Form N-CSRS for iShares Inc.

N-CSRS 1 dncsrs.htm FORM N-CSRS FOR ISHARES INC. Form N-CSRS for iShares Inc.

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: State Street Bank and Trust Company

200 Clarendon Street, Boston, MA 02116

(Address of principal executive offices) (Zip code)

CT Corporation System

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, 2008

Date of reporting period: February 29, 2008

Item 1.

Reports to Stockholders.

LOGO

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		16
iShares MSCI EMU Index Fund		18
iShares MSCI France Index Fund		23
iShares MSCI Germany Index Fund		26
iShares MSCI Italy Index Fund		29
iShares MSCI Netherlands Index Fund		31
iShares MSCI Spain Index Fund		33
iShares MSCI Sweden Index Fund		35
iShares MSCI Switzerland Index Fund		37
iShares MSCI United Kingdom Index Fund		39
Financial Statements		43
Financial Highlights		55
Notes to Financial Statements		66
Shareholder Meeting Results		73
iShares Family of Funds		77

Fund Performance Overview

iSHARES^® MSCI AUSTRIA INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Austria Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Austrian market, as measured by the MSCI Austria Investable Market Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 8.15%, while the Index declined 9.31%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(4.38)%	(4.23)%	(6.95)%	32.17%	32.42%	32.39%	13.40%	13.28%	13.39%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(4.38)%	(4.23)%	(6.95)%	303.34%	307.16%	306.67%	251.78%	247.83%	251.38%

Effective February 1, 2008, the Fund changed its underlying index from the MSCI Austria Index^SM to the MSCI Austria Investable Market Index. Performance shown above reflects the MSCI Austria Index through January 31, 2008 and the MSCI Austria Investable Market Index thereafter.

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

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 table(s) 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 2/29/08
Sector	Percentage of Net Assets
Financial	39.22	%

Industrial	16.54

Energy	14.84

Basic Materials	10.05

Communications	9.93

Utilities	6.31

Consumer Cyclical	1.25

Consumer Non-Cyclical	1.07

Short-Term and Other Net Assets	0.79


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Erste Bank der Oesterreichischen Sparkassen AG	14.77	%

OMV AG	14.25

Telekom Austria AG	9.93

voestalpine AG	7.99

Oesterreichische Elektrizitaetswirtschafts AG Class A	5.13

Raiffeisen International Bank Holding AG	4.78

Wienerberger AG	4.78

Meinl European Land Ltd.	4.69

CA Immobilien Anlagen AG	3.98

Vienna Insurance Group	3.78


TOTAL	74.08	%


FUND PERFORMANCE OVERVIEWS		1

Fund Performance Overview

iSHARES^® MSCI BELGIUM INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Belgium Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Belgian market, as measured by the MSCI Belgium Investable Market Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 9.10%, while the Index declined 10.95%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(7.78)%	(7.76)%	(9.78)%	26.31%	25.97%	25.47%	8.15%	8.06%	7.72%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(7.78)%	(7.76)%	(9.78)%	221.53%	217.23%	211.02%	118.98%	117.04%	110.32%

Effective December 1, 2007, the Fund changed its underlying index from the MSCI Belgium Index^SM to the MSCI Belgium Investable Market Index. Performance shown reflects the MSCI Belgium Index through November 30, 2007 and the MSCI Belgium Investable Market Index thereafter.


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	47.56	%

Consumer Non-Cyclical	20.35

Diversified	10.84

Basic Materials	8.42

Communications	7.25

Industrial	4.40

Consumer Cyclical	0.75

Technology	0.10

Short-Term and Other Net Assets	0.33


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Fortis	23.01	%
KBC Group NV	12.89
InBev	9.19
Groupe Bruxelles Lambert SA	5.22
Belgacom SA	4.84
Solvay SA	4.57
Delhaize Group	4.37
Dexia SA	4.32
Umicore	3.82
Cofinimmo SA	3.63

TOTAL	75.86	%


2		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI EMU INDEX FUND

Performance as of February 29, 2008

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 EMU markets, as measured by the MSCI EMU Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 3.74%, while the Index declined 3.56%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
6.06%	6.05%	6.10%	24.01%	24.02%	24.33%	5.37%	5.38%	5.68%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
6.06%	6.05%	6.10%	193.24%	193.39%	197.08%	48.80%	48.97%	52.15%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.

The Fund’s per share net asset value or ”NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the 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.


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	27.52	%

Communications	13.87

Industrial	11.52

Consumer Non-Cyclical	10.74

Utilities	10.28

Basic Materials	7.63

Energy	7.61

Consumer Cyclical	7.56

Technology	2.13

Diversified	0.98

Short-Term and Other Net Assets	0.16


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Total SA (France)	3.55	%

Nokia OYJ (Finland)	3.19

Telefonica SA (Spain)	2.79

E.ON AG (Germany)	2.59

Banco Santander SA (Spain)	2.53

Siemens AG (Germany)	2.45

Eni SpA (Italy)	2.03

Allianz SE Registered (Germany)	1.76

Daimler AG Registered (Germany)	1.75

Banco Bilbao Vizcaya Argentaria SA (Spain)	1.68


TOTAL	24.32	%


FUND PERFORMANCE OVERVIEWS		3

Fund Performance Overview

iSHARES^® MSCI FRANCE INDEX FUND

Performance as of February 29, 2008

The iShares MSCI France Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the French market, as measured by the MSCI France Index ^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 5.50%, while the Index declined 5.34%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
1.26%	1.59%	1.49%	21.71%	21.86%	22.01%	8.76%	8.78%	9.03%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
1.26%	1.59%	1.49%	167.13%	168.67%	170.33%	131.48%	132.06%	137.34%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	17.49	%

Consumer Non-Cyclical	16.80

Energy	13.31

Industrial	13.28

Communications	11.29

Utilities	8.87

Basic Materials	7.95

Consumer Cyclical	6.90

Diversified	2.03

Technology	1.96

Short-Term and Other Net Assets	0.12


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Total SA	12.21	%

Sanofi-Aventis	5.66

BNP Paribas	5.52

ArcelorMittal	5.40

Suez SA	4.98

France Telecom SA	4.62

AXA	4.06

Vivendi	3.46

Carrefour SA	3.17

Societe Generale	3.02


TOTAL	52.10	%


4		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI GERMANY INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Germany Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the German market, as measured by the MSCI Germany Index ^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 1.61%, while the Index declined 1.44%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
14.93%	14.80%	15.35%	29.61%	29.72%	29.89%	7.56%	7.58%	7.75%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
14.93%	14.80%	15.35%	265.75%	267.32%	269.76%	107.32%	107.61%	110.94%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	21.12	%

Consumer Cyclical	17.41

Industrial	16.10

Utilities	15.32

Basic Materials	14.04

Consumer Non-Cyclical	5.50

Communications	4.92

Technology	4.33

Energy	0.68

Diversified	0.46

Short-Term and Other Net Assets	0.12


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
E.ON AG	10.29	%

Siemens AG	9.78

Allianz SE Registered	7.01

Daimler AG Registered	6.98

BASF SE	5.49

Bayer AG	4.91

Deutsche Bank AG	4.84

RWE AG	4.68

Deutsche Telekom AG	4.67

SAP AG	3.69


TOTAL	62.34	%


FUND PERFORMANCE OVERVIEWS		5

Fund Performance Overview

iSHARES^® MSCI ITALY INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Italy Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Italian market, as measured by the MSCI Italy Index ^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 6.92%, while the Index declined 6.04%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(4.49)%	(4.47)%	(3.34)%	18.29%	18.38%	18.33%	7.85%	7.81%	7.82%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(4.49)%	(4.47)%	(3.34)%	131.63%	132.51%	131.97%	112.95%	112.12%	112.38%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	46.08	%

Energy	19.20

Utilities	11.41

Communications	9.25

Consumer Non-Cyclical	5.15

Consumer Cyclical	5.00

Industrial	3.37

Diversified	0.34

Short-Term and Other Net Assets	0.20


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Eni SpA	17.89	%

UniCredito SpA	13.20

Intesa Sanpaolo SpA	10.09

Telecom Italia SpA	5.45

Assicurazioni Generali SpA	4.90

Enel SpA	4.84

Terna SpA	4.62

Unione di Banche Italiane ScpA	3.72

Fiat SpA	3.09

Mediobanca SpA	3.04


TOTAL	70.84	%


6		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI NETHERLANDS INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Netherlands Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Dutch market, as measured by the MSCI Netherlands Investable Market Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 4.61%, while the Index declined 3.45%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
7.74%	7.76%	9.27%	22.35%	22.42%	22.13%	4.02%	4.01%	5.13%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
7.74%	7.76%	9.27%	174.16%	174.93%	171.74%	48.25%	48.19%	64.93%

Effective February 1, 2008, the Fund changed its underlying index from the MSCI Netherlands Index^SM to the MSCI Netherlands Investable Market Index. Performance shown above reflects the MSCI Netherlands Index through January 31, 2008 and the MSCI Netherlands Investable Market Index thereafter.

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


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Consumer Non-Cyclical	25.99	%

Financial	24.83

Industrial	18.65

Communications	14.55

Basic Materials	6.60

Technology	4.59

Energy	2.46

Consumer Cyclical	1.70

Diversified	0.52

Short-Term and Other Net Assets	0.11


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
ING Groep NV	16.16	%

Unilever NV	13.13

Koninklijke Philips Electronics NV	11.29

Koninklijke KPN NV	8.80

Aegon NV	4.79

Akzo Nobel NV	4.73

TNT NV	4.35

Koninklijke Ahold NV	4.30

Reed Elsevier NV	3.48

Heineken NV	3.46


TOTAL	74.49	%


FUND PERFORMANCE OVERVIEWS		7

Fund Performance Overview

iSHARES^® MSCI SPAIN INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Spain Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Spanish market, as measured by the MSCI Spain Index ^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund returned 2.20%, while the Index returned 2.21%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
9.29%	9.46%	9.66%	27.86%	27.91%	28.14%	11.09%	11.10%	11.13%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
9.29%	9.46%	9.66%	241.67%	242.33%	245.48%	186.32%	186.44%	187.24%

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


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	38.75	%

Communications	23.11

Utilities	15.31

Industrial	7.40

Energy	6.69

Consumer Non-Cyclical	3.79

Consumer Cyclical	3.03

Technology	1.14

Basic Materials	0.68

Short-Term and Other Net Assets	0.10


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Telefonica SA	21.38	%

Banco Santander SA	17.58

Banco Bilbao Vizcaya Argentaria SA	10.05

Banco Popular Espanol SA	5.06

Repsol YPF SA	4.92

Iberdrola SA	4.81

Gas Natural SDG SA	3.76

Union Fenosa SA	3.15

Actividades de Construccionesy Servicios SA	2.93

Abertis Infraestructuras SA	2.93


TOTAL	76.57	%


8		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SWEDEN INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Sweden Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Swedish market, as measured by the MSCI Sweden Index ^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 12.00%, while the Index declined 11.87%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(3.24)%	(2.97)%	(3.18)%	27.81%	27.83%	28.02%	8.34%	8.34%	9.38%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(3.24)%	(2.97)%	(3.18)%	241.11%	241.29%	243.83%	122.76%	122.69%	145.17%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Industrial	27.07	%

Financial	23.19

Communications	20.89

Consumer Cyclical	13.38

Basic Materials	7.30

Consumer Non-Cyclical	7.01

Energy	1.03

Short-Term and Other Net Assets	0.13


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Telefonaktiebolaget LM Ericsson AB Class B	10.63	%

Nordea Bank AB	10.41

Hennes & Mauritz AB Class B	8.87

TeliaSonera AB	5.93

Volvo AB Class B	5.40

Sandvik AB	5.06

Svenska Handelsbanken AB Class A	4.58

Skandinaviska Enskilda Banken AB Class A	3.86

Atlas Copco AB Class A	3.49

Svenska Cellulosa AB Class B	3.09


TOTAL	61.32	%


FUND PERFORMANCE OVERVIEWS		9

Fund Performance Overview

iSHARES^® MSCI SWITZERLAND INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Switzerland Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Swiss market, as measured by the MSCI Switzerland Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund returned 0.42%, while the Index declined 1.70%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
4.30%	3.76%	1.77%	21.22%	21.01%	20.48%	5.51%	5.41%	5.71%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
4.30%	3.76%	1.77%	161.72%	159.45%	153.87%	70.97%	69.36%	74.32%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Consumer Non-Cyclical	50.29	%

Financial	22.72

Industrial	10.20

Consumer Cyclical	6.43

Basic Materials	6.33

Communications	2.76

Technology	0.72

Short-Term and Other Net Assets	0.55


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Nestle SA Registered	18.18	%

Roche Holding AG Genusschein	14.01

Novartis AG Registered	10.15

UBS AG Registered	5.56

Zurich Financial Services AG Registered	4.88

ABB Ltd. Registered	4.87

Credit Suisse Group Registered	4.28

Syngenta AG Registered	4.05

Swiss Reinsurance Co. Registered	4.05

Compagnie Financiere Richemont SA A Units Bearer	3.92


TOTAL	73.95	%


10		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

Performance as of February 29, 2008

The iShares MSCI United Kingdom Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the British market, as measured by the MSCI United Kingdom Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 7.79%, while the Index declined 7.52%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(1.28)%	(1.63)%	(0.62)%	18.21%	18.30%	19.13%	4.60%	4.55%	5.17%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(1.28)%	(1.63)%	(0.62)%	130.84%	131.68%	139.89%	56.83%	55.98%	65.62%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	23.07	%

Consumer Non-Cyclical	21.10

Energy	18.57

Basic Materials	12.59

Communications	10.70

Consumer Cyclical	4.59

Utilities	4.56

Industrial	3.82

Technology	0.41

Diversified	0.11

Short-Term and Other Net Assets	0.48

TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
BP PLC	7.33	%

HSBC Holdings PLC	6.40

Vodafone Group PLC	6.13

Royal Dutch Shell PLC Class A	4.60

GlaxoSmithKline PLC	4.32

Rio Tinto PLC	4.04

Royal Dutch Shell PLC Class B	3.47

Anglo American PLC	3.03

BG Group PLC	2.85

Royal Bank of Scotland Group PLC	2.71


TOTAL	44.88	%


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, 2007 to February 29, 2008.

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 (9/1/07)	Ending Account Value (2/29/08)	Annualized Expense Ratio		Expenses Paid During Period^a (9/1/07 to 2/29/08)
Austria
Actual	$1,000.00	$ 918.50	0.51	%	$2.43
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Belgium
Actual	1,000.00	909.00	0.51		2.42
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
EMU
Actual	1,000.00	962.60	0.51		2.49
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
France
Actual	1,000.00	945.00	0.51		2.47
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56


12		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.


iShares MSCI Index Fund	Beginning Account Value (9/1/07)	Ending Account Value (2/29/08)	Annualized Expense Ratio		Expenses Paid During Period^a (9/1/07 to 2/29/08)
Germany
Actual	$1,000.00	$ 983.90	0.51	%	$2.52
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Italy
Actual	1,000.00	930.80	0.51		2.45
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Netherlands
Actual	1,000.00	953.90	0.51		2.48
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Spain
Actual	1,000.00	1,022.00	0.51		2.56
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Sweden
Actual	1,000.00	880.00	0.51		2.38
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Switzerland
Actual	1,000.00	1,004.20	0.51		2.54
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
United Kingdom
Actual	1,000.00	922.10	0.51		2.44
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56

^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 (182 days) and divided by the number of days in the year (366 days).


SHAREHOLDER EXPENSES		13

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.21%

AIRLINES – 0.20%
Austrian Airlines AG^a,b	75,869	$	595,464

			595,464

BANKS – 19.55%
Erste Bank der Oesterreichischen Sparkassen AG	755,058		44,130,761
Raiffeisen International Bank Holding AG	110,202		14,287,220

			58,417,981

BIOTECHNOLOGY – 1.07%
Intercell AG^a	82,983		3,187,205

			3,187,205

BUILDING MATERIALS – 4.78%
Wienerberger AG	293,044		14,280,330

			14,280,330

CHEMICALS – 0.32%
Lenzing AG	1,746		964,819

			964,819

ELECTRIC – 6.31%
EVN AG^b	27,066		3,535,699
Oesterreichische Elektrizitaetswirtschafts AG Class A	205,701		15,317,073

			18,852,772

ELECTRICAL COMPONENTS & EQUIPMENT – 0.87%
Zumtobel AG	90,691		2,589,723

			2,589,723

ENGINEERING & CONSTRUCTION – 2.82%
Flughafen Wien AG	64,171		7,351,162
Meinl Airports International AG^a	140,722		1,066,014

			8,417,176

ENTERTAINMENT – 0.95%
bwin Interactive Entertainment AG^a,b	94,081		2,852,203

			2,852,203
ENVIRONMENTAL CONTROL – 0.57%
BWT AG	30,818		1,439,569
Christ Water Technology AG^a	16,122		281,460

			1,721,029


Security	Shares	Value
FOREST PRODUCTS & PAPER – 1.74%
Mayr-Melnhof Karton AG	50,642	$	5,188,606

			5,188,606

INSURANCE – 3.78%
Vienna Insurance Group	134,168		11,281,860

			11,281,860

IRON & STEEL – 7.99%
voestalpine AG	376,340		23,881,249

			23,881,249

LODGING – 0.10%
Warimpex Finanz-und Beteiligungs AG	26,625		295,466

			295,466

MACHINERY – 3.36%
Andritz AG	167,812		9,515,114
A-TEC Industries AG	5,730		513,224

			10,028,338

MACHINERY – CONSTRUCTION & MINING – 0.75%
Palfinger AG	65,893		2,247,723

			2,247,723

MANUFACTURING – 2.05%
RHI AG^a	150,757		6,138,138

			6,138,138

OIL & GAS – 14.25%
OMV AG	585,368		42,566,199

			42,566,199

OIL & GAS SERVICES – 0.59%
Schoeller-Bleckmann Oilfield Equipment AG	19,858		1,755,427

			1,755,427

REAL ESTATE – 15.89%
CA Immo International AG^a	73,260		1,156,646
CA Immobilien Anlagen AG^a	537,933		11,890,221
conwert Immobilien Invest SE^a	179,510		2,888,650
ECO Business-Immobilien AG^a	93,266		1,118,538
Immoeast AG^a	897,254		8,131,864
IMMOFINANZ AG	654,761		7,136,867
Meinl European Land Ltd.^a	1,111,793		14,008,848
Sparkassen Immobilien AG^a	107,241		1,139,618

			47,471,252


14		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INDEX FUND

February 29, 2008


Security	Shares	Value

TELECOMMUNICATIONS – 9.93%
Telekom Austria AG	1,305,646	$	29,672,055

			29,672,055

TRANSPORTATION – 1.34%
Oesterreichische Post AG	101,782		4,017,397

			4,017,397


TOTAL COMMON STOCKS
(Cost: $334,229,488)			296,422,412

SHORT-TERM INVESTMENTS – 1.47%

MONEY MARKET FUNDS – 1.47%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	19,275		19,275
BGI Cash Premier Fund LLC 3.63%^c,d,e	4,363,538		4,363,538

			4,382,813


TOTAL SHORT-TERM INVESTMENTS (Cost: $4,382,813)			4,382,813


TOTAL INVESTMENTS IN SECURITIES –100.68%
(Cost: $338,612,301)			300,805,225

Other Assets, Less Liabilities – (0.68)%			(2,042,784	)


NET ASSETS – 100.00%		$	298,762,441

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		15

Schedule of Investments (Unaudited)

iSHARES^® MSCI BELGIUM INDEX FUND

February 29, 2008


Security	Shares	Value

COMMON STOCKS – 99.67%

BANKS – 40.91%
Banque Nationale de Belgique	460	$	2,042,604
Dexia SA	533,573		12,692,969
Fortis	3,037,123		67,684,435
KBC Group NV	299,576		37,901,892

			120,321,900

BEVERAGES – 9.19%
InBev	296,657		27,021,299

			27,021,299

BIOTECHNOLOGY – 0.04%
Devgen NV^a	4,960		116,335

			116,335

CHEMICALS – 4.60%
Solvay SA	106,243		13,427,184
Tessenderlo Chemie NV	2,163		96,506

			13,523,690

DIVERSIFIED FINANCIAL SERVICES – 1.65%
KBC Ancora SCA	48,184		4,844,601

			4,844,601

ELECTRICAL COMPONENTS & EQUIPMENT – 1.30%
NV Bekaert SA	28,708		3,813,391

			3,813,391

ELECTRONICS – 0.97%
Barco NV	22,613		1,647,782
EVS Broadcast Equipment SA	11,667		1,206,165

			2,853,947

FOOD – 7.11%
Colruyt SA	32,778		8,059,673
Delhaize Group	168,370		12,861,918

			20,921,591

HEALTH CARE – PRODUCTS – 0.10%
Ion Beam Applications SA^a	14,525		312,454

			312,454

HOLDING COMPANIES – DIVERSIFIED – 10.84%
Ackermans & van Haaren NV	41,971		4,324,417
Compagnie Nationale a Portefeuille SA	49,766		3,487,377


Security	Shares	Value
Groupe Bruxelles Lambert SA	127,313	$	15,367,205
Sofina SA	78,632		8,700,970

			31,879,969

INVESTMENT COMPANIES – 0.56%
RHJ International SA^a	126,020		1,660,579

			1,660,579

MANUFACTURING – 0.93%
AGFA-Gevaert NV	282,805		2,747,688

			2,747,688

MINING – 3.82%
Umicore	218,890		11,228,313

			11,228,313

PHARMACEUTICALS – 3.91%
Omega Pharma SA	33,378		1,588,034
UCB SA	208,337		9,918,428

			11,506,462

REAL ESTATE INVESTMENT TRUSTS – 3.63%
Cofinimmo SA	51,909		10,669,145

			10,669,145

RETAIL – 0.75%
SA D’Ieteren NV	6,240		2,216,669

			2,216,669

SEMICONDUCTORS – 0.10%
ICOS Vision Systems Corp. NV^a	5,350		289,949

			289,949

TELECOMMUNICATIONS – 7.25%
Belgacom SA	295,706		14,250,689
Mobistar SA	67,244		5,764,634
Option NV^a	43,080		353,159
Telenet Group Holding NV^a	45,240		964,938

			21,333,420

TRANSPORTATION – 1.20%
Compagnie Maritime Belge SA	23,397		1,748,955
Euronav SA	45,642		1,773,109

			3,522,064

VENTURE CAPITAL – 0.81%
GIMV NV	33,542		2,378,478

			2,378,478


TOTAL COMMON STOCKS (Cost: $301,060,717)			293,161,944


16		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BELGIUM INDEX FUND

February 29, 2008


Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.02%

MONEY MARKET FUNDS – 0.02%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^b,c	63,007	$	63,007

			63,007


TOTAL SHORT-TERM INVESTMENTS

(Cost: $63,007)			63,007


TOTAL INVESTMENTS IN SECURITIES – 99.69% (Cost: $301,123,724)			293,224,951

Other Assets, Less Liabilities – 0.31%			902,891


NET ASSETS – 100.00%		$	294,127,842

^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		17

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMU INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 98.42%

AUSTRIA – 1.66%
Andritz AG	23,922	$	1,356,402
bwin Interactive Entertainment AG^a	14,044		425,764
Erste Bank der Oesterreichischen Sparkassen AG	115,877		6,772,646
Flughafen Wien AG	6,569		752,517
Immoeast AG^a	245,374		2,223,839
IMMOFINANZ AG	221,777		2,417,360
Mayr-Melnhof Karton AG	10,458		1,071,491
Meinl European Land Ltd.^a	208,394		2,625,812
Oesterreichische Elektrizitaetswirtschafts AG Class A	52,894		3,938,636
OMV AG	99,826		7,259,046
Raiffeisen International Bank Holding AG	30,241		3,920,617
RHI AG^a	15,416		627,669
Telekom Austria AG	202,977		4,612,847
Vienna Insurance Group	18,863		1,586,144
voestalpine AG	68,662		4,357,056
Wienerberger AG	46,062		2,244,648

			46,192,494

BELGIUM – 3.43%
AGFA-Gevaert NV	52,199		507,157
Barco NV	2,795		203,668
Belgacom SA	99,363		4,788,510
Cofinimmo SA	9,551		1,963,070
Colruyt SA	8,362		2,056,104
Compagnie Maritime Belge SA	7,558		564,970
Compagnie Nationale a Portefeuille SA	12,071		845,881
Delhaize Group	61,292		4,682,144
Dexia SA	325,896		7,752,618
Euronav SA	11,243		436,770
Fortis	1,306,758		29,122,027
Groupe Bruxelles Lambert SA	40,589		4,899,260
InBev	95,689		8,715,928
KBC Ancora SCA	2,623		263,726
KBC Group NV	107,012		13,538,993
Mobistar SA	15,247		1,307,081
NV Bekaert SA	8,012		1,064,264


Security	Shares	Value
Omega Pharma SA	10,279	$	489,047
SA D’Ieteren NV	1,614		573,350
Solvay SA	35,885		4,535,212
UCB SA	66,564		3,168,953
Umicore	74,775		3,835,703

			95,314,436

FINLAND – 5.41%
Amer Sports OYJ Class A^b	49,347		1,037,554
Cargotec Corp. Class B^a	24,570		1,227,161
Elisa OYJ Class A	80,964		2,486,499
Fortum OYJ	281,988		11,857,982
Kesko OYJ Class B	33,829		1,553,000
Kone OYJ Class B	103,112		3,640,988
Konecranes OYJ	39,787		1,461,696
Metso OYJ	67,287		3,536,377
Neste Oil OYJ	73,157		2,583,247
Nokia OYJ	2,424,506		88,703,486
Nokian Renkaat OYJ	71,162		2,955,729
OKO Bank PLC Class A	44,836		787,518
Orion OYJ Class B	47,911		1,027,727
Outokumpu OYJ	72,463		2,784,254
Rautaruukki OYJ	49,036		2,168,482
Sampo OYJ Class A	235,659		6,446,726
SanomaWSOY OYJ Class B	23,422		593,445
Stora Enso OYJ Class R	332,216		4,185,998
TietoEnator OYJ	26,218		495,131
UPM-Kymmene OYJ	326,599		5,696,856
Uponor OYJ	21,280		559,202
Wartsila OYJ Class B	38,480		2,656,198
YIT OYJ	77,546		1,947,131

			150,392,387

FRANCE – 29.30%
Accor SA	127,161		9,119,357
Aeroports de Paris	19,336		2,364,463
Air France-KLM	95,987		2,611,264
Alcatel-Lucent	1,432,499		8,502,986
ALSTOM	63,623		13,575,173
ArcelorMittal	567,801		43,676,461
Atos Origin SA^a	45,992		2,501,667
AXA	940,772		32,105,621
BNP Paribas	513,979		46,480,774
Bouygues SA	117,003		8,071,155


18		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 29, 2008


Security	Shares	Value
Cap Gemini SA	83,722	$	4,631,465
Carrefour SA	354,698		25,135,641
Casino Guichard-Perrachon SA	26,950		3,067,641
Christian Dior SA	5,225		573,568
CNP Assurances SA	25,999		2,871,770
Compagnie de Saint-Gobain	164,094		13,008,582
Compagnie Generale de Geophysique-Veritas^a	16,177		3,991,461
Compagnie Generale des Etablissements Michelin Class B	84,765		8,442,809
Credit Agricole SA	430,095		11,778,807
Dassault Systemes SA	25,041		1,375,754
Eiffage SA	12,005		1,062,870
Electricite de France	50,507		4,734,661
Essilor International SA	121,855		7,270,031
Eurazeo	6,785		824,540
European Aeronautic Defence and Space Co.^b	205,292		5,432,126
France Telecom SA	1,119,579		37,867,821
Gaz de France	121,683		7,015,930
Gecina SA	7,081		1,031,968
Groupe Danone	272,054		21,468,009
Hermes International	40,532		4,778,546
Icade	11,785		1,678,158
Imerys SA	22,908		1,932,190
JCDecaux SA^b	24,527		745,061
Klepierre	45,767		2,695,781
Lafarge SA	93,523		16,324,546
Lagardere SCA	69,217		5,485,089
L’Air Liquide SA	154,205		21,993,565
Legrand SA	28,159		895,574
L’Oreal SA	160,815		19,218,170
LVMH Moet Hennessy Louis Vuitton SA	143,963		14,911,682
M6-Metropole Television	55,671		1,321,801
Natixis	156,587		2,315,341
Neopost SA	26,172		2,737,118
Neuf Cegetel	12,005		636,774
PagesJaunes SA	69,348		1,298,068
Pernod Ricard SA	104,476		11,165,793
PPR SA^b	45,848		6,319,152
PSA Peugeot Citroen SA	91,581		7,029,312
Publicis Groupe SA	77,881		2,836,365


Security	Shares	Value
Renault SA	114,635	$	12,390,750
Safran SA^b	105,090		2,123,439
Sanofi-Aventis	612,054		45,333,676
Schneider Electric SA	132,188		15,195,081
SCOR SE	111,584		2,549,405
SES SA	75,305		1,871,427
Societe BIC	12,759		809,449
Societe des Autoroutes Paris-Rhin-Rhone	18,413		2,090,588
Societe Generale^b	237,205		25,603,175
Societe Generale NV New^a	59,758		6,566,214
Societe Television Francaise 1	92,942		2,215,195
Sodexo	61,882		3,505,016
STMicroelectronics NV	466,991		5,671,512
Suez SA	627,912		40,235,974
Technip SA	62,064		5,101,036
Thales SA	66,681		4,108,862
Total SA	1,301,148		98,743,886
Unibail-Rodamco	41,101		10,095,580
Valeo SA	47,490		1,811,737
Vallourec SA	30,405		6,382,243
Veolia Environnement	207,416		18,536,881
Vinci SA	236,082		16,471,884
Vivendi	692,480		27,563,877
Wendel	6,785		772,729
Zodiac SA	26,937		1,410,402

			814,072,479

GERMANY – 24.08%
Adidas AG	130,106		8,283,734
Allianz SE Registered	274,111		48,895,029
ALTANA AG	39,026		907,639
Arcandor AG^a,b	49,602		878,760
BASF SE	305,844		38,992,063
Bayer AG	448,690		34,636,797
Bayerische Motoren Werke AG	102,868		5,650,010
Beiersdorf AG	55,197		4,436,922
Bilfinger Berger AG	21,433		1,709,517
Celesio AG	44,347		2,552,895
Commerzbank AG	382,740		11,667,235
Continental AG	89,789		8,821,898
Daimler AG Registered	573,338		48,558,747
Deutsche Bank AG	306,537		34,557,175


SCHEDULES OF INVESTMENTS		19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 29, 2008


Security	Shares	Value
Deutsche Boerse AG	121,463	$	19,340,980
Deutsche Lufthansa AG Registered	139,649		3,283,898
Deutsche Post AG	488,290		16,293,182
Deutsche Postbank AG	52,721		5,152,702
Deutsche Telekom AG	1,707,013		32,574,105
Douglas Holding AG	13,636		726,599
E.ON AG	382,250		72,072,481
Fraport AG	4,167		311,425
Fresenius Medical Care AG & Co. KGaA	117,932		6,207,059
GEA Group AG^a	85,640		2,806,918
Heidelberger Druckmaschinen AG^b	46,271		1,130,928
HeidelbergerCement AG	7,823		1,253,522
Henkel KGaA	68,667		2,802,062
Hochtief AG	28,241		3,092,834
Hypo Real Estate Holding AG	109,816		3,157,519
Infineon Technologies AG^a	491,431		3,998,782
IVG Immobilien AG	56,028		1,964,796
K+S AG	21,401		6,262,552
Linde AG	71,115		9,481,019
MAN AG	71,700		9,493,702
Merck KGaA	38,717		4,830,822
METRO AG	95,387		8,032,445
MLP AG	38,476		544,385
Muenchener Rueckversicherungs- Gesellschaft AG Registered	125,275		22,135,048
Premiere AG^a	27,665		594,695
Puma AG	4,706		1,682,883
Q-Cells AG^a	27,141		2,229,481
QIAGEN NV^a	71,212		1,596,739
Rheinmetall AG	20,083		1,408,851
RWE AG	275,181		33,365,874
Salzgitter AG	26,237		4,667,325
SAP AG	530,639		25,463,849
Siemens AG	524,989		68,078,527
SolarWorld AG	50,549		2,317,501
Suedzucker AG	35,057		771,690
ThyssenKrupp AG	213,703		12,376,719
TUI AG^a	142,882		3,448,856
Volkswagen AG	96,440		21,959,371
Wacker Chemie AG	3,123		674,221
Wincor Nixdorf AG	13,560		1,084,647

			669,219,415


Security	Shares	Value
GREECE – 1.69%
Coca-Cola Hellenic Bottling Co. SA ADR	259,075	$	11,293,079
Hellenic Telecommunications Organization SA SP ADR	920,658		12,787,940
National Bank of Greece SA ADR	2,089,942		22,843,066

			46,924,085

IRELAND – 1.94%
Allied Irish Banks PLC	553,459		11,426,803
Anglo Irish Bank Corp. PLC	239,703		3,426,054
Bank of Ireland	623,162		8,845,308
CRH PLC	335,818		12,515,720
DCC PLC	40,939		1,034,913
Elan Corp. PLC^a	283,568		6,612,243
Greencore Group PLC	98,031		648,859
IAWS Group PLC	46,320		940,227
Irish Life & Permanent PLC	180,353		2,950,677
Kerry Group PLC Class A	74,107		2,331,263
Kingspan Group PLC	60,980		831,035
Paddy Power PLC	34,042		1,093,014
Ryanair Holdings PLC^a	43,520		208,312
Smurfit Kappa Group PLC^a	74,161		1,069,546

			53,933,974

ITALY – 10.58%
A2A SpA	370,778		1,508,513
Alleanza Assicurazioni SpA	236,625		3,053,374
Arnoldo Mondadori Editore SpA	474		3,846
Assicurazioni Generali SpA	638,520		27,597,030
Atlantia SpA	179,316		5,771,056
Autogrill SpA	82,001		1,318,304
Banca Carige SpA^b	184,855		724,723
Banca Monte dei Paschi di Siena SpA^b	1,167,950		5,328,060
Banca Popolare di Milano Scrl	281,743		3,376,802
Banco Popolare SpA^a	409,617		7,797,868
Bulgari SpA	72,083		809,776
Enel SpA	2,654,878		28,756,692
Eni SpA	1,622,186		56,443,722
Fiat SpA	427,446		9,130,104
Finmeccanica SpA	200,298		6,200,036
Fondiaria-Sai SpA	44,319		1,980,070
IFIL Investments SpA	94,339		738,279


20		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 29, 2008


Security	Shares	Value
Intesa Sanpaolo SpA	4,629,934	$	31,277,727
Italcementi SpA	68,305		1,400,904
Italcementi SpA RNC	46,457		711,964
Lottomatica SpA	58,663		2,132,008
Luxottica Group SpA	70,871		1,969,959
Mediaset SpA	478,396		4,339,362
Mediobanca SpA	298,492		5,786,607
Mediolanum SpA^b	204,555		1,294,931
Parmalat SpA	920,677		3,525,647
Pirelli & C. SpA^a	1,493,833		1,481,999
Prysmian SpA^a	52,091		1,028,822
Saipem SpA	64,755		2,667,003
Seat Pagine Gialle SpA^b	3,846,393		1,136,310
Snam Rete Gas SpA	472,247		3,299,616
Telecom Italia SpA	5,879,496		14,825,526
Terna SpA	869,755		3,779,574
UniCredito SpA	5,817,502		43,142,121
Unione di Banche Italiane ScpA	381,839		9,013,865
Unipol Gruppo Finanziario SpA	186,421		527,806

			293,880,006

NETHERLANDS – 7.68%
Aegon NV	898,037		13,578,567
Akzo Nobel NV	155,002		11,459,526
ASML Holding NV^a	256,257		6,259,392
Corio NV	24,609		2,295,706
Corporate Express NV	26,418		314,826
Fugro NV CVA	29,660		2,258,096
Hagemeyer NV^b	203,632		1,490,025
Heineken Holding NV	19,613		1,003,996
Heineken NV	143,253		8,131,292
ING Groep NV	1,148,437		38,791,589
Koninklijke Ahold NV^a	744,408		9,865,649
Koninklijke DSM NV	93,886		4,154,701
Koninklijke KPN NV	1,131,246		21,501,154
Koninklijke Philips Electronics NV	710,405		28,018,542
Oce NV	38,548		718,622
Randstad Holding NV^b	36,735		1,408,685
Reed Elsevier NV	379,295		7,122,742
SBM Offshore NV	90,289		2,933,249
TNT NV	246,673		9,777,523
TomTom NV^a	33,152		1,570,235
Unilever NV	1,046,475		32,615,060


Security	Shares	Value
Vedior NV	99,300	$	2,511,450
Wereldhave NV	7,907		962,210
Wolters Kluwer NV	180,874		4,717,367

			213,460,204

PORTUGAL – 0.96%
Banco BPI SA Registered	163,009		785,698
Banco Comercial Portugues SA Class R^b	1,451,955		4,210,047
Banco Espirito Santo SA Registered	151,025		2,731,765
BRISA - Auto - estradas de Portugal SA	209,942		3,180,755
CIMPOR - Cimentos de Portugal SGPS SA	145,685		1,221,933
Energias de Portugal SA	1,202,130		7,071,695
Jeronimo Martins SGPS SA	104,919		777,274
Portugal Telecom SGPS SA	310,549		3,983,706
Sonae Industria SGPS SA^a	64,314		464,743
Sonae SGPS SA	569,601		1,046,301
Zon Multimedia - Servicos de Telecomunicacoes e Multimedia SGPS SA	93,636		1,165,620

			26,639,537

SPAIN – 11.69%
Abertis Infraestructuras SA	166,401		5,289,724
Acciona SA	17,849		4,579,320
Acerinox SA	102,983		2,604,599
Actividades de Construcciones y Servicios SA	118,846		6,119,850
Antena 3 de Television SA^b	77,245		1,070,635
Banco Bilbao Vizcaya Argentaria SA	2,238,609		46,762,429
Banco Popular Espanol SA^b	508,084		8,029,465
Banco Sabadell SA^b	310,565		2,875,959
Banco Santander SA	3,879,600		70,263,176
Bankinter SA^b	80,895		1,204,734
Cintra Concesiones de Infraestructuras de Transporte SA^b	115,658		1,850,618
Criteria CaixaCorp SA	311,318		2,155,110
Enagas SA	41,958		1,270,744
Fomento de Construcciones y Contratas SA	24,591		1,496,250


SCHEDULES OF INVESTMENTS		21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 29, 2008


Security	Shares	Value
Gamesa Corporacion Tecnologica SA	101,977	$	4,203,126
Gas Natural SDG SA	92,056		5,616,561
Gestevision Telecinco SA	54,466		1,169,164
Grupo Ferrovial SA	38,479		2,541,051
Iberdrola Renovables SA^a	447,989		2,788,378
Iberdrola SA	2,209,692		32,203,521
Iberia Lineas Aereas de Espana SA	259,336		940,938
Indra Sistemas SA	77,794		2,177,747
Industria de Diseno Textil SA	123,594		6,445,024
Mapfre SA	299,474		1,359,348
Promotora de Informaciones SA^b	35,843		502,234
Red Electrica de Espana SA	53,243		3,343,863
Repsol YPF SA	525,142		18,216,433
SacyrVallehermoso SA^b	59,218		1,815,957
Sogecable SA^a,b	31,877		1,342,407
Telefonica SA	2,653,200		77,495,313
Union Fenosa SA	71,488		4,737,157
Zardoya Otis SA^b	65,396		1,641,060
Zeltia SA^b	88,842		596,130

			324,708,025


TOTAL COMMON STOCKS (Cost: $2,384,395,055)			2,734,737,042

PREFERRED STOCKS – 1.42%

GERMANY – 1.04%
Bayerische Motoren Werke AG	14,615		677,592
Fresenius SE	11,945		1,009,141
Henkel KGaA	114,647		5,083,872
Porsche Automobil Holding SE	5,360		9,238,117
ProSiebenSat.1 Media AG	62,905		1,361,774
RWE AG	22,964		2,316,208
Volkswagen AG	65,307		9,114,175

			28,800,879

ITALY – 0.38%
Intesa Sanpaolo SpA RNC	541,558		3,459,151
Istituto Finanziario Industriale SpA^a	33,331		948,746
Telecom Italia SpA RNC	2,467,029		4,797,597
Unipol Gruppo Finanziario SpA	521,969		1,385,117

			10,590,611


TOTAL PREFERRED STOCKS (Cost: $32,725,917)			39,391,490


Security	Shares	Value

SHORT-TERM INVESTMENTS – 2.13%

MONEY MARKET FUNDS – 2.13%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	1,285,993	$	1,285,993
BGI Cash Premier Fund LLC 3.63%^c,d,e	57,759,398		57,759,398

			59,045,391


TOTAL SHORT-TERM INVESTMENTS
(Cost: $59,045,391)			59,045,391


TOTAL INVESTMENTS IN SECURITIES – 101.97% (Cost: $2,476,166,363)			2,833,173,923

Other Assets, Less Liabilities – (1.97)%			(54,615,371	)


NET ASSETS – 100.00%		$	2,778,558,552

ADR – American Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


22		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI FRANCE INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.88%

ADVERTISING – 0.70%
JCDecaux SA^a	31,437	$	954,967
PagesJaunes SA	56,813		1,063,436
Publicis Groupe SA	67,151		2,445,587

			4,463,990

AEROSPACE & DEFENSE – 1.46%
European Aeronautic Defence and Space Co.^a	155,218		4,107,143
Safran SA^a	79,059		1,597,459
Thales SA	42,332		2,608,484
Zodiac SA	18,659		976,972

			9,290,058

AIRLINES – 0.27%
Air France-KLM	64,005		1,741,215

			1,741,215

APPAREL – 0.61%
Hermes International	32,980		3,888,198

			3,888,198

AUTO MANUFACTURERS – 2.37%
PSA Peugeot Citroen SA	72,304		5,549,703
Renault SA	87,995		9,511,267

			15,060,970

AUTO PARTS & EQUIPMENT – 1.27%
Compagnie Generale des Etablissements Michelin Class B	68,249		6,797,774
Valeo SA	33,033		1,260,204

			8,057,978

BANKS – 10.80%
BNP Paribas	388,041		35,091,796
Credit Agricole SA	312,735		8,564,725
Natixis	86,930		1,285,372
Societe Generale^a	178,105		19,224,103
Societe Generale NV New^a,b	41,160		4,522,664

			68,688,660

BEVERAGES – 1.40%
Pernod Ricard SA	83,349		8,907,861

			8,907,861


Security	Shares	Value
BUILDING MATERIALS – 3.78%
Compagnie de Saint-Gobain	133,097	$	10,551,289
Imerys SA	15,313		1,291,585
Lafarge SA	69,943		12,208,630

			24,051,504

CHEMICALS – 2.55%
L’Air Liquide SA	113,579		16,199,261

			16,199,261

COMMERCIAL SERVICES – 0.19%
Societe des Autoroutes Paris-Rhin-Rhone	10,632		1,207,143

			1,207,143

COMPUTERS – 0.85%
Atos Origin SA^b	32,950		1,792,267
Cap Gemini SA	65,680		3,633,389

			5,425,656

COSMETICS & PERSONAL CARE – 2.43%
Christian Dior SA	13,021		1,429,365
L’Oreal SA	117,587		14,052,215

			15,481,580

ELECTRIC – 0.70%
Electricite de France	47,622		4,464,214

			4,464,214

ELECTRICAL COMPONENTS & EQUIPMENT – 0.11%
Legrand SA	22,044		701,092

			701,092

ENGINEERING & CONSTRUCTION – 3.73%
Aeroports de Paris	16,519		2,019,992
Bouygues SA	106,446		7,342,907
Eiffage SA	8,817		780,618
Vinci SA	194,986		13,604,539

			23,748,056

FOOD – 6.11%
Carrefour SA	284,626		20,169,995
Casino Guichard-Perrachon SA	20,787		2,366,125
Groupe Danone	207,123		16,344,250

			38,880,370

FOOD SERVICE – 0.40%
Sodexo	45,418		2,572,490

			2,572,490


SCHEDULES OF INVESTMENTS		23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 29, 2008


Security	Shares	Value
GAS – 0.85%
Gaz de France	93,396	$	5,384,974

			5,384,974

HAND & MACHINE TOOLS – 1.89%
Schneider Electric SA	104,725		12,038,194

			12,038,194

HEALTH CARE – PRODUCTS – 0.88%
Essilor International SA	93,643		5,586,866

			5,586,866

HOLDING COMPANIES – DIVERSIFIED – 2.03%
LVMH Moet Hennessy Louis Vuitton SA	116,294		12,045,728
Wendel	7,850		894,020

			12,939,748

HOME FURNISHINGS – 0.14%
Thomson	114,812		890,653

			890,653

HOUSEHOLD PRODUCTS & WARES – 0.13%
Societe BIC	13,036		827,022

			827,022

INSURANCE – 4.72%
AXA	756,048		25,801,565
CNP Assurances SA	21,046		2,324,677
SCOR SE	82,472		1,884,271

			30,010,513

INVESTMENT COMPANIES – 0.11%
Eurazeo	5,788		703,380

			703,380

IRON & STEEL – 5.40%
ArcelorMittal	446,759		34,365,652

			34,365,652

LODGING – 1.05%
Accor SA	92,685		6,646,909

			6,646,909

MACHINERY – 1.56%
ALSTOM	46,526		9,927,204

			9,927,204

MEDIA – 4.55%
Lagardere SCA	60,884		4,824,742
M6-Metropole Television	31,555		749,213


Security	Shares	Value
Societe Television Francaise 1	56,183	$	1,339,075
Vivendi	552,844		22,005,724

			28,918,754

METAL FABRICATE & HARDWARE – 0.75%
Vallourec SA	22,580		4,739,716

			4,739,716

OFFICE & BUSINESS EQUIPMENT – 0.25%
Neopost SA	15,500		1,621,020

			1,621,020

OIL & GAS – 12.69%
Compagnie Generale de Geophysique-Veritas^b	12,391		3,057,316
Total SA	1,023,756		77,692,657

			80,749,973

OIL & GAS SERVICES – 0.62%
Technip SA	48,054		3,949,555

			3,949,555

PHARMACEUTICALS – 5.66%
Sanofi-Aventis	485,761		35,979,394

			35,979,394

REAL ESTATE – 1.65%
Gecina SA	5,966		869,470
Klepierre	33,506		1,973,580
Unibail-Rodamco	31,079		7,633,891

			10,476,941

REAL ESTATE INVESTMENT TRUSTS – 0.21%
Icade	9,307		1,325,296

			1,325,296

RETAIL – 0.79%
PPR SA	36,498		5,030,457

			5,030,457

SEMICONDUCTORS – 0.62%
STMicroelectronics NV	324,404		3,939,822

			3,939,822

SOFTWARE – 0.24%
Dassault Systemes SA	27,729		1,523,432

			1,523,432

TELECOMMUNICATIONS – 6.04%
Alcatel-Lucent	1,096,318		6,507,493
France Telecom SA	868,144		29,363,467


24		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 29, 2008


Security	Shares	Value
Neuf Cegetel	14,847	$	787,521
SES SA	71,624		1,779,949

			38,438,430

WATER – 7.32%
Suez SA	494,242		31,670,534
Veolia Environnement	166,593		14,888,508

			46,559,042


TOTAL COMMON STOCKS (Cost: $688,437,380)			635,403,243

SHORT-TERM INVESTMENTS – 1.07%

MONEY MARKET FUNDS – 1.07%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	218,401		218,401



BGI Cash Premier Fund LLC 3.63%^c,d,e	6,610,740		6,610,740
BGI Cash Premier Fund LLC 3.63%^c,d,e	6,610,740		6,610,740

			6,829,141


TOTAL SHORT-TERM INVESTMENTS (Cost: $6,829,141)			6,829,141


TOTAL INVESTMENTS IN SECURITIES – 100.95% (Cost: $695,266,521)			642,232,384

Other Assets, Less Liabilities – (0.95)%			(6,066,209	)


NET ASSETS – 100.00%		$	636,166,175

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

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		25

Schedule of Investments (Unaudited)

iSHARES^® MSCI GERMANY INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 95.69%

AIRLINES – 0.48%
Deutsche Lufthansa AG Registered	400,586	$	9,419,928

			9,419,928
APPAREL – 1.35%
Adidas AG	353,995		22,538,548
Puma AG	11,193		4,002,657

			26,541,205

AUTO MANUFACTURERS – 10.94%
Bayerische Motoren Werke AG	287,619		15,797,433
Daimler AG Registered	1,619,060		137,125,961
Volkswagen AG	272,629		62,077,574

			215,000,968

AUTO PARTS & EQUIPMENT – 1.33%
Continental AG	265,243		26,060,504

			26,060,504

BANKS – 7.76%
Commerzbank AG	1,086,476		33,119,534
Deutsche Bank AG	843,548		95,096,630
Deutsche Postbank AG	144,801		14,152,166
Hypo Real Estate Holding AG	349,937		10,061,673

			152,430,003

BIOTECHNOLOGY – 0.18%
QIAGEN NV^a	157,630		3,534,433

			3,534,433

BUILDING MATERIALS – 0.17%
HeidelbergerCement AG	21,160		3,390,582

			3,390,582

CHEMICALS – 11.57%
ALTANA AG	59,764		1,389,949
BASF SE	846,684		107,943,775
Bayer AG	1,250,415		96,526,267
K+S AG	63,958		18,715,963
Wacker Chemie AG	13,284		2,867,869

			227,443,823

COMPUTERS – 0.11%
Wincor Nixdorf AG	27,797		2,223,446

			2,223,446


Security	Shares	Value
COSMETICS & PERSONAL CARE – 0.62%
Beiersdorf AG	152,790	$	12,281,779

			12,281,779

DIVERSIFIED FINANCIAL SERVICES – 2.84%
Deutsche Boerse AG	346,128		55,115,176
MLP AG	53,515		757,167

			55,872,343

ELECTRIC – 14.97%
E.ON AG	1,072,499		202,217,563
RWE AG	759,055		92,035,910

			294,253,473

ENERGY – ALTERNATE SOURCES – 0.68%
Q-Cells AG^a	82,232		6,754,898
SolarWorld AG	142,810		6,547,356

			13,302,254

ENGINEERING & CONSTRUCTION – 2.19%
Bilfinger Berger AG	63,735		5,083,566
Fraport AG	28,856		2,156,584
Hochtief AG	72,743		7,966,503
Linde AG	209,249		27,896,981

			43,103,634

FOOD – 1.27%
METRO AG	281,509		23,705,593
Suedzucker AG	61,020		1,343,200

			25,048,793

HEALTH CARE - PRODUCTS – 0.89%
Fresenius Medical Care AG & Co. KGaA	331,647		17,455,420

			17,455,420

HOLDING COMPANIES - DIVERSIFIED – 0.46%
GEA Group AG^a	274,174		8,986,266

			8,986,266

HOUSEHOLD PRODUCTS & WARES – 0.39%
Henkel KGaA	185,728		7,578,915

			7,578,915

INSURANCE – 10.23%
Allianz SE Registered	772,103		137,725,224
Muenchener Rueckversicherungs- Gesellschaft AG Registered	358,017		63,258,618

			200,983,842


26		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 29, 2008


Security	Shares	Value
IRON & STEEL – 2.47%
Salzgitter AG	70,525	$	12,545,760
ThyssenKrupp AG	622,602		36,058,315

			48,604,075

LEISURE TIME – 0.45%
TUI AG^a,b	363,587		8,776,187

			8,776,187

MACHINERY – DIVERSIFIED – 1.66%
Heidelberger Druckmaschinen AG	97,187		2,375,387
MAN AG	194,251		25,720,519
Rheinmetall AG	63,385		4,446,547

			32,542,453

MANUFACTURING – 9.78%
Siemens AG	1,482,308		192,219,923

			192,219,923

MEDIA – 0.09%
Premiere AG^a	85,102		1,829,378

			1,829,378

PHARMACEUTICALS – 1.15%
Celesio AG	150,613		8,670,241
Merck KGaA	112,452		14,030,933

			22,701,174

REAL ESTATE – 0.29%
IVG Immobilien AG	164,077		5,753,870

			5,753,870

RETAIL – 0.18%
Arcandor AG^a,b	114,502		2,028,544
Douglas Holding AG	26,933		1,435,133

			3,463,677

SEMICONDUCTORS – 0.53%
Infineon Technologies AG^a	1,286,804		10,470,745

			10,470,745

SOFTWARE – 3.69%
SAP AG	1,509,704		72,446,379

			72,446,379

TELECOMMUNICATIONS – 4.67%
Deutsche Telekom AG	4,809,173		91,771,125

			91,771,125


Security	Shares	Value
TRANSPORTATION – 2.30%
Deutsche Post AG	1,355,171	$	45,219,126

			45,219,126


TOTAL COMMON STOCKS (Cost: $1,805,920,645)			1,880,709,723

PREFERRED STOCKS – 4.19%

AUTO MANUFACTURERS – 2.68%
Bayerische Motoren Werke AG	33,577		1,556,723
Porsche Automobil Holding SE	14,992		25,839,151
Volkswagen AG	181,528		25,333,854

			52,729,728

ELECTRIC – 0.35%
RWE AG	67,260		6,784,016

			6,784,016

HEALTH CARE - SERVICES – 0.30%
Fresenius SE	68,734		5,806,804

			5,806,804

HOUSEHOLD PRODUCTS & WARES – 0.70%
Henkel KGaA	312,195		13,843,882

			13,843,882

MEDIA – 0.16%
ProSiebenSat.1 Media AG	145,173		3,142,720

			3,142,720


TOTAL PREFERRED STOCKS (Cost: $75,188,184)			82,307,150

SHORT-TERM INVESTMENTS – 0.30%

MONEY MARKET FUNDS – 0.30%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	196,324		196,324
BGI Cash Premier Fund LLC 3.63%^c,d,e	5,720,936		5,720,936

			5,917,260


TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,917,260)			5,917,260
(Cost: $5,917,260)			5,917,260


SCHEDULES OF INVESTMENTS		27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 29, 2008


	Value

TOTAL INVESTMENTS IN SECURITIES – 100.18% (Cost: $1,887,026,089)	$	1,968,934,133

Other Assets, Less Liabilities – (0.18)%		(3,481,201	)


NET ASSETS – 100.00%	$	1,965,452,932

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See

Note 5.

See notes to financial statements.


28		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI ITALY INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 95.53%

AEROSPACE & DEFENSE – 2.64%
Finmeccanica SpA	350,560	$	10,851,255

			10,851,255

AUTO MANUFACTURERS – 3.09%
Fiat SpA	594,230		12,692,555

			12,692,555

AUTO PARTS & EQUIPMENT – 0.74%
Pirelli & C. SpA^a	3,077,727		3,053,346

			3,053,346

BANKS – 32.71%
Banca Carige SpA	758,594		2,974,063
Banca Monte dei Paschi di Siena SpA^b	982,433		4,481,752
Banca Popolare di Milano Scrl	330,967		3,966,771
Banco Popolare SpA^a	629,403		11,981,929
Intesa Sanpaolo SpA	6,133,813		41,437,250
UniCredito SpA	7,314,166		54,241,259
Unione di Banche Italiane ScpA	647,653		15,288,791

			134,371,815

BUILDING MATERIALS – 0.05%
Italcementi SpA	6,570		134,748
Italcementi SpA RNC	5,035		77,162

			211,910

COMMERCIAL SERVICES – 2.26%
Atlantia SpA	288,633		9,289,284

			9,289,284

DIVERSIFIED FINANCIAL SERVICES – 3.04%
Mediobanca SpA	643,999		12,484,653

			12,484,653

ELECTRIC – 11.41%
A2A SpA	1,975,026		8,035,409
Enel SpA	1,834,107		19,866,393
Terna SpA	4,366,609		18,975,367

			46,877,169

ELECTRICAL COMPONENTS & EQUIPMENT – 0.68%
Prysmian SpA^a	141,260		2,789,953

			2,789,953


Security	Shares	Value
ENTERTAINMENT – 0.50%
Lottomatica SpA	57,088	$	2,074,767

			2,074,767

FOOD – 1.33%
Parmalat SpA	1,421,784		5,444,590

			5,444,590

HEALTH CARE - PRODUCTS – 1.56%
Luxottica Group SpA	230,630		6,410,686

			6,410,686

HOLDING COMPANIES - DIVERSIFIED – 0.25%
IFIL Investments SpA	133,042		1,041,161

			1,041,161

INSURANCE – 8.18%
Assicurazioni Generali SpA	465,670		20,126,400
Fondiaria-Sai SpA	136,640		6,104,759
Mediolanum SpA^b	561,006		3,551,436
Unipol Gruppo Finanziario SpA	1,346,301		3,811,723

			33,594,318

MEDIA – 1.77%
Arnoldo Mondadori Editore SpA	8,404		68,192
Mediaset SpA	791,979		7,183,762

			7,251,954

OIL & GAS – 17.89%
Eni SpA	2,111,622		73,473,575

			73,473,575

OIL & GAS SERVICES – 1.31%
Saipem SpA	130,242		5,364,154

			5,364,154

RETAIL – 0.67%
Autogrill SpA	92,476		1,486,707
Bulgari SpA	113,394		1,273,861

			2,760,568

TELECOMMUNICATIONS – 5.45%
Telecom Italia SpA	8,872,241		22,371,924

			22,371,924


TOTAL COMMON STOCKS (Cost: $404,616,300)			392,409,637


SCHEDULES OF INVESTMENTS		29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 29, 2008


Security	Shares	Value
PREFERRED STOCKS – 4.27%

BANKS – 0.79%
Intesa Sanpaolo SpA RNC	511,638	$	3,268,040

			3,268,040

HOLDING COMPANIES – DIVERSIFIED – 0.09%
Istituto Finanziario Industriale SpA^a	12,467		354,865

			354,865

INSURANCE – 1.36%
Unipol Gruppo Finanziario SpA^b	2,102,999		5,580,600

			5,580,600

TELECOMMUNICATIONS – 2.03%
Telecom Italia SpA RNC	4,282,196		8,327,527

			8,327,527


TOTAL PREFERRED STOCKS
(Cost: $19,895,779)			17,531,032

SHORT-TERM INVESTMENTS – 1.51%

MONEY MARKET FUNDS – 1.51%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	144,078		144,078
BGI Cash Premier Fund LLC 3.63%^c,d,e	6,052,073		6,052,073

			6,196,151


TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,196,151)			6,196,151


TOTAL INVESTMENTS IN SECURITIES – 101.31% (Cost: $430,708,230)			416,136,820

Other Assets, Less Liabilities – (1.31)%			(5,384,464	)


NET ASSETS – 100.00%		$	410,752,356

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See

Note 5.

See notes to financial statements.


30		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.89%

BANKS – 0.65%
SNS REAAL NV	80,846	$	1,717,025

			1,717,025

BEVERAGES – 4.71%
Heineken Holding NV	64,447		3,299,063
Heineken NV	160,130		9,089,260

			12,388,323

BIOTECHNOLOGY – 0.21%
Crucell NV^a	34,322		479,359
Pharming Group NV^a	35,247		67,421

			546,780

BUILDING MATERIALS – 0.20%
Wavin NV	44,727		519,435

			519,435

CHEMICALS – 6.60%
Akzo Nobel NV	168,261		12,439,783
Koninklijke DSM NV	111,174		4,919,740

			17,359,523

COMMERCIAL SERVICES – 2.10%
Brunel International NV	2,527		60,421
Randstad Holding NV^b	43,558		1,670,328
USG People NV	25,470		579,603
Vedior NV	127,220		3,217,590

			5,527,942

DISTRIBUTION & WHOLESALE – 1.46%
Corporate Express NV^b	89,007		1,060,704
Hagemeyer NV^b	379,496		2,776,864

			3,837,568

DIVERSIFIED FINANCIAL SERVICES – 0.18%
BinckBank NV	33,161		430,422
KAS Bank NV	806		31,642

			462,064

ELECTRICAL COMPONENTS & EQUIPMENT – 0.17%
Draka Holding NV	4,950		143,980
TKH Group NV	13,534		292,369

			436,349

ELECTRONICS – 11.29%
Koninklijke Philips Electronics NV	752,972		29,697,395

			29,697,395


Security	Shares	Value
ENGINEERING & CONSTRUCTION – 1.38%
Arcadis NV	7,614	$	470,328
Koninklijke BAM Groep NV	54,797		1,217,031
Koninklijke Boskalis Westminster NV	34,465		1,930,657

			3,618,016

FOOD – 18.68%
CSM NV	31,762		985,092
Koninklijke Ahold NV^a	854,362		11,322,871
Koninklijke Wessanen NV	42,940		578,211
Nutreco Holding NV	17,458		1,248,556
Sligro Food Group NV	7,445		276,001
Super de Boer NV^a	30,696		198,048
Unilever NV	1,108,581		34,550,693

			49,159,472

HOLDING COMPANIES - DIVERSIFIED – 0.52%
Eriks Group NV	4,826		344,338
Imtech NV	33,157		793,793
Kendrion NV^a	1,062		26,118
Ordina NV	14,754		212,781

			1,377,030

HOUSEWARES – 0.10%
Hunter Douglas NV	4,479		261,783

			261,783

INSURANCE – 20.95%
Aegon NV	834,204		12,613,395
ING Groep NV^b	1,258,564		42,511,429

			55,124,824

INVESTMENT COMPANIES – 0.08%
Kardan NV	15,087		212,316

			212,316

MANUFACTURING – 0.53%
Aalberts Industries NV	52,346		1,025,117
Koninklijke Ten Cate NV	11,114		378,443

			1,403,560

MEDIA – 5.75%
Reed Elsevier NV	487,857		9,161,416
Telegraaf Media Groep NV	8,975		325,636
Wolters Kluwer NV	216,628		5,649,866

			15,136,918


SCHEDULES OF INVESTMENTS		31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INDEX FUND

February 29, 2008


Security	Shares	Value
METAL FABRICATE & HARDWARE – 0.33%
Advanced Metallurgical Group NV^a	10,498	$	876,536

			876,536

OFFICE & BUSINESS EQUIPMENT– 0.45%
Oce NV^b	63,597		1,185,592

			1,185,592

OIL & GAS SERVICES – 2.46%
Fugro NV CVA	41,207		3,137,201
SBM Offshore NV	102,434		3,327,808

			6,465,009

PHARMACEUTICALS – 0.29%
OPG Groep NV	25,446		764,866

			764,866

REAL ESTATE INVESTMENT TRUSTS – 2.97%
Corio NV	39,410		3,676,450
Eurocommercial Properties NV	7,689		426,870
VastNed Offices/Industrial NV	4,934		157,521
VastNed Retail NV	6,986		717,034
Wereldhave NV	23,333		2,839,414

			7,817,289

RETAIL – 0.12%
Beter Bed Holding NV	7,083		166,882
Macintosh Retail Group NV	5,489		154,158

			321,040

SEMICONDUCTORS – 2.73%
ASM International NV	16,136		318,449
ASML Holding NV^a	281,382		6,873,101

			7,191,550

SOFTWARE – 1.41%
Exact Holding NV	5,422		223,887
Tele Atlas NV^a	30,720		1,310,472
TomTom NV^a	41,737		1,976,861
Unit 4 Agresso NV	6,731		188,937

			3,700,157

TELECOMMUNICATIONS – 8.80%
Koninklijke KPN NV	1,217,781		23,145,891

			23,145,891


Security	Shares	Value
TEXTILES – 0.02%
Gamma Holding NV	865	$	57,779

			57,779

TRANSPORTATION – 4.75%
Royal Vopak NV	9,570		501,514
Smit Internationale NV	5,729		537,661
TNT NV	288,994		11,455,026

			12,494,201


TOTAL COMMON STOCKS (Cost: $269,433,897)			262,806,233

SHORT-TERM INVESTMENTS – 2.15%

MONEY MARKET FUNDS – 2.15%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	91,050		91,050
BGI Cash Premier Fund LLC 3.63%^c,d,e	5,565,712		5,565,712

			5,656,762


TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,656,762)			5,656,762


TOTAL INVESTMENTS IN SECURITIES – 102.04%
(Cost: $275,090,659)			268,462,995

Other Assets, Less Liabilities – (2.04)%			(5,355,811	)


NET ASSETS – 100.00%		$	263,107,184

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


32		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SPAIN INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.90%

AIRLINES – 0.32%
Iberia Lineas Aereas de Espana SA	507,305	$	1,840,633

			1,840,633

BANKS – 35.58%
Banco Bilbao Vizcaya Argentaria SA	2,794,636		58,377,308
Banco Popular Espanol SA^a	1,859,720		29,389,938
Banco Sabadell SA^a	1,174,398		10,875,407
Banco Santander SA	5,640,072		102,146,966
Bankinter SA^a	400,037		5,957,575

			206,747,194

BIOTECHNOLOGY – 0.14%
Zeltia SA	123,248		826,994

			826,994

COMMERCIAL SERVICES – 3.65%
Abertis Infraestructuras SA^a	535,502		17,023,081
Cintra Concesiones de Infraestructuras de Transporte SA^a	259,619		4,154,105

			21,177,186

COMPUTERS – 1.14%
Indra Sistemas SA	236,148		6,610,671

			6,610,671

DIVERSIFIED FINANCIAL SERVICES – 0.78%
Criteria CaixaCorp SA	653,075		4,520,935

			4,520,935

ELECTRIC – 10.35%
Iberdrola SA	1,918,670		27,962,236
Red Electrica de Espana SA	221,018		13,880,770
Union Fenosa SA	276,479		18,320,899

			60,163,905

ENERGY - ALTERNATE SOURCES – 1.77%
Gamesa Corporacion Tecnologica SA	249,213		10,271,666

			10,271,666


Security	Shares	Value
ENGINEERING & CONSTRUCTION – 6.80%
Acciona SA	50,319	$	12,909,787
Actividades de Construcciones y Servicios SA^a	330,910		17,039,864
Fomento de Construcciones y Contratas SA^a	54,011		3,286,324
Grupo Ferrovial SA^a	6,486		4,390,559
SacyrVallehermoso SA^a	62,235		1,908,475

			39,535,009

GAS – 4.96%
Enagas SA	230,696		6,986,881
Gas Natural SDG SA	357,790		21,829,641

			28,816,522

INSURANCE – 2.39%
Mapfre SA	3,059,654		13,888,134

			13,888,134

IRON & STEEL – 0.68%
Acerinox SA	157,105		3,973,428

			3,973,428

MACHINERY – 0.60%
Zardoya Otis SA^a	137,759		3,456,951

			3,456,951

MEDIA – 1.73%
Antena 3 de Television SA	41,375		573,468
Gestevision Telecinco SA^a	207,523		4,454,675
Promotora de Informaciones SA^a	179,189		2,510,808
Sogecable SA^a,b	59,615		2,510,512

			10,049,463

OIL & GAS – 4.92%
Repsol YPF SA	824,082		28,586,239

			28,586,239

RETAIL – 2.71%
Industria de Diseno Textil SA	301,910		15,743,621

			15,743,621

TELECOMMUNICATIONS – 21.38%
Telefonica SA	4,253,606		124,240,362

			124,240,362


TOTAL COMMON STOCKS (Cost: $638,473,715)			580,448,913


SCHEDULES OF INVESTMENTS		33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 29, 2008


Security	Shares	Value
SHORT-TERM INVESTMENTS – 10.32%

MONEY MARKET FUNDS – 10.32%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	386,598	$	386,598
BGI Cash Premier Fund LLC 3.63%^c,d,e	59,614,404		59,614,404

			60,001,002


TOTAL SHORT-TERM INVESTMENTS (Cost: $60,001,002)			60,001,002


TOTAL INVESTMENTS IN SECURITIES – 110.22% (Cost: $698,474,717)			640,449,915

Other Assets, Less Liabilities – (10.22)%			(59,399,061	)


NET ASSETS – 100.00%		$	581,050,854

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

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


34		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWEDEN INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.85%

AGRICULTURE – 2.08%
Swedish Match AB	232,193	$	5,456,812

			5,456,812

AUTO MANUFACTURERS – 2.93%
Scania AB Class B	314,665		7,675,502

			7,675,502

BANKS – 20.48%
Nordea Bank AB	1,795,595		27,239,938
Skandinaviska Enskilda Banken AB Class A	401,238		10,112,402
Svenska Handelsbanken AB Class A	426,064		11,981,086
Swedbank AB Class A	156,722		4,280,079

			53,613,505

COMMERCIAL SERVICES – 1.59%
Securitas AB Class B	273,082		3,308,462
Securitas Direct AB Class B^a	115,155		492,730
Securitas Systems AB Class B	142,240		368,862

			4,170,054

COSMETICS & PERSONAL CARE – 0.46%
Oriflame Cosmetics SA SDR	17,843		1,197,264

			1,197,264

DIVERSIFIED FINANCIAL SERVICES – 0.16%
D. Carnegie & Co. AB	23,424		405,276

			405,276

ENGINEERING & CONSTRUCTION – 2.42%
Skanska AB Class B	325,844		6,337,425

			6,337,425

FOOD – 0.17%
Axfood AB	12,960		452,662

			452,662

FOREST PRODUCTS & PAPER – 3.78%
Billerud AB	18,907		215,274
Holmen AB Class B	46,135		1,596,432
Svenska Cellulosa AB Class B	488,096		8,069,141

			9,880,847

HAND & MACHINE TOOLS – 5.06%
Sandvik AB	773,964		13,234,121

			13,234,121


Security	Shares	Value

HEALTH CARE - PRODUCTS – 1.70%
Elekta AB Class B	37,215	$	683,090
Getinge AB Class B	147,576		3,779,155

			4,462,245

HOME FURNISHINGS – 1.58%
Electrolux AB Class B	220,155		3,568,210
Nobia AB	65,257		557,919

			4,126,129

HOUSEHOLD PRODUCTS & WARES – 0.99%
Husqvarna AB	235,707		2,588,235

			2,588,235

INVESTMENT COMPANIES – 1.62%
Investor AB Class B	198,706		4,243,102

			4,243,102

IRON & STEEL – 2.41%
SSAB Svenskt Stal AB Class A	156,785		4,446,972
SSAB Svenskt Stal AB Class B	72,600		1,870,922

			6,317,894

MACHINERY – 13.11%
Atlas Copco AB Class A	581,042		9,134,844
Atlas Copco AB Class B	343,773		4,944,951
Volvo AB Class A	409,121		6,117,022
Volvo AB Class B	939,983		14,130,443

			34,327,260

MANUFACTURING – 1.98%
Alfa Laval AB	82,913		4,508,551
Trelleborg AB Class B	37,333		674,667

			5,183,218

MEDIA – 1.34%
Eniro AB	71,907		545,430
Modern Times Group MTG AB Class B	44,867		2,948,762

			3,494,192

METAL FABRICATE & HARDWARE – 4.50%
Assa Abloy AB Class B^b	272,058		4,927,548
Hoganas AB Class B	10,923		234,574
SKF AB Class B	356,069		6,622,298

			11,784,420

MINING – 1.11%
Boliden AB	251,800		2,897,583

			2,897,583


SCHEDULES OF INVESTMENTS		35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 29, 2008


Security	Shares	Value

OIL & GAS – 1.03%
Lundin Petroleum AB^a	203,854	$	2,684,507

			2,684,507

REAL ESTATE – 0.93%
Castellum AB	67,477		833,907
Fabege AB	56,672		626,893
Kungsleden AB	59,428		710,354
Wihlborgs Fastigheter AB	12,489		267,698

			2,438,852

RETAIL – 8.87%
Hennes & Mauritz AB Class B	410,246		23,205,539

			23,205,539

TELECOMMUNICATIONS – 19.55%
Millicom International Cellular SA SDR^a	28,322		3,130,619
Tele2 AB Class B	265,098		4,694,072
Telefonaktiebolaget LM Ericsson AB Class B	12,810,272		27,821,787
TeliaSonera AB	1,940,300		15,535,231

			51,181,709


TOTAL COMMON STOCKS (Cost: $307,592,211)			261,358,353

RIGHTS – 0.02%

HEALTH CARE - PRODUCTS – 0.02%
Getinge AB^c	145,359		55,954

			55,954


TOTAL RIGHTS (Cost: $ 0)			55,954


Security	Shares	Value
SHORT-TERM INVESTMENTS – 1.77%

MONEY MARKET FUNDS – 1.77%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^d,e	101,725	$	101,725
BGI Cash Premier Fund LLC 3.63%^d,e,f	4,519,500		4,519,500

			4,621,225


TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,621,225)			4,621,225


TOTAL INVESTMENTS IN SECURITIES – 101.64% (Cost: $312,213,436)			266,035,532

Other Assets, Less Liabilities – (1.64)%			(4,284,772	)


NET ASSETS – 100.00%		$	261,750,760

SDR – Swedish Depositary Receipts

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Note 2.

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

^f	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


36		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 29, 2008


Security	Shares	Value

COMMON STOCKS – 99.45%

BANKS – 6.15%
Banque Cantonale Vaudoise Registered	1,712	$	885,687
Credit Suisse Group Registered	418,162		20,831,983
EFG International Registered	37,848		1,276,346
Julius Baer Holding AG Registered	71,681		5,335,901
Vontobel Holding AG Registered	44,391		1,577,799

			29,907,716

BUILDING MATERIALS – 3.52%
Geberit AG Registered	21,474		3,168,228
Holcim Ltd. Registered	136,064		13,947,929

			17,116,157

CHEMICALS – 6.33%
Ciba Specialty Chemicals AG Registered	25,244		1,015,274
Givaudan SA Registered	6,933		6,967,539
Lonza Group AG Registered	23,439		3,098,852
Syngenta AG Registered	68,617		19,704,872

			30,786,537

COMMERCIAL SERVICES – 1.83%
Adecco SA Registered	70,126		3,688,367
SGS SA Registered	3,862		5,216,919

			8,905,286

COMPUTERS – 0.48%
Logitech International SA Registered^a	91,122		2,350,071

			2,350,071

DIVERSIFIED FINANCIAL SERVICES – 5.56%
UBS AG Registered	821,729		27,049,826

			27,049,826

ENGINEERING & CONSTRUCTION – 4.87%
ABB Ltd. Registered	929,784		23,712,253

			23,712,253

FOOD – 18.49%
Lindt & Sprungli AG Participation Certificates	456		1,519,854
Nestle SA Registered	184,796		88,432,269

			89,952,123


Security	Shares	Value

HAND & MACHINE TOOLS – 0.61%
Schindler Holding AG Participation Certificates	34,303	$	2,354,675
Schindler Holding AG Registered	9,193		626,195

			2,980,870

HEALTH CARE - PRODUCTS – 5.17%
Nobel Biocare Holding AG Bearer	23,575		5,725,486
Sonova Holding AG Registered	49,460		4,702,917
Straumann Holding AG Registered	12,022		3,530,124
Synthes Inc.	79,573		11,183,521

			25,142,048

INSURANCE – 9.97%
Swiss Life Holding Registered^a	20,097		5,058,907
Swiss Reinsurance Co. Registered	244,341		19,686,796
Zurich Financial Services AG Registered	75,529		23,752,054

			48,497,757

INVESTMENT COMPANIES – 0.36%
Pargesa Holding SA Class B	17,328		1,776,294

			1,776,294

LEISURE TIME – 0.01%
Kuoni Reisen Holding AG Registered	55		25,780

			25,780

MACHINERY – 0.08%
Rieter Holding AG Registered	1,007		408,328

			408,328

MANUFACTURING – 0.37%
Sulzer AG Registered	1,554		1,792,504

			1,792,504

PHARMACEUTICALS – 24.80%
Actelion Ltd. Registered^a	59,888		3,129,805
Novartis AG Registered	1,001,745		49,377,065
Roche Holding AG Genusschein	347,095		68,135,433

			120,642,303

REAL ESTATE – 0.68%
PSP Swiss Property AG Registered^a	53,836		3,306,081

			3,306,081


SCHEDULES OF INVESTMENTS		37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 29, 2008


Security	Shares	Value

RETAIL – 6.42%
Compagnie Financiere Richemont SA A Units Bearer	327,734	$	19,090,082
Swatch Group AG (The) Bearer	25,622		7,572,703
Swatch Group AG (The) Registered	79,592		4,563,692

			31,226,477

SEMICONDUCTORS – 0.24%
OC Oerlikon Corp. AG Registered^a	3,591		1,168,847

			1,168,847

TELECOMMUNICATIONS – 2.76%
Swisscom AG Registered	35,193		13,427,488

			13,427,488

TRANSPORTATION – 0.75%
Kuehne & Nagel International AG Registered	37,615		3,661,318

			3,661,318


TOTAL COMMON STOCKS
(Cost: $438,703,249)			483,836,064

SHORT-TERM INVESTMENTS – 0.02%

MONEY MARKET FUNDS – 0.02%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^b,c	111,806		111,806

			111,806


TOTAL SHORT-TERM INVESTMENTS
(Cost: $111,806)			111,806


TOTAL INVESTMENTS IN SECURITIES – 99.47%
(Cost: $438,815,055)			483,947,870

Other Assets, Less Liabilities – 0.53%			2,578,728


NET ASSETS – 100.00%		$	486,526,598

^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.


38		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 29, 2008


Security	Shares	Value

COMMON STOCKS – 99.52%

ADVERTISING – 0.48%
WPP Group PLC	463,976	$	5,505,343

			5,505,343

AEROSPACE & DEFENSE – 2.05%
BAE Systems PLC	1,432,890		13,759,846
BBA Aviation PLC	84,122		308,734
Cobham PLC	455,308		1,652,900
Meggitt PLC	260,760		1,449,777
Rolls-Royce Group PLC^a	739,683		6,393,135

			23,564,392

AGRICULTURE – 3.16%
British American Tobacco PLC	623,007		23,484,461
Imperial Tobacco Group PLC	276,138		12,853,473

			36,337,934

AIRLINES – 0.10%
British Airways PLC^a	235,299		1,205,246

			1,205,246

APPAREL – 0.13%
Burberry Group PLC	174,994		1,466,363

			1,466,363

AUTO PARTS & EQUIPMENT – 0.13%
GKN PLC	284,242		1,498,348

			1,498,348

BANKS – 15.67%
Alliance & Leicester PLC	80,649		904,006
Barclays PLC^b	2,729,016		25,907,796
HBOS PLC	1,522,152		18,273,164
HSBC Holdings PLC	4,831,893		73,624,868
Lloyds TSB Group PLC	2,302,020		20,766,573
Royal Bank of Scotland Group PLC	4,077,360		31,226,135
Standard Chartered PLC	286,317		9,534,129

			180,236,671

BEVERAGES – 3.02%
Diageo PLC	1,066,408		21,934,230
SABMiller PLC	366,559		7,678,046
Scottish & Newcastle PLC	325,990		5,116,344

			34,728,620


Security	Shares	Value

BUILDING MATERIALS – 0.09%
Travis Perkins PLC	47,637	$	1,027,193

			1,027,193

CHEMICALS – 0.29%
Johnson Matthey PLC	87,085		3,371,046

			3,371,046

COMMERCIAL SERVICES – 1.49%
Aggreko PLC	64,206		752,901
Bunzl PLC	130,908		1,816,305
Capita Group PLC	240,635		3,140,083
Davis Service Group PLC (The)	42,115		420,132
De La Rue PLC	33,669		606,453
Experian Group Ltd.	415,421		3,520,274
G4S PLC	463,613		2,017,354
Hays PLC	583,200		1,264,511
Intertek Group PLC	35,235		630,104
Rank Group PLC	78,449		141,226
Rentokil Initial PLC	722,923		1,199,324
Serco Group PLC	193,803		1,680,836

			17,189,503

COMPUTERS – 0.10%
LogicaCMG PLC	600,039		1,113,030

			1,113,030

DISTRIBUTION & WHOLESALE – 0.42%
Inchcape PLC	184,803		1,443,789
Wolseley PLC	273,943		3,386,724

			4,830,513

DIVERSIFIED FINANCIAL SERVICES – 1.78%
Cattles PLC	73,722		343,156
Close Brothers Group PLC	28,188		369,512
ICAP PLC	209,133		2,627,087
Investec PLC	164,127		1,207,981
London Stock Exchange
Group PLC	62,640		1,693,361
Man Group PLC	698,697		7,713,657
Old Mutual PLC	2,120,584		5,285,487
Schroders PLC	43,869		836,427
Tullett Prebon PLC	39,539		397,187

			20,473,855


SCHEDULES OF INVESTMENTS		39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 29, 2008


Security	Shares	Value

ELECTRIC – 3.06%
British Energy Group PLC	420,732	$	4,732,783
International Power PLC	608,618		4,603,546
National Grid PLC	1,061,675		15,490,668
Scottish & Southern Energy PLC	351,736		10,334,174

			35,161,171

ELECTRONICS – 0.05%
Electrocomponents PLC	89,005		312,934
Premier Farnell PLC	73,602		219,614

			532,548

ENGINEERING & CONSTRUCTION – 0.33%
AMEC PLC	139,635		2,152,655
Balfour Beatty PLC	179,568		1,593,990

			3,746,645

ENTERTAINMENT – 0.24%
Ladbrokes PLC	256,563		1,552,755
PartyGaming PLC^a	243,719		127,262
William Hill PLC	145,328		1,089,856

			2,769,873

ENVIRONMENTAL CONTROL – 0.05%
Biffa PLC	78,644		542,451

			542,451

FOOD – 5.34%
Cadbury Schweppes PLC	852,833		9,551,044
J Sainsbury PLC	634,123		4,481,115
Tate & Lyle PLC	196,272		2,049,727
Tesco PLC	3,199,323		25,488,194
Unilever PLC	534,528		16,969,998
Wm Morrison
Supermarkets PLC	487,644		2,885,814

			61,425,892

FOOD SERVICE – 0.55%
Associated British Foods PLC	73,341		1,237,876
Compass Group PLC	781,173		5,073,514

			6,311,390

FOREST PRODUCTS & PAPER – 0.10%
Mondi PLC	151,291		1,176,707

			1,176,707

GAS – 0.84%
Centrica PLC	1,494,469		9,602,137

			9,602,137


Security	Shares	Value

HEALTH CARE – PRODUCTS – 0.45%
Smith & Nephew PLC	368,716	$	4,807,764
SSL International PLC	43,587		423,762

			5,231,526

HOLDING COMPANIES - DIVERSIFIED – 0.11%
Tomkins PLC	358,683		1,212,937

			1,212,937

HOME BUILDERS – 0.45%
Barratt Developments PLC	118,348		965,213
Berkeley Group Holdings PLC (The)^a	34,191		710,053
Bovis Homes Group PLC	24,534		284,522
Persimmon PLC	116,667		1,710,385
TaylorWimpey PLC	438,480		1,501,098

			5,171,271

HOME FURNISHINGS – 0.02%
Galiform PLC^a	116,877		191,224

			191,224

HOUSEHOLD PRODUCTS & WARES – 1.17%
Reckitt Benckiser PLC	247,689		13,450,791

			13,450,791

INSURANCE – 3.90%
Aviva PLC	1,064,880		12,953,156
Friends Provident PLC	754,458		2,003,525
Legal & General Group PLC	2,644,006		6,553,283
Prudential PLC	1,006,155		12,218,813
Resolution PLC	277,453		3,808,176
Royal & Sun Alliance Insurance Group PLC	1,310,674		3,441,494
Standard Life PLC	881,746		3,841,192

			44,819,639

LEISURE TIME – 0.44%
Carnival PLC	68,121		2,711,481
Thomas Cook Group PLC^a	194,516		1,186,912
TUI Travel PLC^a	223,537		1,201,693

			5,100,086

LODGING – 0.16%
InterContinental Hotels Group PLC	121,905		1,870,837

			1,870,837


40		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 29, 2008


Security	Shares	Value

MANUFACTURING – 0.62%
Charter PLC^a	35,413	$	582,568
Cookson Group PLC	47,241		561,012
FKI PLC	120,321		175,318
IMI PLC	136,242		1,052,884
Invensys PLC^a	325,989		1,668,156
Smiths Group PLC	155,504		3,073,179

			7,113,117

MEDIA – 2.49%
British Sky Broadcasting Group PLC	459,487		5,191,586
Daily Mail & General Trust PLC Class A	121,968		1,136,669
Emap PLC	85,887		1,578,621
ITV PLC	1,384,344		1,845,004
Pearson PLC	325,421		4,311,201
Reed Elsevier PLC	446,516		5,657,895
Reuters Group PLC	518,085		6,157,684
Trinity Mirror PLC	60,166		341,094
United Business Media PLC	100,177		1,068,098
Yell Group PLC	319,561		1,393,708

			28,681,560

MINING – 12.20%
Anglo American PLC	541,575		34,839,914
Antofagasta PLC	79,083		1,278,159
BHP Billiton PLC	925,506		30,008,570
Eurasian Natural Resources Corp.	129,456		2,652,393
Kazakhmys PLC	43,075		1,324,687
Lonmin PLC	31,858		2,095,710
Rio Tinto PLC	408,726		46,505,760
Vedanta Resources PLC	28,720		1,254,571
Xstrata PLC	258,390		20,353,980

			140,313,744

OIL & GAS – 18.57%
BG Group PLC	1,381,995		32,768,848
BP PLC	7,765,011		84,336,034
Royal Dutch Shell PLC Class A	1,472,040		52,941,530
Royal Dutch Shell PLC Class B	1,126,476		39,908,400
Tullow Oil PLC	290,298		3,623,566

			213,578,378


Security	Shares	Value

PACKAGING & CONTAINERS – 0.20%
Rexam PLC	265,570	$	2,331,000

			2,331,000

PHARMACEUTICALS – 6.47%
AstraZeneca PLC	598,734		22,545,662
GlaxoSmithKline PLC	2,264,436		49,638,665
Shire PLC	112,517		2,215,806

			74,400,133

REAL ESTATE – 1.34%
British Land Co. PLC	210,627		3,986,587
Brixton PLC	56,376		367,269
Great Portland Estates PLC	44,063		438,251
Hammerson PLC	119,565		2,628,118
Land Securities Group PLC	191,313		6,012,845
Liberty International PLC	104,437		2,001,633

			15,434,703

REAL ESTATE INVESTMENT TRUSTS – 0.16%
SEGRO PLC	180,386		1,858,708

			1,858,708

RETAIL – 1.95%
Carphone Warehouse Group PLC (The)	161,338		986,068
DSG International PLC	746,460		942,885
Enterprise Inns PLC	212,837		1,761,241
Home Retail Group PLC	358,220		1,845,559
Kesa Electricals PLC	217,413		929,827
Kingfisher PLC	976,001		2,545,256
Marks & Spencer Group PLC	692,368		5,546,908
Mitchells & Butlers PLC	165,876		1,469,974
Next PLC	85,759		2,198,928
Punch Taverns PLC	110,097		1,413,677
Signet Group PLC	706,197		860,420
Whitbread PLC	77,517		1,952,132

			22,452,875

SEMICONDUCTORS – 0.10%
ARM Holdings PLC	526,611		950,638
CSR PLC^a	26,991		171,541

			1,122,179

SOFTWARE – 0.21%
Misys PLC	99,084		294,661
Sage Group PLC	527,502		2,072,381

			2,367,042


SCHEDULES OF INVESTMENTS		41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 29, 2008


Security	Shares	Value

TELECOMMUNICATIONS – 7.73%
BT Group PLC	3,293,300	$	14,870,843
Cable & Wireless PLC	999,291		3,514,412
Vodafone Group PLC	21,771,837		70,462,992

			88,848,247

TRANSPORTATION – 0.43%
Arriva PLC	45,675		620,551
FirstGroup PLC	175,035		2,015,960
National Express Group PLC	53,244		1,203,171
Stagecoach Group PLC	215,951		1,080,368
Stagecoach Group PLC Class C Deferred^c	303,597		60

			4,920,110

VENTURE CAPITAL – 0.22%
3i Group PLC	157,993		2,570,808

			2,570,808

WATER – 0.66%
Severn Trent PLC	95,112		2,688,486
United Utilities PLC	359,705		4,958,590

			7,647,076


TOTAL COMMON STOCKS
(Cost: $1,083,361,395)			1,144,504,862

SHORT-TERM INVESTMENTS – 0.01%

MONEY MARKET FUNDS – 0.01%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^b,d	113,277		113,277

			113,277


TOTAL SHORT-TERM INVESTMENTS
(Cost: $113,277)			113,277


TOTAL INVESTMENTS IN SECURITIES – 99.53%
(Cost: $1,083,474,672)			1,144,618,139

Other Assets, Less Liabilities – 0.47%			5,379,777


NET ASSETS – 100.00%		$	1,149,997,916

^a	Non-income earning security.

^b	Affiliated issuer. See Note 2.

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

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

See notes to financial statements.


42		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 29, 2008


	iShares MSCI
	Austria Index Fund			Belgium Index Fund			EMU Index Fund		France Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	334,229,488		$	301,060,717		$	2,417,120,972	$	688,437,380
Affiliated issuers (Note 2)		4,382,813			63,007			59,045,391		6,829,141

Total cost of investments	$	338,612,301		$	301,123,724		$	2,476,166,363	$	695,266,521

Investments in securities, at value (including securities on loan^a) (Note 1):
Unaffiliated issuers	$	296,422,412		$	293,161,944		$	2,774,128,532	$	635,403,243
Affiliated issuers (Note 2)		4,382,813			63,007			59,045,391		6,829,141

Total value of investments		300,805,225			293,224,951			2,833,173,923		642,232,384
Foreign currencies, at value^b		86,787			123,444			5,796,842		3,335,368
Receivables:
Investment securities sold		172,556			5,186,289			12,733,404		2,387,839
Due from custodian (Note 4)		–			–			–		334,940
Dividends and interest		2,201,896			256,208			1,168,985		14,178
Capital shares sold		–			–			–		352,830

Total Assets		303,266,464			298,790,892			2,852,873,154		648,657,539


LIABILITIES
Payables:
Investment securities purchased		–			4,527,608			15,440,689		5,652,539
Collateral for securities on loan (Note 5)		4,363,538			–			57,759,398		6,610,740
Capital shares redeemed		4,967			19,019			–		–
Investment advisory fees (Note 2)		135,518			116,423			1,114,515		228,085

Total Liabilities		4,504,023			4,663,050			74,314,602		12,491,364


NET ASSETS	$	298,762,441		$	294,127,842		$	2,778,558,552	$	636,166,175

Net assets consist of:
Paid-in capital	$	336,280,624		$	304,468,848		$	2,327,761,052	$	675,644,719
Undistributed (distributions in excess of) net investment income (accumulated net investment loss)		(946,667	)		(2,618,493	)		284,282		(262,473	)
Undistributed net realized gain		948,945			118,377			93,307,518		13,760,985
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		(37,520,461	)		(7,840,890	)		357,205,700		(52,977,056	)

NET ASSETS	$	298,762,441		$	294,127,842		$	2,778,558,552	$	636,166,175


Shares outstanding^c		8,900,000			12,880,000			25,900,000		18,600,000


Net asset value per share	$	33.57		$	22.84		$	107.28	$	34.20

^a	Securities on loan with market values of $4,148,090, $-, $54,972,868 and $6,500,592, respectively. See Note 5.

^b	Cost of foreign currencies: $86,773, $118,872, $5,641,710 and $3,263,940, respectively.

^c	$0.001 par value, number of shares authorized: 19.8 million, 136.2 million, 500 million and 340.2 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS		43

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 29, 2008


	iShares MSCI
	Germany Index Fund			Italy Index Fund			Netherlands Index Fund			Spain Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	1,881,108,829		$	424,512,079		$	269,433,897		$	638,473,715
Affiliated issuers (Note 2)		5,917,260			6,196,151			5,656,762			60,001,002

Total cost of investments	$	1,887,026,089		$	430,708,230		$	275,090,659		$	698,474,717

Investments in securities, at value (including securities on loan^a) (Note 1):
Unaffiliated issuers	$	1,963,016,873		$	409,940,669		$	262,806,233		$	580,448,913
Affiliated issuers (Note 2)		5,917,260			6,196,151			5,656,762			60,001,002

Total value of investments		1,968,934,133			416,136,820			268,462,995			640,449,915
Foreign currencies, at value^b		2,563,055			359,931			170,277			232,334
Receivables:
Investment securities sold		3,407,100			10,546,965			2,483,517			10,993,809
Dividends and interest		359,245			84,227			4,451			196,245
Capital shares sold		13,891			513,989			–			37,886

Total Assets		1,975,277,424			427,641,932			271,121,240			651,910,189


LIABILITIES
Payables:
Investment securities purchased		3,328,608			10,719,571			2,345,750			10,973,667
Collateral for securities on loan (Note 5)		5,720,936			6,052,073			5,565,712			59,614,404
Capital shares redeemed		–			–			–			14,241
Investment advisory fees (Note 2)		774,948			117,932			102,594			257,023

Total Liabilities		9,824,492			16,889,576			8,014,056			70,859,335


NET ASSETS	$	1,965,452,932		$	410,752,356		$	263,107,184		$	581,050,854


Net assets consist of:
Paid-in capital	$	1,839,163,898		$	435,347,783		$	266,660,608		$	587,280,674
Undistributed (distributions in excess of) net investment income (accumulated net investment loss)		(1,000,730	)		(149,325	)		1,209,359			3,724,279
Undistributed net realized gain (accumulated net realized loss)		45,297,027			(9,907,574	)		1,858,246			48,060,765
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		81,992,737			(14,538,528	)		(6,621,029	)		(58,014,864	)

NET ASSETS	$	1,965,452,932		$	410,752,356		$	263,107,184		$	581,050,854


Shares outstanding^c		63,000,000			13,650,000			9,600,000			9,975,000


Net asset value per share	$	31.20		$	30.09		$	27.41		$	58.25

^a	Securities on loan with market values of $5,443,193, $5,752,041, $5,312,181 and $56,785,956, respectively. See Note 5.

^b	Cost of foreign currencies: $2,489,771, $356,473, $163,665 and $224,787, respectively.

^c	$0.001 par value, number of shares authorized: 382.2 million, 63.6 million, 255 million and 127.8 million, respectively.

See notes to financial statements.


44		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 29, 2008


	iShares MSCI
	Sweden Index Fund			Switzerland Index Fund		United Kingdom Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	307,592,211		$	438,703,249	$	1,052,849,497
Affiliated issuers (Note 2)		4,621,225			111,806		30,625,175

Total cost of investments	$	312,213,436		$	438,815,055	$	1,083,474,672

Investments in securities, at value (including securities on loan^a) (Note 1):
Unaffiliated issuers	$	261,414,307		$	483,836,064	$	1,118,597,066
Affiliated issuers (Note 2)		4,621,225			111,806		26,021,073

Total value of investments		266,035,532			483,947,870		1,144,618,139
Foreign currencies, at value^b		171,421			316,543		1,036,192
Receivables:
Investment securities sold		1,221,447			2,473,979		3,608,327
Dividends and interest		3,068			2,385,526		4,618,235
Capital shares sold		–			80,389		–

Total Assets		267,431,468			489,204,307		1,153,880,893


LIABILITIES
Payables:
Investment securities purchased		1,057,330			2,477,379		3,415,884
Collateral for securities on loan (Note 5)		4,519,500			–		–
Capital shares redeemed		–			20,097		–
Investment advisory fees (Note 2)		103,878			180,233		467,093

Total Liabilities		5,680,708			2,677,709		3,882,977


NET ASSETS	$	261,750,760		$	486,526,598	$	1,149,997,916


Net assets consist of:
Paid-in capital	$	293,023,575		$	432,602,134	$	1,084,579,171
Undistributed net investment income (accumulated net investment loss)		(1,079,764	)		755,448		4,845,902
Undistributed net realized gain (accumulated net realized loss)		15,977,276			7,861,931		(662,604	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		(46,170,327	)		45,307,085		61,235,447

NET ASSETS	$	261,750,760		$	486,526,598	$	1,149,997,916


Shares outstanding^c		8,925,000			19,000,000		52,200,000


Net asset value per share	$	29.33		$	25.61	$	22.03

^a	Securities on loan with market values of $4,157,547, $- and $-, respectively. See Note 5.

^b	Cost of foreign currencies: $164,120, $300,030 and $1,014,522, respectively.

^c	$0.001 par value, number of shares authorized: 63.6 million, 318.625 million and 943.2 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS		45

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 29, 2008


	iShares MSCI
	Austria Index Fund			Belgium Index Fund			EMU Index Fund			France Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuers^a	$	623,613		$	544,560		$	15,713,088		$	1,552,970
Interest from affiliated issuers (Note 2)		8,021			14,195			71,375			9,437
Securities lending income from affiliated issuers (Note 2)		37,278			24,778			233,455			7,415

Total investment income		668,912			583,533			16,017,918			1,569,822


EXPENSES
Investment advisory fees (Note 2)		960,669			783,794			7,429,773			1,343,904

Total expenses		960,669			783,794			7,429,773			1,343,904

Net investment income (loss)		(291,757	)		(200,261	)		8,588,145			225,918


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(12,474,590	)		(3,206,475	)		(15,625,939	)		(5,602,964	)
In-kind redemptions		30,799,064			6,046,533			122,278,029			26,655,977
Foreign currency transactions		18,332			47,816			962,668			61,062

Net realized gain		18,342,806			2,887,874			107,614,758			21,114,075

Net change in unrealized appreciation (depreciation) on:
Investments		(44,841,173	)		(34,592,818	)		(194,006,510	)		(60,669,252	)
Translation of assets and liabilities in foreign currencies		220,505			53,604			177,218			52,260

Net change in unrealized appreciation (depreciation)		(44,620,668	)		(34,539,214	)		(193,829,292	)		(60,616,992	)

Net realized and unrealized loss		(26,277,862	)		(31,651,340	)		(86,214,534	)		(39,502,917	)


NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(26,569,619	)	$	(31,851,601	)	$	(77,626,389	)	$	(39,276,999	)

^a	Net of foreign withholding tax of $110,049, $96,099, $2,516,251 and $266,270, respectively.

See notes to financial statements.


46		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 29, 2008


	iShares MSCI
	Germany Index Fund			Italy Index Fund			Netherlands Index Fund			Spain Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuers^a	$	4,205,577		$	1,272,843		$	2,513,302		$	8,174,335
Interest from affiliated issuers (Note 2)		36,865			8,143			12,806			22,883
Securities lending income from affiliated issuers (Note 2)		24,050			16,621			16,663			384,188

Total investment income		4,266,492			1,297,607			2,542,771			8,581,406


EXPENSES
Investment advisory fees (Note 2)		4,752,271			495,198			658,238			1,592,542

Total expenses		4,752,271			495,198			658,238			1,592,542

Net investment income (loss)		(485,779	)		802,409			1,884,533			6,988,864


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(7,381,266	)		(4,457,245	)		(7,299,257	)		(3,721,657	)
In-kind redemptions		91,462,936			1,114,346			18,813,373			56,182,035
Foreign currency transactions		273,952			25,464			629			43,264

Net realized gain (loss)		84,355,622			(3,317,435	)		11,514,745			52,503,642

Net change in unrealized appreciation (depreciation) on:
Investments		(130,915,409	)		(4,387,224	)		(24,390,160	)		(79,361,790	)
Translation of assets and liabilities in foreign currencies		62,189			10,712			5,717			10,848

Net change in unrealized appreciation (depreciation)		(130,853,220	)		(4,376,512	)		(24,384,443	)		(79,350,942	)

Net realized and unrealized loss		(46,497,598	)		(7,693,947	)		(12,869,698	)		(26,847,300	)


NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(46,983,377	)	$	(6,891,538	)	$	(10,985,165	)	$	(19,858,436	)

^a	Net of foreign withholding tax of $723,312, $213,341, $303,929 and $1,416,908, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS		47

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 29, 2008


	iShares MSCI
	Sweden Index Fund			Switzerland Index Fund			United Kingdom Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuers^a	$	18,313		$	1,678,560		$	15,500,554
Interest from affiliated issuers (Note 2)		14,382			8,940			44,507
Securities lending income from affiliated issuers (Note 2)		10,113			–			6,763

Total investment income		42,808			1,687,500			15,551,824


EXPENSES
Investment advisory fees (Note 2)		1,122,572			932,052			2,941,163

Total expenses		1,122,572			932,052			2,941,163

Net investment income (loss)		(1,079,764	)		755,448			12,610,661


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(8,839,848	)		(1,099,335	)		(4,518,671	)
Investments in affiliated issuers (Note 2)		–			–			(391,261	)
In-kind redemptions		29,643,086			15,640,835			37,193,577
Foreign currency transactions		22,320			13,456			(280,010	)

Net realized gain		20,825,558			14,554,956			32,003,635

Net change in unrealized appreciation (depreciation) on:
Investments		(77,020,101	)		(10,532,585	)		(142,141,573	)
Translation of assets and liabilities in foreign currencies		11,092			170,962			66,526

Net change in unrealized appreciation (depreciation)		(77,009,009	)		(10,361,623	)		(142,075,047	)

Net realized and unrealized gain (loss)		(56,183,451	)		4,193,333			(110,071,412	)


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(57,263,215	)	$	4,948,781		$	(97,460,751	)

^a	Net of foreign withholding tax of $3,232, $227,005 and $163,794, respectively.

See notes to financial statements.


48		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Austria Index Fund						iShares MSCI Belgium Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income (loss)	$	(291,757	)	$	6,906,656		$	(200,261	)	$	7,500,507
Net realized gain		18,342,806			89,929,345			2,887,874			4,698,517
Net change in unrealized appreciation (depreciation)		(44,620,668	)		(27,238,773	)		(34,539,214	)		13,471,138

Net increase (decrease) in net assets resulting from operations		(26,569,619	)		69,597,228			(31,851,601	)		25,670,162


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(7,323,699	)		(8,705,133	)		(9,168,782	)		(4,042,358	)

Total distributions to shareholders		(7,323,699	)		(8,705,133	)		(9,168,782	)		(4,042,358	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		85,287,263			345,391,061			52,925,830			145,006,107
Cost of shares redeemed		(226,145,324	)		(324,406,725	)		(21,261,004	)		(15,634,722	)

Net increase (decrease) in net assets from capital share transactions		(140,858,061	)		20,984,336			31,664,826			129,371,385

INCREASE (DECREASE) IN NET ASSETS		(174,751,379	)		81,876,431			(9,355,557	)		150,999,189

NET ASSETS
Beginning of period		473,513,820			391,637,389			303,483,399			152,484,210

End of period	$	298,762,441		$	473,513,820		$	294,127,842		$	303,483,399

Undistributed net investment income
(accumulated net investment loss) included in net assets at end of period	$	(946,667	)	$	6,668,789		$	(2,618,493	)	$	6,750,550


SHARES ISSUED AND REDEEMED
Shares sold		2,300,000			8,800,000			2,000,000			5,640,000
Shares redeemed		(6,100,000	)		(8,700,000	)		(840,000	)		(600,000	)

Net increase (decrease) in shares outstanding		(3,800,000	)		100,000			1,160,000			5,040,000

See notes to financial statements.


FINANCIAL STATEMENTS		49

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI EMU Index Fund						iShares MSCI France Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	8,588,145		$	64,897,028		$	225,918		$	5,363,789
Net realized gain		107,614,758			78,401,296			21,114,075			16,902,131
Net change in unrealized appreciation (depreciation)		(193,829,292	)		372,001,498			(60,616,992	)		131,397

Net increase (decrease) in net assets resulting from operations		(77,626,389	)		515,299,822			(39,276,999	)		22,397,317


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(70,470,544	)		(39,632,439	)		(5,537,010	)		(2,600,180	)

Total distributions to shareholders		(70,470,544	)		(39,632,439	)		(5,537,010	)		(2,600,180	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		278,111,668			890,425,624			373,304,894			308,549,207
Cost of shares redeemed		(323,021,513	)		(189,448,664	)		(138,020,470	)		(94,536,345	)

Net increase (decrease) in net assets from capital share transactions		(44,909,845	)		700,976,960			235,284,424			214,012,862

INCREASE (DECREASE) IN NET ASSETS		(193,006,778	)		1,176,644,343			190,470,415			233,809,999

NET ASSETS
Beginning of period		2,971,565,330			1,794,920,987			445,695,760			211,885,761

End of period	$	2,778,558,552		$	2,971,565,330		$	636,166,175		$	445,695,760

Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	284,282		$	62,166,681		$	(262,473	)	$	5,048,619


SHARES ISSUED AND REDEEMED
Shares sold		2,600,000			8,300,000			10,200,000			8,200,000
Shares redeemed		(2,700,000	)		(1,750,000	)		(3,800,000	)		(2,800,000	)

Net increase (decrease) in shares outstanding		(100,000	)		6,550,000			6,400,000			5,400,000

See notes to financial statements.


50		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Germany Index Fund						iShares MSCI Italy Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income (loss)	$	(485,779	)	$	28,068,699		$	802,409		$	8,244,893
Net realized gain (loss)		84,355,622			152,044,593			(3,317,435	)		45,811,884
Net change in unrealized appreciation (depreciation)		(130,853,220	)		148,406,473			(4,376,512	)		(31,574,902	)

Net increase (decrease) in net assets resulting from operations		(46,983,377	)		328,519,765			(6,891,538	)		22,481,875


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(28,435,651	)		(17,227,480	)		(8,261,678	)		(4,310,712	)

Total distributions to shareholders		(28,435,651	)		(17,227,480	)		(8,261,678	)		(4,310,712	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		655,473,975			972,720,932			287,892,085			255,824,310
Cost of shares redeemed		(255,847,128	)		(445,562,698	)		(34,481,729	)		(247,823,971	)

Net increase in net assets from capital share transactions		399,626,847			527,158,234			253,410,356			8,000,339

INCREASE IN NET ASSETS		324,207,819			838,450,519			238,257,140			26,171,502

NET ASSETS
Beginning of period		1,641,245,113			802,794,594			172,495,216			146,323,714

End of period	$	1,965,452,932		$	1,641,245,113		$	410,752,356		$	172,495,216

Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	(1,000,730	)	$	27,920,700		$	(149,325	)	$	7,309,944


SHARES ISSUED AND REDEEMED
Shares sold		19,500,000			31,800,000			9,600,000			7,500,000
Shares redeemed		(7,500,000	)		(14,700,000	)		(1,050,000	)		(7,200,000	)

Net increase in shares outstanding		12,000,000			17,100,000			8,550,000			300,000

See notes to financial statements.


FINANCIAL STATEMENTS		51

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Netherlands Index Fund						iShares MSCI Spain Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	1,884,533		$	7,751,323		$	6,988,864		$	12,640,003
Net realized gain		11,514,745			25,566,651			52,503,642			113,046,969
Net change in unrealized appreciation (depreciation)		(24,384,443	)		4,801,697			(79,350,942	)		(7,855,721	)

Net increase (decrease) in net assets resulting from operations		(10,985,165	)		38,119,671			(19,858,436	)		117,831,251


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(8,855,735	)		(3,524,849	)		(13,812,797	)		(4,483,132	)

Total distributions to shareholders		(8,855,735	)		(3,524,849	)		(13,812,797	)		(4,483,132	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		99,793,843			202,315,940			651,530,500			743,582,607
Cost of shares redeemed		(68,199,621	)		(95,548,185	)		(559,364,429	)		(512,504,767	)

Net increase in net assets from capital share transactions		31,594,222			106,767,755			92,166,071			231,077,840

INCREASE IN NET ASSETS		11,753,322			141,362,577			58,494,838			344,425,959

NET ASSETS
Beginning of period		251,353,862			109,991,285			522,556,016			178,130,057

End of period	$	263,107,184		$	251,353,862		$	581,050,854		$	522,556,016

Undistributed net investment income included in net assets at end of period	$	1,209,359		$	8,180,561		$	3,724,279		$	10,548,212


SHARES ISSUED AND REDEEMED
Shares sold		3,250,000			7,350,000			10,275,000			14,100,000
Shares redeemed		(2,100,000	)		(3,450,000	)		(9,300,000	)		(9,075,000	)

Net increase in shares outstanding		1,150,000			3,900,000			975,000			5,025,000

See notes to financial statements.


52		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Sweden Index Fund						iShares MSCI Switzerland Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income (loss)	$	(1,079,764	)	$	13,800,011		$	755,448		$	3,903,136
Net realized gain		20,825,558			35,325,675			14,554,956			8,791,737
Net change in unrealized appreciation (depreciation)		(77,009,009	)		28,147,722			(10,361,623	)		19,142,733

Net increase (decrease) in net assets resulting from operations		(57,263,215	)		77,273,408			4,948,781			31,837,606


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(13,788,192	)		(3,600,238	)		(3,929,999	)		(1,891,314	)

Total distributions to shareholders		(13,788,192	)		(3,600,238	)		(3,929,999	)		(1,891,314	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		63,221,151			453,975,174			204,107,662			119,606,280
Cost of shares redeemed		(303,445,184	)		(106,048,705	)		(37,597,902	)		(18,873,671	)

Net increase (decrease) in net assets from capital share transactions		(240,224,033	)		347,926,469			166,509,760			100,732,609

INCREASE (DECREASE) IN NET ASSETS		(311,275,440	)		421,599,639			167,528,542			130,678,901

NET ASSETS
Beginning of period		573,026,200			151,426,561			318,998,056			188,319,155

End of period	$	261,750,760		$	573,026,200		$	486,526,598		$	318,998,056

Undistributed net investment income (accumulated net investment loss) included in net assets at end of period	$	(1,079,764	)	$	13,788,192		$	755,448		$	3,929,999


SHARES ISSUED AND REDEEMED
Shares sold		1,950,000			13,725,000			8,125,000			4,750,000
Shares redeemed		(9,600,000	)		(3,000,000	)		(1,500,000	)		(750,000	)

Net increase (decrease) in shares outstanding		(7,650,000	)		10,725,000			6,625,000			4,000,000

See notes to financial statements.


FINANCIAL STATEMENTS		53

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI United Kingdom Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	12,610,661		$	37,583,387
Net realized gain		32,003,635			40,620,180
Net change in unrealized appreciation (depreciation)		(142,075,047	)		76,385,578

Net increase (decrease) in net assets resulting from operations		(97,460,751	)		154,589,145


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(40,172,261	)		(34,304,512	)

Total distributions to shareholders		(40,172,261	)		(34,304,512	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		277,276,840			229,005,308
Cost of shares redeemed		(117,384,250	)		(93,960,543	)

Net increase in net assets from capital share transactions		159,892,590			135,044,765

INCREASE IN NET ASSETS		22,259,578			255,329,398

NET ASSETS
Beginning of period		1,127,738,338			872,408,940

End of period	$	1,149,997,916		$	1,127,738,338

Undistributed net investment income included in net assets at end of period	$	4,845,902		$	32,407,502


SHARES ISSUED AND REDEEMED
Shares sold		11,600,000			9,800,000
Shares redeemed		(5,000,000	)		(4,000,000	)

Net increase in shares outstanding		6,600,000			5,800,000

See notes to financial statements.


54		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Austria Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	37.28		$	31.08		$	26.62		$	17.04		$	10.61		$	8.19


Income from investment operations:
Net investment income (loss)^a		(0.03	)		0.51			0.44			0.29			0.21			0.09
Net realized and unrealized gain (loss)^b		(2.97	)		6.42			4.31			9.38			6.39			2.43

Total from investment operations		(3.00	)		6.93			4.75			9.67			6.60			2.52


Less distributions from:
Net investment income		(0.71	)		(0.73	)		(0.29	)		(0.09	)		(0.17	)		(0.10	)

Total distributions		(0.71	)		(0.73	)		(0.29	)		(0.09	)		(0.17	)		(0.10	)


Net asset value, end of period	$	33.57		$	37.28		$	31.08		$	26.62		$	17.04		$	10.61


Total return		(8.15	)%^c		22.35	%		18.00	%		56.82	%		62.70	%		31.15	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	298,762		$	473,514		$	391,637		$	196,952		$	57,920		$	22,288
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.77	%		0.84	%
Ratio of net investment income (loss) to average net assets^d		(0.16	)%		1.36	%		1.48	%		1.26	%		1.37	%		0.98	%
Portfolio turnover rate^e		13	%		21	%		32	%		21	%		11	%		26	%

^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		55

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Belgium Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	25.89		$	22.83		$	18.94		$	14.77		$	11.16		$	10.43


Income from investment operations:
Net investment income (loss)^a		(0.02	)		0.76			0.75			0.71			0.37			0.41
Net realized and unrealized gain (loss)^b		(2.31	)		2.74			3.95			3.75			4.25			0.43

Total from investment operations		(2.33	)		3.50			4.70			4.46			4.62			0.84


Less distributions from:
Net investment income		(0.72	)		(0.44	)		(0.81	)		(0.29	)		(1.01	)		(0.11	)

Total distributions		(0.72	)		(0.44	)		(0.81	)		(0.29	)		(1.01	)		(0.11	)

Net asset value, end of period	$	22.84		$	25.89		$	22.83		$	18.94		$	14.77		$	11.16


Total return		(9.10	)%^c		15.36	%		25.66	%		30.22	%		42.88	%		8.25	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	294,128		$	303,483		$	152,484		$	46,960		$	24,813		$	21,871
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.78	%		0.84	%
Ratio of net investment income (loss) to average net assets^d		(0.13	)%		2.90	%		3.60	%		3.89	%		2.79	%		4.10	%
Portfolio turnover rate^e		18	%		12	%		10	%		10	%		21	%		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.


56		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI EMU Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	114.29		$	92.28		$	74.97		$	59.38		$	50.12		$	46.02


Income from investment operations:
Net investment income^a		0.34			2.80			2.73			1.76			1.36			0.93
Net realized and unrealized gain (loss)^b		(4.39	)		21.06			15.90			15.13			8.69			3.62

Total from investment operations		(4.05	)		23.86			18.63			16.89			10.05			4.55


Less distributions from:
Net investment income		(2.96	)		(1.85	)		(1.32	)		(1.30	)		(0.79	)		(0.45	)

Total distributions		(2.96	)		(1.85	)		(1.32	)		(1.30	)		(0.79	)		(0.45	)

Net asset value, end of period	$	107.28		$	114.29		$	92.28		$	74.97		$	59.38		$	50.12


Total return		(3.74	)%^c		26.10	%		25.18	%		28.54	%		20.07	%		10.05	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,778,559		$	2,971,565		$	1,794,921		$	547,284		$	326,606		$	165,388
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.58	%		0.79	%		0.84	%
Ratio of expenses to average net assets exclusive of foreign taxes^d		n/a			n/a			n/a			0.57	%		0.79	%		n/a
Ratio of net investment income to average net assets^d		0.59	%		2.60	%		3.23	%		2.50	%		2.29	%		2.08	%
Portfolio turnover rate^e		17	%		5	%		8	%		8	%		11	%		7	%

^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		57

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI France Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	36.53		$	31.16		$	25.41		$	20.40		$	16.90		$	15.52


Income from investment operations:
Net investment income^a		0.02			0.77			0.55			0.47			0.24			0.23
Net realized and unrealized gain (loss)^b		(2.00	)		5.06			5.52			4.84			3.54			1.33

Total from investment operations		(1.98	)		5.83			6.07			5.31			3.78			1.56


Less distributions from:
Net investment income		(0.35	)		(0.46	)		(0.32	)		(0.30	)		(0.28	)		(0.18	)

Total distributions		(0.35	)		(0.46	)		(0.32	)		(0.30	)		(0.28	)		(0.18	)

Net asset value, end of period	$	34.20		$	36.53		$	31.16		$	25.41		$	20.40		$	16.90


Total return		(5.50	)%^c		18.83	%		24.13	%		26.13	%		22.44	%		10.22	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	636,166		$	445,696		$	211,886		$	81,326		$	61,201		$	54,075
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.79	%		0.84	%
Ratio of net investment income to average net assets^d		0.09	%		2.17	%		1.95	%		1.98	%		1.23	%		1.56	%
Portfolio turnover rate^e		4	%		6	%		10	%		7	%		9	%		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.


58		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Germany Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	32.18		$	23.68		$	19.08		$	14.96		$	12.57		$	12.07


Income from investment operations:
Net investment income (loss)^a		(0.01	)		0.68			0.57			0.28			0.19			0.21
Net realized and unrealized gain (loss)^b		(0.45	)		8.33			4.15			4.03			2.40			0.41

Total from investment operations		(0.46	)		9.01			4.72			4.31			2.59			0.62


Less distributions from:
Net investment income		(0.52	)		(0.51	)		(0.12	)		(0.19	)		(0.20	)		(0.12	)

Total distributions		(0.52	)		(0.51	)		(0.12	)		(0.19	)		(0.20	)		(0.12	)

Net asset value, end of period	$	31.20		$	32.18		$	23.68		$	19.08		$	14.96		$	12.57


Total return		(1.61	)%^c		38.47	%		24.82	%		28.89	%		20.55	%		5.39	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,965,453		$	1,641,245		$	802,795		$	314,793		$	98,764		$	101,800
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.80	%		0.84	%
Ratio of net investment income (loss) to average net assets^d		(0.05	)%		2.32	%		2.62	%		1.54	%		1.27	%		1.98	%
Portfolio turnover rate^e		4	%		4	%		12	%		9	%		9	%		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	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		59

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Italy Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	33.82		$	30.48		$	25.77		$	20.21		$	16.67		$	15.15


Income from investment operations:
Net investment income^a		0.14			1.35			1.07			0.78			0.56			0.43
Net realized and unrealized gain (loss)^b		(2.38	)		2.66			4.15			5.42			3.59			1.47

Total from investment operations		(2.24	)		4.01			5.22			6.20			4.15			1.90


Less distributions from:
Net investment income		(1.49	)		(0.67	)		(0.51	)		(0.64	)		(0.61	)		(0.38	)

Total distributions		(1.49	)		(0.67	)		(0.51	)		(0.64	)		(0.61	)		(0.38	)

Net asset value, end of period	$	30.09		$	33.82		$	30.48		$	25.77		$	20.21		$	16.67


Total return		(6.92	)%^c		13.20	%		20.61	%		30.74	%		25.09	%		12.79	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	410,752		$	172,495		$	146,324		$	42,526		$	27,279		$	29,997
Ratio of expenses to average net assets^d		0.51	%		0.52	%		0.54	%		0.57	%		0.83	%		0.84	%
Ratio of expenses to average net assets exclusive of foreign taxes^d		n/a			n/a			n/a			n/a			0.79	%		n/a
Ratio of net investment income to average net assets^d		0.83	%		4.02	%		3.87	%		3.18	%		2.85	%		2.84	%
Portfolio turnover rate^e		10	%		16	%		15	%		18	%		9	%		22	%

^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.


60		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Netherlands Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	29.75		$	24.17		$	19.10		$	15.70		$	14.31		$	14.69


Income from investment operations:
Net investment income^a		0.22			0.98			0.60			0.57			0.39			0.30
Net realized and unrealized gain (loss)^b		(1.53	)		5.05			4.95			3.09			1.37			(0.43	)

Total from investment operations		(1.31	)		6.03			5.55			3.66			1.76			(0.13	)


Less distributions from:
Net investment income		(1.03	)		(0.45	)		(0.48	)		(0.26	)		(0.37	)		(0.25	)

Total distributions		(1.03	)		(0.45	)		(0.48	)		(0.26	)		(0.37	)		(0.25	)

Net asset value, end of period	$	27.41		$	29.75		$	24.17		$	19.10		$	15.70		$	14.31


Total return		(4.61	)%^c		25.22	%		29.53	%		23.40	%		12.28	%		(0.78	)%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	263,107		$	251,354		$	109,991		$	63,974		$	28,265		$	18,599
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.78	%		0.84	%
Ratio of net investment income to average net assets^d		1.46	%		3.50	%		2.78	%		3.13	%		2.45	%		2.37	%
Portfolio turnover rate^e		19	%		8	%		17	%		6	%		9	%		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		61

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Spain Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	58.06		$	44.81		$	35.70		$	27.55		$	22.39		$	17.95


Income from investment operations:
Net investment income^a		0.69			1.30			1.07			0.79			0.44			0.24
Net realized and unrealized gain^b		0.66			12.33			8.78			7.97			4.99			4.36

Total from investment operations		1.35			13.63			9.85			8.76			5.43			4.60


Less distributions from:
Net investment income		(1.16	)		(0.38	)		(0.74	)		(0.61	)		(0.27	)		(0.16	)

Total distributions		(1.16	)		(0.38	)		(0.74	)		(0.61	)		(0.27	)		(0.16	)


Net asset value, end of period	$	58.25		$	58.06		$	44.81		$	35.70		$	27.55		$	22.39


Total return		2.20	%^c		30.47	%		28.09	%		31.85	%		24.28	%		25.81	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	581,051		$	522,556		$	178,130		$	66,945		$	45,456		$	50,372
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.80	%		0.84	%
Ratio of net investment income to average net assets^d		2.24	%		2.36	%		2.67	%		2.33	%		1.64	%		1.22	%
Portfolio turnover rate^e		17	%		12	%		6	%		8	%		6	%		17	%

^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.


62		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Sweden Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	34.57		$	25.88		$	21.58		$	16.82		$	12.59		$	9.88


Income from investment operations:
Net investment income (loss)^a		(0.08	)		1.15			0.76			0.46			0.28			0.25
Net realized and unrealized gain (loss)^b		(4.05	)		7.88			3.96			4.45			4.20			2.58

Total from investment operations		(4.13	)		9.03			4.72			4.91			4.48			2.83


Less distributions from:
Net investment income		(1.11	)		(0.34	)		(0.42	)		(0.15	)		(0.25	)		(0.12	)

Total distributions		(1.11	)		(0.34	)		(0.42	)		(0.15	)		(0.25	)		(0.12	)


Net asset value, end of period	$	29.33		$	34.57		$	25.88		$	21.58		$	16.82		$	12.59


Total return		(12.00	)%^c		35.01	%		22.16	%		29.21	%		35.81	%		29.04	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	261,751		$	573,026		$	151,427		$	61,513		$	27,758		$	16,992
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.58	%		0.92	%		0.84	%
Ratio of expenses to average net assets exclusive of foreign taxes^d		n/a			n/a			n/a			0.57	%		0.79	%		n/a
Ratio of net investment income (loss) to average net assets^d		(0.49	)%		3.42	%		3.13	%		2.28	%		1.74	%		2.44	%
Portfolio turnover rate^e		6	%		7	%		14	%		6	%		9	%		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		63

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Switzerland Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	25.78		$	22.49		$	17.63		$	14.58		$	12.23		$	11.59


Income from investment operations:
Net investment income^a		0.05			0.36			0.27			0.22			0.09			0.05
Net realized and unrealized gain^b		0.06			3.12			4.71			2.92			2.31			0.62

Total from investment operations		0.11			3.48			4.98			3.14			2.40			0.67


Less distributions from:
Net investment income		(0.28	)		(0.19	)		(0.12	)		(0.09	)		(0.05	)		(0.03	)

Total distributions		(0.28	)		(0.19	)		(0.12	)		(0.09	)		(0.05	)		(0.03	)

Net asset value, end of period	$	25.61		$	25.78		$	22.49		$	17.63		$	14.58		$	12.23


Total return		0.42	%^c		15.53	%		28.36	%		21.54	%		19.56	%		5.89	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	486,527		$	318,998		$	188,319		$	79,324		$	41,920		$	33,643
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.79	%		0.84	%
Ratio of net investment income to average net assets^d		0.41	%		1.42	%		1.34	%		1.34	%		0.64	%		0.43	%
Portfolio turnover rate^e		4	%		5	%		11	%		5	%		4	%		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.


64		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI United Kingdom Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	24.73		$	21.92		$	18.74		$	15.72		$	13.00		$	12.77


Income from investment operations:
Net investment income^a		0.26			0.84			0.97			0.60			0.48			0.39
Net realized and unrealized gain (loss)^b		(2.12	)		2.78			2.79			2.76			2.72			0.12

Total from investment operations		(1.86	)		3.62			3.76			3.36			3.20			0.51


Less distributions from:
Net investment income		(0.84	)		(0.81	)		(0.58	)		(0.34	)		(0.48	)		(0.28	)

Total distributions		(0.84	)		(0.81	)		(0.58	)		(0.34	)		(0.48	)		(0.28	)

Net asset value, end of period	$	22.03		$	24.73		$	21.92		$	18.74		$	15.72		$	13.00


Total return		(7.79	)%^c		16.77	%		20.61	%		21.53	%		24.77	%		4.20	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,149,998		$	1,127,738		$	872,409		$	464,850		$	452,870		$	150,809
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.77	%		0.84	%
Ratio of net investment income to average net assets^d		2.19	%		3.51	%		4.81	%		3.39	%		3.11	%		3.23	%
Portfolio turnover rate^e		5	%		8	%		10	%		11	%		6	%		6	%

^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		65

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.

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 MSCI 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


66		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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”).

Investments that may be valued using fair value pricing include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (i.e., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (i.e., an event that occurs after the close of the markets on which the security is traded but before the time as of which the Fund’s NAV is computed and that may materially affect the value of the Fund’s investments). Examples of events that may be “significant events” are government actions, natural disasters, armed conflict, acts of terrorism, and significant market fluctuations.

Valuing a Fund’s investments using fair value pricing will result in using prices for those investments that may differ from current market valuations. Accordingly, fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s benchmark index, which, in turn, could result in a difference between the Fund’s performance and the performance of the Fund’s benchmark index.

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

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, capital gains on investments or currency repatriation. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are disclosed in their Statements of Operations. Foreign taxes payable as of February 29, 2008, if any, are reflected in the Funds’ Statements of Assets and Liabilities.


NOTES TO FINANCIAL STATEMENTS		67

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the six months ended February 29, 2008.

The Funds had tax basis net capital loss carryforwards as of August 31, 2007, 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		Expiring 2015		Total
Austria	$	491,457	$	336,553	$	1,291,324	$	370,948	$	855,364	$	–	$	–	$	9,795,917	$	13,141,563
Belgium		–		59,876		1,677,678		117,767		175,781		33,969		–		–		2,065,071
EMU		–		–		–		–		2,876,857		1,873,963		–		–		4,750,820
France		–		–		2,436,748		236,944		2,400,550		–		–		158,472		5,232,714
Germany		–		–		8,697,227		5,469,732		8,656,712		2,241,687		–		4,227,713		29,293,071
Italy		–		–		2,648,775		848,408		541,980		527,327		–		–		4,566,490
Netherlands		–		60,885		3,222,792		1,497,810		2,481,175		129,137		403,525		260,715		8,056,039
Spain		–		–		163,675		678,910		1,582,094		–		–		–		2,424,679
Sweden		–		–		713,472		1,577,551		1,149,514		–		107,613		–		3,548,150
Switzerland		–		–		2,247,442		1,018,305		2,149,171		354,252		–		–		5,769,170
United Kingdom		–		–		856,798		6,448,554		4,272,059		1,517,783		7,063,063		–		20,158,257

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.


68		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

As of February 29, 2008, 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 (Depreciation)
Austria	$	346,712,209	$	6,926,037	$	(52,833,021	)	$	(45,906,984	)
Belgium		303,521,467		26,896,718		(37,193,234	)		(10,296,516	)
EMU		2,488,185,980		438,726,746		(93,738,803	)		344,987,943
France		700,703,763		9,285,710		(67,757,089	)		(58,471,379	)
Germany		1,899,840,109		160,598,595		(91,504,571	)		69,094,024
Italy		433,032,123		4,937,943		(21,833,246	)		(16,895,303	)
Netherlands		278,743,494		9,521,675		(19,802,174	)		(10,280,499	)
Spain		702,711,463		–		(62,261,548	)		(62,261,548	)
Sweden		314,286,408		1,397,214		(49,648,090	)		(48,250,876	)
Switzerland		440,346,134		65,772,967		(22,171,231	)		43,601,736
United Kingdom		1,101,166,072		123,422,950		(79,970,883	)		43,452,067

The Funds adopted Financial Accounting Standards Board (“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 a tax position taken or expected to be taken in a tax return. FIN 48 provides guidance on the measurement, recognition, classification and disclosures of tax positions, along with accounting for the related interest and penalties. Management has reviewed the tax positions as of February 29, 2008, inclusive of the prior three open tax return years, and has determined that the implementation of FIN 48 did not have a material impact on the Funds’ financial statements.

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 the Funds and other iShares Funds in the same advisory fee category, 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


NOTES TO FINANCIAL STATEMENTS		69

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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

SEI Investments Distribution Co. (“SEI”) serves as each Fund’s underwriter and distributor of the shares of each Fund, pursuant to a Distribution Agreement with the 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 Funds. BarCap and BGI are affiliates of BGFA, the Funds’ investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 29, 2008, BGI earned securities lending agent fees as follows:


iShares MSCI Index Fund	Securities Lending Agent Fees
Austria	$	37,278
Belgium		24,778
EMU		233,455
France		7,415
Germany		24,050


iShares MSCI Index Fund	Securities Lending Agent Fees
Italy	$	16,621
Netherlands		16,663
Spain		384,188
Sweden		10,113
United Kingdom		6,763

Cross trades for the six months ended February 29, 2008, 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, 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.

Each Fund may invest its securities lending cash collateral, if any, in the BGI Cash Premier Fund LLC (“Premier Fund”), an affiliated private money market fund managed by BGFA. Although the Premier Fund is not registered as an investment company under the 1940 Act, it intends to operate as a money market fund in compliance with Rule 2a-7 under the 1940 Act. See Note 5 for additional information regarding the Premier Fund.


70		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

For the six months ended February 29, 2008, the iShares MSCI United Kingdom Index Fund had direct investments (exclusive of short-term investments) in issuers of which BGFA is an affiliate or issuers of which the Fund owns 5% or more of the outstanding voting securities as follows:

Name of Affiliated Issuer

Number of
Shares Held
Beginning
of 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
Loss

Barclays PLC

2,376

736

383

2,729

25,907,796

(391,261

)

As of February 29, 2008, 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 29, 2008, were as follows:


iShares MSCI Index Fund	Purchases		Sales
Austria	$	48,934,196	$	55,258,932
Belgium		53,851,783		60,179,953
EMU		511,319,730		523,248,958
France		22,307,861		27,797,424
Germany		83,167,241		109,879,613
Italy		20,406,192		27,396,384
Netherlands		50,217,210		53,504,596
Spain		100,671,680		108,400,931
Sweden		24,313,573		39,433,958
Switzerland		15,344,796		16,294,504
United Kingdom		57,817,452		75,561,094

In-kind transactions (see Note 4) for the six months ended February 29, 2008, were as follows:


iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Austria	$	83,986,503	$	223,277,656
Belgium		50,621,259		20,879,901
EMU		263,940,209		301,591,764
France		371,265,391		136,174,300
Germany		654,089,538		255,109,395
Italy		286,199,961		33,773,825
Netherlands		95,763,593		67,322,029
Spain		649,802,888		555,916,932
Sweden		62,837,020		302,281,588
Switzerland		200,656,368		37,395,966
United Kingdom		275,660,643		116,723,016


NOTES TO FINANCIAL STATEMENTS		71

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

4. CAPITAL SHARE TRANSACTIONS

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 deposit of a designated portfolio of equity securities, which constitutes a substantial replication, or 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 State Street, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

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

5. LOANS OF PORTFOLIO SECURITIES

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

As of February 29, 2008, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in the Premier Fund. The Premier Fund seeks to achieve its investment objective by investing in a portfolio of high-quality, short-term fixed-income instruments, including money market funds (which may be managed by BGFA or its affiliate) and other instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition.

The market value of the securities on loan as of February 29, 2008 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 PRONOUNCEMENT

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. Management does not believe that the adoption of this standard will have a material impact on the Funds’ financial statements.


72		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Meeting Results (Unaudited)

iSHARES^®, INC.

A special meeting of shareholders of iShares, Inc. was held on December 7, 2007. At the special meeting, the following matters were voted upon and approved by the shareholders of the iShares MSCI Austria Index Fund and iShares MSCI Netherlands Index Fund. The results of the voting are presented below.

Proposal 1

To approve a change in the investment objective of each Fund — from tracking the existing indices to tracking the new MSCI Investable Market Indices.


iShares MSCI Index Fund	Votes For	Votes Withheld	Votes Abstaining
Austria	6,078,149	131,597	144,917
Netherlands	4,241,941	69,510	116,533

Proposal 2

To approve the reclassification of the investment objective of each Fund from fundamental to non-fundamental.


iShares MSCI Index Fund	Votes For	Votes Against	Votes Abstaining
Austria	5,826,847	378,284	149,532
Netherlands	4,201,608	107,984	118,392


SHAREHOLDER MEETING RESULTS		73

Notes:


74		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES		75

Notes:


76		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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 S&P North American Natural Resources

Sector (IGE)

iShares S&P North American Technology -

Multimedia Networking (IGN)

iShares S&P North American Technology-

Semiconductors (IGW)

iShares S&P North American Technology-

Software (IGV)

iShares S&P North American Technology

Sector (IGM)

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. (IYY)

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 FTSE NAREIT Industrial/Office (FIO)

iShares FTSE NAREIT Mortgage REITs (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential (REZ)

iShares FTSE NAREIT Retail (RTL)

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 Infrastructure (IGF)

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 Chile (ECH)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Israel Capped Investable

Market (EIS)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Japan Small Cap (SCJ)

iShares 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 Thailand Investable

Market (THD)

iShares MSCI Turkey Investable Market (TUR)

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 iBoxx $ High Yield Corporate (HYG)

iShares Lehman Government/Credit (GBF)

iShares Lehman Intermediate Government/

Credit (GVI)

iShares Lehman MBS (MBB)

iShares S&P National Municipal (MUB)

iShares S&P California Municipal (CMF)

iShares S&P New York Municipal (NYF)

iShares JPMorgan USD Emerging

Markets (EMB)

iShares Specialty Index Funds

iShares KLD 400 Social (DSI)

iShares KLD Select Social^SM(KLD)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones EPAC Select

Dividend (IDV)

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

iShares International Index Funds

iShares FTSE Developed Small Capex-North

America (IFSM)

iShares FTSE EPRA/NAREIT Global Real

Estate ex-U.S. (IFGL)

iShares FTSE EPRA/NAREIT North

America (IFNA)

iShares FTSEEPRA/NAREIT Europe (IFEU)

iShares FTSE EPRA/NAREIT Asia (IFAS)

iShares MSCI ACWI (ACWI)

iShares MSCI ACWI ex US (ACWX)

iShares MSCI BRIC (BKF)

iShares MSCI EAFE (EFA)

iShares MSCI EAFE Growth (EFG)

iShares MSCI EAFE Value (EFV)

iShares MSCI EAFE Small Cap (SCZ)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI Kokusai (TOK)

iShares MSCI Pacific ex-Japan (EPP)

iShares S&P Asia 50 (AIA)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares S&P World ex-U.S. Property (WPS)


iSHARES FAMILY OF FUNDS		77

The iShares^®Family of Funds (Continued)

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 Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA^®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx^®, J.P. Morgan Securities Inc., KLD Research & Analytics, Inc., MSCI Inc., Morningstar Inc., The NASDAQ Stock Market, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSENAREIT Real Estate 50 Index, FTSENAREIT Residential Index, FTSENAREIT Retail Index, FTSENAREIT Mortgage REITs Index or FTSENAREIT Industrial/Office Index; all rights vest in NAREIT. Neither FTSEn or NAREIT makes any warranty regarding the FTSEEPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. “NAREIT^®” is a trademark of NAREIT; “EPRA^®” is a trademark of EPRA.

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

This advertising section does not constitute part of the 2008 Semi-Annual Report.

6712-iS-0408


78		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

LOGO

Table of Contents


Fund Performance Overviews		1
Shareholder Expenses		15
Schedules of Investments		17
iShares MSCI Australia Index Fund		17
iShares MSCI Brazil Index Fund		20
iShares MSCI BRIC Index Fund		23
iShares MSCI Canada Index Fund		27
iShares MSCI Chile Index Fund		30
iShares MSCI Hong Kong Index Fund		32
iShares MSCI Japan Small Cap Index Fund		34
iShares MSCI Malaysia Index Fund		43
iShares MSCI Mexico Index Fund		45
iShares MSCI Pacific ex-Japan Index Fund		47
iShares MSCI Singapore Index Fund		51
iShares MSCI South Africa Index Fund		53
iShares MSCI South Korea Index Fund		55
iShares MSCI Taiwan Index Fund		59
Financial Statements		63
Financial Highlights		78
Notes to Financial Statements		92
iShares Family of Funds		101

Fund Performance Overview

iSHARES^® MSCI AUSTRALIA INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Australia Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Australian market, as measured by the MSCI Australia Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund returned 3.36%, while the Index returned 2.88%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
16.48%	15.15%	15.76%	29.34%	28.96%	28.73%	14.08%	13.97%	14.06%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
16.48%	15.15%	15.76%	261.93%	256.63%	253.53%	273.19%	269.69%	272.52%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	40.41	%

Basic Materials	26.49

Consumer Non-Cyclical	11.64

Industrial	8.70

Energy	4.89

Consumer Cyclical	3.24

Communications	2.57

Utilities	0.54

Technology	0.44

Short-Term and Other Net Assets	1.08


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
BHP Billiton Ltd.	14.48	%

Commonwealth Bank of Australia	6.06

National Australia Bank Ltd.	5.11

Westpac Banking Corp.	4.74

Australia and New Zealand Banking Group Ltd.	4.48

Rio Tinto Ltd.	4.29

Woolworths Ltd.	3.84

Westfield Group	3.34

Woodside Petroleum Ltd.	3.00

Wesfarmers Ltd.	2.24


TOTAL	51.58	%


FUND PERFORMANCE OVERVIEWS		1

Fund Performance Overview

iSHARES^® MSCI BRAZIL INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Brazil Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Brazilian market, as measured by the MSCI Brazil Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund returned 37.80%, while the Index returned 39.70%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
85.35%	88.53%	87.98%	65.15%	65.59%	67.37%	23.25%	23.52%	25.80%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
85.35%	88.53%	87.98%	1,128.45%	1,144.84%	1,213.53%	394.04%	402.25%	477.66%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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. 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.


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Basic Materials	32.51	%

Energy	26.49

Financial	17.07

Consumer Non-Cyclical	6.40

Communications	5.97

Utilities	5.90

Industrial	2.35

Consumer Cyclical	2.10

Diversified	0.91
Short-Term and Other Net Assets	0.30

TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Petroleo Brasileiro SA Preferred	13.91	%

Petroleo Brasileiro SA	12.58

Companhia Vale do Rio Doce Class A Preferred	11.35

Companhia Vale do Rio Doce ADR	9.25

Banco Bradesco SA Preferred	4.67

Banco Itau Holding Financeira SA Preferred	4.40

Unibanco - Uniao de Bancos Brasileiros SA Units	3.47

Companhia de Bebidas das Americas Preferred	2.96

Companhia Siderurgica Nacional	2.81

Gerdau SA Preferred	2.03


TOTAL	67.43	%


2		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI BRIC INDEX FUND

Performance as of February 29, 2008

The iShares MSCI BRIC 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 BRIC Index^SM (the “Index”). The Index is designed to measure the combined equity market performance in Brazil, Russia, India and China (“BRIC”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the period from November 12, 2007 (inception date of the Fund) through February 29, 2008, the Fund declined 5.10%, while the Index declined 4.69%.


Cumulative Total Returns

Inception to 2/29/08

NAV	MARKET	INDEX
(5.10)%	(4.62)%	(4.69)%

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 11/12/07.

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 (11/16/07), 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 table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Energy	30.70	%

Financial	22.19

Basic Materials	14.59

Communications	12.75

Technology	4.41

Consumer Non-Cyclical	4.26

Industrial	4.23

Utilities	3.03

Diversified	2.21

Consumer Cyclical	1.45

Short-Term and Other Net Assets	0.18


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
OAO Gazprom SP ADR Reg S (Russia)	7.49	%

China Mobile Ltd. (China)	5.75

Petroleo Brasileiro SA Preferred (Brazil)	4.67

Petroleo Brasileiro SA (Brazil)	3.88

Reliance Industries Ltd. GDR (India)	3.60

Companhia Vale do Rio Doce Class A Preferred (Brazil)	3.52

Companhia Vale do Rio Doce (Brazil)	2.98

LUKOIL SP ADR (Russia)	2.18

ICICI Bank Ltd. SP ADR (India)	2.16

Infosys Technologies Ltd. SP ADR (India)	2.05


TOTAL	38.28	%


FUND PERFORMANCE OVERVIEWS		3

Fund Performance Overview

iSHARES^® MSCI CANADA INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Canada Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Canadian market, as measured by the MSCI Canada Index ^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund returned 8.81%, while the Index returned 8.91%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
27.96%	27.93%	28.24%	27.77%	27.83%	28.16%	13.54%	13.49%	13.96%


Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
27.96%	27.93%	28.24%	240.47%	241.35%	245.69%	256.18%	254.60%	269.50%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	28.74	%

Energy	28.06

Basic Materials	20.23

Communications	5.46

Industrial	5.23

Technology	4.87

Consumer Cyclical	2.60

Diversified	1.90

Consumer Non-Cyclical	1.46

Utilities	1.19

Short-Term and Other Net Assets	0.26


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Royal Bank of Canada	5.57	%

Manulife Financial Corp.	5.16

EnCana Corp.	4.92

Research In Motion Ltd.	4.52

Potash Corp. of Saskatchewan Inc.	4.32

Bank of Nova Scotia	4.11

Suncor Energy Inc.	4.10

Barrick Gold Corp.	3.89

Canadian Natural Resources Ltd.	3.48

Goldcorp Inc.	2.62


TOTAL	42.69	%


4		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI CHILE INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Chile 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 Chile Investable Market Index^SM (the “Index”). The Index is designed to measure broad based equity market performance in Chile. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the period from November 12, 2007 (inception date of the Fund) through February 29, 2008, the Fund returned 0.10%, while the Index declined 0.03%.


Cumulative Total Returns

Inception to 2/29/08

NAV	MARKET	INDEX
0.10%	1.13%	(0.03)%

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 11/12/07.

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 (11/16/07), 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 table above does 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 2/29/08
Sector	Percentage of Net Assets
Utilities	23.51	%

Basic Materials	17.85

Diversified	16.27

Consumer Non-Cyclical	13.59

Financial	9.91

Consumer Cyclical	9.51

Communications	5.55

Industrial	3.05

Technology	0.64

Short-Term and Other Net Assets	0.12


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Empresas Copec SA	15.91	%

Empresa Nacional de Electricidad SA	9.56

Enersis SA	8.48

Empresas CMPC SA	6.99

Centros Comerciales Sudamericanos SA	6.70

Banco Santander Chile SA	4.85

Sociedad Quimica y Minera de Chile SA Class B Preferred	4.82

CAP SA	4.79

Lan Airlines SA	3.79

Empresa Nacional de Telecomunicaciones SA	3.34


TOTAL	69.23	%


FUND PERFORMANCE OVERVIEWS		5

Fund Performance Overview

iSHARES^® MSCI HONG KONG INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Hong Kong Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Hong Kong market, as measured by the MSCI Hong Kong Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund returned 6.33%, while the Index returned 6.71%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
22.46%	21.62%	23.22%	23.68%	23.05%	24.53%	8.32%	8.00%	9.68%


Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
22.46%	21.62%	23.22%	189.45%	182.08%	199.42%	122.47%	115.86%	151.96%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	49.75	%

Diversified	13.76

Consumer Cyclical	12.20

Utilities	10.07

Industrial	6.76

Communications	4.78

Basic Materials	1.34

Consumer Non-Cyclical	0.71

Technology	0.47

Short-Term and Other Net Assets	0.16


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Sun Hung Kai Properties Ltd.	8.21	%

Cheung Kong (Holdings) Ltd.	7.96

Hong Kong Exchanges and Clearing Ltd.	7.46

Hutchison Whampoa Ltd.	7.31

Hang Seng Bank Ltd.	4.98

Esprit Holdings Ltd.	4.49

Hong Kong and China Gas Co. Ltd. (The)	3.71

CLP Holdings Ltd.	3.58

Swire Pacific Ltd. Class A	3.23

BOC Hong Kong (Holdings) Ltd.	3.23


TOTAL	54.16	%


6		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Japan Small Cap 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 Japan Small Cap Index^SM (the “Index”). The Index targets 40% of the eligible small cap universe within each industry group in the MSCI Japan Index^SM. The small cap universe is defined as all listed securities that have a market capitalization in the range of $200 million to $1,500 million. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the period from December 20, 2007 (inception date of the Fund) through February 29, 2008, the Fund declined 1.78%, while the Index declined 1.63%.


Cumulative Total Returns

Inception to 2/29/08

NAV	MARKET	INDEX
(1.78)%	(2.15)%	(1.63)%

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 12/20/07.

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 the day after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (12/21/07), 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 table above does 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 2/29/08
Sector	Percentage of Net Assets
Industrial	25.00	%

Consumer Cyclical	22.51

Financial	22.17

Consumer Non-Cyclical	13.46

Basic Materials	9.01

Communications	3.65

Technology	2.76

Utilities	1.11

Energy	0.11

Short-Term and Other Net Assets	0.22


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Yamaguchi Financial Group Inc.	0.70	%

Nagoya Railroad Co. Ltd.	0.67

Toho Gas Co. Ltd.	0.66

Iyo Bank Ltd. (The)	0.62

Shimadzu Corp.	0.60

Chugoku Bank Ltd. (The)	0.57

Hisamitsu Pharmaceutical Co. Inc.	0.54

Keihan Electric Railway Co. Ltd.	0.53

Pacific Metals Co. Ltd.	0.51

Hamamatsu Photonics K.K.	0.51


TOTAL	5.91	%


FUND PERFORMANCE OVERVIEWS		7

Fund Performance Overview

iSHARES^® MSCI MALAYSIA INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Malaysia Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Malaysian market, as measured by the MSCI Malaysia Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities included in the Index. For the six-month period ended February 29, 2008, the Fund returned 20.02%, while the Index returned 20.31%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
29.59%	29.54%	30.13%	22.99%	23.20%	23.92%	10.17%	10.13%	11.56%


Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
29.59%	29.54%	30.13%	181.37%	183.81%	192.25%	163.45%	162.39%	198.72%

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.


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	29.27	%

Consumer Non-Cyclical	18.14

Consumer Cyclical	14.59

Industrial	12.57

Diversified	10.83

Utilities	6.66

Communications	6.42

Energy	1.12

Technology	0.15

Short-Term and Other Net Assets	0.25


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Sime Darby Bhd	9.73	%

IOI Corp. Bhd	9.26

Bumiputra-Commerce Holdings Bhd	9.25

Malayan Banking Bhd	7.72

Genting Bhd	4.42

Telekom Malaysia Bhd	4.11

Tenaga Nasional Bhd	4.09

Public Bank Bhd	3.85

Resorts World Bhd	3.79

MISC Bhd	3.43


TOTAL	59.65	%


8		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI MEXICO INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Mexico Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Mexican market, as measured by the MSCI Mexico Investable Market Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 2.64%, while the Index declined 1.94%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
12.48%	15.48%	12.95%	38.60%	39.21%	37.95%	16.50%	16.68%	17.59%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
12.48%	15.48%	12.95%	411.54%	422.76%	399.66%	360.41%	367.50%	405.39%

Effective December 1, 2007, the Fund changed its underlying index from the MSCI Mexico Index^SM to the MSCI Mexico Investable Market Index. Performance shown above reflects the MSCI Mexico Index through November 30, 2007 and the MSCI Mexico Investable Market Index thereafter.


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Communications	44.61	%

Industrial	17.07

Consumer Cyclical	10.67

Consumer Non-Cyclical	10.36

Basic Materials	8.84

Diversified	4.56

Financial	3.78

Short-Term and Other Net Assets	0.11


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
America Movil SAB de CV Series L	25.06	%

Cemex SAB de CV Series CPO	12.38

Telefonos de Mexico SAB de CV Series L	10.35

Fomento Economico Mexicano SAB de CV BD Units	5.72

Grupo Mexico SA de CV Series B	4.91

Grupo Televisa SA Series CPO	4.85

Wal-Mart de Mexico SAB de CV Series V	4.79

Grupo Financiero Banorte SAB de CV Series O	3.53

Carso Global Telecom SAB de CV Class A1	3.29
Grupo Carso SA de CV Series A1	3.12

TOTAL	78.00	%


FUND PERFORMANCE OVERVIEWS		9

Fund Performance Overview

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Pacific ex-Japan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Australia, Hong Kong, New Zealand and Singapore markets, as measured by the MSCI Pacific ex-Japan Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund returned 3.03%, while the Index returned 3.04%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
16.52%	15.53%	16.49%	27.67%	27.04%	27.57%	21.76%	21.54%	21.69%


Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
16.52%	15.53%	16.49%	239.25%	230.89%	237.84%	248.87%	244.94%	247.83%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the 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.


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	43.10	%

Basic Materials	17.65

Industrial	8.92

Consumer Non-Cyclical	8.36

Consumer Cyclical	5.53

Communications	5.40

Diversified	3.99

Energy	3.18

Utilities	2.73

Technology	0.39

Short-Term and Other Net Assets	0.75


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
BHP Billiton Ltd. (Australia)	9.51	%

Commonwealth Bank of Australia (Australia)	3.96

National Australia Bank Ltd. (Australia)	3.35

Westpac Banking Corp. (Australia)	3.12

Australia and New Zealand Banking Group Ltd. (Australia)	2.95

Rio Tinto Ltd. (Australia)	2.86

Woolworths Ltd. (Australia)	2.53

Westfield Group (Australia)	2.19

Woodside Petroleum Ltd. (Australia)	1.92

Sun Hung Kai Properties Ltd. (Hong Kong)	1.88


TOTAL	34.27	%


10		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SINGAPORE INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Singapore Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Singaporean market, as measured by the MSCI Singapore Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 1.82%, while the Index declined 1.79%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
11.25%	9.01%	11.69%	28.69%	28.25%	28.33%	9.13%	8.82%	9.10%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
11.25%	9.01%	11.69%	252.89%	247.00%	248.09%	139.67%	132.75%	138.84%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Financial	49.96	%

Communications	18.95

Industrial	12.27

Diversified	7.19

Consumer Cyclical	5.75

Consumer Non-Cyclical	5.18

Energy	0.61

Short-Term and Other Net Assets	0.09


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Singapore Telecommunications Ltd.	15.18	%

United Overseas Bank Ltd.	10.30

DBS Group Holdings Ltd.	9.45

Oversea-Chinese Banking Corp.	9.20

Keppel Corp. Ltd.	5.54

CapitaLand Ltd.	4.90

Singapore Airlines Ltd.	4.38

Singapore Press Holdings Ltd.	3.77

City Developments Ltd.	3.42

Singapore Exchange Ltd.	3.36


TOTAL	69.50	%


FUND PERFORMANCE OVERVIEWS		11

Fund Performance Overview

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

Performance as of February 29, 2008

The iShares MSCI South Africa Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the South African market, as measured by the MSCI South Africa Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 0.59%, while the Index declined 0.62%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
7.46%	6.21%	7.83%	28.29%	28.25%	29.52%	27.82%	27.72%	29.14%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
7.46%	6.21%	7.83%	247.50%	247.01%	264.50%	247.15%	245.85%	265.62%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.

The Fund’s per share net asset value or” NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the 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.


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Basic Materials	31.32	%

Financial	17.60

Communications	16.20

Energy	13.74

Diversified	6.47

Industrial	5.32

Consumer Cyclical	4.52

Consumer Non-Cyclical	3.58

Short-Term and Other Net Assets	1.25


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Sasol Ltd.	13.74	%

MTN Group Ltd.	10.54

Impala Platinum Holdings Ltd.	10.02

Standard Bank Group Ltd.	6.42

Anglo Platinum Ltd.	5.01

Gold Fields Ltd.	3.86

AngloGold Ashanti Ltd.	3.58

Naspers Ltd.	3.31

FirstRand Ltd.	3.01

Remgro Ltd.	2.66


TOTAL	62.15	%


12		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SOUTH KOREA INDEX FUND

Performance as of February 29, 2008

The iShares MSCI South Korea Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the South Korean market, as measured by the MSCI Korea Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 7.00%, while the Index declined 6.90%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
19.72%	19.20%	20.20%	29.06%	28.05%	30.85%	15.12%	14.79%	15.73%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
19.72%	19.20%	20.20%	258.10%	244.23%	283.60%	200.38%	193.67%	213.06%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the 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.


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Industrial	21.12	%

Financial	17.79

Technology	16.79

Basic Materials	13.45

Consumer Cyclical	12.64

Communications	5.98

Consumer Non-Cyclical	4.30

Energy	3.51

Utilities	2.28

Diversified	0.83

Short-Term and Other Net Assets	1.31


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Samsung Electronics Co. Ltd.	13.79	%

POSCO	8.83

Kookmin Bank	4.46

Shinhan Financial Group Ltd.	3.79

Hyundai Heavy Industries Co. Ltd.	3.59

Hyundai Motor Co. Ltd.	2.30

LG Electronics Inc.	2.16

Samsung Electronics Co. Ltd. Preferred	1.93

Korea Electric Power Corp.	1.93

Shinsegae Co. Ltd.	1.92


TOTAL	44.70	%


FUND PERFORMANCE OVERVIEWS		13

Fund Performance Overview

iSHARES^® MSCI TAIWAN INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Taiwan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Taiwanese market, as measured by the MSCI Taiwan Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund returned 0.17%, while the Index returned 0.60%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
11.78%	14.48%	12.53%	16.28%	16.46%	17.39%	(1.45)%	(1.57)%	(0.51)%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Inception to 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
11.78%	14.48%	12.53%	112.54%	114.20%	122.90%	(10.63)%	(11.47)%	(3.87)%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the 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.


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Technology	33.44	%

Industrial	25.31

Financial	16.39

Basic Materials	12.93

Communications	4.93

Consumer Cyclical	3.88

Energy	1.66

Consumer Non-Cyclical	1.20

Short-Term and Other Net Assets	0.26


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd.	11.24	%

Hon Hai Precision Industry Co. Ltd.	8.18

Cathay Financial Holding Co. Ltd.	3.81

China Steel Corp.	3.51

AU Optronics Corp.	3.27

Nan Ya Plastic Corp.	3.23

Chunghwa Telecom Co. Ltd.	3.21

Formosa Plastics Corp.	3.00

High Tech Computer Corp.	2.73

MediaTek Inc.	2.58


TOTAL	44.76	%


14		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited)

iSHARES^®, INC.

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, 2007 to February 29, 2008.

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES


iShares MSCI Index Fund	Beginning Account Value (9/1/07)^a	Ending Account Value (2/29/08)^a	Annualized Expense Ratio		Expenses Paid During Period^b(9/1/07 to 2/29/08)
Australia
Actual	$1,000.00	$1,033.60	0.51	%	$2.58
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Brazil
Actual	1,000.00	1,378.00	0.64		3.78
Hypothetical (5% return before expenses)	1,000.00	1,021.70	0.64		3.22
BRIC
Actual	1,000.00	949.00	0.72		2.09
Hypothetical (5% return before expenses)	1,000.00	1,021.30	0.72		3.62
Canada
Actual	1,000.00	1,088.10	0.51		2.65
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56


SHAREHOLDER EXPENSES		15

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.


iShares MSCI Index Fund	Beginning Account Value (9/1/07)^a	Ending Account Value (2/29/08)^a	Annualized Expense Ratio		Expenses Paid During Period^b(9/1/07 to 2/29/08)
Chile
Actual	$1,000.00	$1,001.00	0.63	%	$1.88
Hypothetical (5% return before expenses)	1,000.00	1,021.70	0.63		3.17
Hong Kong
Actual	1,000.00	1,063.30	0.51		2.62
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Japan Small Cap
Actual	1,000.00	982.20	0.51		0.98
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Malaysia
Actual	1,000.00	1,200.20	0.51		2.79
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Mexico
Actual	1,000.00	973.60	0.51		2.50
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
Pacific ex-Japan
Actual	1,000.00	1,030.30	0.50		2.52
Hypothetical (5% return before expenses)	1,000.00	1,022.40	0.50		2.51
Singapore
Actual	1,000.00	981.80	0.51		2.51
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56
South Africa
Actual	1,000.00	994.10	0.63		3.12
Hypothetical (5% return before expenses)	1,000.00	1,021.70	0.63		3.17
South Korea
Actual	1,000.00	930.00	0.63		3.02
Hypothetical (5% return before expenses)	1,000.00	1,021.70	0.63		3.17
Taiwan
Actual	1,000.00	1,001.70	0.64		3.19
Hypothetical (5% return before expenses)	1,000.00	1,021.70	0.64		3.22

^a	Account values are based on a start date of November 12, 2007 (commencement of operations) for the iShares MSCI BRIC Index Fund and iShares MSCI Chile Index Fund and a start date of December 20, 2007 (commencement of operations) for the iShares MSCI Japan Small Cap Index Fund.

Except for the actual expenses for the iShares MSCI BRIC Index Fund, iShares MSCI Chile Index Fund and iShares MSCI Japan Small Cap Index Fund, actual and hypothetical 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 (182 days) and divided by the number of days in the year (366 days). Actual expenses for the iShares MSCI BRIC Index Fund and iShares MSCI Chile Index Fund, which commenced operations on November 12, 2007, 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 (109 days) and divided by the number of days in the year (366 days). Actual expenses for the iShares MSCI Japan Small Cap Index Fund, which commenced operations on December 20, 2007, 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 (71 days) and divided by the number of days in the year (366 days).


16		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 98.92%

AIRLINES – 0.44%
Qantas Airways Ltd.	1,638,568	$	6,468,064

			6,468,064

APPAREL – 0.23%
Billabong International Ltd.	289,699		3,414,404

			3,414,404

BANKS – 22.81%
Australia and New Zealand Banking Group Ltd.	3,222,016		66,305,223
Bendigo Bank Ltd.	447,692		4,233,776
Commonwealth Bank of Australia	2,272,877		89,570,451
National Australia Bank Ltd.	2,798,756		75,528,041
St. George Bank Ltd.	477,046		10,620,246
Suncorp-Metway Ltd.	1,606,096		20,897,580
Westpac Banking Corp.	3,215,935		70,150,888

			337,306,205

BEVERAGES – 1.99%
Coca-Cola Amatil Ltd.	922,213		8,298,578
Foster’s Group Ltd.	3,319,553		16,550,236
Lion Nathan Ltd.	516,797		4,616,584

			29,465,398

BIOTECHNOLOGY – 0.49%
Sonic Healthcare Ltd.	541,187		7,264,348

			7,264,348

BUILDING MATERIALS – 1.05%
Boral Ltd.	1,041,995		5,887,080
CSR Ltd.	1,611,366		5,094,579
James Hardie Industries NV	815,439		4,576,570

			15,558,229

CHEMICALS – 0.84%
Incitec Pivot Ltd.	89,238		12,354,037

			12,354,037

COMMERCIAL SERVICES – 2.47%
A.B.C. Learning Centres Ltd.	656,091		1,313,334
Brambles Ltd.	2,455,062		23,975,095
Transurban Group^a	1,869,340		11,278,345

			36,566,774


Security	Shares	Value
COMPUTERS – 0.44%
Computershare Ltd.	812,724	$	6,469,489

			6,469,489

DIVERSIFIED FINANCIAL SERVICES – 3.14%
ASX Ltd.	294,757		11,591,088
Babcock & Brown Ltd.^a	405,145		6,571,385
Challenger Financial Services Group Ltd.^a	627,907		1,292,157
Macquarie Group Ltd.^a	468,982		23,517,944
Perpetual Ltd.^a	65,853		3,387,939

			46,360,513

ELECTRIC – 0.54%
AGL Energy Ltd.	759,613		7,958,070

			7,958,070

ENGINEERING & CONSTRUCTION – 1.73%
Boart Longyear Group^b	2,329,783		4,467,522
Downer EDI Ltd.	264,445		1,541,064
Leighton Holdings Ltd.^a	242,545		10,436,323
WorleyParsons Ltd.	258,534		9,078,400

			25,523,309

ENTERTAINMENT – 1.73%
Aristocrat Leisure Ltd.	609,479		5,929,109
Tabcorp Holdings Ltd.	905,304		12,922,494
Tatts Group Ltd.	1,854,267		6,781,822

			25,633,425

FOOD – 4.11%
Goodman Fielder Ltd.	2,285,398		4,008,303
Woolworths Ltd.	2,093,083		56,758,647

			60,766,950

FOREST PRODUCTS & PAPER – 0.05%
PaperlinX Ltd.	388,930		771,267

			771,267

HEALTH CARE - PRODUCTS – 0.33%
Cochlear Ltd.	96,747		4,878,701

			4,878,701

HOUSEHOLD PRODUCTS & WARES – 0.06%
Pacific Brands Ltd.	432,516		898,157

			898,157


SCHEDULES OF INVESTMENTS		17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 29, 2008


Security	Shares	Value
INSURANCE – 5.12%
AMP Ltd.	3,232,188	$	24,338,279
AXA Asia Pacific Holdings Ltd.	1,470,545		7,978,177
Insurance Australia Group Ltd.	3,141,432		11,078,128
QBE Insurance Group Ltd.	1,527,061		32,239,278

			75,633,862

INVESTMENT COMPANIES – 1.15%
Macquarie Airports	1,196,736		3,929,188
Macquarie Communications Infrastructure Group	374,793		1,633,709
Macquarie Infrastructure Group	4,211,519		11,503,208

			17,066,105

IRON & STEEL – 1.46%
BlueScope Steel Ltd.	1,282,101		13,072,122
OneSteel Ltd.	1,278,728		8,444,623

			21,516,745

LODGING – 0.58%
Crown Ltd.^b	792,022		8,593,946

			8,593,946

MANUFACTURING – 3.98%
Ansell Ltd.	127,785		1,527,595
Futuris Corp. Ltd.	524,769		986,647
Orica Ltd.	530,852		14,300,898
Wesfarmers Ltd.	939,347		33,143,251
Wesfarmers Ltd. Partially Protected Shares	249,722		8,864,739

			58,823,130

MEDIA – 0.51%
John Fairfax Holdings Ltd.	2,059,329		7,474,030

			7,474,030

METAL FABRICATE & HARDWARE – 0.34%
Sims Group Ltd.	167,634		5,103,998

			5,103,998
MINING – 24.14%
Alumina Ltd.	1,944,776		11,733,475
BHP Billiton Ltd.	5,785,439		214,195,072
Fortescue Metals Group Ltd.^b	2,172,520		15,952,575
Iluka Resources Ltd.^a	215,946		727,185
Newcrest Mining Ltd.	780,478		27,771,449
Oxiana Ltd.	2,391,861		8,882,267
Paladin Energy Ltd.^b	934,614		5,463,987
Rio Tinto Ltd.	494,558		63,377,509
Zinifex Ltd.	850,940		8,859,138

			356,962,657


Security	Shares	Value
OIL & GAS – 4.89%
Caltex Australia Ltd.	236,583	$	3,275,236
Origin Energy Ltd.	1,508,758		12,489,936
Santos Ltd.	1,008,391		12,167,911
Woodside Petroleum Ltd.	833,054		44,416,607

			72,349,690

PACKAGING & CONTAINERS – 0.68%
Amcor Ltd.	1,510,223		10,001,651

			10,001,651

PHARMACEUTICALS – 2.19%
CSL Ltd.	948,505		32,383,953

			32,383,953

REAL ESTATE – 7.95%
CFS Retail Property Trust^a	2,539,541		5,036,032
Commonwealth Property Office Fund	1,234,747		1,501,477
Dexus Property Group	5,046,291		7,906,503
Goodman Group^a	2,505,043		10,286,724
GPT Group	3,586,685		10,735,952
ING Industrial Fund^a	854,467		1,670,471
Lend Lease Corp. Ltd.	630,075		8,180,485
Mirvac Group	1,783,180		6,438,428
Stockland Corp. Ltd.	2,502,868		16,505,338
Westfield Group	3,014,096		49,339,244

			117,600,654

REAL ESTATE INVESTMENT TRUSTS – 0.24%
Macquarie Office Trust	3,505,656		3,557,922

			3,557,922

RETAIL – 0.26%
Harvey Norman Holdings Ltd.	919,503		3,913,469

			3,913,469

TELECOMMUNICATIONS – 2.06%
Telstra Corp. Ltd.	5,011,061		22,827,377
Telstra Corp. Ltd. Instalment Receipts	2,488,096		7,633,757

			30,461,134

TRANSPORTATION – 0.92%
Asciano Group	953,117		4,430,982
Toll Holdings Ltd.	952,836		9,135,649

			13,566,631


TOTAL COMMON STOCKS (Cost: $1,440,198,012)			1,462,666,917


18		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 29, 2008


Security	Shares	Value
SHORT-TERM INVESTMENTS – 4.55%

MONEY MARKET FUNDS – 4.55%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	33,920	$	33,920
BGI Cash Premier Fund LLC 3.63%^c,d,e	67,181,173		67,181,173

			67,215,093


TOTAL SHORT-TERM INVESTMENTS (Cost: $67,215,093)			67,215,093


TOTAL INVESTMENTS IN SECURITIES – 103.47% (Cost: $1,507,413,105)			1,529,882,010

Other Assets, Less Liabilities – (3.47)%			(51,269,712	)


NET ASSETS – 100.00%		$	1,478,612,298

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

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		19

Schedule of Investments (Unaudited)

iSHARES^® MSCI BRAZIL INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 43.10%

AEROSPACE & DEFENSE – 1.10%
Empresa Brasileira de Aeronautica SA	7,375,932	$	82,439,453

			82,439,453
AGRICULTURE – 0.63%
Souza Cruz SA	1,619,100		47,136,779

			47,136,779
BANKS – 4.25%
Banco do Brasil SA	3,058,300		51,128,410
Banco Nossa Caixa SA	539,700		7,819,426
Unibanco – Uniao de Bancos Brasileiros SA Units	19,249,320		260,679,733

			319,627,569
COMMERCIAL SERVICES – 0.69%
Companhia de Concessoes Rodoviarias	2,158,800		36,831,094
Localiza Rent A Car SA	1,278,230		15,042,447

			51,873,541
COSMETICS & PERSONAL CARE – 0.34%
Natura Cosmeticos SA	2,518,600		25,692,401

			25,692,401
DIVERSIFIED FINANCIAL SERVICES – 2.00%
Bolsa de Mercadorias & Futuros – BM&F SA	3,877,900		41,347,449
Bovespa Holding SA	4,317,600		67,661,975
Redecard SA	2,698,500		41,490,834

			150,500,258
ELECTRIC – 1.96%
Centrais Eletricas Brasileiras SA	3,598,099		52,918,227
CPFL Energia SA	2,319,600		50,754,110
EDP Energias do Brasil SA	1,259,300		19,511,331
Tractebel Energia SA	1,978,900		24,399,802

			147,583,470
FOOD – 0.93%
Cosan SA Industria e Comercio	750,590		12,827,943
JBS SA^a	4,214,526		16,374,592
Perdigao SA	1,666,500		40,514,379

			69,716,914


Security	Shares	Value
HEALTH CARE - SERVICES – 0.14%
Diagnosticos da America SA	539,700	$	10,213,128

			10,213,128
HOME BUILDERS – 0.31%
MRV Engenharia e Participacoes SA^a	992,974		23,194,839

			23,194,839
INTERNET – 0.50%
B2W – Companhia Global do Varejo	899,530		37,768,557

			37,768,557
IRON & STEEL – 4.32%
Companhia Siderurgica Nacional	5,664,252		211,362,686
Gerdau SA	1,306,900		35,937,818
MMX Mineracao e Metalicos SA^a	77,900		41,460,674
Usinas Siderurgicas de Minas Gerais SA	599,700		35,996,186

			324,757,364
MINING – 9.25%
Companhia Vale do Rio Doce ADR	19,970,121		695,759,016

			695,759,016
OIL & GAS – 12.58%
Petroleo Brasileiro SA	16,377,837		946,253,504

			946,253,504
REAL ESTATE – 0.94%
Cyrela Brazil Realty SA	2,878,400		45,959,077
Gafisa SA^a	1,279,300		25,003,468

			70,962,545
RETAIL – 0.57%
Lojas Renner SA	2,158,800		42,856,840

			42,856,840
TELECOMMUNICATIONS – 1.20%
Brasil Telecom Participacoes SA	957,482		28,169,562
GVT (Holding) SA^a	980,203		21,441,578
Tele Norte Leste Participacoes SA	1,076,538		40,680,531

			90,291,671


20		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 29, 2008


Security	Shares	Value
TRANSPORTATION – 0.91%
ALL – America Latina Logistica SA	6,116,600	$	68,725,843

			68,725,843

WATER – 0.48%
Companhia de Saneamento Basico do Estado de Sao Paulo	1,534,000		36,467,652

			36,467,652


TOTAL COMMON STOCKS (Cost: $1,781,160,112)			3,241,821,344

PREFERRED STOCKS – 56.60%

AIRLINES – 0.44%
Gol Linhas Aereas Inteligentes SA	739,600		12,806,321
Tam SA	957,900		20,098,339

			32,904,660
BANKS – 9.26%
Banco Bradesco SA	11,260,200		351,589,923
Banco Bradesco SA New^b	156,767		4,894,913
Banco do Estado do Rio Grande do Sul SA	1,516,410		8,922,696
Banco Itau Holding Financeira SA	13,132,740		330,842,534

			696,250,066

BEVERAGES – 2.96%
Companhia de Bebidas das Americas	2,698,591		222,781,374

			222,781,374

BUILDING MATERIALS – 0.34%
Duratex SA	1,259,300		25,692,401

			25,692,401

CHEMICALS – 0.96%
Braskem SA Class A	2,698,536		22,884,096
Fertilizantes Fosfatados SA	329,926		16,193,884
Ultrapar Participacoes SA	882,900		32,997,800

			72,075,780


Security	Shares	Value
ELECTRIC – 3.46%
Centrais Eletricas Brasileiras SA Class B	3,058,300	$	44,852,655
Companhia Energetica de Minas Gerais	4,497,500		85,641,336
Companhia Energetica de Sao Paulo Class B^a	2,358,700		66,953,046
Companhia Paranaense de Energia Class B	1,799,000		29,266,996
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B	413,770,000		33,769,603

			260,483,636

FOOD – 0.71%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar	573,100		12,370,284
Sadia SA	7,196,000		40,682,295

			53,052,579

FOREST PRODUCTS & PAPER – 2.24%
Aracruz Celulose SA Class B	7,735,700		55,947,730
Klabin SA	8,995,000		30,426,612
Suzano Bahia Sul Papel e Celulose SA	1,699,100		26,576,697
Votorantim Celulose e Papel SA	1,799,100		55,824,232

			168,775,271

HOLDING COMPANIES - DIVERSIFIED – 0.91%
Itausa – Investimentos Itau SA	10,770,800		68,471,969

			68,471,969

INVESTMENT COMPANIES – 0.62%
Bradespar SA	1,799,000		46,810,172

			46,810,172

IRON & STEEL – 4.39%
Gerdau SA	4,677,473		152,854,617
Metalurgica Gerdau SA	704,200		31,024,778
Usinas Siderurgicas de Minas Gerais SA Class A	2,518,600		145,962,626

			329,842,021


SCHEDULES OF INVESTMENTS		21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 29, 2008


Security	Shares	Value
MEDIA – 0.42%
Net Servicos de Comunicacao SA^a	2,878,492	$	31,678,732

			31,678,732

MINING – 11.35%
Companhia Vale do Rio Doce Class A	28,963,900		854,015,407

			854,015,407

OIL & GAS – 13.91%
Petroleo Brasileiro SA	21,725,100		1,046,427,791

			1,046,427,791

RETAIL – 0.65%
Lojas Americanas SA	5,397,000		49,150,680

			49,150,680

TELECOMMUNICATIONS – 3.85%
Brasil Telecom Participacoes SA	3,777,900		52,725,275
Brasil Telecom SA	2,258,800		25,085,904
Tele Norte Leste Participacoes SA	3,954,939		98,721,452
Telemar Norte Leste SA Class A	426,880		22,972,253
Telesp Celular Participacoes SA	8,095,583		48,640,522
TIM Participacoes SA	10,074,400		41,346,148

			289,491,554

TEXTILES – 0.13%
Companhia de Tecidos Norte de Minas	1,665,508		9,406,033

			9,406,033


TOTAL PREFERRED STOCKS (Cost: $2,321,057,751)			4,257,310,126


Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.18%

MONEY MARKET FUNDS – 0.18%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	13,507,560	$	13,507,560

			13,507,560


TOTAL SHORT-TERM INVESTMENTS (Cost: $13,507,560)			13,507,560


TOTAL INVESTMENTS IN SECURITIES – 99.88% (Cost: $4,115,725,423)			7,512,639,030

Other Assets, Less Liabilities – 0.12%			8,878,302


NET ASSETS – 100.00%		$	7,521,517,332

ADR – American Depositary Receipts

^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.


22		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI BRIC INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 80.86%

BRAZIL – 12.99%
ALL – America Latina Logistica SA	21,000	$	235,955
B2W – Companhia Global do Varejo	3,000		125,961
Banco do Brasil SA	18,000		300,923
Bolsa de Mercadorias & Futuros – BM&F SA	15,000		159,935
Bovespa Holding SA	15,000		235,068
Brasil Telecom Participacoes SA	3,000		88,261
Centrais Eletricas Brasileiras SA	15,000		220,609
Companhia de Concessoes Rodoviarias	9,000		153,548
Companhia Siderurgica Nacional	18,000		671,674
Companhia Vale do Rio Doce	69,000		2,393,578
Cosan SA Industria e Comercio	6,000		102,543
CPFL Energia SA	6,000		131,283
Cyrela Brazil Realty SA	12,000		191,603
Empresa Brasileira de Aeronautica SA	18,000		201,183
Gafisa SA^a	6,000		117,268
Gerdau SA	6,000		164,991
GVT (Holding) SA^a	3,000		65,624
JBS SA^a	6,000		23,312
MMX Mineracao e Metalicos SA^a	200		106,446
MRV Engenharia e Participacoes SA^a	3,000		70,077
Perdigao SA	9,000		218,800
Petroleo Brasileiro SA	54,000		3,119,929
Redecard SA	12,000		184,506
Souza Cruz SA	6,000		174,678
Tele Norte Leste Participacoes SA	3,000		113,365
Tractebel Energia SA	12,000		147,960
Unibanco – Uniao de Bancos Brasileiros SA Units	54,000		731,283

			10,450,363

CHINA – 32.74%
Agile Property Holdings Ltd.	120,000		170,577
Air China Ltd. Class H^b	180,000		174,664
Alibaba.com Ltd.^a,b	45,000		109,078
Aluminum Corp. of China Ltd. Class H	180,000		363,209
Angang New Steel Co. Ltd. Class H^b	60,000		161,940
Bank of China Ltd. Class H^b	1,050,000		450,734


Security	Shares	Value
Bank of Communications Co. Ltd. Class H	330,000	$	405,043
Beijing Capital International Airport Co. Ltd. Class H	60,000		64,699
BYD Co. Ltd. Class H^b	54,600		103,437
Chaoda Modern Agriculture (Holdings) Ltd.	120,150		136,972
China Agri-Industries Holdings Ltd^a	180,000		133,716
China CITIC Bank Class H^a,b	330,000		183,224
China Coal Energy Co. Class H	180,000		408,552
China Communications Construction Co. Ltd. Class H	240,000		640,049
China Construction Bank Class H	1,350,000		1,049,719
China COSCO Holdings Co. Ltd. Class H	150,000		454,011
China Eastern Airlines Corp. Ltd. Class H^a	60,000		38,866
China Everbright Pacific Ltd.^a,b	60,000		141,890
China High Speed Transmission Equipment Group Co. Ltd.^a	30,000		55,060
China Life Insurance Co. Ltd. Class H	360,000		1,455,148
China Mengniu Dairy Co. Ltd.	60,000		165,025
China Merchants Bank Co. Ltd. Class H	150,000		535,945
China Merchants Holdings (International) Co. Ltd.	60,000		330,821
China Mobile Ltd.	300,000		4,626,863
China National Building Material Co. Ltd. Class H	60,000		193,943
China Netcom Group Corp. (Hong Kong) Ltd.	75,000		237,609
China Oilfield Services Ltd. Class H	120,000		240,597
China Overseas Land & Investment Ltd.	240,000		477,492
China Petroleum & Chemical Corp. Class H	840,000		955,447
China Railway Group Ltd. Class H^a	150,000		179,291
China Resources Enterprises Ltd.	60,000		217,848
China Resources Land Ltd.	120,000		226,099
China Resources Power Holdings Co. Ltd.	120,000		305,064
China Shenhua Energy Co. Ltd. Class H	165,000		865,223


SCHEDULES OF INVESTMENTS		23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 29, 2008


Security	Shares	Value
China Shipping Development Co. Ltd. Class H	60,000	$	191,629
China Telecom Corp. Ltd. Class H	540,000		412,947
China Travel International Investment Hong Kong Ltd.	300,000		165,796
China Unicom Ltd.	180,000		396,522
CITIC Pacific Ltd.	30,000		165,603
CNOOC Ltd.	780,000		1,345,337
Country Garden Holdings Co.^a	180,000		170,731
Datang International Power Generation Co. Ltd. Class H	180,000		124,000
Denway Motors Ltd.	240,000		124,000
Dongfeng Motor Group Co. Ltd. Class H	180,000		112,433
GOME Electrical Appliances Holdings Ltd.	90,000		201,269
Guangdong Investment Ltd.	180,000		97,395
Guangshen Railway Co. Ltd. Class H	60,000		39,714
Guangzhou Investment Co. Ltd.	300,000		72,102
Guangzhou R&F Properties Co. Ltd. Class H^b	60,000		187,773
Harbin Power Equipment Co. Ltd. Class H	60,000		136,801
Hengan International Group Co. Ltd. Class H^b	60,000		239,055
Hopson Development Holdings Ltd.^b	60,000		102,716
Huaneng Power International Inc.	120,000		100,557
Hunan Non-Ferrous Metals Corp. Ltd. Class H	60,000		31,386
Industrial and Commercial Bank of China Class H	1,830,000		1,303,002
Jiangsu Expressway Co. Ltd. Class H	120,000		115,209
Jiangxi Copper Co. Ltd. Class H^b	90,000		216,074
KWG Property Holding Ltd.^a	60,000		60,458
Lenovo Group Ltd.	180,000		124,925
Li Ning Co. Ltd.^b	60,000		189,701
Maanshan Iron & Steel Co. Ltd. Class H^b	120,000		76,806
Nine Dragons Paper Holdings Ltd.	90,000		161,940
PetroChina Co. Ltd. Class H	960,000		1,460,855


Security	Shares	Value
PICC Property & Casualty Co. Ltd. Class H^b	180,000	$	195,716
Ping An Insurance (Group) Co. of China Ltd. Class H	75,000		586,069
Shanghai Electric Group Corp. Class H	180,000		131,403
Shanghai Industrial Holdings Ltd.^b	30,000		124,347
Shimao Property Holdings Ltd.	90,000		185,537
Sinofert Holdings Ltd.^b	120,000		122,303
Sinopec Shanghai Petrochemical Co. Ltd. Class H	60,000		29,072
Yanzhou Coal Mining Co. Ltd. Class H	120,000		203,582
Zhejiang Expressway Co. Ltd. Class H	120,000		120,607
Zijin Mining Group Co. Ltd. Class H	180,000		246,612

			26,329,839

INDIA – 14.64%
Ambuja Cements Ltd. SP GDR	110,820		334,676
Dr. Reddy’s Laboratories Ltd. ADR	56,310		805,796
HDFC Bank Ltd. ADR	10,080		1,099,829
Hindalco Industries Ltd. GDR Reg S^c	136,440		659,005
ICICI Bank Ltd. SP ADR	33,450		1,734,048
Infosys Technologies Ltd. SP ADR	42,450		1,652,154
MahanagarTelephone Nigam Ltd. ADR	71,190		434,971
Reliance Industries Ltd. GDR^c	23,790		2,896,432
Satyam Computer Services Ltd. ADR	42,870		1,070,893
Tata Communications Ltd. ADR	15,660		388,368
Wipro Ltd. ADR	60,720		700,709

			11,776,881

RUSSIA – 20.49%
Comstar United Telesystems GDR	16,200		160,380
JSC MMC Norilsk Nickel ADR	42,840		1,257,354
LUKOIL SP ADR	23,520		1,749,888
Mechel OAO ADR	1,770		233,729
Mobile TeleSystems SP ADR	9,000		738,540
Novolipetsk Steel GDR Reg S	4,380		200,692
OAO Gazprom SP ADR Reg S	118,598		6,024,778
OAO NOVATEK SP GDR Reg S	4,590		349,758
OAO Rosneft Oil Co. GDR Reg S	64,290		525,892
OAO Tatneft SP ADR Reg S	3,270		410,385
Pharmstandard GDR^a	1,500		41,550


24		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^®MSCI BRIC INDEX FUND

February 29, 2008


Security	Shares	Value
PIK Group GDR Reg S^a	3,000	$	85,500
Polyus Gold SP ADR	3,300		181,500
RAO Unified Energy System of Russia GDR Reg S^a	5,760		671,040
Rostelecom SP ADR	3,000		205,050
Sberbank GDR Reg S	4,320		1,642,827
Severstal GDR Reg S	9,930		253,215
Sistema JSFC SP GDR Reg S	5,250		189,000
Surgutneftegaz SP ADR	8,160		375,768
TMK OAO GDR Reg S	2,970		102,465
Vimpel-Communications SP ADR	23,220		806,431
VTB Bank OJSC GDR Reg S^a	25,500		191,250
Wimm-Bill-Dann Foods OJSC ADR	780		82,103

			16,479,095


TOTAL COMMON STOCKS (Cost: $67,630,737)			65,036,178

PREFERRED STOCKS – 18.96%

BRAZIL – 18.96%
Aracruz Celulose SA Class B	15,000		108,486
Banco Bradesco SA	51,000		1,592,430
Banco Bradesco SA New^d	305		9,523
Banco do Estado do Rio Grande do Sul SA	3,000		17,652
Banco Itau Holding Financeira SA	48,000		1,209,225
Bradespar SA	18,000		468,362
Brasil Telecom Participacoes SA	15,000		209,344
Brasil Telecom SA	6,000		66,635
Braskem SA Class A	9,000		76,322
Centrais Eletricas Brasileiras SA Class B	9,000		131,993
Companhia de Bebidas das Americas	9,000		742,992
Companhia Energetica de Minas Gerais	12,000		228,504
Companhia Energetica de Sao Paulo Class B^a	9,000		255,470
Companhia Paranaense de Energia Class B	6,000		97,611
Companhia Vale do Rio Doce Class A	96,000		2,830,609
Duratex SA	6,000		122,413
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B	600,000		48,969
Fertilizantes Fosfatados SA	750		36,812


Security	Shares	Value
Gerdau SA	15,000	$	490,183
Gol Linhas Aereas Inteligentes SA	3,000		51,946
Itausa – Investimentos Itau SA	90,000		572,147
Klabin SA	30,000		101,478
Lojas Americanas SA	18,000		163,927
Metalurgica Gerdau SA	3,000		132,170
Net Servicos de Comunicacao SA^a	12,000		132,064
Petroleo Brasileiro SA	78,000		3,757,008
Sadia SA	30,000		169,604
Tam SA	3,000		62,945
Tele Norte Leste Participacoes SA	12,000		299,539
Telemar Norte Leste SA Class A	3,000		161,443
Telesp Celular Participacoes SA	30,000		180,248
TIM Participacoes SA	27,000		110,810
Usinas Siderurgicas de Minas Gerais SA Class A	9,000		521,585
Votorantim Celulose e Papel SA	3,000		93,087

			15,253,536


TOTAL PREFERRED STOCKS (Cost: $14,529,739)			15,253,536

SHORT-TERM INVESTMENTS – 1.84%

MONEY MARKET FUNDS – 1.84%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^e,f	71,757		71,757
BGI Cash Premier Fund LLC 3.63%^e,f,g	1,406,050		1,406,050

			1,477,807


TOTAL SHORT-TERM INVESTMENTS (Cost: $1,477,807)			1,477,807


TOTAL INVESTMENTS IN SECURITIES – 101.66% (Cost: $83,638,283)			81,767,521

Other Assets, Less Liabilities – (1.66)%			(1,335,544	)


NET ASSETS – 100.00%		$	80,431,977


SCHEDULES OF INVESTMENTS		25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 29, 2008

ADR – American Depositary Receipts

GDR – Global Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

SP GDR – Sponsored Global Depositary Receipts

^a	Non-income earning security.

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

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

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

^e	Affiliated issuer. See Note 2.

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

^g	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


26		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI CANADA INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.74%

ADVERTISING – 0.18%
Aeroplan Income Fund	146,786	$	3,034,936
Aeroplan Income Fund (U.S.)^a	16,282		336,645

			3,371,581

AEROSPACE & DEFENSE – 0.27%
CAE Inc.	411,072		5,204,506

			5,204,506

AIRLINES – 0.01%
Jazz Air Income Fund^a	20,078		163,387

			163,387

APPAREL – 0.37%
Gildan Activewear Inc.^b	185,681		7,020,387

			7,020,387

AUTO PARTS & EQUIPMENT – 0.56%
Magna International Inc. Class A	144,923		10,680,562

			10,680,562

BANKS – 16.79%
Bank of Montreal	815,852		41,400,699
Bank of Nova Scotia	1,609,531		78,537,356
Canadian Imperial Bank of Commerce	617,418		42,104,705
National Bank of Canada	257,315		12,763,286
Royal Bank of Canada	2,111,746		106,492,888
Toronto-Dominion Bank (The)	588,105		39,571,288

			320,870,222

BEVERAGES – 0.01%
Cott Corp.^b	59,009		135,563

			135,563

CHEMICALS – 5.64%
Agrium Inc.	218,836		16,275,285
Methanex Corp.	162,439		4,718,593
NOVA Chemicals Corp.	136,518		4,177,501
Potash Corp. of Saskatchewan Inc.	517,071		82,613,100

			107,784,479

COAL – 0.63%
Fording Canadian Coal Trust	241,680		12,000,100

			12,000,100


Security	Shares	Value
COMMERCIAL SERVICES – 0.18%
Ritchie Bros. Auctioneers Inc.	48,708	$	3,537,969

			3,537,969
COMPUTERS – 4.80%
CGI Group Inc.^b	477,227		5,311,185
Research In Motion Ltd.^b	824,506		86,314,683

			91,625,868

DIVERSIFIED FINANCIAL SERVICES – 0.83%
CI Financial Income Fund	101,939		2,404,320
IGM Financial Inc.	194,982		8,530,711
TSX Group Inc.	109,898		4,968,637

			15,903,668
ELECTRIC – 1.00%
Fortis Inc.	250,867		7,184,827
TransAlta Corp.	331,132		11,870,578

			19,055,405
ELECTRONICS – 0.06%
Celestica Inc.^b	165,476		1,086,390

			1,086,390

ENGINEERING & CONSTRUCTION – 0.57%
SNC-Lavalin Group Inc.	247,155		10,856,247

			10,856,247
FOOD – 0.91%
George Weston Ltd.	84,954		4,005,693
Loblaw Companies Ltd.	177,997		5,255,946
Metro Inc. Class A	78,672		1,697,304
Saputo Inc.	233,001		6,420,969

			17,379,912

FOREST PRODUCTS & PAPER – 0.29%
Canfor Corp.^b	76,408		624,121
Sino-Forest Corp.^b	254,382		4,929,723

			5,553,844
GAS – 0.19%
Canadian Utilities Ltd. Class A	78,868		3,619,682

			3,619,682

HAND & MACHINE TOOLS – 0.44%
Finning International Inc.	293,595		8,318,625

			8,318,625


SCHEDULES OF INVESTMENTS		27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 29, 2008


Security	Shares	Value
HEALTH CARE - SERVICES – 0.18%
MDS Inc.^b	200,986	$	3,381,917

			3,381,917

HOLDING COMPANIES - DIVERSIFIED – 1.90%
Brookfield Asset Management Inc. Class A	810,149		24,087,746
Onex Corp.	166,342		5,806,854
Sherritt International Corp.	381,086		6,459,085

			36,353,685

INSURANCE – 10.54%
Fairfax Financial Holdings Ltd.	27,781		8,506,194
Great-West Lifeco Inc.	438,554		13,809,481
ING Canada Inc.	29,775		1,216,051
Manulife Financial Corp.	2,532,282		98,664,367
Power Corp. of Canada	563,825		19,809,290
Power Financial Corp.	404,204		14,853,280
Sun Life Financial Inc.	926,773		44,616,446

			201,475,109

IRON & STEEL – 0.19%
Gerdau Ameristeel Corp.	241,629		3,594,583

			3,594,583

MANUFACTURING – 0.70%
Bombardier Inc. Class B^b	2,341,567		13,460,305

			13,460,305

MEDIA – 3.32%
Astral Media Inc. Class A	83,659		3,207,469
Rogers Communications Inc. Class B	817,879		32,442,923
Shaw Communications Inc. Class B	567,769		11,089,872
Thomson Corp.	367,237		12,287,479
Yellow Pages Income Fund	411,167		4,496,221

			63,523,964

MINING – 14.11%
Agnico-Eagle Mines Ltd.^b	224,126		15,561,127
Barrick Gold Corp.	1,419,887		74,227,297
Cameco Corp.	567,654		22,343,334
Eldorado Gold Corp.^b	564,103		3,933,861
First Quantum Minerals Ltd.	110,675		10,319,421
Goldcorp Inc.	1,154,303		50,077,940
Inmet Mining Corp.	71,218		6,198,307


Security	Shares	Value
Ivanhoe Mines Ltd.^b	399,984	$	5,239,733
Kinross Gold Corp.^b	984,929		24,487,463
Lundin Mining Corp.^b	548,182		4,707,178
Pan American Silver Corp.^b	119,118		4,794,396
Teck Cominco Ltd. Class B	707,126		28,352,908
Uranium One Inc.^b	376,261		1,993,868
Yamana Gold Inc.	959,830		17,356,125

			269,592,958

OIL & GAS – 24.15%
Addax Petroleum Corp.	70,162		3,223,698
ARC Energy Trust	167,458		4,028,293
Canadian Natural Resources Ltd.	882,563		66,467,068
Canadian Oil Sands Trust	382,695		16,294,039
EnCana Corp.	1,228,424		94,107,262
Enerplus Resources Fund	261,312		11,326,010
Ensign Resource Service Group	213,223		3,988,407
First Calgary Petroleums Ltd.^b	215,930		696,691
Harvest Energy Trust	227,476		5,595,157
Husky Energy Inc.	417,187		17,762,608
Imperial Oil Ltd.	522,939		29,553,475
Nexen Inc.	777,666		24,376,502
Niko Resources Ltd.	71,081		6,714,738
OPTI Canada Inc.^b	316,998		5,599,413
Penn West Energy Trust	600,576		17,034,921
Petro-Canada	794,122		38,197,966
Precision Drilling Trust	99,564		2,221,231
Provident Energy Trust	394,141		4,334,183
Suncor Energy Inc.	756,017		78,349,730
Talisman Energy Inc.	1,713,620		29,271,863
UTS Energy Corp.^b	386,054		2,294,093

			461,437,348

OIL & GAS SERVICES – 0.18%
Trican Well Service Ltd.	200,702		3,526,732

			3,526,732

PHARMACEUTICALS – 0.18%
Biovail Corp.	238,198		3,397,617

			3,397,617

PIPELINES – 3.10%
Enbridge Inc.	571,069		23,643,912
TransCanada Corp.	881,003		35,567,550

			59,211,462


28		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 29, 2008


Security	Shares	Value
REAL ESTATE – 0.40%
Brookfield Properties Corp.	354,525	$	6,645,986
MI Developments Inc. Class A	39,335		919,718

			7,565,704

REAL ESTATE INVESTMENT TRUSTS – 0.18%
RioCan Real Estate Investment Trust	168,474		3,529,800

			3,529,800

RETAIL – 1.66%
Alimentation Couche-Tard Inc. Class B	229,130		3,906,954
Canadian Tire Corp. Ltd. Class A	127,925		7,996,292
RONA Inc.^b	189,860		2,696,501
Shoppers Drug Mart Corp.	334,185		17,166,477

			31,766,224

SOFTWARE – 0.07%
Open Text Corp.^b	41,346		1,338,658

			1,338,658

TELECOMMUNICATIONS – 1.96%
BCE Inc.	434,733		15,833,088
Nortel Networks Corp.^b	710,059		6,147,948
TELUS Corp.	94,262		4,323,309
TELUS Corp. NVS	247,825		11,138,714

			37,443,059

TRANSPORTATION – 3.19%
Canadian National Railway Co.	803,160		42,683,764
Canadian Pacific Railway Ltd.	250,997		18,334,006

			61,017,770


TOTAL COMMON STOCKS (Cost: $1,725,787,209)			1,905,785,292


Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.09%

MONEY MARKET FUNDS – 0.09%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	1,645,862	$	1,645,862

			1,645,862


TOTAL SHORT-TERM INVESTMENTS (Cost: $1,645,862)			1,645,862


TOTAL INVESTMENTS IN SECURITIES – 99.83% (Cost: $1,727,433,071)			1,907,431,154

Other Assets, Less Liabilities – 0.17%			3,230,490


NET ASSETS – 100.00%		$	1,910,661,644

NVS – Non-Voting Shares

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

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS		29

Schedule of Investments (Unaudited)

iSHARES^®MSCI CHILE INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 95.06%

AIRLINES – 3.79%
Lan Airlines SA	120,924	$	1,663,933

			1,663,933

BANKS – 7.99%
Banco de Credito e Inversiones	27,216		898,791
Banco Santander Chile SA	42,427,134		2,129,717
CorpBanca SA	72,913,824		481,586

			3,510,094

BEVERAGES – 3.54%
Compania Cervecerias Unidas SA	116,964		811,159
Vina Concha y Toro SA	367,506		743,572

			1,554,731

BUILDING MATERIALS – 0.76%
Cementos Bio Bio SA	84,906		201,886
Salfacorp SA^a	52,992		133,002

			334,888

COMPUTERS – 0.64%
Sonda SA	211,104		283,511

			283,511

ELECTRIC – 22.39%
Almendral SA	8,415,990		939,413
Colbun SA	5,377,734		846,542
Empresa Electrica del Norte Grande SA^a	81,324		125,331
Empresa Electrica del Norte Grande SA^a	81,324		125,331
Empresa Nacional de Electricidad SA	2,935,530		4,200,908
Enersis SA	11,680,002		3,728,672

			9,840,866

FOOD – 9.33%
Centros Comerciales Sudamericanos SA	715,320		2,945,000
Distribucion y Servicio D&S SA	2,342,286		1,051,840
Empresas Iansa SA	1,346,526		102,277

			4,099,117

FOREST PRODUCTS & PAPER – 8.24%
Empresas CMPC SA	80,424		3,072,051
Masisa SA	2,585,898		549,392

			3,621,443


Security	Shares	Value
HEALTH CARE - SERVICES – 0.72%
Banmedica SA	249,696	$	317,748

			317,748

HOLDING COMPANIES - DIVERSIFIED – 16.27%
Empresas Copec SA	407,142		6,991,717
Sigdo Koppers SA	182,232		160,483

			7,152,200

INVESTMENT COMPANIES – 1.08%
Administradora de Fondos de Pensiones Provida SA	189,576		473,721

			473,721

IRON & STEEL – 4.79%
CAP SA	66,636		2,105,252

			2,105,252

METAL FABRICATE & HARDWARE – 0.79%
Madeco SA	3,065,292		347,891

			347,891

REAL ESTATE – 0.84%
Parque Arauco SA	333,000		370,236

			370,236

RETAIL – 5.72%
La Polar SA	187,596		1,179,119
SACI Falabella SA	257,094		1,335,818

			2,514,937

TELECOMMUNICATIONS – 5.55%
Compania de Telecomunicaciones de Chile SA Class A	477,378		972,182
Empresa Nacional de Telecomunicaciones SA	83,358		1,468,166

			2,440,348

TRANSPORTATION – 1.50%
Compania SudAmericanade Vapores SA^a	333,900		660,875

			660,875

WATER – 1.12%
Inversiones Aguas Metropolitanas SA^a	411,498		493,751

			493,751


TOTAL COMMON STOCKS (Cost: $41,785,567)			41,785,542
TOTAL COMMON STOCKS (Cost: $41,785,567)			41,785,542


30		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CHILE INDEX FUND

February 29, 2008


Security	Shares	Value
PREFERRED STOCKS – 4.82%

CHEMICALS – 4.82%
Sociedad Quimica y Minera de Chile SA Class B	108,774	$	2,119,394

			2,119,394


TOTAL PREFERRED STOCKS (Cost: $1,934,639)			2,119,394

SHORT-TERM INVESTMENTS – 0.11%

MONEY MARKET FUNDS – 0.11%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^b,c	48,379		48,379

			48,379


TOTAL SHORT-TERM INVESTMENTS (Cost: $48,379)			48,379


TOTAL INVESTMENTS IN SECURITIES – 99.99% (Cost: $43,768,585)			43,953,315

Other Assets, Less Liabilities – 0.01%			5,060


NET ASSETS – 100.00%		$	43,958,375

^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		31

Schedule of Investments (Unaudited)

iSHARES^® MSCI HONG KONG INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.84%

AIRLINES – 1.02%
Cathay Pacific Airways Ltd.^a	11,886,000	$	24,808,806

			24,808,806

APPAREL – 0.63%
Yue Yuen Industrial Holdings Ltd.^a	5,094,000		15,254,535

			15,254,535

BANKS – 11.99%
Bank of East Asia Ltd.	11,886,100		65,306,983
BOC Hong Kong (Holdings) Ltd.	31,413,000		78,727,806
CITIC International Financial Holdings Ltd.	3,396,000		1,732,776
Hang Seng Bank Ltd.^a	6,282,600		121,200,447
Wing Hang Bank Ltd.	1,698,000		25,075,052

			292,043,064

CHEMICALS – 0.95%
Kingboard Chemical Holdings Co. Ltd.	5,094,000		23,045,478

			23,045,478

DISTRIBUTION & WHOLESALE – 7.60%
Esprit Holdings Ltd.	8,490,000		109,335,081
Li & Fung Ltd.^a	20,377,000		75,949,053

			185,284,134

DIVERSIFIED FINANCIAL SERVICES – 7.46%
Hong Kong Exchanges and Clearing Ltd.^a	9,339,000		181,723,198

			181,723,198

ELECTRIC – 6.36%
CLP Holdings Ltd.	11,037,200		87,240,500
Hongkong Electric Holdings Ltd.	11,886,000		67,827,032

			155,067,532

ENGINEERING & CONSTRUCTION – 3.49%
Cheung Kong Infrastructure Holdings Ltd.^a	3,396,000		13,574,136
Hong Kong Aircraft Engineering Co. Ltd.^a	679,200		15,189,065
New World Development Co. Ltd.^a	20,376,800		56,175,559

			84,938,760


Security	Shares	Value
FOOD – 0.71%
Tingyi (Cayman Islands) Holding Corp.^a	13,584,000	$	17,371,402

			17,371,402

FOREST PRODUCTS & PAPER – 0.39%
Lee & Man Paper Manufacturing Ltd.^a	3,396,000		9,624,106

			9,624,106

GAS – 3.71%
Hong Kong and China Gas Co. Ltd. (The)	30,564,829		90,351,200

			90,351,200

HOLDING COMPANIES - DIVERSIFIED – 13.76%
C C Land Holdings Ltd.^a	4,206,000		4,432,689
Hutchison Whampoa Ltd.	18,678,800		178,129,971
Melco International Development Ltd.^a	6,792,000		9,811,787
NWS Holdings Ltd.	1,698,000		4,997,552
Swire Pacific Ltd. Class A	6,792,000		78,782,364
Wharf Holdings Ltd. (The)	11,362,500		59,071,302

			335,225,665

INTERNET – 1.78%
Tencent Holdings Ltd.^a	6,792,000		43,297,565

			43,297,565

LODGING – 1.29%
Shangri-La Asia Ltd.^a	10,190,000		31,497,304

			31,497,304

MANUFACTURING – 0.30%
Fosun International Ltd.^b	9,339,000		7,393,758

			7,393,758

MEDIA – 0.41%
Television Broadcasts Ltd.	1,698,000		10,038,750

			10,038,750

REAL ESTATE – 28.49%
Cheung Kong (Holdings) Ltd.	12,683,000		193,978,266
Chinese Estates Holdings Ltd.^a	3,396,000		5,071,751
Hang Lung Development Co. Ltd.	3,396,000		15,887,413
Hang Lung Properties Ltd.	18,678,000		69,016,406


32		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 29, 2008


Security	Shares	Value
Henderson Land Development Co. Ltd.^a	8,490,332	$	67,545,970
Hopewell Holdings Ltd.	5,094,000		23,634,709
Hysan Development Co. Ltd.^a	5,094,000		14,305,219
Kerry Properties Ltd.^a	5,094,000		34,764,628
Shui On Land Ltd.	15,282,000		14,887,903
Shun Tak Holdings Ltd.^a	10,189,000		15,269,128
Sino Land Co. Ltd.^a	13,584,000		34,882,474
Sun Hung Kai Properties Ltd.	11,194,000		199,978,922
Wheelock and Co. Ltd.	1,698,000		5,052,110

			694,274,899

REAL ESTATE INVESTMENT TRUSTS – 1.81%
Link REIT (The)^a	17,829,000		44,133,400

			44,133,400

RETAIL – 1.66%
Belle International Holdings Ltd.	16,980,000		20,906,788
Giordano International Ltd.^a	6,792,000		2,863,226
Lifestyle International Holdings Ltd.^a	5,094,000		13,552,312
Parkson Retail Group Ltd.^a	300,000		3,167,473

			40,489,799

SEMICONDUCTORS – 0.47%
ASM Pacific Technology Ltd.^a	1,698,000		11,457,269

			11,457,269

TELECOMMUNICATIONS – 2.59%
Foxconn International Holdings Ltd.^a,b	16,980,000		27,148,272
Hutchison Telecommunications International Ltd.	11,886,000		16,223,493
PCCW Ltd.^a	33,960,576		19,685,013

			63,056,778

TRANSPORTATION – 2.97%
MTR Corp. Ltd.^a	11,886,083		44,836,426
Orient Overseas International Ltd.	1,698,200		10,192,714
Pacific Basin Shipping Ltd.^a	10,188,000		17,415,049

			72,444,189


TOTAL COMMON STOCKS (Cost: $2,330,762,814)			2,432,821,591


Security	Shares	Value
SHORT-TERM INVESTMENTS – 13.28%

MONEY MARKET FUNDS – 13.28%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	2,578,688	$	2,578,688



BGI Cash Premier Fund LLC 3.63%^c,d,e	320,970,555		320,970,555
BGI Cash Premier Fund LLC 3.63%^c,d,e	320,970,555		320,970,555

			323,549,243


TOTAL SHORT-TERM INVESTMENTS (Cost: $323,549,243)			323,549,243


TOTAL INVESTMENTS IN SECURITIES – 113.12% (Cost: $2,654,312,057)			2,756,370,834

Other Assets, Less Liabilities – (13.12)%			(319,726,266	)


NET ASSETS – 100.00%		$	2,436,644,568

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

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


SCHEDULES OF INVESTMENTS		33

Schedule of Investments (Unaudited)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.78%

ADVERTISING – 0.44%
Asatsu-DK Inc.	800	$	25,974
Moshi Moshi Hotline Inc.	600		16,599

			42,573

AEROSPACE & DEFENSE – 0.22%
Japan Aviation Electronics Industry Ltd.	2,000		21,267

			21,267

AGRICULTURE – 0.24%
Sakata Seed Corp.	1,800		22,944

			22,944

APPAREL – 1.36%
Descente Ltd.	2,000		10,547
Gunze Ltd.	4,000		18,750
Japan Wool Textile Co. Ltd. (The)	2,000		17,194
Katakura Industries Co. Ltd.	800		13,640
Renown Inc.^a	1,200		4,784
Sanei-International Co. Ltd.	400		5,925
Sanyo Shokai Ltd.	2,000		10,624
Tokyo Style Co. Ltd.	2,000		19,115
Wacoal Holdings Corp.	2,000		30,335

			130,914

AUTO MANUFACTURERS – 0.61%
Kanto Auto Works Ltd.	1,200		16,472
Nissan Shatai Co. Ltd.	2,000		17,367
Shinmaywa Industries Ltd.	2,000		6,820
Toyota Auto Body Co. Ltd.	1,000		17,847

			58,506

AUTO PARTS & EQUIPMENT – 3.97%
Aisan Industry Co. Ltd.	600		6,357
Akebono Brake Industry Co. Ltd.	1,800		12,207
Bosch Corp.	4,000		16,829
Calsonic Kansei Corp.	4,000		16,752
Exedy Corp.	800		24,283
FCC Co. Ltd.	1,000		13,746
Futaba Industrial Co. Ltd.	1,200		29,451
Kayaba Industry Co. Ltd.	4,000		16,637
Keihin Corp.	1,000		16,406
Koito Manufacturing Co. Ltd.	2,000		26,685
Musashi Seimitsu Industry Co. Ltd.	600		12,564
Nifco Inc.	1,000		21,853


Security	Shares	Value
Nissin Kogyo Co. Ltd.	800	$	14,401
Press Kogyo Co. Ltd.	2,000		7,992
Riken Corp.	4,000		16,752
Sanden Corp.	4,000		18,981
Showa Corp.	1,600		14,355
T. RAD Co. Ltd.	2,000		11,565
Takata Corp.	400		10,259
Topre Corp.	1,600		14,831
Toyo Tire & Rubber Co. Ltd.	4,000		11,219
TS Tech Co. Ltd.	400		15,292
Yokohama Rubber Co. Ltd. (The)	6,000		31,468

			380,885

BANKS – 12.12%
Aichi Bank Ltd. (The)	200		15,907
Akita Bank Ltd. (The)	6,000		25,820
Awa Bank Ltd. (The)	6,000		32,794
Bank of Ikeda Ltd. (The)	600		17,175
Bank of Iwate Ltd. (The)	400		24,821
Bank of Nagoya Ltd. (The)	4,000		23,323
Bank of Okinawa Ltd. (The)	600		20,864
Bank of Saga Ltd. (The)	4,000		12,411
Bank of the Ryukyus Ltd.	1,200		10,904
Chiba Kogyo Bank Ltd. (The)^a	1,000		12,920
Chugoku Bank Ltd. (The)	4,000		54,676
Chukyo Bank Ltd. (The)	4,000		11,335
Daishi Bank Ltd. (The)	8,000		30,661
Ehime Bank Ltd. (The)	6,000		20,691
Eighteenth Bank Ltd. (The)	6,000		21,613
Fukui Bank Ltd. (The)	8,000		22,823
Higashi-Nippon Bank Ltd. (The)	4,000		14,024
Higo Bank Ltd. (The)	4,000		23,515
Hokkoku Bank Ltd. (The)	8,000		36,117
Hokuetsu Bank Ltd. (The)	8,000		18,443
Hyakugo Bank Ltd. (The)	6,000		34,523
Hyakujushi Bank Ltd. (The)	6,000		29,797
Iyo Bank Ltd. (The)	6,000		59,248
Juroku Bank Ltd. (The)	8,000		41,958
Kagoshima Bank Ltd. (The)	4,000		28,049
Kansai Urban Banking Corp.	4,000		11,911
Kanto Tsukuba Bank Ltd. (The)	1,600		8,730
Keiyo Bank Ltd. (The)	6,000		34,235
Kiyo Holdings Inc.	16,000		24,744


34		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^®MSCI JAPAN SMALL CAP INDEX FUND

February 29, 2008


Security	Shares	Value
Michinoku Bank Ltd. (The)	6,000	$	17,924
Mie Bank Ltd. (The)	2,000		9,855
Minato Bank Ltd. (The)	4,000		7,685
Miyazaki Bank Ltd. (The)	6,000		24,898
Musashino Bank Ltd. (The)	800		32,967
Ogaki Kyoritsu Bank Ltd. (The)	6,000		33,428
Oita Bank Ltd. (The)	4,000		26,012
San-in Godo Bank Ltd. (The)	4,000		32,698
Shiga Bank Ltd.	6,000		38,903
Shikoku Bank Ltd. (The)	4,000		14,831
Shonai Bank Ltd. (The)	2,000		4,457
Tochigi Bank Ltd. (The)	2,000		11,834
Toho Bank Ltd. (The)	6,000		24,322
Tokushima Bank Ltd. (The)	2,000		11,066
Tokyo Tomin Bank Ltd. (The)	800		18,212
Yachiyo Bank Ltd. (The)	4		16,330
Yamagata Bank Ltd. (The)	4,000		22,324
Yamaguchi Financial Group Inc.	6,000		67,259
Yamanashi Chuo Bank Ltd. (The)	4,000		23,284

			1,162,321

BEVERAGES – 0.55%
Kagome Co. Ltd.	1,600		27,910
Takara Holdings Inc.	4,000		24,514

			52,424

BIOTECHNOLOGY – 0.20%
AnGes MG Inc.^a	2		8,856
Takara Bio Inc.^a	4		10,297

			19,153

BUILDING MATERIALS – 1.41%
Central Glass Co. Ltd.	6,000		26,973
Nichias Corp.	2,000		9,087
Rinnai Corp.	1,000		31,315
Sanwa Holdings Corp.	6,000		29,509
Sumitomo Osaka Cement Co. Ltd.	10,000		20,748
Takara Standard Co. Ltd.	4,000		17,213

			134,845

CHEMICALS – 4.97%
Adeka Corp.	2,400		24,391
Aica Kogyo Co. Ltd.	2,000		18,289
Air Water Inc.	4,000		42,303
Arisawa Manufacturing Co. Ltd.	1,000		7,925


Security	Shares	Value
Chugoku Marine Paints Ltd.	2,000	$	16,695
Dainichiseika Color & Chemicals Manufacturing Co. Ltd.	2,000		7,685
Earth Chemical Co. Ltd.	400		10,124
Fujimi Inc.	400		5,298
Ishihara Sangyo Kaisha Ltd.^a	8,000		18,212
Lintec Corp.	1,000		15,504
Nihon Nohyaku Co. Ltd.	2,000		14,255
Nihon Parkerizing Co. Ltd.	2,000		28,183
Nippon Carbon Co. Ltd.	2,000		8,030
Nippon Kayaku Co. Ltd.	4,000		24,091
Nippon Paint Co. Ltd.	6,000		23,515
Nippon Soda Co. Ltd.	4,000		14,178
Nippon Synthetic Chemical Industry Co. Ltd. (The)	2,000		12,084
NOF Corp.	4,000		15,830
Sakai Chemical Industry Co. Ltd.	2,000		8,146
Sumitomo Bakelite Co. Ltd.	6,000		33,197
Taiyo Ink Manufacturing Co. Ltd.	400		9,798
Takasago International Corp.	2,000		16,003
Toagosei Co. Ltd.	6,000		20,806
Tokai Carbon Co. Ltd.	4,000		35,042
Tokyo Ohka Kogyo Co. Ltd.	1,200		25,820
Toyo Ink Manufacturing Co. Ltd.	6,000		21,094

			476,498

COMMERCIAL SERVICES – 2.26%
Aeon Delight Co. Ltd.	400		8,395
Daiseki Co. Ltd.	660		19,083
Goodwill Group Inc. (The)^a	36		6,484
Intelligence Ltd.	4		4,572
K.K. DaVinci Advisors^a	26		22,452
Meitec Corp.	1,000		29,682
Nichii Gakkan Co.	600		8,132
Nissha Printing Co. Ltd.	600		25,647
Park 24 Co. Ltd.	2,200		18,977
Sohgo Security Services Co. Ltd.	1,400		19,553
So-Net M3 Inc.^a	2		8,587
TIS Inc.	1,000		18,587
Toppan Forms Co. Ltd.	1,600		17,198
Zenrin Co. Ltd.	400		9,779

			217,128


SCHEDULES OF INVESTMENTS		35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 29, 2008


Security	Shares	Value
COMPUTERS – 0.67%
DTS Corp.	800	$	13,548
Hitachi Information Systems Ltd.	600		11,930
Net One Systems Co. Ltd.	14		15,331
NS Solutions Corp.	600		17,290
Roland DG Corp.	200		6,513

			64,612

COSMETICS & PERSONAL CARE – 1.09%
Aderans Holdings Co. Ltd.	1,000		18,270
Fancl Corp.	1,000		13,208
Kose Corp.	800		18,404
Lion Corp.	4,000		19,211
Mandom Corp.	1,200		35,272

			104,365

DISTRIBUTION & WHOLESALE – 1.83%
Doshisha Co. Ltd.	600		9,475
Green Hospital Supply Inc.	8		6,716
Hanwa Co. Ltd.	6,000		28,241
Inaba Denki Sangyo Co. Ltd.	800		28,740
Iwatani International Corp.	8,000		22,669
Japan Pulp & Paper Co. Ltd.	2,000		7,396
JFE Shoji Holdings Inc.	2,000		13,333
Kanematsu Corp.^a	10,000		14,409
Matsuda Sangyo Co. Ltd.	400		11,239
Nagase & Co. Ltd.	2,000		20,691
Sumikin Bussan Corp.	2,000		6,743
Trusco Nakayama Corp.	400		6,125

			175,777

DIVERSIFIED FINANCIAL SERVICES – 3.62%
Aizawa Securities Co. Ltd.	1,200		6,916
Asset Managers Co. Ltd.	10		9,125
Fuyo General Lease Co. Ltd.	400		12,103
Hitachi Credit Corp.	1,000		14,312
IBJ Leasing Co. Ltd.	800		15,523
Ichiyoshi Securities Co. Ltd.	1,200		12,772
Jaccs Co. Ltd.	4,000		17,175
Japan Securities Finance Co. Ltd.	2,200		16,589
Kenedix Inc.	14		18,962
Marusan Securities Co. Ltd.	1,800		16,633
Mitsubishi UFJ NICOS Co. Ltd.^a	10,000		28,049
Mizuho Investors Securities Co. Ltd.	8,000		11,219
NIS Group Co. Ltd.^a	2,800		4,761


Security	Shares	Value
Okasan Holdings Inc.	4,000	$	22,785
OMC Card Inc.^a	1,800		8,507
Orient Corp.^a	6,000		8,876
Osaka Securities Exchange Co. Ltd.	6		31,468
Pacific Management Corp.	10		7,944
Ricoh Leasing Co. Ltd.	600		13,775
Risa Partners Inc.	4		8,030
Secured Capital Japan Co. Ltd.	4		4,611
SFCG Co. Ltd.	100		12,199
SPARX Group Co. Ltd.	22		11,412
Tokai Tokyo Securities Co. Ltd.	6,000		25,647
Toyo Securities Co. Ltd.	2,000		7,704

			347,097

ELECTRIC – 0.17%
Okinawa Electric Power Co. Inc. (The)	400		16,022

			16,022

ELECTRICAL COMPONENTS & EQUIPMENT – 0.97%
Funai Electric Co. Ltd.	600		17,175
GS Yuasa Corp.	10,000		25,263
Shinko Electric Co. Ltd.	4,000		13,025
SMK Corp.	2,000		11,988
Toshiba Tec Corp.	4,000		25,474

			92,925

ELECTRONICS – 5.34%
Anritsu Corp.	4,000		13,141
Chiyoda Integre Co. Ltd.	600		10,316
CMK Corp.	1,400		11,323
Cosel Co. Ltd.	1,000		10,537
Dainippon Screen Manufacturing Co. Ltd.	6,000		26,857
Eizo Nanao Corp.	400		9,721
Fujitsu General Ltd.^a	2,000		7,320
Furuno Electric Co. Ltd.	800		10,359
Futaba Corp.	1,000		17,867
Hamamatsu Photonics K.K.	1,600		49,027
HORIBA Ltd.	600		20,057
Hosiden Corp.	1,200		21,083
JEOL Ltd.	2,000		7,454
Kaga Electronics Co. Ltd.	1,000		12,728
Koa Corp.	1,600		10,436
Kuroda Electric Co. Ltd.	1,000		15,744
Meiko Electronics Co. Ltd.	200		5,840


36		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 29, 2008


Security	Shares	Value
Micronics Japan Co. Ltd.	400	$	13,333
Nichicon Corp.	1,800		14,213
Nihon Dempa Kogyo Co. Ltd.	400		13,602
Nippon Chemi-Con Corp.	4,000		18,174
Nitto Kogyo Corp.	600		7,003
Ryosan Co. Ltd.	1,200		28,817
Sodick Co. Ltd.	1,800		8,714
Star Micronics Co. Ltd.	1,000		16,339
Tamura Corp.	2,000		7,339
Tokyo Seimitsu Co. Ltd.^b	1,000		18,760
Toyo Corp.	1,200		16,357
ULVAC Inc.	800		34,580
Wacom Co. Ltd.	8		18,750
Yamatake Corp.	1,400		36,041

			511,832

ENGINEERING & CONSTRUCTION – 3.30%
Chudenko Corp.	600		9,095
COMSYS Holdings Corp.	4,000		32,851
Japan Airport Terminal Co. Ltd.	1,200		22,673
Kandenko Co. Ltd.	2,000		10,835
Kyowa Exeo Corp.	2,000		14,024
Maeda Corp.	6,000		19,423
Maeda Road Construction Co. Ltd.	2,000		16,618
Nippo Corp.	2,000		13,275
Nishimatsu Construction Co. Ltd.	8,000		20,518
Okumura Corp.	4,000		17,175
Penta-Ocean Construction Co. Ltd.^a	7,000		9,010
Shinko Plantech Co. Ltd.	1,000		13,659
SHO-BOND Holdings Co. Ltd.^a	800		9,460
Taihei Kogyo Co. Ltd.	2,000		8,184
Taikisha Ltd.	1,200		14,017
Takasago Thermal Engineering Co. Ltd.	2,000		15,273
Toda Corp.	6,000		26,224
Tokyu Construction Co. Ltd.	2,240		6,864
Toshiba Plant Systems & Services Corp.	2,000		17,963
Toyo Engineering Corp.	4,000		18,981

			316,122

ENTERTAINMENT – 0.88%
Avex Group Holdings Inc.	800		9,191
Resorttrust Inc.	1,000		15,311
Shochiku Co. Ltd.	2,000		13,237
Toei Co. Ltd.	2,000		11,181


Security	Shares	Value
Tokyotokeiba Co. Ltd.	4,000	$	7,723
USJ Co. Ltd.	24		15,861
Yoshimoto Kogyo Co. Ltd.	1,000		12,439

			84,943

ENVIRONMENTAL CONTROL – 0.18%
Asahi Pretec Corp.	600		17,233

			17,233

FOOD – 3.54%
Ariake Japan Co. Ltd.	600		8,046
Ezaki Glico Co. Ltd.	2,000		21,651
Fuji Oil Co. Ltd.	3,000		26,454
House Foods Corp.	1,800		27,509
Itoham Foods Inc.	4,000		22,170
J-Oil Mills Inc.	2,000		5,053
Maruha Nichiro Holdings Inc.	10,000		14,793
Meiji Seika Kaisha Ltd.	8,000		37,808
Mitsui Sugar Co. Ltd.	2,000		7,262
Morinaga & Co. Ltd.	10,000		21,517
Morinaga Milk Industry Co. Ltd.	6,000		16,022
Nichirei Corp.	6,000		29,970
Nippon Beet Sugar Manufacturing Co. Ltd.	2,000		4,361
Nippon Flour Mills Co. Ltd.	6,000		24,494
Nippon Suisan Kaisha Ltd.	5,800		22,564
Nisshin OilliO Group Ltd. (The)	4,000		13,141
Q.P. Corp.	2,400		23,999
Snow Brand Milk Products Co. Ltd.	5,000		12,824

			339,638

FOREST PRODUCTS & PAPER – 1.12%
Daio Paper Corp.	2,000		14,466
Hokuetsu Paper Mills Ltd.	3,000		13,371
Mitsubishi Paper Mills Ltd.	8,000		15,139
Rengo Co. Ltd.	6,000		32,794
Sumitomo Forestry Co. Ltd.	4,000		31,622

			107,392

GAS – 0.94%
Saibu Gas Co. Ltd.	12,000		26,742
Toho Gas Co. Ltd.	12,000		63,282

			90,024

HAND & MACHINE TOOLS – 1.35%
DISCO Corp.	600		28,759
Hitachi Koki Co. Ltd.	1,400		20,024


SCHEDULES OF INVESTMENTS		37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 29, 2008


Security	Shares	Value
Meidensha Corp.	4,000	$	9,414
Mori Seiki Co. Ltd.	2,000		36,694
OSG Corp.	2,000		20,172
Union Tool Co.	400		14,485

			129,548

HEALTH CARE - PRODUCTS – 2.09%
Hogy Medical Co. Ltd.	400		18,981
Nakanishi Inc.	200		24,014
Nihon Kohden Corp.	800		16,291
Nipro Corp.	2,000		38,615
Shimadzu Corp.	6,000		57,576
Sysmex Corp.	800		32,659
Topcon Corp.	1,400		12,265

			200,401

HOME BUILDERS – 0.22%
PanaHome Corp.	2,000		12,968
Token Corp.	240		8,668

			21,636

HOME FURNISHINGS – 1.35%
Alpine Electronics Inc.	1,200		14,397
Canon Electronics Inc.	400		9,145
Daiwa Industries Ltd.	2,000		9,414
Foster Electric Co. Ltd.	600		15,359
Hitachi Maxell Ltd.	1,200		13,313
Juki Corp.	4,000		18,174
Kenwood Corp.	10,000		11,047
Nidec Sankyo Corp.	2,000		16,579
Noritz Corp.	1,000		11,037
Victor Co. of Japan Ltd.^a	6,000		11,354

			129,819

HOUSEHOLD PRODUCTS & WARES – 0.19%
Pilot Corp.	10		17,867

			17,867

HOUSEWARES – 0.40%
Noritake Co. Ltd.	4,000		16,868
Sangetsu Co. Ltd.	1,000		21,805

			38,673

INSURANCE – 0.23%
Nissay Dowa General Insurance Co. Ltd.	4,000		22,170

			22,170


Security	Shares	Value
INTERNET – 1.79%
Access Co. Ltd.^a	6	$	21,901
CyberAgent Inc.	12		14,639
Dena Co. Ltd.	6		39,710
eAccess Ltd.	32		20,902
En-Japan Inc.	2		4,745
Index Holdings	26		4,248
Internet Initiative Japan Inc.	2		6,820
kabu.Com Securities Co. Ltd.	10		12,295
Kakaku.Com Inc.	2		11,604
Monex Beans Holdings Inc.	24		13,809
Opt Inc.	4		11,873
So-Net Entertainment Corp.	2		8,760

			171,306

IRON & STEEL – 1.61%
Aichi Steel Corp.	4,000		20,326
Godo Steel Ltd.	4,000		13,102
Mitsubishi Steel Manufacturing Co. Ltd.	4,000		14,485
Nippon Metal Industry Co. Ltd.	4,000		15,062
Nippon Yakin Kogyo Co. Ltd.	3,000		29,393
Sanyo Special Steel Co. Ltd.	4,000		24,744
TOPY Industries Ltd.	6,000		16,426
Yodogawa Steel Works Ltd.	4,000		20,671

			154,209

LEISURE TIME – 1.40%
Accordia Golf Co. Ltd.^a	16		15,000
Aruze Corp.	400		12,948
Daiichikosho Co. Ltd.	1,200		11,884
Fields Corp.	6		8,126
Heiwa Corp.	1,000		10,134
HIS Co. Ltd.	600		10,144
Mizuno Corp.	2,000		13,121
Pacific Golf Group International Holdings K.K.^a	12		11,273
Roland Corp.	600		12,507
Round One Corp.	8		9,298
Tokyo Dome Corp.	4,000		19,596

			134,031

LODGING – 0.13%
Fujita Kanko Inc.	2,000		12,660

			12,660


38		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 29, 2008


Security	Shares	Value
MACHINERY – 3.91%
Aida Engineering Ltd.	2,000	$	12,046
CKD Corp.	1,800		12,086
Daifuku Co. Ltd.	2,000		26,857
Daihen Corp.	2,000		7,396
Fuji Machine Manufacturing Co. Ltd.	1,000		22,189
Furukawa Co. Ltd.	8,000		15,446
Iseki & Co. Ltd.^a	6,000		8,587
Komori Corp.	1,400		29,720
Makino Milling Machine Co. Ltd.	2,000		14,639
Max Co. Ltd.	2,000		23,976
Miura Co. Ltd.	800		19,135
Modec Inc.	400		13,371
Nabtesco Corp.	2,000		27,030
Nippon Thompson Co. Ltd.	2,000		12,238
Obara Corp.	400		7,677
Shima Seiki Manufacturing Ltd.	600		26,166
Sintokogio Ltd.	1,600		15,446
Tadano Ltd.	2,000		20,287
Takeuchi Manufacturing Co. Ltd.	200		5,149
Toshiba Machine Co. Ltd.	2,000		15,619
Toyo Kanetsu K.K.	6,000		14,063
Tsubakimoto Chain Co.	4,000		25,590

			374,713

MANUFACTURING – 1.96%
Amano Corp.	2,000		23,323
ARRK Corp.	2,000		7,492
Glory Ltd.	1,400		32,410
Kureha Corp.	6,000		36,367
Nikkiso Co. Ltd.	2,000		13,256
Nitta Corp.	800		12,533
Noritsu Koki Co. Ltd.	400		7,554
Tamron Co. Ltd.	400		9,817
Tenma Corp.	1,000		14,841
Tokai Rubber Industries Ltd.	800		12,726
Toyo Tanso Co. Ltd.	200		17,540

			187,859

MEDIA – 0.35%
Kadokawa Group Holdings Inc.	600		13,486
SKY Perfect JSAT Corp.	38		11,370
Usen Corp.	1,440		8,534

			33,390


Security	Shares	Value
METAL FABRICATE & HARDWARE – 1.86%
Ahresty Corp.	600	$	7,665
Kitz Corp.	2,000		11,392
Maruichi Steel Tube Ltd.	1,200		36,079
Misumi Group Inc.	2,000		32,333
Nachi-Fujikoshi Corp.	6,000		21,613
Neturen Co. Ltd.	1,400		14,806
Ryobi Ltd.	4,000		17,021
Tocalo Co. Ltd.	600		10,593
Toho Zinc Co. Ltd.	4,000		27,242

			178,744

MINING – 1.31%
Mitsui Mining Co. Ltd.^a	3,000		10,778
Nippon Denko Co. Ltd.	2,000		18,712
Nippon Light Metal Co. Ltd.	14,000		22,055
Nittetsu Mining Co. Ltd.	2,000		13,390
Pacific Metals Co. Ltd.	4,000		49,373
Sumitomo Light Metal Industries Ltd.	8,000		11,066

			125,374

OFFICE & BUSINESS EQUIPMENT – 0.11%
Canon Finetech Inc.	800		10,205

			10,205

OFFICE FURNISHINGS – 0.46%
Itoki Corp.	1,400		8,889
Kokuyo Co. Ltd.	2,400		19,849
Okamura Corp.	2,000		15,292

			44,030

OIL & GAS – 0.11%
AOC Holdings Inc.	1,000		10,566

			10,566

PACKAGING & CONTAINERS – 0.17%
FP Corp.	400		10,624
Fuji Seal International Inc.	400		5,906

			16,530

PHARMACEUTICALS – 3.30%
Hisamitsu Pharmaceutical Co. Inc.	1,600		51,486
Kaken Pharmaceutical Co. Ltd.	2,000		16,041
Kobayashi Pharmaceutical Co. Ltd.	600		23,745
Miraca Holdings Inc.	1,200		25,993
Mochida Pharmaceutical Co. Ltd.	2,000		19,711
Nichi-Iko Pharmaceutical Co. Ltd.	600		15,907


SCHEDULES OF INVESTMENTS		39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 29, 2008


Security	Shares	Value
Nippon Shinyaku Co. Ltd.	2,000	$	20,306
Rohto Pharmaceutical Co. Ltd.	2,000		24,033
Sawai Pharmaceutical Co. Ltd.^b	400		18,712
Seikagaku Corp.	1,000		10,701
Toho Pharmaceutical Co. Ltd.	800		17,751
Towa Pharmaceutical Co. Ltd.	200		9,260
Toyama Chemical Co. Ltd.^a,b	4,000		33,620
Tsumura & Co.	1,400		29,182

			316,448

REAL ESTATE – 1.42%
Ardepro Co. Ltd.	34		4,977
Arealink Co. Ltd.	18		1,432
Atrium Co. Ltd.	400		7,389
Creed Corp.	4		5,456
Daibiru Corp.	1,000		9,510
Daikyo Inc.	4,000		9,721
Goldcrest Co. Ltd.	420		11,599
Heiwa Real Estate Co. Ltd.	4,000		20,671
Idu Co.	6		5,596
Japan General Estate Co. Ltd. (The)	1,000		9,779
Joint Corp.	600		7,953
Shoei Co. Ltd.	800		11,327
Sumitomo Real Estate Sales Co. Ltd.	200		8,587
SURUGA CORP.	600		6,824
TOC Co. Ltd.	2,000		15,465

			136,286

REAL ESTATE INVESTMENTTRUSTS – 4.67%
Creed Office Investment Corp.	4		14,447
DA Office Investment Corp.	4		18,981
Frontier Real Estate Investment Corp.	2		14,428
Fukuoka REIT Corp.	2		12,756
Global One Real Estate Investment Corp.	2		24,014
Hankyu REIT Inc.	2		12,910
Japan Excellent Inc.	4		26,320
Japan Hotel and Resort Inc.	4		14,063
Japan Logistics Fund Inc.	4		25,474
Kenedix Realty Investment Corp.	4		24,514
MID REIT Inc.	4		14,754
Mori Hills REIT Investment Corp.	2		13,525
MORI TRUST Sogo REIT Inc.	2		18,155
New City Residence Investment Corp.	4		14,716
Nippon Accommodations Fund Inc.	2		11,469


Security	Shares	Value
Nippon Commercial Investment Corp.	6	$	27,549
Nippon Residential Investment Corp.	6		23,227
ORIX JREIT Inc.	6		34,696
Premier Investment Co.	4		24,168
TOKYU REIT Inc.	4		33,274
Top REIT Inc.	4		18,289
United Urban Investment Corp.	4		25,820

			447,549

RETAIL – 8.11%
ABC-Mart Inc.	600		12,074
Aoki Holdings Inc.	600		10,806
Arcs Co. Ltd.	800		10,512
Askul Corp.	600		12,507
Autobacs Seven Co. Ltd.	1,000		22,765
Best Denki Co. Ltd.	2,000		15,965
Chiyoda Co. Ltd.	800		11,803
Circle K Sunkus Co. Ltd.	1,200		18,120
Culture Convenience Club Co. Ltd.	2,400		9,544
Daiei Inc. (The)^a	1,500		9,783
DCM Japan Holdings Co. Ltd.	1,800		9,613
Don Quijote Co. Ltd.	1,200		19,411
Doutor Nichires Holdings Co. Ltd.	1,200		21,751
Duskin Co. Ltd.	1,000		17,002
EDION Corp.	1,800		17,878
GEO Corp.	6		6,224
Gulliver International Co. Ltd.	160		6,516
H2O Retailing Corp.	4,000		29,048
Heiwado Co. Ltd.	1,000		15,628
Honeys Co. Ltd.	380		6,322
Izumi Co. Ltd.	1,400		20,226
Izumiya Co. Ltd.	4,000		19,442
Joshin Denki Co. Ltd.	2,000		17,290
Kisoji Co. Ltd.	400		8,242
Kohnan Shoji Co. Ltd.	600		7,152
Komeri Co. Ltd.	800		18,866
K’s Holdings Corp.	1,000		18,145
Maruetsu Inc. (The)^a	2,000		15,465
Matsumotokiyoshi Co. Ltd.^a	1,200		24,494
Matsuya Co. Ltd.	800		16,868
McDonald’s Holdings Co. (Japan) Ltd.	1,200		19,492
Nishimatsuya Chain Co. Ltd.	1,400		13,529
Nissen Holdings Co. Ltd.	1,400		9,535


40		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 29, 2008


Security	Shares	Value
Parco Co. Ltd.	1,200	$	14,754
Paris Miki Inc.	1,000		13,765
Plenus Co. Ltd.	800		9,521
Point Inc.	360		13,383
Ryohin Keikaku Co. Ltd.	600		32,102
Saizeriya Co. Ltd.	800		7,792
San-A & Co. Ltd.	200		5,418
Sankyo-Tateyama Holdings Inc.	10,000		12,968
Seiko Corp.	2,000		10,067
Senshukai Co. Ltd.	1,200		8,668
Shimachu Co. Ltd.	1,000		26,079
St. Marc Holdings Co. Ltd.	200		6,455
Sugi Pharmacy Co. Ltd.	600		16,310
Sundrug Co. Ltd.	800		20,402
Tsuruha Holdings Inc.	400		13,025
United Arrows Ltd.	1,000		7,963
Valor Co. Ltd.	1,000		10,605
Watami Co. Ltd.	800		12,449
Xebio Co. Ltd.	600		12,795
Yoshinoya Holdings Co. Ltd.	12		20,172
Zensho Co. Ltd.	1,600		11,235

			777,946

SEMICONDUCTORS – 0.38%
Mimasu Semiconductor Industry Co. Ltd.	600		11,556
Sanken Electric Co. Ltd.	2,000		11,988
Sumco Techxiv Corp.	200		4,803
United Technology Holdings Co. Ltd.	4		7,953

			36,300

SHIPBUILDING – 0.41%
Hitachi Zosen Corp.^a	16,000		16,599
Namura Shipbuilding Co. Ltd.	600		6,651
Sasebo Heavy Industries Co. Ltd.	4,000		16,445

			39,695

SOFTWARE – 1.60%
Capcom Co. Ltd.	1,000		27,953
Fuji Soft ABC Inc.	800		12,449
Hitachi Software Engineering Co. Ltd.	800		19,211
INTEC Holdings Ltd.	1,200		17,290
Koei Co. Ltd.	600		9,948
Nihon Unisys Ltd.	1,400		17,012
NSD Co. Ltd.	1,000		14,264


Security	Shares	Value
Obic Business Consultants Co. Ltd.	200	$	11,565
Sumisho Computer Systems Corp.	600		11,486
Works Applications Co. Ltd.	10		12,679

			153,857

STORAGE & WAREHOUSING – 0.57%
Mitsui-Soko Co. Ltd.	4,000		22,516
Shibusawa Warehouse Co. Ltd. (The)	2,000		12,564
Sumitomo Warehouse Co. Ltd. (The)	4,000		19,634

			54,714

TELECOMMUNICATIONS – 1.07%
Denki Kogyo Co. Ltd.	2,000		11,777
Hitachi Kokusai Electric Inc.	2,000		22,938
Invoice Inc.	240		5,268
Japan Radio Co. Ltd.	2,000		5,706
Oki Electric Industry Co. Ltd.^a,b	16,000		29,048
Okinawa Cellular Telephone Co.	4		6,839
Telepark Corp.	8		8,069
Uniden Corp.	2,000		12,641

			102,286

TEXTILES – 0.95%
Daiwabo Co. Ltd.	4,000		10,220
Kurabo Industries Ltd.	6,000		12,852
Nitto Boseki Co. Ltd.	6,000		12,507
Seiren Co. Ltd.	1,600		10,866
Toyobo Co. Ltd.	16,000		33,044
Unitika Ltd.	12,000		12,103

			91,592

TOYS, GAMES & HOBBIES – 0.27%
Sanrio Co. Ltd.	1,200		10,524
Tomy Co. Ltd.	2,000		15,139

			25,663

TRANSPORTATION – 3.92%
Daiichi Chuo Kisen Kaisha	4,000		29,854
Fukuyama Transporting Co. Ltd.	4,000		14,716
Hitachi Transport System Ltd.	1,000		12,343
Iino Kaiun Kaisha Ltd.	2,000		18,481
Inui Steamship Co. Ltd.	400		6,182
Keihan Electric Railway Co. Ltd.	12,000		50,718
Kintetsu World Express Inc.	400		9,471
Nagoya Railroad Co. Ltd.	20,000		63,782
Nippon Konpo Unyu Soko Co. Ltd.	2,000		27,549


SCHEDULES OF INVESTMENTS		41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 29, 2008


Security	Shares	Value
Nishi-Nippon Railroad Co. Ltd.	8,000	$	29,432
Sagami Railway Co. Ltd.	10,000		38,615
Sankyu Inc.	6,000		29,048
Seino Holdings Co. Ltd.	4,000		26,857
Shinwa Kaiun Kaisha Ltd.	2,000		13,563
Yusen Air & Sea Service Co. Ltd.	400		5,932

			376,543

VENTURE CAPITAL – 0.11%
Japan Asia Investment Co. Ltd.	2,000		10,643

			10,643


TOTAL COMMON STOCKS (Cost: $9,376,751)			9,570,693
TOTAL COMMON STOCKS (Cost: $9,376,751)			9,570,693

SHORT-TERM INVESTMENTS – 0.63%

MONEY MARKET FUNDS – 0.63%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	6,977		6,977





BGI Cash Premier Fund LLC 3.63%^c,d,e	52,980		52,980

			59,957


TOTAL SHORT-TERM INVESTMENTS (Cost: $59,957)			59,957
TOTAL SHORT-TERM INVESTMENTS (Cost: $59,957)			59,957


TOTAL INVESTMENTS IN SECURITIES – 100.41% (Cost: $9,436,708)			9,630,650



Other Assets, Less Liabilities – (0.41)%			(39,036	)


NET ASSETS – 100.00%		$	9,591,614

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


42		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI MALAYSIA INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.75%

AGRICULTURE – 14.59%
Asiatic Development Bhd	3,205,957	$	9,333,354
British American Tobacco (Malaysia) Bhd	2,164,400		29,134,200
IOI Corp. Bhd	54,264,630		136,744,489
Kuala Lumpur Kepong Bhd	6,957,000		40,289,404

			215,501,447

AIRLINES – 0.91%
AirAsia Bhd^a	12,986,400		6,341,770
Malaysian Airline System Bhd^a	5,565,600		7,178,047

			13,519,817

AUTO MANUFACTURERS – 0.53%
DRB-Hicom Bhd	5,101,800		2,251,851
Proton Holdings Bhd^a	4,328,800		5,555,824

			7,807,675

AUTO PARTS & EQUIPMENT – 1.42%
UMW Holdings Bhd	9,585,200		21,003,725

			21,003,725

BANKS – 25.07%
Alliance Financial Group Bhd	11,285,800		10,139,379
AMMB Holdings Bhd	26,127,437		30,425,439
Bumiputra-Commerce Holdings Bhd	41,587,432		136,693,704
Hong Leong Bank Bhd	7,884,600		13,821,806
Malayan Banking Bhd	40,041,400		114,063,778
Public Bank Bhd	17,160,600		56,942,357
RHB Capital Bhd	5,411,000		8,401,490

			370,487,953

BEVERAGES – 0.14%
Guinness Anchor Bhd	1,265,375		2,138,997

			2,138,997

BUILDING MATERIALS – 0.61%
Lafarge Malayan Cement Bhd	5,565,660		9,059,769

			9,059,769

COMMERCIAL SERVICES – 1.64%
PLUS Expressways Bhd	24,736,000		24,159,124

			24,159,124


Security	Shares	Value
DIVERSIFIED FINANCIAL SERVICES – 1.74%
Bursa Malaysia Bhd	5,101,800	$	18,206,455
Hong Leong Credit Bhd	3,555,800		5,209,311
TA Enterprise Bhd	6,493,200		2,276,533

			25,692,299

ELECTRIC – 4.91%
Tenaga Nasional Bhd	21,334,850		60,441,506
YTL Power International Bhd	15,305,413		12,121,676

			72,563,182

ENGINEERING & CONSTRUCTION – 6.99%
Gamuda Bhd	26,127,400		32,224,747
IJM Corp. Bhd	9,739,800		22,104,727
Malaysian Resources Corp. Bhd^a	6,957,000		4,377,389
MMC Corp. Bhd	9,894,400		11,769,829
YTL Corp. Bhd	13,604,888		32,793,125

			103,269,817

ENTERTAINMENT – 3.52%
Berjaya Sports Toto Bhd	12,213,400		19,689,782
Magnum Corp. Bhd	13,141,000		13,739,534
Tanjong PLC	3,710,400		18,583,941

			52,013,257

FOOD – 1.77%
PPB Group Bhd	7,730,066		26,133,890

			26,133,890

GAS – 1.75%
Petronas Gas Bhd	8,193,800		25,906,208

			25,906,208

HOLDING COMPANIES - DIVERSIFIED – 10.83%
Mulpha International Bhd^a	6,338,600		2,043,750
Multi-Purpose Holdings Bhd	4,792,600		3,090,548
Sime Darby Bhd^a	39,577,625		143,715,903
UEM World Bhd	10,203,600		11,179,402

			160,029,603

LODGING – 8.21%
Genting Bhd	30,456,200		65,307,550
Resorts World Bhd	47,771,400		55,928,952

			121,236,502


SCHEDULES OF INVESTMENTS		43

Schedule of Investments (Unaudited) (Continued)

iSHARES^®MSCI MALAYSIA INDEX FUND

February 29, 2008


Security	Shares	Value
MEDIA – 1.06%
Astro All Asia Networks PLC	6,184,000	$	7,278,710
Media Prima Bhd	5,874,800		4,450,467
Star Publications (Malaysia) Bhd	3,555,860		3,895,918

			15,625,095

METAL FABRICATE & HARDWARE – 1.22%
KNM Group Bhd	9,430,600		18,008,033

			18,008,033

OIL & GAS – 1.00%
Petronas Dagangan Bhd	4,174,200		10,976,140
Shell Refining Co. (FOM) Bhd	1,082,200		3,760,344

			14,736,484

OIL & GAS SERVICES – 0.12%
Scomi Group Bhd	5,411,000		1,812,418

			1,812,418

REAL ESTATE – 2.46%
IGB Corp. Bhd	12,058,800		7,247,737
IOI Properties Bhd	773,050		3,097,524
KLCC Property Holdings Bhd	6,802,400		6,771,524
SP Setia Bhd	12,368,000		19,280,839

			36,397,624

SEMICONDUCTORS – 0.15%
Malaysian Pacific Industries Bhd	773,000		2,153,608

			2,153,608

TELECOMMUNICATIONS – 5.36%
DiGi.Com Bhd	2,473,600		18,506,508
Telekom Malaysia Bhd	17,006,000		60,688,183

			79,194,691

TRANSPORTATION – 3.75%
Malaysian Bulk Carriers Bhd	2,319,050		2,990,918
MISC Bhd	18,397,400		50,679,956
Pos Malaysia Bhd^a	2,782,800		1,759,667

			55,430,541


TOTAL COMMON STOCKS (Cost: $1,086,990,298)			1,473,881,759


Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.08%

MONEY MARKET FUNDS – 0.08%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^b,c	1,195,243	$	1,195,243




			1,195,243


TOTAL SHORT-TERM INVESTMENTS (Cost: $1,195,243)			1,195,243


TOTAL INVESTMENTS IN SECURITIES – 99.83% (Cost: $1,088,185,541)			1,475,077,002

Other Assets, Less Liabilities – 0.17%			2,455,495


NET ASSETS – 100.00%		$	1,477,532,497

^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.


44		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI MEXICO INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.89%

BANKS – 0.25%
Banco Compartamos SA de CV^a	907,100	$	3,575,658

			3,575,658

BEVERAGES – 8.23%
Coca-Cola FEMSA SAB de CV SP ADR	280,282		14,697,988
Coca-Cola FEMSA SAB de CV SP ADR	280,282		14,697,988
Fomento Economico Mexicano SAB de CV BD Units^b	20,813,108		82,935,525
Fomento Economico Mexicano SAB de CV BD Units^b	20,813,108		82,935,525
Grupo Continental SAB de CV	308,100		760,599
Grupo Modelo SAB de CV Series C^b	4,604,400		20,860,553
Grupo Modelo SAB de CV Series C^b	4,604,400		20,860,553

			119,254,665

BUILDING MATERIALS – 12.38%
Cemex SAB de CV Series CPO^a	65,442,003		179,505,601

			179,505,601

DIVERSIFIED FINANCIAL SERVICES – 3.53%
Grupo Financiero Banorte SAB de CV Series O^b	12,768,700		51,190,118
Grupo Financiero Banorte SAB de CV Series O^b	12,768,700		51,190,118

			51,190,118

ENGINEERING & CONSTRUCTION – 5.19%
Carso Infraestructura y Construccion SAB de CV Series B1^a,b	8,892,000		8,130,170


Empresas ICA SAB de CV^a,b	4,030,974		24,242,332
Grupo Aeroportuario del Centro Norte SAB de CV	494,000		1,405,727
Grupo Aeroportuario del Centro Norte SAB de CV	494,000		1,405,727
Grupo Aeroportuario del Pacifico SAB de CV Series B^b	4,654,800		21,327,750
Grupo Aeroportuario del Pacifico SAB de CV Series B^b	4,654,800		21,327,750
Grupo Aeroportuario del Sureste SA de CV Series B ADR	352,070		18,279,474
Grupo Aeroportuario del Sureste SA de CV Series B ADR	352,070		18,279,474
Promotora y Operadora de Infraestructura SAB de CV^a,b	538,000		1,868,742
Promotora y Operadora de Infraestructura SAB de CV^a,b	538,000		1,868,742

			75,254,195

ENVIRONMENTAL CONTROL – 0.01%
Promotora Ambiental SAB de CV^a	52,000		152,823

			152,823


Security	Shares	Value
FOOD – 2.13%
Alsea SAB de CV^b	1,378,000	$	1,652,062
Gruma SAB de CV Class B	209,500		596,349
Grupo Bimbo SAB de CV Series A^b	5,278,600		28,652,767

			30,901,178

FOREST PRODUCTS & PAPER – 1.73%
Kimberly-Clark de Mexico SAB de CV Class A^b	6,084,000		25,106,157

			25,106,157

HOLDING COMPANIES - DIVERSIFIED – 4.56%
Alfa SAB de CV Class A^b	3,380,100		20,876,689
Grupo Carso SA de CV Series A1^b	10,244,930		45,220,570

			66,097,259

HOME BUILDERS – 3.81%
Consorcio ARA SAB de CV^b	6,786,000		7,046,657
Corporacion Geo SAB de CV Series B^a,b	3,744,600		11,745,655
Desarrolladora Homex SAB de CV^a,b	1,820,930		17,964,149
Sare Holding SAB de CV Class B^a	324,400		452,477
Urbi Desarrollos Urbanos SA de CV^a,b	4,967,300		17,976,877

			55,185,815

HOUSEWARES – 0.05%
Vitro SAB de CV Series A	453,900		778,359

			778,359

MACHINERY – 0.05%
Industrias CH SA de CV Class B^a	200,000		772,137

			772,137

MEDIA – 4.98%
Grupo Televisa SA Series CPO^b	15,992,799		70,307,856
TV Azteca SAB de CV Series CPO	3,260,700		1,831,392

			72,139,248

MINING – 6.55%
Grupo Mexico SA de CV Series B^b	10,192,000		71,155,627
Industrias Penoles SAB de CV^b	988,200		23,792,476

			94,948,103


SCHEDULES OF INVESTMENTS		45

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INDEX FUND

February 29, 2008


Security	Shares	Value
RETAIL – 6.81%
Controladora Comercial Mexicana SA de CV BC Units^b	5,305,700	$	13,395,057
Grupo Elektra SA de CV^b	440,030		10,326,745
Grupo Famsa SAB de CV
Class A^a,b	806,000		2,520,653
Organizacion Soriana SAB de CV Class B^b	1,199,000		3,138,925
Wal-Mart de Mexico SAB de CV Series V^b	19,110,000		69,409,543

			98,790,923

TELECOMMUNICATIONS – 39.63%
America Movil SAB de CV
Series L^b	120,796,040		363,234,503
Axtel SAB de CV Series CPO^a	3,320,100		7,328,920
Carso Global Telecom SAB de CV Class A1^a,b	10,920,831		47,755,647
Grupo Iusacell SA de CV^a	524,800		6,167,868
Telefonos de Mexico SAB de CV Series L^b	90,480,000		150,007,893

			574,494,831


TOTAL COMMON STOCKS (Cost: $1,539,659,003)			1,448,147,070

SHORT-TERM INVESTMENTS – 5.12%

MONEY MARKET FUNDS – 5.12%

Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	353,782		353,782
BGI Cash Premier Fund LLC 3.63%^c,d,e	73,787,971		73,787,971

			74,141,753




TOTAL SHORT-TERM INVESTMENTS (Cost: $74,141,753)			74,141,753


TOTAL INVESTMENTS IN SECURITIES – 105.01% (Cost: $1,613,800,756)			1,522,288,823

Other Assets, Less Liabilities – (5.01)%			(72,583,313	)


NET ASSETS – 100.00%		$	1,449,705,510

ADR – American Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


46		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.25%

AUSTRALIA – 64.75%
A.B.C. Learning Centres Ltd.	1,105,788	$	2,213,518
AGL Energy Ltd.	1,251,042		13,106,517
Alumina Ltd.	2,929,848		17,676,740
Amcor Ltd.	2,416,686		16,004,822
AMP Ltd.	5,293,128		39,857,095
Ansell Ltd.	256,798		3,069,869
Aristocrat Leisure Ltd.^a	993,816		9,668,001
Asciano Group	1,558,320		7,244,533
ASX Ltd.	492,522		19,368,042
Australia and New Zealand Banking Group Ltd.	5,262,168		108,289,103
AXA Asia Pacific Holdings Ltd.	2,376,696		12,894,336
Babcock & Brown Ltd.^a	662,028		10,737,986
Bendigo Bank Ltd.	733,236		6,934,135
BHP Billiton Ltd.	9,430,158		349,133,984
Billabong International Ltd.	489,426		5,768,394
BlueScope Steel Ltd.	2,041,554		20,815,399
Boart Longyear Group^b	3,314,010		6,354,846
Boral Ltd.	1,731,180		9,780,849
Brambles Ltd.	3,960,042		38,672,091
Caltex Australia Ltd.	412,026		5,704,055
CFS Retail Property Trust^a	4,101,426		8,133,324
Challenger Financial Services Group Ltd.^a	1,026,066		2,111,521
Coca-Cola Amatil Ltd.	1,528,392		13,753,309
Cochlear Ltd.	156,864		7,910,246
Commonwealth Bank of Australia	3,693,012		145,535,702
Commonwealth Property Office Fund^a	2,413,761		2,935,182
Computershare Ltd.	1,358,112		10,810,916
Crown Ltd.^b	1,342,632		14,568,416
CSL Ltd.	1,544,388		52,728,650
CSR Ltd.	2,580,258		8,157,878
Dexus Property Group	7,953,366		12,461,294
Downer EDI Ltd.	413,921		2,412,142
Fortescue Metals Group Ltd.^b	3,596,850		26,411,274
Foster’s Group Ltd.	5,511,138		27,476,782
Futuris Corp. Ltd.	1,024,776		1,926,737
Goodman Fielder Ltd.	3,078,714		5,399,680


Security	Shares	Value
Goodman Group^a	4,085,946	$	16,778,553
GPT Group	5,859,696		17,539,711
Harvey Norman Holdings Ltd.	1,614,822		6,872,796
Iluka Resources Ltd.^a	286,790		965,748
Incitec Pivot Ltd.	135,708		18,787,307
ING Industrial Fund^a	1,573,757		3,076,673
Insurance Australia Group Ltd.	5,123,880		18,069,148
James Hardie Industries NV	1,360,434		7,635,300
John Fairfax Holdings Ltd.	3,403,020		12,350,757
Leighton Holdings Ltd.	396,546		17,062,740
Lend Lease Corp. Ltd.	1,013,682		13,160,990
Lion Nathan Ltd.	771,936		6,895,758
Macquarie Airports	1,883,142		6,182,834
Macquarie Communications Infrastructure Group	687,949		2,998,745
Macquarie Group Ltd.^a	767,292		38,477,234
Macquarie Infrastructure Group	7,107,642		19,413,586
Macquarie Office Trust^a	5,754,606		5,840,401
Mirvac Group	2,932,428		10,587,954
National Australia Bank Ltd.	4,562,214		123,117,230
Newcrest Mining Ltd.	1,285,738		45,749,922
OneSteel Ltd.	2,021,946		13,352,778
Orica Ltd.	887,520		23,909,363
Origin Energy Ltd.	2,436,552		20,170,484
Oxiana Ltd.	3,761,124		13,967,077
Pacific Brands Ltd.	698,854		1,451,232
Paladin Energy Ltd.^a,b	1,544,904		9,031,895
PaperlinX Ltd.	686,308		1,360,982
Perpetual Ltd.^a	101,136		5,203,144
Qantas Airways Ltd.^a	2,735,316		10,797,354
QBE Insurance Group Ltd.	2,397,078		50,607,058
Rio Tinto Ltd.^a	818,562		104,898,557
Santos Ltd.	1,596,762		19,267,584
Sims Group Ltd.	246,648		7,509,758
Sonic Healthcare Ltd.	894,486		12,006,677
St. George Bank Ltd.^a	752,586		16,754,461
Stockland Corp. Ltd.	3,993,840		26,337,657
Suncorp-Metway Ltd.	2,596,770		33,787,650
Tabcorp Holdings Ltd.^a	1,432,674		20,450,281
Tatts Group Ltd.	3,005,442		10,992,146
Telstra Corp. Ltd.	8,037,732		36,615,068
Telstra Corp. Ltd. Instalment Receipts	4,083,882		12,529,807


SCHEDULES OF INVESTMENTS		47

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 29, 2008


Security	Shares	Value
Toll Holdings Ltd.	1,518,330	$	14,557,520
Transurban Group^a	3,058,332		18,451,926
Wesfarmers Ltd.	1,516,266		53,498,850
Wesfarmers Ltd. Partially Protected Shares	412,800		14,653,752
Westfield Group^a	4,900,194		80,213,726
Westpac Banking Corp.	5,243,076		114,369,985
Woodside Petroleum Ltd.	1,324,572		70,623,265
Woolworths Ltd.	3,420,048		92,742,283
WorleyParsons Ltd.	430,602		15,120,553
Zinifex Ltd.	1,378,236		14,348,818

			2,377,172,446

HONG KONG – 22.59%
ASM Pacific Technology Ltd.^a	516,000		3,481,714
Bank of East Asia Ltd.	4,076,400		22,397,370
Belle International Holdings Ltd.	5,934,000		7,306,294
BOC Hong Kong (Holdings) Ltd.	10,320,000		25,864,163
C C Land Holdings Ltd.	2,580,000		2,719,053
Cathay Pacific Airways Ltd.^a	3,870,000		8,077,577
Cheung Kong (Holdings) Ltd.	4,386,000		67,081,028
Cheung Kong Infrastructure Holdings Ltd.^a	1,032,000		4,125,002
Chinese Estates Holdings Ltd.^a	1,548,000		2,311,858
CITIC International Financial Holdings Ltd.	516,000		263,284
CLP Holdings Ltd.	3,612,000		28,550,057
Esprit Holdings Ltd.	2,967,000		38,209,327
Fosun International Ltd.^b	4,257,000		3,370,299
Foxconn International Holdings Ltd.^a,b	5,934,000		9,487,506
Genting International PLC^a,b	6,708,000		3,006,670
Giordano International Ltd.	2,064,000		870,097
Hang Lung Development Co. Ltd.	1,032,000		4,827,977
Hang Lung Properties Ltd.	5,934,736		21,929,230
Hang Seng Bank Ltd.	2,141,400		41,310,705
Henderson Land Development Co. Ltd.	2,838,056		22,578,534
Hong Kong Aircraft Engineering Co. Ltd.	206,400		4,615,758
Hong Kong and China Gas Co. Ltd. (The)	10,578,419		31,270,348


Security	Shares	Value
Hong Kong Exchanges and Clearing Ltd.	2,967,000	$	57,733,454
Hongkong Electric Holdings Ltd.^a	3,741,000		21,347,882
Hopewell Holdings Ltd.	1,806,000		8,379,325
Hutchison Telecommunications International Ltd.	4,128,000		5,634,408
Hutchison Whampoa Ltd.	6,192,000		59,049,874
Hysan Development Co. Ltd.	1,806,000		5,071,697
Kerry Properties Ltd.^a	1,677,000		11,444,892
Kingboard Chemical Holdings Co. Ltd.	1,806,000		8,170,423
Lee & Man Paper Manufacturing Ltd.^a	1,034,000		2,930,308
Li & Fung Ltd.^a	6,193,600		23,084,755
Lifestyle International Holdings Ltd.^a	1,677,000		4,461,568
Link REIT (The)	5,934,000		14,688,855
Melco International Development Ltd.^a	2,084,000		3,010,566
MTR Corp. Ltd.	4,128,000		15,571,552
New World Development Co. Ltd.	6,966,941		19,206,735
Noble Group Ltd.^a	2,838,000		4,559,036
NWS Holdings Ltd.	1,032,000		3,037,381
Orient Overseas International Ltd.	516,000		3,097,068
Pacific Basin Shipping Ltd.^a	3,354,000		5,733,223
Parkson Retail Group Ltd.^a	258,000		2,724,027
PCCW Ltd.	11,868,845		6,879,694
Shangri-La Asia Ltd.^a	3,098,000		9,575,922
Shui On Land Ltd.	5,289,000		5,152,606
Shun Tak Holdings Ltd.	3,096,000		4,639,633
Sino Land Co. Ltd.	3,612,000		9,275,287
Sun Hung Kai Properties Ltd.	3,870,000		69,136,897
Swire Pacific Ltd. Class A	2,451,000		28,429,855
Television Broadcasts Ltd.	774,000		4,575,967
Tencent Holdings Ltd.	2,580,000		16,446,955
Tingyi (Cayman Islands) Holding Corp.^a	5,160,000		6,598,678
Wharf Holdings Ltd. (The)	4,068,000		21,148,696
Wheelock and Co. Ltd.	1,032,000		3,070,540


48		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 29, 2008


Security	Shares	Value
Wing Hang Bank Ltd.	516,000	$	7,619,981
Yue Yuen Industrial Holdings Ltd.^a	1,419,000		4,249,349

			829,390,940

NEW ZEALAND – 1.26%
Auckland International Airport Ltd.	2,763,438		5,495,682
Contact Energy Ltd.	829,986		5,251,314
Fisher & Paykel Appliances Holdings Ltd.^a	285,005		589,647
Fisher & Paykel Healthcare Corp. Ltd.	906,354		1,918,766
Fletcher Building Ltd.	1,363,788		10,487,831
Kiwi Income Property Trust	1,209,584		1,202,757
Sky City Entertainment Group Ltd.	1,175,632		3,733,248
Sky Network Television Ltd.	343,140		1,381,323
Telecom Corp. of New Zealand Ltd.	5,044,674		15,655,404
Vector Ltd.	458,492		683,856

			46,399,828

SINGAPORE – 10.65%
Allgreen Properties Ltd.	2,065,000		1,895,583
Ascendas Real Estate Investment Trust	2,839,000		4,581,003
CapitaCommercial Trust^a	2,580,000		3,830,034
CapitaLand Ltd.^a	4,644,000		20,981,928
CapitaMall Trust Management Ltd.	3,096,622		7,261,872
City Developments Ltd.	1,290,000		11,064,544
ComfortDelGro Corp. Ltd.	5,418,000		6,178,012
COSCO Corp. (Singapore) Ltd.	2,323,104		6,797,378
DBS Group Holdings Ltd.	3,096,000		38,500,172
Fraser and Neave Ltd.	2,322,150		8,160,165
Haw Par Corp. Ltd.^a	258,397		1,182,281
Jardine Cycle & Carriage Ltd.	258,000		3,978,055
Keppel Corp. Ltd.	3,096,000		23,934,939
Keppel Land Ltd.^a	1,033,000		4,370,840
Neptune Orient Lines Ltd.	1,032,000		2,323,924


Security	Shares	Value
Olam International Ltd.	1,806,000	$	3,354,518
Oversea-Chinese Banking Corp.	7,224,600		39,687,633
Parkway Holdings Ltd.	1,548,251		3,408,728
SembCorp Industries Ltd.	2,376,240		8,196,869
SembCorp Marine Ltd.	2,376,200		6,237,014
Singapore Airlines Ltd.	1,548,800		17,038,577
Singapore Exchange Ltd.	2,322,000		13,971,300
Singapore Land Ltd.^a	258,000		1,315,533
Singapore Petroleum Co. Ltd.	258,000		1,280,379
Singapore Post Ltd.	1,806,000		1,450,602
Singapore Press Holdings Ltd.^a	4,386,517		13,841,562
Singapore Technologies Engineering Ltd.	3,612,000		8,884,940
Singapore Telecommunications Ltd.	22,446,328		61,975,303
SMRT Corp. Ltd.	1,549,000		1,955,135
United Overseas Bank Ltd.	3,612,000		46,678,313
UOL Group Ltd.	1,290,000		3,608,003
Venture Corp. Ltd.	774,695		5,722,432
Wilmar International Ltd.^a	1,290,000		4,061,317
Wing Tai Holdings Ltd.	774,066		1,199,070
Yanlord Land Group Ltd.^a	1,032,000		1,879,862

			390,787,820


TOTAL COMMON STOCKS (Cost: $2,647,504,889)			3,643,751,034

SHORT-TERM INVESTMENTS – 6.41%

MONEY MARKET FUNDS – 6.41%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	288,373		288,373
BGI Cash Premier Fund LLC 3.63%^c,d,e	234,931,155		234,931,155

			235,219,528


TOTAL SHORT-TERM INVESTMENTS (Cost: $235,219,528)			235,219,528


SCHEDULES OF INVESTMENTS		49

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 29, 2008


	Value
TOTAL INVESTMENTS IN SECURITIES – 105.66% (Cost: $2,882,724,417)	$	3,878,970,562

Other Assets, Less Liabilities – (5.66)%		(207,900,929	)


NET ASSETS – 100.00%	$	3,671,069,633

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

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


50		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.91%

AGRICULTURE – 1.00%
Wilmar International Ltd.^a	5,436,000	$	17,114,200

			17,114,200

AIRLINES – 4.38%
Singapore Airlines Ltd.	6,795,467		74,757,935

			74,757,935

BANKS – 28.95%
DBS Group Holdings Ltd.	12,957,000		161,126,205
Oversea-Chinese Banking Corp.	28,539,000		156,776,205
United Overseas Bank Ltd.	13,595,000		175,689,831

			493,592,241

BEVERAGES – 2.24%
Fraser and Neave Ltd.	10,872,000		38,204,819

			38,204,819

DISTRIBUTION & WHOLESALE – 1.37%
Jardine Cycle & Carriage Ltd.	1,509,000		23,266,996

			23,266,996

DIVERSIFIED FINANCIAL SERVICES – 3.36%
Singapore Exchange Ltd.^a	9,519,000		57,275,108

			57,275,108

ELECTRONICS – 1.18%
Venture Corp. Ltd.	2,718,522		20,080,878

			20,080,878

ENGINEERING & CONSTRUCTION – 4.77%
SembCorp Industries Ltd.	10,976,000		37,861,847
Singapore Technologies Engineering Ltd.	17,667,000		43,457,982

			81,319,829

FOOD – 0.89%
Olam International Ltd.	8,154,000		15,145,482

			15,145,482

HEALTH CARE - SERVICES – 1.05%
Parkway Holdings Ltd.	8,154,500		17,953,468

			17,953,468

HOLDING COMPANIES - DIVERSIFIED – 7.19%
Haw Par Corp. Ltd.^a	1,365,000		6,245,482
Keppel Corp. Ltd.	12,231,000		94,556,928
Noble Group Ltd.^a	13,590,000		21,831,325

			122,633,735


Security	Shares	Value
MEDIA – 3.77%
Singapore Press Holdings Ltd.	20,385,000	$	64,324,441

			64,324,441

OIL & GAS – 0.61%
Singapore Petroleum Co. Ltd.	2,087,000		10,357,172

			10,357,172

REAL ESTATE – 13.24%
Allgreen Properties Ltd.	9,513,000		8,732,530
CapitaLand Ltd.^a	18,493,000		83,552,711
City Developments Ltd.	6,795,000		58,281,842
Genting International PLC^a,b	29,898,000		13,400,925
Keppel Land Ltd.^a	4,077,000		17,250,646
Singapore Land Ltd.^a	1,359,000		6,929,496
UOL Group Ltd.	6,795,000		19,004,948
Wing Tai Holdings Ltd.^a	4,077,100		6,315,645
Yanlord Land Group Ltd.^a	6,795,000		12,377,582

			225,846,325

REAL ESTATE INVESTMENT TRUSTS – 4.41%
Ascendas Real Estate Investment Trust^a	13,590,000		21,928,787
CapitaCommercial Trust	12,231,000		18,157,035
CapitaMall Trust Management Ltd.	14,949,000		35,056,820

			75,142,642

SHIPBUILDING – 1.51%
SembCorp Marine Ltd.^a	9,814,000		25,759,637

			25,759,637

TELECOMMUNICATIONS – 15.18%
Singapore Telecommunications Ltd.	93,771,568		258,907,442

			258,907,442

TRANSPORTATION – 4.81%
ComfortDelGro Corp. Ltd.	23,103,000		26,343,782
COSCO Corp. (Singapore) Ltd.	9,513,000		27,834,940
Neptune Orient Lines Ltd.^a	5,443,000		12,256,899
Singapore Post Ltd.	10,872,000		8,732,530
SMRT Corp. Ltd.	5,436,000		6,861,274

			82,029,425


TOTAL COMMON STOCKS (Cost: $1,644,110,930)			1,703,711,775


SCHEDULES OF INVESTMENTS		51

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 29, 2008


Security	Shares	Value
SHORT-TERM INVESTMENTS – 7.16%

MONEY MARKET FUNDS – 7.16%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	67,197	$	67,197
BGI Cash Premier Fund LLC 3.63%^c,d,e	122,021,330		122,021,330

			122,088,527


TOTAL SHORT-TERM INVESTMENTS (Cost: $122,088,527)			122,088,527


TOTAL INVESTMENTS IN SECURITIES – 107.07% (Cost: $1,766,199,457)			1,825,800,302

Other Assets, Less Liabilities – (7.07)%			(120,504,125	)


NET ASSETS – 100.00%		$	1,705,296,177

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

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


52		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 98.75%

BANKS – 11.78%
Absa Group Ltd.	392,544	$	5,661,097
FirstRand Ltd.	7,262,784		17,487,952
Nedbank Group Ltd.	531,833		8,012,266
Standard Bank Group Ltd.	2,946,912		37,376,413

			68,537,728

BUILDING MATERIALS – 1.30%
Pretoria Portland Cement Co. Ltd.	1,376,352		7,585,208

			7,585,208

DIVERSIFIED FINANCIAL SERVICES – 2.57%
African Bank Investments Ltd.	2,032,494		8,139,241
Investec Ltd.	448,895		3,468,089
RMB Holdings Ltd.	925,344		3,336,226

			14,943,556

ELECTRONICS – 0.58%
Reunert Ltd.	455,807		3,374,761

			3,374,761

ENGINEERING & CONSTRUCTION – 2.87%
Aveng Ltd.^a	877,728		7,007,222
Murray & Roberts Holdings Ltd.	766,464		9,721,252

			16,728,474

FOOD – 2.54%
Shoprite Holdings Ltd.	1,111,584		5,832,626
SPAR Group Ltd. (The)	216,385		1,386,164
Tiger Brands Ltd.	420,953		7,589,041

			14,807,831

FOREST PRODUCTS & PAPER – 1.15%
Sappi Ltd.	529,953		6,673,758

			6,673,758

HEALTH CARE - PRODUCTS – 0.38%
Aspen Pharmacare Holdings Ltd.^b	553,782		2,196,260

			2,196,260

HEALTH CARE - SERVICES – 0.66%
Network Healthcare Holdings Ltd.^b	3,098,299		3,817,943

			3,817,943

HOLDING COMPANIES - DIVERSIFIED – 6.47%
AVI Ltd.	417,024		945,079
Barloworld Ltd.	525,947		6,433,685
Bidvest Group Ltd.	678,720		10,138,654


Security	Shares	Value
Imperial Holdings Ltd.	456,964	$	4,707,238
Remgro Ltd.	591,456		15,460,114

			37,684,770

HOME FURNISHINGS – 1.12%
Lewis Group Ltd.	113,664		658,612
Steinhoff International Holdings Ltd.	2,540,768		5,885,595
Steinhoff International Holdings Ltd.	2,540,768		5,885,595

			6,544,207

INSURANCE – 3.08%
Liberty Group Ltd.	298,825		2,924,319
Metropolitan Holdings Ltd.	733,248		1,359,589
Sanlam Ltd.	5,639,712		13,616,090

			17,899,998

IRON & STEEL – 3.66%
ArcelorMittal South Africa Ltd.	518,330		12,480,793
Kumba Iron Ore Ltd.	203,952		8,850,180

			21,330,973

MEDIA – 3.31%
Naspers Ltd.	1,003,104		19,269,920

			19,269,920

MINING – 26.51%
African Rainbow Minerals Ltd.	298,644		7,835,120
Anglo Platinum Ltd.	182,496		29,138,639
AngloGold Ashanti Ltd.	570,144		20,812,864
Exxaro Resources Ltd.	362,784		4,764,776
Gold Fields Ltd.	1,595,808		22,500,335
Harmony Gold Mining Co. Ltd.^b	878,745		10,885,094
Impala Platinum Holdings Ltd.	1,381,248		58,347,086

			154,283,914

OIL & GAS – 13.74%
Sasol Ltd.	1,542,624		79,950,318

			79,950,318

PACKAGING & CONTAINERS – 0.28%
Nampak Ltd.	675,052		1,608,063

			1,608,063

REAL ESTATE – 0.17%
Fountainhead Property Trust	1,314,048		998,292

			998,292

RETAIL – 3.40%
Foschini Ltd.	527,985		2,846,550
JD Group Ltd.	464,775		2,534,489


SCHEDULES OF INVESTMENTS		53

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 29, 2008


Security	Shares	Value
Massmart Holdings Ltd.	520,847	$	4,828,774
Pick’n Pay Stores Ltd.	563,043		2,247,489
Truworths International Ltd.	1,165,901		3,979,840
Woolworths Holdings Ltd.	2,089,517		3,341,656

			19,778,798

TELECOMMUNICATIONS – 12.89%
MTN Group Ltd.	3,839,616		61,306,102
Telkom South Africa Ltd.	754,560		13,699,576

			75,005,678

TRANSPORTATION – 0.29%
Grindrod Ltd.	419,513		1,301,837
Super Group Ltd.	340,608		372,793

			1,674,630


TOTAL COMMON STOCKS (Cost: $624,232,708)			574,695,080

SHORT-TERM INVESTMENTS – 0.73%

MONEY MARKET FUNDS – 0.73%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	1,543		1,543
BGI Cash Premier Fund LLC 3.63%^c,d,e	4,228,669		4,228,669

			4,230,212


TOTAL SHORT-TERM INVESTMENTS (Cost: $4,230,212)			4,230,212


TOTAL INVESTMENTS IN SECURITIES – 99.48% (Cost: $628,462,920)			578,925,292

Other Assets, Less Liabilities – 0.52%			3,051,435


NET ASSETS – 100.00%		$	581,976,727

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

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


54		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 96.42%

ADVERTISING – 0.10%
Cheil Communications Inc.	11,300	$	3,170,811

			3,170,811

AEROSPACE & DEFENSE – 0.36%
Hyundai Merchant Marine Co. Ltd.^a,b	282,500		12,033,438

			12,033,438

AGRICULTURE – 1.88%
KT&G Corp.	754,840		62,538,259

			62,538,259

AIRLINES – 0.65%
Asiana Airlines Inc.	339,000		2,581,172
Korean Air Co. Ltd.	248,602		19,140,541

			21,721,713

APPAREL – 0.07%
LG Fashion Corp.^b	90,404		2,445,303

			2,445,303

AUTO MANUFACTURERS – 2.72%
Hyundai Motor Co. Ltd.^b	1,073,500		76,364,198
Kia Motors Corp.^a,b	1,367,300		14,181,888

			90,546,086

AUTO PARTS & EQUIPMENT – 1.23%
Hankook Tire Co. Ltd.	655,400		10,120,121
Hyundai Mobis^b	395,506		30,703,783

			40,823,904

BANKS – 6.17%
Daegu Bank	904,000		12,514,776
Industrial Bank of Korea^b	510,780		8,349,367
Kookmin Bank	2,361,709		148,133,390
Korea Exchange Bank	1,785,400		25,192,003
Pusan Bank	813,600		10,916,735

			205,106,271

BEVERAGES – 0.42%
Hite Brewery Co. Ltd.^b	90,400		11,359,566
Lotte Chilsung Beverage Co. Ltd.^a,b	2,260		2,442,788
Lotte Chilsung Beverage Co. Ltd.^a,b	2,260		2,442,788

			13,802,354


Security	Shares	Value
CHEMICALS – 3.38%
DC Chemical Co. Ltd.	77,810	$	28,586,816
Hanwha Chemical Corp.^b	372,900		7,008,876
Honam Petrochemical Corp.^a	101,700		10,115,308
KCC Corp.^b	33,900		20,216,176
Korea Zinc Co. Ltd.^b	67,800		10,505,191
LG Chem Ltd.	372,905		31,768,703
Samsung Fine Chemicals Co. Ltd.^b	67,800		4,144,316
Samsung Fine Chemicals Co. Ltd.^b	67,800		4,144,316

			112,345,386

COMMERCIAL SERVICES – 0.11%
S1 Corp.	67,800		3,624,472

			3,624,472

COSMETICS & PERSONAL CARE – 0.48%
AmorePacific Corp.^b	22,600		14,199,457
Pacific Corp.^b	11,309		1,655,916

			15,855,373

DISTRIBUTION & WHOLESALE – 3.41%
Daewoo International Corp.^b	327,700		12,562,909
Hanwha Corp.	316,400		19,609,691
Hyosung Corp.^b	158,205		10,613,828
LG International Corp.^b	124,305		2,263,581
Samsung Corp.^b	926,600		57,823,076
SK Networks Co. Ltd.^a	508,500		10,288,590

			113,161,675

DIVERSIFIED FINANCIAL SERVICES – 9.56%
Daewoo Securities Co. Ltd.^b	813,600		20,490,538
Daishin Securities Co. Ltd.^b	158,200		4,220,127
Hana Financial Group Inc.	813,601		36,389,161
Hyundai Securities Co. Ltd.^b	952,327		17,138,945
Korea Investment Holdings Co. Ltd.	282,505		15,613,662
Mirae Asset Securities Co. Ltd.^b	135,604		19,927,961
Samsung Card Co. Ltd.	230,345		12,411,966
Samsung Securities Co.^b	384,200		27,412,172
Shinhan Financial Group Ltd.	2,293,900		125,803,578
Tong Yang Investment Bank^b	508,502		10,044,952
Woori Finance Holdings Co. Ltd.^a,b	761,160		13,820,114
Woori Investment & Securities Co. Ltd.^b	621,500		14,461,184

			317,734,360


SCHEDULES OF INVESTMENTS		55

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 29, 2008


Security	Shares	Value
ELECTRIC – 1.93%
Korea Electric Power Corp.	1,808,000	$	64,017,890

			64,017,890

ELECTRICAL COMPONENTS & EQUIPMENT – 2.78%
LG Electronics Inc.^b	655,406		71,888,417
LS Cable Ltd.	135,600		13,126,074
Taihan Electric Wire Co. Ltd.^b	144,590		7,236,814

			92,251,305

ELECTRONICS – 2.25%
Hyundai Autonet Co. Ltd.^a,b	384,200		2,250,253
LG.Philips LCD Co. Ltd.^b	745,800		36,176,125
Samsung Electro-Mechanics Co. Ltd.^b	418,100		19,657,223
Samsung SDI Co. Ltd.^a,b	237,300		16,779,426

			74,863,027

ENGINEERING & CONSTRUCTION – 5.97%
Daelim Industrial Co. Ltd.	192,100		30,685,267
Daewoo Engineering & Construction Co. Ltd.^b	1,039,604		22,695,151
Doosan Heavy Industries & Construction Co. Ltd.^b	214,700		31,894,628
GS Engineering & Construction Corp.	248,600		39,048,506
Hanjin Heavy Industries & Construction Co. Ltd.^b	214,716		13,513,355
Hyundai Engineering & Construction Co. Inc.^b	316,400		29,077,600
Kumho Industrial Co. Ltd.^b	150,070		7,487,119
Samsung Engineering Co. Ltd.	226,000		24,066,876

			198,468,502

ENVIRONMENTAL CONTROL – 0.32%
Woongjin Coway Co. Ltd.	316,400		10,781,961

			10,781,961

FOOD – 0.70%
CJ CheilJedang Corp.^a,b	46,851		13,395,978
Lotte Confectionery Co. Ltd.^a,b	3,500		5,136,042
Nong Shim Co. Ltd.^b	11,302		2,310,829
Orion Corp.^b	11,309		2,366,454

			23,209,303

GAS – 0.35%
Korea Gas Corp.	155,720		11,757,146

			11,757,146


Security	Shares	Value
HOLDING COMPANIES - DIVERSIFIED – 0.83%
GS Holdings Corp.	144,590	$	7,136,730
LG Corp.	289,280		20,516,531

			27,653,261

HOME BUILDERS – 0.99%
Hyundai Development Co.^b	452,007		32,923,996

			32,923,996

HOUSEHOLD PRODUCTS & WARES – 0.44%
LG Household & Health Care Ltd.^b	79,100		14,530,376

			14,530,376

INSURANCE – 2.06%
Dongbu Insurance Co. Ltd.	248,600		10,059,954
Hyundai Marine & Fire Insurance Co. Ltd.^b	259,900		5,950,535
Korean Reinsurance Co.^b	271,200		2,830,265
Samsung Fire & Marine Insurance Co. Ltd.^b	248,600		49,637,932

			68,478,686

INTERNET – 2.13%
Daum Communications Corp.^a	38,420		3,440,841
LG Dacom Corp.	230,330		3,924,477
NCsoft Corp.^a,b	56,500		2,725,574
NHN Corp.^a	266,680		60,631,681

			70,722,573

IRON & STEEL – 10.02%
Dongkuk Steel Mill Co. Ltd.^b	259,911		11,901,574
Hyundai Steel Co.	350,300		27,716,618
POSCO	519,800		293,375,220

			332,993,412

LODGING – 0.51%
Kangwon Land Inc.^b	768,402		17,020,139

			17,020,139

MACHINERY – 0.66%
Doosan Infracore Co. Ltd.^b	531,100		16,938,869
STX Engine Co. Ltd.^a	90,050		4,813,918

			21,752,787

MANUFACTURING – 0.76%
Cheil Industries Inc.	316,400		14,488,259
Doosan Corp.^a,b	55,550		10,914,195

			25,402,454


56		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 29, 2008


Security	Shares	Value
MINING – 0.05%
Poongsan Corp.^b	79,108	$	1,651,155

			1,651,155

MULTIPLE UTILITIES – 0.45%
KT Freetel Co. Ltd.^a	565,000		14,861,296

			14,861,296

OIL & GAS – 3.51%
SK Corp.^b	248,604		45,138,152
SK Energy Co. Ltd.	352,560		48,995,346
S-Oil Corp.^b	316,400		22,608,424

			116,741,922

PHARMACEUTICALS – 0.27%
Hanmi Pharm Co. Ltd.^b	23,733		4,208,024
Yuhan Corp.^b	23,737		4,739,564

			8,947,588

RETAIL – 2.82%
Hyundai Department Store Co. Ltd.^b	101,700		9,692,934
Lotte Shopping Co. Ltd.^b	58,500		20,028,486
Shinsegae Co. Ltd.	101,700		63,897,556

			93,618,976

SEMICONDUCTORS – 14.86%
Hynix Semiconductor Inc.^a,b	623,180		16,292,071
Samsung Electronics Co. Ltd.	768,400		458,233,321
Samsung Techwin Co. Ltd.^b	372,900		19,438,214

			493,963,606

SHIPBUILDING – 6.73%
Daewoo Shipbuilding & Marine Engineering Co. Ltd.^a,b	666,700		27,014,467
Hyundai Heavy Industries Co. Ltd.^b	293,800		119,359,672
Hyundai Mipo Dockyard Co. Ltd.^b	79,100		22,911,666
Samsung Heavy Industries Co. Ltd.^b	1,209,100		41,138,113
STX Shipbuilding Co. Ltd.^a,b	322,670		13,194,748

			223,618,666

TELECOMMUNICATIONS – 3.30%
KT Corp.	689,351		34,135,372
KT Corp. SP ADR^a	565,000		13,723,850
LG Telecom Ltd.	945,920		8,108,893


Security	Shares	Value
SKTelecom Co. Ltd.	139,320	$	28,559,821
SKTelecom Co. Ltd. ADR	1,118,736		25,059,686

			109,587,622

TRANSPORTATION – 1.19%
Hanjin Shipping Co. Ltd.^b	372,900		14,434,711
Korea Line Corp.^b	44,420		9,507,928
STX Pan Ocean Co. Ltd.	6,689,600		15,707,969

			39,650,608


TOTAL COMMON STOCKS (Cost: $2,444,843,210)			3,204,377,662

PREFERRED STOCKS – 2.27%

AUTO MANUFACTURERS – 0.24%
Hyundai Motor Co. Ltd.	271,200		7,884,309

			7,884,309

ELECTRICAL COMPONENTS & EQUIPMENT – 0.10%
LG Electronics Inc.	67,800		3,371,769


			3,371,769

SEMICONDUCTORS – 1.93%
Samsung Electronics Co. Ltd.^b	146,900		64,060,007

			64,060,007


TOTAL PREFERRED STOCKS (Cost: $81,244,760)			75,316,085

SHORT-TERM INVESTMENTS – 22.70%

MONEY MARKET FUNDS – 22.70%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	681,563		681,563
BGI Cash Premier Fund LLC 3.63%^c,d,e	753,813,993		753,813,993

			754,495,556


TOTAL SHORT-TERM INVESTMENTS (Cost: $754,495,556)			754,495,556


SCHEDULES OF INVESTMENTS		57

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 29, 2008


	Value
TOTAL INVESTMENTS IN SECURITIES – 121.39% (Cost: $3,280,583,526)	$	4,034,189,303



Other Assets, Less Liabilities – (21.39)%		(710,736,115	)


NET ASSETS – 100.00%	$	3,323,453,188

ADR – American Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

^a	Non-income earning security.

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

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


58		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI TAIWAN INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.74%

AIRLINES – 0.38%
China Airlines	10,516,588	$	5,800,027
EVA Airways Corp.^a	9,560,396		5,380,912

			11,180,939

APPAREL – 0.43%
Pou Chen Corp.	14,340,272		12,663,413

			12,663,413

AUTO MANUFACTURERS – 0.39%
China Motor Co. Ltd.	4,780,287		3,649,192
Yulon Motor Co. Ltd.	5,736,838		8,016,542

			11,665,734

AUTO PARTS & EQUIPMENT – 0.30%
Cheng Shin Rubber Industry Co. Ltd.	4,780,291		9,030,212

			9,030,212

BANKS – 6.99%
Chang Hwa Commercial Bank Ltd.	29,636,446		18,933,198
Chinatrust Financial Holding Co. Ltd.^a	56,404,566		51,542,261
E.Sun Financial Holding Co. Ltd.^a	22,944,378		13,396,281
First Financial Holding Co. Ltd.	34,416,324		31,505,158
Hua Nan Financial Holdings Co. Ltd.	25,812,965		20,707,150
Mega Financial Holding Co. Ltd.	65,964,136		47,688,773
Taishin Financial Holdings Co. Ltd.^a	36,328,439		17,274,076
Taiwan Cooperative Bank Ltd.	8,950,000		7,556,041

			208,602,938

BUILDING MATERIALS – 2.19%
Asia Cement Corp.	12,428,848		21,026,322
Taiwan Cement Corp.	21,032,197		37,417,785
Taiwan Glass Industrial Corp.	5,736,923		6,958,907

			65,403,014

CHEMICALS – 9.09%
Eternal Chemical Co. Ltd.	4,780,060		5,403,950
Formosa Chemicals & Fibre Co.	22,944,393		56,776,518


Security	Shares	Value
Formosa Plastics Corp.	32,504,111	$	89,474,360
Nan Ya Plastic Corp.	40,152,447		96,371,068
Oriental Union Chemical Corp.	1,912,704		1,911,776
Taiwan Fertilizer Co. Ltd.	5,221,000		21,110,303

			271,047,975

COMMERCIAL SERVICES – 0.11%
Taiwan Secom Co. Ltd.	1,912,610		3,322,243

			3,322,243

COMPUTER SYSTEMS – 0.20%
Mosel Vitelic Inc.	7,648,750		5,925,524

			5,925,524

COMPUTERS – 10.42%
Acer Inc.	18,164,617		33,902,584
Advantech Co. Ltd.	1,912,588		4,503,846
CMC Magnetics Corp.^a	21,988,400		7,254,785
Compal Electronics Inc.	22,944,944		21,004,105
Firich Enterprises Co. Ltd.	500,000		3,695,617
Foxconn Technology Co. Ltd.	3,264,824		21,754,933
High Tech Computer Corp.	3,824,760		81,406,828
Innolux Display Corp.	13,384,648		38,316,072
Inotera Memories Inc.	23,900,000		21,259,906
Inventec Co. Ltd.	11,472,098		6,753,750
Lite-On Technology Corp.	14,340,849		19,714,898
MiTAC International Corp.	8,604,952		7,543,076
Qisda Corp.^a	9,560,011		9,261,599
Quanta Computer Inc.	14,340,716		19,204,452
Ritek Corp.^a	9,560,389		2,359,559
Wistron Corp.	7,648,884		12,791,438

			310,727,448

DIVERSIFIED FINANCIAL SERVICES – 3.76%
Fubon Financial Holding Co. Ltd.	26,768,000		30,001,980
KGI Securities Co. Ltd.	18,890,000		11,456,817
Polaris Securities Co. Ltd.^a	14,340,646		8,303,334
SinoPac Financial Holdings Co. Ltd.	47,800,193		21,105,374
Waterland Financial Holdings	5,736,000		2,217,215
Yuanta Financial Holding Co. Ltd.^a	43,020,076		39,102,835

			112,187,555


SCHEDULES OF INVESTMENTS		59

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 29, 2008


Security	Shares	Value
ELECTRICAL COMPONENTS & EQUIPMENT – 2.06%
Delta Electronics Inc.	11,472,675	$	33,139,572
Pacific Electric Wire & Cable Co. Ltd.^b	986		–
Tatung Co. Ltd.^a	29,636,120		17,830,562
Walsin Lihwa Corp.	21,032,069		10,340,852

			61,310,986

ELECTRONICS – 19.00%
Asia Optical Co. Inc.	956,672		2,661,290
ASUSTeK Computer Inc.	24,856,765		69,790,302
AU Optronics Corp.	49,712,097		97,607,125
Cheng Uei Precision Industry Co. Ltd.	1,912,500		4,355,167
Chi Mei Optoelectronics Corp.	33,460,504		45,349,996
Chunghwa Picture Tubes Ltd.^a	48,756,105		16,638,425
Compeq Manufacturing Co. Ltd.	3,824,200		1,261,745
Gigabyte Technology Co. Ltd.	1,912,017		1,224,581
HannStar Display Corp.^a	33,460,712		14,774,017
Hon Hai Precision Industry Co. Ltd.	40,152,860		244,177,185
Kinsus Interconnect Technology Corp.	1,912,600		5,147,285
Micro-Star International Co. Ltd.	2,868,989		2,338,623
Nan Ya Printed Circuit Board Corp.	956,739		4,827,795
Pan-International Industrial Corp.	2,251,000		4,157,597
Phoenix Precision Technology Corp.	4,780,698		3,340,226
Synnex Technology International Corp.	5,980,093		15,126,743
Tripod Technology Corp.	2,868,040		10,019,354
Unimicron Technology Corp.	6,692,480		10,391,041
Wintek Corp.	7,648,537		7,743,788
Ya Hsin Industrial Co. Ltd.^b	6,845,461		22
Yageo Corp.	19,120,100		5,949,712

			566,882,019

ENERGY - ALTERNATE SOURCES – 0.22%
Motech Industries Inc.	956,366		6,620,163

			6,620,163


Security	Shares	Value
FOOD – 1.09%
Uni-President Enterprises Co.	21,988,675	$	32,504,689

			32,504,689

FOREST PRODUCTS & PAPER – 0.07%
Yuen Foong Yu Paper Manufacturing Co. Ltd.	4,780,863		2,056,784

			2,056,784

HOME FURNISHINGS – 0.26%
Teco Electric and Machinery Co. Ltd.	13,384,092		7,792,776

			7,792,776

INSURANCE – 4.48%
Cathay Financial Holding Co. Ltd.	43,976,905		113,800,822
Shin Kong Financial Holding Co. Ltd.	26,768,772		19,958,602

			133,759,424

INVESTMENT COMPANIES – 0.99%
China Development Financial Holding Co.	70,744,192		29,519,653

			29,519,653

IRON & STEEL – 3.77%
China Steel Corp. Tung Ho Steel Enterprise Corp.	68,832,762 4,780,000		104,646,282 7,854,569

			112,500,851

MANUFACTURING – 0.36%
Largan Precision Co. Ltd.	956,540		10,581,811

			10,581,811

METAL FABRICATE & HARDWARE – 0.54%
Catcher Technology Co. Ltd.	3,824,119		14,410,799
Yieh Phui Enterprise Co. Ltd.	3,824,265		1,787,502

			16,198,301

OFFICE & BUSINESS EQUIPMENT – 0.05%
Kinpo Electronics Inc.	4,780,624		1,615,964

			1,615,964

OIL & GAS – 1.44%
Formosa Petrochemical Corp.	15,296,000		43,045,512

			43,045,512


60		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 29, 2008


Security	Shares	Value
REAL ESTATE – 0.17%
Cathay Real Estate Development Co. Ltd.	7,648,493	$	5,195,483

			5,195,483

RETAIL – 0.74%
Far Eastern Department Stores Co. Ltd.	4,780,000		8,967,815
President Chain Store Corp.	3,824,640		13,175,616

			22,143,431

SEMICONDUCTORS – 22.77%
Advanced Semiconductor Engineering Inc.	29,636,716		27,992,628
Epistar Corp.	3,824,733		11,753,182
Everlight Electronics Co. Ltd.	1,916,000		7,282,226
Macronix International Co. Ltd.	22,944,097		10,501,665
MediaTek Inc.	6,692,535		77,067,523
Nanya Technology Corp.	20,076,690		11,754,426
Novatek Microelectronics Corp. Ltd.	2,868,718		10,346,500
Powerchip Semiconductor Corp.	58,316,901		23,768,169
Powertech Technology Inc.	2,868,650		9,882,297
ProMOS Technologies Inc.	43,976,000		11,593,220
Realtek Semiconductor Corp.	2,041,623		6,194,541
Richtek Technology Corp.	956,000		8,658,580
Siliconware Precision Industries Co. Ltd.	21,032,074		35,240,544
Sino-American Silicon Products Inc.	1,262,000		8,470,484
Taiwan Semiconductor Manufacturing Co. Ltd.	168,256,920		335,262,051
Transcend Information Inc.	1,916,000		5,435,329
United Microelectronics Corp.	95,600,834		56,745,118
Vanguard International Semiconductor Corp.	6,692,156		4,946,329
Via Technologies Inc.^a	7,648,861		4,676,160
Wafer Works Corp.	961,000		4,180,964
Winbond Electronics Corp.	26,768,280		7,533,043

			679,284,979


Security	Shares	Value
TELECOMMUNICATIONS – 4.93%
Chunghwa Telecom Co. Ltd.	38,240,709	$	95,864,627
Compal Communications Inc.	1,912,200		3,587,501
D-Link Corp.	3,475,768		5,565,276
Far EasTone Telecommunications Co. Ltd.	6,566,000		9,217,674
Inventec Appliances Corp.	1,912,800		3,774,246
Taiwan Cellular Corp.	13,442,677		22,784,935
Zinwell Corp.	960,000		3,002,814
Zyxel Communications Corp.	2,868,255		3,210,145

			147,007,218

TEXTILES – 1.38%
Far Eastern Textile Ltd.	21,032,270		35,240,873
Formosa Taffeta Co. Ltd.	5,736,515		5,789,399

			41,030,272

TRANSPORTATION – 1.16%
Evergreen Marine Corp. Ltd.	8,604,467		7,236,492
Taiwan Navigation Co. Ltd.	1,912,000		3,531,464
U-Ming Marine Transport Corp.	3,824,800		10,516,190
Wan Hai Lines Ltd.	8,604,794		7,515,104
Yang Ming Marine Transport Corp.	8,604,567		5,817,094

			34,616,344


TOTAL COMMON STOCKS (Cost: $2,224,854,762)			2,975,423,655

SHORT-TERM INVESTMENTS – 0.07%

MONEY MARKET FUNDS – 0.07%
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%^c,d	2,061,826		2,061,826

			2,061,826


TOTAL SHORT-TERM INVESTMENTS (Cost: $2,061,826)			2,061,826


SCHEDULES OF INVESTMENTS		61

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 29, 2008


	Value

TOTAL INVESTMENTS IN SECURITIES – 99.81% (Cost: $2,226,916,588)	$	2,977,485,481

Other Assets, Less Liabilities – 0.19%		5,669,828


NET ASSETS – 100.00%	$	2,983,155,309

^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.


62		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 29, 2008


	iShares MSCI
	Australia Index Fund			Brazil Index Fund		BRIC Index Fund			Canada Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	1,440,198,012		$	4,102,217,863	$	82,160,476		$	1,725,787,209
Affiliated issuers (Note 2)		67,215,093			13,507,560		1,477,807			1,645,862

Total cost of investments	$	1,507,413,105		$	4,115,725,423	$	83,638,283		$	1,727,433,071

Investments in securities, at value
(including securities on loan^a) (Note 1):
Unaffiliated issuers	$	1,462,666,917		$	7,499,131,470	$	80,289,714		$	1,905,785,292
Affiliated issuers (Note 2)		67,215,093			13,507,560		1,477,807			1,645,862

Total value of investments		1,529,882,010			7,512,639,030		81,767,521			1,907,431,154
Foreign currencies, at value^b		2,462,535			566,992		10,239			2,202,306
Receivables:
Investment securities sold		20,807,278			109,510,805		1,600,542			8,726,815
Due from custodian (Note 4)		–			–		1,440,927			10,253,880
Dividends and interest		13,576,929			42,875,153		70,336			2,088,429

Total Assets		1,566,728,752			7,665,591,980		84,889,565			1,930,702,584


LIABILITIES
Payables:
Investment securities purchased		19,299,737			140,426,073		3,014,725			19,204,687
Securities related to in-kind transactions (Note 4)		19,183			–		–			–
Collateral for securities on loan (Note 5)		67,181,173			–		1,406,050			–
Capital shares redeemed		980,860			–		–			139,783
Investment advisory fees (Note 2)		635,501			3,648,575		36,813			696,470

Total Liabilities		88,116,454			144,074,648		4,457,588			20,040,940


NET ASSETS	$	1,478,612,298		$	7,521,517,332	$	80,431,977		$	1,910,661,644


Net assets consist of:
Paid-in capital	$	1,382,818,480		$	4,018,613,534	$	82,443,279		$	1,599,008,871
Undistributed (distributions in excess of) net investment income		(31,182,276	)		22,154,375		12,234			312,212
Undistributed net realized gain (accumulated net realized loss)		104,175,698			82,140,749		(154,034	)		131,274,895
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		22,800,396			3,398,608,674		(1,869,502	)		180,065,666


NET ASSETS	$	1,478,612,298		$	7,521,517,332	$	80,431,977		$	1,910,661,644


Shares outstanding^c		54,200,000			89,950,000		1,500,000			59,500,000


Net asset value per share	$	27.28		$	83.62	$	53.62		$	32.11

^a	Securities on loan with market values of $61,472,816, $–, $1,300,855 and $–, respectively. See Note 5.

^b	Cost of foreign currencies: $2,433,112, $573,343, $9,985 and $2,156,402, respectively.

^c	$0.001 par value, number of shares authorized: 127.8 million, 500 million, 500 million and 340.2 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS		63

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 29, 2008


	iShares MSCI
	Chile Index Fund		Hong Kong Index Fund			Japan Small Cap Index Fund			Malaysia Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	43,720,206	$	2,330,762,814		$	9,376,751		$	1,086,990,298
Affiliated issuers (Note 2)		48,379		323,549,243			59,957			1,195,243

Total cost of investments	$	43,768,585	$	2,654,312,057		$	9,436,708		$	1,088,185,541

Investments in securities, at value
(including securities on loan^a) (Note 1):
Unaffiliated issuers	$	43,904,936	$	2,432,821,591		$	9,570,693		$	1,473,881,759
Affiliated issuers (Note 2)		48,379		323,549,243			59,957			1,195,243

Total value of investments		43,953,315		2,756,370,834			9,630,650			1,475,077,002
Foreign currencies, at value^b		20,868		1,552,762			4,567			347,125
Cash		2,022		–			–			–
Receivables:
Investment securities sold		–		–			–			13,630,515
Due from custodian (Note 4)		–		59,018			–			–
Dividends and interest		103		674,273			11,806			2,900,691

Total Assets		43,976,308		2,758,656,887			9,647,023			1,491,955,333


LIABILITIES
Payables:
Investment securities purchased		–		59,018			–			13,849,243
Collateral for securities on loan (Note 5)		–		320,970,555			52,980			–
Investment advisory fees (Note 2)		17,933		982,746			2,429			573,593

Total Liabilities		17,933		322,012,319			55,409			14,422,836


NET ASSETS	$	43,958,375	$	2,436,644,568		$	9,591,614		$	1,477,532,497


Net assets consist of:
Paid-in capital	$	43,717,051	$	2,216,029,452		$	9,393,260		$	1,137,171,378
Undistributed (distributions in excess of) net investment income		50,605		(4,291,369	)		3,913			(1,421,107	)
Undistributed net realized gain (accumulated net realized loss)		5,624		122,843,005			(161	)		(45,124,716	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		185,095		102,063,480			194,602			386,906,942


NET ASSETS	$	43,958,375	$	2,436,644,568		$	9,591,614		$	1,477,532,497


Shares outstanding^c		900,000		127,350,000			200,000			115,950,000


Net asset value per share	$	48.84	$	19.13		$	47.96		$	12.74

^a	Securities on loan with market values of $–, $303,742,452, $50,053 and $–, respectively. See Note 5.

^b	Cost of foreign currencies: $20,503, $1,548,355, $4,460 and $343,895, respectively.

^c	$0.001 par value, number of shares authorized: 200 million, 191.4 million, 500 million and 127.8 million, respectively.

See notes to financial statements.


64		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 29, 2008


	iShares MSCI
	Mexico Index Fund			Pacific ex-Japan Index Fund			Singapore Index Fund			South Africa Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	1,539,659,003		$	2,647,504,889		$	1,644,110,930		$	624,232,708
Affiliated issuers (Note 2)		74,141,753			235,219,528			122,088,527			4,230,212

Total cost of investments	$	1,613,800,756		$	2,882,724,417		$	1,766,199,457		$	628,462,920

Investments in securities, at value (including securities on loan^a) (Note 1):
Unaffiliated issuers	$	1,448,147,070		$	3,643,751,034		$	1,703,711,775		$	574,695,080
Affiliated issuers (Note 2)		74,141,753			235,219,528			122,088,527			4,230,212

Total value of investments		1,522,288,823			3,878,970,562			1,825,800,302			578,925,292
Foreign currencies, at value^b		1,639,964			6,531,468			1,775,887			926,001
Receivables:
Investment securities sold		10,585,817			35,719,193			23,344,570			1,952,845
Dividends and interest		81,810			21,734,436			1,151,942			6,949,777
Capital shares sold		95,381			–			–			–

Total Assets		1,534,691,795			3,942,955,659			1,852,072,701			588,753,915


LIABILITIES
Payables:
Investment securities purchased		10,619,056			35,518,640			22,940,187			2,267,648
Collateral for securities on loan (Note 5)		73,787,971			234,931,155			122,021,330			4,228,669
Capital shares redeemed		18,862			–			1,079,151			–
Investment advisory fees (Note 2)		560,396			1,436,231			735,856			280,871

Total Liabilities		84,986,285			271,886,026			146,776,524			6,777,188


NET ASSETS	$	1,449,705,510		$	3,671,069,633		$	1,705,296,177		$	581,976,727


Net assets consist of:
Paid-in capital	$	1,489,116,859		$	2,756,663,826		$	1,611,304,172		$	603,412,662
Undistributed (distributions in excess of) net investment income		(305,444	)		(87,474,756	)		(15,168,551	)		7,148,476
Undistributed net realized gain		52,398,881			4,958,609			49,514,989			21,077,892
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		(91,504,786	)		996,921,954			59,645,567			(49,662,303	)


NET ASSETS	$	1,449,705,510		$	3,671,069,633		$	1,705,296,177		$	581,976,727

Shares outstanding^c		26,000,000			25,800,000			135,900,000			4,800,000

Net asset value per share	$	55.76		$	142.29		$	12.55		$	121.25

^a	Securities on loan with market values of $69,924,359, $216,879,963, $114,549,630 and $3,873,495, respectively. See Note 5.

^b	Cost of foreign currencies: $1,632,817, $6,311,237, $1,754,666 and $975,353, respectively.

^c	$0.001 par value, number of shares authorized: 255 million, 500 million, 191.4 million and 200 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS		65

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 29, 2008


	iShares MSCI
	South Korea Index Fund			Taiwan Index Fund

ASSETS
Investments, at cost:
Unaffiliated issuers	$	2,526,087,970		$	2,224,854,762
Affiliated issuers (Note 2)		754,495,556			2,061,826

Total cost of investments	$	3,280,583,526		$	2,226,916,588

Investments in securities, at value (including securities on loan^a) (Note 1):
Unaffiliated issuers	$	3,279,693,747		$	2,975,423,655
Affiliated issuers (Note 2)		754,495,556			2,061,826

Total value of investments		4,034,189,303			2,977,485,481
Foreign currencies, at value^b		1,227,612			6,606,485
Cash		–			146,530
Receivables:
Investment securities sold		21,644,528			12,567,342
Dividends and interest		42,008,633			4,191
Capital shares sold		–			28,081,353

Total Assets		4,099,070,076			3,024,891,382


LIABILITIES
Payables:
Investment securities purchased		20,152,713			40,460,081
Collateral for securities on loan (Note 5)		753,813,993			–
Investment advisory fees (Note 2)		1,650,182			1,275,992

Total Liabilities		775,616,888			41,736,073


NET ASSETS	$	3,323,453,188		$	2,983,155,309


Net assets consist of:
Paid-in capital	$	2,674,737,674		$	2,497,771,427
Undistributed (distributions in excess of) net investment income		33,154,480			(1,287,075	)
Accumulated net realized loss		(138,114,546	)		(263,964,640	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		753,675,580			750,635,597

NET ASSETS	$	3,323,453,188		$	2,983,155,309


Shares outstanding^c		56,500,000			191,200,000


Net asset value per share	$	58.82		$	15.60

^a	Securities on loan with market values of $705,350,091 and $–, respectively. See Note 5.

^b	Cost of foreign currencies: $1,217,113 and $6,619,331, respectively.

^c	$0.001 par value, number of shares authorized: 200 million and 200 million, respectively.

See notes to financial statements.


66		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 29, 2008


	iShares MSCI
	Australia Index Fund			Brazil Index Fund		BRIC Index Fund^a			Canada Index Fund

NET INVESTMENT INCOME
Dividends from unaffiliated issuers^b	$	33,317,498		$	69,892,088	$	81,397		$	17,377,764
Interest from affiliated issuers (Note 2)		113,787			383,815		441			39,165
Securities lending income from affiliated issuers (Note 2)		290,242			1,904		2,523			–

Total investment income		33,721,527			70,277,807		84,361			17,416,929


EXPENSES
Investment advisory fees (Note 2)		4,656,773			21,458,642		72,127			4,671,979
Foreign taxes (Note 1)		–			87,883		–			–

Total expenses		4,656,773			21,546,525		72,127			4,671,979

Net investment income		29,064,754			48,731,282		12,234			12,744,950


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(24,350,778	)		131,352,182		(154,521	)		(15,673,487	)
In-kind redemptions		142,876,357			–		–			165,257,503
Foreign currency transactions		913,161			889,926		487			117,135

Net realized gain (loss)		119,438,740			132,242,108		(154,034	)		149,701,151

Net change in unrealized appreciation (depreciation) on:
Investments		(146,642,532	)		1,654,836,155		(1,870,762	)		(77,011,420	)
Translation of assets and liabilities in foreign currencies		416,987			1,316,426		1,260			62,133

Net change in unrealized appreciation (depreciation)		(146,225,545	)		1,656,152,581		(1,869,502	)		(76,949,287	)

Net realized and unrealized gain (loss)		(26,786,805	)		1,788,394,689		(2,023,536	)		72,751,864


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,277,949		$	1,837,125,971	$	(2,011,302	)	$	85,496,814

^a	For the period from November 12, 2007 (commencement of operations) to February 29, 2008.

^b	Net of foreign withholding tax of $777,890, $10,204,959, $9,067 and $3,066,308, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS		67

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 29, 2008


	iShares MSCI
	Chile Index Fund^a		Hong Kong Index Fund			Japan Small Cap Index Fund^b			Malaysia Index Fund

NET INVESTMENT INCOME
Dividends from unaffiliated issuers^c	$	110,591	$	19,767,866		$	11,215		$	17,610,718
Interest from affiliated issuers (Note 2)		350		84,960			19			48,352
Securities lending income from affiliated issuers (Note 2)		–		934,347			75			–

Total investment income		110,941		20,787,173			11,309			17,659,070


EXPENSES
Investment advisory fees (Note 2)		43,160		6,018,943			5,236			2,676,342

Total expenses		43,160		6,018,943			5,236			2,676,342

Net investment income		67,781		14,768,230			6,073			14,982,728


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		4,068		(20,845,909	)		(170	)		(3,217,483	)
In-kind redemptions		–		168,379,740			–			–
Foreign currency transactions		1,556		3,332			9			574,595

Net realized gain (loss)		5,624		147,537,163			(161	)		(2,642,888	)

Net change in unrealized appreciation (depreciation) on:
Investments		184,730		(131,160,510	)		193,942			129,976,401
Translation of assets and liabilities in foreign currencies		365		2,052			660			30,623

Net change in unrealized appreciation (depreciation)		185,095		(131,158,458	)		194,602			130,007,024

Net realized and unrealized gain		190,719		16,378,705			194,441			127,364,136

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	258,500	$	31,146,935		$	200,514		$	142,346,864

^a	For the period from November 12, 2007 (commencement of operations) to February 29, 2008.

^b	For the period from December 20, 2007 (commencement of operations) to February 29, 2008.

^c	Net of foreign withholding tax of $40,458, $–, $844 and $–, respectively.

See notes to financial statements.


68		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 29, 2008


	iShares MSCI
	Mexico Index Fund			Pacific ex-Japan Index Fund			Singapore Index Fund			South Africa Index Fund

NET INVESTMENT INCOME
Dividends from unaffiliated issuers^a	$	16,520,691		$	65,829,139		$	22,604,814		$	16,149,079
Interest from affiliated issuers (Note 2)		39,168			283,692			111,640			13,762
Securities lending income from affiliated issuers (Note 2)		527,762			781,001			476,310			29,707

Total investment income		17,087,621			66,893,832			23,192,764			16,192,548


EXPENSES
Investment advisory fees (Note 2)		3,429,516			10,048,020			4,983,831			2,092,143

Total expenses		3,429,516			10,048,020			4,983,831			2,092,143

Net investment income		13,658,105			56,845,812			18,208,933			14,100,405


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(21,877,749	)		(42,347,864	)		(19,311,629	)		(10,580,143	)
In-kind redemptions		84,987,312			62,926,031			88,233,497			38,069,734
Foreign currency transactions		(48,419	)		1,776,992			523,127			38,175

Net realized gain		63,061,144			22,355,159			69,444,995			27,527,766

Net change in unrealized appreciation (depreciation) on:
Investments		(118,147,593	)		(14,927,815	)		(166,699,198	)		(82,567,070	)
Translation of assets and liabilities in foreign currencies		3,241			827,871			100,563			(130,834	)

Net change in unrealized appreciation (depreciation)		(118,144,352	)		(14,099,944	)		(166,598,635	)		(82,697,904	)

Net realized and unrealized gain (loss)		(55,083,208	)		8,255,215			(97,153,640	)		(55,170,138	)


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(41,425,103	)	$	65,101,027		$	(78,944,707	)	$	(41,069,733	)

^a	Net of foreign withholding tax of $–, $1,178,285, $– and $–, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS		69

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 29, 2008


	iShares MSCI
	South Korea Index Fund			Taiwan Index Fund

NET INVESTMENT INCOME
Dividends from unaffiliated issuers^a	$	42,512,526		$	17,234,952
Interest from affiliated issuers (Note 2)		136,092			114,166
Securities lending income from affiliated issuers (Note 2)		4,109,161			–

Total investment income		46,757,779			17,349,118


EXPENSES
Investment advisory fees (Note 2)		10,404,525			8,766,458
Foreign taxes (Note 1)		–			127,410

Total expenses		10,404,525			8,893,868

Net investment income		36,353,254			8,455,250


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(48,659,435	)		(70,325,500	)
Foreign currency transactions		27,651			358,992

Net realized loss		(48,631,784	)		(69,966,508	)

Net change in unrealized appreciation (depreciation) on:
Investments		(355,977,827	)		59,507,658
Translation of assets and liabilities in foreign currencies		69,946			113,067

Net change in unrealized appreciation (depreciation)		(355,907,881	)		59,620,725

Net realized and unrealized loss		(404,539,665	)		(10,345,783	)


NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(368,186,411	)	$	(1,890,533	)

^a	Net of foreign withholding tax of $7,762,568 and $182,679, respectively.

See notes to financial statements.


70		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Australia Index Fund						iShares MSCI Brazil Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	29,064,754		$	36,454,764		$	48,731,282		$	68,668,117
Net realized gain		119,438,740			123,854,383			132,242,108			58,944,814
Net change in unrealized appreciation (depreciation)		(146,225,545	)		84,082,950			1,656,152,581			1,249,240,919

Net increase in net assets resulting from operations		2,277,949			244,392,097			1,837,125,971			1,376,853,850


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(81,749,137	)		(35,850,508	)		(71,967,467	)		(59,308,876	)
From net realized gain		–			–			(39,856,665	)		–

Total distributions to shareholders		(81,749,137	)		(35,850,508	)		(111,824,132	)		(59,308,876	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		580,888,568			964,074,872			1,981,555,687			1,012,054,259
Cost of shares redeemed		(486,917,558	)		(394,910,991	)		(619,673,832	)		(363,560,519	)

Net increase in net assets from capital share transactions		93,971,010			569,163,881			1,361,881,855			648,493,740

INCREASE IN NET ASSETS		14,499,822			777,705,470			3,087,183,694			1,966,038,714

NET ASSETS
Beginning of period		1,464,112,476			686,407,006			4,434,333,638			2,468,294,924

End of period	$	1,478,612,298		$	1,464,112,476		$	7,521,517,332		$	4,434,333,638

Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(31,182,276	)	$	21,502,107		$	22,154,375		$	45,390,560


SHARES ISSUED AND REDEEMED
Shares sold		18,400,000			37,000,000			26,100,000			16,700,000
Shares redeemed		(17,200,000	)		(15,800,000	)		(8,150,000	)		(7,850,000	)

Net increase in shares outstanding		1,200,000			21,200,000			17,950,000			8,850,000

See notes to financial statements.


FINANCIAL STATEMENTS		71

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI BRIC Index Fund			iShares MSCI Canada Index Fund
	Period from November 12, 2007^ato February 29, 2008 (Unaudited)			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	12,234		$	12,744,950		$	15,264,817
Net realized gain (loss)		(154,034	)		149,701,151			110,183,308
Net change in unrealized appreciation (depreciation)		(1,869,502	)		(76,949,287	)		94,919,801

Net increase (decrease) in net assets resulting from operations		(2,011,302	)		85,496,814			220,367,926


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		–			(22,859,835	)		(12,092,201	)

Total distributions to shareholders		–			(22,859,835	)		(12,092,201	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		82,443,279			1,036,241,730			285,559,364
Cost of shares redeemed		–			(511,339,208	)		(271,873,681	)

Net increase in net assets from capital share transactions		82,443,279			524,902,522			13,685,683

INCREASE IN NET ASSETS		80,431,977			587,539,501			221,961,408

NET ASSETS
Beginning of period		–			1,323,122,143			1,101,160,735

End of period	$	80,431,977		$	1,910,661,644		$	1,323,122,143

Undistributed net investment income included in net assets at end of period	$	12,234		$	312,212		$	10,427,097


SHARES ISSUED AND REDEEMED
Shares sold		1,500,000			31,700,000			9,900,000
Shares redeemed		–			(16,500,000	)		(10,200,000	)

Net increase (decrease) in shares outstanding		1,500,000			15,200,000			(300,000	)

^a	Commencement of operations.

See notes to financial statements.


72		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Chile Index Fund			iShares MSCI Hong Kong Index Fund
	Period from November 12, 2007^ato February 29, 2008 (Unaudited)			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	67,781		$	14,768,230		$	35,062,644
Net realized gain		5,624			147,537,163			150,676,987
Net change in unrealized appreciation (depreciation)		185,095			(131,158,458	)		128,693,618

Net increase in net assets resulting from operations		258,500			31,146,935			314,433,249


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(17,176	)		(44,264,451	)		(25,623,625	)

Total distributions to shareholders		(17,176	)		(44,264,451	)		(25,623,625	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		43,717,051			1,449,525,477			828,936,976
Cost of shares redeemed		–			(445,072,285	)		(555,149,687	)

Net increase in net assets from capital share transactions		43,717,051			1,004,453,192			273,787,289

INCREASE IN NET ASSETS		43,958,375			991,335,676			562,596,913

NET ASSETS
Beginning of period		–			1,445,308,892			882,711,979

End of period	$	43,958,375		$	2,436,644,568		$	1,445,308,892

Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	50,605		$	(4,291,369	)	$	25,204,852


SHARES ISSUED AND REDEEMED
Shares sold		900,000			69,225,000			51,075,000
Shares redeemed		–			(20,850,000	)		(34,275,000	)

Net increase in shares outstanding		900,000			48,375,000			16,800,000

^a	Commencement of operations.

See notes to financial statements.


FINANCIAL STATEMENTS		73

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Japan Small Cap Index Fund			iShares MSCI Malaysia Index Fund
	Period from December 20, 2007^a to February 29, 2008 (Unaudited)			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	6,073		$	14,982,728		$	24,085,999
Net realized gain (loss)		(161	)		(2,642,888	)		7,677,288
Net change in unrealized appreciation (depreciation)		194,602			130,007,024			151,595,295

Net increase in net assets resulting from operations		200,514			142,346,864			183,358,582


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,160	)		(34,921,988	)		(11,518,123	)

Total distributions to shareholders		(2,160	)		(34,921,988	)		(11,518,123	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		9,393,260			628,668,100			709,128,181
Cost of shares redeemed		–			–			(513,863,061	)

Net increase in net assets from capital share transactions		9,393,260			628,668,100			195,265,120

INCREASE IN NET ASSETS		9,591,614			736,092,976			367,105,579

NET ASSETS
Beginning of period		–			741,439,521			374,333,942

End of period	$	9,591,614		$	1,477,532,497		$	741,439,521

Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	3,913		$	(1,421,107	)	$	18,518,153


SHARES ISSUED AND REDEEMED
Shares sold		200,000			48,375,000			68,475,000
Shares redeemed		–			–			(49,200,000	)

Net increase in shares outstanding		200,000			48,375,000			19,275,000

^a	Commencement of operations.

See notes to financial statements.


74		2008 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
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	13,658,105		$	14,148,585		$	56,845,812		$	98,036,757
Net realized gain		63,061,144			288,704,084			22,355,159			107,970,955
Net change in unrealized appreciation (depreciation)		(118,144,352	)		6,648,571			(14,099,944	)		559,682,124

Net increase (decrease) in net assets resulting from operations		(41,425,103	)		309,501,240			65,101,027			765,689,836


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(22,275,936	)		(11,694,155	)		(187,759,754	)		(101,866,512	)
From net realized gain		–			–			(4,628,288	)		–

Total distributions to shareholders		(22,275,936	)		(11,694,155	)		(192,388,042	)		(101,866,512	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,068,528,145			1,841,107,484			408,345,004			979,796,715
Cost of shares redeemed		(937,931,246	)		(1,520,212,071	)		(146,283,659	)		(202,255,658	)

Net increase in net assets from capital share transactions		130,596,899			320,895,413			262,061,345			777,541,057

INCREASE IN NET ASSETS		66,895,860			618,702,498			134,774,330			1,441,364,381

NET ASSETS
Beginning of period		1,382,809,650			764,107,152			3,536,295,303			2,094,930,922

End of period	$	1,449,705,510		$	1,382,809,650		$	3,671,069,633		$	3,536,295,303

Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(305,444	)	$	8,312,387		$	(87,474,756	)	$	43,439,186


SHARES ISSUED AND REDEEMED
Shares sold		18,800,000			34,500,000			2,400,000			7,300,000
Shares redeemed		(16,500,000	)		(29,300,000	)		(1,000,000	)		(1,600,000	)

Net increase in shares outstanding		2,300,000			5,200,000			1,400,000			5,700,000

See notes to financial statements.


FINANCIAL STATEMENTS		75

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Singapore Index Fund						iShares MSCI South Africa Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	18,208,933		$	52,154,899		$	14,100,405		$	9,702,180
Net realized gain		69,444,995			205,458,060			27,527,766			9,358,147
Net change in unrealized appreciation (depreciation)		(166,598,635	)		154,022,242			(82,697,904	)		76,042,874

Net increase (decrease) in net assets resulting from operations		(78,944,707	)		411,635,201			(41,069,733	)		95,103,201


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(77,127,096	)		(29,331,787	)		(13,744,433	)		(9,144,852	)

Total distributions to shareholders		(77,127,096	)		(29,331,787	)		(13,744,433	)		(9,144,852	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		502,868,505			1,229,979,919			380,469,704			151,649,200
Cost of shares redeemed		(310,710,709	)		(517,692,912	)		(210,619,067	)		(68,565,161	)

Net increase in net assets from capital share transactions		192,157,796			712,287,007			169,850,637			83,084,039

INCREASE IN NET ASSETS		36,085,993			1,094,590,421			115,036,471			169,042,388

NET ASSETS
Beginning of period		1,669,210,184			574,619,763			466,940,256			297,897,868

End of period	$	1,705,296,177		$	1,669,210,184		$	581,976,727		$	466,940,256

Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(15,168,551	)	$	43,749,612		$	7,148,476		$	6,792,504


SHARES ISSUED AND REDEEMED
Shares sold		34,800,000			105,300,000			2,700,000			1,300,000
Shares redeemed		(24,600,000	)		(42,700,000	)		(1,650,000	)		(600,000	)

Net increase in shares outstanding		10,200,000			62,600,000			1,050,000			700,000

See notes to financial statements.


76		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI South Korea Index Fund						iShares MSCI Taiwan Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007			Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	36,353,254		$	17,668,348		$	8,455,250		$	58,686,661
Net realized loss		(48,631,784	)		(2,170,342	)		(69,966,508	)		(36,061,860	)
Net change in unrealized appreciation (depreciation)		(355,907,881	)		592,662,779			59,620,725			510,559,095

Net increase (decrease) in net assets resulting from operations		(368,186,411	)		608,160,785			(1,890,533	)		533,183,896


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(20,758,106	)		(10,954,387	)		(68,184,922	)		(44,460,389	)

Total distributions to shareholders		(20,758,106	)		(10,954,387	)		(68,184,922	)		(44,460,389	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,349,178,525			471,567,107			589,795,286			890,014,349
Cost of shares redeemed		(66,233,609	)		(260,654,404	)		(306,328,876	)		(502,724,067	)

Net increase in net assets from capital share transactions		1,282,944,916			210,912,703			283,466,410			387,290,282

INCREASE IN NET ASSETS		894,000,399			808,119,101			213,390,955			876,013,789

NET ASSETS
Beginning of period		2,429,452,789			1,621,333,688			2,769,764,354			1,893,750,565

End of period	$	3,323,453,188		$	2,429,452,789		$	2,983,155,309		$	2,769,764,354

Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	33,154,480		$	17,559,332		$	(1,287,075	)	$	58,442,597


SHARES ISSUED AND REDEEMED
Shares sold		19,400,000			8,200,000			38,400,000			58,100,000
Shares redeemed		(1,100,000	)		(5,250,000	)		(20,400,000	)		(35,550,000	)

Net increase in shares outstanding		18,300,000			2,950,000			18,000,000			22,550,000

See notes to financial statements.


FINANCIAL STATEMENTS		77

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Australia Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003

Net asset value, beginning of period	$	27.62		$	21.59		$	18.28		$	13.56		$	11.22		$	9.36


Income from investment operations:
Net investment income^a		0.47			0.89			0.75			0.70			0.45			0.32
Net realized and unrealized gain^b		0.47			6.24			3.23			4.60			2.32			1.81

Total from investment operations		0.94			7.13			3.98			5.30			2.77			2.13


Less distributions from:
Net investment income		(1.28	)		(1.10	)		(0.67	)		(0.58	)		(0.43	)		(0.27	)

Total distributions		(1.28	)		(1.10	)		(0.67	)		(0.58	)		(0.43	)		(0.27	)


Net asset value, end of period	$	27.28		$	27.62		$	21.59		$	18.28		$	13.56		$	11.22


Total return		3.36	%^c		33.97	%		22.35	%		39.58	%		24.95	%		23.33	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,478,612		$	1,464,112		$	686,407		$	369,355		$	178,998		$	87,541
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.79	%		0.84	%
Ratio of net investment income to average net assets^d		3.18	%		3.46	%		3.75	%		4.13	%		3.37	%		3.21	%
Portfolio turnover rate^e		5	%		10	%		7	%		17	%		9	%		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.


78		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Brazil Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003


Net asset value, beginning of period	$	61.59		$	39.09		$	28.18		$	16.96		$	12.19		$	8.30


Income from investment operations:
Net investment income^a		0.55			1.09			1.00			0.89			0.55			0.32
Net realized and unrealized gain^b		22.68			22.35			10.49			10.79			4.49			3.68

Total from investment operations		23.23			23.44			11.49			11.68			5.04			4.00


Less distributions from:
Net investment income		(0.77	)		(0.94	)		(0.58	)		(0.46	)		(0.27	)		(0.11	)
Net realized gain		(0.43	)		–			–			–			–			–

Total distributions		(1.20	)		(0.94	)		(0.58	)		(0.46	)		(0.27	)		(0.11	)

Net asset value, end of period	$	83.62		$	61.59		$	39.09		$	28.18		$	16.96		$	12.19


Total return		37.80	%^c		60.82	%		41.13	%		69.72	%		41.42	%		48.85	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	7,521,517		$	4,434,334		$	2,468,295		$	552,285		$	209,504		$	103,035
Ratio of expenses to average net assets^d		0.64	%		0.69	%		0.70	%		0.74	%		0.96	%		0.99	%
Ratio of expenses to average net assets exclusive of foreign taxes^d		0.63	%		0.68	%		n/a			n/a			n/a			n/a
Ratio of net investment income to average net assets^d		1.44	%		2.17	%		2.65	%		3.94	%		3.59	%		3.59	%
Portfolio turnover rate^e		20	%		22	%		15	%		48	%		106	%		85	%

^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.

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 29, 2008 and the years ended August 31, 2007, August 31, 2006 and August 31, 2005 would have been 11%, 6%, 13% and 9%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		79

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout the period)


	iShares MSCI BRIC Index Fund
	Period from Nov. 12, 2007^ato Feb. 29, 2008 (Unaudited)

Net asset value, beginning of period	$ 56.50


Income from investment operations:
Net investment income^b	0.02
Net realized and unrealized loss^c	(2.90	)

Total from investment operations	(2.88	)

Net asset value, end of period	$ 53.62


Total return	(5.10	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$ 80,432
Ratio of expenses to average net assets^e	0.72	%
Ratio of net investment income to average net assets^e	0.12	%
Portfolio turnover rate^f	5	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

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

^d	Not annualized.

^e	Annualized for periods of less than one year.

Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the period ended February 29, 2008 remained the same. See Note 4.

See notes to financial statements.


80		2008 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. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003

Net asset value, beginning of period	$	29.87		$	24.69		$	20.30		$	14.33		$	12.25		$	9.49


Income from investment operations:
Net investment income^a		0.22			0.35			0.25			0.17			0.11			0.10
Net realized and unrealized gain^b		2.41			5.11			4.29			6.00			2.17			2.69

Total from investment operations		2.63			5.46			4.54			6.17			2.28			2.79


Less distributions from:
Net investment income		(0.39	)		(0.28	)		(0.15	)		(0.20	)		(0.20	)		(0.03	)

Total distributions		(0.39	)		(0.28	)		(0.15	)		(0.20	)		(0.20	)		(0.03	)

Net asset value, end of period	$	32.11		$	29.87		$	24.69		$	20.30		$	14.33		$	12.25


Total return		8.81	%^c		22.33	%		22.46	%		43.35	%		18.70	%		29.47	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,910,662		$	1,323,122		$	1,101,161		$	420,301		$	325,298		$	503,407
Ratio of expenses to average net assets^d		0.51	%		0.52	%		0.54	%		0.57	%		0.70	%^e		0.84	%
Ratio of expenses to average net assets exclusive of foreign taxes^d		n/a			0.52	%		n/a			n/a			n/a			n/a
Ratio of net investment income to average net assets^d		1.39	%		1.32	%		1.09	%		1.00	%		0.81	%		0.98	%
Portfolio turnover rate^f		7	%		8	%		20	%		9	%		10	%		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	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		81

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout the period)


	iShares MSCI Chile Index Fund
	Period from Nov. 12, 2007^a to Feb. 29, 2008 (Unaudited)

Net asset value, beginning of period	$	48.84


Income from investment operations:
Net investment income^b		0.14
Net realized and unrealized loss^c		(0.09	)

Total from investment operations		0.05


Less distributions from:
Net investment income		(0.05	)

Total distributions		(0.05	)

Net asset value, end of period	$	48.84


Total return		0.10	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	43,958
Ratio of expenses to average net assets^e		0.63	%
Ratio of net investment income to average net assets^e		0.99	%
Portfolio turnover rate^f		1	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

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

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	Portfolio turnover rate includes 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 period ended February 29, 2008 remained the same. See Note 4.

See notes to financial statements.


82		2008 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. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003

Net asset value, beginning of period	$	18.30		$	14.20		$	13.01		$	10.91		$	9.03		$	7.99


Income from investment operations:
Net investment income^a		0.13			0.47			0.38			0.33			0.28			0.23
Net realized and unrealized gain^b		1.08			3.94			1.17			2.04			1.75			0.95

Total from investment operations		1.21			4.41			1.55			2.37			2.03			1.18


Less distributions from:
Net investment income		(0.38	)		(0.31	)		(0.36	)		(0.27	)		(0.15	)		(0.14	)

Total distributions		(0.38	)		(0.31	)		(0.36	)		(0.27	)		(0.15	)		(0.14	)

Net asset value, end of period	$	19.13		$	18.30		$	14.20		$	13.01		$	10.91		$	9.03


Total return		6.33	%^c		31.44	%		12.20	%		21.96	%		22.69	%		15.14	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,436,645		$	1,445,309		$	882,712		$	637,985		$	449,923		$	250,627
Ratio of expenses to average net assets^d		0.51	%		0.52	%		0.54	%		0.57	%		0.80	%		0.84	%
Ratio of net investment income to average net assets^d		1.25	%		2.92	%		2.87	%		2.75	%		2.78	%		3.06	%
Portfolio turnover rate^e		7	%		9	%		10	%		6	%		5	%		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		83

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout the period)


	iShares MSCI Japan Small Cap Index Fund
	Period from Dec. 20, 2007^a to Feb. 29, 2008 (Unaudited)

Net asset value, beginning of period	$	48.85


Income from investment operations:
Net investment income^b		0.05
Net realized and unrealized loss^c		(0.92	)

Total from investment operations		(0.87	)


Less distributions from:
Net investment income		(0.02	)

Total distributions		(0.02	)

Net asset value, end of period	$	47.96


Total return		(1.78	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	9,592
Ratio of expenses to average net assets^e		0.51	%
Ratio of net investment income to average net assets^e		0.60	%
Portfolio turnover rate^f		0	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

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

^d	Not annualized.

^e	Annualized for periods of less than one year.

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

See notes to financial statements.


84		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Malaysia Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003

Net asset value, beginning of period	$	10.97		$	7.75		$	7.19		$	6.54		$	5.99		$	5.68


Income from investment operations:
Net investment income^a		0.18			0.34			0.26			0.20			0.13			0.10
Net realized and unrealized gain^b		2.00			3.08			0.59			0.61			0.52			0.30

Total from investment operations		2.18			3.42			0.85			0.81			0.65			0.40


Less distributions from:
Net investment income		(0.41	)		(0.20	)		(0.29	)		(0.16	)		(0.10	)		(0.09	)

Total distributions		(0.41	)		(0.20	)		(0.29	)		(0.16	)		(0.10	)		(0.09	)

Net asset value, end of period	$	12.74		$	10.97		$	7.75		$	7.19		$	6.54		$	5.99


Total return		20.02	%^c		44.64	%		12.35	%		12.39	%		11.01	%		7.39	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,477,532		$	741,440		$	374,334		$	387,575		$	224,218		$	99,730
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.79	%		0.84	%
Ratio of net investment income to average net assets^d		2.86	%		3.21	%		3.46	%		2.85	%		1.97	%		1.91	%
Portfolio turnover rate^e		9	%		87	%		60	%		15	%		39	%		35	%

^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.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		85

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Mexico Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003

Net asset value, beginning of period	$	58.35		$	41.30		$	29.04		$	19.35		$	15.04		$	13.65


Income from investment operations:
Net investment income^a		0.58			0.64			0.76			0.42			0.26			0.19
Net realized and unrealized gain (loss)^b		(2.12	)		16.87			11.98			9.55			4.26			1.72

Total from investment operations		(1.54	)		17.51			12.74			9.97			4.52			1.91


Less distributions from:
Net investment income		(1.05	)		(0.46	)		(0.48	)		(0.28	)		(0.21	)		(0.52	)

Total distributions		(1.05	)		(0.46	)		(0.48	)		(0.28	)		(0.21	)		(0.52	)

Net asset value, end of period	$	55.76		$	58.35		$	41.30		$	29.04		$	19.35		$	15.04


Total return		(2.64	)%^c		42.58	%		44.11	%		51.77	%		30.28	%		14.60	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,449,706		$	1,382,810		$	764,107		$	255,557		$	129,623		$	60,155
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.78	%		0.84	%
Ratio of net investment income to average net assets^d		2.03	%		1.19	%		2.06	%		1.70	%		1.40	%		1.43	%
Portfolio turnover rate^e		6	%		14	%		12	%		9	%		12	%		13	%

^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		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Pacific ex-Japan Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003

Net asset value, beginning of period	$	144.93		$	112.03		$	97.57		$	75.73		$	62.03		$	52.51


Income from investment operations:
Net investment income^a		2.20			4.55			3.83			3.70			2.68			1.87
Net realized and unrealized gain^b		2.45			33.55			14.33			21.15			12.53			8.53

Total from investment operations		4.65			38.10			18.16			24.85			15.21			10.40


Less distributions from:
Net investment income		(7.11	)		(5.20	)		(3.70	)		(3.01	)		(1.51	)		(0.88	)
Net realized gain		(0.18	)		–			–			–			–			–

Total distributions		(7.29	)		(5.20	)		(3.70	)		(3.01	)		(1.51	)		(0.88	)

Net asset value, end of period	$	142.29		$	144.93		$	112.03		$	97.57		$	75.73		$	62.03


Total return		3.03	%^c		34.86	%		19.17	%		33.27	%		24.74	%		20.15	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,671,070		$	3,536,295		$	2,094,931		$	1,522,107		$	651,250		$	223,298
Ratio of expenses to average net assets^d		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assets^d		2.83	%		3.43	%		3.67	%		4.09	%		3.68	%		3.47	%
Portfolio turnover rate^e		8	%		11	%		8	%		16	%		8	%		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		87

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Singapore Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003

Net asset value, beginning of period	$	13.28		$	9.11		$	7.77		$	6.52		$	5.38		$	5.01


Income from investment operations:
Net investment income^a		0.13			0.47			0.40			0.38			0.22			0.12
Net realized and unrealized gain (loss)^b		(0.35	)		4.01			1.23			1.15			1.04			0.33

Total from investment operations		(0.22	)		4.48			1.63			1.53			1.26			0.45


Less distributions from:
Net investment income		(0.51	)		(0.31	)		(0.29	)		(0.28	)		(0.12	)		(0.08	)

Total distributions		(0.51	)		(0.31	)		(0.29	)		(0.28	)		(0.12	)		(0.08	)

Net asset value, end of period	$	12.55		$	13.28		$	9.11		$	7.77		$	6.52		$	5.38


Total return		(1.82	)%^c		49.92	%		21.61	%		24.06	%		23.47	%		9.30	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,705,296		$	1,669,210		$	574,620		$	341,137		$	170,047		$	108,202
Ratio of expenses to average net assets^d		0.51	%		0.51	%		0.54	%		0.57	%		0.79	%		0.84	%
Ratio of net investment income to average net assets^d		1.86	%		3.80	%		4.74	%		5.19	%		3.50	%		2.67	%
Portfolio turnover rate^e		8	%		8	%		6	%		8	%		9	%		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.


88		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI South Africa Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Period from Feb. 3, 2003^ato Aug. 31, 2003

Net asset value, beginning of period	$	124.52		$	97.67		$	82.99		$	59.92		$	46.81		$	38.72


Income from investment operations:
Net investment income^b		2.81			2.99			2.87			1.92			1.23			0.89
Net realized and unrealized gain (loss)^c		(3.46	)		26.37			13.78			22.36			13.24			7.20

Total from investment operations		(0.65	)		29.36			16.65			24.28			14.47			8.09


Less distributions from:
Net investment income		(2.62	)		(2.51	)		(1.97	)		(1.21	)		(1.36	)		–

Total distributions		(2.62	)		(2.51	)		(1.97	)		(1.21	)		(1.36	)		–

Net asset value, end of period	$	121.25		$	124.52		$	97.67		$	82.99		$	59.92		$	46.81


Total return		(0.59	)%^d		30.34	%		20.06	%		40.62	%		31.30	%		20.89	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	581,977		$	466,940		$	297,898		$	153,530		$	92,882		$	81,914
Ratio of expenses to average net assets^e		0.63	%		0.68	%		0.70	%		0.74	%		0.95	%		0.99	%
Ratio of net investment income to average net assets^e		4.27	%		2.58	%		2.79	%		2.62	%		2.23	%		3.86	%
Portfolio turnover rate^f		12	%		8	%		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.


FINANCIAL HIGHLIGHTS		89

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI South Korea Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003

Net asset value, beginning of period	$	63.60		$	46.00		$	34.75		$	24.17		$	23.06		$	21.17


Income from investment operations:
Net investment income^a		0.71			0.51			0.31			0.46			0.22			0.19
Net realized and unrealized gain (loss)^b		(5.12	)		17.42			11.20			10.22			1.13			1.70

Total from investment operations		(4.41	)		17.93			11.51			10.68			1.35			1.89


Less distributions from:
Net investment income		(0.37	)		(0.33	)		(0.26	)		(0.10	)		(0.24	)		–

Total distributions		(0.37	)		(0.33	)		(0.26	)		(0.10	)		(0.24	)		–

Net asset value, end of period	$	58.82		$	63.60		$	46.00		$	34.75		$	24.17		$	23.06


Total return		(7.00	)%^c		39.18	%		33.16	%		44.29	%		5.83	%		8.93	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,323,453		$	2,429,453		$	1,621,334		$	698,455		$	315,464		$	154,486
Ratio of expenses to average net assets^d		0.63	%		0.68	%		0.70	%		0.74	%		0.94	%		0.99	%
Ratio of expenses to average net assets exclusive of foreign taxes^d		n/a			0.68	%		0.70	%		0.74	%		0.94	%		0.99	%
Ratio of net investment income to average net assets^d		2.21	%		0.96	%		0.71	%		1.49	%		0.87	%		0.98	%
Portfolio turnover rate^e		11	%		20	%		47	%		30	%		29	%		39	%

^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.

See notes to financial statements.


90		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Taiwan Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003

Net asset value, beginning of period	$	15.99		$	12.57		$	11.57		$	10.66		$	10.79		$	8.82


Income from investment operations:
Net investment income^a		0.05			0.38			0.34			0.27			0.14			0.04
Net realized and unrealized gain (loss)^b		(0.05	)		3.34			0.80			0.72			(0.25	)		1.93

Total from investment operations		–			3.72			1.14			0.99			(0.11	)		1.97


Less distributions from:
Net investment income		(0.39	)		(0.30	)		(0.14	)		(0.08	)		(0.02	)		–

Total distributions		(0.39	)		(0.30	)		(0.14	)		(0.08	)		(0.02	)		–

Net asset value, end of period	$	15.60		$	15.99		$	12.57		$	11.57		$	10.66		$	10.79


Total return		0.17	%^c		29.91	%		9.84	%		9.28	%		(1.10	)%		22.45	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,983,155		$	2,769,764		$	1,893,751		$	752,640		$	390,228		$	234,727
Ratio of expenses to average net assets^d		0.64	%		0.77	%		0.85	%		1.03	%		1.19	%^e		1.31	%
Ratio of expenses to average net assets exclusive of foreign taxes^d		0.63	%		0.68	%		0.70	%		0.74	%		0.92	%		0.99	%
Ratio of net investment income to average net assets^d		0.61	%		2.61	%		2.74	%		2.34	%		1.23	%		0.43	%
Portfolio turnover rate^f		17	%		35	%		29	%		20	%		19	%		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	Ratio of expenses to average net assets prior to voluntary reimbursed distribution fees for the year ended August 31, 2004 was 1.22%.

See notes to financial statements.


FINANCIAL HIGHLIGHTS		91

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

These financial statements relate only to the iShares MSCI Australia, iShares MSCI Brazil, iShares MSCI BRIC, iShares MSCI Canada, iShares MSCI Chile, iShares MSCI Hong Kong, iShares MSCI Japan Small Cap, 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 iShares MSCI BRIC Index Fund and iShares MSCI Chile Index Fund commenced operations on November 12, 2007 and iShares MSCI Japan Small Cap Index Fund commenced operations on December 20, 2007.

1. SIGNIFICANT ACCOUNTING POLICIES

SECURITY VALUATION


92		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES


NOTES TO FINANCIAL STATEMENTS		93

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

DISTRIBUTIONS TO SHAREHOLDERS

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

FEDERAL INCOME TAXES

The Funds had tax basis net capital loss carryforwards as of August 31, 2007, 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		Expiring 2015		Total
Australia	$	71,019	$	1,971,994	$	3,625,203	$	650,082	$	596,240	$	384,424	$	–	$	7,066	$	7,306,028
Canada		–		–		–		–		–		2,931,648		–		5,363,291		8,294,939
Hong Kong		–		–		4,971,970		2,870,602		2,330,414		468,716		425,440		2,899,247		13,966,389
Malaysia		–		–		9,819,029		2,898,105		775,477		6,820,474		1,543,708		3,424,287		25,281,080
Mexico		–		–		47,326		2,329,290		3,136,171		12,912		632,766		–		6,158,465
Singapore		–		–		1,934,119		4,428,316		4,256,421		2,558,348		–		–		13,177,204
South Africa		–		–		–		–		527,613		–		260,738		1,607,845		2,396,196
South Korea		–		556,540		666,642		504,041		3,363,449		11,590,303		3,172,573		38,097,223		57,950,771
Taiwan		–		–		12,532,361		8,689,663		9,129,874		12,022,719		14,435,986		64,999,586		121,810,189

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.


94		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

As of February 29, 2008, 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 (Depreciation)
Australia	$	1,542,736,891	$	117,619,524	$	(130,474,405	)	$	(12,854,881	)
Brazil		4,132,615,078		3,455,669,128		(75,645,176	)		3,380,023,952
BRIC		83,643,091		2,025,359		(3,900,929	)		(1,875,570	)
Canada		1,741,806,957		240,183,692		(74,559,495	)		165,624,197
Chile		43,773,645		1,116,302		(936,632	)		179,670
Hong Kong		2,669,355,414		168,685,754		(81,670,334	)		87,015,420
Japan Small Cap		9,436,708		423,449		(229,507	)		193,942
Malaysia		1,113,579,560		364,843,317		(3,345,875	)		361,497,442
Mexico		1,620,180,341		11,794,358		(109,685,876	)		(97,891,518	)
Pacific ex-Japan		2,965,247,926		972,987,239		(59,264,603	)		913,722,636
Singapore		1,790,617,935		99,339,363		(64,156,996	)		35,182,367
South Africa		638,623,872		36,985,067		(96,683,647	)		(59,698,580	)
South Korea		3,339,557,013		762,179,411		(67,547,121	)		694,632,290
Taiwan		2,307,232,385		757,034,979		(86,781,883	)		670,253,096

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

For its investment advisory services to the iShares MSCI Australia, iShares MSCI Canada, iShares MSCI Hong Kong, iShares MSCI Japan Small Cap, iShares MSCI Malaysia, iShares MSCI Mexico and iShares MSCI Singapore Index Funds, BGFA is entitled to an annual


NOTES TO FINANCIAL STATEMENTS		95

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of these Funds and other iShares Funds in the same advisory fee category, 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 Chile, 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 five 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, up to and including $8 billion
0.57		Over $8 billion

For its investment advisory services to the iShares MSCI BRIC Index Fund, BGFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and another iShares Fund in the same advisory fee category, as follows:


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

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.


96		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.


iShares MSCI Index Fund	Securities Lending Agent Fees
Australia	$	290,242
Brazil		1,904
BRIC		2,523
Hong Kong		934,347
Japan Small Cap		75


iShares MSCI Index Fund	Securities Lending Agent Fees
Mexico	$	527,762
Pacific ex-Japan		781,001
Singapore		476,310
South Africa		29,707
South Korea		4,109,161

As of February 29, 2008, certain directors and officers of the Company are also officers of BGI and/or BGFA.


NOTES TO FINANCIAL STATEMENTS		97

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 29, 2008, were as follows:


iShares MSCI Index Fund	Purchases		Sales
Australia	$	87,650,743	$	134,579,230
Brazil		2,673,961,160		1,364,173,816
BRIC		26,805,834		1,999,631
Canada		125,752,472		122,388,075
Chile		43,981,676		265,538
Hong Kong		168,724,465		173,479,840
Japan Small Cap		–		4,418
Malaysia		701,014,125		90,444,787
Mexico		86,190,295		95,091,047
Pacific ex-Japan		304,011,251		369,982,239
Singapore		149,444,017		173,027,147
South Africa		76,417,424		82,089,635
South Korea		1,600,173,452		343,505,946
Taiwan		735,242,697		492,807,170

In-kind transactions (see Note 4) for the six months ended February 29, 2008, were as follows:


iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Australia	$	576,118,243	$	481,419,870
BRIC		57,508,794		–
Canada		1,029,675,538		505,988,558
Hong Kong		1,419,333,645		437,983,318
Japan Small Cap		9,381,339		–
Mexico		1,067,023,175		935,745,270
Pacific ex-Japan		335,075,114		141,586,141
Singapore		477,560,886		299,051,284
South Africa		379,874,985		210,355,397

4. CAPITAL SHARE TRANSACTIONS

The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes a substantial replication, or a portfolio sampling representation, of the corresponding MSCI Index and an amount of cash (except for the iShares MSCI Brazil, iShares MSCI BRIC, iShares MSCI Chile, iShares MSCI Malaysia, iShares MSCI


98		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

South Korea and iShares MSCI Taiwan Index Funds which are offered in Creation Units solely or partially for cash in U.S. dollars). Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to State Street, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, 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

6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENT


NOTES TO FINANCIAL STATEMENTS		99

Notes:


100		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds

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 S&P North American Natural Resources Sector (IGE)

iShares S&P North American Technology- Multimedia Networking (IGN)

iShares S&P North American Technology- Semiconductors (IGW)

iShares S&P North American Technology-Software (IGV)

iShares S&P North American Technology Sector (IGM)

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. (IYY)

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 FTSE NAREIT Industrial/Office (FIO)

iShares FTSE NAREIT Mortgage REITs (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential (REZ)

iShares FTSE NAREIT Retail (RTL)

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 Infrastructure (IGF)

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 Chile (ECH)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Israel Capped Investable Market (EIS)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Japan Small Cap (SCJ)

iShares 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 Thailand Investable Market (THD)

iShares MSCI Turkey Investable Market (TUR)

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 iBoxx $ High Yield Corporate (HYG)

iShares Lehman Government/Credit (GBF)

iShares Lehman Intermediate Government/Credit (GVI)

iShares Lehman MBS (MBB)

iShares S&P National Municipal (MUB)

iShares S&P California Municipal (CMF)

iShares S&P New York Municipal (NYF)

iShares JPMorgan USD Emerging Markets (EMB)

iShares Specialty Index Funds

iShares KLD 400 Social (DSI)

iShares KLD Select Social^SM(KLD)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones EPAC Select Dividend (IDV)

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

iShares International Index Funds

iShares FTSE Developed Small Cap ex-North America (IFSM)

iShares FTSE EPRA/NAREIT Global Real Estate ex-U.S. (IFGL)

iShares FTSE EPRA/NAREIT North America (IFNA)

iShares FTSE EPRA/NAREIT Europe (IFEU)

iShares FTSE EPRA/NAREIT Asia (IFAS)

iShares MSCI ACWI (ACWI)

iShares MSCI ACWI ex US (ACWX)

iShares MSCI BRIC (BKF)

iShares MSCI EAFE (EFA)

iShares MSCI EAFE Growth (EFG)

iShares MSCI EAFE Value (EFV)

iShares MSCI EAFE Small Cap (SCZ)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI Kokusai (TOK)

iShares MSCI Pacific ex-Japan (EPP)

iShares S&P Asia 50 (AIA)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares S&P World ex-U.S. Property (WPS)


iSHARES FAMILY OF FUNDS		101

The iShares^® Family of Funds (Continued)

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 Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA^®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx^®, J.P. Morgan Securities Inc., KLD Research & Analytics, Inc., MSCI Inc., Morningstar Inc., The NASDAQ Stock Market, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company, or standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 Index, FTSE NAREIT Residential Index, FTSE NAREIT Retail Index, FTSE NAREIT Mortgage REITs Index or FTSE NAREIT Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. “NAREIT^®” is a trademark of NAREIT; “EPRA^®” is a trademark of EPRA.

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

This advertising section does not constitute part of the 2008 Semi-Annual Report.

6712-iS-0408


102		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

LOGO

Table of Contents


Fund Performance Overview		1
Shareholder Expenses		2
Schedule of Investments		3
Financial Statements		10
Financial Highlights		13
Notes to Financial Statements		14
iShares Family of Funds		21

Fund Performance Overview

iSHARES^® MSCI JAPAN INDEX FUND

Performance as of February 29, 2008

The iShares MSCI Japan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Japanese market, as measured by the MSCI Japan Index ^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund declined 7.84%, while the Index declined 7.67%.


Average Annual Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(12.51)%	(13.50)%	(12.28)%	14.24%	13.60%	14.90%	2.37%	1.94%	3.13%

Cumulative Total Returns

Year Ended 2/29/08			Five Years Ended 2/29/08			Ten Years Ended 2/29/08

NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(12.51)%	(13.50)%	(12.28)%	94.54%	89.20%	100.23%	26.42%	21.19%	36.05%


PORTFOLIO ALLOCATION As of 2/29/08
Sector	Percentage of Net Assets
Consumer Cyclical	27.14	%

Industrial	22.08

Financial	17.42

Consumer Non-Cyclical	10.23

Basic Materials	8.31

Technology	4.75

Utilities	4.46

Communications	4.35

Energy	1.13

Short-Term and Other Net Assets	0.13


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
Toyota Motor Corp.	5.67	%

Mitsubishi UFJ Financial Group Inc.	2.95

Nintendo Co. Ltd.	2.00

Honda Motor Co. Ltd.	1.87

Canon Inc.	1.86

Sumitomo Mitsui Financial Group Inc.	1.83

Sony Corp.	1.81

Takeda Pharmaceutical Co. Ltd.	1.75

Matsushita Electric Industrial Co. Ltd.	1.67

Mitsubishi Corp.	1.59


TOTAL	23.00	%


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, 2007 to February 29, 2008.

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 (9/1/07)	Ending Account Value (2/29/08)	Annualized Expense Ratio		Expenses Paid During Period^a (9/1/07 to 2/29/08)
Actual	$1,000.00	$ 921.60	0.51	%	$2.44
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.51		2.56

^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 (182 days) and divided by the number of days in the year (366 days).


2		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI JAPAN INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 99.87%

ADVERTISING – 0.25%
Asatsu-DK Inc.	106,000	$	3,441,525
Dentsu Inc.	5,300		12,371,164
Hakuhodo DY Holdings Inc.	74,200		4,269,324

			20,082,013

AGRICULTURE – 0.86%
Japan Tobacco Inc.	13,780		70,286,537

			70,286,537

AIRLINES – 0.17%
All Nippon Airways Co. Ltd.^a	2,120,000		8,858,364
Japan Airlines Corp.^a,b	2,120,000		5,274,291

			14,132,655

APPAREL – 0.26%
ASICS Corp.	461,000		5,486,566
Gunze Ltd.	1,060,000		4,968,830
Onward Holdings Co. Ltd.	1,092,000		10,709,687

			21,165,083

AUTO MANUFACTURERS – 8.77%
Hino Motors Ltd.	1,060,000		7,636,520
Honda Motor Co. Ltd.	4,876,000		152,689,688
Isuzu Motors Ltd.	2,120,000		9,958,023
Mazda Motor Corp.	1,060,000		4,429,182
Mitsubishi Motors Corp.^a,b	4,240,000		6,923,779
Nissan Motor Co. Ltd.	7,102,300		65,766,459
Suzuki Motor Corp.	212,000		5,824,120
Toyota Motor Corp.	8,374,500		462,546,227

			715,773,998

AUTO PARTS & EQUIPMENT – 2.22%
Aisin Seiki Co. Ltd.	636,200		25,789,002
Bridgestone Corp.	1,908,000		31,981,749
Denso Corp.	1,484,000		56,306,613
JTEKT Corp.	318,000		5,748,773
NGK Spark Plug Co. Ltd.	629,000		9,969,262
NHK Spring Co. Ltd.	406,000		3,217,425
NOK Corp.	318,000		6,704,865
Sumitomo Rubber Industries Inc.	318,000		2,489,506
Tokai Rika Co. Ltd.	106,000		3,095,336
Toyoda Gosei Co. Ltd.	212,000		7,799,433
Toyota Boshoku Corp.	106,000		3,716,440
Toyota Industries Corp.	636,000		24,497,956

			181,316,360


Security	Shares	Value
BANKS – 9.29%
Aozora Bank Ltd.	86,000	$	232,957
Bank of Kyoto Ltd. (The)	1,060,000		12,442,438
Bank of Yokohama Ltd. (The)	4,240,000		28,020,941
Chiba Bank Ltd. (The)	2,120,000		13,745,738
Chuo Mitsui Trust Holdings Inc.	2,125,000		14,941,646
Fukuoka Financial Group Inc.	2,126,000		11,068,556
Gunma Bank Ltd.	1,060,000		7,290,332
Hachijuni Bank Ltd. (The)	1,060,000		7,056,145
Hiroshima Bank Ltd. (The)	1,060,000		5,294,654
Hokuhoku Financial
Group Inc.	4,245,000		12,232,842
Joyo Bank Ltd. (The)	2,120,000		10,792,949
Mitsubishi UFJ Financial
Group Inc.	26,500,080		240,805,684
Mizuho Financial Group Inc.	29,796		127,650,123
Mizuho Trust & Banking Co. Ltd.	726,000		1,185,534
Nishi-Nippon City Bank Ltd. (The)	2,120,000		5,620,479
Resona Holdings Inc.^a	16,960		28,183,853
Sapporo Hokuyo Holdings Inc.	1,060		8,379,809
77 Bank Ltd. (The)	1,060,000		6,312,858
Shinsei Bank Ltd.	1,705,000		6,993,276
Shizuoka Bank Ltd. (The)	2,120,000		22,685,558
Sumitomo Mitsui Financial
Group Inc.	20,140		149,349,983
Sumitomo Trust and Banking Co. Ltd. (The)	4,240,000		29,242,784
Suruga Bank Ltd.	776,000		8,751,011

			758,280,150

BEVERAGES – 0.89%
Asahi Breweries Ltd.	1,060,000		19,895,682
Coca-Cola West Japan Co. Ltd.	212,000		4,632,823
ITO EN Ltd.^a	212,000		4,357,908
Kirin Holdings Co. Ltd.	2,120,000		35,942,558
Sapporo Holdings Ltd.^a	1,060,000		8,104,894

			72,933,865

BUILDING MATERIALS – 1.42%
Asahi Glass Co. Ltd.	3,180,000		36,746,938
Daikin Industries Ltd.	749,000		34,390,471
JS Group Corp.	848,000		14,491,062
Matsushita Electric Works Ltd.	1,060,000		10,721,675
Nippon Sheet Glass Co. Ltd.	2,120,000		10,182,028


SCHEDULE OF INVESTMENTS		3

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 29, 2008


Security	Shares	Value
Sumitomo Osaka
Cement Co. Ltd.	1,060,000	$	2,199,318
Taiheiyo Cement Corp.	3,180,000		7,544,882

			116,276,374

CHEMICALS – 3.70%
Asahi Kasei Corp.	3,180,000		17,747,275
Daicel Chemical Industries Ltd.	1,060,000		6,058,306
Dainippon Ink and Chemicals Inc.	2,120,000		7,840,162
Denki Kagaku Kogyo
Kabushiki Kaisha	2,120,000		7,188,511
Hitachi Chemical Co. Ltd.	212,000		4,103,357
JSR Corp.	530,000		11,836,607
Kaneka Corp.	1,060,000		7,473,608
Mitsubishi Chemical
Holdings Corp.	3,710,000		25,302,339
Mitsubishi Gas
Chemical Co. Inc.	1,060,000		7,992,892
Mitsui Chemicals Inc.	2,120,000		15,313,770
Nippon Kayaku Co. Ltd.^a	1,060,000		6,384,132
Nissan Chemical Industries Ltd.	853,000		9,881,543
Nitto Denko Corp.	530,000		26,269,631
Shin-Etsu Chemical Co. Ltd.	1,272,000		70,133,807
Showa Denko K.K.	3,180,000		11,515,873
Sumitomo Chemical Co. Ltd.	4,240,000		29,731,521
Taiyo Nippon Sanso Corp.	1,060,000		9,550,742
Tokuyama Corp.	908,000		6,916,517
Tosoh Corp.	2,120,000		7,697,613
Ube Industries Ltd.	3,188,000		9,952,452
Zeon Corp.	566,000		2,816,272

			301,706,930

COMMERCIAL SERVICES – 1.00%
Benesse Corp.	212,000		8,736,180
Dai Nippon Printing Co. Ltd.	2,120,000		33,682,148
Kamigumi Co. Ltd.	1,060,000		8,104,894
K.K. DaVinci Advisors^b	3,180		2,746,093
Meitec Corp.	106,000		3,146,247
TIS Inc.	106,500		1,979,516
Toppan Printing Co. Ltd.	2,120,000		23,377,936

			81,773,014

COMPUTERS – 1.03%
CSK Holdings Corp.	212,000		5,396,475
Fujitsu Ltd.	5,300,000		38,386,245


Security	Shares	Value
Itochu Techno-Solutions Corp.	106,000	$	2,998,607
Obic Co. Ltd.	10,600		1,981,423
Otsuka Corp.	62,000		4,919,264
TDK Corp.	424,000		30,790,452

			84,472,466

COSMETICS & PERSONAL CARE – 1.04%
Aderans Holdings Co. Ltd.^a	106,000		1,936,621
Kao Corp.	1,630,000		50,416,406
Shiseido Co. Ltd.	1,060,000		24,335,046
Uni-Charm Corp.	106,000		7,799,433

			84,487,506

DISTRIBUTION & WHOLESALE – 4.96%
Canon Marketing Japan Inc.	106,000		1,898,948
Hitachi High-Technologies Corp.	106,000		2,092,407
ITOCHU Corp.	4,240,000		45,900,581
Marubeni Corp.	4,341,000		33,817,310
Mitsubishi Corp.	4,134,000		129,851,400
Mitsui & Co. Ltd.	5,300,000		118,620,624
Sojitz Corp.	3,074,000		11,870,208
Sumitomo Corp.	3,180,000		47,040,968
Toyota Tsusho Corp.	530,000		13,694,827

			404,787,273

DIVERSIFIED FINANCIAL SERVICES – 2.73%
Acom Co. Ltd.	222,600		6,500,207
AEON Credit Service Co. Ltd.	424,070		6,317,973
Credit Saison Co. Ltd.^a	530,000		14,789,396
Daiwa Securities Group Inc.	4,240,000		40,280,102
Mitsubishi UFJ Lease &
Finance Co. Ltd.	95,400		3,482,253
Nomura Holdings Inc.	5,512,000		89,214,927
ORIX Corp.	265,000		40,829,931
Promise Co. Ltd.^a	265,000		8,960,185
Shinko Securities Co. Ltd.	1,060,000		3,716,440
Takefuji Corp.	349,920		8,957,656

			223,049,070

ELECTRIC – 3.73%
Chubu Electric Power Co. Inc.	2,014,000		51,073,052
Chugoku Electric Power
Co. Inc. (The)	106,000		2,234,955
Electric Power
Development Co. Ltd.	530,000		19,396,763
Hokkaido Electric Power Co. Inc.	530,000		11,938,428


4		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 29, 2008


Security	Shares	Value
Hokuriku Electric Power Co.	106,000	$	2,367,321
Kansai Electric Power
Co. Inc. (The)	2,332,000		57,345,180
Kyushu Electric Power Co. Inc.	1,166,000		29,512,608
Shikoku Electric Power Co. Inc.	106,000		3,064,790
Tohoku Electric Power Co. Inc.	1,378,100		31,704,044
Tokyo Electric Power
Co. Inc. (The)	3,710,000		96,041,977

			304,679,118

ELECTRICAL COMPONENTS & EQUIPMENT – 4.38%
Casio Computer Co. Ltd.	742,000		9,814,456
Fujikura Ltd.	1,060,000		5,325,200
Furukawa Electric Co. Ltd. (The)	2,120,000		7,616,157
Hitachi Cable Ltd.	1,060,000		4,795,735
Hitachi Ltd.	10,600,000		77,994,333
Mitsubishi Electric Corp.	6,360,000		59,564,863
SANYO Electric Co. Ltd.^b	4,439,000		9,508,640
Sharp Corp.	3,180,000		58,892,848
Stanley Electric Co. Ltd.	425,200		9,108,074
Sumitomo Electric Industries Ltd.	2,332,000		35,146,323
Toshiba Corp.	9,540,000		73,035,685
Ushio Inc.	318,000		6,720,138

			357,522,452

ELECTRONICS – 4.79%
Advantest Corp.	424,000		10,772,585
Alps Electric Co. Ltd.	530,000		6,292,493
Fanuc Ltd.	530,000		50,502,858
Hirose Electric Co. Ltd.	106,000		11,424,235
Hoya Pentax HD Corp.	1,272,000		32,745,401
IBIDEN Co. Ltd.	424,000		20,689,881
Keyence Corp.	106,092		25,100,101
Kyocera Corp.	530,000		44,037,270
Mabuchi Motor Co. Ltd.	106,000		5,376,111
Minebea Co. Ltd.	1,060,000		6,913,597
Mitsumi Electric Co. Ltd.	106,000		3,400,797
Murata Manufacturing Co. Ltd.	636,000		35,189,088
NEC Corp.	6,360,000		28,041,304
NGK Insulators Ltd.	1,060,000		24,691,417
Nippon Electric Glass Co. Ltd.	1,060,500		15,697,906
Omron Corp.	742,000		16,713,799
Secom Co. Ltd.	636,000		32,501,033


Security	Shares	Value
Tokyo Seimitsu Co. Ltd.^a	106,000	$	1,988,550
Yaskawa Electric Corp.	1,060,000		11,902,790
Yokogawa Electric Corp.	636,000		6,726,248

			390,707,464

ENGINEERING & CONSTRUCTION – 0.92%
Chiyoda Corp.	609,000		6,271,053
JGC Corp.	1,060,000		17,604,726
Kajima Corp.	3,180,000		10,019,116
Nishimatsu Construction Co. Ltd.	1,060,000		2,718,601
Obayashi Corp.	2,120,000		10,304,212
Okumura Corp.^a	1,060,000		4,551,366
Shimizu Corp.	2,120,000		10,304,212
Taisei Corp.	3,180,000		8,491,811
Toda Corp.	1,060,000		4,632,823

			74,897,920

ENTERTAINMENT – 0.27%
Oriental Land Co. Ltd.	212,000		12,381,345
Toho Co. Ltd.	425,200		9,945,363

			22,326,708

ENVIRONMENTAL CONTROL – 0.08%
Kurita Water Industries Ltd.	212,000		6,862,687

			6,862,687

FOOD – 1.10%
Ajinomoto Co. Inc.	2,120,000		25,740,166
Kikkoman Corp.^a	1,060,000		12,381,345
Meiji Dairies Corp.	1,060,000		6,139,763
Meiji Seika Kaisha Ltd.^a	1,060,000		5,009,558
Nichirei Corp.	1,060,000		5,294,655
Nippon Meat Packers Inc.	1,060,000		13,124,634
Nisshin Seifun Group Inc.	532,000		5,340,185
Nissin Food Products Co. Ltd.^a	318,800		10,626,157
Yakult Honsha Co. Ltd.	212,000		5,987,032

			89,643,495

FOREST PRODUCTS & PAPER – 0.20%
Nippon Paper Group Inc.	3,180		7,605,975
Oji Paper Co. Ltd.	2,120,000		8,980,549

			16,586,524

GAS – 0.73%
Osaka Gas Co. Ltd.	6,360,000		25,658,710
Tokyo Gas Co. Ltd.	7,420,000		33,641,420

			59,300,130


SCHEDULE OF INVESTMENTS		5

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 29, 2008


Security	Shares	Value
HAND & MACHINE TOOLS – 0.91%
Fuji Electric Holdings Co. Ltd.	2,120,000	$	8,267,807
Makita Corp.	318,000		11,546,420
Nidec Corp.	318,000		21,504,443
OSG Corp.^a	212,000		2,138,226
SMC Corp.	212,000		22,828,106
THK Co. Ltd.	424,600		8,177,542

			74,462,544

HEALTH CARE - PRODUCTS – 0.36%
Terumo Corp.	530,000		29,120,600

			29,120,600

HOME BUILDERS – 0.42%
Daiwa House Industry Co. Ltd.	1,060,000		10,996,590
Haseko Corp.^b	3,180,000		4,917,919
Sekisui Chemical Co. Ltd.	1,060,000		7,514,336
Sekisui House Ltd.	1,060,000		11,139,138

			34,567,983

HOME FURNISHINGS – 3.69%
Matsushita Electric
Industrial Co. Ltd.	6,360,015		136,541,314
Pioneer Corp.	636,000		6,811,776
Sony Corp.	3,074,000		147,344,124
Yamaha Corp.	530,000		10,538,399

			301,235,613

HOUSEWARES – 0.11%
TOTO Ltd.^a	1,060,000		9,000,913

			9,000,913

INSURANCE – 2.36%
Aioi Insurance Co. Ltd.	12,000		62,936
Millea Holdings Inc.	2,332,000		87,809,808
Mitsui Sumitomo
Insurance Co. Ltd.	3,926,000		42,124,221
Nipponkoa Insurance Co. Ltd.	123,000		1,011,364
Sompo Japan Insurance Inc.	2,120,000		20,058,595
Sony Financial Holdings Inc.^b	2,120		8,451,083
T&D Holdings Inc.	636,000		33,111,954

			192,629,961

INTERNET – 1.37%
eAccess Ltd.	3,180		2,077,134
Matsui Securities Co. Ltd.	318,000		2,153,499
Rakuten Inc.	21,330		10,305,932


Security	Shares	Value
SBI E*Trade Securities Co. Ltd.	4,240	$	3,730,695
SBI Holdings Inc.	29,680		7,460,983
SoftBank Corp.	2,332,000		46,480,957
Trend Micro Inc.	533,500		18,653,667
Yahoo! Japan Corp.	46,640		21,078,834

			111,941,701

IRON & STEEL – 3.45%
Daido Steel Co. Ltd.	1,060,000		7,626,339
JFE Holdings Inc.	1,696,250		77,231,881
Kobe Steel Ltd.	8,480,000		27,043,466
Nippon Steel Corp.	18,020,000		96,932,905
Nisshin Steel Co. Ltd.	3,188,000		11,697,959
Sumitomo Metal
Industries Ltd.	12,720,000		55,227,318
Tokyo Steel
Manufacturing Co. Ltd.	424,600		5,192,025
Yamato Kogyo Co. Ltd.	21,000		907,737

			281,859,630

LEISURE TIME – 0.55%
Namco Bandai Holdings Inc.	636,098		7,985,976
Round One Corp.	1,060		1,232,025
Sankyo Co. Ltd.	212,000		11,424,235
Sega Sammy Holdings Inc.^a	212,000		2,364,267
Shimano Inc.	212,000		9,041,641
Yamaha Motor Co. Ltd.	636,200		12,925,056

			44,973,200

MACHINERY – 0.39%
Hitachi Construction
Machinery Co. Ltd.	321,000		9,034,436
Japan Steel Works Ltd. (The)	1,060,000		17,686,182
Okuma Corp.	493,000		4,835,051

			31,555,669

MACHINERY - CONSTRUCTION & MINING – 0.89%
Komatsu Ltd.	2,756,000		72,272,033

			72,272,033

MACHINERY - DIVERSIFIED – 0.62%
Amada Co. Ltd.	1,060,000		8,165,986
Ebara Corp.^a	1,060,000		3,074,972
Kubota Corp.	3,180,000		21,657,173
Sumitomo Heavy Industries Ltd.	2,120,000		17,350,175

			50,248,306


6		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 29, 2008


Security	Shares	Value
MANUFACTURING – 2.62%
FUJIFILM Holdings Corp.	1,484,000	$	56,591,710
Glory Ltd.	106,000		2,453,869
IHI Corp.	4,246,000		8,483,435
Kawasaki Heavy Industries Ltd.	4,240,000		10,467,125
Konica Minolta Holdings Inc.	1,590,000		22,924,836
Mitsubishi Heavy Industries Ltd.	10,600,000		50,808,319
Nikon Corp.	1,060,000		30,393,353
Olympus Corp.	1,060,000		31,564,286

			213,686,933

MEDIA – 0.10%
Fuji Television Network Inc.	1,655		2,527,688
Jupiter Telecommunications
Co. Ltd.^b	4,240		3,563,710
Tokyo Broadcasting System Inc.	106,000		2,316,411

			8,407,809

METAL FABRICATE & HARDWARE – 0.21%
NSK Ltd.	1,060,000		9,296,191
NTN Corp.	1,060,000		7,982,710

			17,278,901

MINING – 0.96%
Dowa Holdings Co. Ltd.	1,060,000		7,595,793
Mitsubishi Materials Corp.	3,180,000		15,242,496
Mitsui Mining & Smelting Co. Ltd.	2,120,000		7,901,254
Nippon Light Metal Co. Ltd.	1,060,000		1,669,853
OSAKA Titanium technologies Co. Ltd.^a	78,400		5,369,502
Sumitomo Metal Mining Co. Ltd.	1,724,000		37,343,259
Toho Titanium Co. Ltd.^a	106,000		3,085,154

			78,207,311

OFFICE & BUSINESS EQUIPMENT – 2.43%
Canon Inc.	3,286,050		152,142,174
Ricoh Co. Ltd.	2,120,000		34,822,535
Seiko Epson Corp.	424,000		10,996,590

			197,961,299

OIL & GAS – 1.13%
Cosmo Oil Co. Ltd.	1,060,000		3,573,892
Idemitsu Kosan Co. Ltd.	34,000		2,825,032
INPEX Holdings Inc.	2,120		24,233,226
Japan Petroleum
Exploration Co. Ltd.	35,000		2,467,701
Nippon Mining Holdings Inc.	2,650,000		16,036,694


Security	Shares	Value
Nippon Oil Corp.	4,240,500	$	29,409,164
Showa Shell Sekiyu K.K.	318,000		3,256,213
TonenGeneral Sekiyu K.K.	1,060,000		10,141,299

			91,943,221

PACKAGING & CONTAINERS – 0.12%
Toyo Seikan Kaisha Ltd.	530,000		9,387,830

			9,387,830

PHARMACEUTICALS – 4.98%
Alfresa Holdings Corp.	106,000		7,443,062
Astellas Pharma Inc.	1,590,030		70,257,317
Chugai Pharmaceutical Co. Ltd.	848,000		9,945,805
Daiichi Sankyo Co. Ltd.	2,226,069		69,708,323
Eisai Co. Ltd.	848,000		30,790,452
Kyowa Hakko Kogyo Co. Ltd.	754,000		7,358,571
Mediceo Paltac Holdings Co. Ltd.	424,000		7,261,822
Mitsubishi Tanabe Pharma Corp.	1,060,000		12,218,433
Santen Pharmaceutical Co. Ltd.	106,000		2,708,419
Shionogi & Co. Ltd.	1,060,000		18,297,104
Suzuken Co. Ltd.	212,000		7,677,249
Taisho Pharmaceutical Co. Ltd.	944,000		19,223,669
Takeda Pharmaceutical Co. Ltd.	2,544,000		143,200,038

			406,090,264

REAL ESTATE – 2.51%
AEON Mall Co. Ltd.	106,000		2,652,418
Daito Trust Construction Co. Ltd.	212,000		11,627,876
Leopalace21 Corp.	424,000		8,817,636
Mitsubishi Estate Co. Ltd.	3,479,000		87,221,459
Mitsui Fudosan Co. Ltd.	2,596,000		54,361,270
Nomura Real Estate
Holdings Inc.	22,000		412,295
NTT Urban Development Corp.^a	3,180		4,032,083
Sumitomo Realty &
Development Co. Ltd.	1,060,000		18,612,747
Tokyo Tatemono Co. Ltd.	1,060,000		7,361,606
Tokyu Land Corp.	1,060,000		7,320,878
Urban Corp.	424,000		2,826,531

			205,246,799

REAL ESTATE INVESTMENT TRUSTS – 0.48%
Japan Real Estate Investment Corp.	1,060		12,014,793
Japan Retail Fund Investment Corp.^a	1,060		6,516,498


SCHEDULE OF INVESTMENTS		7

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 29, 2008


Security	Shares	Value
Nippon Building Fund Inc.	1,302	$	16,258,585
Nomura Real Estate Office Fund Inc.	520		4,425,532

			39,215,408

RETAIL – 2.80%
AEON Co. Ltd.	1,802,000		22,173,402
Aoyama Trading Co. Ltd.	212,000		4,480,092
Autobacs Seven Co. Ltd.	106,000		2,413,141
Citizen Watch Co. Ltd.	1,166,000		9,889,804
EDION Corp.	212,000		2,105,643
FamilyMart Co. Ltd.	212,000		6,292,493
Fast Retailing Co. Ltd.	212,000		15,924,691
Isetan Co. Ltd.	636,000		7,642,630
J. Front Retailing Co. Ltd.	1,200,000		7,895,874
Lawson Inc.	212,000		8,145,622
Marui Group Co. Ltd.	954,000		9,887,767
Mitsukoshi Ltd.^a	1,060,000		4,306,998
Nitori Co. Ltd.	106,000		5,294,654
Ryohin Keikaku Co. Ltd.	106,000		5,671,389
Seven & I Holdings Co. Ltd.	2,544,080		64,270,981
Shimachu Co. Ltd.	106,500		2,777,460
Shimamura Co. Ltd.	47,700		3,500,581
Takashimaya Co. Ltd.	1,060,000		11,821,334
UNY Co. Ltd.	1,062,000		8,558,840
USS Co. Ltd.	74,200		4,568,676
Yamada Denki Co. Ltd.	233,200		20,765,227

			228,387,299

SEMICONDUCTORS – 1.01%
Elpida Memory Inc.^a,b	318,000		10,813,313
NEC Electronics Corp.^b	106,000		2,189,136
Rohm Co. Ltd.	318,400		23,427,731
Sanken Electric Co. Ltd.^a	332,000		1,989,991
Shinko Electric Industries Co. Ltd.	212,000		3,109,591
Sumco Corp.	318,000		7,254,695
Tokyo Electron Ltd.	530,052		33,603,989

			82,388,446

SHIPBUILDING – 0.08%
Mitsui Engineering &
Shipbuilding Co. Ltd.	2,120,000		6,659,046

			6,659,046

SOFTWARE – 0.28%
Fuji Soft ABC Inc.^a	106,000		1,649,488
Konami Corp.	318,800		10,687,402


Security	Shares	Value
Nomura Research Institute Ltd.	212,000	$	6,129,581
Oracle Corp.	106,000		4,704,097

			23,170,568

STORAGE & WAREHOUSING – 0.05%
Mitsubishi Logistics Corp.	319,000		3,824,139

			3,824,139

TELECOMMUNICATIONS – 2.63%
Hikari Tsushin Inc.	106,000		3,268,431
KDDI Corp.	7,420		45,615,485
Nippon Telegraph and
Telephone Corp.	15,900		69,339,609
NTT Data Corp.	4,240		20,078,959
NTT DoCoMo Inc.	49,820		74,654,627
Oki Electric Industry Co. Ltd.^a,b	1,065,000		1,933,481

			214,890,592

TEXTILES – 0.87%
Kuraray Co. Ltd.	1,060,000		12,819,173
Mitsubishi Rayon Co. Ltd.	2,120,000		7,371,788
Nisshinbo Industries Inc.	1,060,000		11,281,687
Teijin Ltd.	3,180,000		12,493,348
Toray Industries Inc.	4,240,000		26,636,185

			70,602,181

TOYS, GAMES & HOBBIES – 2.00%
Nintendo Co. Ltd.	318,000		163,116,085

			163,116,085

TRANSPORTATION – 4.65%
Central Japan Railway Co.	5,068		48,681,620
East Japan Railway Co.	10,600		85,427,213
Hankyu Hanshin Holdings Inc.	3,185,800		14,229,835
Kawasaki Kisen Kaisha Ltd.	2,120,000		22,095,000
Keihin Electric Express
Railway Co. Ltd.^a	1,064,000		7,297,402
Keio Corp.	2,120,000		12,096,249
Kintetsu Corp.^a	5,304,000		17,831,996
Mitsui O.S.K. Lines Ltd.	3,180,000		42,489,602
Nippon Express Co. Ltd.	2,120,000		11,444,599
Nippon Yusen Kabushiki Kaisha	3,180,000		30,057,346
Odakyu Electric Railway Co. Ltd.	1,060,000		6,984,871
Seino Holdings Co. Ltd.	1,060,000		7,117,237
Tobu Railway Co. Ltd.	3,180,000		15,334,134
Tokyu Corp.	3,180,000		18,572,018
West Japan Railway Co.	5,300		24,335,046
Yamato Holdings Co. Ltd.	1,060,000		15,639,594

			379,633,762


8		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 29, 2008


Security	Shares	Value
VENTURE CAPITAL – 0.05%
JAFCO Co. Ltd.	106,000	$	3,746,986

			3,746,986


TOTAL COMMON STOCKS (Cost: $7,884,825,498)			8,150,762,824

SHORT-TERM INVESTMENTS – 1.48%

MONEY MARKET FUNDS – 1.48%
Barclays Global Investors Funds
Institutional Money Market
Fund, Institutional Shares 3.59%^c,d	177,768		177,768
BGI Cash Premier Fund LLC
3.63%^c,d,e	120,867,077		120,867,077

			121,044,845


TOTAL SHORT-TERM INVESTMENTS (Cost: $121,044,845)
TOTAL SHORT-TERM INVESTMENTS (Cost: $121,044,845)			121,044,845


TOTAL INVESTMENTS IN SECURITIES – 101.35%
(Cost: $8,005,870,343)			8,271,807,669
Other Assets, Less Liabilities – (1.35)%			(110,035,029	)


NET ASSETS – 100.00%		$	8,161,772,640

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

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


SCHEDULE OF INVESTMENTS		9

Statement of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 29, 2008


	iShares MSCI Japan Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	7,884,825,498
Affiliated issuers (Note 2)		121,044,845

Total cost of investments	$	8,005,870,343

Investments in securities, at value (including securities on loan^a) (Note 1):
Unaffiliated issuers	$	8,150,762,824
Affiliated issuers (Note 2)		121,044,845

Total value of investments		8,271,807,669
Foreign currency, at value^b		7,708,099
Receivables:
Dividends and interest		8,163,292

Total Assets		8,287,679,060


LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		120,867,077
Capital shares redeemed		1,741,459
Investment advisory fees (Note 2)		3,297,884

Total Liabilities		125,906,420


NET ASSETS	$	8,161,772,640


Net assets consist of:
Paid-in capital	$	7,602,748,480
Distributions in excess of net investment income		(31,578,273	)
Undistributed net realized gain		323,893,881
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		266,708,552


NET ASSETS	$	8,161,772,640

Shares outstanding^c		636,000,000

Net asset value per share	$	12.83

^a	Securities on loan with market value of $114,854,750. See Note 5.

^b	Cost of foreign currency: $7,507,868.

^c	$0.001 par value, number of shares authorized: 2,124,600,000.

See notes to financial statements.


10		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 29, 2008


	iShares MSCI Japan Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuers^a	$	69,877,702
Interest from affiliated issuers (Note 2)		159,694
Securities lending income from affiliated issuers (Note 2)		911,489

Total investment income		70,948,885


EXPENSES
Investment advisory fees (Note 2)		26,234,817

Total expenses		26,234,817

Net investment income		44,714,068


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(44,150,574	)
In-kind redemptions		642,005,257
Foreign currency transactions		2,482,158

Net realized gain		600,336,841

Net change in unrealized appreciation (depreciation) on:
Investments		(1,582,392,136	)
Translation of assets and liabilities in foreign currencies		687,770

Net change in unrealized appreciation (depreciation)		(1,581,704,366	)

Net realized and unrealized loss		(981,367,525	)


NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(936,653,457	)

^a	Net of foreign withholding tax of $5,207,648.

See notes to financial statements.


FINANCIAL STATEMENTS				11

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Japan Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	44,714,068		$	94,180,315
Net realized gain		600,336,841			1,158,734,665
Net change in unrealized appreciation (depreciation)		(1,581,704,366	)		(877,641,765	)

Net increase (decrease) in net assets resulting from operations		(936,653,457	)		375,273,215


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(106,366,554	)		(97,091,876	)

Total distributions to shareholders		(106,366,554	)		(97,091,876	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		179,718,615			1,146,746,106
Cost of shares redeemed		(2,754,931,893	)		(3,369,511,925	)

Net decrease in net assets from capital share transactions		(2,575,213,278	)		(2,222,765,819	)

DECREASE IN NET ASSETS		(3,618,233,289	)		(1,944,584,480	)

NET ASSETS
Beginning of period		11,780,005,929			13,724,590,409

End of period	$	8,161,772,640		$	11,780,005,929

Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(31,578,273	)	$	30,074,213


SHARES ISSUED AND REDEEMED
Shares sold		13,200,000			79,800,000
Shares redeemed		(214,200,000	)		(237,000,000	)

Net decrease in shares outstanding		(201,000,000	)		(157,200,000	)

See notes to financial statements.


12		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Japan Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Year ended Aug. 31, 2003
Net asset value, beginning of period	$	14.07		$	13.80		$	10.99		$	9.89		$	8.29		$	7.77


Income from investment operations:
Net investment income^a		0.06			0.10			0.06			0.06			0.03			0.00	^b
Net realized and unrealized gain (loss)^c		(1.16	)		0.27			2.81			1.08			1.57			0.52

Total from investment operations		(1.10	)		0.37			2.87			1.14			1.60			0.52


Less distributions from:
Net investment income		(0.14	)		(0.10	)		(0.06	)		(0.04	)		(0.00	)^b		–

Total distributions		(0.14	)		(0.10	)		(0.06	)		(0.04	)		(0.00	)^b		–

Net asset value, end of period	$	12.83		$	14.07		$	13.80		$	10.99		$	9.89		$	8.29


Total return		(7.84	)%^d		2.68	%		26.10	%		11.58	%		19.32	%		6.69	%


Ratios/Supplemental data:
Net assets, end of period (000s)	$	8,161,773		$	11,780,006		$	13,724,590		$	7,248,107		$	5,863,332		$	1,726,855
Ratio of expenses to average net assets^e		0.51	%		0.52	%		0.54	%		0.57	%		0.64	%^f		0.84	%
Ratio of net investment income to average net assets^e		0.87	%		0.68	%		0.48	%		0.59	%		0.28	%		0.03	%
Portfolio turnover rate^g		1	%		3	%		8	%		6	%		5	%		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.


FINANCIAL HIGHLIGHTS				13

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

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 MSCI 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”).


14		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Investments that may be valued using fair value pricing include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (i.e., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (i.e., an event that occurs after the close of the markets on which the security is traded but before the time as of which the Fund’s NAV is computed and that may materially affect the value of the Fund’s investments). Examples of events that may be “significant events” are government actions, natural disasters, armed conflict, acts of terrorism, and significant market fluctuations.

Valuing the Fund’s investments using fair value pricing will result in using prices for those investments that may differ from current market valuations. Accordingly, fair value pricing could result in a difference between the prices used to calculate the Fund’s net asset value and the prices used by the Fund’s benchmark index, which, in turn, could result in a difference between the Fund’s performance and the performance of the Fund’s benchmark index.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

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 ordinary income


NOTES TO FINANCIAL STATEMENTS		15

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the six months ended February 29, 2008.

As of August 31, 2007, 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, $68,122,871 and $27,817,841 expiring in 2009, 2010, 2011, 2012, 2013, 2014 and 2015, 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 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 29, 2008, the cost of investments for federal income tax purposes was $8,087,157,966. Net unrealized appreciation was $184,649,703, of which $1,046,251,552 represented gross unrealized appreciation on securities and $861,601,849 represented gross unrealized depreciation on securities.

The Fund adopted Financial Accounting Standards Board (“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 a tax position taken or expected to be taken in a tax return. FIN 48 provides guidance on the measurement, recognition, classification and disclosures of tax positions, along with accounting for the related interest and penalties. Management has reviewed the tax positions as of February 29, 2008, inclusive of the prior three open tax return years, and has determined that the implementation of FIN 48 did not have a material impact on the Fund’s financial statements.

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 the Fund and other iShares Funds in the same advisory fee category, 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


16		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 Fund. BarCap and BGI are affiliates of BGFA, the Fund’s investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 29, 2008, BGI earned securities lending agent fees of $911,489.

Cross trades for the six months ended February 29, 2008 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.

The Fund may invest its securities lending cash collateral, if any, in the BGI Cash Premier Fund LLC (“Premier Fund”), an affiliated private money market fund managed by BGFA. Although the Premier Fund is not registered as an investment company under the 1940 Act, it intends to operate as a money market fund in compliance with Rule 2a-7 under the 1940 Act. See Note 5 for additional information regarding the Premier Fund.

As of February 29, 2008, 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 29, 2008, aggregated $109,387,634 and $256,587,224, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 29, 2008, aggregated $173,086,252 and $2,659,526,711, respectively.


NOTES TO FINANCIAL STATEMENTS		17

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

4. CAPITAL SHARE TRANSACTIONS

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

The consideration for the purchase of Creation Units of the Fund generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes a substantial replication, or 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 State Street, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

5. LOANS OF PORTFOLIO SECURITIES

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

As of February 29, 2008, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in the Premier Fund. The Premier Fund seeks to achieve its investment objective by investing in a portfolio of high-quality, short-term fixed-income instruments, including money market funds (which may be managed by BGFA or its affiliate) and other instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition.

The market value of the securities on loan as of February 29, 2008 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 PRONOUNCEMENT


18		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES		19

Notes:


20		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds

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 S&P North American Natural Resources

Sector (IGE)

iShares S&P North American Technology-

Multimedia Networking (IGN)

iShares S&P North American Technology-

Semiconductors (IGW)

iShares S&P North American Technology-

Software (IGV)

iShares S&P North American Technology

Sector (IGM)

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. (IYY)

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 FTSE NAREIT Industrial/Office (FIO)

iShares FTSE NAREIT Mortgage REITs (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential (REZ)

iShares FTSE NAREIT Retail (RTL)

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 Infrastructure (IGF)

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 Chile (ECH)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Israel Capped Investable

Market (EIS)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Japan Small Cap (SCJ)

iShares 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 Thailand Investable

Market (THD)

iShares MSCI Turkey Investable

Market (TUR)

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 iBoxx $ High Yield

Corporate (HYG)

iShares Lehman Government/Credit (GBF)

iShares Lehman Intermediate

Government/Credit (GVI)

iShares Lehman MBS (MBB)

iShares S&P National Municipal (MUB)

iShares S&P California Municipal (CMF)

iShares S&P New York Municipal (NYF)

iShares JPMorgan USD Emerging

Markets (EMB)

iShares Specialty Index Funds

iShares KLD 400 Social (DSI)

iShares KLD Select Social^SM(KLD)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones EPAC Select

Dividend (IDV)

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

iShares International Index Funds

iShares FTSE Developed Small Cap

ex-North America (IFSM)

iShares FTSE EPRA/NAREIT Global

Real Estate ex-U.S. (IFGL)

iShares FTSE EPRA/NAREIT North

America (IFNA)

iShares FTSE EPRA/NAREIT Europe (IFEU)

iShares FTSE EPRA/NAREIT Asia (IFAS)

iShares MSCI ACWI (ACWI)

iShares MSCI ACWI ex US (ACWX)

iShares MSCI BRIC (BKF)

iShares MSCI EAFE (EFA)

iShares MSCI EAFE Growth (EFG)

iShares MSCI EAFE Value (EFV)

iShares MSCI EAFE Small Cap (SCZ)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI Kokusai (TOK)

iShares MSCI Pacific ex-Japan (EPP)

iShares S&P Asia 50 (AIA)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares S&P World ex-U.S. Property (WPS)


iSHARES FAMILY OF FUNDS		21

The iShares^® Family of Funds (Continued)

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 Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA^®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx^®, J.P. Morgan Securities Inc., KLD Research & Analytics, Inc., MSCI Inc., Morningstar Inc., The NASDAQ Stock Market, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 Index, FTSE NAREIT Residential Index, FTSE NAREIT Retail Index, FTSE NAREIT Mortgage REITs Index or FTSE NAREIT Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. “NAREIT” is a trademark of NAREIT; “EPRA^®” is a trademark of EPRA.

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

This advertising section does not constitute part of the 2008 Semi-Annual Report.

6712-iS-0408


22		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

LOGO

Table of Contents


Fund Performance Overview		1
Shareholder Expenses		2
Schedule of Investments		3
Financial Statements		11
Financial Highlights		14
Notes to Financial Statements		15
iShares Family of Funds		21

Fund Performance Overview

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

Performance as of February 29, 2008

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^SM (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 included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 29, 2008, the Fund returned 6.78%, while the Index returned 8.15%.

Average Annual Total Returns

Cumulative Total Returns

Year Ended 2/29/08

Inception to 2/29/08

NAV

MARKET

INDEX

NAV

MARKET

INDEX

NAV

MARKET

INDEX

28.64%

28.12%

33.21%

35.51%

35.54%

36.35%

343.51%

343.90%

356.95%

Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the 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.


PORTFOLIO ALLOCATION As of 2/29/08
Sector/Investment Type	Percentage of Net Assets

Financial	19.31	%

Energy	17.83

Basic Materials	14.56

Communications	14.20

Technology	10.54

Industrial	8.77

Consumer Non-Cyclical	4.28

Utilities	4.08

Consumer Cyclical	3.57

Diversified	1.89

Exchange-Traded Funds	0.45

Short-Term and Other Net Assets	0.52


TOTAL	100.00	%


TEN LARGEST FUND HOLDINGS As of 2/29/08
Security	Percentage of Net Assets
OAO Gazprom SP ADR Reg S (Russia)	3.59	%
Samsung Electronics Co. Ltd. GDR (South Korea)	3.07
POSCO ADR (South Korea)	2.70
Petroleo Brasileiro SA Preferred SP ADR (Brazil)	2.64
China Mobile Ltd. (China)	2.50
Petroleo Brasileiro SA ADR (Brazil)	2.44
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR (Taiwan)	2.43
Chunghwa Telecom Co. Ltd. SP ADR (Taiwan)	2.23
Companhia Vale do Rio Doce Preferred SP ADR (Brazil)	1.94
Companhia Vale do Rio Doce ADR (Brazil)	1.66

TOTAL	25.20	%


FUND PERFORMANCE OVERVIEW		1

Shareholder Expenses (Unaudited)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

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, 2007 to February 29, 2008.

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

Please note that the expenses shown in the table are meant to highlight your on going 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 (9/1/07)	Ending Account Value (2/29/08)	Annualized Expense Ratio		Expenses Paid During Period^a(9/1/07 to 2/29/08)
Actual	$ 1,000.00	$ 1,067.80	0.72	%	$ 3.70
Hypothetical (5% return before expenses)	1,000.00	1,021.30	0.72		3.62

^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 (182 days) and divided by the number of days in the year (366 days).


2		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 29, 2008


Security	Shares	Value
COMMON STOCKS – 89.54%

ARGENTINA – 0.69%
BBVA Banco Frances SA ADR	1,296,804	$	9,661,190
Petrobras Energia Participaciones SA SP ADR	2,445,755		29,128,942
Tenaris SA ADR	3,192,903		141,924,538

			180,714,670

BRAZIL – 5.10%
Companhia Siderurgica
Nacional SP ADR	1,366,075		51,077,544
Companhia Vale do Rio Doce ADR	12,415,800		432,566,472
Empresa Brasileira de Aeronautica SA ADR	1,395,483		61,847,807
Gafisa SA ADR^a	256,263		10,037,822
Petroleo Brasileiro SA ADR	5,415,725		635,481,172
TAM SA ADR	121,800		2,550,492
Unibanco – Uniao de Bancos Brasileiros SA Units GDR	945,700		128,255,834
Vivo Participacoes SA ADR	718,400		4,360,688

			1,326,177,831

CHILE – 1.82%
Banco Santander Chile SA ADR	2,380,680		123,223,997
Compania de Telecomunicaciones de Chile SA SP ADR	2,885,918		23,116,203
Enersis SA SP ADR	7,041,956		111,051,646
LAN Airlines SA SP ADR^b	3,107,505		41,578,417
Sociedad Quimicay Minerade Chile SA SP ADR	889,650		173,526,233

			472,496,496

CHINA – 15.13%
Agile Property Holdings Ltd.^b	9,800,000		13,930,456
Air China Ltd. Class H^b	31,850,000		30,905,837
Alibaba.com Ltd.^a,b	7,350,000		17,816,121
Aluminum Corp. of China Ltd. Class H	7,350,000		14,831,023
Angang New Steel Co. Ltd. Class H^b	17,151,320		46,291,469


Security	Shares	Value
Anhui Conch Cement Co. Ltd. Class H	2,450,000	$	19,381,093
Bank of China Ltd. Class H^b	173,950,000		74,671,525
Bank of Communications Co. Ltd. Class H^b	57,681,000		70,797,883
Beijing Capital International Airport Co. Ltd. Class H^b	19,604,000		21,139,308
Beijing Enterprises Holdings Ltd.	4,042,000		17,065,374
Brilliance China Automotive Holdings Ltd.^a,b	29,574,000		5,967,519
Chaoda Modern Agriculture (Holdings) Ltd.^b	2,478,175		2,825,138
China Agri-Industries Holdings Ltd.^a,b	7,356,000		5,464,541
China Coal Energy Co. Class H	5,956,000		13,518,531
China Communications Construction Co. Ltd. Class H^b	33,075,000		88,206,802
China Construction Bank Class H^b	236,817,000		184,141,795
China COSCO Holdings Co. Ltd. Class H	6,517,000		19,725,261
China Eastern Airlines Corp. Ltd. Class H^a,b	84,000,000		54,411,906
China Ever bright Pacific Ltd.^a,b	27,178,000		64,271,648
China Foods Ltd.^a,b	6,156,000		3,821,465
China High Speed Transmission Equipment Group Co. Ltd.^a,b	2,450,000		4,496,539
China Life Insurance Co. Ltd. Class H	63,700,000		257,480,417
China Mengniu Dairy Co. Ltd.	4,900,000		13,477,023
China Merchants Holdings (International) Co. Ltd.^b	9,800,000		54,034,046
China Mobile Ltd.	42,262,500		651,809,296
China National Building Material Co. Ltd. Class H	3,588,000		11,597,771
China Overseas Land & Investment Ltd.	34,300,000		68,241,599


SCHEDULE OF INVESTMENTS		3

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 29, 2008


Security	Shares	Value
China Petroleum & Chemical Corp. Class H	127,400,000	$	144,909,487
China Railway Group Ltd. Class H^a,b	24,500,000		29,284,186
China Resources Enterprises Ltd.	17,164,000		62,319,086
China Resources Land Ltd.	39,232,000		73,919,418
China Resources Power Holdings Co. Ltd.	7,350,000		18,685,200
China Shenhua Energy Co. Ltd. Class H	12,862,500		67,448,092
China Shipping Development Co. Ltd. Class H	22,068,000		70,481,232
China Southern Airlines Co. Ltd. Class H^a	1,964,000		1,999,175
China Telecom Corp. Ltd. Class H	31,850,000		24,356,256
China Travel International Investment Hong Kong Ltd.^b	84,294,951		46,585,863
CITIC Pacific Ltd.	13,475,000		74,383,406
CITIC Resources Holdings Ltd.^a	2,240,000		1,024,902
CNOOC Ltd.	147,000,000		253,544,370
COSCO Pacific Ltd.	7,350,000		16,210,214
Country Garden Holdings Co.^a,b	24,500,000		23,238,418
Datang International Power Generation Co. Ltd. Class H	19,616,000		13,513,236
Denway Motors Ltd.^b	46,550,000		24,050,819
Dongfang Electric Co. Ltd.	2,028,000		12,380,714
FU JI Food and Catering Services Holdings Ltd.	1,225,000		2,172,698
Global Bio-Chem Technology Group Co. Ltd.	8,894,000		3,715,050
GOME Electrical Appliances Holdings Ltd.^b	14,700,000		32,873,860
Guangdong Investment Ltd.^b	17,154,110		9,281,847
Guangshen Railway Co. Ltd. Class H^b	78,470,363		51,939,410
Guangzhou Investment Co. Ltd.	37,804,000		9,085,807


Security	Shares	Value
Guangzhou R&F Properties Co. Ltd. Class H^b	980,000	$	3,066,967
Harbin Power Equipment Co. Ltd. Class H^b	2,450,000		5,586,037
Huadian Power International Corp. Ltd. Class H^b	39,200,000		13,451,833
Huaneng Power International Inc. Class H^b	29,034,000		24,329,803
Hunan Non-Ferrous Metals Corp. Ltd. Class H^b	34,328,000		17,956,721
Industrial and Commercial Bank of China Class H^b	253,593,000		180,563,990
Jiangsu Expressway Co. Ltd. Class H^b	7,356,000		7,062,305
Jiangxi Copper Co. Ltd. Class H^b	24,518,000		58,863,493
KWG Property Holding Ltd.^a,b	6,125,000		6,171,721
Lenovo Group Ltd.^b	51,450,000		35,707,814
Li Ning Co. Ltd.^b	4,900,000		15,492,279
Maanshan Iron & Steel Co. Ltd. Class H^b	26,950,000		17,249,330
Nine Dragons Paper Holdings Ltd.^b	12,545,000		22,572,664
PetroChina Co. Ltd. Class H	149,450,000		227,421,616
Ping An Insurance (Group) Co. of China Ltd. Class H^b	13,478,500		105,324,465
Shanghai Forte Land Co. Class H	7,350,000		3,211,814
Shanghai Industrial Holdings Ltd.^b	4,904,000		20,326,579
Shenzhen Investment Ltd.^b	34,986,000		19,200,224
Sinofert Holdings Ltd.^b	40,694,000		41,475,123
Sinopec Shanghai Petrochemical Co. Ltd. Class H^b	29,424,000		14,256,968
Sinotrans Ltd. Class H^b	29,400,000		9,370,940
Travelsky Technology Ltd. Class H^b	4,713,000		3,997,841
Tsingtao Brewery Co. Ltd. Class H^b	4,904,000		14,559,503
Weichai Power Co. Ltd. Class H^b	4,901,000		25,069,859


4		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 29, 2008


Security	Shares	Value
XinAo Gas Holdings Ltd.^b	4,550,000	$	8,455,977
Yanzhou Coal Mining Co. Ltd. Class H^b	26,950,800		45,722,473
Zhejiang Expressway Co. Ltd. Class H	26,950,000		27,086,298
Zijin Mining Group Co. Ltd. Class H^b	49,000,000		67,133,209

			3,938,411,978

COLOMBIA – 0.02%
Bancolombia SA SP ADR	146,799		4,954,466

			4,954,466

CZECH REPUBLIC – 2.17%
Central European Media Enterprises Ltd. Class A^a	22,886		2,215,741
CEZ AS	5,002,043		372,662,632
Komercni Banka AS	342,494		84,274,925
Philip Morris CR AS	14,051		6,122,929
Unipetrol AS^a	5,275,430		90,314,078
Zentiva NV^b	150,026		8,292,213

			563,882,518

EGYPT – 1.11%
Orascom Construction Industries Co. GDR	837,180		209,085,705
Orascom Telecom Holding SAE GDR Reg S^b	1,092,529		79,863,870

			288,949,575

HUNGARY – 1.43%
Gedeon Richter Rt^b	538,757		117,093,181
Magyar Telekom PLC^b MOL Magyar Olaj-es	3,818,752		18,548,559
Gazipari Rt^b	759,858		104,150,598
OTP Bank Ltd.^b	3,249,523		132,620,288

			372,412,626

INDIA – 6.30%
HDFC Bank Ltd. ADR	3,105,375		338,827,466
ICICI Bank Ltd. SP ADR	5,354,723		277,588,840
Infosys Technologies Ltd. SP ADR^b	5,830,236		226,912,785
Mahanagar Telephone Nigam Ltd. ADR^b	7,327,190		44,769,131


Security	Shares	Value
Reliance Industries Ltd. GDR^b,c	2,634,975	$	320,808,206
Satyam Computer Services Ltd. ADR^b	7,370,633		184,118,412
Tata Communications Ltd. ADR^b	6,691,946		165,960,261
Wipro Ltd. ADR^b	7,081,725		81,723,107

			1,640,708,208

INDONESIA – 2.33%
PT Aneka Tambang Tbk	110,862,500		50,141,891
PT Astra Agro Lestari Tbk	3,062,500		10,675,676
PT Astra International Tbk	18,994,500		58,355,965
PT Bank Central Asia Tbk	110,320,000		43,507,336
PT Bank Danamon Indonesia Tbk	18,866,487		15,921,525
PT Bank Mandiri Tbk	41,037,500		14,826,014
PT Bank Pan Indonesia Tbk^a	305,812,522		21,928,091
PT Bank Rakyat Indonesia Tbk	49,329,061		39,180,280
PT Bumi Resources Tbk	170,275,000		144,635,135
PT Indosat Tbk	1,837,500		1,388,513
PT Kalbe Farma Tbk	290,157,126		33,608,935
PT Perusahaan Gas Negara Tbk	23,170,500		35,273,348
PT Ramayana Lestari Sentosa Tbk	118,911,870		10,625,330
PT Semen Gresik (Persero) Tbk	6,285,000		3,674,628
PT Telekomunikasi Indonesia Tbk	82,821,000		89,536,216
PT United Tractors Tbk	22,746,771		33,248,176

			606,527,059

ISRAEL – 3.63%
Africa Israel Investments Ltd.^b	299,573		20,275,668
Aladdin Knowledge Systems Ltd.^a	96,795		2,053,990
Alvarion Ltd.^a	1,528,800		11,573,016
AudioCodes Ltd.^a	133,815		566,037
Bank Hapoalim Ltd.^b	14,228,542		62,634,786
Bank Leumi Le-Israel^b	18,628,730		87,698,704
Check Point Software Technologies Ltd.^a	1,968,100		43,140,752
Clal Insurance Co. Ltd.	121,275		2,743,763
Discount Investment Corp. Ltd.	102,984		2,754,334


SCHEDULE OF INVESTMENTS		5

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 29, 2008


Security	Shares	Value
Elbit Systems Ltd.^b	938,350	$	54,034,127
Elite Industries Ltd.^a,b	275,625		3,979,194
Given Imaging Ltd.^a,b	278,075		4,410,270
Israel Chemicals Ltd.^b	10,019,275		141,230,160
Israel Corp. Ltd. (The)^b	27,879		30,981,739
Israel Discount Bank Class A^a,b	21,032,485		55,115,420
Koor Industries Ltd.	396,957		28,740,978
Makhteshim-Agan Industries Ltd.^a,b	4,307,224		36,851,556
Mizrahi Tefahot Bank Ltd.^b	6,703,372		52,047,086
NICE Systems Ltd.^a	245,200		8,030,129
Teva Pharmaceutical Industries Ltd.^b	6,046,600		295,712,767

			944,574,476

MALAYSIA – 0.54%
AMMB Holdings Bhd	9,752,175		11,356,422
Bumiputra-Commerce Holdings Bhd	2,034,000		6,685,553
Bursa Malaysia Bhd	2,930,800		10,458,951
Gamuda Bhd	12,166,000		15,005,178
Genting Bhd	3,359,400		7,203,597
IGB Corp. Bhd	4,577,800		2,751,409
IJM Corp. Bhd	3,701,200		8,399,969
IOI Corp. Bhd	5,265,000		13,267,569
MMC Corp. Bhd	3,896,000		4,634,466
Resorts World Bhd	19,905,500		23,304,608
Sime Darby Bhd^a	1,501,673		5,452,937
SP Setia Bhd	4,821,300		7,516,066
Tenaga Nasional Bhd	3,152,700		8,931,581
UEM World Bhd	3,896,000		4,268,587
YTL Corp. Bhd	4,480,400		10,799,524
YTL Power International Bhd	298,693		236,561

			140,272,978

MEXICO – 5.61%
Alfa SAB de CV Class A^b	5,050,600		31,194,286
America Movil SAB de CV Series L^b	131,075,000		394,143,405
Axtel SAB de CV Series CPO^a,b	1,225,000		2,704,114
Carso Infraestructura y Construccion SAB de CV Series B1^a,b	3,928,200		3,591,648


Security	Shares	Value
Cemex SAB de CV Series CPO^a,b	55,982,564	$	153,558,622
Consorcio ARA SAB de CV^b	32,979,800		34,246,585
Controladora Comercial Mexicana SA de CV BC Units^b	13,241,100		33,429,197
Corporacion Geo SAB de CV Series B^a,b	6,648,700		20,854,921
Desarrolladora Homex SAB de CV^a,b	1,257,300		12,403,730
Empresas ICA SAB de CV^a,b	8,452,500		50,833,448
Fomento Economico Mexicano SAB de CV BD Units^b	21,338,000		85,027,101
Grupo Carso SA de CV Series A1^b	1,104,141		4,873,619
Grupo Financiero Banorte SAB de CV Series O^b	12,996,256		52,102,397
Grupo Mexico SA de CV Series B^b	13,352,500		93,220,714
Grupo Modelo SAB de CV Series C^b	15,067,598		68,264,796
Grupo Televisa SA Series CPO^b	24,473,500		107,590,879
Industrias Penoles SAB de CV^b	1,225,088		29,495,928
Kimberly-Clark de Mexico SAB de CV Class A^b	8,707,200		35,931,020
Telefonos de Mexico SAB de CV Series L^b	61,580,000		102,094,231
Urbi Desarrollos Urbanos SA de CV^a,b	4,210,400		15,237,623
Wal-Mart de Mexico SAB de CV Series V^b	35,869,500		130,281,820

			1,461,080,084

PERU – 0.61%
Compania de Minas
Buenaventura SA ADR	2,077,718		157,968,900

			157,968,900

PHILIPPINE ISLANDS – 1.46%
Ayala Corp.	4,452,108		47,860,298
Ayala Land Inc.	39,886,200		11,581,931
Bank of the Philippine Islands	28,510,200		39,103,327


6		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 29, 2008


Security	Shares	Value
Filinvest Land Inc.^a	459,743,375	$	12,043,198
Globe Telecom Inc.	563,500		20,609,910
Jollibee Foods Corp.	44,246,600		53,579,226
Manila Electric Co.^a	14,555,852		28,417,455
Megaworld Corp.	330,230,040		20,238,984
Metropolitan Bank & Trust Co.	40		42
Petron Corp.	244,476,000		37,458,327
Philippine Long
Distance Telephone Co.	747,250		53,553,071
SM Investments Corp.	2,353,291		16,719,910
SM Prime Holdings Inc.	169,506,820		38,957,456

			380,123,135
RUSSIA – 8.94%
Comstar United Telesystems GDR	275,665		2,729,084
JSC MMC Norilsk Nickel ADR	7,436,940		218,274,189
LUKOIL SP ADR	3,937,800		292,972,320
Mobile TeleSystems SP ADR	1,102,500		90,471,150
Novolipetsk Steel GDR Reg S	594,125		27,222,808
OAO Gazprom SP ADR Reg S	18,375,508		933,475,806
OAO NOVATEK SP GDR Reg S	589,225		44,898,945
OAO Tatneft SP ADR Reg S	411,600		51,655,800
Polyus Gold SP ADR	735,983		40,479,065
RAO Unified Energy System of Russia GDR Reg S^a	653,376		76,118,304
Rostelecom SP ADR^b	877,103		59,949,990
Sberbank GDR Reg S^b	480,346		182,667,922
Surgutneftegaz SP ADR^b	834,225		38,416,061
Vimpel-Communications SP ADR	5,627,879		195,456,238
VTB Bank OJSC GDR Reg S^a	5,451,250		40,884,375
Wimm-Bill-Dann Foods OJSC ADR	310,458		32,678,809

			2,328,350,866
SOUTH AFRICA – 7.68%
African Bank Investments Ltd.	12,705,527		50,880,023
African Rainbow Minerals Ltd.	305,025		8,002,529
Anglo Platinum Ltd.	517,685		82,657,353
AngloGold Ashanti Ltd.	1,238,475		45,210,003
ArcelorMittal South Africa Ltd.	3,949,400		95,097,030
Aveng Ltd.^b	1,766,090		14,099,339
AVI Ltd.	4,920,907		11,151,982


Security	Shares	Value
Barloworld Ltd.	2,486,884	$	30,420,991
Bidvest Group Ltd.	2,767,321		41,337,974
FirstRand Ltd.	31,980,304		77,004,910
Foschini Ltd.	6,005,006		32,375,064
Gold Fields Ltd.	5,065,375		71,420,017
Grindrod Ltd.	1,969,800		6,112,705
Harmony Gold Mining Co. Ltd.^a	2,552,900		31,623,002
Impala Platinum Holdings Ltd.	4,516,114		190,771,020
Imperial Holdings Ltd.	2,648,079		27,278,165
Investec Ltd.	4,159,352		32,134,471
Kumba Iron Ore Ltd.	455,700		19,774,393
Liberty Group Ltd.	897,296		8,780,991
Metropolitan Holdings Ltd.	10,294,251		19,087,606
MTN Group Ltd.	12,389,993		197,827,641
Murray & Roberts Holdings Ltd.	2,312,800		29,333,814
Nampak Ltd.	8,192,291		19,515,124
Naspers Ltd.	4,216,545		81,001,056
Nedbank Group Ltd.	3,501,385		52,749,695
Network Healthcare Holdings Ltd.^a	19,385,425		23,888,094
Pick’n Pay Stores Ltd.	5,546,075		22,138,167
Pretoria Portland Cement Co. Ltd.	4,453,208		24,542,058
Reunert Ltd.	1,730,298		12,810,998
Sanlam Ltd.	19,562,464		47,230,121
Sappi Ltd.	501,519		6,315,685
Sasol Ltd.	5,122,123		265,466,738
Shoprite Holdings Ltd.	12,785,325		67,086,264
SPAR Group Ltd. (The)	1,969,924		12,619,344
Standard Bank Group Ltd.	9,719,069		123,269,354
Steinhoff International Holdings Ltd.	2,059,225		4,770,119
Telkom South Africa Ltd.	1,483,626		26,936,290
Tiger Brands Ltd.	1,700,684		30,660,336
Truworths International Ltd.	10,204,341		34,832,842
Woolworths Holdings Ltd.	13,798,895		22,067,855

			2,000,281,163
SOUTH KOREA – 12.20%
Daelim Industrial Co. Ltd.	199,100		31,803,418
Doosan Heavy Industries & Construction Co. Ltd.	231,790		34,433,422


SCHEDULE OF INVESTMENTS		7

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 29, 2008


Security	Shares	Value
Hyundai Development Co.	212,800	$	15,500,261
Hyundai Engineering & Construction Co. Inc.	325,410		29,905,631
Hyundai Heavy Industries Co. Ltd.	375,500		152,551,249
Hyundai Merchant Marine Co. Ltd.^a	286,780		12,215,750
Kookmin Bank SP ADR^a	6,641,743		406,673,924
Korea Electric Power Corp. SP ADR	16,064,159		278,070,592
KT Corp. SP ADR^a	8,539,869		207,433,418
LG. Philips LCD Co. Ltd. ADR^a,b	7,496,534		177,367,994
NHN Corp.^a	187,575		42,646,571
POSCO ADR	5,201,350		703,742,655
Samsung Electronics Co. Ltd. GDR^c	2,725,050		798,439,650
Samsung Engineering Co. Ltd.	187,990		20,019,168
Samsung Heavy Industries Co. Ltd.	2,036,070		69,274,731
Shinhan Financial Group Co. Ltd. ADR^a	196,000		20,803,440
SK Telecom Co. Ltd. ADR	7,854,856		175,948,774

			3,176,830,648

TAIWAN – 9.61%
Asia Cement Corp.	3,051,000		5,161,485
AU Optronics Corp. SP ADR^b	17,188,574		327,957,992
Catcher Technology Co. Ltd.	3,201,000		12,062,640
Cheng Shin Rubber Industry Co. Ltd.	3,051,000		5,763,493
Chunghwa Telecom Co. Ltd. SP ADR	23,660,504		580,628,768
CMC Magnetics Corp.^a	8,136,000		2,684,367
Compal Communications Inc.	2,475,000		4,643,377
D-Link Corp.	1,374,400		2,200,640
Epistar Corp.	2,291,438		7,041,456
Evergreen Marine Corp. Ltd.	10,170,000		8,553,130
Far Eastern Textile Ltd.	5,085,000		8,520,233
Foxconn Technology Co. Ltd.	1,068,000		7,116,545
HannStar Display Corp.^a	10,946,988		4,833,459
High Tech Computer Corp.	3,126,000		66,534,304
Hon Hai Precision Industry Co. Ltd.	5,085,000		30,922,853


Security	Shares	Value
Macronix International Co. Ltd.	21,957,000	$	10,049,864
MediaTek Inc.	3,145,000		36,216,076
MiTAC International Corp.	7,119,000		6,240,495
Mosel Vitelic Inc.	10,545,000		8,169,263
Siliconware Precision Industries Co. SP ADR^b,d	43,309,875		354,274,778
Synnex Technology International Corp.	4,068,000		10,290,073
Taiwan Cement Corp.	7,119,000		12,665,211
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR	64,860,770		631,743,900
Tatung Co. Ltd.^a	14,763,000		8,882,154
U-Ming Marine Transport Corp.	2,034,000		5,592,431
Uni-President Enterprises Co.	6,102,000		9,020,262
United Microelectronics Corp. SP ADR^b	87,125,313		278,801,002
Wintek Corp.	9,378,000		9,494,789
Yang Ming Marine Transport Corp.	14,763,000		9,980,485
Yuanta Financial Holding Co. Ltd.^a	38,829,000		35,293,382

			2,501,338,907

THAILAND – 2.21%
Bangkok Bank PCL	7,865,600		33,236,689
Bangkok Expressway PCL	22,250,100		15,481,404
Banpu PCL	2,511,000		38,293,249
Electricity Generating PCL	3,378,700		10,412,514
IRPC PCL	79,537,600		15,162,052
Kasikornbank PCL	15,953,000		45,362,780
Krung Thai Bank PCL	13,707,900		4,529,378
Precious Shipping PCL	6,672,400		5,935,733
PTT Aromatics & Refining PCL^a	17,402,686		23,360,238
PTT Chemical PCL	7,417,968		27,810,015
PTT Exploration & Production PCL	18,795,500		96,142,192
PTT PCL	10,920,100		118,655,257
Ratchaburi Electricity Generating Holding PCL	39,832,400		55,683,101
Siam Cement PCL	2,511,000		17,072,406
Siam City Cement PCL	696,900		5,313,932
Siam Makro PCL^d	13,293,000		41,600,016


8		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 29, 2008


Security	Shares	Value
Thai Airways International PCL	2,498,800	$	2,560,327
Thanachart Capital PCL	19,653,900		9,616,205
True Corp. PCL^a	28,799,400		4,940,961
United Broadcasting Corp. PCL^a,e	5,658,800		3,236,168

			574,404,617

TURKEY – 0.95%
Adana Cimento Sanayi TAS Class A^b	4,487,732		23,214,008
Akbank TAS^b	5,789,524		31,385,377
Akcansa Cimento Sanayi ve Ticaret AS^b	619,973		2,924,766
Arcelik AS^b	895,578		5,188,534
Dogan Yayin Holding AS^a,b	2,743,533		7,084,480
Eregli Demir ve Celik Fabrikalari TAS^b	3,678,785		26,489,077
Hurriyet Gazetecilik ve Matbaacilik AS^a,b	1,869,513		4,518,088
Migros Turk TAS^b	760,573		12,211,967
Petkim Petrokimya Holding AS^a,b	1,474,900		8,911,045
Tofas Turk Otomobil Fabrikasi AS^b	6,794,894		32,055,366
Trakya Cam Sanayii AS^b	292,378		580,764
Tupras-Turkiye Petrol Rafinerileri AS^b	953,084		24,650,424
Turk Sise ve Cam Fabrikalari AS^b	8,569,807		13,476,212
Turkiye Garanti Bankasi AS^b	5,243,340		31,679,191
Yapi ve Kredi Bankasi AS^a,b	10,223,172		23,352,745

			247,722,044


TOTAL COMMON STOCKS (Cost: $ 21,963,675,005)			23,308,183,245

PREFERRED STOCKS – 9.49%

BRAZIL – 9.49%
Aracruz Celulose SA SP ADR	812,593		58,864,237
Banco Bradesco SA SP ADR	12,415,375		389,718,621
Banco Itau Holding Financiera SA ADR	15,243,900		386,280,426


Security	Shares	Value
Brasil Telecom Participacoes SA ADR	913,945	$	63,153,600
Companhia Brasileira de Distribuicao Grupo Pao de Acucar SP ADR^b	1,054,284		45,745,383
Companhia de Bebidas das Americas ADR	1,515,325		123,468,681
Companhia Energetica de Minas Gerais SP ADR	606,398		11,539,754
Companhia Vale do Rio Doce SP ADR	17,213,125		504,688,825
Gerdau SA SP ADR	2,646,585		86,728,590
Net Servicos de Comunicacao SA ADR^a,b	1,837,584		20,103,169
Petroleo Brasileiro SA SP ADR	7,016,800		687,155,224
Tele Norte Leste Participacoes SA ADR	2,303,232		57,649,897
Votorantim Celulose e Papel SA SP ADR	1,128,357		35,498,111

			2,470,594,518


TOTAL PREFERRED STOCKS (Cost: $ 1,825,177,586)			2,470,594,518

EXCHANGE-TRADED FUNDS – 0.45%
iShares MSCI Malaysia Index Fund^b,d	1,099,526		13,777,061
iShares MSCI South Korea Index Fund^d	816,043		46,351,242
iShares MSCI Taiwan Index Fund^b,d	3,768,100		58,141,783


TOTAL EXCHANGE- TRADED FUNDS (Cost: $ 112,540,386)			118,270,086


SCHEDULE OF INVESTMENTS		9

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 29, 2008


Security	Shares	Value
SHORT-TERM INVESTMENTS – 7.34%

MONEY MARKET FUNDS – 7.34%
Barclays Global Investors
Funds Institutional
Money Market Fund,
Institutional Shares
3.59%^d,f	43,515,291	$	43,515,291
BGI Cash Premier Fund LLC
3.63%^d,f,g	1,865,745,492		1,865,745,492

			1,909,260,783

TOTAL SHORT-TERM INVESTMENTS (Cost: $ 1,909,260,783)			1,909,260,783



TOTAL INVESTMENTS IN SECURITIES – 106.82% (Cost: $ 25,810,653,760)			27,806,308,632
Other Assets, Less Liabilities – (6.82)%			(1,775,356,824	)


NET ASSETS – 100.00%		$	26,030,951,808

ADR – American Depositary Receipts

GDR – Global Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

SP GDR – Sponsored Global Depositary Receipts

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Note 2.

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

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

^g	This security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.


10		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 29, 2008


	iShares MSCI Emerging Markets Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	23,387,162,858
Affiliated issuers (Note 2)		2,423,490,902

Total cost of investments	$	25,810,653,760

Investments in securities, at value (including securities on loan^a) (Note 1):
Unaffiliated issuers	$	25,382,902,969
Affiliated issuers (Note 2)		2,423,405,663

Total value of investments		27,806,308,632
Foreign currency, at value^b		25,608,941
Receivables:
Investment securities sold		125,172,721
Due from custodian (Note 4)		19,929,488
Dividends and interest		57,148,892
Capital shares sold		17,651,050

Total Assets		28,051,819,724


LIABILITIES
Payables:
Investment securities purchased		141,201,252
Collateral for securities on loan (Note 5)		1,865,745,492
Investment advisory fees (Note 2)		13,921,172

Total Liabilities		2,020,867,916


NET ASSETS	$	26,030,951,808


Net assets consist of:
Paid-in capital	$	21,567,267,119
Distributions in excess of net investment income		(6,058,929	)
Undistributed net realized gain		2,474,998,963
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		1,994,744,655


NET ASSETS	$	26,030,951,808


Shares outstanding^c		183,750,000


Net asset value per share	$	141.67

^a	Securities on loan with market value of $1,754,722,912. See Note 5.

^b	Cost of foreign currency: $26,277,162.

^c	$0.001 par value, number of shares authorized: 500,000,000.

See notes to financial statements.


FINANCIAL STATEMENTS		11

Statement of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 29, 2008


	iShares MSCI Emerging Markets Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuers^a	$	225,022,736
Dividends from affiliated issuers (Note 2)		2,447,146
Interest from affiliated issuers (Note 2)		1,564,216
Securities lending income from affiliated issuers (Note 2)		11,157,507

Total investment income		240,191,605


EXPENSES
Investment advisory fees (Note 2)		88,996,590
Foreign taxes (Note 1)		37,984

Total expenses		89,034,574
Less investment advisory fees waived (Note 2)		(367,588	)

Net expenses		88,666,986

Net investment income		151,524,619


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(197,218,785	)
Investments in affiliated issuers (Note 2)		38,551,064
In-kind redemptions		2,751,829,475
Foreign currency transactions		(446,648	)

Net realized gain		2,592,715,106

Net change in unrealized appreciation (depreciation) on:
Investments		(2,085,023,130	)
Translation of assets and liabilities in foreign currencies		(1,021,486	)

Net change in unrealized appreciation (depreciation)		(2,086,044,616	)

Net realized and unrealized gain		506,670,490


NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	658,195,109

^a	Net of foreign withholding tax of $9,741,164.

See notes to financial statements.


12		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Emerging Markets Index Fund
	Six months ended February 29, 2008 (Unaudited)			Year ended August 31, 2007
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	151,524,619		$	250,914,401
Net realized gain		2,592,715,106			2,359,691,063
Net change in unrealized appreciation (depreciation)		(2,086,044,616	)		2,303,383,261

Net increase in net assets resulting from operations		658,195,109			4,913,988,725


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(360,643,610	)		(209,458,860	)

Total distributions to shareholders		(360,643,610	)		(209,458,860	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		14,510,632,821			7,873,614,616
Cost of shares redeemed		(6,975,603,644	)		(6,349,153,507	)

Net increase in net assets from capital share transactions		7,535,029,177			1,524,461,109

INCREASE IN NET ASSETS		7,832,580,676			6,228,990,974

NET ASSETS
Beginning of period		18,198,371,132			11,969,380,158

End of period	$	26,030,951,808		$	18,198,371,132

Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(6,058,929	)	$	203,060,062


SHARES ISSUED AND REDEEMED
Shares sold		96,300,000			67,200,000
Shares redeemed		(48,000,000	)		(54,600,000	)

Net increase in shares outstanding		48,300,000			12,600,000

See notes to financial statements.


FINANCIAL STATEMENTS				13

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Emerging Markets Index Fund
	Six months ended Feb. 29, 2008 (Unaudited)			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004			Period from Apr. 7, 2003^ato Aug. 31, 2003
Net asset value, beginning of period	$	134.35		$	97.43		$	77.92		$	53.96		$	45.13		$	33.75


Income from investment operations:
Net investment income^b		0.90			1.91			1.65			1.65			1.13			0.26
Net realized and unrealized gain^c		8.37			36.58			18.85			24.72			7.97			11.12

Total from investment operations		9.27			38.49			20.50			26.37			9.10			11.38


Less distributions from:
Net investment income		(1.95	)		(1.57	)		(0.99	)		(2.41	)		(0.27	)		–

Total distributions		(1.95	)		(1.57	)		(0.99	)		(2.41	)		(0.27	)		–

Net asset value, end of period	$	141.67		$	134.35		$	97.43		$	77.92		$	53.96		$	45.13


Total return		6.78	%^d		39.86	%		26.44	%		46.17	%		20.21	%		33.72	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	26,030,952		$	18,198,371		$	11,969,380		$	7,000,858		$	1,958,596		$	297,846
Ratio of expenses to average net assets prior to waived fees^e		0.72	%		0.74	%		0.77	%		0.78	%		0.77	%		0.78	%
Ratio of expenses to average net assets after waived fees^e		0.72	%		0.74	%		0.77	%		0.77	%		0.76	%		0.78	%
Ratio of expenses to average net assets after waived fees and exclusive of foreign taxes^e		0.72	%		0.74	%		0.75	%		0.74	%		0.74	%		0.72	%
Ratio of net investment income to average net assets^e		1.22	%		1.63	%		1.77	%		2.40	%		2.10	%		1.58	%
Portfolio turnover rate^f		6	%		5	%		12	%		9	%		8	%		10	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

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

^d	Not annualized.

^e	Annualized for periods of less than one year.

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

See notes to financial statements.


14		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

These financial statements relate only to the iShares MSCI Emerging Markets 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 global emerging markets, as measured by the MSCI Emerging Markets Index compiled by MSCI 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 certain emerging markets, 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.

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


NOTES TO FINANCIAL STATEMENTS		15

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, capital gains on investments or currency repatriation. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are disclosed in the Statement of Operations. Foreign taxes payable as of February 29, 2008, if any, are reflected in the Fund’s Statement of Assets and Liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

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


16		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

FEDERAL INCOME TAXES

The Fund is treated as a separate entity for federal income tax purposes. It is the policy of the Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes was required for the six months ended February 29, 2008.

As of August 31, 2007, the tax year-end of the Fund, the Fund had tax basis net capital loss carryforwards of $840,778, $20,296,564, $11,239,258 and $29,973,301 expiring in 2012, 2013, 2014 and 2015, 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.

As of February 29, 2008, the cost of investments for federal income tax purposes was $25,927,451,083. Net unrealized appreciation was $1,878,857,549, of which $3,210,120,255 represented gross unrealized appreciation on securities and $1,331,262,706 represented gross unrealized depreciation on securities.

2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES


NOTES TO FINANCIAL STATEMENTS		17

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

For its investment advisory services to the Fund, BGFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and another iShares Fund in the same advisory fee category, as follows:


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

BGFA voluntarily waived a portion of its advisory fees for the 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.

The 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 29, 2008, the Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.


18		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

For the six months ended February 29, 2008, the Fund had direct investments (exclusive of short-term investments) in issuers of which BGFA is an affiliate or issuers of which the Fund owns 5% or more of the outstanding voting securities as follows:


Name of Affiliated Issuer	Number of Shares Held Beginning of 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	1,100	–	–	1,100	$	13,777,061	$	445,966		$	–
iShares MSCI South Korea Index Fund	602	427	213	816		46,351,242		303,605			4,385,795
iShares MSCI Taiwan Index Fund	3,100	2,139	1,471	3,768		58,141,783		1,481,837			704,381
Siam Makro PCL	9,843	6,950	3,500	13,293		41,600,016		367,926			4,314,611
Siliconware Precision Industries Co. SP ADR	37,664	23,891	18,245	43,310		354,274,778		(152,188	)^a		29,146,277

^a	Prior period dividend income adjustment.

As of February 29, 2008, 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 29, 2008, aggregated $1,622,465,209 and $1,563,040,995, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 29, 2008, aggregated $13,880,635,168 and $6,659,055,912, respectively.

4. CAPITAL SHARE TRANSACTIONS

The consideration for the purchase of Creation Units of the Fund generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes a substantial replication, or a portfolio sampling representation of the securities involved in the MSCI Emerging Markets Index and an amount of cash. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to State Street, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.


NOTES TO FINANCIAL STATEMENTS		19

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

5. LOANS OF PORTFOLIO SECURITIES

6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENT


20		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds

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 S&P North American Natural Resources Sector (IGE)

iShares S&P North American Technology-Multimedia Networking (IGN)

iShares S&P North American Technology- Semiconductors (IGW)

iShares S&P North American Technology-Software (IGV)

iShares S&P North American Technology Sector (IGM)

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. (IYY)

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 FTSE NAREIT Industrial/Office (FIO)

iShares FTSE NAREIT Mortgage REITs (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential (REZ)

iShares FTSE NAREIT Retail (RTL)

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 Infrastructure (IGF)

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 Chile (ECH)

iShares MSCI France (EWQ)

iShares MSCI Germany (EWG)

iShares MSCI Hong Kong (EWH)

iShares MSCI Israel Capped Investable Market (EIS)

iShares MSCI Italy (EWI)

iShares MSCI Japan (EWJ)

iShares MSCI Japan Small Cap (SCJ)

iShares 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 Thailand Investable Market (THD)

iShares MSCI Turkey Investable Market (TUR)

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 iBoxx $ High Yield Corporate (HYG)

iShares Lehman Government/Credit (GBF)

iShares Lehman Intermediate Government/Credit (GVI)

iShares Lehman MBS (MBB)

iShares S&P National Municipal (MUB)

iShares S&P California Municipal (CMF)

iShares S&P New York Municipal (NYF)

iShares JPMorgan USD Emerging Markets (EMB)

iShares Specialty Index Funds

iShares KLD 400 Social (DSI)

iShares KLD Select SocialSM (KLD)

iShares Dow Jones Select Dividend (DVY)

iShares Dow Jones EPAC Select Dividend (IDV)

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

iShares International Index Funds

iShares FTSE Developed Small Cap ex-North America (IFSM)

iShares FTSE EPRA/NAREIT Global Real Estate ex-U.S. (IFGL)

iShares FTSE EPRA/NAREIT North America (IFNA)

iShares FTSE EPRA/NAREIT Europe (IFEU)

iShares FTSE EPRA/NAREIT Asia (IFAS)

iShares MSCI ACWI (ACWI)

iShares MSCI ACWI ex US (ACWX)

iShares MSCI BRIC (BKF)

iShares MSCI EAFE (EFA)

iShares MSCI EAFE Growth (EFG)

iShares MSCI EAFE Value (EFV)

iShares MSCI EAFE Small Cap (SCZ)

iShares MSCI Emerging Markets (EEM)

iShares MSCI EMU (EZU)

iShares MSCI Kokusai (TOK)

iShares MSCI Pacific ex-Japan (EPP)

iShares S&P Asia 50 (AIA)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares S&P World ex-U.S. Property (WPS)


iSHARES FAMILY OF FUNDS		21

The iShares^® Family of Funds (Continued)

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 Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA^®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx^®, J.P. Morgan Securities Inc., KLD Research & Analytics, Inc., MSCI Inc., Morningstar Inc., The NASDAQ Stock Market, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 Index, FTSE NAREIT Residential Index, FTSE NAREIT Retail Index, FTSE NAREIT Mortgage REITs Index or FTSE NAREIT Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and service mark of Xinhua Financial Network Limited. “NAREIT” is a trademark of NAREIT; “EPRA^®” is a trademark of EPRA.

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

This advertising section does not constitute part of the 2008 Semi-Annual Report.

6712-iS-0408


22		2008 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

LOGO

Item 2.

Code of Ethics.

Not applicable to this semi-annual filing.

Item 3.

Audit Committee Financial Expert.

Not applicable to this semi-annual filing.

Item 4.

Principal Accountant Fees and Services.

Not applicable to this semi-annual filing.

Item 5.

Audit Committee of Listed Registrants.

Not applicable to this semi-annual filing.

Item 6.

Schedule of Investments.

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

Item 7.

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

Not applicable to the Registrant.

Item 8:

Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 9.

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

Not applicable to the Registrant.

Item 10.

Submission of Matters to a Vote of Security Holders.

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

Item 11.

Controls and Procedures.

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

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12.

Exhibits.

(a) (1) 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.

SIGNATURES

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


iShares, Inc.

By:		/s/ Michael A. Latham
		Michael A. Latham, President (Principal Executive Officer)
		Date: April 17, 2008

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


By:		/s/ Michael A. Latham
		Michael A. Latham, President (Principal Executive Officer)
		Date: April 17, 2008

By:		/s/ Geoffrey D. Flynn
		Geoffrey D. Flynn, Treasurer and Chief Financial Officer (Principal Financial Officer)
		Date: April 17, 2008