46%, 05/30/07g		1,063,607		1,063,607
Metropolitan Life Global Funding I
5.33%, 03/06/08d		1,450,374		1,450,374
Metropolitan Life Insurance Funding Agreement
5.44%, 08/01/07d,g		96,692		96,692
Mound Financing PLC
5.29%, 05/08/07d		908,901		908,901
Natexis Banques Populaires
5.33% - 5.35%, 06/20/07 - 02/08/08d		1,547,065		1,547,047
National City Bank of Indiana
5.34%, 05/21/07		483,458		483,467
Nationwide Building Society
5.37% - 5.48%, 07/20/07 - 01/28/08d		3,190,822		3,191,181

Security	Principal		Value
Newcastle Ltd.
5.34%, 04/24/07 - 01/24/08d	$	969,333	$	969,205
Northern Rock PLC
5.38%, 02/01/08d		1,160,299		1,160,321
Northlake CDO I
5.42%, 09/06/07d		290,075		290,075
Pricoa Global Funding I
5.31%, 02/27/08d		1,305,336		1,305,336
Sedna Finance Inc.
5.32% - 5.34%, 05/25/07 - 08/21/07d		1,402,028		1,402,018
Skandinaviska Enskilda Banken
5.32%, 02/15/08d		966,916		966,916
Strips III LLC
5.37%, 07/24/07d		196,751		196,751
SunTrust Bank
5.29%, 05/01/07		966,916		966,924
Tango Finance Corp.
5.27% - 5.34%, 04/25/07 - 07/16/07d		2,359,275		2,359,196
Union Hamilton Special Funding LLC
5.36% - 5.37%, 03/28/07 - 06/21/07d		1,595,411		1,595,411
Wachovia Asset Securitization Inc.
5.31%, 03/25/07d		1,091,473		1,091,473
Wachovia Bank N.A.
5.36%, 05/22/07		1,933,832		1,933,832
Wal-Mart Stores Inc.
5.50%, 07/16/07d		725,187		725,370
Wells Fargo & Co.
5.33%, 11/15/07d		483,458		483,477
WhistleJacket Capital Ltd.
5.28% - 5.35%, 04/18/07 - 06/13/07d		725,187		725,190
White Pine Finance LLC
5.28% - 5.32%, 05/22/07 - 08/20/07d		2,900,747		2,900,487

SCHEDULE OF INVESTMENTS 13

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2007

Security	Principal	Value
Wind Master Trust
5.31%, 07/25/07d	$386,766	$	386,766
			70,233,792
TOTAL SHORT-TERM INVESTMENTS (Cost: $141,484,426)			141,484,426
TOTAL INVESTMENTS IN SECURITIES – 100.80% (Cost: $11,443,457,886)			15,035,630,081
Other Assets, Less Liabilities – (0.80)%			(119,634,157	)
NET ASSETS – 100.00%		$	14,915,995,924

^a Non-income earning security.

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

^c All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5.

^d This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g The investment adviser has determined that this security or a portion of these securities is “illiquid,” in that it cannot be sold within seven (7) days for approximately the value at which it is carried in the Fund.

See notes to financial statements.

14 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2007

	iShares MSCI Japan Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	11,435,442,434
Affiliated issuers (Note 2)		8,015,452
Total cost of investments	$	11,443,457,886
Investments in securities, at value (including securities on loana) (Note 1):
Unaffiliated issuers	$	15,027,614,629
Affiliated issuers (Note 2)		8,015,452
Total value of investments		15,035,630,081
Foreign currency, at valueb		12,428,015
Receivables:
Investment securities sold		11,532,326
Dividends and interest		8,424,200
Capital shares sold		3,448,881
Total Assets		15,071,463,503
LIABILITIES
Payables:
Investment securities purchased		16,260,831
Collateral for securities on loan (Note 5)		133,468,974
Investment advisory fees (Note 2)		5,737,774
Total Liabilities		155,467,579
NET ASSETS	$	14,915,995,924
Net assets consist of:
Paid-in capital	$	11,401,193,554
Distributions in excess of net investment income		(33,330,905	)
Accumulated net realized loss		(44,169,848	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		3,592,303,123
NET ASSETS	$	14,915,995,924
Shares outstanding		1,006,800,000
Net asset value per share	$	14.82

^a Securities on loan with market value of $126,654,327. See Note 5.

^b Cost of foreign currency: $12,368,802.

See notes to financial statements.

FINANCIAL STATEMENTS 15

Statement of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2007

	iShares MSCI Japan Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	68,574,053
Interest from affiliated issuers (Note 2)		148,979
Securities lending income		1,172,987
Total investment income		69,896,019
EXPENSES
Investment advisory fees (Note 2)		35,600,110
Total expenses		35,600,110
Net investment income		34,295,909
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(11,253,251	)
In-kind redemptions		194,619,021
Foreign currency transactions		29,467
Net realized gain		183,395,237
Net change in unrealized appreciation (depreciation) on:
Investments		865,881,198
Translation of assets and liabilities in foreign currencies		367,242
Net change in unrealized appreciation (depreciation)		866,248,440
Net realized and unrealized gain		1,049,643,677
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,083,939,586

^a Net of foreign withholding tax of $5,127,454.

See notes to financial statements.

16 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Japan Index Fund
	Six months ended February 28, 2007 (Unaudited)			Year ended August 31, 2006
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	34,295,909		$	60,448,936
Net realized gain		183,395,237			448,842,325
Net change in unrealized appreciation (depreciation)		866,248,440			1,877,307,601
Net increase in net assets resulting from operations		1,083,939,586			2,386,598,862
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(97,091,876	)		(55,636,178	)
Total distributions to shareholders		(97,091,876	)		(55,636,178	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		778,036,389			5,381,707,859
Cost of shares redeemed		(573,478,584	)		(1,236,187,530	)
Net increase in net assets from capital share transactions		204,557,805			4,145,520,329
INCREASE IN NET ASSETS		1,191,405,515			6,476,483,013
NET ASSETS
Beginning of period		13,724,590,409			7,248,107,396
End of period	$	14,915,995,924		$	13,724,590,409
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(33,330,905	)	$	29,465,062
SHARES ISSUED AND REDEEMED
Shares sold		54,600,000			426,600,000
Shares redeemed		(42,000,000	)		(91,800,000	)
Net increase in shares outstanding		12,600,000			334,800,000

See notes to financial statements.

FINANCIAL STATEMENTS 17

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Japan Index Fund
	Six months ended Feb. 28, 2007 (Unaudited)			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003			Year ended Aug. 31, 2002
Net asset value, beginning of period	$	13.80		$	10.99		$	9.89		$	8.29		$	7.77		$	9.07
Income from investment operations:
Net investment income (loss)a		0.03			0.06			0.06			0.03			0.00	b		(0.01	)
Net realized and unrealized gain (loss)c		1.09			2.81			1.08			1.57			0.52			(1.29	)
Total from investment operations		1.12			2.87			1.14			1.60			0.52			(1.30	)
Less distributions from:
Net investment income		(0.10	)		(0.06	)		(0.04	)		(0.00	)b		–			–
Total distributions		(0.10	)		(0.06	)		(0.04	)		(0.00	)b		–			–
Net asset value, end of period	$	14.82		$	13.80		$	10.99		$	9.89		$	8.29		$	7.77
Total return		8.15	%d		26.10	%		11.58	%		19.32	%		6.69	%		(14.33	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	14,915,996		$	13,724,590		$	7,248,107		$	5,863,332		$	1,726,855		$	666,376
Ratio of expenses to average net assetse		0.52	%		0.54	%		0.57	%		0.64	%f		0.84	%		0.84	%
Ratio of net investment income (loss) to average net assetse		0.50	%		0.48	%		0.59	%		0.28	%		0.03	%		(0.12	)%
Portfolio turnover rateg		1	%		8	%		6	%		5	%		2	%		2	%

^a Based on average shares outstanding throughout each period.

^b Rounds to less than $0.01.

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

^d Not annualized.

^e Annualized for periods of less than one year.

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

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

See notes to financial statements.

18 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

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, 2007, 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 uses a “passive” or index approach to achieve the Fund’s investment objective. The Fund is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold securities of fewer companies than diversified funds and may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.

The Fund invests in the securities of 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; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets and the risk of war.

Pursuant to the 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.

1. SIGNIFICANT ACCOUNTING POLICIES

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

SECURITY VALUATION

The securities and other assets of the Fund are generally valued using market valuations. A market valuation generally means a valuation (i) obtained from an exchange, a pricing service or a major market maker (or dealer), (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker (or dealer) or (iii) based on amortized cost. In the case of shares of funds that are not traded on an exchange, a market valuation means such fund’s published net asset value per share. The investment adviser may use various pricing services or discontinue the use of any pricing service. A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. In the event that current market valuations are not readily available or such valuations do not reflect current market values, the affected investments will be valued using fair value pricing pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”).

NOTES TO FINANCIAL STATEMENTS 19

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source, and interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Fund are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Any use of a rate different from the rates used by MSCI may adversely affect the Fund’s ability to track its underlying index. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

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

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

The tax character of current year distributions will be determined at the end of the current fiscal year.

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, 2007.

As of August 31, 2006, 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, $5,594,562, $8,733,802 and $68,122,871 expiring in 2009, 2010, 2011, 2012, 2013 and 2014, respectively. Such losses may be applied against any net realized taxable gains in each succeeding year or until their respective expiration dates, whichever occurs first.

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

The Fund reclassifies at the end of its tax year certain amounts to paid-in-capital from accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss), respectively, as a result of permanent book and tax

20 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

differences primarily attributed to net investment loss, return of capital, passive foreign investment companies, realized foreign currency gains and losses and gains and losses on in-kind redemptions. These reclassifications have no effect on net assets or net asset value per share.

As of February 28, 2007, the cost of investments for federal income tax purposes was $11,521,442,973. Net unrealized appreciation was $3,514,187,108, of which $3,773,549,916 represented gross unrealized appreciation on securities and $259,362,808 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.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

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

For its investment advisory services to the Fund, BGFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of 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 Average Daily Net Assets
0.59%	First $7 billion
0.54	Over $7 billion, up to and including $11 billion
0.49	Over $11 billion, up to and including $24 billion
0.44	Over $24 billion

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 and expenses are Covered Expenses as defined above.

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

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SEC”), the Fund is permitted to lend portfolio securities to Barclays Capital Inc. (“BarCap”). Pursuant to the same exemptive order, Barclays Global Investors, N.A. (“BGI”) serves as securities lending agent for the Company. Bar Cap and BGI are affiliates of BGFA, the Fund’s investment adviser. As securities lending agent,

NOTES TO FINANCIAL STATEMENTS 21

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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, 2007, BGI earned securities lending agent fees of $1,172,987.

Cross trades for the six months ended February 28, 2007 were executed by the Fund pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

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

As of February 28, 2007, certain directors and officers of the Company are also officers of BGI and/or BGFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2007, aggregated $137,184,094 and $209,831,330, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 28, 2007, aggregated $745,135,317 and $541,965,252, respectively.

4. CAPITAL SHARE TRANSACTIONS

The Company is authorized to issue 10.9 billion shares of $.001 par value capital stock. As of February 28, 2007, 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 contribution of a designated portfolio of equity securities constituting a portfolio sampling representation of the securities involved in the MSCI Japan Index and an amount of cash. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to Investors Bank, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

22 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

5. LOANS OF PORTFOLIO SECURITIES

The Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Fund of securities lending are that the borrower may not provide additional collateral when required or may not return the securities when due.

As of February 28, 2007, the Fund had loaned securities which were collateralized by cash. Pursuant to an exemptive order issued by the SEC, the cash collateral received was invested in a joint account with other investment funds managed by BGFA. The joint account invests in securities with remaining maturities of 397 days or less, repurchase agreements and money market mutual funds, including money market funds managed by BGFA. Repurchase agreements held in the joint account are fully collateralized by U.S. Government securities or non-U.S. Government debt securities. The market value of the securities on loan as of February 28, 2007 and the value of the related collateral are disclosed in the Statement of Assets and Liabilities. Securities lending income, as disclosed in the Fund’s Statement of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to BGI as securities lending agent.

6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

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

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

NOTES TO FINANCIAL STATEMENTS 23

Notes:

24 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 25

The iShares^® Family of Funds

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

iShares S&P Domestic Index Funds

iShares S&P 1500 (ISI)

iShares S&P 100 (OEF)

iShares S&P 500 (IVV)

iShares S&P 500 Growth (IVW)

iShares S&P 500 Value (IVE)

iShares S&P MidCap 400 (IJH)

iShares S&P MidCap 400 Growth (IJK)

iShares S&P MidCap 400 Value (IJJ)

iShares S&P SmallCap 600 (IJR)

iShares S&P SmallCap 600 Growth (IJT)

iShares S&P SmallCap 600 Value (IJS)

iShares Domestic Sector Index Funds

iShares Cohen & Steers Realty Majors (ICF)

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

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

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

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

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

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

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

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

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

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

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

iShares Dow Jones Transportation Average (IYT)

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

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

iShares 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 Nasdaq Biotechnology (IBB)

iShares Domestic Subsector Index Funds

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

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

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

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

iShares Dow Jones U.S. Insurance (IAK)

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

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

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

iShares Dow Jones U.S. Pharmaceuticals (IHE)

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

iShares Global Index Funds

iShares S&P Global 100 (IOO)

iShares S&P Global Consumer Discretionary Sector (RXI)

iShares S&P Global Consumer Staples Sector (KXI)

iShares S&P Global Energy Sector (IXC)

iShares S&P Global Financials Sector (IXG)

iShares S&P Global Healthcare Sector (IXJ)

iShares S&P Global Industrials Sector (EXI)

iShares S&P Global Materials Sector (MXI)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares S&P Global Utilities Sector (JXI)

iShares Russell Index Funds

iShares Russell 3000 (IWV)

iShares Russell 3000 Growth (IWZ)

iShares Russell 3000 Value (IWW)

iShares Russell 1000 (IWB)

iShares Russell 1000 Growth (IWF)

iShares Russell 1000 Value (IWD)

iShares Russell Midcap (IWR)

iShares Russell Midcap Growth (IWP)

iShares Russell Midcap Value (IWS)

iShares Russell 2000 (IWM)

iShares Russell 2000 Growth (IWO)

iShares Russell 2000 Value (IWN)

iShares Russell Microcap™ (IWC)

iShares International Country Index Funds

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria (EWO)

iShares MSCI Belgium (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Malaysia (EWM)

iShares MSCI Mexico (EWW)

iShares MSCI Netherlands (EWN)

iShares MSCI Singapore (EWS)

iShares MSCI South Africa (EZA)

iShares MSCI South Korea (EWY)

iShares MSCI Spain (EWP)

iShares MSCI Sweden (EWD)

iShares MSCI Switzerland (EWL)

iShares MSCI Taiwan (EWT)

iShares MSCI United Kingdom (EWU)

iShares S&P / TOPIX 150 (ITF)

iShares Bond Funds

iShares Lehman Aggregate (AGG)

iShares Lehman Short Treasury (SHV)

iShares Lehman 1-3 Year Treasury (SHY)

iShares Lehman 3-7 Year Treasury (IEI)

iShares Lehman 7-10 Year Treasury (IEF)

iShares Lehman 10-20 Year Treasury (TLH)

iShares Lehman 20+ Year Treasury (TLT)

iShares Lehman TIPS (TIP)

iShares Lehman Credit (CFT)

iShares Lehman 1-3 Year Credit (CSJ)

iShares Lehman Intermediate Credit (CIU)

iShares iBoxx $ Investment Grade Corporate (LQD)

iShares Lehman Government / Credit (GBF)

iShares Lehman Intermediate Government / Credit (GVI)

iShares Lehman MBS Fixed-Rate (MBB)

iShares iBoxx $ High Yield Corporate (HYG)

iShares Specialty Index Funds

iShares KLD Select Social^SM (KLD)

iShares KLD 400 Social (DSI)

iShares Dow Jones Select Dividend (DVY)

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

iShares International Index Funds

iShares MSCI EAFE (EFA)

iShares MSCI EAFE Growth (EFG)

iShares MSCI EAFE Value (EFV)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI Pacific ex-Japan (EPP)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

iShares NYSE Index Funds

iShares NYSE Composite (NYC)

iShares NYSE 100 (NY)

iShares® is a registered trademark of Barclays Global Investors, N.A. The iShares Funds are not sponsored, endorsed or issued by 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 (“FXI”), iBoxx, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The Nasdaq Stock Market, Inc., New York Stock Exchange LLC, Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. iBoxx is a registered trademark of International Index Company Limited. “Goldman Sachs®” is a trademark of Goldman, Sachs & Co. FXI does not make any warranty regarding the FTSE / Xinhua Index. All rights in the FTSE / Xinhua Index vest in FXI. “FTSE” is a trade and service mark of London Stock Exchange and The Financial Times; “Xinhua” is a trade and service mark of Xinhua Financial Network Limited.

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 2007 Semi-Annual Report.

4322-iS-0407

26 2007 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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 report 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.

The Nominating Committee of Registrant’s Board of Directors (the “Nominating Committee”) is charged with identifying nominees to serve as Board members and recommending such nominees to the Board. The Board believes that shareholders as a group are best served by the efficient allocation of Registrant and Board resources. As such, the Board is not required to consider any person nominated by any shareholder of the Registrant (acting solely in the capacity as shareholder and not in any other capacity) to serve as an independent Director, although the Nominating Committee may consider any such person if the Nominating Committee of the Board deems it appropriate after considering all circumstances the Nominating Committee’s members deem relevant.

Item 11. Controls and Procedures.

(a) The Principal Executive Officer 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 Section 4(a) of the attached certification.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a) (1) 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 and Principal Executive Officer
	Date: April 20, 2007

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 and Principal Executive Officer
	Date: April 20, 2007
By:	/s/ Michael A. Latham
	Michael A. Latham, Principal Financial Officer
	Date: April 20, 2007