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, 2009

Date of reporting period: February 28, 2009

Item 1. Reports to Stockholders.

2009 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES® MSCI SERIES

FEBRUARY 28, 2009

Would you prefer to receive materials like this electronically? See inside cover for details.

iShares MSCI Austria Investable Market Index Fund

iShares MSCI Belgium Investable Market Index Fund

iShares MSCI EMU Index Fund

iShares MSCI France Index Fund

iShares MSCI Germany Index Fund

iShares MSCI Italy Index Fund

iShares MSCI Netherlands Investable Market Index Fund iShares MSCI Spain Index Fund

iShares MSCI Sweden Index Fund

iShares MSCI Switzerland Index Fund

Shares MSCI United Kingdom Index Fund

iShares

iShares

Dear iShares Shareholder:

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Table of Contents

Fund Performance Overviews	1
Shareholder Expenses	12
Schedules of Investments	14
iShares MSCI Austria Investable Market Index Fund	14
iShares MSCI Belgium Investable Market 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	28
iShares MSCI Netherlands Investable Market Index Fund	30
iShares MSCI Spain Index Fund	32
iShares MSCI Sweden Index Fund	34
iShares MSCI Switzerland Index Fund	36
iShares MSCI United Kingdom Index Fund	38
Financial Statements	41
Financial Highlights	53
Notes to Financial Statements	64
iShares Family of Funds	73

Fund Performance Overview

iSHARES^® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2009

The iShares MSCI Austria Investable Market 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 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 28, 2009, the total return for the Fund was (64.35)%, while the total return for the Index was (65.86)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(68.04)%	(67.73)%	(69.34)%	(5.70)%	(6.01)%	(5.91)%	2.34%	2.29%	1.82%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(68.04)%	(67.73)%	(69.34)%	(25.44)%	(26.66)%	(26.27)%	25.98%	25.40%	19.82%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Financial	21.83	%
Industrial	20.91
Energy	16.25
Communications	15.19
Utilities	8.28
Basic Materials	7.60
Consumer Non-Cyclical	5.19
Consumer Cyclical	3.50
Short-Term and Other Net Assets	1.25
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Telekom Austria AG	15.19	%
OMV AG	14.78
Oesterreichische Elektrizitaetswirtschafts AG Class A	7.50
Erste Group Bank AG	6.58
voestalpine AG	5.61
Andritz AG	4.38
Oesterreichische Post AG	4.33
Intercell AG	3.92
Raiffeisen International Bank Holding AG	3.74
Vienna Insurance Group	3.30
TOTAL	69.33	%

FUND PERFORMANCE OVERVIEWS 1

Fund Performance Overview

iSHARES^® MSCI BELGIUM INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2009

The iShares MSCI Belgium Investable Market 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 28, 2009, the total return for the Fund was (56.21)%, while the total return for the Index was (56.93)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(64.45)%	(64.18)%	(65.79)%	(8.70)%	(8.89)%	(9.60)%	(4.80)%	(4.99)%	(6.62)%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(64.45)%	(64.18)%	(65.79)%	(36.55)%	(37.21)%	(39.64)%	(38.85)%	(40.05)%	(49.58)%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Consumer Non-Cyclical	44.51	%
Financial	15.62
Communications	13.03
Diversified	12.27
Basic Materials	8.98
Industrial	3.34
Consumer Cyclical	1.01
Technology	0.28
Short-Term and Other Net Assets	0.96
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Anheuser-Busch InBev NV	24.98	%
Delhaize Group	8.50
Belgacom SA	8.22
Groupe Bruxelles Lambert SA	7.79
Fortis	5.33
Colruyt SA	4.74
Solvay SA	4.68
UCB SA	4.19
Mobistar SA	3.21
Umicore	2.90
TOTAL	74.54	%

2 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI EMU INDEX FUND

Performance as of February 28, 2009

The iShares MSCI EMU Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the 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 28, 2009, the total return for the Fund was (50.00)%, while the total return for the Index was (49.94)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(55.60)%	(55.70)%	(55.49)%	(3.95)%	(4.34)%	(3.75)%	(4.71)%	(4.82)%	(4.43)%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(55.60)%	(55.70)%	(55.49)%	(18.24)%	(19.88)%	(17.40)%	(33.93)%	(34.64)%	(32.28)%

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (7/31/00), the NAV of the Fund is used as a proxy for the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Financial	19.42	%
Communications	16.16
Consumer Non-Cyclical	15.07
Utilities	11.21
Industrial	10.72
Energy	9.96
Basic Materials	7.35
Consumer Cyclical	6.09
Technology	2.50
Diversified	1.25
Short-Term and Other Net Assets	0.27
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Total SA (France)	5.08	%
Telefonica SA (Spain)	3.91
Sanofi-Aventis (France)	2.74
Eni SpA (Italy)	2.64
Banco Santander SA (Spain)	2.55
E.ON AG (Germany)	2.47
Siemens AG Registered (Germany)	2.24
France Telecom SA (France)	2.06
Bayer AG (Germany)	1.85
Nokia OYJ (Finland)	1.77
TOTAL	27.31	%

FUND PERFORMANCE OVERVIEWS 3

Fund Performance Overview

iSHARES^® MSCI FRANCE INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (47.22)%, while the total return for the Index was (47.16)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(50.83)%	(50.93)%	(50.77)%	(3.51)%	(3.83)%	(3.32)%	(0.61)%	(0.75)%	(0.37)%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(50.83)%	(50.93)%	(50.77)%	(16.37)%	(17.75)%	(15.55)%	(5.96)%	(7.27)%	(3.61)%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Consumer Non-Cyclical	21.31	%
Energy	16.19
Communications	13.93
Financial	13.24
Industrial	11.83
Utilities	8.41
Basic Materials	5.49
Consumer Cyclical	4.98
Diversified	2.25
Technology	2.01
Short-Term and Other Net Assets	0.36
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Total SA	15.42	%
Sanofi-Aventis	8.30
France Telecom SA	6.28
GDF Suez	5.35
Vivendi	4.28
BNP Paribas	4.11
Carrefour SA	3.27
Groupe Danone	3.18
L’Air Liquide SA	2.78
ArcelorMittal	2.59
TOTAL	55.56	%

4 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI GERMANY INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (50.65)%, while the total return for the Index was (50.79)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(54.77)%	(54.46)%	(54.89)%	(1.75)%	(1.92)%	(1.61)%	(1.58)%	(1.60)%	(1.45)%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(54.77)%	(54.46)%	(54.89)%	(8.45)%	(9.26)%	(7.78)%	(14.70)%	(14.90)%	(13.63)%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Financial	16.65	%
Utilities	16.64
Basic Materials	16.12
Industrial	14.53
Consumer Cyclical	14.41
Consumer Non-Cyclical	8.50
Communications	7.43
Technology	4.68
Energy	0.52
Diversified	0.33
Short-Term and Other Net Assets	0.19
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
E.ON AG	10.24	%
Siemens AG Registered	9.23
Bayer AG	7.66
Deutsche Telekom AG Registered	7.21
RWE AG	5.88
Allianz SE Registered	5.23
Muenchener Rueckversicherungs-Gesellschaft AG Registered	5.15
BASF SE	4.99
SAP AG	4.68
Volkswagen AG	4.37
TOTAL	64.64	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI ITALY INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (51.18)%, while the total return for the Index was (51.34)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(57.74)%	(57.95)%	(58.78)%	(7.05)%	(7.42)%	(7.34)%	(3.13)%	(3.26)%	(3.52)%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(57.74)%	(57.95)%	(58.78)%	(30.61)%	(31.99)%	(31.71)%	(27.21)%	(28.21)%	(30.11)%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Financial	36.38	%
Energy	27.07
Utilities	14.50
Communications	7.26
Industrial	5.94
Consumer Non-Cyclical	5.30
Consumer Cyclical	2.87
Diversified	0.29
Short-Term and Other Net Assets	0.39
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Eni SpA	24.46	%
Intesa Sanpaolo SpA	8.62
Enel SpA	7.80
Assicurazioni Generali SpA	7.68
Terna SpA	4.93
UniCredito SpA	4.86
Telecom Italia SpA	4.10
Unione di Banche Italiane ScpA	3.32
Finmeccanica SpA	2.82
Mediobanca SpA	2.66
TOTAL	71.25	%

6 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2009

The iShares MSCI Netherlands Investable Market 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 28, 2009, the total return for the Fund was (50.06)%, while the total return for the Index was (50.07)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(54.28)%	(54.17)%	(54.25)%	(3.91)%	(4.23)%	(3.59)%	(3.90)%	(4.14)%	(2.94)%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(54.28)%	(54.17)%	(54.25)%	(18.08)%	(19.42)%	(16.70)%	(32.81)%	(34.49)%	(25.82)%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Consumer Non-Cyclical	34.68	%
Communications	21.24
Industrial	15.24
Financial	13.04
Basic Materials	8.08
Technology	4.87
Energy	1.91
Diversified	0.61
Consumer Cyclical	0.21
Short-Term and Other Net Assets	0.12
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Unilever NV	17.74	%
Koninklijke KPN NV	12.70
Koninklijke Philips Electronics NV	7.17
Koninklijke Ahold NV	7.03
Akzo Nobel NV	5.62
Reed Elsevier NV	4.91
ASML Holding NV	4.34
ING Groep NV	4.30
TNT NV	3.98
Heineken NV	3.67
TOTAL	71.46	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI SPAIN INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (42.02)%, while the total return for the Index was (43.30)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(48.81)%	(48.63)%	(49.76)%	1.69%	1.39%	1.35%	2.10%	1.86%	1.98%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(48.81)%	(48.63)%	(49.76)%	8.73%	7.16%	6.92%	23.07%	20.25%	21.68%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Financial	34.96	%
Communications	26.03
Utilities	14.41
Industrial	8.26
Energy	5.56
Consumer Cyclical	4.46
Consumer Non-Cyclical	4.00
Technology	1.56
Basic Materials	0.57
Short-Term and Other Net Assets	0.19
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Telefonica SA	25.31	%
Banco Santander SA	17.06
Banco Bilbao Vizcaya Argentaria SA	7.24
Iberdrola SA	4.75
Repsol YPF SA	4.46
Industria de Diseno Textil SA	4.08
Actividades de Construcciones y Servicios SA	3.88
Union Fenosa SA	3.76
Banco Popular Espanol SA	2.63
Red Electrica Corporacion SA	2.40
TOTAL	75.57	%

8 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SWEDEN INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (47.81)%, while the total return for the Index was (47.73)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(54.42)%	(54.32)%	(54.53)%	(3.20)%	(3.53)%	(3.13)%	(0.09)%	(0.37)%	0.61%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(54.42)%	(54.32)%	(54.53)%	(14.99)%	(16.47)%	(14.71)%	(0.87)%	(3.64)%	6.22%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Communications	29.61	%
Industrial	22.42
Financial	18.13
Consumer Cyclical	17.52
Consumer Non-Cyclical	6.64
Basic Materials	4.88
Energy	0.71
Short-Term and Other Net Assets	0.09
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Telefonaktiebolaget LM Ericsson AB Class B	18.51	%
Hennes & Mauritz AB Class B	14.43
Nordea Bank AB	7.85
TeliaSonera AB	6.76
Svenska Handelsbanken AB Class A	4.15
Sandvik AB	4.14
Investor AB Class B	3.95
Volvo AB Class B	3.49
Atlas Copco AB Class A	3.29
Svenska Cellulosa AB Class B	2.76
TOTAL	69.33	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® MSCI SWITZERLAND INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (37.97)%, while the total return for the Index was (39.02)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(43.15)%	(43.40)%	(43.63)%	(0.18)%	(0.49)%	(1.10)%	(0.21)%	(0.49)%	(0.44)%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(43.15)%	(43.40)%	(43.63)%	(0.91)%	(2.43)%	(5.36)%	(2.13)%	(4.77)%	(4.30)%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Consumer Non-Cyclical	58.31	%
Financial	17.17
Basic Materials	8.70
Industrial	8.49
Communications	2.91
Consumer Cyclical	2.64
Technology	0.25
Utilities	0.22
Short-Term and Other Net Assets	1.31
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Nestle SA Registered	20.24	%
Roche Holding AG Genusschein	13.52
Novartis AG Registered	13.46
ABB Ltd. Registered	5.19
Syngenta AG Registered	4.94
Credit Suisse Group AG Registered	4.94
UBS AG Registered	4.42
Zurich Financial Services AG Registered	4.21
Synthes Inc.	3.67
Swisscom AG Registered	2.91
TOTAL	77.50	%

10 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (45.92)%, while the total return for the Index was (46.01)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(51.41)%	(51.48)%	(51.36)%	(5.50)%	(6.02)%	(4.97)%	(3.30)%	(3.49)%	(2.73)%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(51.41)%	(51.48)%	(51.36)%	(24.66)%	(26.67)%	(22.49)%	(28.51)%	(29.93)%	(24.20)%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Consumer Non-Cyclical	29.22	%
Energy	23.77
Financial	14.54
Communications	10.96
Basic Materials	7.26
Utilities	5.48
Industrial	3.62
Consumer Cyclical	3.39
Technology	0.63
Diversified	0.11
Short-Term and Other Net Assets	1.02
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
BP PLC	9.03	%
Vodafone Group PLC	7.07
HSBC Holdings PLC	6.40
GlaxoSmithKline PLC	5.98
Royal Dutch Shell PLC Class A	5.90
Royal Dutch Shell PLC Class B	4.30
British American Tobacco PLC	3.67
BG Group PLC	3.63
AstraZeneca PLC	3.49
Tesco PLC	2.82
TOTAL	52.29	%

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, 2008 to February 28, 2009.

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 (9/1/08)	Ending Account Value (2/28/09)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/08 to 2/28/09)
Austria Investable Market
Actual	$1,000.00	$   356.50	0.55	%	$1.85
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.55		2.76
Belgium Investable Market
Actual	1,000.00	437.90	0.55		1.96
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.55		2.76
EMU
Actual	1,000.00	500.00	0.56		2.08
Hypothetical (5% return before expenses)	1,000.00	1,022.00	0.56		2.81
France
Actual	1,000.00	527.80	0.56		2.12
Hypothetical (5% return before expenses)	1,000.00	1,022.00	0.56		2.81

12 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (9/1/08)	Ending Account Value (2/28/09)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/08 to 2/28/09)
Germany
Actual	$1,000.00	$   493.50	0.55	%	$2.04
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.55		2.76
Italy
Actual	1,000.00	488.20	0.55		2.03
Hypothetical (5% return before expenses)	1,000.00	1022.10	0.55		2.76
Netherlands Investable Market
Actual	1,000.00	499.40	0.55		2.04
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.55		2.76
Spain
Actual	1,000.00	579.80	0.56		2.19
Hypothetical (5% return before expenses)	1,000.00	1,022.00	0.56		2.81
Sweden
Actual	1,000.00	521.90	0.55		2.08
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.55		2.76
Switzerland
Actual	1,000.00	620.30	0.56		2.25
Hypothetical (5% return before expenses)	1,000.00	1,022.00	0.56		2.81
United Kingdom
Actual	1,000.00	540.80	0.56		2.14
Hypothetical (5% return before expenses)	1,000.00	1,022.00	0.56		2.81

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

SHAREHOLDER EXPENSES 13

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 98.75%
AIRLINES – 0.82%
Austrian Airlines AGa,b	98,610	$	479,668
			479,668
AUTO MANUFACTURERS – 0.18%
Rosenbauer International AG	3,648		107,721
			107,721
BANKS – 10.32%
Erste Group Bank AGb	395,978		3,857,334
Raiffeisen International Bank Holding AGb	115,140		2,192,041
			6,049,375
BIOTECHNOLOGY – 3.92%
Intercell AGa	78,261		2,294,045
			2,294,045
BUILDING MATERIALS – 2.49%
Wienerberger AGb	177,758		1,456,162
			1,456,162
COMMERCIAL SERVICES – 0.41%
Kapsch TrafficCom AG	11,913		241,779
			241,779
ELECTRIC – 8.28%
EVN AG	31,056		457,141
Oesterreichische Elektrizitaetswirtschafts AG Class A	141,303		4,395,021
			4,852,162
ELECTRICAL COMPONENTS & EQUIPMENT – 0.98%
Zumtobel AG	69,486		573,629
			573,629
ENGINEERING & CONSTRUCTION – 5.58%
Flughafen Wien AGb	28,785		789,661
Meinl Airports International AGa	164,616		993,085
Strabag SE	113,715		1,486,120
			3,268,866
ENTERTAINMENT – 2.50%
bwin Interactive Entertainment AGa,b	57,696		1,466,269
			1,466,269
ENVIRONMENTAL CONTROL – 0.64%
BWT AGb	23,766		372,169
			372,169

Security	Shares	Value
FOOD – 0.86%
Agrana Beteiligungs AGb	8,307	$	501,139
			501,139
FOREST PRODUCTS & PAPER – 1.99%
Mayr-Melnhof Karton AG	17,955		1,166,868
			1,166,868
INSURANCE – 3.30%
Vienna Insurance Group	85,899		1,932,091
			1,932,091
IRON & STEEL – 5.61%
voestalpine AG	210,786		3,287,464
			3,287,464
MACHINERY – 4.61%
Andritz AG	89,034		2,565,731
A-TEC Industries AGa,b	19,564		134,672
			2,700,403
MACHINERY - CONSTRUCTION & MINING – 0.55%
Palfinger AGb	31,578		323,653
			323,653
MANUFACTURING – 1.73%
RHI AGa	53,751		669,011
Semperit AG Holding	17,100		347,486
			1,016,497
OIL & GAS – 14.78%
OMV AG	327,123		8,662,394
			8,662,394
OIL & GAS SERVICES – 1.47%
Schoeller-Bleckmann Oilfield Equipment AG	31,179		859,692
			859,692
REAL ESTATE – 8.21%
Atrium European Real Estate Ltd.a,b	489,915		871,103
CA Immo International AG	48,280		134,900
CA Immobilien Anlagen AGa,b	212,097		759,634
conwert Immobilien Invest SEa,b	187,872		930,567
ECO Business-Immobilien AGa	62,529		107,210
Immoeast AGa	776,796		799,121
IMMOFINANZ AGa,b	838,014		830,169
Sparkassen Immobilien AGa	150,651		380,755
			4,813,459

14 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
TELECOMMUNICATIONS – 15.19%
Telekom Austria AG	677,274	$	8,902,779
			8,902,779
TRANSPORTATION – 4.33%
Oesterreichische Post AG	77,292		2,534,613
			2,534,613
TOTAL COMMON STOCKS (Cost: $213,885,899)			57,862,897
SHORT-TERM INVESTMENTS – 20.35%
MONEY MARKET FUNDS – 20.35%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	10,172,836		10,172,836
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	1,700,600		1,700,600
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	48,485		48,485
			11,921,921
TOTAL SHORT-TERM INVESTMENTS
(Cost: $11,921,921)			11,921,921
TOTAL INVESTMENTS IN SECURITIES – 119.10%
(Cost: $225,807,820)			69,784,818
Other Assets, Less Liabilities – (19.10)%			(11,192,087	)
NET ASSETS – 100.00%		$	58,592,731

^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 All or a portion of 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 INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.04%
AGRICULTURE – 0.36%
SIPEF NV	9,541	$	224,175
			224,175
APPAREL – 0.41%
Van De Velde NV	7,917		251,375
			251,375
BANKS – 9.52%
Dexia SAa	491,869		1,049,493
Fortis	1,955,093		3,282,613
KBC Group NV	144,130		1,537,456
			5,869,562
BEVERAGES – 24.98%
Anheuser-Busch InBev NV	556,220		15,400,113
			15,400,113
BIOTECHNOLOGY – 0.13%
Devgen NVa,b	17,558		77,156
			77,156
BUILDING MATERIALS – 0.06%
Deceuninck NV	11,793		34,599
			34,599
CHEMICALS – 5.71%
Recticel SA	12,992		40,096
Solvay SA	50,344		2,885,585
Tessenderlo Chemie NV	19,894		590,981
			3,516,662
COMPUTERS – 0.15%
Econocom Group SA	13,648		90,308
			90,308
DIVERSIFIED FINANCIAL SERVICES – 0.19%
KBC Ancora SCA	24,360		115,400
			115,400
ELECTRICAL COMPONENTS & EQUIPMENT – 0.84%
NV Bekaert SA	10,556		519,172
			519,172
ELECTRONICS – 0.71%
Barco NV	9,947		166,253
EVS Broadcast Equipment SA	8,526		268,545
			434,798

Security	Shares	Value
ENGINEERING & CONSTRUCTION – 0.34%
Compagnie d’Entreprises CFE	6,090	$	153,532
Hamon & Cie (International) SA	2,436		58,783
			212,315
ENTERTAINMENT – 0.15%
Kinepolisa	4,466		90,753
			90,753
FOOD – 13.24%
Colruyt SA	12,789		2,923,681
Delhaize Group	89,726		5,239,150
			8,162,831
HEALTH CARE - PRODUCTS – 0.21%
Ion Beam Applications SAa	16,849		132,460
			132,460
HOLDING COMPANIES - DIVERSIFIED – 12.27%
Ackermans & van Haaren NV	21,112		986,729
Compagnie Nationale a Portefeuille SA	38,976		1,635,034
Groupe Bruxelles Lambert SA	74,095		4,799,322
Sofina SA	2,322		139,638
			7,560,723
INVESTMENT COMPANIES – 0.37%
RHJ International SAb	54,810		226,237
			226,237
MANUFACTURING – 0.43%
AGFA-Gevaert NVb	116,116		266,926
			266,926
MEDIA – 0.05%
Roularta Media Group NV	2,292		32,021
			32,021
MINING – 3.27%
Nyrstar NV	73,080		227,397
Umicore	116,928		1,789,478
			2,016,875
PHARMACEUTICALS – 5.59%
Arseus NV	23,548		171,966
Omega Pharma SA	17,661		474,402
ThromboGenics NVb	18,270		214,635
UCB SA	92,771		2,583,876
			3,444,879

16 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BELGIUM INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
REAL ESTATE – 0.29%
Atenor Group SA	4,060	$	179,185
			179,185
REAL ESTATE INVESTMENT TRUSTS – 4.30%
Befimmo SCA	11,165		1,006,788
Cofinimmo SA	9,744		1,058,094
Intervest Offices NV	5,887		157,013
Leasinvest Real Estate SCA	1,218		83,472
Warehouses De Pauw SCA	5,481		224,845
Wereldhave Belgium NV	1,827		121,820
			2,652,032
RETAIL – 0.45%
SA D’Ieteren NV	2,233		276,682
			276,682
SEMICONDUCTORS – 0.13%
Melexis NV	15,631		82,386
			82,386
TELECOMMUNICATIONS – 12.98%
Belgacom SA	154,077		5,065,319
Mobistar SA	31,871		1,979,767
Option NVa,b	27,202		48,713
Telenet Group Holding NVa,b	51,765		908,584
			8,002,383
TRANSPORTATION – 0.96%
Compagnie Maritime Belge SA	11,977		214,633
Euronav SA	20,097		254,732
Exmar NV	12,789		121,820
			591,185
VENTURE CAPITAL – 0.95%
GIMV NV	14,616		584,736
			584,736
TOTAL COMMON STOCKS (Cost: $147,453,599)			61,047,929
RIGHTS – 0.00%
BANKS – 0.00%
Fortisa,b,c	1,513,303		192
			192
TOTAL RIGHTS (Cost: $0)			192

Security	Shares	Value
SHORT-TERM INVESTMENTS – 1.48%
MONEY MARKET FUNDS – 1.48%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%d,e,f	729,811	$	729,811
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%d,e,f	122,003		122,003
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%d,e	63,951		63,951
			915,765
TOTAL SHORT-TERM INVESTMENTS
(Cost: $915,765)			915,765
TOTAL INVESTMENTS IN SECURITIES – 100.52%
(Cost: $148,369,364)			61,963,886
Other Assets, Less Liabilities – (0.52)%			(322,530	)
NET ASSETS – 100.00%		$	61,641,356

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

^b Non-income earning security.

^c Security valued using Level 3 inputs. 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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 98.31%
AUSTRIA – 0.94%
Erste Group Bank AGa	53,189	$	518,129
Oesterreichische Elektrizitaetswirtschafts AG Class A	22,719		706,641
OMV AG	46,728		1,237,383
Raiffeisen International Bank Holding AGa	15,340		292,044
Strabag SE	12,744		166,549
Telekom Austria AG	87,467		1,149,755
Vienna Insurance Group	9,734		218,943
voestalpine AG	32,568		507,937
Wienerberger AGa	24,309		199,135
			4,996,516
BELGIUM – 2.99%
Anheuser-Busch InBev NV	191,632		5,305,732
Belgacom SA	42,015		1,381,253
Colruyt SA	4,956		1,132,986
Compagnie Nationale a Portefeuille SA	13,022		546,270
Delhaize Group	27,140		1,584,719
Dexia SAa	165,200		352,485
Fortis	591,180		992,595
Groupe Bruxelles Lambert SA	23,600		1,528,632
KBC Group NV	44,132		470,763
Mobistar SA	5,713		354,881
Solvay SA	16,994		974,051
UCB SA	26,795		746,300
Umicore	36,816		563,436
			15,934,103
FINLAND – 3.71%
Elisa OYJ Class A	35,401		456,355
Fortum OYJ	119,652		2,072,789
Kesko OYJ Class B	17,637		379,454
Kone OYJ Class B	44,840		933,395
Metso OYJ	32,305		317,154
Neste Oil OYJ	34,928		438,723
Nokia OYJ	989,548		9,450,951
Nokian Renkaat OYJ	29,736		354,247
Orion OYJ Class B	21,952		342,089
Outokumpu OYJ	33,060		338,002

Security	Shares	Value
Pohjola Bank PLC Class A	32,097	$	228,690
Rautaruukki OYJ	22,424		375,931
Sampo OYJ Class A	118,001		1,564,613
Sanoma OYJ	22,766		253,864
Stora Enso OYJ Class R	160,721		675,650
UPM-Kymmene OYJ	148,924		1,061,081
Wartsila OYJ Class B	23,364		540,057
			19,783,045
FRANCE – 32.93%
Accor SAa	55,696		2,011,045
Aeroports de Paris	7,789		377,791
Air France-KLM	34,220		316,397
Alcatel-Lucentb	595,192		808,838
ALSTOM	58,064		2,786,055
ArcelorMittal	233,168		4,575,286
Atos Origin SA	18,644		456,172
AXA	412,764		3,846,282
BioMerieux SA	3,068		234,239
BNP Paribas	219,952		7,260,307
Bouygues SA	63,012		1,824,647
Bureau Veritas SA	10,623		388,967
Cap Gemini SA	36,580		1,067,150
Carrefour SA	168,740		5,738,103
Casino Guichard-Perrachon SA	11,564		724,943
Christian Dior SA	12,980		655,866
CNP Assurances SA	10,148		658,601
Compagnie de Saint-Gobaina	75,520		1,757,148
Compagnie Generale de Geophysique-Veritasb	38,468		426,027
Compagnie Generale des Etablissements Michelin Class B	38,704		1,270,437
Credit Agricole SA	239,540		2,369,934
Dassault Systemes SA	16,048		563,352
EDP Renovaveis SAb	55,932		413,432
Eiffage SA	9,440		347,569
Electricite de France	54,053		2,121,972
Eramet	1,658		243,245
Essilor International SAa	52,864		1,839,634
Eurazeo	5,192		122,419
European Aeronautic Defence and Space Co.a	88,264		1,307,082
Eutelsat Communications	17,396		360,902

18 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2009

Security	Shares	Value
France Telecom SA	485,924	$	10,991,402
GDF Suez	291,460		9,361,568
Gecina SA	4,956		220,334
Groupe Danone	116,348		5,593,010
Hermes Internationala	15,104		1,288,127
Icade	5,429		402,674
Iliad SA	4,017		320,648
Imerys SA	7,788		261,819
Ipsen SA	5,428		208,090
JCDecaux SAa	16,292		210,848
Klepierre	22,172		456,185
Lafarge SA	32,804		1,428,615
Lagardere SCA	30,689		1,007,739
L’Air Liquide SA	66,788		4,933,370
Legrand SA	23,128		350,282
L’Oreal SA	65,372		4,260,879
LVMH Moet Hennessy Louis Vuitton SA	64,900		3,740,503
M6-Metropole Television	17,580		231,648
Natixis	269,322		376,258
Neopost SA	7,830		574,195
PagesJaunes SA	30,248		258,773
Pernod Ricard SAa	43,074		2,380,811
PPR SA	20,296		1,224,404
PSA Peugeot Citroen SA	37,760		654,854
Publicis Groupe SA	35,581		835,331
Renault SA	46,964		687,427
Safran SA	52,625		540,706
Sanofi-Aventis	280,604		14,581,333
Schneider Electric SA	59,472		3,610,449
SCOR SE	47,359		949,140
SES SA	77,408		1,437,322
Societe BIC	5,906		290,735
Societe des Autoroutes Paris-Rhin-Rhone	5,656		308,886
Societe Generale	124,372		3,941,858
Societe Television Francaise 1a	31,628		258,649
Sodexo	28,084		1,302,955
STMicroelectronics NV	183,372		814,422
Suez Environnement SAb	71,272		1,050,926
Technip SA	27,376		901,210
Thales SA	25,748		1,048,238

Security	Shares	Value
Total SA	568,760	$	27,073,814
Unibail-Rodamco	22,657		2,884,315
Valeo SA	21,724		273,147
Vallourec SA	14,396		1,142,362
Veolia Environnement	99,120		2,159,598
Vinci SA	110,212		3,603,650
Vivendi	312,464		7,526,164
Wendel	7,552		191,445
Zodiac SA	11,800		360,727
			175,385,687
GERMANY – 23.52%
Adidas AG	55,224		1,613,858
Allianz SE Registered	120,596		8,214,129
BASF SE	248,036		6,917,798
Bayer AG	203,904		9,861,512
Bayerische Motoren Werke AG	89,444		2,243,567
Beiersdorf AG	23,836		998,703
Celesio AG	22,420		466,982
Commerzbank AGa	184,552		653,949
Daimler AG Registered	231,280		5,290,206
Deutsche Bank AG Registered	144,432		3,811,797
Deutsche Boerse AG	52,392		2,420,742
Deutsche Lufthansa AG Registered	62,776		693,639
Deutsche Post AG Registered	225,616		2,189,193
Deutsche Postbank AG	24,308		271,368
Deutsche Telekom AG Registered	748,828		9,096,784
E.ON AG	507,164		13,146,563
Fraport AG	9,443		296,229
Fresenius Medical Care AG & Co. KGaA	49,560		2,045,040
Fresenius SE	6,844		312,920
GEA Group AG	41,706		452,882
Hamburger Hafen und Logistik AG	7,232		165,146
Hannover Rueckversicherung AG Registered	17,817		649,664
HeidelbergCement AGa	7,142		190,485
Henkel AG & Co. KGaA	34,531		746,431
Hochtief AG	11,564		323,111
K+S AG	39,648		1,789,111
Linde AG	35,442		2,294,768
MAN AG	28,084		1,144,232
Merck KGaA	17,717		1,337,938
METRO AG	29,264		855,578

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2009

Security	Shares	Value
Muenchener Rueckversicherungs- Gesellschaft AG Registered	55,932	$	6,887,693
Puma AG	1,652		250,768
Q-Cells SEa,b	16,284		272,789
QIAGEN NVb	49,324		816,251
RWE AG	118,708		7,533,732
Salzgitter AG	10,620		666,708
SAP AGa	231,280		7,494,704
Siemens AG Registered	232,696		11,918,949
SolarWorld AG	23,130		404,511
Suedzucker AG	14,632		253,849
ThyssenKrupp AG	95,816		1,728,014
TUI AG	65,137		368,550
United Internet AG Registered	32,806		232,492
Volkswagen AG	23,836		5,691,307
Wacker Chemie AG	4,012		253,498
			125,268,140
GREECE – 1.11%
Coca-Cola Hellenic Bottling Co. SA ADR	104,020		1,225,356
Hellenic Telecommunications Organization SA SP ADR	382,520		2,409,876
National Bank of Greece SA ADR	990,299		2,257,882
			5,893,114
IRELAND – 0.91%
Anglo Irish Bank Corp. Ltd.c	446,666		–
CRH PLC	145,376		3,028,011
Elan Corp. PLCb	125,080		822,884
Kerry Group PLC Class A	39,884		850,999
Ryanair Holdings PLCb	43,520		163,883
			4,865,777
ITALY – 10.27%
A2A SpA	321,451		465,415
ACEA SpA	20,296		254,676
Alleanza Assicurazioni SpA	105,551		526,836
Assicurazioni Generali SpA	278,480		4,215,908
Atlantia SpA	67,906		890,901
Autogrill SpA	49,091		237,390
Banca Carige SpA	219,876		593,414
Banca Monte dei Paschi di Siena SpA	657,420		819,092
Banca Popolare di Milano Scrl	114,460		463,730

Security	Shares	Value
Banco Popolare SpA	182,514	$	702,939
Bulgari SpA	39,169		159,811
Enel SpA	1,148,612		5,754,945
Eni SpA	697,144		14,042,567
Fiat SpA	184,316		833,948
Finmeccanica SpA	111,628		1,433,326
Fondiaria-Sai SpA	12,272		143,703
IFIL Investments SpA	87,792		167,362
Intesa Sanpaolo SpA	2,083,408		5,122,719
Italcementi SpA	22,195		199,717
Lottomatica SpA	25,807		416,257
Luxottica Group SpA	32,386		427,360
Mediaset SpA	188,098		841,504
Mediobanca SpA	137,824		1,123,778
Mediolanum SpA	50,593		169,635
Parmalat SpA	448,647		834,763
Pirelli & C. SpA	696,915		150,912
Prysmian SpA	23,746		196,785
Saipem SpA	70,564		1,102,324
Saras SpA	78,042		227,970
Snam Rete Gas SpA	226,015		1,125,955
Telecom Italia SpA	2,582,312		3,169,797
Tenaris SA	124,882		1,085,661
Terna SpA	353,294		1,103,805
UniCredito SpA	3,033,072		3,890,675
Unione di Banche Italiane ScpA	170,628		1,625,296
Unipol Gruppo Finanziario SpA	175,591		158,337
			54,679,213
NETHERLANDS – 7.48%
Aegon NV	362,732		1,326,320
Akzo Nobel NV	63,956		2,269,085
ASML Holding NV	112,336		1,742,029
Corio NV	13,225		525,644
Fugro NV CVA	16,284		424,694
Heineken Holding NV	24,544		572,476
Heineken NV	62,304		1,683,078
ING Groep NV	521,324		2,427,286
Koninklijke Ahold NV	317,892		3,577,125
Koninklijke Boskalis Westminster NV	13,452		259,944
Koninklijke DSM NV	36,470		843,927
Koninklijke KPN NV	463,740		6,004,580

20 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2009

Security	Shares	Value
Koninklijke Philips Electronics NV	259,836	$	4,202,610
Randstad Holding NV	26,911		396,298
Reed Elsevier NV	169,212		1,904,942
SBM Offshore NV	39,884		529,595
SNS REAAL NV	25,252		95,572
TNT NV	96,288		1,405,730
Unilever NV	436,600		8,456,183
Wolters Kluwer NV	74,340		1,188,691
			39,835,809
PORTUGAL – 1.05%
Banco Comercial Portugues SA Registeredb	613,600		498,754
Banco Espirito Santo SA Registered	71,344		420,886
BRISA - Auto-estradas de Portugal SA	97,940		579,651
CIMPOR - Cimentos de Portugal SGPS SAa	96,796		379,872
Energias de Portugal SA	476,484		1,518,948
Galp Energia SGPS SA Class B	51,846		576,161
Jeronimo Martins SGPS SA	62,695		257,191
Portugal Telecom SGPS SA Registered	142,072		1,163,829
Zon Multimedia - Servicos de Telecomunicacoes e Multimedia SGPS SA	43,425		208,474
			5,603,766
SPAIN – 13.40%
Abertis Infraestructuras SA	74,815		1,047,107
Acciona SA	7,788		777,444
Acerinox SA	39,181		453,828
Actividades de Construcciones y Servicios SAa	51,212		2,048,817
Banco Bilbao Vizcaya Argentaria SA	966,420		7,106,656
Banco de Sabadell SAa	256,296		1,067,669
Banco de Valencia SA	58,292		511,573
Banco Popular Espanol SAa	220,424		1,058,209
Banco Santander SA	2,182,292		13,580,938
Bankinter SAa	72,924		602,011
Cintra Concesiones de Infraestructuras de Transporte SAa	67,370		321,718
Criteria CaixaCorp SA	235,056		662,743

Security	Shares	Value
Enagas SA	49,163	$	796,728
Fomento de Construcciones y Contratas SA	12,339		320,162
Gamesa Corporacion Tecnologica SA	52,628		706,501
Gas Natural SDG SA	29,264		531,856
Gestevision Telecinco SA	33,040		237,927
Grifols SA	34,077		541,426
Grupo Ferrovial SAa	16,520		408,085
Iberdrola Renovables SAb	225,380		921,705
Iberdrola SA	931,964		6,154,933
Iberia Lineas Aereas de Espana SA	116,348		270,415
Indra Sistemas SAa	29,444		540,363
Industria de Diseno Textil SA	57,112		2,170,975
Mapfre SAa	191,748		394,518
Red Electrica Corporacion SA	30,208		1,226,167
Repsol YPF SA	199,184		3,091,338
Sacyr Vallehermoso SAa	21,854		153,489
Telefonica SA	1,115,572		20,841,602
Union Fenosa SA	99,120		2,249,607
Zardoya Otis SAa	31,154		540,883
			71,337,393
TOTAL COMMON STOCKS (Cost: $1,213,404,638)			523,582,563
PREFERRED STOCKS – 1.40%
GERMANY – 0.99%
Bayerische Motoren Werke AG	15,354		232,834
Fresenius SE	20,768		1,055,056
Henkel AG & Co. KGaA	48,002		1,137,606
Porsche Automobil Holding SE	23,600		978,025
RWE AG	10,556		586,407
Volkswagen AG	29,028		1,313,203
			5,303,131
ITALY – 0.41%
Intesa Sanpaolo SpA RNC	240,486		404,388
Italcementi SpA RNC	27,151		143,278
Telecom Italia SpA RNC	1,506,613		1,450,413
Unipol Gruppo Finanziario SpA	234,123		163,541
			2,161,620
TOTAL PREFERRED STOCKS (Cost: $20,541,799)			7,464,751

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2009

Security	Shares	Value
RIGHTS – 0.00%
BELGIUM – 0.00%
Fortisa,b,c	619,476	$	78
			78
TOTAL RIGHTS (Cost: $0)			78
WARRANTS – 0.02%
FRANCE – 0.02%
Compagnie de Saint-Gobain (Expires 3/6/09)a,b	79,040		116,446
			116,446
TOTAL WARRANTS (Cost: $0)			116,446
SHORT-TERM INVESTMENTS – 3.05%
MONEY MARKET FUNDS – 3.05%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%d,e,f	13,856,888		13,856,888
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%d,e,f	2,316,466		2,316,466
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%d,e	55,224		55,224
			16,228,578
TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,228,578)			16,228,578
TOTAL INVESTMENTS IN SECURITIES – 102.78% (Cost: $1,250,175,015)			547,392,416
Other Assets, Less Liabilities – (2.78)%			(14,809,279	)
NET ASSETS – 100.00%		$	532,583,137

ADR – American Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

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

^b Non-income earning security.

^c Security valued using Level 3 inputs. 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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

22 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.58%
ADVERTISING – 0.75%
JCDecaux SAa	10,431	$	134,996
PagesJaunes SA	20,559		175,883
Publicis Groupe SA	20,196		474,139
			785,018
AEROSPACE & DEFENSE – 1.77%
European Aeronautic Defence and Space Co.a	51,810		767,243
Safran SA	29,799		306,176
Thales SA	14,124		575,009
Zodiac SA	6,699		204,789
			1,853,217
AIRLINES – 0.19%
Air France-KLM	21,714		200,767
			200,767
APPAREL – 0.70%
Hermes Internationala	8,547		728,921
			728,921
AUTO MANUFACTURERS – 0.81%
PSA Peugeot Citroen SA	24,123		418,354
Renault SA	29,271		428,449
			846,803
AUTO PARTS & EQUIPMENT – 0.87%
Compagnie Generale des Etablissements Michelin Class B	23,067		757,161
Valeo SA	12,215		153,585
			910,746
BANKS – 7.89%
BNP Paribas	130,218		4,298,314
Credit Agricole SA	141,174		1,396,732
Natixis	158,004		220,740
Societe Generale	73,887		2,341,782
			8,257,568
BEVERAGES – 1.38%
Pernod Ricard SA	26,136		1,444,604
			1,444,604

Security	Shares	Value
BUILDING MATERIALS – 1.99%
Compagnie de Saint-Gobaina	45,639	$	1,061,897
Imerys SA	4,422		148,660
Lafarge SA	20,064		873,787
			2,084,344
CHEMICALS – 2.78%
L’Air Liquide SA	39,336		2,905,597
			2,905,597
COMMERCIAL SERVICES – 0.39%
Bureau Veritas SA	5,874		215,080
Societe des Autoroutes Paris-Rhin-Rhone	3,630		198,242
			413,322
COMPUTERS – 0.87%
Atos Origin SA	11,022		269,681
Cap Gemini SA	22,011		642,128
			911,809
COSMETICS & PERSONAL CARE – 2.81%
Christian Dior SA	8,745		441,876
L’Oreal SA	38,346		2,499,353
			2,941,229
ELECTRIC – 1.20%
Electricite de France	31,911		1,252,738
			1,252,738
ELECTRICAL COMPONENTS & EQUIPMENT – 0.20%
Legrand SA	14,058		212,913
			212,913
ENGINEERING & CONSTRUCTION – 3.57%
Aeroports de Paris	4,686		227,286
Bouygues SA	38,016		1,100,835
Eiffage SA	5,907		217,488
Vinci SA	66,957		2,189,322
			3,734,931
FOOD – 6.87%
Carrefour SA	100,650		3,422,662
Casino Guichard-Perrachon SA	6,930		434,439
Groupe Danone	69,300		3,331,347
			7,188,448

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2009

Security	Shares	Value
FOOD SERVICE – 0.67%
Sodexo	15,015	$	696,620
			696,620
GAS – 5.35%
GDF Suez	174,174		5,594,393
			5,594,393
HAND & MACHINE TOOLS – 2.05%
Schneider Electric SA	35,244		2,139,606
			2,139,606
HEALTH CARE - PRODUCTS – 1.07%
Essilor International SAa	32,175		1,119,670
			1,119,670
HEALTH CARE - SERVICES – 0.15%
BioMerieux SA	2,046		156,210
			156,210
HOLDING COMPANIES - DIVERSIFIED – 2.25%
LVMH Moet Hennessy Louis Vuitton SA	38,940		2,244,302
Wendel	4,356		110,425
			2,354,727
HOUSEHOLD PRODUCTS & WARES – 0.20%
Societe BIC	4,224		207,935
			207,935
INSURANCE – 3.09%
AXA	246,213		2,294,301
CNP Assurances SA	5,940		385,503
SCOR SE	27,654		554,225
			3,234,029
INTERNET – 0.19%
Iliad SA	2,508		200,195
			200,195
INVESTMENT COMPANIES – 0.09%
Eurazeo	3,993		94,149
			94,149
IRON & STEEL – 2.59%
ArcelorMittal	138,138		2,710,581
			2,710,581
LODGING – 1.04%
Accor SAa	30,261		1,092,650
			1,092,650

Security	Shares	Value
MACHINERY – 1.55%
ALSTOM	33,859	$	1,624,639
			1,624,639
MEDIA – 5.15%
Lagardere SCA	18,876		619,834
M6-Metropole Television	10,362		136,538
Societe Television Francaise 1	18,942		154,905
Vivendi	185,724		4,473,441
			5,384,718
MEDICAL - DRUGS – 0.14%
Ipsen SA	3,696		141,692
			141,692
METAL FABRICATE & HARDWARE – 0.64%
Vallourec SA	8,448		670,372
			670,372
MINING – 0.12%
Eramet	825		121,036
			121,036
OFFICE & BUSINESS EQUIPMENT – 0.34%
Neopost SA	4,917		360,577
			360,577
OIL & GAS – 15.67%
Compagnie Generale de Geophysique-Veritasb	23,100		255,829
Total SA	338,910		16,132,616
			16,388,445
OIL & GAS SERVICES – 0.52%
Technip SA	16,434		541,002
			541,002
PHARMACEUTICALS – 8.30%
Sanofi-Aventis	167,079		8,682,109
			8,682,109
REAL ESTATE – 1.95%
Gecina SA	2,409		107,099
Klepierre	13,398		275,661
Unibail-Rodamco	13,002		1,655,200
			2,037,960
REAL ESTATE INVESTMENT TRUSTS – 0.22%
Icade	3,135		232,526
			232,526

24 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2009

Security	Shares	Value
RETAIL – 0.70%
PPR SA	12,078	$	728,634
			728,634
SEMICONDUCTORS – 0.46%
STMicroelectronics NV	107,844		478,975
			478,975
SOFTWARE – 0.34%
Dassault Systemes SA	10,197		357,957
			357,957
TELECOMMUNICATIONS – 7.84%
Alcatel-Lucentb	367,785		499,803
Eutelsat Communications	14,124		293,020
France Telecom SA	290,730		6,576,194
SES SA	45,012		835,789
			8,204,806
WATER – 1.86%
Suez Environnement SAb	42,933		633,059
Veolia Environnement	60,093		1,309,289
			1,942,348
TOTAL COMMON STOCKS (Cost: $252,980,039)			104,171,536
WARRANTS – 0.06%
BUILDING MATERIALS – 0.06%
Compagnie de Saint-Gobain (Expires 3/6/09)a,b	44,576		65,672
			65,672
TOTAL WARRANTS (Cost: $0)			65,672
SHORT-TERM INVESTMENTS – 3.30%
MONEY MARKET FUNDS – 3.30%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	2,940,594		2,940,594
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	491,581		491,581

Security	Shares	Value
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	23,847	$	23,847
			3,456,022
TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,456,022)			3,456,022
TOTAL INVESTMENTS IN SECURITIES – 102.94% (Cost: $256,436,061)			107,693,230
Other Assets, Less Liabilities – (2.94)%			(3,075,574	)
NET ASSETS – 100.00%		$	104,617,656

^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 All or a portion of 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 28, 2009

Security	Shares	Value
COMMON STOCKS – 95.57%
AIRLINES – 0.59%
Deutsche Lufthansa AG Registered	150,834	$	1,666,630
			1,666,630
APPAREL – 1.51%
Adidas AG	121,647		3,554,994
Puma AG	4,416		670,333
			4,225,327
AUTO MANUFACTURERS – 10.13%
Bayerische Motoren Werke AG	189,405		4,750,938
Daimler AG Registered	497,973		11,390,435
Volkswagen AG	51,267		12,240,991
			28,382,364
BANKS – 3.69%
Commerzbank AGa	404,271		1,432,510
Deutsche Bank AG Registereda	316,179		8,344,482
Deutsche Postbank AG	50,784		566,939
			10,343,931
BIOTECHNOLOGY – 0.64%
QIAGEN NVb	107,985		1,787,017
			1,787,017
BUILDING MATERIALS – 0.16%
HeidelbergCement AGa	16,422		437,992
			437,992
CHEMICALS – 14.27%
BASF SE	501,768		13,994,459
Bayer AG	443,670		21,457,436
K+S AG	87,009		3,926,270
Wacker Chemie AG	9,660		610,367
			39,988,532
COMMERCIAL SERVICES – 0.14%
Hamburger Hafen und Logistik AG	17,388		397,064
			397,064
COSMETICS & PERSONAL CARE – 0.87%
Beiersdorf AG	58,236		2,440,027
			2,440,027
DIVERSIFIED FINANCIAL SERVICES – 1.88%
Deutsche Boerse AG	113,781		5,257,185
			5,257,185

Security	Shares	Value
ELECTRIC – 16.12%
E.ON AG	1,107,243	$	28,701,644
RWE AG	259,509		16,469,582
			45,171,226
ENERGY - ALTERNATE SOURCES – 0.52%
Q-Cells SEa,b	38,157		639,204
SolarWorld AG	47,196		825,391
			1,464,595
ENGINEERING & CONSTRUCTION – 2.49%
Fraport AG	26,289		824,692
Hochtief AG	24,633		688,273
Linde AG	84,318		5,459,350
			6,972,315
FOOD – 1.01%
METRO AG	70,470		2,060,300
Suedzucker AG	44,160		766,127
			2,826,427
HEALTH CARE - PRODUCTS – 2.00%
Fresenius Medical Care AG & Co. KGaA	116,403		4,803,245
Fresenius SE	17,595		804,475
			5,607,720
HOLDING COMPANIES - DIVERSIFIED – 0.33%
GEA Group AG	86,250		936,582
			936,582
HOUSEHOLD PRODUCTS & WARES – 0.65%
Henkel AG & Co. KGaA	84,939		1,836,063
			1,836,063
INSURANCE – 11.08%
Allianz SE Registered	215,280		14,663,320
Hannover Rueckversicherung AG Registered	54,027		1,969,994
Muenchener Rueckversicherungs- Gesellschaft AG Registered	117,162		14,427,803
			31,061,117
INTERNET – 0.22%
United Internet AG Registered	88,941		630,314
			630,314

26 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2009

Security	Shares	Value
IRON & STEEL – 1.85%
Salzgitter AG	22,701	$	1,425,136
ThyssenKrupp AG	209,070		3,770,517
			5,195,653
LEISURE TIME – 0.28%
TUI AG	136,413		771,835
			771,835
MACHINERY - DIVERSIFIED – 0.91%
MAN AG	62,514		2,547,021
			2,547,021
MANUFACTURING – 9.23%
Siemens AG Registered	504,942		25,863,693
			25,863,693
PHARMACEUTICALS – 1.37%
Celesio AG	48,576		1,011,781
Merck KGaA	37,536		2,834,613
			3,846,394
SOFTWARE – 4.68%
SAP AGa	404,823		13,118,421
			13,118,421
TELECOMMUNICATIONS – 7.21%
Deutsche Telekom AG Registered	1,664,280		20,217,720
			20,217,720
TRANSPORTATION – 1.74%
Deutsche Post AG Registered	502,113		4,872,094
			4,872,094
TOTAL COMMON STOCKS (Cost: $621,390,146)			267,865,259
PREFERRED STOCKS – 4.24%
AUTO MANUFACTURERS – 1.90%
Bayerische Motoren Werke AG	32,706		495,967
Porsche Automobil Holding SE	49,611		2,055,966
Volkswagen AG	61,272		2,771,895
			5,323,828
ELECTRIC – 0.52%
RWE AG	26,427		1,468,072
			1,468,072

Security	Shares	Value
HEALTH CARE - SERVICES – 0.88%
Fresenius SE	48,438	$	2,460,747
			2,460,747
HOUSEHOLD PRODUCTS & WARES – 0.94%
Henkel AG & Co. KGaA	111,573		2,644,184
			2,644,184
TOTAL PREFERRED STOCKS (Cost: $30,257,410)			11,896,831
SHORT-TERM INVESTMENTS – 8.27%
MONEY MARKET FUNDS – 8.27%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	19,764,828		19,764,828
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	3,304,100		3,304,100
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	108,287		108,287
			23,177,215
TOTAL SHORT-TERM INVESTMENTS
(Cost: $23,177,215)			23,177,215
TOTAL INVESTMENTS IN SECURITIES – 108.08% (Cost: $674,824,771)			302,939,305
Other Assets, Less Liabilities – (8.08)%			(22,649,663	)
NET ASSETS – 100.00%		$	280,289,642

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 97.17%
AEROSPACE & DEFENSE – 2.82%
Finmeccanica SpA	164,766	$	2,115,629
			2,115,629
AUTO MANUFACTURERS – 1.80%
Fiat SpA	298,518		1,350,661
			1,350,661
AUTO PARTS & EQUIPMENT – 0.29%
Pirelli & C. SpA	984,859		213,265
			213,265
BANKS – 22.60%
Banca Carige SpA	425,334		1,147,915
Banca Monte dei Paschi di Siena SpA	1,050,676		1,309,057
Banca Popolare di Milano Scrl	191,898		777,467
Banco Popolare SpA	289,002		1,113,070
Intesa Sanpaolo SpA	2,626,176		6,457,286
UniCredito SpA	2,836,050		3,637,945
Unione di Banche Italiane ScpA	261,324		2,489,209
			16,931,949
BUILDING MATERIALS – 0.22%
Italcementi SpAa	18,144		163,265
			163,265
COMMERCIAL SERVICES – 2.05%
Atlantia SpA	116,886		1,533,500
			1,533,500
DIVERSIFIED FINANCIAL SERVICES – 2.66%
Mediobanca SpA	244,314		1,992,068
			1,992,068
ELECTRIC – 14.50%
A2A SpA	914,250		1,323,703
Enel SpA	1,166,634		5,845,241
Terna SpA	1,183,056		3,696,249
			10,865,193
ELECTRICAL COMPONENTS & EQUIPMENT – 0.69%
Prysmian SpA	62,580		518,605
			518,605
ENTERTAINMENT – 0.38%
Lottomatica SpA	17,739		286,124
			286,124

Security	Shares	Value
FOOD – 1.59%
Parmalat SpA	640,166	$	1,191,108
			1,191,108
HEALTH CARE - PRODUCTS – 1.66%
Luxottica Group SpA	94,417		1,245,910
			1,245,910
HOLDING COMPANIES - DIVERSIFIED – 0.29%
IFIL Investments SpA	114,245		217,790
			217,790
INSURANCE – 9.80%
Assicurazioni Generali SpA	380,142		5,754,968
Fondiaria-Sai SpA	52,290		612,309
Mediolanum SpAa	147,882		495,838
Unipol Gruppo Finanziario SpA	533,274		480,872
			7,343,987
MEDIA – 2.34%
Mediaset SpA	391,378		1,750,928
			1,750,928
METAL FABRICATE & HARDWARE – 1.91%
Tenaris SA	164,640		1,431,297
			1,431,297
OIL & GAS – 24.86%
Eni SpA	909,846		18,327,022
Saras SpA	101,892		297,638
			18,624,660
OIL & GAS SERVICES – 1.93%
Saipem SpA	92,484		1,444,749
			1,444,749
RETAIL – 0.40%
Autogrill SpA	28,591		138,258
Bulgari SpA	38,718		157,971
			296,229
TELECOMMUNICATIONS – 4.10%
Telecom Italia SpA	2,501,982		3,071,191
			3,071,191
UTILITIES – 0.28%
ACEA SpA	16,758		210,281
			210,281
TOTAL COMMON STOCKS (Cost: $180,700,833)			72,798,389

28 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2009

Security	Shares	Value
PREFERRED STOCKS – 2.44%
BANKS – 0.60%
Intesa Sanpaolo SpA RNC	265,692	$	446,773
			446,773
BUILDING MATERIALS – 0.30%
Italcementi SpA RNC	42,968		226,745
			226,745
INSURANCE – 0.72%
Unipol Gruppo Finanziario SpA	771,498		538,913
			538,913
TELECOMMUNICATIONS – 0.82%
Telecom Italia SpA RNC	641,004		617,093
			617,093
TOTAL PREFERRED STOCKS (Cost: $5,271,989)			1,829,524
SHORT-TERM INVESTMENTS – 0.38%
MONEY MARKET FUNDS – 0.38%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%b,c,d	199,874		199,874
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%b,c,d	33,413		33,413
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%b,c	47,097		47,097
			280,384
TOTAL SHORT-TERM INVESTMENTS (Cost: $280,384)			280,384
TOTAL INVESTMENTS IN SECURITIES – 99.99% (Cost: $186,253,206)			74,908,297
Other Assets, Less Liabilities – 0.01%			10,423
NET ASSETS – 100.00%		$	74,918,720

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

^b Affiliated issuer. See Note 2.

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

^d All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited)

iSHARES^® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.88%
BANKS – 0.66%
SNS REAAL NV	137,921	$	521,996
			521,996
BEVERAGES – 4.85%
Heineken Holding NV	40,033		933,748
Heineken NV	107,464		2,903,029
			3,836,777
BIOTECHNOLOGY – 0.79%
Crucell NVa	33,649		626,509
			626,509
BUILDING MATERIALS – 0.08%
Wavin NV	22,344		62,432
			62,432
CHEMICALS – 8.08%
Akzo Nobel NV	125,286		4,445,003
Koninklijke DSM NV	84,056		1,945,082
			6,390,085
COMMERCIAL SERVICES – 1.37%
Brunel International NV	2,660		25,912
Randstad Holding NV	55,461		816,731
USG People NV	28,329		236,743
			1,079,386
DIVERSIFIED FINANCIAL SERVICES – 0.58%
BinckBank NV	32,319		244,228
KAS Bank NV	18,886		211,534
			455,762
ELECTRICAL COMPONENTS & EQUIPMENT – 0.47%
Draka Holding NV	8,379		59,051
InnoConcepts NVb	19,418		55,612
TKH Group NV	26,201		256,429
			371,092
ELECTRONICS – 7.17%
Koninklijke Philips Electronics NV	350,588		5,670,441
			5,670,441
ENGINEERING & CONSTRUCTION – 1.54%
Arcadis NVb	17,157		189,967
Koninklijke BAM Groep NV	54,796		407,193
Koninklijke Boskalis Westminster NV	31,920		616,816
			1,213,976

Security	Shares	Value
FOOD – 27.21%
CSM NV	48,279	$	528,857
Koninklijke Ahold NV	493,962		5,558,378
Koninklijke Wessanen NV	63,707		266,197
Nutreco Holding NV	19,817		701,700
Sligro Food Group NV	15,960		340,435
Super de Boer NVa	32,596		89,421
Unilever NV	723,786		14,018,477
			21,503,465
HOLDING COMPANIES - DIVERSIFIED – 0.61%
Eriks Group NV	3,724		107,292
Imtech NV	25,140		323,920
Ordina NV	18,086		51,913
			483,125
INSURANCE – 7.42%
Aegon NV	675,640		2,470,460
ING Groep NV	729,904		3,398,435
			5,868,895
INVESTMENT COMPANIES – 0.07%
Kardan NV	26,600		54,087
			54,087
MANUFACTURING – 0.63%
Aalberts Industries NV	46,152		235,048
Koninklijke Ten Cate NV	17,024		260,969
			496,017
MEDIA – 8.54%
Reed Elsevier NV	344,869		3,882,440
Telegraaf Media Groep NV	14,497		230,149
Wolters Kluwer NV	165,186		2,641,313
			6,753,902
METAL FABRICATE & HARDWARE – 0.05%
Advanced Metallurgical Group NVa,b	6,251		37,155
			37,155
OFFICE & BUSINESS EQUIPMENT – 0.09%
Oce NV	26,733		68,584
			68,584
OIL & GAS SERVICES – 1.91%
Fugro NV CVA	25,669		669,460
SBM Offshore NV	63,175		838,861
			1,508,321

30 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
PHARMACEUTICALS – 0.46%
OPG Groep NV	43,092	$	366,137
			366,137
REAL ESTATE INVESTMENT TRUSTS – 4.31%
Corio NV	33,383		1,326,848
Eurocommercial Properties NV	18,221		491,064
VastNed Offices/Industrial NV	9,576		83,638
VastNed Retail NV	12,369		549,824
Wereldhave NV	14,098		956,942
			3,408,316
RETAIL – 0.17%
Beter Bed Holding NV	5,320		54,310
Macintosh Retail Group NV	7,980		81,080
			135,390
SEMICONDUCTORS – 4.47%
ASM International NVa	15,827		103,722
ASML Holding NV	221,046		3,427,829
			3,531,551
SOFTWARE – 0.31%
Exact Holding NV	3,990		72,161
TomTom NVa,b	28,329		102,217
Unit 4 Agresso NV	7,315		68,285
			242,663
TELECOMMUNICATIONS – 12.70%
Koninklijke KPN NV	775,124		10,036,429
			10,036,429
TEXTILES – 0.04%
Gamma Holding NV	7,448		32,635
			32,635
TRANSPORTATION – 5.30%
Royal Vopak NV	22,211		743,732
Smit Internationale NV	7,049		304,388
TNT NV	215,272		3,142,804
			4,190,924
TOTAL COMMON STOCKS (Cost: $180,455,911)			78,946,052

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.27%
MONEY MARKET FUNDS – 0.27%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	178,439	$	178,439
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	29,830		29,830
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	7,205		7,205
			215,474
TOTAL SHORT-TERM INVESTMENTS (Cost: $215,474)			215,474
TOTAL INVESTMENTS IN SECURITIES – 100.15% (Cost: $180,671,385)			79,161,526
Other Assets, Less Liabilities – (0.15)%			(119,924	)
NET ASSETS – 100.00%		$	79,041,602

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.81%
AIRLINES – 0.38%
Iberia Lineas Aereas de Espana SA	252,932	$	587,862
			587,862
BANKS – 31.38%
Banco Bilbao Vizcaya Argentaria SAa	1,530,690		11,256,066
Banco de Sabadell SAa	803,566		3,347,466
Banco de Valencia SA	191,586		1,681,367
Banco Popular Espanol SAa	852,184		4,091,156
Banco Santander SA	4,263,806		26,534,709
Bankinter SAa	230,880		1,905,989
			48,816,753
COMMERCIAL SERVICES – 3.05%
Abertis Infraestructuras SA	258,778		3,621,844
Cintra Concesiones de Infraestructuras de Transporte SA	235,690		1,125,511
			4,747,355
COMPUTERS – 1.56%
Indra Sistemas SAa	132,386		2,429,577
			2,429,577
DIVERSIFIED FINANCIAL SERVICES – 1.74%
Criteria CaixaCorp SAa	959,188		2,704,441
			2,704,441
ELECTRIC – 10.91%
Iberdrola SA	1,117,622		7,381,066
Red Electrica Corporacion SA	91,982		3,733,623
Union Fenosa SA	257,890		5,853,018
			16,967,707
ENERGY - ALTERNATE SOURCES – 1.10%
Gamesa Corporacion Tecnologica SA	127,502		1,711,642
			1,711,642
ENGINEERING & CONSTRUCTION – 7.41%
Acciona SA	31,820		3,176,461
Actividades de Construcciones y Servicios SAa	150,886		6,036,432
Fomento de Construcciones y Contratas SA	33,152		860,199

Security	Shares	Value
Grupo Ferrovial SAa	41,292	$	1,020,015
Sacyr Vallehermoso SAa	61,420		431,376
			11,524,483
GAS – 3.50%
Enagas SA	154,882		2,509,993
Gas Natural SDG SAa	161,098		2,927,862
			5,437,855
INSURANCE – 1.84%
Mapfre SAa	1,389,128		2,858,105
			2,858,105
IRON & STEEL – 0.57%
Acerinox SAa	76,886		890,559
			890,559
MACHINERY – 0.85%
Zardoya Otis SAa	76,146		1,322,015
			1,322,015
MEDIA – 0.72%
Gestevision Telecinco SA	155,474		1,119,597
			1,119,597
OIL & GAS – 4.46%
Repsol YPF SA	447,330		6,942,567
			6,942,567
PHARMACEUTICALS – 0.95%
Grifols SA	93,388		1,483,779
			1,483,779
RETAIL – 4.08%
Industria de Diseno Textil SAa	167,166		6,354,414
			6,354,414
TELECOMMUNICATIONS – 25.31%
Telefonica SA	2,107,594		39,374,989
			39,374,989
TOTAL COMMON STOCKS (Cost: $364,312,169)			155,273,700

32 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 24.21%
MONEY MARKET FUNDS – 24.21%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%b,c,d	32,121,738	$	32,121,738
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%b,c,d	5,369,813		5,369,813
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%b,c	168,583		168,583
			37,660,134
TOTAL SHORT-TERM INVESTMENTS
(Cost: $37,660,134)			37,660,134
TOTAL INVESTMENTS IN SECURITIES – 124.02% (Cost: $401,972,303)			192,933,834
Other Assets, Less Liabilities – (24.02)%			(37,366,435	)
NET ASSETS – 100.00%		$	155,567,399

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

^b Affiliated issuer. See Note 2.

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

^d All or a portion of 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 SWEDEN INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.91%
AGRICULTURE – 2.52%
Swedish Match AB	155,380	$	2,046,769
			2,046,769
AUTO MANUFACTURERS – 1.78%
Scania AB Class Ba	202,980		1,444,071
			1,444,071
BANKS – 14.18%
Nordea Bank AB	1,267,775		6,384,043
Skandinaviska Enskilda Banken AB Class Aa	283,560		1,194,647
Svenska Handelsbanken AB Class A	279,480		3,378,589
Swedbank AB Class Aa	221,510		581,113
			11,538,392
COMMERCIAL SERVICES – 1.64%
Securitas AB Class B	190,400		1,333,408
			1,333,408
ENGINEERING & CONSTRUCTION – 2.00%
Skanska AB Class Ba	229,813		1,628,584
			1,628,584
FOREST PRODUCTS & PAPER – 3.42%
Holmen AB Class B	32,385		541,796
Svenska Cellulosa AB Class B	343,552		2,243,653
			2,785,449
HAND & MACHINE TOOLS – 4.14%
Sandvik AB	624,750		3,368,243
			3,368,243
HEALTH CARE - PRODUCTS – 1.74%
Getinge AB Class B	122,468		1,419,234
			1,419,234
HOME FURNISHINGS – 1.31%
Electrolux AB Class Ba	155,025		1,068,437
			1,068,437
HOUSEHOLD PRODUCTS & WARES – 0.74%
Husqvarna AB Class Ba	165,808		600,867
			600,867
INVESTMENT COMPANIES – 3.95%
Investor AB Class B	282,030		3,213,472
			3,213,472

Security	Shares	Value
IRON & STEEL – 1.46%
SSAB Svenskt Stal AB Class A	110,655	$	827,216
SSAB Svenskt Stal AB Class B	51,067		356,213
			1,183,429
MACHINERY – 9.82%
Atlas Copco AB Class A	383,860		2,677,577
Atlas Copco AB Class B	212,160		1,338,396
Volvo AB Class A	262,565		1,138,300
Volvo AB Class B	669,800		2,836,779
			7,991,052
MANUFACTURING – 1.93%
Alfa Laval AB	223,107		1,568,661
			1,568,661
MEDIA – 0.54%
Modern Times Group MTG AB Class B	31,195		440,397
			440,397
METAL FABRICATE & HARDWARE – 4.53%
Assa Abloy AB Class B	190,886		1,628,575
SKF AB Class B	244,035		2,054,897
			3,683,472
OIL & GAS – 0.71%
Lundin Petroleum ABb	134,640		576,223
			576,223
RETAIL – 14.43%
Hennes & Mauritz AB Class Ba	312,970		11,741,724
			11,741,724
TELECOMMUNICATIONS – 29.07%
Millicom International Cellular SA SDR	42,755		1,696,721
Tele2 AB Class B	185,895		1,389,682
Telefonaktiebolaget LM Ericsson AB Class B	1,806,590		15,061,778
TeliaSonera AB	1,366,970		5,500,763
			23,648,944
TOTAL COMMON STOCKS (Cost: $219,014,545)			81,280,828

34 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 9.05%
MONEY MARKET FUNDS – 9.05%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	6,300,660	$	6,300,660
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	1,053,286		1,053,286
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	9,552		9,552
			7,363,498
TOTAL SHORT-TERM INVESTMENTS (Cost: $7,363,498)			7,363,498
TOTAL INVESTMENTS IN SECURITIES – 108.96% (Cost: $226,378,043)			88,644,326
Other Assets, Less Liabilities – (8.96)%			(7,292,616	)
NET ASSETS – 100.00%		$	81,351,710

SDR – Swedish Depositary Receipts

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 98.69%
BANKS – 6.58%
Baloise Holding Registered	16,083	$	920,113
Credit Suisse Group AG Registered	372,648		9,250,627
Julius Baer Holding AG Registered	91,952		2,150,019
			12,320,759
BUILDING MATERIALS – 2.27%
Geberit AG Registered	14,595		1,319,188
Holcim Ltd. Registered	87,442		2,927,243
			4,246,431
CHEMICALS – 8.70%
Givaudan SA Registered	4,097		2,379,073
Lonza Group AG Registered	48,195		4,654,024
Syngenta AG Registered	43,050		9,256,674
			16,289,771
COMMERCIAL SERVICES – 1.99%
Adecco SA Registered	48,459		1,489,958
SGS SA Registered	2,468		2,245,562
			3,735,520
COMPUTERS – 0.25%
Logitech International SA Registereda,b	53,865		462,361
			462,361
DIVERSIFIED FINANCIAL SERVICES – 4.42%
UBS AG Registereda	872,446		8,282,620
			8,282,620
ELECTRIC – 0.22%
BKW FMB Energie AG	5,775		417,882
			417,882
ENGINEERING & CONSTRUCTION – 5.19%
ABB Ltd. Registereda	792,330		9,718,795
			9,718,795
FOOD – 22.47%
Aryzta AGa	28,455		646,038
Lindt & Spruengli AG Registered	126		2,356,146
Lindt & Spruengli AG Participation Certificates	735		1,167,167
Nestle SA Registered	1,151,955		37,910,691
			42,080,042

Security	Shares	Value
HAND & MACHINE TOOLS – 0.59%
Schindler Holding AG Participation Certificates	22,470	$	1,103,248
			1,103,248
HEALTH CARE - PRODUCTS – 5.82%
Nobel Biocare Holding AG Registered	84,217		1,351,087
Sonova Holding AG Registered	30,384		1,503,552
Straumann Holding AG Registeredb	7,050		1,161,888
Synthes Inc.	59,010		6,878,591
			10,895,118
INSURANCE – 5.64%
Swiss Life Holding AG Registereda	13,893		685,706
Swiss Reinsurance Co. Registeredb	159,905		1,994,352
Zurich Financial Services AG Registered	55,125		7,892,575
			10,572,633
INVESTMENT COMPANIES – 0.53%
Pargesa Holding SA Bearer	18,825		994,574
Reinet Investments SCAa	1		9
			994,583
PHARMACEUTICALS – 28.03%
Actelion Ltd. Registereda	41,370		1,967,294
Novartis AG Registered	688,065		25,207,394
Roche Holding AG Genusschein	221,865		25,328,794
			52,503,482
RETAIL – 2.64%
Compagnie Financiere Richemont SA Class A Bearer Units	203,280		2,695,859
Swatch Group AG (The) Bearer	15,216		1,710,984
Swatch Group AG (The) Registered	24,570		544,125
			4,950,968
TELECOMMUNICATIONS – 2.91%
Swisscom AG Registered	18,049		5,453,432
			5,453,432
TRANSPORTATION – 0.44%
Kuehne & Nagel International AG Registered	16,905		819,856
			819,856
TOTAL COMMON STOCKS (Cost: $328,261,145)			184,847,501

36 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 1.81%
MONEY MARKET FUNDS – 1.81%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	2,889,910	$	2,889,910
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	483,108		483,108
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	10,643		10,643
			3,383,661
TOTAL SHORT-TERM INVESTMENTS (Cost: $3,383,661)			3,383,661
TOTAL INVESTMENTS IN SECURITIES – 100.50% (Cost: $331,644,806)			188,231,162
Other Assets, Less Liabilities – (0.50)%			(933,112	)
NET ASSETS – 100.00%		$	187,298,050

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 98.94%
AEROSPACE & DEFENSE – 2.30%
BAE Systems PLC	1,023,057	$	5,417,266
Cobham PLC	331,695		913,414
Meggitt PLC	190,512		340,112
Rolls-Royce Group PLCa	530,145		2,183,806
			8,854,598
AGRICULTURE – 5.51%
British American Tobacco PLC	550,557		14,101,713
Imperial Tobacco Group PLC	295,029		7,064,729
			21,166,442
AIRLINES – 0.08%
British Airways PLC	162,162		317,121
			317,121
APPAREL – 0.12%
Burberry Group PLC	126,063		461,788
			461,788
BANKS – 9.65%
Barclays PLCb	2,428,839		3,233,457
HSBC Holdings PLC	3,511,998		24,591,122
Lloyds Banking Group PLC	2,855,791		2,373,103
Royal Bank of Scotland Group PLC	5,119,254		1,692,841
Standard Chartered PLC	548,289		5,189,185
			37,079,708
BEVERAGES – 3.20%
Diageo PLC	726,516		8,481,069
SABMiller PLC	262,143		3,803,711
			12,284,780
CHEMICALS – 0.23%
Johnson Matthey PLC	62,181		869,457
			869,457
COMMERCIAL SERVICES – 1.67%
Bunzl PLC	95,588		791,591
Capita Group PLC	178,416		1,688,587
Experian PLC	298,998		1,776,092
G4S PLC	362,502		963,114
Hays PLC	393,120		427,254
Serco Group PLC	141,372		780,327
			6,426,965

Security	Shares	Value
COMPUTERS – 0.11%
Logica PLC	434,511	$	425,790
			425,790
DISTRIBUTION & WHOLESALE – 0.13%
Wolseley PLC	189,945		483,538
			483,538
DIVERSIFIED FINANCIAL SERVICES – 0.93%
ICAP PLC	147,042		492,528
Investec PLC	120,393		350,497
London Stock Exchange Group PLC	44,415		274,910
Man Group PLC	494,046		1,210,500
Old Mutual PLC	1,449,252		857,262
Schroders PLC	36,332		377,778
			3,563,475
ELECTRIC – 3.35%
Drax Group PLC	97,902		724,237
International Power PLC	438,480		1,485,908
National Grid PLC	705,348		6,298,629
Scottish & Southern Energy PLC	265,923		4,355,093
			12,863,867
ENGINEERING & CONSTRUCTION – 0.36%
AMEC PLC	94,878		737,027
Balfour Beatty PLC	140,994		639,071
			1,376,098
ENTERTAINMENT – 0.11%
Ladbrokes PLC	171,045		422,991
			422,991
FOOD – 6.64%
Cadbury PLC	394,254		3,017,671
J Sainsbury PLC	306,558		1,377,493
Tate & Lyle PLC	133,056		502,576
Tesco PLC	2,279,340		10,825,193
Unilever PLC	372,519		7,263,669
Wm Morrison Supermarkets PLC	687,204		2,529,575
			25,516,177
FOOD SERVICE – 0.86%
Associated British Foods PLC	102,249		948,771
Compass Group PLC	535,059		2,360,390
			3,309,161

38 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2009

Security	Shares	Value
GAS – 1.48%
Centrica PLC	1,479,681	$	5,705,016
			5,705,016
HEALTH CARE - PRODUCTS – 0.47%
Smith & Nephew PLC	256,095		1,816,912
			1,816,912
HOLDING COMPANIES - DIVERSIFIED – 0.11%
Tomkins PLC	259,755		418,373
			418,373
HOME BUILDERS – 0.08%
Berkeley Group Holdings PLC (The) Unitsa	24,192		300,166
			300,166
HOUSEHOLD PRODUCTS & WARES – 1.75%
Reckitt Benckiser PLC	175,014		6,720,350
			6,720,350
INSURANCE – 3.09%
Admiral Group PLC	53,487		651,832
Aviva PLC	771,498		3,178,002
Friends Provident PLC	686,637		692,918
Legal & General Group PLC	1,706,481		977,798
Prudential PLC	723,303		2,891,843
RSA Insurance Group PLC	965,412		1,894,821
Standard Life PLC	635,040		1,577,684
			11,864,898
LEISURE TIME – 0.48%
Carnival PLC	47,628		972,136
Thomas Cook Group PLC	124,929		380,174
TUI Travel PLC	161,550		509,462
			1,861,772
LODGING – 0.13%
InterContinental Hotels Group PLC	73,710		508,240
			508,240
MANUFACTURING – 0.57%
IMI PLC	95,067		358,407
Invensys PLCa	236,061		514,798
Smiths Group PLC	111,888		1,326,870
			2,200,075

Security	Shares	Value
MEDIA – 2.76%
British Sky Broadcasting Group PLC	332,262	$	2,227,055
Daily Mail & General Trust PLC Class A NVS	79,569		282,967
ITV PLC	948,402		334,572
Pearson PLC	235,494		2,213,687
Reed Elsevier PLC	319,599		2,389,310
Thomson Reuters PLC	52,544		1,085,957
United Business Media Ltd.	66,528		393,527
WPP PLC	323,568		1,685,678
			10,612,753
MINING – 7.03%
Anglo American PLC	381,402		5,441,750
Antofagasta PLC	115,857		730,317
BHP Billiton PLC	640,143		10,091,452
Eurasian Natural Resources PLC	95,634		454,260
Kazakhmys PLC	60,858		226,835
Lonmin PLC	34,587		497,916
Rio Tinto PLC	289,359		7,428,006
Vedanta Resources PLC	42,903		330,525
Xstrata PLC	183,519		1,819,281
			27,020,342
OIL & GAS – 23.77%
BG Group PLC	973,539		13,945,720
BP PLC	5,434,317		34,720,565
Cairn Energy PLCa	38,367		1,072,400
Royal Dutch Shell PLC Class A	1,028,916		22,658,436
Royal Dutch Shell PLC Class B	782,271		16,546,748
Tullow Oil PLC	231,525		2,412,330
			91,356,199
PACKAGING & CONTAINERS – 0.18%
Rexam PLC	184,275		688,816
			688,816
PHARMACEUTICALS – 9.98%
AstraZeneca PLC	419,769		13,420,267
GlaxoSmithKline PLC	1,508,220		22,980,735
Shire PLC	162,729		1,933,268
			38,334,270

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2009

Security	Shares	Value
REAL ESTATE – 0.62%
British Land Co. PLC	147,231	$	960,615
Land Securities Group PLC	133,623		1,045,623
Liberty International PLCc	74,277		365,254
			2,371,492
REAL ESTATE INVESTMENT TRUSTS – 0.13%
Hammerson PLCc	88,074		305,053
SEGRO PLC	130,634		199,699
			504,752
RETAIL – 1.40%
Carphone Warehouse Group PLC (The)	121,000		183,247
Home Retail Group PLC	254,532		770,944
Kingfisher PLC	678,699		1,223,740
Marks & Spencer Group PLC	459,081		1,707,856
Next PLC	57,834		963,650
Whitbread PLC	49,896		530,905
			5,380,342
SOFTWARE – 0.52%
Autonomy Corp. PLCa	61,992		1,074,461
Sage Group PLC (The)	377,811		919,242
			1,993,703
TELECOMMUNICATIONS – 8.20%
BT Group PLC	2,243,997		2,901,022
Cable & Wireless PLC	733,320		1,438,247
Vodafone Group PLC	15,225,462		27,170,419
			31,509,688
TRANSPORTATION – 0.21%
FirstGroup PLC	141,939		544,221
Stagecoach Group PLC	156,407		258,604
			802,825
VENTURE CAPITAL – 0.08%
3i Group PLC	108,486		309,261
			309,261
WATER – 0.65%
Severn Trent PLC	68,607		1,063,944
United Utilities Group PLC	196,938		1,424,581
			2,488,525
TOTAL COMMON STOCKS (Cost: $828,366,219)			380,190,726

Security	Shares	Value
RIGHTS – 0.04%
REAL ESTATE INVESTMENT TRUSTS – 0.04%
Hammerson PLCa,c	113,778	$	148,389
			148,389
TOTAL RIGHTS (Cost: $573,538)			148,389
SHORT-TERM INVESTMENTS – 0.29%
MONEY MARKET FUNDS – 0.29%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%b,d,e	953,068		953,068
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%b,d,e	159,325		159,325
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%b,d	18,631		18,631
			1,131,024
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,131,024)			1,131,024
TOTAL INVESTMENTS IN SECURITIES – 99.27% (Cost: $830,070,781)			381,470,139
Other Assets, Less Liabilities – 0.73%			2,815,309
NET ASSETS – 100.00%		$	384,285,448

NVS – Non-Voting Shares

^a Non-income earning security.

^b Affiliated issuer. See Note 2.

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

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

^e All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

40 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2009

	iShares MSCI
	Austria Investable Market Index Fund			Belgium Investable Market Index Fund			EMU Index Fund			France Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	213,885,899		$	147,453,599		$	1,233,946,437		$	252,980,039
Affiliated issuers (Note 2)		11,921,921			915,765			16,228,578			3,456,022
Total cost of investments	$	225,807,820		$	148,369,364		$	1,250,175,015		$	256,436,061
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	57,862,897		$	61,048,121		$	531,163,838		$	104,237,208
Affiliated issuers (Note 2)		11,921,921			915,765			16,228,578			3,456,022
Total fair value of investments		69,784,818			61,963,886			547,392,416			107,693,230
Foreign currencies, at valueb		25,097			11,226			500,458			252,590
Receivables:
Investment securities sold		1,174,183			4,393,810			4,433,951			427,492
Dividends and interest		663,610			685,082			650,070			30,967
Capital shares sold		–			–			–			10,688
Total Assets		71,647,708			67,054,004			552,976,895			108,414,967
LIABILITIES
Payables:
Investment securities purchased		1,153,366			4,513,643			3,902,227			316,113
Securities related to in-kind transactions (Note 4)		–			–			33,290			–
Collateral for securities on loan (Note 5)		11,873,436			851,814			16,173,354			3,432,175
Capital shares redeemed		–			20,973			12,501			–
Investment advisory fees (Note 2)		28,175			26,218			272,386			49,023
Total Liabilities		13,054,977			5,412,648			20,393,758			3,797,311
NET ASSETS	$	58,592,731		$	61,641,356		$	532,583,137		$	104,617,656
Net assets consist of:
Paid-in capital	$	287,110,063		$	185,584,969		$	1,379,746,076		$	321,436,453
Undistributed (distributions in excess of) net investment income		(675,267	)		(142,716	)		320,102			(59,254	)
Accumulated net realized loss		(71,672,766	)		(37,252,182	)		(144,615,292	)		(68,013,848	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(156,169,299	)		(86,548,715	)		(702,867,749	)		(148,745,695	)
NET ASSETS	$	58,592,731		$	61,641,356		$	532,583,137		$	104,617,656
Shares outstandingc		5,700,000			8,120,000			23,600,000			6,600,000
Net asset value per share	$	10.28		$	7.59		$	22.57		$	15.85

^a Securities on loan with market values of $11,241,483, $766,335, $14,915,587 and $3,292,854, respectively. See Note 5.

^b Cost of foreign currencies: $27,047, $11,217, $506,917 and $255,356, respectively.

^c $0.001 par value, number of shares authorized: 100 million, 136.2 million, 1 billion and 340.2 million, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 41

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2009

	iShares MSCI
	Germany Index Fund			Italy Index Fund			Netherlands Investable Market Index Fund			Spain Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	651,647,556		$	185,972,822		$	180,455,911		$	364,312,169
Affiliated issuers (Note 2)		23,177,215			280,384			215,474			37,660,134
Total cost of investments	$	674,824,771		$	186,253,206		$	180,671,385		$	401,972,303
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	279,762,090		$	74,627,913		$	78,946,052		$	155,273,700
Affiliated issuers (Note 2)		23,177,215			280,384			215,474			37,660,134
Total fair value of investments		302,939,305			74,908,297			79,161,526			192,933,834
Foreign currencies, at valueb		380,987			33,693			1,930			89,523
Receivables:
Investment securities sold		8,784,023			2,915,811			784,880			3,615,090
Dividends and interest		268,814			66,250			303			129,093
Capital shares sold		9,523			65,582			–			–
Total Assets		312,382,652			77,989,633			79,948,639			196,767,540
LIABILITIES
Payables:
Investment securities purchased		8,886,711			2,797,176			660,484			3,601,560
Collateral for securities on loan (Note 5)		23,068,928			233,287			208,269			37,491,551
Capital shares redeemed		–			–			–			26,594
Investment advisory fees (Note 2)		137,371			40,450			38,284			80,436
Total Liabilities		32,093,010			3,070,913			907,037			41,200,141
NET ASSETS	$	280,289,642		$	74,918,720		$	79,041,602		$	155,567,399
Net assets consist of:
Paid-in capital	$	834,296,711		$	250,137,899		$	240,833,404		$	418,582,462
Undistributed (distributions in excess of) net investment income		954,237			4,287			(45,448	)		2,282,341
Accumulated net realized loss		(183,057,496	)		(63,896,047	)		(60,236,262	)		(56,253,955	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(371,903,810	)		(111,327,419	)		(101,510,092	)		(209,043,449	)
NET ASSETS	$	280,289,642		$	74,918,720		$	79,041,602		$	155,567,399
Shares outstandingc		20,700,000			6,300,000			6,650,000			5,550,000
Net asset value per share	$	13.54		$	11.89		$	11.89		$	28.03

^a Securities on loan with market values of $21,966,362, $221,399, $197,849 and $35,614,424, respectively. See Note 5.

^b Cost of foreign currencies: $390,461, $33,693, $2,163 and $90,384, 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.

42 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2009

	iShares MSCI
	Sweden Index Fund			Switzerland Index Fund			United Kingdom Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	219,014,545		$	328,261,145		$	803,904,834
Affiliated issuers (Note 2)		7,363,498			3,383,661			26,165,947
Total cost of investments	$	226,378,043		$	331,644,806		$	830,070,781
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	81,280,828		$	184,847,501		$	377,105,658
Affiliated issuers (Note 2)		7,363,498			3,383,661			4,364,481
Total fair value of investments		88,644,326			188,231,162			381,470,139
Foreign currencies, at valueb		98,733			5,747			856,306
Receivables:
Investment securities sold		313,152			117,368			1,571,901
Dividends and interest		9,073			2,412,949			3,305,629
Total Assets		89,065,284			190,767,226			387,203,975
LIABILITIES
Payables:
Investment securities purchased		317,615			–			1,619,564
Collateral for securities on loan (Note 5)		7,353,946			3,373,018			1,112,393
Investment advisory fees (Note 2)		42,013			96,158			186,570
Total Liabilities		7,713,574			3,469,176			2,918,527
NET ASSETS	$	81,351,710		$	187,298,050		$	384,285,448
Net assets consist of:
Paid-in capital	$	284,034,373		$	381,632,467		$	944,173,585
Undistributed net investment income (accumulated net investment loss)		(310,847	)		533,572			3,837,816
Accumulated net realized loss		(64,635,705	)		(51,256,130	)		(115,096,853	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(137,736,111	)		(143,611,859	)		(448,629,100	)
NET ASSETS	$	81,351,710		$	187,298,050		$	384,285,448
Shares outstandingc		6,375,000			13,125,000			37,800,000
Net asset value per share	$	12.76		$	14.27		$	10.17

^a Securities on loan with market values of $6,632,568, $3,209,018 and $749,634, respectively. See Note 5.

^b Cost of foreign currencies: $101,127, $5,813 and $875,000, respectively.

^c $0.001 par value, number of shares authorized: 63.6 million, 318.625 million and 934.2 million, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 43

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2009

	iShares MSCI
	Austria Investable Market Index Fund			Belgium Investable Market Index Fund			EMU Index Fund			France Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	162,957		$	249,518		$	6,863,147		$	1,695,027
Interest from affiliated issuers (Note 2)		520			130			587			105
Securities lending income from affiliated issuers (Note 2)		122,000			25,682			323,228			75,762
Total investment income		285,477			275,330			7,186,962			1,770,894
EXPENSES
Investment advisory fees (Note 2)		281,700			177,857			2,242,751			515,883
Total expenses		281,700			177,857			2,242,751			515,883
Net investment income		3,777			97,473			4,944,211			1,255,011
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(17,526,244	)		(20,047,395	)		(70,426,135	)		(6,111,319	)
In-kind redemptions		(28,424,362	)		(6,706,657	)		(35,295,187	)		(50,808,520	)
Foreign currency transactions		50,932			(516	)		(228,914	)		(26,916	)
Net realized loss		(45,899,674	)		(26,754,568	)		(105,950,236	)		(56,946,755	)
Net change in unrealized appreciation (depreciation) on:
Investments		(90,800,841	)		(35,821,653	)		(473,664,726	)		(82,049,590	)
Translation of assets and liabilities in foreign currencies		(207,258	)		(120,466	)		18,415			1,676
Net change in unrealized appreciation (depreciation)		(91,008,099	)		(35,942,119	)		(473,646,311	)		(82,047,914	)
Net realized and unrealized loss		(136,907,773	)		(62,696,687	)		(579,596,547	)		(138,994,669	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(136,903,996	)	$	(62,599,214	)	$	(574,652,336	)	$	(137,739,658	)

^a Net of foreign withholding tax of $4,752, $44,032, $956,795 and $100,132, respectively.

See notes to financial statements.

44 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2009

	iShares MSCI
	Germany Index Fund			Italy Index Fund			Netherlands Investable Market Index Fund			Spain Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	1,336,809		$	1,670,198		$	428,059		$	5,739,917
Interest from affiliated issuers (Note 2)		330			95			142			490
Securities lending income from affiliated issuers (Note 2)		123,901			11,297			4,909			572,792
Total investment income		1,461,040			1,681,590			433,110			6,313,199
EXPENSES
Investment advisory fees (Note 2)		1,138,136			331,294			351,688			694,969
Total expenses		1,138,136			331,294			351,688			694,969
Net investment income		322,904			1,350,296			81,422			5,618,230
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(39,160,354	)		(20,440,787	)		(23,437,929	)		(17,066,822	)
In-kind redemptions		(82,322,490	)		(25,705,508	)		(18,391,053	)		(29,986,512	)
Foreign currency transactions		(509,520	)		(106,453	)		(52,642	)		128,491
Net realized loss		(121,992,364	)		(46,252,748	)		(41,881,624	)		(46,924,843	)
Net change in unrealized appreciation (depreciation) on:
Investments		(213,602,891	)		(49,292,247	)		(64,759,617	)		(107,877,005	)
Translation of assets and liabilities in foreign currencies		180,257			11,625			8,017			34,682
Net change in unrealized appreciation (depreciation)		(213,422,634	)		(49,280,622	)		(64,751,600	)		(107,842,323	)
Net realized and unrealized loss		(335,414,998	)		(95,533,370	)		(106,633,224	)		(154,767,166	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(335,092,094	)	$	(94,183,074	)	$	(106,551,802	)	$	(149,148,936	)

^a Net of foreign withholding tax of $185,019, $291,759, $74,034 and $903,986, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 45

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2009

	iShares MSCI
	Sweden Index Fund			Switzerland Index Fund			United Kingdom Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	–		$	1,322,634		$	10,566,567
Interest from affiliated issuers (Note 2)		142			469			340
Securities lending income from affiliated issuers (Note 2)		33,480			16,322			18,879
Total investment income		33,622			1,339,425			10,585,786
EXPENSES
Investment advisory fees (Note 2)		370,960			825,917			1,531,028
Total expenses		370,960			825,917			1,531,028
Net investment income (loss)		(337,338	)		513,508			9,054,758
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(6,824,769	)		(25,159,142	)		(28,938,116	)
Investments in affiliated issuers (Note 2)		–			–			(2,302,223	)
In-kind redemptions		(39,208,720	)		(16,707,147	)		(28,251,989	)
Foreign currency transactions		(35,170	)		(91,821	)		(1,486,008	)
Net realized loss		(46,068,659	)		(41,958,110	)		(60,978,336	)
Net change in unrealized appreciation (depreciation) on:
Investments		(58,713,746	)		(109,233,346	)		(332,440,289	)
Translation of assets and liabilities in foreign currencies		4,228			(84,564	)		258,403
Net change in unrealized appreciation (depreciation)		(58,709,518	)		(109,317,910	)		(332,181,886	)
Net realized and unrealized loss		(104,778,177	)		(151,276,020	)		(393,160,222	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(105,115,515	)	$	(150,762,512	)	$	(384,105,464	)

^a Net of foreign withholding tax of $–, $233,949 and $67,795, respectively.

See notes to financial statements.

46 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Austria Investable Market Index Fund						iShares MSCI Belgium Investable Market Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	3,777		$	5,489,871		$	97,473		$	8,943,391
Net realized gain (loss)		(45,899,674	)		827,676			(26,754,568	)		10,301,055
Net change in unrealized appreciation (depreciation)		(91,008,099	)		(72,261,407	)		(35,942,119	)		(77,304,920	)
Net decrease in net assets resulting from operations		(136,903,996	)		(65,943,860	)		(62,599,214	)		(58,060,474	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,480,497	)		(10,677,774	)		(863,335	)		(16,629,945	)
Total distributions to shareholders		(2,480,497	)		(10,677,774	)		(863,335	)		(16,629,945	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		63,725,119			202,420,621			39,566,353			83,185,830
Cost of shares redeemed		(59,350,066	)		(405,710,636	)		(34,417,081	)		(192,024,177	)
Net increase (decrease) in net assets from capital share transactions		4,375,053			(203,290,015	)		5,149,272			(108,838,347	)
DECREASE IN NET ASSETS		(135,009,440	)		(279,911,649	)		(58,313,277	)		(183,528,766	)
NET ASSETS
Beginning of period		193,602,171			473,513,820			119,954,633			303,483,399
End of period	$	58,592,731		$	193,602,171		$	61,641,356		$	119,954,633
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(675,267	)	$	1,801,453		$	(142,716	)	$	623,146
SHARES ISSUED AND REDEEMED
Shares sold		2,700,000			5,700,000			4,040,000			3,320,000
Shares redeemed		(3,500,000	)		(11,900,000	)		(2,720,000	)		(8,240,000	)
Net increase (decrease) in shares outstanding		(800,000	)		(6,200,000	)		1,320,000			(4,920,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 47

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI EMU Index Fund						iShares MSCI France Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,944,211		$	77,988,337		$	1,255,011		$	12,303,626
Net realized gain (loss)		(105,950,236	)		420,891,072			(56,946,755	)		20,272,014
Net change in unrealized appreciation (depreciation)		(473,646,311	)		(780,256,430	)		(82,047,914	)		(74,337,717	)
Net decrease in net assets resulting from operations		(574,652,336	)		(281,377,021	)		(137,739,658	)		(41,762,077	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(14,852,012	)		(132,228,318	)		(3,305,755	)		(15,471,999	)
Total distributions to shareholders		(14,852,012	)		(132,228,318	)		(3,305,755	)		(15,471,999	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		174,162,885			935,523,497			108,673,950			392,494,736
Cost of shares redeemed		(343,883,429	)		(2,201,675,459	)		(90,213,408	)		(553,753,893	)
Net increase (decrease) in net assets from capital share transactions		(169,720,544	)		(1,266,151,962	)		18,460,542			(161,259,157	)
DECREASE IN NET ASSETS		(759,224,892	)		(1,679,757,301	)		(122,584,871	)		(218,493,233	)
NET ASSETS
Beginning of period		1,291,808,029			2,971,565,330			227,202,527			445,695,760
End of period	$	532,583,137		$	1,291,808,029		$	104,617,656		$	227,202,527
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	320,102		$	10,227,903		$	(59,254	)	$	1,991,490
SHARES ISSUED AND REDEEMED
Shares sold		5,900,000			17,500,000			4,200,000			10,800,000
Shares redeemed		(10,400,000	)		(41,400,000	)		(5,000,000	)		(15,600,000	)
Net decrease in shares outstanding		(4,500,000	)		(23,900,000	)		(800,000	)		(4,800,000	)

See notes to financial statements.

48 2009 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 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	322,904		$	46,008,248		$	1,350,296		$	11,898,862
Net realized gain (loss)		(121,992,364	)		227,568,876			(46,252,748	)		(6,321,261	)
Net change in unrealized appreciation (depreciation)		(213,422,634	)		(371,327,133	)		(49,280,622	)		(51,884,781	)
Net decrease in net assets resulting from operations		(335,092,094	)		(97,750,009	)		(94,183,074	)		(46,307,180	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,317,923	)		(72,915,709	)		(2,704,016	)		(18,054,401	)
Total distributions to shareholders		(1,317,923	)		(72,915,709	)		(2,704,016	)		(18,054,401	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		190,551,492			961,273,471			65,383,156			499,630,008
Cost of shares redeemed		(243,303,812	)		(1,762,400,887	)		(137,731,797	)		(363,609,192	)
Net increase (decrease) in net assets from capital share transactions		(52,752,320	)		(801,127,416	)		(72,348,641	)		136,020,816
INCREASE (DECREASE) IN NET ASSETS		(389,162,337	)		(971,793,134	)		(169,235,731	)		71,659,235
NET ASSETS
Beginning of period		669,451,979			1,641,245,113			244,154,451			172,495,216
End of period	$	280,289,642		$	669,451,979		$	74,918,720		$	244,154,451
Undistributed net investment income included in net assets at end of period	$	954,237		$	1,949,256		$	4,287		$	1,358,007
SHARES ISSUED AND REDEEMED
Shares sold		9,600,000			29,100,000			3,600,000			16,800,000
Shares redeemed		(13,200,000	)		(55,800,000	)		(7,050,000	)		(12,150,000	)
Net increase (decrease) in shares outstanding		(3,600,000	)		(26,700,000	)		(3,450,000	)		4,650,000

See notes to financial statements.

FINANCIAL STATEMENTS 49

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Netherlands Investable Market Index Fund						iShares MSCI Spain Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	81,422		$	9,878,532		$	5,618,230		$	19,885,704
Net realized gain (loss)		(41,881,624	)		13,136,127			(46,924,843	)		24,027,821
Net change in unrealized appreciation (depreciation)		(64,751,600	)		(54,521,906	)		(107,842,323	)		(122,537,204	)
Net decrease in net assets resulting from operations		(106,551,802	)		(31,507,247	)		(149,148,936	)		(78,623,679	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,392,379	)		(15,733,536	)		(9,825,412	)		(24,006,924	)
Total distributions to shareholders		(2,392,379	)		(15,733,536	)		(9,825,412	)		(24,006,924	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		28,053,105			108,417,983			112,005,926			1,073,349,945
Cost of shares redeemed		(49,719,869	)		(102,878,515	)		(118,812,727	)		(1,171,926,810	)
Net increase (decrease) in net assets from capital share transactions		(21,666,764	)		5,539,468			(6,806,801	)		(98,576,865	)
DECREASE IN NET ASSETS		(130,610,945	)		(41,701,315	)		(165,781,149	)		(201,207,468	)
NET ASSETS
Beginning of period		209,652,547			251,353,862			321,348,548			522,556,016
End of period	$	79,041,602		$	209,652,547		$	155,567,399		$	321,348,548
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(45,448	)	$	2,265,509		$	2,282,341		$	6,489,523
SHARES ISSUED AND REDEEMED
Shares sold		1,450,000			3,550,000			2,775,000			17,250,000
Shares redeemed		(3,400,000	)		(3,400,000	)		(3,600,000	)		(19,875,000	)
Net increase (decrease) in shares outstanding		(1,950,000	)		150,000			(825,000	)		(2,625,000	)

See notes to financial statements.

50 2009 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 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	(337,338	)	$	10,430,468		$	513,508		$	7,419,424
Net realized gain (loss)		(46,068,659	)		5,147,723			(41,958,110	)		55,472,783
Net change in unrealized appreciation (depreciation)		(58,709,518	)		(109,865,275	)		(109,317,910	)		(89,962,657	)
Net decrease in net assets resulting from operations		(105,115,515	)		(94,287,084	)		(150,762,512	)		(27,070,450	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(148,655	)		(24,097,389	)		(1,024,002	)		(10,490,319	)
Total distributions to shareholders		(148,655	)		(24,097,389	)		(1,024,002	)		(10,490,319	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		32,049,948			281,026,512			76,246,615			294,689,801
Cost of shares redeemed		(73,087,864	)		(508,014,443	)		(103,686,964	)		(209,602,175	)
Net increase (decrease) in net assets from capital share transactions		(41,037,916	)		(226,987,931	)		(27,440,349	)		85,087,626
INCREASE (DECREASE) IN NET ASSETS		(146,302,086	)		(345,372,404	)		(179,226,863	)		47,526,857
NET ASSETS
Beginning of period		227,653,796			573,026,200			366,524,913			318,998,056
End of period	$	81,351,710		$	227,653,796		$	187,298,050		$	366,524,913
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period	$	(310,847	)	$	175,146		$	533,572		$	1,044,066
SHARES ISSUED AND REDEEMED
Shares sold		1,950,000			9,300,000			3,500,000			11,750,000
Shares redeemed		(4,875,000	)		(16,575,000	)		(6,250,000	)		(8,250,000	)
Net increase (decrease) in shares outstanding		(2,925,000	)		(7,275,000	)		(2,750,000	)		3,500,000

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI United Kingdom Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	9,054,758		$	39,928,967
Net realized gain (loss)		(60,978,336	)		89,735,490
Net change in unrealized appreciation (depreciation)		(332,181,886	)		(319,757,708	)
Net decrease in net assets resulting from operations		(384,105,464	)		(190,093,251	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(13,893,948	)		(63,131,140	)
Total distributions to shareholders		(13,893,948	)		(63,131,140	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		13,742,750			463,470,489
Cost of shares redeemed		(113,959,957	)		(455,482,369	)
Net increase (decrease) in net assets from capital share transactions		(100,217,207	)		7,988,120
DECREASE IN NET ASSETS		(498,216,619	)		(245,236,271	)
NET ASSETS
Beginning of period		882,502,067			1,127,738,338
End of period	$	384,285,448		$	882,502,067
Undistributed net investment income included in net assets at end of period	$	3,837,816		$	8,677,006
SHARES ISSUED AND REDEEMED
Shares sold		1,000,000			20,200,000
Shares redeemed		(8,800,000	)		(20,200,000	)
Net decrease in shares outstanding		(7,800,000	)		–

See notes to financial statements.

52 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Austria Investable Market Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	29.78		$	37.28		$	31.08		$	26.62		$	17.04		$	10.61
Income from investment operations:
Net investment incomea		0.00	b		0.56			0.51			0.44			0.29			0.21
Net realized and unrealized gain (loss)c		(19.08	)		(6.98	)		6.42			4.31			9.38			6.39
Total from investment operations		(19.08	)		(6.42	)		6.93			4.75			9.67			6.60
Less distributions from:
Net investment income		(0.42	)		(1.08	)		(0.73	)		(0.29	)		(0.09	)		(0.17	)
Total distributions		(0.42	)		(1.08	)		(0.73	)		(0.29	)		(0.09	)		(0.17	)
Net asset value, end of period	$	10.28		$	29.78		$	37.28		$	31.08		$	26.62		$	17.04
Total return		(64.35	)%d		(17.64	)%		22.35	%		18.00	%		56.82	%		62.70	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	58,593		$	193,602		$	473,514		$	391,637		$	196,952		$	57,920
Ratio of expenses to average net assetse		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%		0.77	%
Ratio of net investment income to average net assetse		0.01	%		1.57	%		1.36	%		1.48	%		1.26	%		1.37	%
Portfolio turnover ratef		7	%		26	%		21	%		32	%		21	%		11	%

^a Based on average shares outstanding throughout each period.

^b Rounds to less than $0.01.

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

^d Not annualized.

^e Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 53

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Belgium Investable Market Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	17.64		$	25.89		$	22.83		$	18.94		$	14.77		$	11.16
Income from investment operations:
Net investment incomea		0.02			0.78			0.76			0.75			0.71			0.37
Net realized and unrealized gain (loss)b		(9.92	)		(7.27	)		2.74			3.95			3.75			4.25
Total from investment operations		(9.90	)		(6.49	)		3.50			4.70			4.46			4.62
Less distributions from:
Net investment income		(0.15	)		(1.76	)		(0.44	)		(0.81	)		(0.29	)		(1.01	)
Total distributions		(0.15	)		(1.76	)		(0.44	)		(0.81	)		(0.29	)		(1.01	)
Net asset value, end of period	$	7.59		$	17.64		$	25.89		$	22.83		$	18.94		$	14.77
Total return		(56.21	)%c		(26.21	)%		15.36	%		25.66	%		30.22	%		42.88	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	61,641		$	119,955		$	303,483		$	152,484		$	46,960		$	24,813
Ratio of expenses to average net assetsd		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%		0.78	%
Ratio of net investment income to average net assetsd		0.30	%		3.32	%		2.90	%		3.60	%		3.89	%		2.79	%
Portfolio turnover ratee		18	%		31	%		12	%		10	%		10	%		21	%

^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.

54 2009 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. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a			Year ended Aug. 31, 2005a			Year ended Aug. 31, 2004a
Net asset value, beginning of period	$	45.97		$	57.15		$	46.14		$	37.49		$	29.69		$	25.06
Income from investment operations:
Net investment incomeb		0.19			1.71			1.40			1.37			0.88			0.68
Net realized and unrealized gain (loss)c		(23.05	)		(9.59	)		10.54			7.94			7.57			4.35
Total from investment operations		(22.86	)		(7.88	)		11.94			9.31			8.45			5.03
Less distributions from:
Net investment income		(0.54	)		(3.30	)		(0.93	)		(0.66	)		(0.65	)		(0.40	)
Total distributions		(0.54	)		(3.30	)		(0.93	)		(0.66	)		(0.65	)		(0.40	)
Net asset value, end of period	$	22.57		$	45.97		$	57.15		$	46.14		$	37.49		$	29.69
Total return		(50.00	)%d		(14.52	)%		26.10	%		25.18	%		28.54	%		20.07	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	532,583		$	1,291,808		$	2,971,565		$	1,794,921		$	547,284		$	326,606
Ratio of expenses to average net assetse		0.56	%		0.52	%		0.51	%		0.54	%		0.58	%		0.79	%
Ratio of expenses to average net assets exclusive of foreign taxese		n/a			n/a			n/a			n/a			0.57	%		0.79	%
Ratio of net investment income to average net assetse		1.22	%		3.06	%		2.60	%		3.23	%		2.50	%		2.29	%
Portfolio turnover ratef		3	%		27	%		5	%		8	%		8	%		11	%

^a Per share amounts were adjusted to reflect a two-for-one stock split effective July 24, 2008.

^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 55

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI France Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	30.70		$	36.53		$	31.16		$	25.41		$	20.40		$	16.90
Income from investment operations:
Net investment incomea		0.14			0.93			0.77			0.55			0.47			0.24
Net realized and unrealized gain (loss)b		(14.54	)		(5.17	)		5.06			5.52			4.84			3.54
Total from investment operations		(14.40	)		(4.24	)		5.83			6.07			5.31			3.78
Less distributions from:
Net investment income		(0.45	)		(1.59	)		(0.46	)		(0.32	)		(0.30	)		(0.28	)
Total distributions		(0.45	)		(1.59	)		(0.46	)		(0.32	)		(0.30	)		(0.28	)
Net asset value, end of period	$	15.85		$	30.70		$	36.53		$	31.16		$	25.41		$	20.40
Total return		(47.22	)%c		(11.96	)%		18.83	%		24.13	%		26.13	%		22.44	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	104,618		$	227,203		$	445,696		$	211,886		$	81,326		$	61,201
Ratio of expenses to average net assetsd		0.56	%		0.52	%		0.51	%		0.54	%		0.57	%		0.79	%
Ratio of net investment income to average net assetsd		1.35	%		2.60	%		2.17	%		1.95	%		1.98	%		1.23	%
Portfolio turnover ratee		2	%		10	%		6	%		10	%		7	%		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.

56 2009 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. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	27.55		$	32.18		$	23.68		$	19.08		$	14.96		$	12.57
Income from investment operations:
Net investment incomea		0.01			0.88			0.68			0.57			0.28			0.19
Net realized and unrealized gain (loss)b		(13.95	)		(3.84	)		8.33			4.15			4.03			2.40
Total from investment operations		(13.94	)		(2.96	)		9.01			4.72			4.31			2.59
Less distributions from:
Net investment income		(0.07	)		(1.67	)		(0.51	)		(0.12	)		(0.19	)		(0.20	)
Total distributions		(0.07	)		(1.67	)		(0.51	)		(0.12	)		(0.19	)		(0.20	)
Net asset value, end of period	$	13.54		$	27.55		$	32.18		$	23.68		$	19.08		$	14.96
Total return		(50.65	)%c		(9.81	)%		38.47	%		24.82	%		28.89	%		20.55	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	280,290		$	669,452		$	1,641,245		$	802,795		$	314,793		$	98,764
Ratio of expenses to average net assetsd		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%		0.80	%
Ratio of net investment income to average net assetsd		0.16	%		2.72	%		2.32	%		2.62	%		1.54	%		1.27	%
Portfolio turnover ratee		8	%		11	%		4	%		12	%		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.

FINANCIAL HIGHLIGHTS 57

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Italy Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	25.04		$	33.82		$	30.48		$	25.77		$	20.21		$	16.67
Income from investment operations:
Net investment incomea		0.19			1.53			1.35			1.07			0.78			0.56
Net realized and unrealized gain (loss)b		(12.91	)		(7.71	)		2.66			4.15			5.42			3.59
Total from investment operations		(12.72	)		(6.18	)		4.01			5.22			6.20			4.15
Less distributions from:
Net investment income		(0.43	)		(2.60	)		(0.67	)		(0.51	)		(0.64	)		(0.61	)
Total distributions		(0.43	)		(2.60	)		(0.67	)		(0.51	)		(0.64	)		(0.61	)
Net asset value, end of period	$	11.89		$	25.04		$	33.82		$	30.48		$	25.77		$	20.21
Total return		(51.18	)%c		(19.43	)%		13.20	%		20.61	%		30.74	%		25.09	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	74,919		$	244,154		$	172,495		$	146,324		$	42,526		$	27,279
Ratio of expenses to average net assetsd		0.55	%		0.52	%		0.52	%		0.54	%		0.57	%		0.83	%
Ratio of expenses to average net assets exclusive of foreign taxesd		n/a			n/a			n/a			n/a			n/a			0.79	%
Ratio of net investment income to average net assetsd		2.26	%		5.06	%		4.02	%		3.87	%		3.18	%		2.85	%
Portfolio turnover ratee		8	%		29	%		16	%		15	%		18	%		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 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Netherlands Investable Market Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	24.38		$	29.75		$	24.17		$	19.10		$	15.70		$	14.31
Income from investment operations:
Net investment incomea		0.01			1.10			0.98			0.60			0.57			0.39
Net realized and unrealized gain (loss)b		(12.15	)		(4.68	)		5.05			4.95			3.09			1.37
Total from investment operations		(12.14	)		(3.58	)		6.03			5.55			3.66			1.76
Less distributions from:
Net investment income		(0.35	)		(1.79	)		(0.45	)		(0.48	)		(0.26	)		(0.37	)
Total distributions		(0.35	)		(1.79	)		(0.45	)		(0.48	)		(0.26	)		(0.37	)
Net asset value, end of period	$	11.89		$	24.38		$	29.75		$	24.17		$	19.10		$	15.70
Total return		(50.06	)%c		(12.67	)%		25.22	%		29.53	%		23.40	%		12.28	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	79,042		$	209,653		$	251,354		$	109,991		$	63,974		$	28,265
Ratio of expenses to average net assetsd		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%		0.78	%
Ratio of net investment income to average net assetsd		0.13	%		3.86	%		3.50	%		2.78	%		3.13	%		2.45	%
Portfolio turnover ratee		8	%		26	%		8	%		17	%		6	%		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.

FINANCIAL HIGHLIGHTS 59

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Spain Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	50.41		$	58.06		$	44.81		$	35.70		$	27.55		$	22.39
Income from investment operations:
Net investment incomea		0.83			1.98			1.30			1.07			0.79			0.44
Net realized and unrealized gain (loss)b		(21.67	)		(7.33	)		12.33			8.78			7.97			4.99
Total from investment operations		(20.84	)		(5.35	)		13.63			9.85			8.76			5.43
Less distributions from:
Net investment income		(1.54	)		(2.30	)		(0.38	)		(0.74	)		(0.61	)		(0.27	)
Total distributions		(1.54	)		(2.30	)		(0.38	)		(0.74	)		(0.61	)		(0.27	)
Net asset value, end of period	$	28.03		$	50.41		$	58.06		$	44.81		$	35.70		$	27.55
Total return		(42.02	)%c		(9.76	)%		30.47	%		28.09	%		31.85	%		24.28	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	155,567		$	321,349		$	522,556		$	178,130		$	66,945		$	45,456
Ratio of expenses to average net assetsd		0.56	%		0.52	%		0.51	%		0.54	%		0.57	%		0.80	%
Ratio of net investment income to average net assetsd		4.49	%		3.28	%		2.36	%		2.67	%		2.33	%		1.64	%
Portfolio turnover ratee		7	%		22	%		12	%		6	%		8	%		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.

60 2009 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. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	24.48		$	34.57		$	25.88		$	21.58		$	16.82		$	12.59
Income from investment operations:
Net investment income (loss)a		(0.04	)		0.91			1.15			0.76			0.46			0.28
Net realized and unrealized gain (loss)b		(11.66	)		(8.63	)		7.88			3.96			4.45			4.20
Total from investment operations		(11.70	)		(7.72	)		9.03			4.72			4.91			4.48
Less distributions from:
Net investment income		(0.02	)		(2.37	)		(0.34	)		(0.42	)		(0.15	)		(0.25	)
Total distributions		(0.02	)		(2.37	)		(0.34	)		(0.42	)		(0.15	)		(0.25	)
Net asset value, end of period	$	12.76		$	24.48		$	34.57		$	25.88		$	21.58		$	16.82
Total return		(47.81	)%c		(23.16	)%		35.01	%		22.16	%		29.21	%		35.81	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	81,352		$	227,654		$	573,026		$	151,427		$	61,513		$	27,758
Ratio of expenses to average net assetsd		0.55	%		0.51	%		0.51	%		0.54	%		0.58	%		0.92	%
Ratio of expenses to average net assets exclusive of foreign taxesd		n/a			n/a			n/a			n/a			0.57	%		0.79	%
Ratio of net investment income (loss) to average net assetsd		(0.50	)%		2.91	%		3.42	%		3.13	%		2.28	%		1.74	%
Portfolio turnover ratee		2	%		17	%		7	%		14	%		6	%		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.

FINANCIAL HIGHLIGHTS 61

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Switzerland Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	23.09		$	25.78		$	22.49		$	17.63		$	14.58		$	12.23
Income from investment operations:
Net investment incomea		0.03			0.49			0.36			0.27			0.22			0.09
Net realized and unrealized gain (loss)b		(8.78	)		(2.51	)		3.12			4.71			2.92			2.31
Total from investment operations		(8.75	)		(2.02	)		3.48			4.98			3.14			2.40
Less distributions from:
Net investment income		(0.07	)		(0.67	)		(0.19	)		(0.12	)		(0.09	)		(0.05	)
Total distributions		(0.07	)		(0.67	)		(0.19	)		(0.12	)		(0.09	)		(0.05	)
Net asset value, end of period	$	14.27		$	23.09		$	25.78		$	22.49		$	17.63		$	14.58
Total return		(37.97	)%c		(7.97	)%		15.53	%		28.36	%		21.54	%		19.56	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	187,298		$	366,525		$	318,998		$	188,319		$	79,324		$	41,920
Ratio of expenses to average net assetsd		0.56	%		0.52	%		0.51	%		0.54	%		0.57	%		0.79	%
Ratio of net investment income to average net assetsd		0.35	%		1.93	%		1.42	%		1.34	%		1.34	%		0.64	%
Portfolio turnover ratee		9	%		11	%		5	%		11	%		5	%		4	%

^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 2009 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. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	19.35		$	24.73		$	21.92		$	18.74		$	15.72		$	13.00
Income from investment operations:
Net investment incomea		0.21			0.83			0.84			0.97			0.60			0.48
Net realized and unrealized gain (loss)b		(9.05	)		(4.89	)		2.78			2.79			2.76			2.72
Total from investment operations		(8.84	)		(4.06	)		3.62			3.76			3.36			3.20
Less distributions from:
Net investment income		(0.34	)		(1.32	)		(0.81	)		(0.58	)		(0.34	)		(0.48	)
Total distributions		(0.34	)		(1.32	)		(0.81	)		(0.58	)		(0.34	)		(0.48	)
Net asset value, end of period	$	10.17		$	19.35		$	24.73		$	21.92		$	18.74		$	15.72
Total return		(45.92	)%c		(17.16	)%		16.77	%		20.61	%		21.53	%		24.77	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	384,285		$	882,502		$	1,127,738		$	872,409		$	464,850		$	452,870
Ratio of expenses to average net assetsd		0.56	%		0.52	%		0.51	%		0.54	%		0.57	%		0.77	%
Ratio of net investment income to average net assetsd		3.28	%		3.64	%		3.51	%		4.81	%		3.39	%		3.11	%
Portfolio turnover ratee		4	%		14	%		8	%		10	%		11	%		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 63

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 Investable Market, iShares MSCI Belgium Investable Market, iShares MSCI EMU, iShares MSCI France, iShares MSCI Germany, iShares MSCI Italy, iShares MSCI Netherlands Investable Market, 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, 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”). 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 valued pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”). Effective September 1, 2008, the Funds adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market

64 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:

• Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”);

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”);

• Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”).

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Funds. The Funds consider observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.

Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Funds do not adjust the quoted price for such instruments, even in situations where the Funds hold a large position and a sale could reasonably impact the quoted price.

Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 Prices. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 Prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Funds use one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers,

NOTES TO FINANCIAL STATEMENTS 65

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Funds in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations.

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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

The following table summarizes the inputs used in valuing the Funds’ investments as of February 28, 2009:

	Investments in Securities
iShares MSCI Index Fund	Level 1		Level 2		Level 3		Total
Austria Investable Market	$	69,784,818	$	–	$	–	$	69,784,818
Belgium Investable Market		61,963,694		–		192		61,963,886
EMU		547,392,338		–		78		547,392,416
France		107,693,230		–		–		107,693,230
Germany		302,939,305		–		–		302,939,305
Italy		74,908,297		–		–		74,908,297
Netherlands Investable Market		79,161,526		–		–		79,161,526
Spain		192,933,834		–		–		192,933,834
Sweden		88,644,326		–		–		88,644,326
Switzerland		188,231,162		–		–		188,231,162
United Kingdom		381,470,139		–		–		381,470,139

The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the six months ended February 28, 2009:

iShares MSCI Index Fund	Balance at Beginning of Period		(Amortized Premiums) Accreted Discounts		Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Net Transfers in or out			Balance at End of Period		Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at End of Period
Austria Investable Market	$	14	$	–	$	–		$	–		$	(14	)	$	–	$	–
Belgium Investable Market		–		–		–			–			192			192		192
EMU		–		–		(2,188,382	)		(49,209	)		2,237,669			78		(1,936,673	)

66 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

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

FOREIGN CURRENCY TRANSLATION

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

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

FOREIGN TAXES

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 28, 2009, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

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 28, 2009.

NOTES TO FINANCIAL STATEMENTS 67

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The Funds had tax basis net capital loss carryforwards as of August 31, 2008, the tax year-end of the Funds, as follows:

iShares MSCI Index Fund	Expiring 2009		Expiring 2010		Expiring 2011		Expiring 2012		Expiring 2013		Expiring 2014		Expiring 2015		Expiring 2016		Total
Austria Investable Market	$	336,553	$	1,291,324	$	370,948	$	855,364	$	–	$	–	$	9,795,917	$	2,587,916	$	15,238,022
Belgium Investable Market		59,876		1,677,678		117,767		175,781		33,969		–		–		1,698,444		3,763,515
EMU		–		–		–		659,648		1,873,963		–		–		–		2,533,611
France		–		2,436,748		236,944		2,400,550		–		–		158,472		335,795		5,568,509
Germany		–		8,697,227		5,469,732		8,656,712		2,241,687		–		4,227,713		3,394,735		32,687,806
Italy		–		2,648,775		848,408		541,980		527,327		–		–		472,268		5,038,758
Netherlands Investable Market		60,885		3,222,792		1,497,810		2,481,175		129,137		403,525		260,715		1,195,162		9,251,201
Spain		–		–		–		995,671		–		–		–		–		995,671
Sweden		–		713,472		1,577,551		1,149,514		–		107,613		–		100,015		3,648,165
Switzerland		–		1,970,979		1,018,305		2,149,171		354,252		–		–		–		5,492,707
United Kingdom		–		856,798		6,448,554		4,272,059		1,517,783		7,063,063		–		261,754		20,420,011

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 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

As of February 28, 2009, 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 Depreciation
Austria Investable Market	$	226,853,737	$	–	$	(157,068,919	)	$	(157,068,919	)
Belgium Investable Market		160,269,050		–		(98,305,164	)		(98,305,164	)
EMU		1,259,800,853		–		(712,408,437	)		(712,408,437	)
France		258,586,175		–		(150,892,945	)		(150,892,945	)
Germany		686,302,971		–		(383,363,666	)		(383,363,666	)
Italy		194,243,428		–		(119,335,131	)		(119,335,131	)
Netherlands Investable Market		183,286,933		–		(104,125,407	)		(104,125,407	)
Spain		404,686,210		–		(211,752,376	)		(211,752,376	)
Sweden		227,735,795		–		(139,091,469	)		(139,091,469	)
Switzerland		334,849,654		–		(146,618,492	)		(146,618,492	)
United Kingdom		849,422,942		–		(467,952,803	)		(467,952,803	)

Management has reviewed the tax positions as of February 28, 2009, inclusive of the prior three open tax return years, and has determined that no provision for income tax is required in 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 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 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 the Funds and certain other iShares Funds as follows:

Investment Advisory Fee	Aggregate Average Daily Net Assets
0.59%	First $7 billion
0.54	Over $7 billion, up to and including $11 billion
0.49	Over $11 billion, up to and including $24 billion
0.44	Over $24 billion, up to and including $48 billion
0.40	Over $48 billion

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.

NOTES TO FINANCIAL STATEMENTS 69

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 28, 2009, BGI earned securities lending agent fees as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees
Austria Investable Market	$	122,000
Belgium Investable Market		25,682
EMU		323,228
France		75,762
Germany		123,901
Italy		11,297

iShares MSCI Index Fund	Securities Lending Agent Fees
Netherlands Investable Market	$	4,909
Spain		572,792
Sweden		33,480
Switzerland		16,322
United Kingdom		18,879

Cross trades for the six months ended February 28, 2009, 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 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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.

70 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

For the six months ended February 28, 2009, 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	2,878	204	653	2,429	$	3,233,457	$	(2,302,223	)

Certain directors and officers of the Company are also officers of BGI and/or BGFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2009 were as follows:

iShares MSCI Index Fund	Purchases		Sales
Austria Investable Market	$	9,396,300	$	7,825,292
Belgium Investable Market		12,081,078		13,346,382
EMU		25,955,653		34,641,361
France		3,527,366		5,758,857
Germany		34,816,011		33,012,628
Italy		10,096,683		11,812,197
Netherlands Investable Market		11,023,429		12,647,317
Spain		17,652,272		22,262,126
Sweden		2,359,881		2,759,357
Switzerland		27,333,057		27,956,169
United Kingdom		23,441,776		26,677,223

In-kind transactions (see Note 4) for the six months ended February 28, 2009 were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Austria Investable Market	$	60,260,414	$	58,770,921
Belgium Investable Market		36,727,819		30,726,872
EMU		172,836,156		341,761,217
France		108,539,994		90,079,925
Germany		189,480,434		241,650,960
Italy		65,223,016		137,282,479
Netherlands Investable Market		27,986,099		49,642,329
Spain		111,614,181		117,522,814
Sweden		32,033,345		73,039,394
Switzerland		73,368,970		101,376,963
United Kingdom		13,645,868		113,087,643

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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.

As of February 28, 2009, the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of February 28, 2009 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. SUBSEQUENT EVENT

On April 9, 2009, Barclays Global Investors UK Holdings Limited (“Barclays”), the parent company of BGI and BGFA, entered into an agreement to sell its interest in BGFA and certain affiliated companies to Blue Sparkle, L.P., a Cayman Islands limited partnership (the “Transaction”). Blue Sparkle, L.P. is an investment vehicle for private equity funds affiliated with CVC Capital Partners Group SICAV-FIS S.A., a private equity and investment advisory firm. The Transaction is subject to certain regulatory approvals, as well as other conditions to closing.

Under the 1940 Act, completion of the Transaction will cause the automatic termination of each Fund’s current investment advisory agreement with BGFA. In order for the management of each Fund to continue uninterrupted, the Board will be asked to approve a new investment advisory agreement with BGFA. If approved by the Board, the new investment advisory agreement will be submitted to the Funds’ shareholders for their approval.

72 2009 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 Capped (FIO)

iShares FTSE NAREIT Mortgage Plus Capped (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential Plus Capped (REZ)

iShares FTSE NAREIT Retail Capped (RTL)

iShares Global Index Funds

iShares S&P Global 100 (IOO)

iShares S&P Global Clean Energy (ICLN)

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 Nuclear Energy (NUCL)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares S&P Global Timber& Forestry (WOOD)

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 China (HK Listed) (FCHI)

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria Investable Market (EWO)

iShares MSCI Belgium Investable Market (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI Chile Investable Market (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 Investable Market (EWW)

iShares MSCI Netherlands Investable Market (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 Barclays Aggregate (AGG)

iShares Barclays MBS (MBB)

iShares Barclays Short Treasury (SHV)

iShares Barclays 1-3 Year Treasury (SHY)

iShares Barclays 3-7 Year Treasury (IEI)

iShares Barclays 7-10 Year Treasury (IEF)

iShares Barclays 10-20 Year Treasury (TLH)

iShares Barclays 20+ Year Treasury (TLT)

iShares Barclays TIPS (TIP)

iShares Barclays Agency (AGZ)

iShares Barclays Credit (CFT)

iShares Barclays 1-3 Year Credit (CSJ)

iShares Barclays Intermediate Credit (CIU)

iShares iBoxx $ Investment Grade Corporate (LQD)

iShares iBoxx $ High Yield Corporate (HYG)

iShares Barclays Government/Credit (GBF)

iShares Barclays Intermediate Government/Credit (GVI)

iShares S&P National Municipal (MUB)

iShares S&P Short Term National Municipal (SUB)

iShares S&P California Municipal (CMF)

iShares S&P New York Municipal (NYF)

iShares JPMorgan USD Emerging Markets (EMB)

iShares S&P/Citigroup International Treasury (IGOV)

iShares S&P/Citigroup 1-3 Year International Treasury (ISHG)

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 FAMILY OF FUNDS 73

The iShares^® Family of Funds (Continued)

iShares International Index Funds

iShares FTSE Developed Small Cap ex-North America (IFSM)

iShares FTSE EPRA/NAREIT Developed Asia (IFAS)

iShares FTSE EPRA/NAREIT Developed Europe (IFEU)

iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. (IFGL)

iShares FTSE EPRA/NAREIT North America (IFNA)

iShares MSCI ACWI (ACWI)

iShares MSCI ACWI ex US (ACWX)

iShares MSCI All Country Asia ex Japan (AAXJ)

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 Developed ex-U.S. Property (WPS)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

iShares NYSE Index Funds

iShares NYSE Composite (NYC)

iShares NYSE 100 (NY)

iShares S&P Allocation Funds

iShares S&P Conservative (AOK)

iShares S&P Moderate (AOM)

iShares S&P Growth (AOR)

iShares S&P Aggressive (AOA)

iShares S&P Target Date Index Funds

iShares S&P Target Date Retirement Income (TGR)

iShares S&P Target Date 2010 (TZD)

iShares S&P Target Date 2015 (TZE)

iShares S&P Target Date 2020 (TZG)

iShares S&P Target Date 2025 (TZI)

iShares S&P Target Date 2030 (TZL)

iShares S&P Target Date 2035 (TZO)

iShares S&P Target Date 2040 (TZV)

iShares^® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not 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, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or 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 2009 Semi-Annual Report.

iS-0569-0409

74 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

For more information:

WWW.iSHARES.COM

1-800-iShares (1-800-474-2737)

The Shares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global investors, N.A. (BGI), neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc. nor does his company 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 company listed above.

©2009 Barclays Global Investors. All rights reserved iShares® is a registered trademark of Barclays Global investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

Investing involves risk, including possible loss of principal.

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

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-G. The Funds’ Forms N-G are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room n Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1 -800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a monthly basis on the Funds’ website.

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

BGI-SAR-82-0209

IShares

LET’S BUILD A BETTER INVESTMENT WORLD®.

BARCLAYS

GLOBAL INVESTORS

2009 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES® MSCI SERIES

FEBRUARY 28, 2009

Would you prefer to receive materials like this electronically?

See inside cover for details.

iShares MSCI Australia Index Fund

iShares MSCI Hong Kong Index Fund

iShares MSCI Japan Small Cap Index Fund

iShares MSCI Malaysia Index Fund

iShares MSCI Pacific ex-Japan Index Fund

iShares MSCI Singapore Index Fund

iShares MSCI South Korea Index Fund

iShares MSCI Taiwan Index Fund

iShares MSCI Thailand Investable Market Index Fund

iShares®

iShares®

Dear iShares Shareholder:

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Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.

Table of Contents

Fund Performance Overviews	1
Shareholder Expenses	10
Schedules of Investments	12
iShares MSCI Australia Index Fund	12
iShares MSCI Hong Kong Index Fund	15
iShares MSCI Japan Small Cap Index Fund	17
iShares MSCI Malaysia Index Fund	26
iShares MSCI Pacific ex-Japan Index Fund	28
iShares MSCI Singapore Index Fund	31
iShares MSCI South Korea Index Fund	33
iShares MSCI Taiwan Index Fund	37
iShares MSCI Thailand Investable Market Index Fund	40
Financial Statements	43
Financial Highlights	54
Notes to Financial Statements	63
iShares Family of Funds	73

Fund Performance Overview

iSHARES^® MSCI AUSTRALIA INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (49.25)%, while the total return for the Index was (49.54)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(55.44)%	(55.03)%	(55.90)%	0.67%	0.17%	0.04%	5.41%	5.05%	4.98%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(55.44)%	(55.03)%	(55.90)%	3.39%	0.83%	0.21%	69.30%	63.73%	62.57%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Financial	39.69	%
Basic Materials	22.65
Consumer Non-Cyclical	15.87
Industrial	7.31
Energy	6.40
Communications	2.72
Consumer Cyclical	2.32
Utilities	1.10
Technology	0.54
Short-Term and Other Net Assets	1.40
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
BHP Billiton Ltd.	15.57	%
Westpac Banking Corp.	7.60
Commonwealth Bank of Australia	7.05
National Australia Bank Ltd.	5.38
Woolworths Ltd.	5.15
Australia and New Zealand Banking Group Ltd.	4.38
CSL Ltd.	3.55
Westfield Group	3.46
QBE Insurance Group Ltd.	3.03
Wesfarmers Ltd.	2.85
TOTAL	58.02	%

FUND PERFORMANCE OVERVIEWS 1

Fund Performance Overview

iSHARES^® MSCI HONG KONG INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (36.00)%, while the total return for the Index was (35.78)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(46.16)%	(45.28)%	(45.97)%	0.01%	(0.44)%	0.54%	3.74%	3.51%	4.37%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(46.16)%	(45.28)%	(45.97)%	0.04%	(2.18)%	2.72%	44.41%	41.16%	53.37%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Financial	46.80	%
Utilities	20.13
Diversified	13.45
Consumer Cyclical	10.56
Industrial	6.03
Communications	1.34
Basic Materials	1.04
Technology	0.39
Short-Term and Other Net Assets	0.26
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
CLP Holdings Ltd.	10.10	%
Cheung Kong (Holdings) Ltd.	7.84
Sun Hung Kai Properties Ltd.	7.49
Hutchison Whampoa Ltd.	7.34
Hongkong Electric Holdings Ltd.	5.89
Hang Seng Bank Ltd.	5.80
Hong Kong Exchanges and Clearing Ltd.	5.49
Hong Kong and China Gas Co. Ltd. (The)	4.14
Esprit Holdings Ltd.	3.93
Li & Fung Ltd.	3.63
TOTAL	61.65	%

2 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

Performance as of February 28, 2009

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 six-month period ended February 28, 2009, the total return for the Fund was (25.23)%, while the total return for the Index was (25.48)%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/09			Inception to 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(32.39)%	(34.21)%	(32.51)%	(29.02)%	(30.97)%	(29.03)%	(33.59)%	(35.78)%	(33.61)%

Total returns for the period since inception are calculated from the inception date of the Fund (12/20/07). “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 primary 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 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 the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Industrial	25.00	%
Consumer Cyclical	24.03
Financial	19.54
Consumer Non-Cyclical	14.66
Basic Materials	9.07
Communications	3.71
Technology	2.59
Utilities	0.86
Energy	0.10
Short-Term and Other Net Assets	0.44
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Sagami Railway Co. Ltd.	0.63	%
Rinnai Corp.	0.54
Awa Bank Ltd. (The)	0.54
AirWater Inc.	0.54
GSYuasa Corp.	0.52
Rengo Co. Ltd.	0.52
Shiga Bank Ltd.	0.51
Daishi Bank Ltd. (The)	0.50
Hyakugo Bank Ltd. (The)	0.49
Nipro Corp.	0.48
TOTAL	5.27	%

FUND PERFORMANCE OVERVIEWS 3

Fund Performance Overview

iSHARES^® MSCI MALAYSIA INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (23.62)%, while the total return for the Index was (23.48)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(42.63)%	(41.32)%	(42.53)%	3.01%	2.68%	3.56%	11.75%	9.51%	11.44%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(42.63)%	(41.32)%	(42.53)%	16.00%	14.15%	19.12%	203.63%	148.13%	195.52%

“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 primary 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 primary stock exchange on which it is listed, the market return is calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Financial	30.50	%
Consumer Non-Cyclical	17.94
Consumer Cyclical	13.60
Industrial	12.52
Utilities	8.89
Communications	7.39
Diversified	7.11
Energy	0.95
Basic Materials	0.56
Short-Term and Other Net Assets	0.54
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Bumiputra-Commerce Holdings Bhd	9.57	%
Sime Darby Bhd	7.11
IOI Corp. Bhd	6.58
Malayan Banking Bhd	6.53
MISC Bhd	4.95
Public Bank Bhd	4.83
Tenaga Nasional Bhd	4.38
Genting Bhd	4.02
DiGi.Com Bhd	3.45
Resorts World Bhd	3.38
TOTAL	54.80	%

4 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (46.19)%, while the total return for the Index was (46.41)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(52.93)%	(52.47)%	(53.33)%	0.48%	(0.09)%	0.22%	6.98%	6.71%	6.81%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(52.93)%	(52.47)%	(53.33)%	2.43%	(0.46)%	1.12%	64.21%	61.20%	62.31%

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (10/26/01), the NAV of the Fund is used as a proxy for the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Financial	41.90	%
Basic Materials	14.70
Consumer Non-Cyclical	11.06
Industrial	7.52
Utilities	5.62
Communications	4.87
Consumer Cyclical	4.76
Energy	4.08
Diversified	4.00
Technology	0.43
Short-Term and Other Net Assets	1.06
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
BHP Billiton Ltd. (Australia)	9.96	%
Westpac Banking Corp. (Australia)	4.86
Commonwealth Bank of Australia (Australia)	4.52
National Australia Bank Ltd. (Australia)	3.44
Woolworths Ltd. (Australia)	3.29
Australia and New Zealand Banking Group Ltd. (Australia)	2.80
CLP Holdings Ltd. (Hong Kong)	2.44
CSL Ltd. (Australia)	2.26
Westfield Group (Australia)	2.20
Singapore Telecommunications Ltd. (Singapore)	2.04
TOTAL	37.81	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI SINGAPORE INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (47.13)%, while the total return for the Index was (47.37)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(51.30)%	(50.40)%	(51.43)%	1.99%	1.51%	1.83%	3.05%	2.99%	2.83%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(51.30)%	(50.40)%	(51.43)%	10.35%	7.77%	9.50%	35.08%	34.28%	32.18%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Financial	47.21	%
Communications	20.94
Industrial	9.87
Consumer Non-Cyclical	8.23
Diversified	6.57
Consumer Cyclical	6.01
Short-Term and Other Net Assets	1.17
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Singapore Telecommunications Ltd.	17.00	%
DBS Group Holdings Ltd.	11.96
United Overseas Bank Ltd.	11.13
Oversea-Chinese Banking Corp.	8.99
Keppel Corp. Ltd.	5.01
Singapore Airlines Ltd.	4.79
Singapore Press Holdings Ltd.	3.94
Singapore Exchange Ltd.	3.54
CapitaLand Ltd.	3.09
Singapore Technologies Engineering Ltd.	3.09
TOTAL	72.54	%

6 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SOUTH KOREA INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (48.26)%, while the total return for the Index was (48.25)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(61.25)%	(61.22)%	(61.21)%	(3.17)%	(3.99)%	(2.57)%	1.74%	1.38%	2.23%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(61.25)%	(61.22)%	(61.21)%	(14.89)%	(18.43)%	(12.19)%	16.40%	12.85%	21.44%

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (5/12/00), the NAV of the Fund is used as a proxy for the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Technology	21.69	%
Industrial	18.29
Financial	14.44
Consumer Cyclical	12.17
Basic Materials	11.13
Communications	7.42
Consumer Non-Cyclical	5.74
Energy	3.39
Utilities	2.47
Diversified	1.78
Short-Term and Other Net Assets	1.48
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Samsung Electronics Co. Ltd.	18.23	%
POSCO	6.61
KB Financial Group Inc.	3.41
KT&G Corp.	3.04
Shinhan Financial Group Co. Ltd.	2.68
Hyundai Heavy Industries Co. Ltd.	2.59
Hyundai Motor Co. Ltd.	2.58
LG Electronics Inc.	2.34
Korea Electric Power Corp.	2.13
Samsung Fire & Marine Insurance Co. Ltd.	2.01
TOTAL	45.62	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI TAIWAN INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (42.20)%, while the total return for the Index was (42.27)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(51.35)%	(51.81)%	(51.27)%	(8.40)%	(9.05)%	(7.76)%	(9.13)%	(9.40)%	(8.35)%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(51.35)%	(51.81)%	(51.27)%	(35.50)%	(37.78)%	(33.21)%	(56.53)%	(57.61)%	(53.15)%

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/23/00), the NAV of the Fund is used as a proxy for the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Technology	39.44	%
Industrial	20.62
Financial	14.65
Basic Materials	11.85
Communications	7.09
Consumer Cyclical	3.56
Consumer Non-Cyclical	1.42
Energy	1.26
Short-Term and Other Net Assets	0.11
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd.	14.89	%
Hon Hai Precision Industry Co. Ltd.	6.56
Chunghwa Telecom Co. Ltd.	4.85
MediaTek Inc.	4.47
HTC Corp.	3.94
China Steel Corp.	3.38
AU Optronics Corp.	3.03
Formosa Plastics Corp.	3.02
Nan Ya Plastic Corp.	2.66
Cathay Financial Holding Co. Ltd.	2.64
TOTAL	49.44	%

8 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2009

The iShares MSCI Thailand Investable Market 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 Thailand Investable Market Index^SM (the “Index”). The Index is a free float adjusted market capitalization index designed to measure broad based equity market performance in Thailand. 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 28, 2009, the total return for the Fund was (42.20)%, while the total return for the Index was (42.14)%.

Cumulative Total Returns
Inception to 2/28/09
NAV	MARKET	INDEX
(55.14)%	(55.29)%	(55.11)%

“Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated and are calculated from an inception date of 3/26/08.

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/28/08), the NAV of the Fund is used as a proxy for the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Financial	31.42	%
Energy	28.57
Communications	11.95
Industrial	7.40
Consumer Cyclical	7.11
Basic Materials	4.64
Consumer Non-Cyclical	4.26
Utilities	3.91
Technology	0.24
Short-Term and Other Net Assets	0.50
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
PTT PCL NVDR	12.24	%
PTT Exploration & Production PCL NVDR	10.07
Bangkok Bank PCL NVDR	9.08
Advanced Info Service PCL NVDR	6.56
Kasikornbank PCL NVDR	5.75
Siam Commercial Bank PCL NVDR	5.59
Siam Cement PCL NVDR	3.63
Banpu PCL NVDR	3.46
Bank of Ayudhya PCL NVDR	3.25
CP All PCL NVDR	2.98
TOTAL	62.61	%

FUND PERFORMANCE OVERVIEWS 9

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, 2008 to February 28, 2009.

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 (9/1/08)	Ending Account Value (2/28/09)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/08 to 2/28/09)
Australia
Actual	$1,000.00	$   507.50	0.55	%	$2.06
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.55		2.76
Hong Kong
Actual	1,000.00	640.00	0.56		2.28
Hypothetical (5% return before expenses)	1,000.00	1,022.00	0.56		2.81
Japan Small Cap
Actual	1,000.00	747.70	0.56		2.43
Hypothetical (5% return before expenses)	1,000.00	1,022.00	0.56		2.81
Malaysia
Actual	1,000.00	763.80	0.56		2.45
Hypothetical (5% return before expenses)	1,000.00	1,022.00	0.56		2.81

10 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (9/1/08)	Ending Account Value (2/28/09)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/08 to 2/28/09)
Pacific ex-Japan
Actual	$1,000.00	$   538.10	0.50	%	$1.91
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.50		2.51
Singapore
Actual	1,000.00	528.70	0.56		2.12
Hypothetical (5% return before expenses)	1,000.00	1,022.00	0.56		2.81
South Korea
Actual	1,000.00	517.40	0.67		2.52
Hypothetical (5% return before expenses)	1,000.00	1,021.50	0.67		3.36
Taiwan
Actual	1,000.00	578.00	0.76		2.97
Hypothetical (5% return before expenses)	1,000.00	1,021.00	0.76		3.81
Thailand Investable Market
Actual	1,000.00	578.00	0.67		2.62
Hypothetical (5% return before expenses)	1,000.00	1,021.50	0.67		3.36

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

SHAREHOLDER EXPENSES 11

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 98.60%
AIRLINES – 0.28%
Qantas Airways Ltd.	1,197,190	$	1,196,951
			1,196,951
APPAREL – 0.18%
Billabong International Ltd.	176,700		792,451
			792,451
BANKS – 25.81%
Australia and New Zealand Banking Group Ltd.	2,223,950		18,910,455
Bendigo and Adelaide Bank Ltd.	313,880		1,289,358
Commonwealth Bank of Australia	1,599,800		30,456,560
National Australia Bank Ltd.	2,033,760		23,230,904
Suncorp-Metway Ltd.	1,212,374		4,074,002
Suncorp-Metway Ltd. Newa	209,639		668,300
Westpac Banking Corp.	3,040,000		32,802,137
			111,431,716
BEVERAGES – 2.91%
Coca-Cola Amatil Ltd.	602,300		3,447,623
Foster’s Group Ltd.	2,090,190		7,357,601
Lion Nathan Ltd.	321,100		1,755,953
			12,561,177
BIOTECHNOLOGY – 0.70%
Sonic Healthcare Ltd.	395,010		3,028,226
			3,028,226
BUILDING MATERIALS – 0.70%
Boral Ltd.	636,310		1,150,414
CSR Ltd.	1,405,240		888,760
James Hardie Industries NV	467,400		991,347
			3,030,521
CHEMICALS – 0.83%
Incitec Pivot Ltd.	1,833,690		2,553,767
Nufarm Ltd.	155,610		1,018,967
			3,572,734
COMMERCIAL SERVICES – 2.30%
Brambles Ltd.	1,507,840		4,450,370
Macquarie Infrastructure Group	2,605,280		1,714,315
Transurban Group	1,313,470		3,750,823
			9,915,508

Security	Shares	Value
COMPUTERS – 0.54%
Computershare Ltd.	519,460	$	2,339,592
			2,339,592
DIVERSIFIED FINANCIAL SERVICES – 1.66%
ASX Ltd.	186,770		3,154,768
Macquarie Group Ltd.b	307,230		3,332,731
Perpetual Ltd.	41,420		677,935
			7,165,434
ELECTRIC – 0.94%
AGL Energy Ltd.	483,050		4,076,560
			4,076,560
ELECTRIC - DISTRIBUTION – 0.16%
SP AusNet	1,050,890		671,361
			671,361
ENGINEERING & CONSTRUCTION – 0.84%
Leighton Holdings Ltd.b	160,360		1,950,572
WorleyParsons Ltd.	163,780		1,668,862
			3,619,434
ENTERTAINMENT – 1.31%
Aristocrat Leisure Ltd.	346,560		821,393
Tabcorp Holdings Ltd.	635,740		2,591,189
Tatts Group Ltd.	1,231,200		2,241,674
			5,654,256
FOOD – 5.92%
Goodman Fielder Ltd.	1,442,670		1,064,505
Metcash Ltd.	841,130		2,246,148
Woolworths Ltd.	1,331,710		22,238,943
			25,549,596
HEALTH CARE - PRODUCTS – 0.49%
Cochlear Ltd.	61,180		2,091,039
			2,091,039
INSURANCE – 6.09%
AMP Ltd.	2,116,790		6,531,664
AXA Asia Pacific Holdings Ltd.	932,520		1,834,880
Insurance Australia Group Ltd.	2,214,910		4,867,584
QBE Insurance Group Ltd.	1,073,690		13,073,766
			26,307,894

12 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2009

Security	Shares	Value
IRON & STEEL – 0.54%
BlueScope Steel Ltd.	953,230	$	1,358,005
OneSteel Ltd.	908,960		987,171
			2,345,176
LODGING – 0.39%
Crown Ltd.b	513,016		1,700,972
			1,700,972
MANUFACTURING – 4.02%
Orica Ltd.	384,370		3,263,423
Wesfarmers Ltd.	1,095,889		12,321,913
Wesfarmers Ltd. Partially Protected	158,080		1,767,315
			17,352,651
MEDIA – 0.21%
Fairfax Media Ltd.b	1,488,840		884,565
			884,565
METAL FABRICATE & HARDWARE – 0.43%
Sims Metal Management Ltd.	167,580		1,867,100
			1,867,100
MINING – 21.28%
Alumina Ltd.	1,578,140		1,214,875
BHP Billiton Ltd.	3,649,140		67,210,027
Fortescue Metals Group Ltd.a,b	1,382,820		2,341,049
Newcrest Mining Ltd.	520,980		10,311,014
OZ Minerals Ltd.	3,504,384		1,410,429
Rio Tinto Ltd.b	310,460		9,371,441
			91,858,835
OIL & GAS – 6.40%
Caltex Australia Ltd.	144,400		867,150
Origin Energy Ltd.	960,640		8,346,386
Santos Ltd.	636,120		6,286,780
Woodside Petroleum Ltd.	530,100		12,123,827
			27,624,143
PACKAGING & CONTAINERS – 0.59%
Amcor Ltd.	911,810		2,563,043
			2,563,043
PHARMACEUTICALS – 3.55%
CSL Ltd.	653,600		15,307,469
			15,307,469

Security	Shares	Value
REAL ESTATE – 5.58%
Dexus Property Group	3,810,640	$	1,704,099
Goodman Group	2,879,450		478,280
GPT Group (The)	4,843,860		1,454,415
Lend Lease Corp. Ltd.	474,620		1,637,339
Mirvac Group	1,745,910		948,068
Stockland Corp. Ltd.	1,692,330		2,940,714
Westfield Group	2,195,070		14,934,713
			24,097,628
REAL ESTATE INVESTMENT TRUSTS – 0.55%
CFS Retail Property Trustb	1,875,490		2,036,867
Macquarie Office Trust	4,527,489		347,086
			2,383,953
RETAIL – 0.16%
Harvey Norman Holdings Ltd.b	566,200		690,879
			690,879
TELECOMMUNICATIONS – 2.51%
Telstra Corp. Ltd.	4,774,890		10,829,057
			10,829,057
TRANSPORTATION – 0.73%
Macquarie Airports	740,050		732,810
Toll Holdings Ltd.	710,220		2,427,424
			3,160,234
TOTAL COMMON STOCKS (Cost: $974,524,471)			425,670,155
SHORT-TERM INVESTMENTS – 3.39%
MONEY MARKET FUNDS – 3.39%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	12,208,208		12,208,208
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	2,040,855		2,040,855
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	388,782		388,782
			14,637,845

SCHEDULES OF INVESTMENTS 13

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2009

	Value
TOTAL SHORT-TERM INVESTMENTS
(Cost: $14,637,845)	$	14,637,845
TOTAL INVESTMENTS IN SECURITIES – 101.99%
(Cost: $989,162,316)		440,308,000
Other Assets, Less Liabilities – (1.99)%		(8,573,034	)
NET ASSETS – 100.00%	$	431,734,966

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

14 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.74%
AIRLINES – 0.86%
Cathay Pacific Airways Ltd.a	8,670,000	$	9,078,183
			9,078,183
APPAREL – 0.89%
Yue Yuen Industrial Holdings Ltd.a	5,058,500		9,471,356
			9,471,356
BANKS – 11.10%
Bank of East Asia Ltd.	10,115,100		21,208,723
BOC Hong Kong (Holdings) Ltd.	26,732,500		26,956,911
Hang Seng Bank Ltd.a	5,491,000		61,601,955
Wing Hang Bank Ltd.a	1,445,000		8,114,837
			117,882,426
CHEMICALS – 0.67%
Kingboard Chemical Holdings Co. Ltd.	4,335,000		7,155,218
			7,155,218
DISTRIBUTION & WHOLESALE – 7.56%
Esprit Holdings Ltd.	7,658,500		41,724,797
Li & Fung Ltd.a	17,341,000		38,506,237
			80,231,034
DIVERSIFIED FINANCIAL SERVICES – 5.49%
Hong Kong Exchanges and Clearing Ltd.a	7,225,000		58,275,896
			58,275,896
ELECTRIC – 15.99%
CLP Holdings Ltd.	14,450,200		107,236,587
Hongkong Electric Holdings Ltd.	10,115,000		62,608,157
			169,844,744
ENGINEERING & CONSTRUCTION – 3.01%
Cheung Kong Infrastructure Holdings Ltd.a	2,890,000		11,012,328
Hong Kong Aircraft Engineering Co. Ltd.a	578,000		5,213,620
New World Development Co. Ltd.	17,340,800		15,764,567
			31,990,515

Security	Shares	Value
GAS – 4.14%
Hong Kong and China Gas Co. Ltd. (The)a	28,900,712	$	43,975,861
			43,975,861
HOLDING COMPANIES - DIVERSIFIED – 13.45%
Hutchison Whampoa Ltd.	14,742,800		77,944,887
NWS Holdings Ltd.	5,780,000		7,423,539
Swire Pacific Ltd. Class A	5,780,000		35,925,157
Wharf Holdings Ltd. (The)	10,115,500		21,496,530
			142,790,113
LODGING – 0.88%
Shangri-La Asia Ltd.a	8,672,000		9,337,477
			9,337,477
MEDIA – 0.65%
Television Broadcasts Ltd.	1,995,000		6,945,931
			6,945,931
MINING – 0.37%
Mongolia Energy Corp. Ltd.b	14,450,000		3,931,643
			3,931,643
REAL ESTATE – 27.34%
Cheung Kong (Holdings) Ltd.	10,115,000		83,281,893
Chinese Estates Holdings Ltd.a	7,225,000		8,254,587
Hang Lung Development Co. Ltd.a	6,239,000		16,894,995
Hang Lung Properties Ltd.	14,950,000		28,878,645
Henderson Land Development Co. Ltd.	7,775,332		26,269,030
Hopewell Holdings Ltd.a	4,335,000		12,298,031
Hysan Development Co. Ltd.	4,335,000		6,640,937
Kerry Properties Ltd.	4,335,000		8,250,861
Sino Land Co. Ltd.	11,560,000		9,078,183
Sun Hung Kai Properties Ltd.	10,115,000		79,564,533
Wheelock and Co. Ltd.	6,452,000		10,899,070
			290,310,765
REAL ESTATE INVESTMENT TRUSTS – 2.87%
Link REIT (The)a	15,895,000		30,458,123
			30,458,123

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2009

Security	Shares	Value
RETAIL – 0.37%
Lifestyle International Holdings Ltd.a	5,057,500	$	3,906,488
			3,906,488
SEMICONDUCTORS – 0.39%
ASM Pacific Technology Ltd.a	1,445,000		4,136,610
			4,136,610
TELECOMMUNICATIONS – 0.69%
Foxconn International Holdings Ltd.b	14,450,000		4,285,677
Hutchison Telecommunications International Ltd.a	13,005,000		3,052,148
			7,337,825
TRANSPORTATION – 3.02%
MTR Corp. Ltd.a	10,115,083		22,669,556
Orient Overseas International Ltd.a	1,445,200		3,354,473
Pacific Basin Shipping Ltd.	13,005,000		6,087,525
			32,111,554
TOTAL COMMON STOCKS (Cost: $1,961,807,436)			1,059,171,762
SHORT-TERM INVESTMENTS – 12.08%
MONEY MARKET FUNDS – 12.08%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	109,857,216		109,857,216
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	18,364,907		18,364,907
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	60,424		60,424
			128,282,547

	Value
TOTAL SHORT-TERM INVESTMENTS
(Cost: $128,282,547)	$	128,282,547
TOTAL INVESTMENTS IN SECURITIES – 111.82%
(Cost: $2,090,089,983)		1,187,454,309
Other Assets, Less Liabilities – (11.82)%		(125,563,960	)
NET ASSETS – 100.00%	$	1,061,890,349

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

16 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.56%
ADVERTISING – 0.42%
Asatsu-DK Inc.	2,800	$	52,998
Moshi Moshi Hotline Inc.	2,100		41,294
			94,292
AEROSPACE & DEFENSE – 0.12%
Japan Aviation Electronics Industry Ltd.	7,000		27,186
			27,186
AGRICULTURE – 0.56%
Hokuto Corp.	2,100		41,187
Sakata Seed Corp.	6,300		83,446
			124,633
APPAREL – 1.28%
Descente Ltd.	7,000		24,682
Gunze Ltd.	14,000		43,640
Japan Wool Textile Co. Ltd. (The)	7,000		39,276
Katakura Industries Co. Ltd.	2,800		23,723
Sanei-International Co. Ltd.	1,400		7,941
Sanyo Shokai Ltd.a	7,000		21,391
Tokyo Style Co. Ltd.	7,000		39,992
Wacoal Holdings Corp.	7,000		85,492
			286,137
AUTO MANUFACTURERS – 0.68%
Kanto Auto Works Ltd.	4,200		35,971
Nissan Shatai Co. Ltd.	7,000		40,707
Shinmaywa Industries Ltd.	14,000		28,760
Toyota Auto Body Co. Ltd.	3,500		47,790
			153,228
AUTO PARTS & EQUIPMENT – 2.61%
Aisan Industry Co. Ltd.	2,100		8,692
Akebono Brake Industry Co. Ltd.a	5,600		28,502
Calsonic Kansei Corp.	14,000		11,590
Exedy Corp.	2,800		36,372
FCC Co. Ltd.	3,500		36,164
Futaba Industrial Co. Ltd.	4,200		12,105
Kayaba Industry Co. Ltd.	14,000		18,744
Keihin Corp.	3,500		33,911
Koito Manufacturing Co. Ltd.	7,000		43,998
Musashi Seimitsu Industry Co. Ltd.	2,100		20,604
Nifco Inc.	3,500		32,158

Security	Shares	Value
Nissin Kogyo Co. Ltd.	3,500	$	32,480
Press Kogyo Co. Ltd.	7,000		5,652
Riken Corp.	14,000		26,613
Sanden Corp.	14,000		17,027
Showa Corp.	5,600		16,598
T.RAD Co. Ltd.	7,000		7,297
Takata Corp.	2,800		17,714
Topre Corp.	5,600		40,063
Toyo Tire & Rubber Co. Ltd.	14,000		16,312
TS Tech Co. Ltd.	4,200		27,644
Unipres Corp.	2,800		20,089
Yokohama Rubber Co. Ltd. (The)	21,000		72,543
			582,872
BANKS – 13.09%
Aichi Bank Ltd. (The)	700		47,718
Akita Bank Ltd. (The)	21,000		75,119
Aomori Bank Ltd. (The)	7,000		26,256
Awa Bank Ltd. (The)	21,000		120,405
Bank of Ikeda Ltd. (The)b	1,400		54,801
Bank of Iwate Ltd. (The)	1,400		76,836
Bank of Nagoya Ltd. (The)	14,000		74,403
Bank of Okinawa Ltd. (The)	2,100		74,046
Bank of Saga Ltd. (The)	14,000		45,501
Bank of the Ryukyus Ltd.	3,500		29,582
Chiba Kogyo Bank Ltd. (The)b	3,500		35,091
Chukyo Bank Ltd. (The)	14,000		45,787
Daishi Bank Ltd. (The)	28,000		111,319
Ehime Bank Ltd. (The)	14,000		41,494
Eighteenth Bank Ltd. (The)	14,000		47,074
Fukui Bank Ltd. (The)	28,000		91,287
Higashi-Nippon Bank Ltd. (The)	14,000		38,060
Higo Bank Ltd. (The)	14,000		79,268
Hokkoku Bank Ltd. (The)	21,000		68,251
Hokuetsu Bank Ltd. (The)	21,000		35,628
Hyakugo Bank Ltd. (The)	21,000		110,103
Hyakujushi Bank Ltd. (The)	21,000		99,586
Juroku Bank Ltd. (The)	28,000		91,001
Kagoshima Bank Ltd. (The)	14,000		99,443
Kansai Urban Banking Corp.	14,000		20,747
Kanto Tsukuba Bank Ltd. (The)	4,900		9,916
Keiyo Bank Ltd. (The)	21,000		97,654
Kiyo Holdings Inc.	56,000		66,391

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2009

Security	Shares	Value
Michinoku Bank Ltd. (The)	14,000	$	30,048
Mie Bank Ltd. (The)	7,000		21,248
Minato Bank Ltd. (The)	14,000		21,176
Miyazaki Bank Ltd. (The)	14,000		51,653
Musashino Bank Ltd. (The)	2,800		83,275
Nanto Bank Ltd. (The)	14,000		73,688
Ogaki Kyoritsu Bank Ltd. (The)	21,000		91,001
Oita Bank Ltd. (The)	14,000		76,263
San-in Godo Bank Ltd. (The)	14,000		100,158
Shiga Bank Ltd.	21,000		114,395
Shikoku Bank Ltd. (The)	14,000		58,092
Shonai Bank Ltd. (The)	7,000		11,447
Tochigi Bank Ltd. (The)	7,000		35,127
Toho Bank Ltd. (The)	21,000		81,987
Tokushima Bank Ltd. (The)	7,000		33,982
Tokyo Tomin Bank Ltd. (The)	2,800		41,437
Yachiyo Bank Ltd. (The)	1,400		47,790
Yamagata Bank Ltd. (The)	14,000		70,540
Yamanashi Chuo Bank Ltd. (The)	14,000		72,973
			2,929,047
BEVERAGES – 0.67%
Kagome Co. Ltd.	6,300		93,040
Takara Holdings Inc.	14,000		57,376
			150,416
BIOTECHNOLOGY – 0.11%
AnGes MG Inc.b	14		11,590
Takara Bio Inc.b	7		12,684
			24,274
BUILDING MATERIALS – 1.98%
Central Glass Co. Ltd.	21,000		55,159
Chofu Seisakusho Co. Ltd.	2,100		41,680
Nichias Corp.	7,000		14,451
Rinnai Corp.	3,500		121,979
Sanwa Holdings Corp.	21,000		53,012
Sumitomo Osaka Cement Co. Ltd.	35,000		75,834
Takara Standard Co. Ltd.	14,000		80,413
			442,528
CHEMICALS – 5.54%
Adeka Corp.	8,400		45,758
Aica Kogyo Co. Ltd.	7,000		60,167
AirWater Inc.	14,000		120,047
C. Uyemura & Co. Ltd.	700		10,302

Security	Shares	Value
Chugoku Marine Paints Ltd.	7,000	$	45,930
Dainichiseika Color & Chemicals Manufacturing Co. Ltd.	7,000		15,668
Earth Chemical Co. Ltd.	1,400		37,989
Fujimi Inc.	2,100		25,133
Ishihara Sangyo Kaisha Ltd.b	35,000		20,389
Lintec Corp.	4,200		47,604
Nihon Nohyaku Co. Ltd.a	7,000		48,362
Nihon Parkerizing Co. Ltd.	7,000		62,241
Nippon Carbon Co. Ltd.	14,000		23,895
Nippon Kayaku Co. Ltd.	14,000		62,957
Nippon Paint Co. Ltd.	21,000		76,621
Nippon Shokubai Co. Ltd.	7,000		43,426
Nippon Soda Co. Ltd.	14,000		40,350
Nippon Synthetic Chemical Industry Co. Ltd. (The)	7,000		15,167
NOF Corp.	14,000		48,219
Sakai Chemical Industry Co. Ltd.	7,000		19,746
Sumitomo Bakelite Co. Ltd.	21,000		86,065
Taiyo Ink Manufacturing Co. Ltd.	1,400		25,798
Takasago International Corp.	7,000		34,340
Toagosei Co. Ltd.	21,000		47,647
Tokai Carbon Co. Ltd.	14,000		44,785
Tokyo Ohka Kogyo Co. Ltd.	4,200		55,073
Toyo Ink Manufacturing Co. Ltd.	21,000		37,989
Zeon Corp.	14,000		37,488
			1,239,156
COMMERCIAL SERVICES – 2.11%
Aeon Delight Co. Ltd.	1,400		18,114
Daiseki Co. Ltd.	2,860		40,571
Meitec Corp.	3,500		47,826
Nichii Gakkan Co.	2,100		32,237
Nishio Rent All Co. Ltd.	2,100		11,075
Nissha Printing Co. Ltd.	2,100		52,798
Park 24 Co. Ltd.	9,100		62,592
Pasona Group Inc.	28		14,766
Sohgo Security Services Co. Ltd.	5,600		46,016
So-net M3 Inc.	7		23,251
TKC Corp.	2,100		43,140
Toppan Forms Co. Ltd.	5,600		61,354
Zenrin Co. Ltd.	2,100		19,059
			472,799

18 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2009

Security	Shares	Value
COMPUTERS – 0.65%
DTS Corp.	2,800	$	18,028
Hitachi Information Systems Ltd.	2,100		33,803
Net One Systems Co. Ltd.	49		68,959
NS Solutions Corp.	2,100		23,888
			144,678
COSMETICS & PERSONAL CARE – 1.31%
Aderans Holdings Co. Ltd.	3,500		24,181
Fancl Corp.	3,500		40,135
Kose Corp.	2,800		58,521
Lion Corp.	14,000		70,540
Mandom Corp.	4,200		71,470
Pigeon Corp.	1,400		27,143
			291,990
DISTRIBUTION & WHOLESALE – 2.13%
Doshisha Co. Ltd.	2,100		23,566
Hanwa Co. Ltd.	21,000		57,520
Inaba Denki Sangyo Co. Ltd.	2,800		65,389
Itochu Enex Co. Ltd.	7,700		47,926
Iwatani Corp.	28,000		59,523
Japan Pulp & Paper Co. Ltd.	14,000		38,060
Japan Wind Development Co. Ltd.	7		19,767
JFE Shoji Holdings Inc.	7,000		18,529
Kanematsu Corp.b	42,000		33,052
Matsuda Sangyo Co. Ltd.	1,560		17,139
Nagase & Co. Ltd.	7,000		55,588
Sumikin Bussan Corp.	7,000		16,025
Trusco Nakayama Corp.	2,100		23,501
			475,585
DIVERSIFIED FINANCIAL SERVICES – 1.93%
Aizawa Securities Co. Ltd.	4,200		5,194
Century Leasing System Inc.	2,100		11,440
Fuyo General Lease Co. Ltd.	1,400		16,583
Hitachi Credit Corp.	3,500		30,548
IBJ Leasing Co. Ltd.	2,100		20,668
Ichiyoshi Securities Co. Ltd.	4,200		19,016
Jaccs Co. Ltd.b	14,000		24,038
Japan Securities Finance Co. Ltd.	7,700		24,947
Marusan Securities Co. Ltd.	6,300		25,433
Mizuho Investors Securities Co. Ltd.	28,000		21,749
Okasan Securities Group Inc.	14,000		46,788
OMC Card Inc.b	7,000		10,230

Security	Shares	Value
Orient Corp.b	21,000	$	15,024
Osaka Securities Exchange Co. Ltd.	21		70,397
Ricoh Leasing Co. Ltd.	2,100		27,193
SPARX Group Co. Ltd.	77		4,989
Tokai Tokyo Securities Co. Ltd.	21,000		35,628
Tokyo Leasing Co. Ltd.	2,800		13,021
Toyo Securities Co. Ltd.	7,000		9,444
			432,330
ELECTRIC – 0.38%
Okinawa Electric Power Co. Inc. (The)	1,400		85,850
			85,850
ELECTRICAL COMPONENTS & EQUIPMENT – 1.46%
Fujikura Ltd.	28,000		61,812
Funai Electric Co. Ltd.	2,100		54,729
GS Yuasa Corp.a	28,000		116,756
Hitachi Cable Ltd.	14,000		21,463
Shinko Electric Co. Ltd.	14,000		39,348
Toshiba Tec Corp.	14,000		33,338
			327,446
ELECTRONICS – 4.97%
A&D Co. Ltd.	2,100		4,615
Anritsu Corp.	14,000		31,765
Chiyoda Integre Co. Ltd.	2,100		23,265
CMK Corp.	4,900		13,121
Cosel Co. Ltd.	3,500		28,796
Dainippon Screen Manufacturing Co. Ltd.	21,000		29,189
Eizo Nanao Corp.	2,100		38,783
Fujitsu General Ltd.	7,000		10,517
Furuno Electric Co. Ltd.	2,800		12,277
Futaba Corp.	3,500		48,899
Hamamatsu Photonics K.K.	5,600		90,887
HORIBA Ltd.	2,800		45,873
Hosiden Corp.	5,600		59,809
JEOL Ltd.	7,000		18,529
Kaga Electronics Co. Ltd.	3,500		32,873
Koa Corp.	4,900		23,187
Kuroda Electric Co. Ltd.	3,500		19,817
Macnica Inc.	2,100		23,673
Meiko Electronics Co. Ltd.	700		4,471
Micronics Japan Co. Ltd.	1,400		8,871
NEC Tokin Corp.b	7,000		11,161

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2009

Security	Shares	Value
Nichicon Corp.	6,300	$	41,208
Nihon Dempa Kogyo Co. Ltd.	1,400		17,485
Nippon Chemi-Con Corp.	14,000		22,607
Nitto Kogyo Corp.	2,800		20,604
Ryosan Co. Ltd.	4,200		92,503
Sanyo Denki Co. Ltd.	7,000		12,663
Sodick Co. Ltd.	6,300		8,435
Star Micronics Co. Ltd.	4,200		35,628
Taiyo Yuden Co. Ltd.	7,000		42,210
Tamura Corp.	7,000		12,877
Tokyo Seimitsu Co. Ltd.a	3,500		27,043
Toyo Corp.	3,500		30,978
ULVAC Inc.a	2,800		42,896
Wacom Co. Ltd.	35		28,688
Yamatake Corp.	5,600		95,007
			1,111,210
ENGINEERING & CONSTRUCTION – 4.57%
Chiyoda Corp.	14,000		56,518
Chudenko Corp.	2,800		42,639
COMSYS Holdings Corp.	14,000		101,446
Japan Airport Terminal Co. Ltd.	5,600		62,213
Kandenko Co. Ltd.	7,000		44,570
Kyowa Exeo Corp.	7,000		57,806
Maeda Corp.	21,000		64,817
Maeda Road Construction Co. Ltd.	7,000		57,233
Nippo Corp.	7,000		56,303
Nishimatsu Construction Co. Ltd.	28,000		24,038
Okumura Corp.	14,000		53,513
Penta-Ocean Construction Co. Ltd.b	24,500		29,547
Shinko Plantech Co. Ltd.	3,500		19,495
SHO-BOND Holdings Co. Ltd.	2,800		54,658
Taihei Kogyo Co. Ltd.	7,000		15,811
Taikisha Ltd.	3,500		42,603
Takasago Thermal Engineering Co. Ltd.	7,000		38,346
Takuma Co. Ltd.	7,000		9,372
Toda Corp.	21,000		55,373
Tokyu Construction Co. Ltd.	8,820		19,922
Toshiba Plant Systems & Services Corp.	7,000		66,748
Toyo Construction Co. Ltd.b	35,000		11,447

Security	Shares	Value
Toyo Engineering Corp.	14,000	$	38,633
			1,023,051
ENTERTAINMENT – 1.11%
Avex Group Holdings Inc.	3,500		31,621
Resorttrust Inc.	3,500		30,763
Shochiku Co. Ltd.	7,000		48,577
Toei Co. Ltd.	7,000		28,545
Tokyotokeiba Co. Ltd.	14,000		17,170
USJ Co. Ltd.	98		37,760
Yomiuri Land Co. Ltd.	7,000		19,960
Yoshimoto Kogyo Co. Ltd.	3,500		33,088
			247,484
ENVIRONMENTAL CONTROL – 0.12%
Asahi Pretec Corp.	2,100		25,841
			25,841
FOOD – 4.81%
Ariake Japan Co. Ltd.	2,100		32,580
Ezaki Glico Co. Ltd.	7,000		63,958
Fuji Oil Co. Ltd.	8,400		105,510
House Foods Corp.	6,300		92,074
Itoham Foods Inc.	14,000		41,208
J-Oil Mills Inc.	7,000		18,887
Maruha Nichiro Holdings Inc.	35,000		41,852
Meiji Seika Kaisha Ltd.a	28,000		93,577
Mitsui Sugar Co. Ltd.	7,000		20,389
Morinaga & Co. Ltd.	28,000		55,803
Morinaga Milk Industry Co. Ltd.	21,000		63,529
Nichirei Corp.	21,000		69,968
Nippon Beet Sugar Manufacturing Co. Ltd.	7,000		16,598
Nippon Flour Mills Co. Ltd.	14,000		63,100
Nippon Suisan Kaisha Ltd.	20,300		44,606
Nisshin OilliO Group Ltd. (The)	14,000		67,678
Q.P. Corp.	8,400		93,319
Snow Brand Milk Products Co. Ltd.a	17,500		47,396
Unicharm Petcare Corp.	1,400		42,925
			1,074,957
FOREST PRODUCTS & PAPER – 1.46%
Daio Paper Corp.	7,000		54,515
Hokuetsu Paper Mills Ltd.	10,500		38,740

20 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2009

Security	Shares	Value
Mitsubishi Paper Mills Ltd.	28,000	$	35,771
Rengo Co. Ltd.	21,000		115,254
Sumitomo Forestry Co. Ltd.	14,000		82,702
			326,982
GAS – 0.48%
Saibu Gas Co. Ltd.	42,000		106,454
			106,454
HAND & MACHINE TOOLS – 1.19%
DISCO Corp.a	2,100		53,334
Hitachi Koki Co. Ltd.	4,900		44,871
Meidensha Corp.	21,000		43,140
Mori Seiki Co. Ltd.	7,000		57,591
OSG Corp.	7,700		40,371
Union Tool Co.	1,400		26,399
			265,706
HEALTH CARE - PRODUCTS – 1.67%
Hogy Medical Co. Ltd.	1,400		77,694
Nakanishi Inc.	700		41,136
Nihon Kohden Corp.	3,500		44,570
Nipro Corp.	7,000		107,313
Sysmex Corp.	2,800		85,707
Topcon Corp.	5,600		16,369
			372,789
HOME BUILDERS – 0.24%
PanaHome Corp.	7,000		36,701
Token Corp.	840		17,470
			54,171
HOME FURNISHINGS – 1.02%
Alpine Electronics Inc.	4,200		27,257
Canon Electronics Inc.	2,100		24,811
Daiwa Industries Ltd.	7,000		20,819
Foster Electric Co. Ltd.	2,100		11,461
France Bed Holdings Co. Ltd.	14,000		19,316
Hitachi Maxell Ltd.	4,200		29,747
Juki Corp.	14,000		8,585
JVC KENWOOD Holdings Inc.b	68,600		23,137
Nidec Sankyo Corp.	7,000		27,973
Noritz Corp.	2,800		36,057
			229,163

Security	Shares	Value
HOUSEHOLD PRODUCTS & WARES – 0.11%
Pilot Corp.	21	$	23,888
			23,888
HOUSEWARES – 0.49%
Noritake Co. Ltd.	14,000		37,202
Sangetsu Co. Ltd.	3,500		71,899
			109,101
INSURANCE – 0.02%
Fuji Fire & Marine Insurance
Co. Ltd. (The)	7,000		4,579
			4,579
INTERNET – 1.64%
Access Co. Ltd.a,b	21		50,415
CyberAgent Inc.	49		22,561
Dwango Co. Ltd.	7		9,916
eAccess Ltd.	119		73,094
En-Japan Inc.	14		10,044
GMO Internet Inc.	4,900		18,980
Gourmet Navigator Inc.	14		28,316
Index Holdingsb	108		3,609
Internet Initiative Japan Inc.	14		11,590
kabu.com Securities Co. Ltd.	35		31,371
Kakaku.com Inc.	14		41,623
Monex Group Inc.	98		24,038
Opt Inc.	7		8,156
So-net Entertainment Corp.	14		26,943
VeriSign Japan K.K.	28		6,470
			367,126
IRON & STEEL – 1.28%
Aichi Steel Corp.	14,000		35,485
Godo Steel Ltd.	14,000		33,338
Kyoei Steel Ltd.	1,400		26,499
Mitsubishi Steel Manufacturing Co. Ltd.	14,000		26,041
Nakayama Steel Works Ltd.	7,000		13,307
Nippon Metal Industry Co. Ltd.	14,000		15,596
Nippon Yakin Kogyo Co. Ltd.	10,500		20,604
Sanyo Special Steel Co. Ltd.	14,000		27,615
TOPY Industries Ltd.	21,000		31,121
Yodogawa Steel Works Ltd.	14,000		56,661
			286,267

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2009

Security	Shares	Value
LEISURE TIME – 1.65%
Accordia Golf Co. Ltd.	56	$	32,737
Aruze Corp.	2,100		11,268
Daiichikosho Co. Ltd.	4,200		39,362
Fields Corp.	14		21,319
Heiwa Corp.	4,900		48,827
HIS Co. Ltd.	2,800		40,206
Mars Engineering Corp.	1,400		44,213
Mizuno Corp.	7,000		28,259
Pacific Golf Group International Holdings K.K.	49		22,461
Roland Corp.	2,100		21,441
Round One Corp.	4,200		24,596
Tokyo Dome Corp.	14,000		35,199
			369,888
LODGING – 0.13%
Fujita Kanko Inc.	7,000		28,187
			28,187
MACHINERY – 3.45%
Aida Engineering Ltd.	7,000		19,316
Chugai Ro Co. Ltd.	7,000		16,097
CKD Corp.	6,300		18,028
Daifuku Co. Ltd.	7,000		34,483
Daihen Corp.	14,000		37,059
Fuji Machine Manufacturing Co. Ltd.	4,200		29,876
Furukawa Co. Ltd.	28,000		20,890
Harmonic Drive Systems Inc.	6		10,118
Iseki & Co. Ltd.b	21,000		48,505
Komori Corp.	5,600		41,437
Makino Milling Machine Co. Ltd.	7,000		15,167
Max Co. Ltd.	7,000		75,262
Miura Co. Ltd.	2,800		60,667
Modec Inc.	2,100		24,296
Nabtesco Corp.	7,000		43,354
Nippon Thompson Co. Ltd.	7,000		20,962
Obara Corp.	1,400		8,170
Okuma Corp.	14,000		44,642
Shima Seiki Manufacturing Ltd.	2,100		38,375
Sintokogio Ltd.	5,600		31,478
Tadano Ltd.	7,000		28,474
Takeuchi Manufacturing Co. Ltd.	1,400		9,529
Toshiba Machine Co. Ltd.	14,000		34,769

Security	Shares	Value
Toyo Kanetsu K.K.	21,000	$	33,267
Tsubakimoto Chain Co.	14,000		26,900
			771,121
MACHINERY - DIVERSIFIED – 0.27%
Ebara Corp.	35,000		60,810
			60,810
MANUFACTURING – 1.71%
Amano Corp.	7,000		60,667
Glory Ltd.	5,600		91,974
Kimoto Co. Ltd.	2,100		4,614
Kureha Corp.	21,000		83,918
Nikkiso Co. Ltd.	7,000		31,836
Nitta Corp.	2,800		32,108
Tamron Co. Ltd.	1,400		12,978
Tenma Corp.	2,800		25,812
Tokai Rubber Industries Ltd.	2,800		16,884
Toyo Tanso Co. Ltd.a	700		21,820
			382,611
MEDIA – 0.50%
Gakken Co. Ltd.	7,000		10,016
Kadokawa Group Holdings Inc.a	2,100		36,765
SKY Perfect JSAT Holdings Inc.	140		55,230
Usen Corp.b	10,018		9,317
			111,328
METAL FABRICATE & HARDWARE – 1.36%
Ahresty Corp.	2,100		5,430
Kitz Corp.	7,000		21,749
Misumi Group Inc.	7,000		79,197
Nachi-Fujikoshi Corp.	21,000		28,545
Neturen Co. Ltd.	4,200		25,540
Oiles Corp.	3,580		36,808
Onoken Co. Ltd.	1,400		9,315
Ryobi Ltd.	21,000		31,979
Tocalo Co. Ltd.	2,100		18,093
Toho Zinc Co. Ltd.	14,000		28,760
Yamezen Corp.	6,300		18,801
			304,217
MINING – 0.79%
Mitsui Mining Co. Ltd.	14,000		13,879
Nippon Denko Co. Ltd.	7,000		19,531
Nippon Light Metal Co. Ltd.	56,000		38,919

22 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2009

Security	Shares	Value
Nittetsu Mining Co. Ltd.	7,000	$	21,319
Pacific Metals Co. Ltd.a	14,000		54,658
Sumitomo Light Metal Industries Ltd.	35,000		28,617
			176,923
OFFICE & BUSINESS EQUIPMENT – 0.13%
Canon Finetech Inc.	2,800		29,332
			29,332
OFFICE FURNISHINGS – 0.50%
Itoki Corp.	4,900		13,171
Kokuyo Co. Ltd.	8,400		60,782
Okamura Corp.	7,000		38,418
			112,371
OIL & GAS – 0.10%
AOC Holdings Inc.	4,200		22,879
			22,879
PACKAGING & CONTAINERS – 0.42%
FP Corp.	1,400		64,101
Fuji Seal International Inc.	2,100		30,648
			94,749
PHARMACEUTICALS – 3.31%
EPS Co. Ltd.	7		28,617
Kaken Pharmaceutical Co. Ltd.	7,000		66,534
Kobayashi Pharmaceutical Co. Ltd.	2,800		92,718
Miraca Holdings Inc.	4,900		102,412
Mochida Pharmaceutical Co. Ltd.	7,000		76,335
Nichi-Iko Pharmaceutical Co. Ltd.	2,100		59,773
Nippon Shinyaku Co. Ltd.	7,000		66,891
Rohto Pharmaceutical Co. Ltd.	7,000		74,690
Sawai Pharmaceutical Co. Ltd.a	1,400		68,680
Seikagaku Corp.	3,500		37,130
Shin Nippon Biomedical Laboratories Ltd.	1,400		3,949
Toho Pharmaceutical Co. Ltd.	3,500		33,982
Towa Pharmaceutical Co. Ltd.	700		28,974
			740,685
REAL ESTATE – 0.83%
Atrium Co. Ltd.b	1,400		1,560
Daibiru Corp.	4,900		36,958
Daikyo Inc.	21,000		9,444
Goldcrest Co. Ltd.	1,820		32,905
Heiwa Real Estate Co. Ltd.	14,000		29,046

Security	Shares	Value
Sankei Building Co. Ltd. (The)	2,800	$	13,908
Shoei Co. Ltd.	2,800		11,447
Sumitomo Real Estate Sales Co. Ltd.	700		17,492
TOC Co. Ltd.	7,000		24,753
Tokyu Livable Inc.	2,100		8,392
			185,905
REAL ESTATE INVESTMENT TRUSTS – 3.66%
DA Office Investment Corp.	21		27,751
Frontier Real Estate Investment Corp.	14		67,392
Fukuoka REIT Corp.	7		24,539
Global One Real Estate Investment Corp.	7		43,712
Hankyu REIT Inc.	7		26,613
Japan Excellent Inc.	14		49,078
Japan Logistics Fund Inc.	14		70,254
Kenedix Realty Investment Corp.	14		22,965
MID REIT Inc.	14		22,936
Mori Hills REIT Investment Corp.	7		17,242
MORI TRUST Sogo REIT Inc.	14		97,154
Nippon Accommodations Fund Inc.	14		53,084
Nippon Commercial Investment Corp.	28		12,978
Nippon Residential Investment Corp.	21		8,231
ORIX JREIT Inc.	21		63,336
Premier Investment Co.	14		39,920
TOKYU REIT Inc.	14		73,974
Top REIT Inc.	14		45,930
United Urban Investment Corp.	14		50,938
			818,027
RETAIL – 10.26%
Aoki Holdings Inc.	2,100		19,424
Aoyama Trading Co. Ltd.	5,600		69,195
Arcs Co. Ltd.	2,800		40,493
Askul Corp.a	2,100		32,344
Autobacs Seven Co. Ltd.	3,500		89,785
Best Denki Co. Ltd.	7,000		19,316
BIC Camera Inc.	63		11,100
Cawachi Ltd.	1,400		23,265
Chiyoda Co. Ltd.	2,800		36,715
Circle K Sunkus Co. Ltd.	4,200		64,774
Culture Convenience Club Co. Ltd.a	8,400		58,464
Daiei Inc. (The)a,b	6,300		19,896
DCM Japan Holdings Co. Ltd.	6,300		28,846
Don Quijote Co. Ltd.	4,200		50,008

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2009

Security	Shares	Value
Doutor Nichires Holdings Co. Ltd.	4,200	$	59,279
Duskin Co. Ltd.	4,900		78,424
EDION Corp.	7,000		17,599
GEO Corp.	42		27,000
H2O Retailing Corp.	14,000		75,405
Heiwado Co. Ltd.	3,500		48,291
Izumi Co. Ltd.	5,600		58,893
Izumiya Co. Ltd.	7,000		34,984
Joshin Denki Co. Ltd.a	7,000		39,205
Keiyo Co. Ltd.	3,500		18,529
Kisoji Co. Ltd.	2,800		52,082
Kohnan Shoji Co. Ltd.	2,100		19,660
Komeri Co. Ltd.	2,800		46,130
K’s Holdings Corp.	3,500		42,102
Link Theory Holdings Co. Ltd.b	7		12,091
Maruetsu Inc. (The)b	7,000		32,408
Matsumotokiyoshi Co. Ltd.	4,200		75,849
Matsuya Co. Ltd.a	2,800		43,326
McDonald’s Holdings Co. (Japan) Ltd.	4,900		89,391
Nishimatsuya Chain Co. Ltd.	4,900		36,157
Nissen Holdings Co. Ltd.	4,900		21,534
Parco Co. Ltd.	7,000		52,154
Paris Miki Inc.	3,500		25,648
Plenus Co. Ltd.	2,800		39,405
Point Inc.	1,260		51,896
Right On Co. Ltd.	2,100		20,583
Ryohin Keikaku Co. Ltd.	2,100		74,475
Saizeriya Co. Ltd.	2,800		27,529
San-A & Co. Ltd.	700		21,212
Sankyo-Tateyama Holdings Inc.	35,000		21,820
Seiko Corp.	7,000		12,377
Senshukai Co. Ltd.	4,200		26,613
Shimachu Co. Ltd.	4,200		65,461
St. Marc Holdings Co. Ltd.	700		17,707
Sugi Pharmacy Co. Ltd.	2,800		59,380
Sundrug Co. Ltd.	2,800		46,903
Tsuruha Holdings Inc.	1,400		44,785
Valor Co. Ltd.	3,500		26,614
Watami Co. Ltd.	2,800		59,952
Xebio Co. Ltd.	2,100		31,786
Yoshinoya Holdings Co. Ltd.a	42		47,089

Security	Shares	Value
Zensho Co. Ltd.a	6,300	$	31,035
			2,296,388
SEMICONDUCTORS – 0.43%
Epson Toyocom Corp.	7,000		11,089
Megachips Corp.	1,400		23,823
Mimasu Semiconductor Industry Co. Ltd.	2,100		21,420
Sanken Electric Co. Ltd.	7,000		17,313
Shindengen Electric Manufacturing Co. Ltd.	14,000		23,466
			97,111
SHIPBUILDING – 0.42%
Hitachi Zosen Corp.b	73,500		60,095
Namura Shipbuilding Co. Ltd.	4,200		10,602
Sasebo Heavy Industries Co. Ltd.a	14,000		23,895
			94,592
SOFTWARE – 1.38%
Capcom Co. Ltd.	4,200		80,957
Fujisoft Inc.	2,800		41,322
Hitachi Software Engineering Co. Ltd.	2,800		32,823
Koei Co. Ltd.	2,100		16,161
Nihon Unisys Ltd.	5,600		39,834
NSD Co. Ltd.	3,500		21,176
Obic Business Consultants Co. Ltd.	700		23,609
Sumisho Computer Systems Corp.	2,100		22,922
Trans Cosmos Inc.a	2,800		15,024
Works Applications Co. Ltd.	35		14,308
			308,136
STORAGE & WAREHOUSING – 0.58%
Mitsui-Soko Co. Ltd.	14,000		47,074
Shibusawa Warehouse Co. Ltd. (The)	7,000		31,908
Sumitomo Warehouse Co. Ltd. (The)	14,000		50,222
			129,204
TELECOMMUNICATIONS – 1.15%
Denki Kogyo Co. Ltd.	7,000		38,919
Hitachi Kokusai Electric Inc.a	7,000		38,990
IT Holdings Corp.b	6,448		75,060
Japan Radio Co. Ltd.	7,000		8,442
Oki Electric Industry Co. Ltd.b	70,000		37,917
Okinawa Cellular Telephone Co.	14		25,340
Telepark Corp.	21		22,128

24 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2009

Security	Shares	Value
Uniden Corp.	7,000	$	10,302
			257,098
TEXTILES – 1.05%
Daiwabo Co. Ltd.	14,000		31,765
Kurabo Industries Ltd.	21,000		28,545
Nitto Boseki Co. Ltd.	28,000		42,067
Seiren Co. Ltd.	5,600		25,755
Toyobo Co. Ltd.	56,000		76,120
Unitika Ltd.a	49,000		30,548
			234,800
TOYS, GAMES & HOBBIES – 0.30%
Sanrio Co. Ltd.	4,200		40,006
Tomy Co. Ltd.	7,000		27,830
			67,836
TRANSPORTATION – 2.96%
Daiichi Chuo Kisen Kaishaa	14,000		29,046
Fukuyama Transporting Co. Ltd.	14,000		54,658
Hitachi Transport System Ltd.	4,200		38,504
Iino Kaiun Kaisha Ltd.	7,700		41,945
Inui Steamship Co. Ltd.	2,100		12,599
Kintetsu World Express Inc.	1,400		25,555
Nippon Konpo Unyu Soko Co. Ltd.	7,000		59,666
Nishi-Nippon Railroad Co. Ltd.	28,000		107,026
Sagami Railway Co. Ltd.	35,000		141,295
Sankyu Inc.	21,000		55,159
Seino Holdings Co. Ltd.	14,000		65,961
Shinwa Kaiun Kaisha Ltd.	7,000		17,170
Yusen Air & Sea Service Co. Ltd.	1,400		14,451
			663,035
VENTURE CAPITAL – 0.01%
Japan Asia Investment Co. Ltd.	7,000		2,218
			2,218
TOTAL COMMON STOCKS (Cost: $31,520,382)			22,272,667

Security	Shares	Value
SHORT-TERM INVESTMENTS – 3.50%
MONEY MARKET FUNDS – 3.50%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	663,363	$	663,363
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	110,895		110,895
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	8,669		8,669
			782,927
TOTAL SHORT-TERM INVESTMENTS
(Cost: $782,927)			782,927
TOTAL INVESTMENTS IN SECURITIES – 103.06%
(Cost: $32,303,309)			23,055,594
Other Assets, Less Liabilities – (3.06)%			(683,962	)
NET ASSETS – 100.00%		$	22,371,632

^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 All or a portion of 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 MALAYSIA INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.46%
AGRICULTURE – 12.94%
Asiatic Development Bhd	1,324,800	$	1,465,052
British American Tobacco (Malaysia) Bhd	845,200		10,201,672
IOI Corp. Bhd	19,917,330		19,877,039
Kuala Lumpur Kepong Bhd	2,822,400		7,574,614
			39,118,377
AIRLINES – 1.12%
AirAsia Bhda	6,278,400		1,634,162
Malaysian Airline System Bhd	2,419,200		1,748,741
			3,382,903
AUTO PARTS & EQUIPMENT – 1.71%
UMW Holdings Bhd	3,513,600		5,164,968
			5,164,968
BANKS – 26.30%
Alliance Financial Group Bhd	5,011,200		2,405,917
AMMB Holdings Bhd	10,368,037		6,935,329
Bumiputra-Commerce Holdings Bhd	15,552,032		28,943,768
Hong Leong Bank Bhd	2,764,800		3,915,091
Malayan Banking Bhd	14,342,400		19,729,262
Public Bank Bhd	6,220,800		14,597,697
Public Bank Bhd New	177,737		421,871
RHB Capital Bhd	2,534,400		2,556,617
			79,505,552
BUILDING MATERIALS – 0.72%
Lafarge Malayan Cement Bhd	2,016,060		2,175,115
			2,175,115
COMMERCIAL SERVICES – 2.31%
PLUS Expressways Bhd	8,812,800		6,988,437
			6,988,437
DIVERSIFIED FINANCIAL SERVICES – 1.46%
Bursa Malaysia Bhd	1,843,200		2,485,772
Hong Leong Credit Bhd	1,555,200		1,921,191
			4,406,963
ELECTRIC – 6.38%
Tenaga Nasional Bhd	7,603,250		13,227,502
YTL Power International Bhd	11,577,675		6,058,176
			19,285,678

Security	Shares	Value
ENGINEERING & CONSTRUCTION – 6.85%
Gamuda Bhd	9,446,400	$	5,044,874
IJM Corp. Bhd	4,665,600		4,656,162
MMC Corp. Bhd	5,356,800		2,037,246
YTL Corp. Bhd	4,780,888		8,962,150
			20,700,432
ENTERTAINMENT – 3.37%
Berjaya Sports Toto Bhd	4,377,600		5,643,945
Tanjong PLC	1,209,600		4,534,980
			10,178,925
FOOD – 2.69%
PPB Group Bhd	3,110,466		8,137,969
			8,137,969
GAS – 2.51%
Petronas Gas Bhd	2,880,000		7,573,837
			7,573,837
HOLDING COMPANIES - DIVERSIFIED – 7.11%
Sime Darby Bhd	14,112,025		21,505,851
			21,505,851
IRON & STEEL – 0.56%
Parkson Holdings Bhd	1,843,200		1,700,268
			1,700,268
LODGING – 7.40%
Genting Bhd	13,017,600		12,148,590
Resorts World Bhd	17,164,800		10,231,749
			22,380,339
MEDIA – 0.40%
Astro All Asia Networks PLC	2,246,400		1,205,755
			1,205,755
OIL & GAS – 0.95%
Petronas Dagangan Bhd	1,440,000		2,874,174
			2,874,174
REAL ESTATE – 2.74%
IGB Corp. Bhd	5,241,600		1,936,883
KLCC Property Holdings Bhd	2,707,200		2,154,077
SP Setia Bhd	4,780,800		4,203,751
			8,294,711
TELECOMMUNICATIONS – 6.99%
DiGi.Com Bhd	1,843,200		10,440,243
Telekom Malaysia Bhd	6,048,000		5,611,630

26 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MALAYSIA INDEX FUND

February 28, 2009

Security	Shares	Value
TM International Sdn Bhda	6,220,800	$	5,067,246
			21,119,119
TRANSPORTATION – 4.95%
MISC Bhd	6,566,400		14,965,901
			14,965,901
TOTAL COMMON STOCKS (Cost: $230,237,859)			300,665,274
SHORT-TERM INVESTMENTS – 0.00%
MONEY MARKET FUNDS – 0.00%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%b,c	76		76
			76
TOTAL SHORT-TERM INVESTMENTS
(Cost: $76)			76
TOTAL INVESTMENTS IN SECURITIES – 99.46%
(Cost: $230,237,935)			300,665,350
Other Assets, Less Liabilities – 0.54%			1,626,667
NET ASSETS – 100.00%		$	302,292,017

^a Non-income earning security.

^b Affiliated issuer. See Note 2.

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 98.89%
AUSTRALIA – 63.00%
AGL Energy Ltd.	1,295,536	$	10,933,297
Alumina Ltd.	4,281,659		3,296,082
Amcor Ltd.	2,396,320		6,735,912
AMP Ltd.	5,581,440		17,222,345
Aristocrat Leisure Ltd.	907,392		2,150,640
ASX Ltd.	490,144		8,279,117
Australia and New Zealand Banking Group Ltd.	5,874,112		49,948,124
AXA Asia Pacific Holdings Ltd.	2,444,192		4,809,334
Bendigo and Adelaide Bank Ltd.	781,456		3,210,069
BHP Billiton Ltd.	9,626,352		177,298,589
Billabong International Ltd.	486,608		2,182,304
BlueScope Steel Ltd.	2,497,232		3,557,645
Boral Ltd.	1,696,736		3,067,606
Brambles Ltd.	4,018,256		11,859,830
Caltex Australia Ltd.	392,496		2,357,013
CFS Retail Property Trust	4,958,832		5,385,515
Coca-Cola Amatil Ltd.	1,611,328		9,223,396
Cochlear Ltd.	160,208		5,475,665
Commonwealth Bank of Australia	4,232,048		80,568,587
Computershare Ltd.	1,352,656		6,092,217
Crown Ltd.a	1,327,360		4,401,037
CSL Ltd.	1,716,864		40,209,369
CSR Ltd.a	3,795,488		2,400,500
Dexus Property Group	9,996,816		4,470,526
Fairfax Media Ltd.a	4,021,520		2,389,308
Fortescue Metals Group Ltd.a,b	3,598,016		6,091,270
Foster’s Group Ltd.	5,567,568		19,598,193
Goodman Fielder Ltd.	3,896,400		2,875,043
Goodman Group	7,766,960		1,290,100
GPT Group (The)	12,752,720		3,829,125
Harvey Norman Holdings Ltd.a	1,584,672		1,933,622
Incitec Pivot Ltd.	4,901,440		6,826,201
Insurance Australia Group Ltd.	5,838,684		12,831,349
James Hardie Industries NV	1,250,656		2,652,619
Leighton Holdings Ltd.a	432,752		5,263,867
Lend Lease Corp. Ltd.	1,236,512		4,265,707
Lion Nathan Ltd.	852,448		4,661,660
Macquarie Airports	1,985,328		1,965,907

Security	Shares	Value
Macquarie Group Ltd.a	812,192	$	8,810,393
Macquarie Infrastructure Groupa	7,019,776		4,619,122
Macquarie Office Trust	9,755,552		747,880
Metcash Ltd.	2,244,964		5,994,936
Mirvac Group	4,503,504		2,445,504
National Australia Bank Ltd.	5,367,920		61,315,807
Newcrest Mining Ltd.	1,383,664		27,384,887
Nufarm Ltd.	378,896		2,481,092
OneSteel Ltd.	2,491,520		2,705,903
Orica Ltd.	1,008,576		8,563,129
Origin Energy Ltd.	2,527,968		21,963,896
OZ Minerals Ltd.	8,067,530		3,246,983
Perpetual Ltd.	111,792		1,829,737
Qantas Airways Ltd.	3,120,112		3,119,489
QBE Insurance Group Ltd.	2,847,840		34,676,670
Rio Tinto Ltd.a	818,720		24,713,606
Santos Ltd.	1,679,872		16,602,191
Sims Metal Management Ltd.	449,888		5,012,447
Sonic Healthcare Ltd.	1,045,298		8,013,464
SP AusNet	2,510,288		1,603,697
Stockland Corp. Ltd.	4,362,608		7,580,782
Suncorp-Metway Ltd.	3,082,199		10,357,271
Suncorp-Metway Ltd. Newb	525,598		1,766,194
Tabcorp Holdings Ltd.	1,679,872		6,846,928
Tatts Group Ltd.	3,280,048		5,972,057
Telstra Corp. Ltd.	12,509,552		28,370,632
Toll Holdings Ltd.	1,876,800		6,414,616
Transurban Group	3,459,024		9,877,795
Wesfarmers Ltd.	2,859,786		32,154,747
Wesfarmers Ltd. Partially Protected	417,256		4,664,870
Westfield Group	5,746,000		39,094,362
Westpac Banking Corp.	8,019,648		86,533,417
Woodside Petroleum Ltd.	1,395,088		31,906,821
Woolworths Ltd.	3,503,360		58,504,497
WorleyParsons Ltd.	428,128		4,362,478
			1,121,866,990
HONG KONG – 23.97%
ASM Pacific Technology Ltd.a	544,000		1,557,312
Bank of East Asia Ltd.	4,025,600		8,440,632
BOC Hong Kong (Holdings) Ltd.a	10,472,000		10,559,909
Cathay Pacific Airways Ltd.a	3,264,000		3,417,669

28 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2009

Security	Shares	Value
Cheung Kong (Holdings) Ltd.	4,080,000	$	33,592,696
Cheung Kong Infrastructure Holdings Ltd.	1,360,000		5,182,272
Chinese Estates Holdings Ltd.	2,448,000		2,796,848
CLP Holdings Ltd.	5,848,000		43,398,677
Esprit Holdings Ltd.a	3,019,200		16,449,110
Foxconn International Holdings Ltd.a,b	6,256,000		1,855,446
Genting International PLCa,b	8,160,000		2,216,674
Hang Lung Development Co. Ltd.	2,448,000		6,629,099
Hang Lung Properties Ltd.	5,984,736		11,560,606
Hang Seng Bank Ltd.a	2,176,000		24,411,920
Henderson Land Development Co. Ltd.	2,992,056		10,108,688
Hong Kong Aircraft Engineering Co. Ltd.	128,800		1,161,789
Hong Kong and China Gas Co. Ltd. (The)a	11,424,661		17,383,977
Hong Kong Exchanges and Clearing Ltd.a	2,992,000		24,133,077
Hongkong Electric Holdings Ltd.	3,944,000		24,411,920
Hopewell Holdings Ltd.	1,768,000		5,015,668
Hutchison Telecommunications International Ltd.	5,168,000		1,212,880
Hutchison Whampoa Ltd.	5,984,000		31,637,288
Hysan Development Co. Ltd.	1,632,000		2,500,117
Kerry Properties Ltd.	1,904,000		3,623,908
Kingboard Chemical Holdings Co. Ltd.	1,632,000		2,693,729
Li & Fung Ltd.a	6,529,600		14,499,183
Lifestyle International Holdings Ltd.	1,768,000		1,365,629
Link REIT (The)a	6,256,000		11,987,796
Mongolia Energy Corp. Ltd.b	5,440,000		1,480,148
MTR Corp. Ltd.	4,080,000		9,143,948
New World Development Co. Ltd.	7,072,941		6,430,029
Noble Group Ltd.	4,624,400		3,230,290
NWS Holdings Ltd.	2,448,000		3,144,087
Orient Overseas International Ltd.	615,000		1,427,485

Security	Shares	Value
Pacific Basin Shipping Ltd.	4,624,000	$	2,164,453
Shangri-La Asia Ltd.	3,808,000		4,100,221
Sino Land Co. Ltd.	4,896,000		3,844,878
Sun Hung Kai Properties Ltd.	4,080,000		32,093,257
Swire Pacific Ltd. Class A	2,312,000		14,370,063
Television Broadcasts Ltd.	816,000		2,841,043
Wharf Holdings Ltd. (The)	3,808,000		8,092,411
Wheelock and Co. Ltd.	2,448,000		4,135,295
Wing Hang Bank Ltd.	544,000		3,054,998
Yue Yuen Industrial Holdings Ltd.	1,904,000		3,564,982
			426,922,107
NEW ZEALAND – 0.95%
Auckland International Airport Ltd.	2,913,392		2,582,735
Contact Energy Ltd.	787,984		2,348,238
Fletcher Building Ltd.	1,451,936		3,810,539
Sky City Entertainment Group Ltd.	1,437,861		1,951,614
Telecom Corp. of New Zealand Ltd.	5,188,400		6,288,637
			16,981,763
SINGAPORE – 10.97%
Ascendas Real Estate Investment Trusta	3,844,813		3,133,345
CapitaLand Ltd.a	4,896,000		6,270,021
CapitaMall Trust Management Ltd.a	3,264,622		3,019,474
City Developments Ltd.	1,360,000		4,222,236
ComfortDelGro Corp. Ltd.	5,440,000		4,609,275
COSCO Corp. (Singapore) Ltd.a	2,721,104		1,267,185
DBS Group Holdings Ltd.	4,896,000		24,826,751
Fraser and Neave Ltd.a	2,720,150		4,011,346
Golden Agri-Resources Ltd.	14,416,000		2,657,370
Jardine Cycle & Carriage Ltd.a	378,000		2,161,257
Keppel Corp. Ltd.	3,808,000		10,763,185
Neptune Orient Lines Ltd.	1,360,000		1,055,559
Olam International Ltd.a	3,536,600		2,813,542
Oversea-Chinese Banking Corp.a	7,072,600		20,493,660
Parkway Holdings Ltd.	2,448,968		1,663,163
SembCorp Industries Ltd.	2,720,240		3,712,377

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2009

Security	Shares	Value
SembCorp Marine Ltd.a	2,448,200	$	2,216,856
Singapore Airlines Ltd.a	1,632,800		10,750,859
Singapore Exchange Ltd.a	2,448,000		7,188,358
Singapore Press Holdings Ltd.a	4,352,517		7,657,232
Singapore Technologies Engineering Ltd.	3,808,000		5,689,464
Singapore Telecommunications Ltd.	22,848,328		36,353,979
United Overseas Bank Ltd.	3,536,000		22,847,578
UOL Group Ltd.	1,360,000		1,477,783
Wilmar International Ltd.a	2,448,000		4,560,016
			195,421,871
TOTAL COMMON STOCKS (Cost: $2,807,749,843)			1,761,192,731
RIGHTS – 0.05%
SINGAPORE – 0.05%
CapitaLand Ltd.a,b	2,421,000		955,184
			955,184
TOTAL RIGHTS (Cost: $2,963,868)			955,184
SHORT-TERM INVESTMENTS – 8.66%
MONEY MARKET FUNDS – 8.66%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	131,389,978		131,389,978
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	21,964,554		21,964,554
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	778,342		778,342
			154,132,874
TOTAL SHORT-TERM INVESTMENTS
(Cost: $154,132,874)			154,132,874

	Value
TOTAL INVESTMENTS IN SECURITIES – 107.60%
(Cost: $2,964,846,585)	$	1,916,280,789
Other Assets, Less Liabilities – (7.60)%		(135,369,720	)
NET ASSETS – 100.00%	$	1,780,911,069

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

30 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 98.32%
AGRICULTURE – 3.52%
Golden Agri-Resources Ltd.	43,000,000	$	7,926,396
Wilmar International Ltd.a	7,525,000		14,017,205
			21,943,601
AIRLINES – 4.79%
Singapore Airlines Ltd.a	4,540,467		29,895,837
			29,895,837
BANKS – 32.08%
DBS Group Holdings Ltd.a	14,715,500		74,619,701
Oversea-Chinese Banking Corp.a	19,350,000		56,068,818
United Overseas Bank Ltd.	10,750,000		69,460,255
			200,148,774
BEVERAGES – 2.29%
Fraser and Neave Ltd.a	9,675,000		14,267,512
			14,267,512
DISTRIBUTION & WHOLESALE – 1.22%
Jardine Cycle & Carriage Ltd.	1,335,000		7,633,012
			7,633,012
DIVERSIFIED FINANCIAL SERVICES – 3.54%
Singapore Exchange Ltd.a	7,525,000		22,096,566
			22,096,566
ENGINEERING & CONSTRUCTION – 5.20%
SembCorp Industries Ltd.	9,675,000		13,203,706
Singapore Technologies Engineering Ltd.a	12,900,000		19,273,656
			32,477,362
FOOD – 1.37%
Olam International Ltd.a	10,750,000		8,552,163
			8,552,163
HEALTH CARE - SERVICES – 1.05%
Parkway Holdings Ltd.a	9,675,533		6,570,927
			6,570,927
HOLDING COMPANIES - DIVERSIFIED – 6.57%
Keppel Corp. Ltd.	11,050,000		31,232,456
Noble Group Ltd.a	13,975,000		9,761,982
			40,994,438

Security	Shares	Value
MEDIA – 3.94%
Singapore Press Holdings Ltd.a	13,975,000	$	24,585,732
			24,585,732
REAL ESTATE – 7.82%
CapitaLand Ltd.a	15,050,000		19,273,656
City Developments Ltd.a	5,375,000		16,687,148
Genting International PLCa,b	25,800,000		7,008,602
UOL Group Ltd.a	5,375,000		5,840,502
			48,809,908
REAL ESTATE INVESTMENT TRUSTS – 3.26%
Ascendas Real Estate Investment Trusta	11,505,335		9,376,316
CapitaMall Trust Management Ltd.a	11,825,000		10,937,035
			20,313,351
SHIPBUILDING – 1.09%
SembCorp Marine Ltd.a	7,525,000		6,813,919
			6,813,919
TELECOMMUNICATIONS – 17.00%
Singapore Telecommunications Ltd.a	66,650,568		106,047,731
			106,047,731
TRANSPORTATION – 3.58%
ComfortDelGro Corp. Ltd.a	18,275,000		15,484,283
COSCO Corp. (Singapore) Ltd.a	7,525,000		3,504,301
Neptune Orient Lines Ltd.a	4,300,000		3,337,430
			22,326,014
TOTAL COMMON STOCKS (Cost: $1,267,728,400)			613,476,847
RIGHTS – 0.51%
REAL ESTATE – 0.51%
CapitaLand Ltd.a,b	7,980,000		3,148,438
			3,148,438
TOTAL RIGHTS (Cost: $12,705,698)			3,148,438

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 26.29%
MONEY MARKET FUNDS – 26.29%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	140,490,254	$	140,490,254
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	23,485,853		23,485,853
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	61,646		61,646
			164,037,753
TOTAL SHORT-TERM INVESTMENTS
(Cost: $164,037,753)			164,037,753
TOTAL INVESTMENTS IN SECURITIES – 125.12%
(Cost: $1,444,471,851)			780,663,038
Other Assets, Less Liabilities – (25.12)%			(156,720,911	)
NET ASSETS – 100.00%		$	623,942,127

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

32 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 96.16%
AGRICULTURE – 3.04%
KT&G Corp.	647,466	$	33,312,727
			33,312,727
AIRLINES – 0.38%
Korean Air Co. Ltd.a	206,012		4,124,270
			4,124,270
AUTO MANUFACTURERS – 3.02%
Hyundai Motor Co. Ltd.b	892,710		28,350,164
Kia Motors Corp.a,b	1,108,530		4,850,496
			33,200,660
AUTO PARTS & EQUIPMENT – 1.87%
Hankook Tire Co. Ltd.b	529,740		4,352,608
Hyundai Mobis	333,546		16,204,224
			20,556,832
BANKS – 1.33%
Busan Bank	716,130		2,419,011
Daegu Bank	725,940		2,764,584
Industrial Bank of Koreaa	1,059,480		4,103,887
Korea Exchange Bankb	1,500,930		5,344,035
			14,631,517
BEVERAGES – 0.25%
Hite Brewery Co. Ltd.a	30,961		2,745,808
			2,745,808
CHEMICALS – 3.58%
DC Chemical Co. Ltd.a,b	68,670		9,582,902
Hanwha Chemical Corp.	421,830		1,911,782
Honam Petrochemical Corp.a	88,290		2,705,986
KCC Corp.	29,430		5,469,547
Korea Zinc Co. Ltd.b	49,050		2,872,312
LG Chem Ltd.b	304,115		16,757,560
			39,300,089
COMMERCIAL SERVICES – 0.26%
S1 Corp.	101,248		2,839,037
			2,839,037
COSMETICS & PERSONAL CARE – 0.64%
AmorePacific Corp.	19,620		7,024,050
			7,024,050
DISTRIBUTION & WHOLESALE – 2.82%
Daewoo International Corp.	284,499		3,608,416

Security	Shares	Value
Hanwha Corp.a	264,870	$	4,171,249
Hyosung Corp.b	137,345		4,522,936
Samsung C&T Corp.	774,990		16,677,320
SK Networks Co. Ltd.	421,830		2,008,059
			30,987,980
DIVERSIFIED FINANCIAL SERVICES – 10.86%
Daewoo Securities Co. Ltd.	716,130		6,677,965
Hana Financial Group Inc.	725,941		8,757,684
Hyundai Securities Co. Ltd.	794,617		4,798,274
KB Financial Group Inc.a	1,952,199		37,427,226
Korea Investment Holdings Co. Ltd.	235,445		3,492,908
Mirae Asset Securities Co. Ltd.b	127,534		4,740,423
Samsung Card Co. Ltd.b	215,825		3,757,762
Samsung Securities Co.b	294,300		10,075,481
Shinhan Financial Group Co. Ltd.a,b	1,936,350		29,420,903
Woori Finance Holdings Co. Ltd.a,b	1,383,210		5,655,511
Woori Investment & Securities Co. Ltd.	500,310		4,453,363
			119,257,500
ELECTRIC – 2.13%
Korea Electric Power Corp.a,b	1,491,120		23,336,733
			23,336,733
ELECTRICAL COMPONENTS & EQUIPMENT – 3.00%
LG Electronics Inc.b	549,366		25,650,216
LS Corp.	107,910		4,644,317
Samsung Digital Imaging Co. Ltd.b,c	85,906		1,317,273
Taihan Electric Wire Co. Ltd.a	147,150		1,357,791
			32,969,597
ELECTRONICS – 3.08%
LG Display Co. Ltd.b	1,040,522		17,302,452
Samsung Electro-Mechanics Co. Ltd.b	343,350		9,123,908
Samsung SDI Co. Ltd.b	196,200		7,356,700
			33,783,060
ENGINEERING & CONSTRUCTION – 3.91%
Daelim Industrial Co. Ltd.b	166,770		4,393,549

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2009

Security	Shares	Value
Daewoo Engineering & Construction Co. Ltd.b	1,039,864	$	5,804,523
Doosan Heavy Industries & Construction Co. Ltd.a,b	186,390		7,268,420
GS Engineering & Construction Corp.b	196,200		6,058,083
Hanjin Heavy Industries & Construction Co. Ltd.b	186,394		3,014,393
Hyundai Engineering & Construction Co. Inc.b	294,308		9,883,836
Kumho Industrial Co. Ltd.a	137,340		1,052,328
Samsung Engineering Co. Ltd.	186,390		5,457,392
			42,932,524
ENVIRONMENTAL CONTROL – 0.46%
Woongjin Coway Co. Ltd.	284,490		5,036,781
			5,036,781
FOOD – 0.53%
CJ CheilJedang Corp.b	43,164		3,546,569
Lotte Confectionery Co. Ltd.a,b	3,500		2,270,949
			5,817,518
GAS – 0.34%
Korea Gas Corp.a	137,340		3,676,431
			3,676,431
HOLDING COMPANIES - DIVERSIFIED – 1.78%
GS Holdings Corp.	294,300		4,893,805
LG Corp.b	549,361		14,616,191
			19,509,996
HOME BUILDERS – 0.60%
Hyundai Development Co.b	353,167		6,586,616
			6,586,616
HOUSEHOLD PRODUCTS & WARES – 0.45%
LG Household & Health Care Ltd.b	51,150		4,986,583
			4,986,583
INSURANCE – 2.19%
Dongbu Insurance Co. Ltd.	206,010		1,934,492
Samsung Fire & Marine Insurance Co. Ltd.	215,835		22,097,225
			24,031,717

Security	Shares	Value
INTERNET – 2.00%
LG Dacom Corp.	235,440	$	2,686,795
NHN Corp.a	222,687		19,313,577
			22,000,372
IRON & STEEL – 7.55%
Dongkuk Steel Mill Co. Ltd.b	215,821		3,011,783
Hyundai Steel Co.b	323,735		7,304,357
POSCO	353,160		72,543,463
			82,859,603
LODGING – 0.46%
Kangwon Land Inc.b	627,842		5,097,250
			5,097,250
MACHINERY – 0.34%
Doosan Infracore Co. Ltd.a,b	441,450		3,713,534
			3,713,534
MANUFACTURING – 0.95%
Cheil Industries Inc.	274,680		6,591,604
Doosan Corp.a,b	58,860		3,796,057
			10,387,661
METAL PROCESSORS & FABRICATORS – 0.21%
Taewoong Co. Ltd.	40,040		2,323,808
			2,323,808
MULTIPLE UTILITIES – 0.70%
KT Freetel Co. Ltd.a	431,640		7,684,233
			7,684,233
OIL & GAS – 3.39%
SK Corp.	206,014		11,486,271
SK Energy Co. Ltd.b	353,162		16,696,606
S-Oil Corp.	264,870		9,067,933
			37,250,810
PHARMACEUTICALS – 0.57%
Yuhan Corp.	50,031		6,296,696
			6,296,696
RETAIL – 2.79%
Hyundai Department Store Co. Ltd.	88,290		3,235,669
Lotte Shopping Co. Ltd.b	58,865		6,333,697
Shinsegae Co. Ltd.	79,980		21,018,546
			30,587,912

34 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2009

Security	Shares	Value
SEMICONDUCTORS – 19.77%
Hynix Semiconductor Inc.a,b	2,266,110	$	12,767,649
Samsung Electronics Co. Ltd.	643,460		200,150,258
Samsung Techwin Co. Ltd.	206,011		4,090,665
			217,008,572
SHIPBUILDING – 5.14%
Daewoo Shipbuilding & Marine Engineering Co. Ltd.b	559,170		7,183,338
Hyundai Heavy Industries Co. Ltd.b	245,250		28,387,268
Hyundai Mipo Dockyard Co. Ltd.	68,670		5,328,810
Samsung Heavy Industries Co. Ltd.b	941,760		13,326,503
STX Shipbuilding Co. Ltd.a,b	274,680		2,149,436
			56,375,355
TELECOMMUNICATIONS – 4.72%
KT Corp.	534,151		13,044,640
KT Corp. SP ADRa,b	490,500		5,895,809
LG Telecom Ltd.	794,613		4,606,527
SK Telecom Co. Ltd.	124,780		15,256,766
SK Telecom Co. Ltd. ADR	971,226		13,004,716
			51,808,458
TRANSPORTATION – 1.05%
Hanjin Shipping Co. Ltd.b	333,540		3,349,538
Korea Express Co. Ltd.a	58,860		3,646,364
Korea Line Corp.	39,260		1,374,804
STX Pan Ocean Co. Ltd.b	588,630		3,147,549
			11,518,255
TOTAL COMMON STOCKS (Cost: $1,330,415,787)			1,055,560,545
PREFERRED STOCKS – 2.30%
AUTO MANUFACTURERS – 0.23%
Hyundai Motor Co. Ltd.b	215,820		2,512,153
			2,512,153
ELECTRICAL COMPONENTS & EQUIPMENT – 0.15%
LG Electronics Inc.b	88,296		1,698,554
			1,698,554

Security	Shares	Value
SEMICONDUCTORS – 1.92%
Samsung Electronics Co. Ltd.b	117,720	$	21,072,149
			21,072,149
TOTAL PREFERRED STOCKS (Cost: $47,910,708)			25,282,856
RIGHTS – 0.06%
BANKS – 0.00%
Busan Banka,c	161,802		18,992
			18,992
DIVERSIFIED FINANCIAL SERVICES – 0.06%
Shinhan Financial Group Co. Ltd.a,b,c	306,537		639,660
			639,660
TOTAL RIGHTS (Cost: $0)			658,652
SHORT-TERM INVESTMENTS – 16.29%
MONEY MARKET FUNDS – 16.29%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%d,e,f	148,604,116		148,604,116
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%d,e,f	24,842,253		24,842,253
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%d,e	5,390,428		5,390,428
			178,836,797
TOTAL SHORT-TERM INVESTMENTS
(Cost: $178,836,797)			178,836,797

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2009

	Value
TOTAL INVESTMENTS IN SECURITIES – 114.81% (Cost: $1,557,163,292)	$	1,260,338,850
Other Assets, Less Liabilities – (14.81)%		(162,547,125	)
NET ASSETS – 100.00%	$	1,097,791,725

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 Security valued using Level 3 inputs. 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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

36 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.89%
AIRLINES – 0.35%
China Airlines Ltd.a	10,504,588	$	1,939,642
EVA Airways Corp.a	11,312,396		2,059,655
			3,999,297
APPAREL – 0.49%
Pou Chen Corp.	12,928,594		5,588,703
			5,588,703
AUTO MANUFACTURERS – 0.18%
Yulon Motor Co. Ltd.	4,848,362		2,026,426
			2,026,426
AUTO PARTS & EQUIPMENT – 0.36%
Cheng Shin Rubber Industry Co. Ltd.	4,848,084		4,052,619
			4,052,619
BANKS – 6.78%
Chang Hwa Commercial Bank Ltd.	24,240,446		7,078,212
Chinatrust Financial Holding Co. Ltd.	51,712,342		15,766,183
E.Sun Financial Holding Co. Ltd.	18,584,913		4,256,310
First Financial Holding Co. Ltd.	27,472,187		11,049,747
Hua Nan Financial Holdings Co. Ltd.	19,392,824		9,354,568
Mega Financial Holding Co. Ltd.	52,520,136		14,448,807
Taishin Financial Holdings Co. Ltd.	25,856,439		3,664,010
Taiwan Business Banka	12,928,000		2,309,398
Taiwan Cooperative Bank Ltd.	21,008,650		8,780,794
			76,708,029
BUILDING MATERIALS – 2.16%
Asia Cement Corp.	11,312,618		8,452,524
Taiwan Cement Corp.	17,776,558		13,333,118
Taiwan Glass Industrial Corp.	5,656,196		2,687,914
			24,473,556
CHEMICALS – 7.98%
Eternal Chemical Co. Ltd.	4,040,066		1,827,378

Security	Shares	Value
Formosa Chemicals & Fibre Co.	17,776,393	$	17,938,475
Formosa Plastics Corp.	25,048,111		34,203,939
Nan Ya Plastic Corp.	31,512,447		30,085,742
Taiwan Fertilizer Co. Ltd.	4,040,000		6,199,104
			90,254,638
COMMERCIAL SERVICES – 0.19%
Taiwan Secom Co. Ltd.	1,616,610		2,175,133
			2,175,133
COMPUTERS – 12.12%
Acer Inc.	16,160,516		21,466,239
Advantech Co. Ltd.	2,424,293		3,053,659
CMC Magnetics Corp.a	15,352,400		2,259,031
Compal Electronics Inc.	22,624,348		13,083,086
Foxconn Technology Co. Ltd.	3,233,106		7,497,004
HTC Corp.	4,040,788		44,535,831
Innolux Display Corp.	12,120,912		10,392,377
Inotera Memories Inc.a	4,848,000		1,665,431
Inventec Co. Ltd.	8,888,652		2,633,656
Lite-On Technology Corp.	12,928,893		7,661,511
MiTAC International Corp.	7,272,585		2,664,904
Qisda Corp.	8,888,211		1,636,094
Quanta Computer Inc.	12,120,387		12,387,038
Wistron Corp.	8,080,396		6,187,842
			137,123,703
DIVERSIFIED FINANCIAL SERVICES – 3.89%
Fubon Financial Holding Co. Ltd.	26,664,000		14,426,795
KGI Securities Co. Ltd.	12,928,000		2,757,213
Polaris Securities Co. Ltd.	12,928,991		3,793,772
SinoPac Financial Holdings Co. Ltd.	38,784,193		6,484,110
Yuanta Financial Holding Co. Ltd.	45,248,076		16,515,551
			43,977,441
ELECTRICAL COMPONENTS & EQUIPMENT – 1.89%
Delta Electronics Inc.	9,696,648		15,461,784
Pacific Electric Wire & Cable Co. Ltd.b	197		–
Tatung Co. Ltd.a	22,624,120		3,432,656
Walsin Lihwa Corp.	16,160,069		2,521,288
			21,415,728

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2009

Security	Shares	Value
ELECTRONICS – 14.62%
ASUSTeK Computer Inc.	24,240,243	$	23,212,176
AU Optronics Corp.	46,056,884		34,280,778
Cheng Uei Precision Industry Co. Ltd.	1,616,325		1,860,105
Chi Mei Optoelectronics Corp.	28,280,629		9,148,508
Chunghwa Picture Tubes Ltd.	45,248,105		3,860,108
HannStar Display Corp.	27,472,675		3,248,133
Hon Hai Precision Industry Co. Ltd.	37,168,589		74,163,739
Kinsus Interconnect Technology Corp.	1,616,043		1,924,549
Nan Ya Printed Circuit Board Corp.	808,739		1,622,965
Synnex Technology International Corp.	5,656,502		6,509,637
Tripod Technology Corp.	2,424,682		2,984,737
Unimicron Technology Corp.	5,656,794		2,558,646
Ya Hsin Industrial Co. Ltd.b	6,845,461		19
			165,374,100
ENERGY - ALTERNATE SOURCES – 0.20%
Motech Industries Inc.	1,035,408		2,312,005
			2,312,005
FOOD – 1.23%
Uni-President Enterprises Co.	18,584,908		13,886,209
			13,886,209
HOME FURNISHINGS – 0.28%
Teco Electric and Machinery Co. Ltd.	11,312,092		3,134,737
			3,134,737
INSURANCE – 3.11%
Cathay Financial Holding Co. Ltd.	37,168,200		29,846,070
Shin Kong Financial Holding Co. Ltd.	25,856,490		5,329,480
			35,175,550
INVESTMENT COMPANIES – 0.87%
China Development Financial Holding Corp.	57,368,496		9,788,192
			9,788,192

Security	Shares	Value
IRON & STEEL – 3.87%
China Steel Corp.	59,792,484	$	38,256,645
Feng Hsin Iron & Steel Co. Ltd.	2,527,050		2,387,319
Tung Ho Steel Enterprise Corp.	4,848,000		3,115,744
			43,759,708
MANUFACTURING – 0.51%
Largan Precision Co. Ltd.	808,210		5,761,112
			5,761,112
METAL FABRICATE & HARDWARE – 0.49%
Catcher Technology Co. Ltd.	3,232,130		5,486,890
			5,486,890
OIL & GAS – 1.06%
Formosa Petrochemical Corp.	7,272,000		11,970,285
			11,970,285
RETAIL – 0.77%
Far Eastern Department Stores Co. Ltd.	4,848,500		1,908,503
President Chain Store Corp.	3,237,640		6,821,645
			8,730,148
SEMICONDUCTORS – 27.32%
Advanced Semiconductor Engineering Inc.	26,664,372		9,312,664
Epistar Corp.	3,232,047		4,043,355
Everlight Electronics Co. Ltd.	1,665,592		2,584,346
Formosa Sumco Technology Corp.	1,616,000		2,803,475
Macronix International Co. Ltd.	17,776,636		5,776,013
MediaTek Inc.	5,815,970		50,614,914
Nanya Technology Corp.a	16,160,690		2,965,519
Novatek Microelectronics Corp. Ltd.	3,232,980		3,970,481
Powerchip Semiconductor Corp.a	47,672,901		5,404,426
Powertech Technology Inc.	3,232,915		4,997,707
ProMOS Technologies Inc.a	32,448,000		1,096,106
Realtek Semiconductor Corp.	2,424,595		2,797,223
Richtek Technology Corp.	808,700		3,507,380
Siliconware Precision Industries Co. Ltd.	17,776,214		15,342,967
Sino-American Silicon Products Inc.	1,124,324		2,153,279

38 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2009

Security	Shares	Value
Taiwan Semiconductor Manufacturing Co. Ltd.	130,896,323	$	168,437,934
Transcend Information Inc.	1,727,015		3,500,355
United Microelectronics Corp.	82,416,501		18,497,498
Vanguard International Semiconductor Corp.	4,848,416		1,201,989
			309,007,631
TELECOMMUNICATIONS – 7.09%
Chunghwa Telecom Co. Ltd.	35,552,677		54,858,489
Compal Communications Inc.	1,711,810		1,117,309
Far EasTone Telecommunications Co. Ltd.	9,696,259		9,423,815
Taiwan Cellular Corp.	11,312,677		14,767,705
			80,167,318
TEXTILES – 1.13%
Far Eastern Textile Ltd.	16,968,195		10,152,306
Formosa Taffeta Co. Ltd.	5,656,515		2,615,196
			12,767,502
TRANSPORTATION – 0.95%
Evergreen Marine Corp. Ltd.	7,272,467		2,768,957
U-Ming Marine Transport Corp.	2,424,800		3,120,243
Wan Hai Lines Ltd.	7,272,433		2,768,944
Yang Ming Marine Transport Corp.	8,080,305		2,074,928
			10,733,072
TOTAL COMMON STOCKS (Cost: $1,545,366,175)			1,129,849,732
SHORT-TERM INVESTMENTS – 0.08%
MONEY MARKET FUNDS – 0.08%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	962,952		962,952
			962,952
TOTAL SHORT-TERM INVESTMENTS (Cost: $962,952)			962,952

	Value
TOTAL INVESTMENTS IN SECURITIES – 99.97% (Cost: $1,546,329,127)	$	1,130,812,684
Other Assets, Less Liabilities – 0.03%		293,191
NET ASSETS – 100.00%	$	1,131,105,875

^a Non-income earning security.

^b Security valued using Level 3 inputs. See Note 1.

^c Affiliated issuer. See Note 2.

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited)

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.50%
AGRICULTURE – 1.29%
Charoen Pokphand Foods PCL NVDR	3,139,500	$	293,298
			293,298
AUTO PARTS & EQUIPMENT – 0.14%
Thai Stanley Electric PCL NVDR	23,100		31,126
			31,126
BANKS – 27.47%
Bangkok Bank PCL NVDR	1,001,700		2,062,649
Bank of Ayudhya PCL NVDR	3,019,800		738,674
Kasikornbank PCL NVDR	1,062,600		1,306,957
Kiatnakin Bank PCL NVDR	241,500		68,085
Krung Thai Bank PCL NVDR	3,423,000		391,687
Siam City Bank PCL NVDRa	600,600		124,502
Siam Commercial Bank PCL NVDR	821,100		1,270,912
TMB Bank PCL NVDRa	20,592,600		278,894
			6,242,360
BUILDING MATERIALS – 3.89%
Dynasty Ceramic PCL NVDR	81,900		28,070
Siam Cement PCL NVDR	298,200		824,212
TPI Polene PCL NVDRa	394,800		31,427
			883,709
CHEMICALS – 3.79%
Indorama Polymers PCL NVDR	378,200		44,113
IRPC PCL NVDR	8,383,200		433,294
PTT Chemical PCL NVDR	296,100		241,430
Thai Plastic & Chemical PCL NVDR	409,500		141,480
			860,317
COAL – 3.46%
Banpu PCL NVDR	134,400		787,529
			787,529
COMMERCIAL SERVICES – 0.84%
Bangkok Expressway PCL NVDR	438,900		191,670
			191,670
COMPUTERS – 0.24%
Cal-Comp Electronics (Thailand) PCL NVDR	1,633,800		55,092
			55,092

Security	Shares	Value
DIVERSIFIED FINANCIAL SERVICES – 1.43%
Kim Eng Securities (Thailand) PCL NVDR	298,200	$	59,755
Phatra Securities PCL NVDR	113,400		35,731
Thanachart Capital PCL NVDR	806,400		179,423
TISCO Financial Group PCL NVDR	176,400		50,219
			325,128
ELECTRIC – 3.20%
Glow Energy PCL NVDR	552,300		317,519
Ratchaburi Electricity Generating Holding PCL NVDR	390,600		410,249
			727,768
ELECTRONICS – 1.20%
Delta Electronics (Thailand) PCL NVDR	426,300		124,897
Hana Microelectronics PCL NVDR	472,500		147,575
			272,472
ENGINEERING & CONSTRUCTION – 1.20%
Airports of Thailand PCL NVDR	436,800		194,375
Italian-Thai Development PCL NVDR	1,225,400		78,577
			272,952
ENTERTAINMENT – 0.30%
Major Cineplex Group PCL NVDR	392,700		69,466
			69,466
FOOD – 1.42%
Khon Kaen Sugar
Industry PCL NVDR	506,100		87,427
Thai Union Frozen Products PCL NVDR	352,800		188,199
Thai Vegetable Oil PCL NVDR	193,200		46,725
			322,351
HEALTH CARE - SERVICES – 0.71%
Bumrungrad Hospital PCL NVDR	275,100		161,197
			161,197
HOME BUILDERS – 0.92%
Asian Property
Development PCL NVDR	739,200		42,088
Land and Houses PCL NVDR	2,247,000		167,687
			209,775

40 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
IRON & STEEL – 0.85%
G Steel PCL NVDR	5,751,900	$	50,874
Sahaviriya Steel Industries PCL NVDR	5,130,300		51,048
Tata Steel (Thailand) PCL NVDR	2,028,600		45,977
Thainox Stainless PCL NVDR	2,012,500		44,500
			192,399
LODGING – 0.06%
Central Plaza Hotel PCL NVDR	149,100		12,775
			12,775
MEDIA – 2.15%
BEC World PCL NVDR	867,300		462,656
MCOT PCL NVDR	71,400		26,247
			488,903
OIL & GAS – 25.11%
Esso (Thailand) PCL NVDR	1,068,900		132,357
PTT Exploration and Production PCL NVDR	930,300		2,288,466
PTT PCL NVDR	645,100		2,781,526
Thai Oil PCL NVDR	758,100		502,886
			5,705,235
REAL ESTATE – 2.52%
Amata Corp. PCL NVDR	441,000		42,662
Bangkok Land PCL NVDRa	7,337,400		36,504
Central Pattana PCL NVDR	655,200		224,557
Erawan Group PCL (The) NVDR	292,100		10,253
Hemaraj Land and Development PCL NVDR	3,954,300		55,741
LPN Development PCL NVDR	468,300		31,582
Preuksa Real Estate PCL NVDR	548,100		59,688
Quality House PCL NVDR	3,028,200		66,959
Ticon Industrial Connection PCL NVDR	262,500		43,895
			571,841
RETAIL – 5.69%
CP All PCL NVDR	2,024,400		677,038
Home Product Center PCL NVDR	399,000		40,584
PTT Aromatics & Refining PCL NVDR	1,152,900		318,657

Security	Shares	Value
Robinson Department Store PCL NVDR	428,400	$	74,597
Siam Makro PCL NVDR	94,500		181,530
			1,292,406
TELECOMMUNICATIONS – 9.80%
Advanced Info Service PCL NVDR	669,900		1,490,518
Samart Corp. PCL NVDR	331,800		47,688
Thaicom PCL NVDRa	382,200		33,593
Total Access Communication PCL NVDR	711,900		590,299
True Corp. PCL NVDRa	1,589,700		65,908
			2,228,006
TRANSPORTATION – 1.11%
Precious Shipping PCL NVDR	361,200		105,824
Regional Container Lines PCL NVDR	180,600		29,950
Thoresen Thai Agencies PCL NVDR	307,230		116,336
			252,110
WATER – 0.71%
Thai Tap Water Supply PCL NVDR	1,209,600		161,146
			161,146
TOTAL COMMON STOCKS (Cost: $48,043,337)			22,611,031
WARRANTS – 0.00%
REAL ESTATE – 0.00%
Bangkok Land PCL NVDR (Expires 5/2/13)a,b	1,083,411		898
Ticon Industrial Connection PCL Class W3 NVDR (Expires 1/31/14)a,b	79,167		–
			898
TOTAL WARRANTS (Cost: $0)			898

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.25%
MONEY MARKET FUNDS – 0.25%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	56,510	$	56,510
			56,510
TOTAL SHORT-TERM INVESTMENTS
(Cost: $56,510)			56,510
TOTAL INVESTMENTS IN SECURITIES – 99.75%
(Cost: $48,099,847)			22,668,439
Other Assets, Less Liabilities – 0.25%			55,694
NET ASSETS – 100.00%		$	22,724,133

NVDR – Non-Voting Depositary Receipts

^a Non-income earning security.

^b Security valued using Level 3 inputs. 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.

42 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2009

	iShares MSCI
	Australia Index Fund			Hong Kong Index Fund			Japan Small Cap Index Fund			Malaysia Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	974,524,471		$	1,961,807,436		$	31,520,382		$	230,237,859
Affiliated issuers (Note 2)		14,637,845			128,282,547			782,927			76
Total cost of investments	$	989,162,316		$	2,090,089,983		$	32,303,309		$	230,237,935
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	425,670,155		$	1,059,171,762		$	22,272,667		$	300,665,274
Affiliated issuers (Note 2)		14,637,845			128,282,547			782,927			76
Total fair value of investments		440,308,000			1,187,454,309			23,055,594			300,665,350
Foreign currencies, at valueb		692,136			1,169,850			44,029			427,288
Receivables:
Investment securities sold		1,729,498			3,864,452			72			1,702,991
Dividends and interest		5,269,773			420,866			56,796			914,686
Total Assets		447,999,407			1,192,909,477			23,156,491			303,710,315
LIABILITIES
Payables:
Investment securities purchased		1,818,614			2,277,937			–			1,280,415
Collateral for securities on loan (Note 5)		14,249,063			128,222,123			774,258			–
Capital shares redeemed		–			37,109			–			–
Investment advisory fees (Note 2)		196,764			481,959			10,601			137,883
Total Liabilities		16,264,441			131,019,128			784,859			1,418,298
NET ASSETS	$	431,734,966		$	1,061,890,349		$	22,371,632		$	302,292,017
Net assets consist of:
Paid-in capital	$	1,190,753,108		$	2,139,686,896		$	33,293,357		$	336,641,596
Distributions in excess of net investment income		(6,926,921	)		(2,542,030	)		(18,597	)		(96,214	)
Accumulated net realized loss		(203,187,368	)		(172,618,547	)		(1,649,492	)		(104,662,202	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		(548,903,853	)		(902,635,970	)		(9,253,636	)		70,408,837
NET ASSETS	$	431,734,966		$	1,061,890,349		$	22,371,632		$	302,292,017
Shares outstandingc		38,000,000			108,375,000			700,000			43,200,000
Net asset value per share	$	11.36		$	9.80		$	31.96		$	7.00

^a Securities on loan with market values of $13,505,437, $121,299,172, $724,893 and $–, respectively. See Note 5.

^b Cost of foreign currencies: $701,063, $1,169,790, $47,096 and $432,302, respectively.

^c $0.001 par value, number of shares authorized: 127.8 million, 250 million, 500 million and 300 million, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 43

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2009

	iShares MSCI
	Pacific ex-Japan Index Fund			Singapore Index Fund			South Korea Index Fund			Taiwan Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	2,810,713,711		$	1,280,434,098		$	1,378,326,495		$	1,545,366,175
Affiliated issuers (Note 2)		154,132,874			164,037,753			178,836,797			962,952
Total cost of investments	$	2,964,846,585		$	1,444,471,851		$	1,557,163,292		$	1,546,329,127
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	1,762,147,915		$	616,625,285		$	1,081,502,053		$	1,129,849,732
Affiliated issuers (Note 2)		154,132,874			164,037,753			178,836,797			962,952
Total fair value of investments		1,916,280,789			780,663,038			1,260,338,850			1,130,812,684
Foreign currencies, at valueb		4,261,006			7,158,927			–			–
Receivables:
Investment securities sold		4,722,052			626,198			65,320,079			9,000,048
Dividends and interest		13,858,001			712,389			11,588,350			127
Capital shares sold		387,168			–			–			–
Total Assets		1,939,509,016			789,160,552			1,337,247,279			1,139,812,859
LIABILITIES
Payables:
Investment securities purchased		4,559,039			–			3,299,977			3,876,387
Collateral for securities on loan (Note 5)		153,354,532			163,976,107			173,446,369			–
Capital shares redeemed		–			929,323			61,997,927			4,199,724
Investment advisory fees (Note 2)		684,376			312,995			711,281			630,873
Total Liabilities		158,597,947			165,218,425			239,455,554			8,706,984
NET ASSETS	$	1,780,911,069		$	623,942,127		$	1,097,791,725		$	1,131,105,875
Net assets consist of:
Paid-in capital	$	3,021,632,418		$	1,521,262,970		$	2,197,195,621		$	2,520,286,907
Undistributed (distributions in excess of) net investment income		5,155,969			(4,239,871	)		8,726,446			(1,795,126	)
Accumulated net realized loss		(197,163,368	)		(229,163,059	)		(808,904,444	)		(971,867,720	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(1,048,713,950	)		(663,917,913	)		(299,225,898	)		(415,518,186	)
NET ASSETS	$	1,780,911,069		$	623,942,127		$	1,097,791,725		$	1,131,105,875
Shares outstandingc		81,600,000			107,500,000			49,050,000			161,600,000
Net asset value per share	$	21.82		$	5.80		$	22.38		$	7.00

^a Securities on loan with market values of $144,797,845, $155,321,882, $163,819,175 and $–, respectively. See Note 5.

^b Cost of foreign currencies: $4,305,371, $7,254,451, $– and $–, respectively.

^c $0.001 par value, number of shares authorized: 1 billion, 300 million, 200 million and 400 million, respectively.

See notes to financial statements.

44 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2009

	iShares MSCI
	Thailand Investable Market Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	48,043,337
Affiliated issuers (Note 2)		56,510
Total cost of investments	$	48,099,847
Investments in securities, at fair value (Note 1):
Unaffiliated issuers	$	22,611,929
Affiliated issuers (Note 2)		56,510
Total fair value of investments		22,668,439
Receivables:
Investment securities sold		1,102,357
Dividends and interest		95,064
Total Assets		23,865,860
LIABILITIES
Payables:
Investment securities purchased		1,129,067
Investment advisory fees (Note 2)		12,660
Total Liabilities		1,141,727
NET ASSETS	$	22,724,133
Net assets consist of:
Paid-in capital	$	65,419,443
Undistributed net investment income		86,775
Accumulated net realized loss		(17,348,575	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(25,433,510	)
NET ASSETS	$	22,724,133
Shares outstandinga		1,050,000
Net asset value per share	$	21.64

^a $0.001 par value, number of shares authorized: 200 million.

See notes to financial statements.

FINANCIAL STATEMENTS 45

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2009

	iShares MSCI
	Australia Index Fund			Hong Kong Index Fund			Japan Small Cap Index Fund			Malaysia Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	18,192,086		$	34,467,877		$	281,411		$	6,739,612
Interest from affiliated issuers (Note 2)		551			1,743			23			178
Securities lending income from affiliated issuers (Note 2)		129,867			483,052			8,519			–
Total investment income		18,322,504			34,952,672			289,953			6,739,790
EXPENSES
Investment advisory fees (Note 2)		1,652,169			3,375,298			73,256			903,793
Total expenses		1,652,169			3,375,298			73,256			903,793
Net investment income		16,670,335			31,577,374			216,697			5,835,997
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(101,650,584	)		(102,430,565	)		(352,343	)		(16,360,453	)
In-kind redemptions		(48,434,352	)		(2,164,993	)		(1,231,776	)		–
Foreign currency transactions		(2,173,383	)		55,774			37,045			(123,229	)
Net realized loss		(152,258,319	)		(104,539,784	)		(1,547,074	)		(16,483,682	)
Net change in unrealized appreciation (depreciation) on:
Investments		(352,245,995	)		(552,907,676	)		(7,251,143	)		(88,114,429	)
Translation of assets and liabilities in foreign currencies		123,509			(3,224	)		(6,011	)		16,226
Net change in unrealized appreciation (depreciation)		(352,122,486	)		(552,910,900	)		(7,257,154	)		(88,098,203	)
Net realized and unrealized loss		(504,380,805	)		(657,450,684	)		(8,804,228	)		(104,581,885	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(487,710,470	)	$	(625,873,310	)	$	(8,587,531	)	$	(98,745,888	)

^a Net of foreign withholding tax of $182,058, $–, $21,115 and $–, respectively.

See notes to financial statements.

46 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)(Continued)

iSHARES^®, INC.

Six months ended February 28, 2009

	iShares MSCI
	Pacific ex-Japan Index Fund			Singapore Index Fund			South Korea Index Fund			Taiwan Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	57,263,504		$	11,341,768		$	14,069,248		$	9,541,962
Interest from unaffiliated issuers		–			–			–			2,179
Interest from affiliated issuers (Note 2)		2,968			877			4,392			13,867
Securities lending income from affiliated issuers (Note 2)		744,501			523,776			2,218,132			–
Total investment income		58,010,973			11,866,421			16,291,772			9,558,008
EXPENSES
Investment advisory fees (Note 2)		5,096,242			2,459,861			4,492,166			5,307,974
Foreign taxes (Note 1)		–			–			28			705,508
Total expenses		5,096,242			2,459,861			4,492,194			6,013,482
Net investment income		52,914,731			9,406,560			11,799,578			3,544,526
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(149,869,328	)		(134,439,095	)		(467,503,410	)		(590,695,010	)
In-kind redemptions		43,936,305			(46,482,268	)		–			–
Foreign currency transactions		(5,197,887	)		(915,054	)		(125,713	)		(1,504,590	)
Net realized loss		(111,130,910	)		(181,836,417	)		(467,629,123	)		(592,199,600	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,406,095,989	)		(479,873,654	)		(546,971,685	)		(557,791,027	)
Translation of assets and liabilities in foreign currencies		184,354			(126,296	)		(2,457,536	)		420,737
Net change in unrealized appreciation (depreciation)		(1,405,911,635	)		(479,999,950	)		(549,429,221	)		(557,370,290	)
Net realized and unrealized loss		(1,517,042,545	)		(661,836,367	)		(1,017,058,344	)		(1,149,569,890	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(1,464,127,814	)	$	(652,429,807	)	$	(1,005,258,766	)	$	(1,146,025,364	)

^a Net of foreign withholding tax of $606,866, $–, $2,461,624 and $2,379,034, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 47

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2009

	iShares MSCI
	Thailand Investable Market Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	543,050
Interest from affiliated issuers (Note 2)		243
Total investment income		543,293
EXPENSES
Investment advisory fees (Note 2)		92,571
Total expenses		92,571
Net investment income		450,722
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(3,525,337	)
In-kind redemptions		(13,173,058	)
Foreign currency transactions		(5,391	)
Net realized loss		(16,703,786	)
Net change in unrealized appreciation (depreciation) on:
Investments		(4,378,584	)
Translation of assets and liabilities in foreign currencies		922
Net change in unrealized appreciation (depreciation)		(4,377,662	)
Net realized and unrealized loss		(21,081,448	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(20,630,726	)

^a Net of foreign withholding tax of $60,428.

See notes to financial statements.

48 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Australia Index Fund						iShares MSCI Hong Kong Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	16,670,335		$	53,814,337		$	31,577,374		$	50,723,883
Net realized gain (loss)		(152,258,319	)		153,528,689			(104,539,784	)		231,716,450
Net change in unrealized appreciation (depreciation)		(352,122,486	)		(365,807,308	)		(552,910,900	)		(582,947,008	)
Net decrease in net assets resulting from operations		(487,710,470	)		(158,464,282	)		(625,873,310	)		(300,506,675	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(33,295,338	)		(81,749,137	)		(41,093,456	)		(69,181,586	)
Total distributions to shareholders		(33,295,338	)		(81,749,137	)		(41,093,456	)		(69,181,586	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		188,224,807			709,635,261			222,481,817			1,671,011,829
Cost of shares redeemed		(294,576,279	)		(874,442,072	)		(168,809,100	)		(1,071,448,062	)
Net increase (decrease) in net assets from capital share transactions		(106,351,472	)		(164,806,811	)		53,672,717			599,563,767
INCREASE (DECREASE) IN NET ASSETS		(627,357,280	)		(405,020,230	)		(613,294,049	)		229,875,506
NET ASSETS
Beginning of period		1,059,092,246			1,464,112,476			1,675,184,398			1,445,308,892
End of period	$	431,734,966		$	1,059,092,246		$	1,061,890,349		$	1,675,184,398
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(6,926,921	)	$	9,698,082		$	(2,542,030	)	$	6,974,052
SHARES ISSUED AND REDEEMED
Shares sold		12,000,000			23,200,000			18,375,000			82,050,000
Shares redeemed		(18,200,000	)		(32,000,000	)		(15,525,000	)		(55,500,000	)
Net increase (decrease) in shares outstanding		(6,200,000	)		(8,800,000	)		2,850,000			26,550,000

See notes to financial statements.

FINANCIAL STATEMENTS 49

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Japan Small Cap Index Fund						iShares MSCI Malaysia Index Fund
	Six months ended February 28, 2009 (Unaudited)			Period from December 20, 2007a to August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	216,697		$	91,139		$	5,835,997		$	27,165,781
Net realized loss		(1,547,074	)		(107,449	)		(16,483,682	)		(42,591,881	)
Net change in unrealized appreciation (depreciation)		(7,257,154	)		(1,996,482	)		(88,098,203	)		(98,392,878	)
Net decrease in net assets resulting from operations		(8,587,531	)		(2,012,792	)		(98,745,888	)		(113,818,978	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(264,460	)		(56,942	)		(7,829,481	)		(46,957,845	)
Total distributions to shareholders		(264,460	)		(56,942	)		(7,829,481	)		(46,957,845	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		7,552,934			36,663,666			67,675,820			714,281,254
Cost of shares redeemed		(10,923,243	)		–			(131,899,200	)		(821,853,186	)
Net increase (decrease) in net assets from capital share transactions		(3,370,309	)		36,663,666			(64,223,380	)		(107,571,932	)
INCREASE (DECREASE) IN NET ASSETS		(12,222,300	)		34,593,932			(170,798,749	)		(268,348,755	)
NET ASSETS
Beginning of period		34,593,932			–			473,090,766			741,439,521
End of period	$	22,371,632		$	34,593,932		$	302,292,017		$	473,090,766
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(18,597	)	$	29,166		$	(96,214	)	$	1,897,270
SHARES ISSUED AND REDEEMED
Shares sold		200,000			800,000			9,075,000			56,250,000
Shares redeemed		(300,000	)		–			(16,275,000	)		(73,425,000	)
Net increase (decrease) in shares outstanding		(100,000	)		800,000			(7,200,000	)		(17,175,000	)

^a Commencement of operations.

See notes to financial statements.

50 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Pacific ex-Japan Index Fund						iShares MSCI Singapore Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	52,914,731		$	128,526,593		$	9,406,560		$	65,504,376
Net realized gain (loss)		(111,130,910	)		102,089,773			(181,836,417	)		132,846,334
Net change in unrealized appreciation (depreciation)		(1,405,911,635	)		(653,824,213	)		(479,999,950	)		(410,162,165	)
Net decrease in net assets resulting from operations		(1,464,127,814	)		(423,207,847	)		(652,429,807	)		(211,811,455	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(36,503,709	)		(199,385,029	)		(32,977,402	)		(95,160,270	)
From net realized gain		–			(4,628,288	)		–			–
Total distributions to shareholders		(36,503,709	)		(204,013,317	)		(32,977,402	)		(95,160,270	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		217,054,217			726,432,412			99,873,271			810,998,513
Cost of shares redeemed		(199,482,778	)		(371,535,398	)		(267,492,426	)		(696,268,481	)
Net increase (decrease) in net assets from capital share transactions		17,571,439			354,897,014			(167,619,155	)		114,730,032
DECREASE IN NET ASSETS		(1,483,060,084	)		(272,324,150	)		(853,026,364	)		(192,241,693	)
NET ASSETS
Beginning of period		3,263,971,153			3,536,295,303			1,476,968,491			1,669,210,184
End of period	$	1,780,911,069		$	3,263,971,153		$	623,942,127		$	1,476,968,491
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	5,155,969		$	(11,255,053	)	$	(4,239,871	)	$	19,330,971
SHARES ISSUED AND REDEEMED
Shares sold		9,000,000			13,800,000			12,400,000			58,500,000
Shares redeemed		(6,300,000	)		(8,100,000	)		(34,000,000	)		(55,100,000	)
Net increase (decrease) in shares outstanding		2,700,000			5,700,000			(21,600,000	)		3,400,000

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI South Korea Index Fund						iShares MSCI Taiwan Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	11,799,578		$	40,026,865		$	3,544,526		$	111,484,150
Net realized loss		(467,629,123	)		(254,209,320	)		(592,199,600	)		(187,544,546	)
Net change in unrealized appreciation (depreciation)		(549,429,221	)		(859,380,138	)		(557,370,290	)		(549,162,768	)
Net decrease in net assets resulting from operations		(1,005,258,766	)		(1,073,562,593	)		(1,146,025,364	)		(625,223,164	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(8,397,919	)		(49,844,649	)		(105,890,576	)		(68,184,922	)
Total distributions to shareholders		(8,397,919	)		(49,844,649	)		(105,890,576	)		(68,184,922	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		708,639,286			1,462,000,429			70,167,545			1,558,478,632
Cost of shares redeemed		(582,954,018	)		(782,282,834	)		(605,153,526	)		(716,827,104	)
Net increase (decrease) in net assets from capital share transactions		125,685,268			679,717,595			(534,985,981	)		841,651,528
INCREASE (DECREASE) IN NET ASSETS		(887,971,417	)		(443,689,647	)		(1,786,901,921	)		148,243,442
NET ASSETS
Beginning of period		1,985,763,142			2,429,452,789			2,918,007,796			2,769,764,354
End of period	$	1,097,791,725		$	1,985,763,142		$	1,131,105,875		$	2,918,007,796
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	8,726,446		$	5,324,787		$	(1,795,126	)	$	100,550,924
SHARES ISSUED AND REDEEMED
Shares sold		23,600,000			21,550,000			8,400,000			98,600,000
Shares redeemed		(20,150,000	)		(14,150,000	)		(69,000,000	)		(49,600,000	)
Net increase (decrease) in shares outstanding		3,450,000			7,400,000			(60,600,000	)		49,000,000

See notes to financial statements.

52 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Thailand Investable Market Index Fund
	Six months ended February 28, 2009 (Unaudited)			Period from March 26, 2008a to August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	450,722		$	412,262
Net realized loss		(16,703,786	)		(7,034,262	)
Net change in unrealized appreciation (depreciation)		(4,377,662	)		(21,055,848	)
Net decrease in net assets resulting from operations		(20,630,726	)		(27,677,848	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(775,148	)		–
Total distributions to shareholders		(775,148	)		–
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,486,702			147,211,231
Cost of shares redeemed		(17,604,972	)		(61,285,106	)
Net increase (decrease) in net assets from capital share transactions		(14,118,270	)		85,926,125
INCREASE (DECREASE) IN NET ASSETS		(35,524,144	)		58,248,277
NET ASSETS
Beginning of period		58,248,277			–
End of period	$	22,724,133		$	58,248,277
Undistributed net investment income included in net assets at end of period	$	86,775		$	411,201
SHARES ISSUED AND REDEEMED
Shares sold		150,000			2,900,000
Shares redeemed		(600,000	)		(1,400,000	)
Net increase (decrease) in shares outstanding		(450,000	)		1,500,000

^a Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 53

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Australia Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	23.96		$	27.62		$	21.59		$	18.28		$	13.56		$	11.22
Income from investment operations:
Net investment incomea		0.42			0.96			0.89			0.75			0.70			0.45
Net realized and unrealized gain (loss)b		(12.13	)		(3.34	)		6.24			3.23			4.60			2.32
Total from investment operations		(11.71	)		(2.38	)		7.13			3.98			5.30			2.77
Less distributions from:
Net investment income		(0.89	)		(1.28	)		(1.10	)		(0.67	)		(0.58	)		(0.43	)
Total distributions		(0.89	)		(1.28	)		(1.10	)		(0.67	)		(0.58	)		(0.43	)
Net asset value, end of period	$	11.36		$	23.96		$	27.62		$	21.59		$	18.28		$	13.56
Total return		(49.25	)%c		(9.25	)%		33.97	%		22.35	%		39.58	%		24.95	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	431,735		$	1,059,092		$	1,464,112		$	686,407		$	369,355		$	178,998
Ratio of expenses to average net assetsd		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%		0.79	%
Ratio of net investment income to average net assetsd		5.59	%		3.38	%		3.46	%		3.75	%		4.13	%		3.37	%
Portfolio turnover ratee		7	%		10	%		10	%		7	%		17	%		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.

54 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Hong Kong Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	15.87		$	18.30		$	14.20		$	13.01		$	10.91		$	9.03
Income from investment operations:
Net investment incomea		0.28			0.45			0.47			0.38			0.33			0.28
Net realized and unrealized gain (loss)b		(5.98	)		(2.25	)		3.94			1.17			2.04			1.75
Total from investment operations		(5.70	)		(1.80	)		4.41			1.55			2.37			2.03
Less distributions from:
Net investment income		(0.37	)		(0.63	)		(0.31	)		(0.36	)		(0.27	)		(0.15	)
Total distributions		(0.37	)		(0.63	)		(0.31	)		(0.36	)		(0.27	)		(0.15	)
Net asset value, end of period	$	9.80		$	15.87		$	18.30		$	14.20		$	13.01		$	10.91
Total return		(36.00	)%c		(10.54	)%		31.44	%		12.20	%		21.96	%		22.69	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,061,890		$	1,675,184		$	1,445,309		$	882,712		$	637,985		$	449,923
Ratio of expenses to average net assetsd		0.56	%		0.52	%		0.52	%		0.54	%		0.57	%		0.80	%
Ratio of net investment income to average net assetsd		5.21	%		2.34	%		2.92	%		2.87	%		2.75	%		2.78	%
Portfolio turnover ratee		6	%		17	%		9	%		10	%		6	%		5	%

^a Based on average shares outstanding throughout each period.

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

^c Not annualized.

^d Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 55

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Japan Small Cap Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Period from Dec. 20, 2007a to Aug. 31, 2008
Net asset value, beginning of period	$	43.24		$	48.85
Income from investment operations:
Net investment incomeb		0.30			0.29
Net realized and unrealized lossc		(11.14	)		(5.74	)
Total from investment operations		(10.84	)		(5.45	)
Less distributions from:
Net investment income		(0.44	)		(0.16	)
Total distributions		(0.44	)		(0.16	)
Net asset value, end of period	$	31.96		$	43.24
Total return		(25.23	)%d		(11.19	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	22,372		$	34,594
Ratio of expenses to average net assetse		0.56	%		0.53	%
Ratio of net investment income to average net assetse		1.65	%		0.93	%
Portfolio turnover ratef		3	%		7	%

^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.

56 2009 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. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	9.39		$	10.97		$	7.75		$	7.19		$	6.54		$	5.99
Income from investment operations:
Net investment incomea		0.13			0.34			0.34			0.26			0.20			0.13
Net realized and unrealized gain (loss)b		(2.34	)		(1.31	)		3.08			0.59			0.61			0.52
Total from investment operations		(2.21	)		(0.97	)		3.42			0.85			0.81			0.65
Less distributions from:
Net investment income		(0.18	)		(0.61	)		(0.20	)		(0.29	)		(0.16	)		(0.10	)
Total distributions		(0.18	)		(0.61	)		(0.20	)		(0.29	)		(0.16	)		(0.10	)
Net asset value, end of period	$	7.00		$	9.39		$	10.97		$	7.75		$	7.19		$	6.54
Total return		(23.62	)%c		(9.86	)%		44.64	%		12.35	%		12.39	%		11.01	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	302,292		$	473,091		$	741,440		$	374,334		$	387,575		$	224,218
Ratio of expenses to average net assetsd		0.56	%		0.52	%		0.51	%		0.54	%		0.57	%		0.79	%
Ratio of net investment income to average net assetsd		3.60	%		2.84	%		3.21	%		3.46	%		2.85	%		1.97	%
Portfolio turnover ratee		23	%		92	%		87	%		60	%		15	%		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.

^e Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the years ended August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 3%, 16%, 3%, 9% and 9%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 57

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Pacific ex-Japan Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a			Year ended Aug. 31, 2005a			Year ended Aug. 31, 2004a
Net asset value, beginning of period	$	41.37		$	48.31		$	37.34		$	32.52		$	25.24		$	20.68
Income from investment operations:
Net investment incomeb		0.70			1.64			1.52			1.28			1.23			0.89
Net realized and unrealized gain (loss)c		(19.76	)		(6.01	)		11.18			4.77			7.05			4.17
Total from investment operations		(19.06	)		(4.37	)		12.70			6.05			8.28			5.06
Less distributions from:
Net investment income		(0.49	)		(2.51	)		(1.73	)		(1.23	)		(1.00	)		(0.50	)
Net realized gain		–			(0.06	)		–			–			–			–
Total distributions		(0.49	)		(2.57	)		(1.73	)		(1.23	)		(1.00	)		(0.50	)
Net asset value, end of period	$	21.82		$	41.37		$	48.31		$	37.34		$	32.52		$	25.24
Total return		(46.19	)%d		(9.87	)%		34.86	%		19.17	%		33.27	%		24.74	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,780,911		$	3,263,971		$	3,536,295		$	2,094,931		$	1,522,107		$	651,250
Ratio of expenses to average net assetse		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assetse		5.19	%		3.35	%		3.43	%		3.67	%		4.09	%		3.68	%
Portfolio turnover ratef		5	%		14	%		11	%		8	%		16	%		8	%

^a Per share amounts were adjusted to reflect a three-for-one stock split effective July 24, 2008.

^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.

58 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Singapore Index Fund
	Six months ended Feb. 28,2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	11.44		$	13.28		$	9.11		$	7.77		$	6.52		$	5.38
Income from investment operations:
Net investment incomea		0.08			0.47			0.47			0.40			0.38			0.22
Net realized and unrealized gain (loss)b		(5.43	)		(1.67	)		4.01			1.23			1.15			1.04
Total from investment operations		(5.35	)		(1.20	)		4.48			1.63			1.53			1.26
Less distributions from:
Net investment income		(0.29	)		(0.64	)		(0.31	)		(0.29	)		(0.28	)		(0.12	)
Total distributions		(0.29	)		(0.64	)		(0.31	)		(0.29	)		(0.28	)		(0.12	)
Net asset value, end of period	$	5.80		$	11.44		$	13.28		$	9.11		$	7.77		$	6.52
Total return		(47.13	)%c		(9.55	)%		49.92	%		21.61	%		24.06	%		23.47	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	623,942		$	1,476,968		$	1,669,210		$	574,620		$	341,137		$	170,047
Ratio of expenses to average net assetsd		0.56	%		0.52	%		0.51	%		0.54	%		0.57	%		0.79	%
Ratio of net investment income to average net assetsd		2.12	%		3.56	%		3.80	%		4.74	%		5.19	%		3.50	%
Portfolio turnover ratee		6	%		16	%		8	%		6	%		8	%		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.

FINANCIAL HIGHLIGHTS 59

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI South Korea Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	43.55		$	63.60		$	46.00		$	34.75		$	24.17		$	23.06
Income from investment operations:
Net investment incomea		0.26			0.80			0.51			0.31			0.46			0.22
Net realized and unrealized gain (loss)b		(21.24	)		(19.87	)		17.42			11.20			10.22			1.13
Total from investment operations		(20.98	)		(19.07	)		17.93			11.51			10.68			1.35
Less distributions from:
Net investment income		(0.19	)		(0.98	)		(0.33	)		(0.26	)		(0.10	)		(0.24	)
Total distributions		(0.19	)		(0.98	)		(0.33	)		(0.26	)		(0.10	)		(0.24	)
Net asset value, end of period	$	22.38		$	43.55		$	63.60		$	46.00		$	34.75		$	24.17
Total return		(48.26	)%c		(30.35	)%		39.18	%		33.16	%		44.29	%		5.83	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,097,792		$	1,985,763		$	2,429,453		$	1,621,334		$	698,455		$	315,464
Ratio of expenses to average net assetsd		0.67	%		0.63	%		0.68	%		0.70	%		0.74	%		0.94	%
Ratio of expenses to average net assets exclusive of foreign taxesd		0.67	%		0.63	%		0.68	%		0.70	%		0.74	%		0.94	%
Ratio of net investment income to average net assetsd		1.77	%		1.35	%		0.96	%		0.71	%		1.49	%		0.87	%
Portfolio turnover ratee		41	%		42	%		20	%		47	%		30	%		29	%

^a Based on average shares outstanding throughout each period.

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

^c Not annualized.

^d Annualized for periods of less than one year.

^e Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the years ended August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 2%, 15%, 6%, 14% and 9%, respectively. See Note 4.

See notes to financial statements.

60 2009 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. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	13.13		$	15.99		$	12.57		$	11.57		$	10.66		$	10.79
Income from investment operations:
Net investment incomea		0.02			0.54			0.38			0.34			0.27			0.14
Net realized and unrealized gain (loss)b		(5.55	)		(3.01	)		3.34			0.80			0.72			(0.25	)
Total from investment operations		(5.53	)		(2.47	)		3.72			1.14			0.99			(0.11	)
Less distributions from:
Net investment income		(0.60	)		(0.39	)		(0.30	)		(0.14	)		(0.08	)		(0.02	)
Total distributions		(0.60	)		(0.39	)		(0.30	)		(0.14	)		(0.08	)		(0.02	)
Net asset value, end of period	$	7.00		$	13.13		$	15.99		$	12.57		$	11.57		$	10.66
Total return		(42.20	)%c		(15.69	)%		29.91	%		9.84	%		9.28	%		(1.10	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,131,106		$	2,918,008		$	2,769,764		$	1,893,751		$	752,640		$	390,228
Ratio of expenses to average net assetsd		0.76	%		0.73	%		0.77	%		0.85	%		1.03	%		1.19	%e
Ratio of expenses to average net assets exclusive of foreign taxesd		0.67	%		0.63	%		0.68	%		0.70	%		0.74	%		0.92	%
Ratio of net investment income to average net assetsd		0.45	%		3.54	%		2.61	%		2.74	%		2.34	%		1.23	%
Portfolio turnover ratef		8	%		33	%		35	%		29	%		20	%		19	%

^a Based on average shares outstanding throughout each period.

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

^c Not annualized.

^d Annualized for periods of less than one year.

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

^f Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the years ended August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 4%, 11%, 12%, 10% and 10%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 61

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Thailand Investable Market Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Period from Mar. 26, 2008a to Aug. 31, 2008
Net asset value, beginning of period	$	38.83		$	50.03
Income from investment operations:
Net investment incomeb		0.43			0.32
Net realized and unrealized lossc		(16.76	)		(11.52	)
Total from investment operations		(16.33	)		(11.20	)
Less distributions from:
Net investment income		(0.86	)		–
Total distributions		(0.86	)		–
Net asset value, end of period	$	21.64		$	38.83
Total return		(42.20	)%d		(22.39	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	22,724		$	58,248
Ratio of expenses to average net assetse		0.67	%		0.63	%
Ratio of net investment income to average net assetse		3.27	%		1.68	%
Portfolio turnover ratef		8	%		19	%

^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.

62 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

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

These financial statements relate only to the iShares MSCI Australia, iShares MSCI Hong Kong, iShares MSCI Japan Small Cap, iShares MSCI Malaysia, iShares MSCI Pacific ex-Japan, iShares MSCI Singapore, iShares MSCI South Korea, iShares MSCI Taiwan and iShares MSCI Thailand Investable Market 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, 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”). 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 valued pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”). Effective September 1, 2008, the Funds adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to

NOTES TO FINANCIAL STATEMENTS 63

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:

• Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”);

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”);

• Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”).

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Funds. The Funds consider observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.

Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Funds do not adjust the quoted price for such instruments, even in situations where the Funds hold a large position and a sale could reasonably impact the quoted price.

Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 Prices. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 Prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Funds use one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the

64 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

amount of such discount estimated by the Funds in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations.

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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

The following table summarizes the inputs used in valuing the Funds’ investments as of February 28, 2009:

	Investments in Securities
iShares MSCI Index Fund	Level 1		Level 2		Level 3		Total
Australia	$	440,308,000	$	–	$	–	$	440,308,000
Hong Kong		1,187,454,309		–		–		1,187,454,309
Japan Small Cap		23,055,594		–		–		23,055,594
Malaysia		300,665,350		–		–		300,665,350
Pacific ex-Japan		1,916,280,789		–		–		1,916,280,789
Singapore		780,663,038		–		–		780,663,038
South Korea		1,258,362,925		–		1,975,925		1,260,338,850
Taiwan		1,130,812,665		–		19		1,130,812,684
Thailand Investable Market		22,667,541		–		898		22,668,439

The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the six months ended February 28, 2009:

iShares MSCI Index Fund	Balance at Beginning of Period		(Amortized Premiums) Accreted Discounts		Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Net Transfers in or out		Balance at End of Period		Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at End of Period
Australia	$	138,879	$	–	$	(74,059	)	$	(64,820	)	$	–	$	–	$	–
Malaysia		17		–		41,558			(41,575	)		–		–		–
Pacific ex-Japan		279,757		–		(149,184	)		(130,573	)		–		–		–
South Korea		–		–		–			–			1,975,925		1,975,925		1,975,925
Taiwan		22		–		(3	)		–			–		19		(3	)
Thailand Investable Market		3		–		895			–			–		898		895

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.

NOTES TO FINANCIAL STATEMENTS 65

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 28, 2009, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

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 28, 2009.

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iSHARES^®, INC.

Certain Funds had tax basis net capital loss carryforwards as of August 31, 2008, the tax year-end of the Funds, as follows:

iShares MSCI Index Fund	Expiring 2009		Expiring 2010		Expiring 2011		Expiring 2012		Expiring 2013		Expiring 2014		Expiring 2015		Expiring 2016		Total
Australia	$	1,971,994	$	3,625,203	$	650,082	$	596,240	$	384,424	$	–	$	7,066	$	529,868	$	7,764,877
Hong Kong		–		4,971,970		2,870,602		2,330,414		468,716		425,440		2,899,247		3,185,408		17,151,797
Malaysia		–		9,819,029		2,898,105		775,477		6,820,474		1,543,708		3,357,786		1,127,892		26,342,471
Singapore		–		1,934,119		4,428,316		4,256,421		2,558,348		–		–		807,115		13,984,319
South Korea		395,465		666,642		504,041		3,363,449		11,590,303		3,172,573		38,097,223		–		57,789,696
Taiwan		–		12,532,361		8,689,663		9,129,874		12,022,719		14,435,986		64,999,586		16,734,578		138,544,767

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

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

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

As of February 28, 2009, 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	$	1,024,917,177	$	–	$	(584,609,177	)	$	(584,609,177	)
Hong Kong		2,132,370,540		–		(944,916,231	)		(944,916,231	)
Japan Small Cap		32,420,010		174,918		(9,539,334	)		(9,364,416	)
Malaysia		261,617,978		54,236,058		(15,188,686	)		39,047,372
Pacific ex-Japan		3,092,247,608		–		(1,175,966,819	)		(1,175,966,819	)
Singapore		1,465,573,585		–		(684,910,547	)		(684,910,547	)
South Korea		2,142,529,267		–		(882,190,417	)		(882,190,417	)
Taiwan		1,705,331,135		–		(574,518,451	)		(574,518,451	)
Thailand Investable Market		49,952,110		–		(27,283,671	)		(27,283,671	)

Management has reviewed the tax positions as of February 28, 2009, inclusive of the prior three open tax return years, as applicable, and has determined that no provision for income tax is required in the Funds’ financial statements.

NOTES TO FINANCIAL STATEMENTS 67

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 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 iShares MSCI Australia, iShares MSCI Hong Kong, iShares MSCI Japan Small Cap, iShares MSCI Malaysia and iShares MSCI Singapore Index Funds, BGFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of these Funds and certain other iShares Funds as follows:

Investment Advisory Fee	Aggregate Average Daily Net Assets
0.59%	First $7 billion
0.54	Over $7 billion, up to and including $11 billion
0.49	Over $11 billion, up to and including $24 billion
0.44	Over $24 billion, up to and including $48 billion
0.40	Over $48 billion

For its investment advisory services to the iShares MSCI South Korea, iShares MSCI Taiwan and iShares MSCI Thailand Investable Market 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 Funds and certain other iShares 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, up to and including $16 billion
0.51	Over $16 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.

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

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 28, 2009, BGI earned securities lending agent fees as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees
Australia	$	129,867
Hong Kong		483,052
Japan Small Cap		8,519

iShares MSCI Index Fund	Securities Lending Agent Fees
Pacific ex-Japan	$	744,501
Singapore		523,776
South Korea		2,218,132

Cross trades for the six months ended February 28, 2009, 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 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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.

Certain directors and officers of the Company are also officers of BGI and/or BGFA.

NOTES TO FINANCIAL STATEMENTS 69

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 28, 2009, were as follows:

iShares MSCI Index Fund	Purchases		Sales
Australia	$	43,957,291	$	57,425,966
Hong Kong		72,994,949		73,732,505
Japan Small Cap		855,333		977,511
Malaysia		76,596,498		141,769,433
Pacific ex-Japan		126,842,367		104,298,977
Singapore		55,085,238		81,073,188
South Korea		718,259,958		606,331,254
Taiwan		135,623,297		735,300,599
Thailand Investable Market		2,517,687		2,665,049

In-kind transactions (see Note 4) for the six months ended February 28, 2009, were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Australia	$	185,717,389	$	290,954,162
Hong Kong		217,675,636		165,475,577
Japan Small Cap		7,506,302		10,812,649
Pacific ex-Japan		213,802,830		197,222,158
Singapore		97,889,536		261,277,167
Thailand Investable Market		3,474,553		17,507,792

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 (except for the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds which are offered in Creation Units solely for cash in U.S. dollars). Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to 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.

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Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.

As of February 28, 2009, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of February 28, 2009 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. SUBSEQUENT EVENT

On April 9, 2009, Barclays Global Investors UK Holdings Limited (“Barclays”), the parent company of BGI and BGFA, entered into an agreement to sell its interest in BGFA and certain affiliated companies to Blue Sparkle, L.P., a Cayman Islands limited partnership (the “Transaction”). Blue Sparkle, L.P. is an investment vehicle for private equity funds affiliated with CVC Capital Partners Group SICAV-FIS S.A., a private equity and investment advisory firm. The Transaction is subject to certain regulatory approvals, as well as other conditions to closing.

Under the 1940 Act, completion of the Transaction will cause the automatic termination of each Fund’s current investment advisory agreement with BGFA. In order for the management of each Fund to continue uninterrupted, the Board will be asked to approve a new investment advisory agreement with BGFA. If approved by the Board, the new investment advisory agreement will be submitted to the Funds’ shareholders for their approval.

NOTES TO FINANCIAL STATEMENTS 71

Notes:

72 2009 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

  Capped (FIO)

iShares FTSE NAREIT Mortgage Plus

  Capped (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential Plus

  Capped (REZ)

iShares FTSE NAREIT Retail Capped (RTL)

iShares Global Index Funds

iShares S&P Global 100 (IOO)

iShares S&P Global Clean Energy (ICLN)

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 Nuclear Energy (NUCL)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications

  Sector (IXP)

iShares S&P Global Timber &

  Forestry (WOOD)

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 China (HK Listed) (FCHI)

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria Investable

  Market (EWO)

iShares MSCI Belgium Investable

  Market (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI Chile Investable

  Market (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 Investable

  Market (EWW)

iShares MSCI Netherlands Investable

  Market (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 Barclays Aggregate (AGG)

iShares Barclays MBS (MBB)

iShares Barclays Short Treasury (SHV)

iShares Barclays 1-3 Year Treasury (SHY)

iShares Barclays 3-7 Year Treasury (IEI)

iShares Barclays 7-10 Year Treasury (IEF)

iShares Barclays 10-20 Year Treasury (TLH)

iShares Barclays 20+ Year Treasury (TLT)

iShares Barclays TIPS (TIP)

iShares Barclays Agency (AGZ)

iShares Barclays Credit (CFT)

iShares Barclays 1-3 Year Credit (CSJ)

iShares Barclays Intermediate Credit (CIU)

iShares iBoxx $ Investment Grade

  Corporate (LQD)

iShares iBoxx $ High Yield Corporate (HYG)

iShares Barclays Government/Credit (GBF)

iShares Barclays Intermediate

  Government/Credit (GVI)

iShares S&P National Municipal (MUB)

iShares S&P Short Term National

  Municipal (SUB)

iShares S&P California Municipal (CMF)

iShares S&P New York Municipal (NYF)

iShares JPMorgan USD Emerging Markets (EMB)

iShares S&P/Citigroup International

  Treasury (IGOV)

iShares S&P/Citigroup 1-3 Year International Treasury (ISHG)

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 FAMILY OF FUNDS 73

The iShares^® Family of Funds (Continued)

iShares International Index Funds

iShares FTSE Developed Small Cap ex-North America (IFSM)

iShares FTSE EPRA/NAREIT Developed

  Asia (IFAS)

iShares FTSE EPRA/NAREIT Developed

  Europe (IFEU)

iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. (IFGL)

iShares FTSE EPRA/NAREIT North

  America (IFNA)

iShares MSCI ACWI (ACWI)

iShares MSCI ACWI ex US (ACWX)

iShares MSCI All Country Asia ex Japan (AAXJ)

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 Developed ex-U.S. Property (WPS)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

iShares NYSE Index Funds

iShares NYSE Composite (NYC)

iShares NYSE 100 (NY)

iShares S&P Allocation Funds

iShares S&P Conservative (AOK)

iShares S&P Moderate (AOM)

iShares S&P Growth (AOR)

iShares S&P Aggressive (AOA)

iShares S&P Target Date Index Funds

iShares S&P Target Date Retirement

  Income (TGR)

iShares S&P Target Date 2010 (TZD)

iShares S&P Target Date 2015 (TZE)

iShares S&P Target Date 2020 (TZG)

iShares S&P Target Date 2025 (TZI)

iShares S&P Target Date 2030 (TZL)

iShares S&P Target Date 2035 (TZO)

iShares S&P Target Date 2040 (TZV)

iShares^® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not 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, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or 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 2009 Semi-Annual Report.

iS-0569-0409

74 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

For more information:

WWW.iSHARES.COM

1-800-iShares (1-800-474-2737)

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global Investors, N.A. (BGI), neither of which is affiliated with SEI. The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company 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 company listed above.

©2009 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, service marks or registered trademarks are the property of their respective owners. Investing involves risk, including possible loss of principal. A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov. The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a monthly basis on the Funds’ website. This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

LET’S BUILD A BETTER INVESTMENT WORLD.®

BGI-SAR-83-0209

BARCLAYS GLOBAL INVESTORS

iShares

2009 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES® MSCI SERIES

FEBRUARY 28, 2009

Would you prefer to receive materials like this electronically?

See inside cover for details.

iShares MSCI Brazil Index Fund

iShares MSCI BRIC Index Fund

iShares MSCI Canada Index Fund

iShares MSCI Chile Investable Market Index Fund

iShares MSCI Israel Capped Investable Market Index Fund

iShares MSCI Mexico Investable Market Index Fund

iShares MSCI South Africa Index Fund

iShares MSCI Turkey Investable Market Index Fund

iShares®

iShares®

Dear iShares Shareholder:

Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.

To sign up for electronic delivery, please follow these simple steps:

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3. Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser.

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Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser.

Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.

Table of Contents

Fund Performance Overviews	1
Shareholder Expenses	9
Schedules of Investments	11
iShares MSCI Brazil Index Fund	11
iShares MSCI BRIC Index Fund	14
iShares MSCI Canada Index Fund	18
iShares MSCI Chile Investable Market Index Fund	21
iShares MSCI Israel Capped Investable Market Index Fund	23
iShares MSCI Mexico Investable Market Index Fund	26
iShares MSCI South Africa Index Fund	28
iShares MSCI Turkey Investable Market Index Fund	30
Financial Statements	33
Financial Highlights	41
Notes to Financial Statements	49
iShares Family of Funds	61

Fund Performance Overview

iSHARES^® MSCI BRAZIL INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund and the Index was (51.00)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(56.77)%	(56.97)%	(56.72)%	18.41%	18.31%	19.90%	9.18%	9.14%	11.19%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(56.77)%	(56.97)%	(56.72)%	132.81%	131.76%	147.81%	113.59%	112.94%	149.98%

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.

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (7/14/00), the NAV of the Fund is used as a proxy for the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Basic Materials	27.36	%
Energy	26.57
Financial	18.24
Utilities	8.64
Consumer Non-Cyclical	6.97
Communications	6.57
Diversified	1.61
Industrial	1.35
Consumer Cyclical	1.10
Short-Term and Other Net Assets	1.59
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Petroleo Brasileiro SA Preferred	13.25	%
Petroleo Brasileiro SA	11.93
Companhia Vale do Rio Doce Class A Preferred	9.87
Companhia Vale do Rio Doce ADR	7.64
Banco Bradesco SA Preferred	4.78
Banco Itau Holding Financeira SA Preferred	4.41
Unibanco – Uniao de Bancos Brasileiros SA Units	2.94
Companhia de Bebidas das Americas Preferred	2.82
Companhia Siderurgica Nacional	2.23
Companhia Energetica de Minas Gerais Preferred	2.02
TOTAL	61.89	%

FUND PERFORMANCE OVERVIEWS 1

Fund Performance Overview

iSHARES^® MSCI BRIC INDEX FUND

Performance as of February 28, 2009

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 six-month period ended February 28, 2009, the total return for the Fund was (49.62)%, while the total return for the Index was (49.50)%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/09			Inception to 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(58.40)%	(58.73)%	(58.87)%	(51.11)%	(51.52)%	(51.38)%	(60.52)%	(60.94)%	(60.80)%

Total returns for the period since inception are calculated from the inception date of the Fund (11/12/07). “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 primary 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 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 the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Energy	29.33	%
Financial	24.71
Communications	13.97
Basic Materials	11.14
Consumer Non-Cyclical	5.62
Industrial	4.09
Technology	3.99
Utilities	3.14
Diversified	2.15
Consumer Cyclical	1.46
Short-Term and Other Net Assets	0.40
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
China Mobile Ltd. (China)	7.61	%
Petroleo Brasileiro SA Preferred (Brazil)	4.98
OAO Gazprom SP ADR (Russia)	4.58
Petroleo Brasileiro SA (Brazil)	4.43
Reliance Industries Ltd. GDR (India)	3.53
Companhia Vale do Rio Doce Class A Preferred (Brazil)	3.30
China Life Insurance Co. Ltd. Class H (China)	3.08
China Construction Bank Class H (China)	2.65
Companhia Vale do Rio Doce (Brazil)	2.61
Infosys Technologies Ltd. SP ADR (India)	2.52
TOTAL	39.29	%

2 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI CANADA INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (49.44)%, while the total return for the Index was (49.45)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(51.73)%	(51.74)%	(51.68)%	2.04%	1.86%	2.17%	6.83%	6.75%	7.10%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(51.73)%	(51.74)%	(51.68)%	10.63%	9.66%	11.33%	93.64%	92.25%	98.48%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Financial	27.82	%
Energy	26.73
Basic Materials	21.49
Communications	6.43
Industrial	5.13
Technology	3.89
Consumer Non-Cyclical	2.68
Consumer Cyclical	2.50
Utilities	1.59
Diversified	1.42
Short-Term and Other Net Assets	0.32
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Royal Bank of Canada	5.66	%
EnCana Corp.	5.15
Barrick Gold Corp.	4.59
Potash Corp. of Saskatchewan Inc.	4.41
Toronto-Dominion Bank (The)	4.14
Bank of Nova Scotia	3.89
Goldcorp Inc.	3.69
Research In Motion Ltd.	3.54
Suncor Energy Inc.	3.40
Canadian Natural Resources Ltd.	3.02
TOTAL	41.49	%

FUND PERFORMANCE OVERVIEWS 3

Fund Performance Overview

iSHARES^® MSCI CHILE INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2009

The iShares MSCI Chile Investable Market 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 six-month period ended February 28, 2009, the total return for the Fund was (26.26)%, while the total return for the Index was (26.76)%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/09			Inception to 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(31.60)%	(31.33)%	(31.88)%	(25.30)%	(24.74)%	(25.61)%	(31.53)%	(30.87)%	(31.90)%

Total returns for the period since inception are calculated from the inception date of the Fund (11/12/07). “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 primary 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 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 the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Utilities	32.41	%
Basic Materials	19.48
Diversified	11.45
Consumer Non-Cyclical	10.91
Consumer Cyclical	9.95
Financial	8.68
Communications	3.31
Industrial	2.50
Technology	1.22
Short-Term and Other Net Assets	0.09
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Empresa Nacional de Electricidad SA	12.51	%
Enersis SA	11.38
Empresas Copec SA	10.92
Sociedad Quimica y Minera de Chile SA Class B Preferred	8.82
Empresas CMPC SA	5.90
Colbun SA	4.75
Banco Santander Chile SA	4.72
Centros Comerciales Sudamericanos SA	4.69
LAN Airlines SA	4.27
SACI Falabella SA	3.87
TOTAL	71.83	%

4 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2009

The iShares MSCI Israel Capped Investable Market 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 Israel Capped Investable Market Index^SM (the “Index”). The Index is a custom, free float adjusted market capitalization index designed to measure broad based equity market performance in Israel. 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 28, 2009, the total return for the Fund was (34.02)%, while the total return for the Index was (34.54)%.

Cumulative Total Returns
Inception to 2/28/09
NAV	MARKET	INDEX
(36.27)%	(38.05)%	(35.49)%

“Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated and are calculated from an inception date of 3/26/08.

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (03/28/08), the NAV of the Fund is used as a proxy for the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Communications	27.23	%
Consumer Non-Cyclical	25.98
Financial	22.27
Basic Materials	14.91
Industrial	6.23
Consumer Cyclical	1.03
Energy	0.97
Technology	0.67
Diversified	0.48
Short-Term and Other Net Assets	0.23
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Teva Pharmaceutical Industries Ltd.	23.99	%
Israel Chemicals Ltd.	11.28
Check Point Software Technologies Ltd.	10.66
Bank Leumi le-Israel	4.93
Bank Hapoalim Ltd.	4.89
Bezeq Israeli Telecommunication Corp. Ltd.	4.73
NICE Systems Ltd.	3.45
Partner Communications Co. Ltd.	3.32
Elbit Systems Ltd.	3.07
Makhteshim-Agan Industries Ltd.	2.82
TOTAL	73.14	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI MEXICO INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2009

The iShares MSCI Mexico Investable Market 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 28, 2009, the total return for the Fund was (53.38)%, while the total return for the Index was (53.39)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(56.15)%	(56.32)%	(56.79)%	5.62%	5.44%	5.60%	9.83%	9.96%	10.43%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(56.15)%	(56.32)%	(56.79)%	31.43%	30.32%	31.32%	155.31%	158.40%	169.67%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Communications	47.37	%
Consumer Non-Cyclical	12.79
Consumer Cyclical	10.93
Basic Materials	9.71
Industrial	9.11
Financial	6.04
Diversified	3.93
Short-Term and Other Net Assets	0.12
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
America Movil SAB de CV Series L	24.85	%
Telefonos de Mexico SAB de CV Series L	6.73
Fomento Economico Mexicano SAB de CV BD Units	5.88
Wal-Mart de Mexico SAB de CV Series V	5.87
Grupo Televisa SA Series CPO	5.25
Telmex Internacional SAB de CV Series L	4.66
Cemex SAB de CV Series CPO	4.11
Carso Global Telecom SAB de CV Series A1	4.05
Kimberly-Clark de Mexico SAB de CV Series A	3.51
Grupo Mexico SA de CV Series B	3.29
TOTAL	68.20	%

6 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (42.65)%, while the total return for the Index was (41.80)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(45.88)%	(45.25)%	(44.80)%	3.98%	3.68%	5.03%	10.95%	10.81%	12.27%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(45.88)%	(45.25)%	(44.80)%	21.56%	19.82%	27.81%	87.89%	86.49%	101.84%

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (2/7/03), the NAV of the Fund is used as a proxy for the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Basic Materials	28.56	%
Financial	20.50
Communications	18.66
Energy	12.62
Consumer Cyclical	5.47
Diversified	5.34
Consumer Non-Cyclical	5.25
Industrial	3.54
Short-Term and Other Net Assets	0.06
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Sasol Ltd.	12.62	%
MTN Group Ltd.	11.37
AngloGold Ashanti Ltd.	6.96
Standard Bank Group Ltd.	6.20
Gold Fields Ltd.	5.41
Impala Platinum Holdings Ltd.	5.31
Naspers Ltd.	4.92
Harmony Gold Mining Co. Ltd.	3.51
FirstRand Ltd.	2.83
Sanlam Ltd.	2.65
TOTAL	61.78	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2009

The iShares MSCI Turkey Investable Market 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 Turkey Investable Market Index^SM (the “Index”). The Index is a free float adjusted market capitalization index designed to measure broad based equity market performance in Turkey. 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 28, 2009, the total return for the Fund was (57.66)%, while the total return for the Index was (57.89)%.

Cumulative Total Returns
Inception to 2/28/09
NAV	MARKET	INDEX
(55.88)%	(55.76)%	(55.99)%

“Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated and are calculated from an inception date of 3/26/08.

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (03/28/08), the NAV of the Fund is used as a proxy for the Market 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(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 2/28/09
Sector	Percentage of Net Assets
Financial	39.47	%
Communications	18.65
Consumer Non-Cyclical	11.02
Basic Materials	7.09
Diversified	6.97
Industrial	6.96
Consumer Cyclical	4.80
Energy	4.38
Utilities	0.60
Short-Term and Other Net Assets	0.06
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Turkcell Iletisim Hizmetleri AS	13.03	%
Turkiye Garanti Bankasi AS	10.27
Akbank TAS	8.32
Turkiye Is Bankasi AS	7.41
Turk Telekomunikasyon AS	5.04
Anadolu Efes Biracilik ve Malt Sanayii AS	4.88
Eregli Demir ve Celik Fabrikalari TAS	4.53
Tupras-Turkiye Petrol Rafinerileri AS	4.38
Enka Insaat ve Sanayi AS	3.61
Yapi ve Kredi Bankasi AS	3.47
TOTAL	64.94	%

8 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited)

iSHARES^®, INC.

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2008 to February 28, 2009.

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 (9/1/08)	Ending Account Value (2/28/09)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/08 to 2/28/09)
Brazil
Actual	$1,000.00	$   490.00	0.67	%	$2.48
Hypothetical (5% return before expenses)	1,000.00	1,021.50	0.67		3.36
BRIC
Actual	1,000.00	503.80	0.74		2.76
Hypothetical (5% return before expenses)	1,000.00	1,021.10	0.74		3.71
Canada
Actual	1,000.00	505.60	0.55		2.05
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.55		2.76
Chile Investable Market
Actual	1,000.00	737.40	0.68		2.93
Hypothetical (5% return before expenses)	1,000.00	1,021.40	0.68		3.41

SHAREHOLDER EXPENSES 9

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (9/1/08)	Ending Account Value (2/28/09)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/08 to 2/28/09)
Israel Capped Investable Market
Actual	$1,000.00	$   659.80	0.67	%	$2.76
Hypothetical (5% return before expenses)	1,000.00	1,021.50	0.67		3.36
Mexico Investable Market
Actual	1,000.00	466.20	0.55		2.00
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.55		2.76
South Africa
Actual	1,000.00	573.50	0.67		2.61
Hypothetical (5% return before expenses)	1,000.00	1,021.50	0.67		3.36
Turkey Investable Market
Actual	1,000.00	423.40	0.67		2.36
Hypothetical (5% return before expenses)	1,000.00	1,021.50	0.67		3.36

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

10 2009 iSHARES SEMI-ANNUAL TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 42.33%
AEROSPACE & DEFENSE – 0.73%
Empresa Brasileira de Aeronautica SA	10,242,032	$	28,383,091
			28,383,091
AGRICULTURE – 0.94%
Souza Cruz SA	1,820,800		36,752,902
			36,752,902
BANKS – 4.37%
Banco do Brasil SA	7,283,260		42,419,323
Banco Nossa Caixa SA	455,200		13,380,353
Unibanco - Uniao de Bancos Brasileiros SA Units	21,622,020		114,565,792
			170,365,468
COMMERCIAL SERVICES – 0.58%
Companhia de Concessoes Rodoviarias	2,336,000		22,770,597
			22,770,597
COSMETICS & PERSONAL CARE – 0.67%
Natura Cosmeticos SA	2,846,200		25,972,473
			25,972,473
DIVERSIFIED FINANCIAL SERVICES – 2.69%
BM&F Bovespa SA	21,394,400		53,530,984
Redecard SA	4,908,600		51,604,289
			105,135,273
ELECTRIC – 2.96%
Centrais Eletricas Brasileiras SA	4,226,399		46,565,035
CPFL Energia SA	2,731,250		36,121,872
EDP Energias do Brasil SA	1,365,600		13,437,780
Tractebel Energia SA	2,599,200		19,444,814
			115,569,501
FOOD – 1.31%
Cosan SA Industria e Comercioa	1,621,690		7,024,141
JBS SA	7,322,187		14,194,820
Perdigao SA	2,391,475		29,777,786
			50,996,747
HOME BUILDERS – 0.18%
MRV Engenharia e Participacoes SA	1,593,249		6,981,352
			6,981,352

Security	Shares	Value
INSURANCE – 0.11%
Porto Seguro SA	910,400	$	4,440,976
			4,440,976
INTERNET – 0.26%
B2W - Companhia Global do Varejo	1,138,030		10,222,170
			10,222,170
IRON & STEEL – 2.91%
Companhia Siderurgica Nacional	6,600,427		87,015,722
Gerdau SA	3,281,600		13,786,032
Usinas Siderurgicas de Minas Gerais SA	1,223,000		12,662,010
			113,463,764
MINING – 7.64%
Companhia Vale do Rio Doce ADRb	23,117,332		297,982,410
			297,982,410
OIL & GAS – 13.32%
OGX Petroleo e Gas Participacoes SAa	227,600		54,076,535
Petroleo Brasileiro SA	33,868,544		465,728,086
			519,804,621
REAL ESTATE – 0.56%
Cyrela Brazil Realty SA	3,869,200		11,454,654
Gafisa SA	2,503,685		10,433,776
			21,888,430
RETAIL – 0.38%
Lojas Renner SA	2,503,600		14,844,727
			14,844,727
TELECOMMUNICATIONS – 1.57%
Brasil Telecom Participacoes SA	1,195,982		30,352,192
GVT (Holding) SAa	1,365,603		14,069,501
Tele Norte Leste Participacoes SA	1,138,038		16,989,213
			61,410,906
TRANSPORTATION – 0.62%
ALL - America Latina Logistica SA	7,062,300		24,263,662
			24,263,662

SCHEDULES OF INVESTMENTS 11

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2009

Security	Shares	Value
WATER – 0.53%
Companhia de Saneamento Basico do Estado de Sao Paulo	2,048,400	$	20,707,963
			20,707,963
TOTAL COMMON STOCKS (Cost: $2,037,684,505)			1,651,957,033
PREFERRED STOCKS – 56.08%
AIRLINES – 0.18%
Tam SA	1,036,725		7,040,836
			7,040,836
BANKS – 9.40%
Banco Bradesco SA	21,426,940		186,517,098
Banco do Estado do Rio Grande do Sul SA	3,405,910		8,092,259
Banco Itau Holding Financeira SA	18,435,625		172,107,180
			366,716,537
BEVERAGES – 2.82%
Companhia de Bebidas das Americas	2,731,291		110,136,036
			110,136,036
CHEMICALS – 1.64%
Braskem SA Class A	3,298,136		7,461,721
Fertilizantes Fosfatados SA	3,287,280		19,906,153
Ultrapar Participacoes SA	1,593,200		36,600,722
			63,968,596
ELECTRIC – 5.15%
AES Tiete SA	1,138,000		8,446,467
Centrais Eletricas Brasileiras SA Class B	3,998,900		40,779,363
Companhia de Transmissao de Energia Eletrica Paulista	455,200		8,671,388
Companhia Energetica de Minas Gerais	5,650,686		79,009,802
Companhia Energetica de Sao Paulo Class B	2,731,270		15,666,326
Companhia Paranaense de Energia Class B	2,166,100		20,312,881

Security	Shares	Value
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B	2,276,020	$	28,033,905
			200,920,132
FOOD – 0.65%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar	1,365,628		16,533,402
Sadia SA	7,283,200		8,759,442
			25,292,844
FOREST PRODUCTS & PAPER – 1.12%
Aracruz Celulose SA Class B	9,786,800		7,037,606
Klabin SA	11,152,400		14,444,656
Suzano Bahia Sul Papel e Celulose SAa	2,503,685		11,360,286
Votorantim Celulose e Papel SAa	2,276,100		11,007,212
			43,849,760
HOLDING COMPANIES - DIVERSIFIED – 1.61%
Itausa-Investimentos Itau SA	21,166,897		62,931,018
			62,931,018
INVESTMENT COMPANIES – 1.11%
Bradespar SA	4,589,300		43,229,739
			43,229,739
IRON & STEEL – 4.18%
Gerdau SA	13,428,446		71,490,381
Metalurgica Gerdau SA	5,603,790		39,330,217
Usinas Siderurgicas de Minas Gerais SA Class A	4,779,600		52,117,337
			162,937,935
MEDIA – 0.52%
Net Servicos de Comunicacao SAa	3,168,892		20,188,694
			20,188,694
MINING – 9.87%
Companhia Vale do Rio Doce Class A	34,140,000		385,187,637
			385,187,637
OIL & GAS – 13.25%
Petroleo Brasileiro SA	46,585,150		517,177,443
			517,177,443

12 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2009

Security	Shares	Value
RETAIL – 0.36%
Lojas Americanas SA	5,917,600	$	14,059,899
			14,059,899
TELECOMMUNICATIONS – 4.22%
Brasil Telecom Participacoes SA	3,800,030		23,969,912
Brasil Telecom SA	3,138,259		15,427,354
Tele Norte Leste Participacoes SA	4,552,039		56,756,920
Telemar Norte Leste SA Class A	910,480		17,868,840
TIM Participacoes SA	9,534,200		13,471,368
Vivo Participacoes SA	2,276,020		37,040,359
			164,534,753
TOTAL PREFERRED STOCKS (Cost: $2,847,830,752)			2,188,171,859
RIGHTS – 0.00%
MEDIA – 0.00%
Net Servicos de Comunicacao SA Preferreda	36,090		21,095
			21,095
TELECOMMUNICATIONS – 0.00%
Vivo Participacoes SA Preferreda	35,260		65,983
			65,983
TOTAL RIGHTS (Cost: $0)			87,078

Security	Shares	Value
SHORT-TERM INVESTMENTS – 2.09%
MONEY MARKET FUNDS – 2.09%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	58,690,773	$	58,690,773
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	9,811,377		9,811,377
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	12,939,124		12,939,124
			81,441,274
TOTAL SHORT-TERM INVESTMENTS
(Cost: $81,441,274)			81,441,274
TOTAL INVESTMENTS IN SECURITIES – 100.50% (Cost: $4,966,956,531)			3,921,657,244
Other Assets, Less Liabilities – (0.50)%			(19,398,235	)
NET ASSETS – 100.00%		$	3,902,259,009

ADR – American Depositary Receipts

^a Non-income earning security.

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

^c Affiliated issuer. See Note 2.

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

^e All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 13

Schedule of Investments (Unaudited)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 80.43%
BRAZIL – 13.41%
ALL - America Latina Logistica SA	62,300	$	214,042
B2W - Companhia Global do Varejo	8,900		79,943
Banco do Brasil SA	53,400		311,013
BM&F Bovespa SA	152,169		380,742
Brasil Telecom Participacoes SA	8,900		225,868
Centrais Eletricas Brasileiras SA	35,600		392,229
Companhia de Concessoes Rodoviarias	26,700		260,263
Companhia Siderurgica Nacional	53,400		703,991
Companhia Vale do Rio Doce	195,800		2,541,777
Cosan SA Industria e Comercioa	17,800		77,098
CPFL Energia SA	17,800		235,412
Cyrela Brazil Realty SA	35,600		105,393
Empresa Brasileira de Aeronautica SA	71,200		197,312
Gafisa SA	17,800		74,179
Gerdau SA	35,600		149,556
GVT (Holding) SAa	8,900		91,695
JBS SA	20,452		39,648
Lojas Renner SA	8,900		52,771
MRV Engenharia e Participacoes SA	8,900		38,998
OGX Petroleo e Gas Participacoes SAa	1,000		237,595
Perdigao SA	26,700		332,459
Petroleo Brasileiro SA	313,600		4,312,330
Redecard SA	35,600		374,264
Souza Cruz SA	17,800		359,294
Tele Norte Leste Participacoes SA	8,900		132,864
Tractebel Energia SA	26,700		199,745
Unibanco - Uniao de Bancos Brasileiros SA Units	160,200		848,831
Usinas Siderurgicas de Minas Gerais SA	8,900		92,144
			13,061,456
CHINA – 41.50%
Agile Property Holdings Ltd.	356,000		120,734
Air China Ltd. Class H	534,000		145,294
Alibaba.com Ltd.a	44,500		38,504
Aluminum Corp. of China Ltd. Class Hb	534,000		254,781

Security	Shares	Value
Angang New Steel Co. Ltd. Class Hb	178,000	$	150,803
Anhui Conch Cement Co. Ltd. Class Ha,b	38,000		160,724
Bank of China Ltd. Class H	5,073,000		1,419,542
Bank of Communications Co. Ltd. Class H	979,000		594,603
Beijing Capital International Airport Co. Ltd. Class H	178,000		66,564
Belle International Holdings Ltd.	445,000		189,938
BYD Co. Ltd. Class Ha,b	133,500		260,978
Chaoda Modern Agriculture (Holdings) Ltd.	370,556		215,026
China Agri-Industries Holdings Ltd.a	356,000		162,050
China CITIC Bank Class H	712,000		257,994
China Coal Energy Co. Class H	534,000		331,215
China Communications Construction Co. Ltd. Class H	623,000		607,342
China Construction Bank Class H	5,073,000		2,583,960
China COSCO Holdings Co. Ltd. Class H	400,500		218,974
China Dongxiang Group Co.	267,000		89,518
China Everbright Ltd.	178,000		199,693
China High Speed Transmission Equipment Group Co. Ltd.	89,000		116,143
China Huiyuan Juice Group Ltd.	89,000		103,290
China Life Insurance Co. Ltd. Class H	1,068,000		3,002,282
China Mengniu Dairy Co. Ltd.	178,000		222,646
China Merchants Bank Co. Ltd. Class H	400,500		593,915
China Merchants Holdings (International) Co. Ltd.b	178,000		295,179
China Mobile Ltd.b	845,500		7,413,893
China National Building Material Co. Ltd. Class H	178,000		206,579
China Oilfield Services Ltd. Class H	356,000		253,404
China Overseas Land & Investment Ltd.b	740,800		987,746

14 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2009

Security	Shares	Value
China Petroleum & Chemical Corp. Class H	2,314,000	$	1,208,488
China Railway Construction Corp. Class Ha	311,500		381,597
China Railway Group Ltd. Class Ha	534,000		296,097
China Resources Enterprise Ltd.	178,000		252,945
China Resources Land Ltd.b	356,000		387,909
China Resources Power Holdings Co. Ltd.	178,000		335,117
China Shenhua Energy Co. Ltd. Class H	489,500		972,069
China Shipping Container Lines Co. Ltd. Class H	445,000		62,547
China Shipping Development Co. Ltd. Class H	178,000		140,474
China Telecom Corp. Ltd. Class H	1,436,000		490,709
China Unicom (Hong Kong) Ltd.	739,900		670,737
China Yurun Food Group Ltd.	178,000		210,711
CITIC Pacific Ltd.	86,000		89,938
CNOOC Ltd.	2,225,000		1,951,025
CNPC Hong Kong Ltd.b	890,000		302,983
Country Garden Holdings Co.	534,000		102,601
Datang International Power Generation Co. Ltd. Class H	534,000		225,860
Denway Motors Ltd.	890,000		267,405
Dongfeng Motor Group Co. Ltd. Class H	534,000		198,316
Fosun International Ltd.	311,500		91,583
GOME Electrical Appliances Holdings Ltd.	1,080,000		155,979
Guangdong Investment Ltd.	534,000		224,483
Guangshen Railway Co. Ltd. Class H	178,000		52,792
Guangzhou R&F Properties Co. Ltd. Class Hb	178,000		135,424
Harbin Power Equipment Co. Ltd. Class H	178,000		104,667
Hengan International Group Co. Ltd.	178,000		647,281
Huaneng Power International Inc. Class H	356,000		235,500

Security	Shares	Value
Industrial and Commercial Bank of China Ltd. Class H	5,874,000	$	2,408,712
Jiangsu Expressway Co. Ltd. Class H	356,000		238,254
Jiangxi Copper Co. Ltd. Class H	267,000		196,250
Lenovo Group Ltd.	534,000		99,158
Li Ning Co. Ltd.b	178,000		222,646
Maanshan Iron & Steel Co. Ltd. Class Hb	356,000		105,585
Parkson Retail Group Ltd.	44,500		36,266
PetroChina Co. Ltd. Class H	2,848,000		2,030,902
PICC Property & Casualty Co. Ltd. Class Ha	356,000		161,591
Ping An Insurance (Group) Co. of China Ltd. Class H	178,000		856,155
Shanghai Electric Group Corp. Class H	534,000		134,965
Shanghai Industrial Holdings Ltd.	89,000		204,284
Shimao Property Holdings Ltd.	267,000		138,752
Shui On Land Ltd.	445,000		102,716
Sinofert Holdings Ltd.	356,000		162,968
Sino-Ocean Land Holdings Ltd.	578,500		281,980
Soho China Ltd.	267,000		83,320
Tencent Holdings Ltd.	99,000		573,837
Tingyi (Cayman Islands) Holding Corp.	178,000		197,398
Yanzhou Coal Mining Co. Ltd. Class H	356,000		205,661
Zhejiang Expressway Co. Ltd. Class H	356,000		233,664
Zijin Mining Group Co. Ltd. Class H	534,000		287,145
			40,420,760
INDIA – 12.95%
Ambuja Cements Ltd. SP GDRc,d	302,908		376,424
Dr. Reddy’s Laboratories Ltd. ADR	104,575		838,691
HDFC Bank Ltd. ADRb	34,443		1,756,593
Hindalco Industries Ltd. GDRd,e	372,936		281,492
ICICI Bank Ltd. SP ADR	102,617		1,278,608
Infosys Technologies Ltd. SP ADR	101,371		2,453,178
Mahanagar Telephone Nigam Ltd. ADR	180,263		504,736
Reliance Industries Ltd. GDRb,e	70,577		3,440,629

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2009

Security	Shares	Value
Satyam Computer Services Ltd. ADRb	240,834	$	313,084
Tata Communications Ltd. ADR	21,627		343,004
Wipro Ltd. ADRb	180,136		1,024,974
			12,611,413
RUSSIA – 12.57%
Comstar United Telesystems GDR	37,380		100,926
JSC MMC Norilsk Nickel ADR	109,072		512,638
LUKOIL SP ADR	69,776		2,235,623
Mechel OAO ADRb	29,726		104,041
Mobile TeleSystems SP ADR	26,700		632,523
Novolipetsk Steel GDRc	11,570		114,080
OAO Gazprom SP ADR	343,162		4,457,674
OAO NOVATEK SP GDRc	10,591		248,888
OAO Rosneft Oil Co. GDR	180,492		635,332
OAO Tatneft SP ADRc	9,701		345,356
OAO TMK GDRc	13,261		49,729
Pharmstandard GDRa,c	12,282		80,079
PIK Group GDRa,c	13,884		7,220
Polyus Gold SP ADR	19,580		365,167
Rostelecom SP ADR	8,900		428,268
Sberbank GDRb,c	8,277		504,586
Severstal GDRc	29,459		106,936
Sistema JSFC SP GDRc	15,575		52,176
Surgutneftegaz SP ADR	95,230		544,716
Uralkali SP GDRc	24,742		158,349
Vimpel-Communications SP ADR	68,886		360,963
VTB Bank OJSC GDRc	88,021		94,182
Wimm-Bill-Dann Foods OJSC ADRa	3,382		100,209
			12,239,661
TOTAL COMMON STOCKS (Cost: $172,185,013)			78,333,290
PREFERRED STOCKS – 19.17%
BRAZIL – 19.17%
AES Tiete SA	8,900		66,058
Aracruz Celulose SA Class B	44,500		32,000
Banco Bradesco SA	213,607		1,859,405
Banco do Estado do Rio Grande do Sul SA	8,900		21,146
Banco Itau Holding Financeira SA	178,000		1,661,732

Security	Shares	Value
Bradespar SA	35,600	$	335,341
Brasil Telecom Participacoes SA	29,221		184,321
Brasil Telecom SA	13,353		65,642
Braskem SA Class A	26,700		60,406
Centrais Eletricas Brasileiras SA Class B	26,700		272,278
Companhia de Bebidas das Americas	26,700		1,076,645
Companhia de Transmissao de Energia Eletrica Paulista	8,900		169,542
Companhia Energetica de Minas Gerais	35,923		502,287
Companhia Energetica de Sao Paulo Class B	26,700		153,149
Companhia Paranaense de Energia Class B	17,800		166,922
Companhia Vale do Rio Doce Class A	284,800		3,213,282
Duratex SA	8,900		57,225
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B	8,900		109,622
Fertilizantes Fosfatados SA	17,820		107,909
Gerdau SA	97,900		521,200
Itausa - Investimentos Itau SA	294,851		876,618
Klabin SA	53,400		69,164
Lojas Americanas SA	53,400		126,875
Metalurgica Gerdau SA	42,400		297,584
Net Servicos de Comunicacao SAa	26,700		170,103
Petroleo Brasileiro SA	436,900		4,850,362
Sadia SA	62,300		74,928
Tam SA	8,900		60,444
Tele Norte Leste Participacoes SA	35,600		443,877
Telemar Norte Leste SA Class A	8,900		174,669
TIM Participacoes SA	80,100		113,177
Usinas Siderurgicas de Minas Gerais SA Class A	37,750		411,630
Vivo Participacoes SA	19,800		322,229
Votorantim Celulose e Papel SAa	8,900		43,040
			18,670,812
TOTAL PREFERRED STOCKS (Cost: $39,657,148)			18,670,812

16 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2009

Security	Shares	Value
RIGHTS – 0.00%
BRAZIL – 0.00%
Net Servicos de Comunicacao SA Preferreda	340	$	199
Vivo Participacoes SA Preferreda	319		597
			796
TOTAL RIGHTS (Cost: $0)			796
SHORT-TERM INVESTMENTS – 12.61%
MONEY MARKET FUNDS – 12.61%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%f,g,h	10,353,870		10,353,870
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%f,g,h	1,730,864		1,730,864
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%f,g	193,495		193,495
			12,278,229
TOTAL SHORT-TERM INVESTMENTS
(Cost: $12,278,229)			12,278,229
TOTAL INVESTMENTS IN SECURITIES – 112.21% (Cost: $224,120,390)			109,283,127
Other Assets, Less Liabilities – (12.21)%			(11,889,572	)
NET ASSETS – 100.00%		$	97,393,555

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 foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^d Security valued using Level 3 inputs. See Note 1.

^e This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^f Affiliated issuer. See Note 2.

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

^h All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.68%
ADVERTISING – 0.26%
Groupe Aeroplan Inc.	314,755	$	2,316,910
			2,316,910
AEROSPACE & DEFENSE – 0.23%
CAE Inc.	394,485		2,058,156
			2,058,156
AIRLINES – 0.01%
Jazz Air Income Funda	20,078		66,935
			66,935
APPAREL – 0.14%
Gildan Activewear Inc.b	174,930		1,304,203
			1,304,203
AUTO PARTS & EQUIPMENT – 0.48%
Magna International Inc. Class A	167,195		4,300,938
			4,300,938
BANKS – 18.85%
Bank of Montreal	841,925		18,771,374
Bank of Nova Scotia	1,547,595		35,017,104
Canadian Imperial Bank of Commerce	596,785		20,294,970
National Bank of Canada	249,900		7,460,466
Royal Bank of Canada	2,090,830		50,950,438
Toronto-Dominion Bank (The)	1,266,160		37,310,732
			169,805,084
CHEMICALS – 5.48%
Agrium Inc.	246,330		8,575,006
Methanex Corp.	146,965		1,082,967
Potash Corp. of Saskatchewan Inc.	471,835		39,707,248
			49,365,221
COMMERCIAL SERVICES – 0.26%
Ritchie Bros. Auctioneers Inc.	155,295		2,370,701
			2,370,701
COMPUTERS – 3.89%
CGI Group Inc.b	427,111		3,130,498
Research In Motion Ltd.b	796,110		31,898,359
			35,028,857
DIVERSIFIED FINANCIAL SERVICES – 1.06%
CI Financial Corp.	254,065		2,619,041
IGM Financial Inc.	186,830		4,116,930

Security	Shares	Value
TMX Group Inc.	116,620	$	2,841,857
			9,577,828
ELECTRIC – 1.13%
Fortis Inc.	264,775		5,010,244
TransAlta Corp.	311,164		5,167,061
			10,177,305
ENGINEERING & CONSTRUCTION – 0.60%
SNC-Lavalin Group Inc.	238,000		5,447,074
			5,447,074
FOOD – 2.03%
Empire Co. Ltd. Class A	41,055		1,631,069
George Weston Ltd.	81,515		3,886,072
Loblaw Companies Ltd.	173,740		4,266,650
Metro Inc. Class A	155,894		4,693,345
Saputo Inc.	226,100		3,816,891
			18,294,027
FOREST PRODUCTS & PAPER – 0.18%
Sino-Forest Corp.b	238,595		1,598,343
			1,598,343
GAS – 0.46%
Canadian Utilities Ltd. Class A	126,147		4,105,979
			4,105,979
HAND & MACHINE TOOLS – 0.27%
Finning International Inc.	272,517		2,422,660
			2,422,660
HEALTH CARE - SERVICES – 0.13%
MDS Inc.b	182,665		1,209,273
			1,209,273
HOLDING COMPANIES - DIVERSIFIED – 1.42%
Brookfield Asset Management Inc. Class A	767,550		10,198,915
Onex Corp.	151,725		1,895,292
Sherritt International Corp.	442,680		711,721
			12,805,928
INSURANCE – 7.53%
Fairfax Financial Holdings Ltd.	26,180		6,372,664
Great-West Lifeco Inc.	446,845		5,617,037
Industrial Alliance Insurance and Financial Services Inc.	124,355		1,653,362
ING Canada Inc.	126,735		3,265,135

18 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2009

Security	Shares	Value
Manulife Financial Corp.	2,332,995	$	23,718,828
Power Corp. of Canada	540,260		7,745,068
Power Financial Corp.	389,725		5,768,243
Sun Life Financial Inc.	875,840		13,743,133
			67,883,470
IRON & STEEL – 0.11%
Gerdau Ameristeel Corp.	245,372		995,914
			995,914
MANUFACTURING – 0.59%
Bombardier Inc. Class B	2,262,785		5,278,672
			5,278,672
MEDIA – 4.26%
Astral Media Inc. Class A	77,945		1,526,527
Rogers Communications Inc. Class B	776,475		18,309,597
Shaw Communications Inc. Class B	538,475		7,978,350
Thomson Reuters Corp.	354,025		8,800,054
Yellow Pages Income Fund	392,700		1,779,584
			38,394,112
MINING – 15.72%
Agnico-Eagle Mines Ltd.	224,315		11,305,469
Barrick Gold Corp.	1,363,145		41,307,424
Cameco Corp.	558,705		8,229,654
Eldorado Gold Corp.b	567,630		4,800,150
First Quantum Minerals Ltd.	106,505		2,818,645
Goldcorp Inc.	1,140,020		33,207,345
Iamgold Corp.	458,745		3,723,902
Inmet Mining Corp.	70,137		1,594,161
Ivanhoe Mines Ltd.b	394,635		1,757,251
Kinross Gold Corp.	1,032,920		16,378,887
Pan American Silver Corp.b	123,760		1,810,289
Silver Wheaton Corp.b	438,227		2,997,841
Teck Cominco Ltd. Class B	740,180		2,607,562
Yamana Gold Inc.	1,041,254		9,125,385
			141,663,965
OIL & GAS – 22.18%
Addax Petroleum Corp.	133,280		2,541,968
ARC Energy Trust	173,740		1,910,134
Canadian Natural Resources Ltd.	845,495		27,253,612
Canadian Oil Sands Trust	372,470		5,870,985

Security	Shares	Value
Crescent Point Energy Trust	94,010	$	1,745,577
EnCana Corp.	1,172,150		46,374,221
Enerplus Resources Fund	259,420		4,408,003
Ensign Resource Service Group	201,705		1,605,564
Harvest Energy Trust	231,038		1,148,954
Husky Energy Inc.	399,245		8,558,509
Imperial Oil Ltd.	477,190		14,945,447
Nexen Inc.	736,015		10,081,523
Niko Resources Ltd.	68,425		2,586,868
Penn West Energy Trust	604,355		5,339,338
Petro-Canada	758,625		16,788,580
Precision Drilling Trust	114,979		334,376
Progress Energy Resources Corp.b	218,917		1,551,061
Provident Energy Trust	409,155		1,206,005
Suncor Energy Inc.	1,467,255		30,597,444
Talisman Energy Inc.	1,594,600		15,017,906
			199,866,075
OIL & GAS SERVICES – 0.12%
Trican Well Service Ltd.	198,830		1,089,072
			1,089,072
PHARMACEUTICALS – 0.26%
Biovail Corp.	222,530		2,371,128
			2,371,128
PIPELINES – 4.43%
Enbridge Inc.	552,160		16,579,813
TransCanada Corp.	958,545		23,343,217
			39,923,030
REAL ESTATE – 0.19%
Brookfield Properties Corp.	334,985		1,694,923
			1,694,923
REAL ESTATE INVESTMENT TRUSTS – 0.19%
RioCan Real Estate Investment Trust	168,385		1,684,049
			1,684,049
RETAIL – 1.87%
Alimentation Couche-Tard Inc. Class B	203,490		2,100,894
Canadian Tire Corp. Ltd. Class A	122,570		3,776,066
Shoppers Drug Mart Corp.	321,300		10,956,891
			16,833,851

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2009

Security	Shares	Value
TELECOMMUNICATIONS – 1.91%
BCE Inc.	412,335	$	8,068,943
Manitoba Telecom Services Inc.	33,320		926,978
TELUS Corp.	98,158		2,624,045
TELUS Corp. NVS	222,530		5,580,569
			17,200,535
TRANSPORTATION – 3.44%
Canadian National Railway Co.	731,255		23,548,157
Canadian Pacific Railway Ltd.	261,205		7,410,947
			30,959,104
TOTAL COMMON STOCKS (Cost: $1,855,216,222)			898,093,322
SHORT-TERM INVESTMENTS – 0.03%
MONEY MARKET FUNDS – 0.03%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	223,008		223,008
			223,008
TOTAL SHORT-TERM INVESTMENTS
(Cost: $223,008)			223,008
TOTAL INVESTMENTS IN SECURITIES – 99.71%
(Cost: $1,855,439,230)			898,316,330
Other Assets, Less Liabilities – 0.29%			2,628,019
NET ASSETS – 100.00%		$	900,944,349

NVS – Non-Voting Shares

^a Security valued using Level 3 inputs. 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.

20 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI CHILE INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 91.09%
AIRLINES – 4.27%
LAN Airlines SA	762,817	$	6,391,536
			6,391,536
BANKS – 8.27%
Banco de Credito e Inversiones	173,146		3,486,161
Banco Santander Chile SA	209,658,823		7,070,708
CorpBanca SA	436,063,478		1,829,125
			12,385,994
BEVERAGES – 5.87%
Coca-Cola Embonor SA Class B	43,829		34,564
Compania Cervecerias Unidas SA	951,776		5,174,244
Vina Concha y Toro SA	2,195,353		3,585,829
			8,794,637
BUILDING MATERIALS – 0.41%
SalfaCorp SA	703,885		620,033
			620,033
COMPUTERS – 1.22%
Sonda SA	1,562,042		1,831,992
			1,831,992
ELECTRIC – 30.19%
Almendral SA	31,393,783		2,318,189
Colbun SAa	37,550,615		7,117,606
Empresa Nacional de Electricidad SA	15,446,820		18,724,862
Enersis SA	59,203,171		17,042,765
			45,203,422
ENGINEERING & CONSTRUCTION – 0.18%
Socovesa SA	1,422,090		274,397
			274,397
FOOD – 4.69%
Centros Comerciales Sudamericanos SA	4,092,776		7,020,210
			7,020,210
FOREST PRODUCTS & PAPER – 6.96%
Empresas CMPC SA	479,913		8,830,882
Masisa SA	18,313,619		1,594,760
			10,425,642
HEALTH CARE - SERVICES – 0.35%
Banmedica SA	675,420		521,297
			521,297

Security	Shares	Value
HOLDING COMPANIES - DIVERSIFIED – 11.45%
Empresas Copec SA	2,028,026	$	16,352,151
Sigdo Koppers SA	1,130,376		796,384
			17,148,535
IRON & STEEL – 3.70%
CAP SA	406,011		5,543,549
			5,543,549
METAL FABRICATE & HARDWARE – 0.84%
Madeco SAa	17,245,267		1,251,729
			1,251,729
REAL ESTATE – 0.41%
Parque Arauco SA	1,165,169		606,044
			606,044
RETAIL – 5.68%
Farmacias Ahumada SA	102,527		137,620
La Polar SA	1,233,175		2,576,012
SACI Falabella SAa	1,910,150		5,790,383
			8,504,015
TELECOMMUNICATIONS – 3.31%
Empresa Nacional de Telecomunicaciones SA	454,919		4,948,465
			4,948,465
TRANSPORTATION – 1.07%
Compania SudAmericana de Vapores SA	2,324,365		1,598,976
			1,598,976
WATER – 2.22%
Inversiones Aguas Metropolitanas SAa	3,752,231		3,323,746
			3,323,746
TOTAL COMMON STOCKS (Cost: $174,275,994)			136,394,219
PREFERRED STOCKS – 8.82%
CHEMICALS – 8.82%
Sociedad Quimica y Minera de Chile SA Class B	461,428		13,206,441
			13,206,441
TOTAL PREFERRED STOCKS (Cost: $11,532,806)			13,206,441

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CHILE INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.06%
MONEY MARKET FUNDS – 0.06%
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%b,c	84,356	$	84,356
			84,356
TOTAL SHORT-TERM INVESTMENTS
(Cost: $84,356)			84,356
TOTAL INVESTMENTS IN SECURITIES – 99.97% (Cost: $185,893,156)			149,685,016
Other Assets, Less Liabilities – 0.03%			42,016
NET ASSETS – 100.00%		$	149,727,032

^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.

22 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.77%
AEROSPACE & DEFENSE – 3.07%
Elbit Systems Ltd.	57,293	$	2,545,557
			2,545,557
AIRLINES – 0.13%
El Al Israel Airlines Ltd.a	477,159		106,923
			106,923
BANKS – 13.19%
Bank Hapoalim Ltd.a	2,268,763		4,055,076
Bank Leumi le-Israelb	2,297,484		4,089,785
First International Bank of Israel Ltd.a	56,560		311,054
Israel Discount Bank Ltd. Class Ab	1,359,927		915,190
Mizrahi Tefahot Bank Ltd.	344,394		1,545,113
Union Bank of Israela	15,654		26,899
			10,943,117
CHEMICALS – 14.82%
Frutarom Industries Ltd.	93,439		594,784
Israel Chemicals Ltd.	1,194,076		9,360,671
Makhteshim-Agan Industries Ltd.b	692,858		2,339,720
			12,295,175
COMMERCIAL SERVICES – 0.31%
AL-ROV Israel Ltd.	13,378		49,662
Nitsba Holdings 1995 Ltd.a	34,159		204,997
			254,659
DIVERSIFIED FINANCIAL SERVICES – 0.30%
FIBI Holdings Ltd.a	27,520		178,497
Mivtach Shamir Holdings Ltd.a	4,680		67,551
			246,048
ELECTRICAL COMPONENTS & EQUIPMENT – 0.23%
Electra (Israel) Ltd.	2,895		193,079
			193,079
ELECTRONICS – 0.76%
Elron Electronic Industries Ltd.a	23,108		47,372
Ituran Location and Control Ltd.	36,095		234,257
Orbotech Ltd.a	85,914		352,247
			633,876

Security	Shares	Value
ENGINEERING & CONSTRUCTION – 0.40%
Housing & Construction Holdings Ltd.a	444,246	$	332,183
			332,183
FOOD – 0.90%
Blue Square-Israel Ltd.	23,373		148,724
Super-Sol Ltd.	193,821		595,610
			744,334
FOREST PRODUCTS & PAPER – 0.09%
Hadera Paper Ltd.a	2,427		77,157
			77,157
HEALTH CARE - PRODUCTS – 0.78%
Given Imaging Ltd.	40,916		320,781
Syneron Medical Ltd.a	63,097		329,366
			650,147
HOLDING COMPANIES - DIVERSIFIED – 0.48%
Clal Industries and Investments Ltd.	121,312		263,119
Elco Holdings Ltd.	22,259		110,065
Granite Hacarmel Investments Ltd.a	15,170		24,615
			397,799
HOME BUILDERS – 0.50%
Bayside Land Corp. Ltd.	1,380		215,365
Property & Building Corp. Ltd.	4,945		197,046
			412,411
INSURANCE – 1.27%
Clal Insurance Enterprise Holdings Ltd.b	32,565		181,449
Harel Insurance Investments & Finances Ltd.b	21,706		473,827
Menorah Mivtachim Holdings Ltd. Class La	52,009		270,595
Phoenix Holdings Ltd.a	160,663		130,250
			1,056,121
INTERNET – 11.58%
Aladdin Knowledge Systems Ltd.a	26,524		277,441
Check Point Software Technologies Ltd.a	402,670		8,846,660
RADVision Ltd.a	45,536		258,189
Radware Ltd.a	37,895		227,749
			9,610,039

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
INVESTMENT COMPANIES – 5.18%
Delek Group Ltd. (The)b	11,395	$	782,242
Discount Investment Corp. Ltd.	54,380		478,766
Elbit Imaging Ltd.	28,821		343,422
IDB Development Corp. Ltd.b	30,634		301,035
IDB Holding Corp. Ltd.	20,464		247,939
Israel Corp. Ltd. (The)	5,406		1,563,460
Koor Industries Ltd.a	51,357		580,612
			4,297,476
MACHINERY – 1.53%
Ormat Industries Ltd.	194,923		1,269,459
			1,269,459
MANUFACTURING – 0.24%
FMS Enterprises Migun Ltd.	8,778		146,265
Plasson Industries Ltd.	4,346		55,496
			201,761
MEDIA – 0.59%
Hot Telecommunication System Ltd.a	74,003		484,988
			484,988
OIL & GAS – 0.97%
Delek Drilling LP	300,510		239,202
Oil Refineries Ltd.b	2,198,684		564,812
			804,014
PHARMACEUTICALS – 23.99%
Teva Pharmaceutical Industries Ltd.	435,395		19,911,933
			19,911,933
REAL ESTATE – 2.33%
Africa Israel Investments Ltd.b	34,516		267,250
Africa Israel Properties Ltd.a	12,783		122,255
Alony Hetz Properties & Investments Ltd.	180,678		183,912
Amot Investments Ltd.	54,643		67,826
Azorim-Investment Development & Construction Co. Ltd.	44,080		97,765
British Israel Investments Ltd.	57,505		67,453
Electra Real Estate Ltd.	2,518		13,708
Gazit Globe Ltd.b	152,140		568,809
Gazit Inc.	16,984		118,476
Industrial Buildings Corp. Ltd.	203,147		222,365
Jerusalem Economy Ltd.a	37,683		141,341

Security	Shares	Value
Melisron Ltd.	5,459	$	64,495
			1,935,655
RETAIL – 0.40%
Delek Automotive Systems Ltd.	71,603		334,543
			334,543
SEMICONDUCTORS – 0.22%
Mellanox Technologies Ltd.a	21,571		183,357
			183,357
SOFTWARE – 0.45%
Fundtech Ltd.a	15,251		93,336
Retalix Ltd.a	38,763		281,901
			375,237
TELECOMMUNICATION EQUIPMENT – 0.11%
AudioCodes Ltd.a	80,879		90,585
			90,585
TELECOMMUNICATIONS – 14.95%
Alvarion Ltd.a	111,088		343,262
Bezeq Israeli Telecommunication Corp. Ltd.	2,537,889		3,923,940
Cellcom Israel Ltd.	89,359		1,787,180
Ceragon Networks Ltd.a	67,905		316,437
Gilat Satellite Networks Ltd.a	83,088		259,235
NICE Systems Ltd.a	140,344		2,860,163
Partner Communications Co. Ltd.	186,348		2,750,856
RRSat Global Communications Network Ltd.	14,893		163,823
			12,404,896
TOTAL COMMON STOCKS (Cost: $154,513,965)			82,792,529
SHORT-TERM INVESTMENTS – 8.36%
MONEY MARKET FUNDS – 8.36%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	5,937,004		5,937,004
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	992,493		992,493

24 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	10,801	$	10,801
			6,940,298
TOTAL SHORT-TERM INVESTMENTS (Cost: $6,940,298)			6,940,298
TOTAL INVESTMENTS IN SECURITIES – 108.13% (Cost: $161,454,263)			89,732,827
Other Assets, Less Liabilities – (8.13)%			(6,745,666	)
NET ASSETS – 100.00%		$	82,987,161

^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 All or a portion of 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 MEXICO INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.88%
BANKS – 0.74%
Banco Compartamos SA de CV	1,380,000	$	2,455,993
			2,455,993
BEVERAGES – 9.91%
Coca-Cola FEMSA SAB de CV SP ADR	137,941		4,298,242
Fomento Economico Mexicano SAB de CV BD Units	8,318,408		19,409,977
Grupo Modelo SAB de CV Series C	3,463,856		9,010,392
			32,718,611
BUILDING MATERIALS – 4.11%
Cemex SAB de CV Series CPOa	24,881,440		13,561,660
			13,561,660
CHEMICALS – 0.65%
Mexichem SAB de CV	3,132,600		2,154,018
			2,154,018
DIVERSIFIED FINANCIAL SERVICES – 5.30%
Bolsa Mexicana de Valores SAB de CVa	1,228,200		785,890
Financiera Independencia SAB de CVb	360,642		123,154
Grupo Financiero Banorte SAB de CV Series O	7,714,200		8,230,240
Grupo Financiero Inbursa SAB de CV Series O	4,333,200		8,364,047
			17,503,331
ENGINEERING & CONSTRUCTION – 5.33%
Carso Infraestructura y Construccion SAB de CV Series B1a	4,664,400		2,038,200
Empresas ICA SAB de CVa	2,497,874		3,718,368
Grupo Aeroportuario del Centro Norte SAB de CV	907,500		856,283
Grupo Aeroportuario del Pacifico SAB de CV Series B	3,105,000		5,320,098
Grupo Aeroportuario del Sureste SA de CV Series B ADR	183,126		5,297,835
Promotora y Operadora de Infraestructura SAB de CVa,b	345,000		355,954
			17,586,738

Security	Shares	Value
ENVIRONMENTAL CONTROL – 0.00%
Promotora Ambiental SAB de CVa	27,600	$	13,909
			13,909
FOOD – 2.85%
Alsea SAB de CVa	2,028,645		570,345
Gruma SAB de CV Series Ba	1,200,669		390,108
Grupo Bimbo SAB de CV Series Ab	2,956,500		8,435,577
			9,396,030
FOREST PRODUCTS & PAPER – 3.51%
Kimberly-Clark de Mexico SAB de CV Series Ab	3,698,400		11,575,011
			11,575,011
HOLDING COMPANIES - DIVERSIFIED – 3.93%
Alfa SAB de CV Series A	1,904,400		2,630,347
Grupo Carso SA de CV Series A1	5,326,830		10,324,361
			12,954,708
HOME BUILDERS – 2.69%
Consorcio ARA SAB de CVb	4,940,400		1,228,454
Corporacion Geo SAB de CV Series Ba	2,277,460		2,094,560
Desarrolladora Homex SAB de CVa	1,297,230		2,737,050
Sare Holding SAB de CV Series Ba,b	361,900		42,954
Urbi Desarrollos Urbanos SA de CVa	3,256,800		2,768,501
			8,871,519
HOUSEWARES – 0.02%
Vitro SAB de CV Series A	248,400		69,507
			69,507
IRON & STEEL – 0.26%
Cia Minera Autlan SAB de CV	252,200		369,910
Grupo Simec SAB de CV Series Ba	331,200		487,319
			857,229
MACHINERY – 0.29%
Industrias CH SAB de CV Series Ba,b	441,600		953,408
			953,408
MEDIA – 6.28%
Grupo Televisa SA Series CPO	6,996,699		17,309,478

26 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
Megacable Holdings SAB de CVa,b	1,490,400	$	1,680,031
TV Azteca SAB de CV Series CPO	5,431,500		1,725,126
			20,714,635
MINING – 4.67%
Grupo Mexico SA de CV Series B	18,959,098		10,874,250
Industrias Penoles SAB de CVb	510,600		4,544,941
			15,419,191
PHARMACEUTICALS – 0.03%
Genomma Lab Internacional SAB de CV Series Ba	187,400		99,409
			99,409
RETAIL – 8.22%
Grupo Elektra SA de CVb	358,830		7,222,212
Grupo Famsa SAB de CV Series Aa,b	1,476,600		535,569
Wal-Mart de Mexico SAB de CV Series Vb	10,281,000		19,353,802
			27,111,583
TELECOMMUNICATIONS – 41.09%
America Movil SAB de CV Series L	63,411,040		81,990,782
Axtel SAB de CV Series CPOa,b	5,823,600		2,108,384
Carso Global Telecom SAB de CV Series A1a,b	5,037,031		13,373,166
Grupo Iusacell SA de CVa	280,800		313,735
Maxcom Telecomunicaciones SAB de CVa,b	502,200		215,783
Telefonos de Mexico SAB de CV Series L	31,726,200		22,215,061
Telmex Internacional SAB de CV Series L	39,909,600		15,375,139
			135,592,050
TOTAL COMMON STOCKS
(Cost: $776,615,742)			329,608,540

Security	Shares	Value
SHORT-TERM INVESTMENTS – 4.47%
MONEY MARKET FUNDS – 4.47%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	12,482,063	$	12,482,063
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	2,086,635		2,086,635
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	190,819		190,819
			14,759,517
TOTAL SHORT-TERM INVESTMENTS
(Cost: $14,759,517)			14,759,517
TOTAL INVESTMENTS IN SECURITIES – 104.35%
(Cost: $791,375,259)			344,368,057
Other Assets, Less Liabilities – (4.35)%			(14,368,280	)
NET ASSETS – 100.00%		$	329,999,777

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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.94%
BANKS – 12.63%
Absa Group Ltd.	600,450	$	5,320,329
FirstRand Ltd.	5,525,175		6,628,340
Nedbank Group Ltd.	413,550		3,098,177
Standard Bank Group Ltd.	2,242,950		14,514,585
			29,561,431
BUILDING MATERIALS – 1.23%
Pretoria Portland Cement Co. Ltd.	973,500		2,878,486
			2,878,486
DIVERSIFIED FINANCIAL SERVICES – 3.03%
African Bank Investments Ltd.	1,496,325		3,135,810
Investec Ltd.	410,550		1,234,368
RMB Holdings Ltd.	1,417,800		2,717,173
			7,087,351
ELECTRONICS – 0.55%
Reunert Ltd.	345,000		1,279,088
			1,279,088
ENGINEERING & CONSTRUCTION – 1.76%
Aveng Ltd.	767,025		1,966,339
Murray & Roberts Holdings Ltd.	583,725		2,153,701
			4,120,040
FOOD – 3.55%
Shoprite Holdings Ltd.	853,725		4,239,514
Tiger Brands Ltd.	322,575		4,062,496
			8,302,010
FOREST PRODUCTS & PAPER – 0.75%
Sappi Ltd.	930,000		1,759,172
			1,759,172
HEALTH CARE - PRODUCTS – 0.90%
Aspen Pharmacare Holdings Ltd.a	509,100		2,103,405
			2,103,405
HEALTH CARE - SERVICES – 0.80%
Netcare Ltd.a	2,178,900		1,865,552
			1,865,552
HOLDING COMPANIES - DIVERSIFIED – 5.34%
Barloworld Ltd.b	408,675		1,228,324
Bidvest Group Ltd.	521,100		4,305,968
Imperial Holdings Ltd.	324,000		1,428,961
Remgro Ltd.	836,850		5,523,735
			12,486,988

Security	Shares	Value
HOME FURNISHINGS – 1.01%
Steinhoff International Holdings Ltd.b	2,110,200	$	2,357,155
			2,357,155
INSURANCE – 3.26%
Liberty Holdings Ltd.	224,550		1,430,529
Sanlam Ltd.	4,079,700		6,206,164
			7,636,693
IRON & STEEL – 2.31%
ArcelorMittal South Africa Ltd.	393,525		2,897,225
Kumba Iron Ore Ltd.	155,925		2,499,271
			5,396,496
MEDIA – 4.92%
Naspers Ltd. Class N	750,975		11,513,779
			11,513,779
MINING – 25.50%
African Rainbow Minerals Ltd.	227,400		2,558,236
Anglo Platinum Ltd.	139,875		5,373,445
AngloGold Ashanti Ltd.b	549,675		16,280,383
Exxaro Resources Ltd.	242,475		1,629,455
Gold Fields Ltd.	1,215,900		12,649,863
Harmony Gold Mining Co. Ltd.a	672,750		8,221,421
Impala Platinum Holdings Ltd.	1,052,250		12,423,349
Northam Platinum Ltd.	243,975		530,238
			59,666,390
OIL & GAS – 12.62%
Sasol Ltd.	1,176,600		29,518,961
			29,518,961
REAL ESTATE – 1.58%
Growthpoint Properties Ltd.	2,763,750		3,700,775
			3,700,775
RETAIL – 4.46%
Foschini Ltd.	423,000		1,746,831
Massmart Holdings Ltd.	393,300		2,834,877
Pick’n Pay Stores Ltd.	452,700		1,397,153
Truworths International Ltd.	840,975		2,607,194
Woolworths Holdings Ltd.	1,568,325		1,858,038
			10,444,093
TELECOMMUNICATIONS – 13.74%
MTN Group Ltd.	3,106,875		26,600,752

28 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 28, 2009

Security	Shares	Value
Telkom South Africa Ltd.	561,750	$	5,540,602
			32,141,354
TOTAL COMMON STOCKS
(Cost: $475,625,236)			233,819,219
SHORT-TERM INVESTMENTS – 0.68%
MONEY MARKET FUNDS – 0.68%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	1,352,029		1,352,029
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	226,020		226,020
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	8,733		8,733
			1,586,782
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,586,782)			1,586,782
TOTAL INVESTMENTS IN SECURITIES – 100.62% (Cost: $477,212,018)			235,406,001
Other Assets, Less Liabilities – (0.62)%			(1,443,724	)
NET ASSETS – 100.00%		$	233,962,277

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited)

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.94%
AEROSPACE & DEFENSE – 0.18%
Aselsan Elektronik Sanayi ve Ticaret ASa	70,163	$	116,289
			116,289
AIRLINES – 1.02%
Turk Hava Yollari Anonim Ortakligia,b	199,437		656,409
			656,409
AUTO MANUFACTURERS – 1.27%
Ford Otomotiv Sanayi AS	198,575		487,845
Otokar Otobus Karoseri Sanayi ASa	20,837		97,973
Tofas Turk Otomobil Fabrikasi ASa	325,595		235,377
			821,195
BANKS – 36.53%
Akbank TASa	2,332,337		5,373,511
Albaraka Turk Katilim Bankasi AS	266,151		301,902
Alternatifbank ASb	228,934		87,459
Asya Katilim Bankasi ASa,b	1,078,250		633,724
Sekerbank TASa	353,952		183,066
Tekstil Bankasi ASb	276,496		65,003
Turk Ekonomi Bankasi ASa,b	570,141		191,002
Turkiye Garanti Bankasi ASa,b	5,447,836		6,627,888
Turkiye Halk Bankasi AS	829,317		1,744,956
Turkiye Is Bankasi AS	2,482,368		4,785,428
Turkiye Vakiflar Bankasi TAO	2,126,125		1,349,564
Yapi ve Kredi Bankasi ASa,b	2,309,336		2,239,504
			23,583,007
BEVERAGES – 5.79%
Anadolu Efes Biracilik ve Malt Sanayii ASa	495,836		3,147,332
Coca-Cola Icecek AS	141,675		587,034
			3,734,366
BUILDING MATERIALS – 1.63%
Adana Cimento Sanayi TAS Class A	120,498		220,961
Akcansa Cimento Sanayi ve Ticaret ASa	129,455		155,214
Bolu Cimento Sanayii AS	232,637		162,707
Cimsa Cimento Sanayi ve Ticaret ASa	142,848		246,833
Mardin Cimento Sanayii ve Ticaret AS	141,957		266,985
			1,052,700

Security	Shares	Value
CHEMICALS – 1.50%
Aksa Akrilik Kimya Sanayii ASb	169,743	$	162,615
Bagfas Bandirma Gubre Fabrik	4,000		146,934
Gubre Fabrikalari TAS	44,321		135,456
Petkim Petrokimya Holding ASa,b	222,772		523,723
			968,728
COMMERCIAL SERVICES – 0.48%
Ihlas Holding ASa,b	934,029		115,282
Koza Anadolu Metal Madencilik Isletmeleri ASa,b	239,802		195,906
			311,188
DISTRIBUTION & WHOLESALE – 0.33%
Aygaz ASa,b	181,372		211,065
			211,065
DIVERSIFIED FINANCIAL SERVICES – 0.55%
Finans Finansal Kiralama ASa,b	133,871		91,269
Turkiye Sinai Kalkinma Bankasi ASa,b	673,381		265,165
			356,434
ELECTRIC – 0.60%
Akenerji Elektrik Uretim ASa,b	67,614		250,356
Zorlu Enerji Elektrik Uretim ASb	118,649		136,679
			387,035
ENGINEERING & CONSTRUCTION – 4.70%
Enka Insaat ve Sanayi AS	639,443		2,330,099
TAV Havalimanlari Holding ASa,b	292,699		474,800
TAV Havalimanlari Holding AS Newa,b	147,352		232,098
			3,036,997
ENTERTAINMENT – 0.23%
Galatasaray Sportif Sinai ve Ticari Yatirimlar AS	2,159		151,001
			151,001
FOOD – 3.64%
BIM Birlesik Magazalar AS	103,191		2,031,737
Tat Konserve Sanayii ASa,b	196,653		114,424
Ulker Biskuvi Sanayi ASa	212,697		206,265
			2,352,426
HOLDING COMPANIES - DIVERSIFIED – 6.97%
Alarko Holding ASa	322,977		318,905
Dogan Sirketler Grubu Holdings ASa,b	2,404,858		720,843
Haci Omer Sabanci Holding AS	1,123,420		1,624,269

30 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
KOC Holding ASb	777,738	$	969,059
Tekfen Holding ASa	324,559		499,776
Yazicilar Holding ASa	125,498		365,847
			4,498,699
HOME FURNISHINGS – 0.72%
Arcelik AS	216,132		221,029
Vestel Beyaz Esya Sanayi ve Ticaret ASa	181,376		116,195
Vestel Elektronik Sanayi ve Ticaret ASb	264,821		124,516
			461,740
HOUSEWARES – 0.79%
Anadolu Cam Sanayii ASa,b	210,059		119,755
Turk Sise ve Cam Fabrikalari ASb	696,615		388,953
			508,708
INSURANCE – 1.75%
Aksigorta AS	308,749		430,066
Anadolu Anonim Turk Sigorta Sirketi	471,834		252,355
Anadolu Hayat Emeklilik ASa	86,855		63,299
Gunes Sigorta AS	258,750		153,597
Yapi Kredi Sigorta ASa	75,948		227,650
			1,126,967
IRON & STEEL – 5.59%
Componenta Dokumculuk Ticaret Ve Sanayi AS	58,851		149,423
Eregli Demir ve Celik Fabrikalari TASa	1,446,149		2,923,832
Izmir Demir Celik Sanayi AS	77,236		68,545
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class Ab	377,727		170,942
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class Da,b	1,009,273		296,592
			3,609,334
MACHINERY – 0.16%
Turk Traktor ve Ziraat Makineleri AS	46,388		100,331
			100,331
MEDIA – 0.58%
Dogan Gazetecilik ASa,b	105,498		71,926
Dogan Yayin Holding ASa,b	551,641		145,898

Security	Shares	Value
Hurriyet Gazetecilik ve Matbaacilik ASa,b	574,392	$	155,291
			373,115
MISCELLANEOUS - MANUFACTURING – 0.29%
Trakya Cam Sanayii ASa,b	393,593		187,376
			187,376
OIL & GAS – 4.38%
Tupras-Turkiye Petrol Rafinerileri AS	310,222		2,826,084
			2,826,084
PHARMACEUTICALS – 1.11%
Deva Holding ASb	40,804		130,701
EIS Eczacibasi Ilac ve Sinai	470,062		223,780
Selcuk Ecza Deposu Ticaret ve Sanayi ASa	365,923		363,460
			717,941
REAL ESTATE INVESTMENTTRUSTS – 0.64%
Is Gayrimenkul Yatirim Ortakligi ASa	523,049		285,895
Sinpas Gayrimenkul Yatirim Ortakligi ASb	154,950		125,676
			411,571
RETAIL – 0.44%
Dogus Otomotiv Servis ve Ticaret ASa	106,378		105,662
Turcas Petrolculuk ASa	124,667		180,247
			285,909
TELECOMMUNICATIONS – 18.07%
Turk Telekomunikasyon ASa,b	1,420,258		3,255,462
Turkcell Iletisim Hizmetleri ASa	1,693,182		8,408,938
			11,664,400
TOTAL COMMON STOCKS
(Cost: $143,245,336)			64,511,015
SHORT-TERM INVESTMENTS – 30.89%
MONEY MARKET FUNDS – 30.89%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	17,084,778		17,084,778

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2009

Security	Shares	Value
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	2,856,074	$	2,856,074
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	1,679		1,679
			19,942,531
TOTAL SHORT-TERM INVESTMENTS
(Cost: $19,942,531)			19,942,531
TOTAL INVESTMENTS IN SECURITIES – 130.83% (Cost: $163,187,867)			84,453,546
Other Assets, Less Liabilities – (30.83)%			(19,901,845	)
NET ASSETS – 100.00%		$	64,551,701

^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 All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

32 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2009

	iShares MSCI
	Brazil Index Fund			BRIC Index Fund			Canada Index Fund			Chile Investable Market Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	4,885,515,257		$	211,842,161		$	1,855,216,222		$	185,808,800
Affiliated issuers (Note 2)		81,441,274			12,278,229			223,008			84,356
Total cost of investments	$	4,966,956,531		$	224,120,390		$	1,855,439,230		$	185,893,156
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	3,840,215,970		$	97,004,898		$	898,093,322		$	149,600,660
Affiliated issuers (Note 2)		81,441,274			12,278,229			223,008			84,356
Total fair value of investments		3,921,657,244			109,283,127			898,316,330			149,685,016
Foreign currencies, at valueb		1,437			10,961			1,625,024			–
Receivables:
Investment securities sold		86,390,719			1,321,058			3,992,037			–
Dividends and interest		37,647,411			360,982			1,612,293			121,057
Total Assets		4,045,696,811			110,976,128			905,545,684			149,806,073
LIABILITIES
Payables:
Investment securities purchased		72,743,552			1,379,248			4,178,580			–
Collateral for securities on loan (Note 5)		68,502,150			12,084,734			–			–
Capital shares redeemed		–			58,769			–			–
Investment advisory fees (Note 2)		2,192,100			59,822			422,755			79,041
Total Liabilities		143,437,802			13,582,573			4,601,335			79,041
NET ASSETS	$	3,902,259,009		$	97,393,555		$	900,944,349		$	149,727,032
Net assets consist of:
Paid-in capital	$	5,394,228,069		$	223,686,475		$	1,982,002,702		$	202,929,672
Undistributed net investment income		12,362,883			4,963			2,484,925			241,255
Accumulated net realized loss		(457,306,071	)		(11,451,079	)		(126,382,476	)		(17,240,954	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(1,047,025,872	)		(114,846,804	)		(957,160,802	)		(36,202,941	)
NET ASSETS	$	3,902,259,009		$	97,393,555		$	900,944,349		$	149,727,032
Shares outstandingc		113,800,000			4,450,000			59,500,000			4,550,000
Net asset value per share	$	34.29		$	21.89		$	15.14		$	32.91

^a Securities on loan with market values of $65,231,834, $11,434,308, $– and $–, respectively. See Note 5.

^b Cost of foreign currencies: $1,439, $11,999, $1,644,480 and $–, respectively.

^c $0.001 par value, number of shares authorized: 500 million, 500 million, 340.2 million and 200 million, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 33

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2009

	iShares MSCI
	Israel Capped Investable Market Index Fund			Mexico Investable Market Index Fund			South Africa Index Fund			Turkey Investable Market Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	154,513,965		$	776,615,742		$	475,625,236		$	143,245,336
Affiliated issuers (Note 2)		6,940,298			14,759,517			1,586,782			19,942,531
Total cost of investments	$	161,454,263		$	791,375,259		$	477,212,018		$	163,187,867
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	82,792,529		$	329,608,540		$	233,819,219		$	64,511,015
Affiliated issuers (Note 2)		6,940,298			14,759,517			1,586,782			19,942,531
Total fair value of investments		89,732,827			344,368,057			235,406,001			84,453,546
Foreign currencies, at valueb		87,812			38,374			269,952			25,387
Receivables:
Investment securities sold		2,061,333			6,043,716			604,361			–
Dividends and interest		101,799			11,503			672			50,581
Total Assets		91,983,771			350,461,650			236,280,986			84,529,514
LIABILITIES
Payables:
Investment securities purchased		2,021,379			5,730,871			607,233			–
Collateral for securities on loan (Note 5)		6,929,497			14,568,698			1,578,049			19,940,852
Capital shares sold		–			4,323			–			–
Investment advisory fees (Note 2)		45,734			157,981			133,427			36,961
Total Liabilities		8,996,610			20,461,873			2,318,709			19,977,813
NET ASSETS	$	82,987,161		$	329,999,777		$	233,962,277		$	64,551,701
Net assets consist of:
Paid-in capital	$	174,332,583		$	1,068,197,780		$	536,169,821		$	156,311,831
Undistributed net investment income		7,178			45,280			386,731			34,906
Accumulated net realized loss		(19,627,935	)		(291,216,790	)		(60,788,185	)		(13,060,506	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(71,724,665	)		(447,026,493	)		(241,806,090	)		(78,734,530	)
NET ASSETS	$	82,987,161		$	329,999,777		$	233,962,277		$	64,551,701
Shares outstandingc		2,650,000			13,800,000			7,500,000			2,950,000
Net asset value per share	$	31.32		$	23.91		$	31.19		$	21.88

^a Securities on loan with market values of $6,438,637, $13,564,118, $1,471,797 and $18,730,135, respectively. See Note 5.

^b Cost of foreign currencies: $94,195, $41,189, $270,024 and $25,596, respectively.

^c $0.001 par value, number of shares authorized: 500 million, 255 million, 400 million and 200 million, respectively.

See notes to financial statements.

34 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2009

	iShares MSCI
	Brazil Index Fund			BRIC Index Fund			Canada Index Fund			Chile Investable Market Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	84,484,487		$	1,185,155		$	16,812,676		$	981,342
Interest from affiliated issuers (Note 2)		22,244			371			1,126			561
Securities lending income from affiliated issuers (Note 2)		78,278			65,439			–			–
Total investment income		84,585,009			1,250,965			16,813,802			981,903
EXPENSES
Investment advisory fees (Note 2)		13,735,764			406,733			3,379,520			411,494
Total expenses		13,735,764			406,733			3,379,520			411,494
Net investment income		70,849,245			844,232			13,434,282			570,409
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(400,078,173	)		(9,770,227	)		(90,996,729	)		(15,563,009	)
In-kind redemptions		–			28,138			7,045,929			–
Foreign currency transactions		(5,442,385	)		(30,990	)		(794,522	)		57,600
Net realized loss		(405,520,558	)		(9,773,079	)		(84,745,322	)		(15,505,409	)
Net change in unrealized appreciation (depreciation) on:
Investments		(3,390,853,652	)		(76,276,493	)		(899,271,841	)		(28,675,666	)
Translation of assets and liabilities in foreign currencies		(1,692,365	)		(9,136	)		54,200			4,943
Net change in unrealized appreciation (depreciation)		(3,392,546,017	)		(76,285,629	)		(899,217,641	)		(28,670,723	)
Net realized and unrealized loss		(3,798,066,575	)		(86,058,708	)		(983,962,963	)		(44,176,132	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(3,727,217,330	)	$	(85,214,476	)	$	(970,528,681	)	$	(43,605,723	)

^a Net of foreign withholding tax of $8,535,908, $95,660, $2,970,059 and $429,932, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 35

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2009

	iShares MSCI
	Israel Capped Investable Market Index Fund			Mexico Investable Market Index Fund			South Africa Index Fund			Turkey Investable Market Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	2,235,309		$	1,973,549		$	6,703,902		$	84,516
Interest from affiliated issuers (Note 2)		401			713			332			238
Securities lending income from affiliated issuers (Note 2)		68,464			205,084			5,710			363,293
Total investment income		2,304,174			2,179,346			6,709,944			448,047
EXPENSES
Investment advisory fees (Note 2)		395,962			1,507,294			957,106			289,512
Total expenses		395,962			1,507,294			957,106			289,512
Net investment income		1,908,212			672,052			5,752,838			158,535
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(6,825,473	)		(95,250,386	)		(22,473,895	)		(3,812,627	)
In-kind redemptions		(11,790,848	)		(186,114,622	)		(10,983,453	)		(8,435,762	)
Foreign currency transactions		6,978			(328,156	)		(206,102	)		(42,595	)
Net realized loss		(18,609,343	)		(281,693,164	)		(33,663,450	)		(12,290,984	)
Net change in unrealized appreciation (depreciation) on:
Investments		(47,321,737	)		(226,748,466	)		(159,744,066	)		(79,989,811	)
Translation of assets and liabilities in foreign currencies		(5,617	)		10,387			(8,901	)		(3,437	)
Net change in unrealized appreciation (depreciation)		(47,327,354	)		(226,738,079	)		(159,752,967	)		(79,993,248	)
Net realized and unrealized loss		(65,936,697	)		(508,431,243	)		(193,416,417	)		(92,284,232	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(64,028,485	)	$	(507,759,191	)	$	(187,663,579	)	$	(92,125,697	)

^a Net of foreign withholding tax of $464,171, $–, $– and $–, respectively.

See notes to financial statements.

36 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Brazil Index Fund						iShares MSCI BRIC Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Period from November 12, 2007a to August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	70,849,245		$	177,141,014		$	844,232		$	1,398,623
Net realized gain (loss)		(405,520,558	)		6,541,539			(9,773,079	)		(1,479,711	)
Net change in unrealized appreciation (depreciation)		(3,392,546,017	)		603,064,052			(76,285,629	)		(38,561,175	)
Net increase (decrease) in net assets resulting from operations		(3,727,217,330	)		786,746,605			(85,214,476	)		(38,642,263	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(154,721,163	)		(134,522,596	)		(1,712,337	)		(531,173	)
From net realized gain		–			(39,856,665	)		–			–
Total distributions to shareholders		(154,721,163	)		(174,379,261	)		(1,712,337	)		(531,173	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		541,937,500			2,833,440,415			25,444,603			205,181,301
Cost of shares redeemed		–			(637,881,395	)		(2,215,782	)		(4,916,318	)
Net increase in net assets from capital share transactions		541,937,500			2,195,559,020			23,228,821			200,264,983
INCREASE (DECREASE) IN NET ASSETS		(3,340,000,993	)		2,807,926,364			(63,697,992	)		161,091,547
NET ASSETS
Beginning of period		7,242,260,002			4,434,333,638			161,091,547			–
End of period	$	3,902,259,009		$	7,242,260,002		$	97,393,555		$	161,091,547
Undistributed net investment income included in net assets at end of period	$	12,362,883		$	96,234,801		$	4,963		$	873,068
SHARES ISSUED AND REDEEMED
Shares sold		14,950,000			35,200,000			900,000			3,750,000
Shares redeemed		–			(8,350,000	)		(100,000	)		(100,000	)
Net increase in shares outstanding		14,950,000			26,850,000			800,000			3,650,000

^a Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 37

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Canada Index Fund						iShares MSCI Chile Investable Market Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Period from November 12, 2007a to August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	13,434,282		$	28,262,646		$	570,409		$	1,031,995
Net realized gain (loss)		(84,745,322	)		226,766,651			(15,505,409	)		(1,749,702	)
Net change in unrealized appreciation (depreciation)		(899,217,641	)		(314,958,113	)		(28,670,723	)		(7,532,218	)
Net decrease in net assets resulting from operations		(970,528,681	)		(59,928,816	)		(43,605,723	)		(8,249,925	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(20,931,757	)		(30,808,204	)		(423,374	)		(923,618	)
Total distributions to shareholders		(20,931,757	)		(30,808,204	)		(423,374	)		(923,618	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		54,250,201			1,696,598,321			135,022,278			85,331,722
Cost of shares redeemed		(232,906,309	)		(857,922,549	)		(17,424,328	)		–
Net increase (decrease) in net assets from capital share transactions		(178,656,108	)		838,675,772			117,597,950			85,331,722
INCREASE (DECREASE) IN NET ASSETS		(1,170,116,546	)		747,938,752			73,568,853			76,158,179
NET ASSETS
Beginning of period		2,071,060,895			1,323,122,143			76,158,179			–
End of period	$	900,944,349		$	2,071,060,895		$	149,727,032		$	76,158,179
Undistributed net investment income included in net assets at end of period	$	2,484,925		$	9,982,399		$	241,255		$	94,220
SHARES ISSUED AND REDEEMED
Shares sold		2,500,000			51,400,000			3,400,000			1,700,000
Shares redeemed		(10,800,000	)		(27,900,000	)		(550,000	)		–
Net increase (decrease) in shares outstanding		(8,300,000	)		23,500,000			2,850,000			1,700,000

^a Commencement of operations.

See notes to financial statements.

38 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Israel Capped Investable Market Index Fund						iShares MSCI Mexico Investable Market Index Fund
	Six months ended February 28, 2009 (Unaudited)			Period from March 26, 2008a to August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,908,212		$	391,358		$	672,052		$	33,095,718
Net realized gain (loss)		(18,609,343	)		(725,469	)		(281,693,164	)		92,956,713
Net change in unrealized appreciation (depreciation)		(47,327,354	)		(24,397,311	)		(226,738,079	)		(246,927,980	)
Net decrease in net assets resulting from operations		(64,028,485	)		(24,731,422	)		(507,759,191	)		(120,875,549	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,288,027	)		–			(6,978,145	)		(35,045,653	)
Total distributions to shareholders		(2,288,027	)		–			(6,978,145	)		(35,045,653	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,502,612			246,546,176			328,351,715			1,921,692,035
Cost of shares redeemed		(56,399,971	)		(17,613,722	)		(439,298,938	)		(2,192,896,147	)
Net increase (decrease) in net assets from capital share transactions		(54,897,359	)		228,932,454			(110,947,223	)		(271,204,112	)
INCREASE (DECREASE) IN NET ASSETS		(121,213,871	)		204,201,032			(625,684,559	)		(427,125,314	)
NET ASSETS
Beginning of period		204,201,032			–			955,684,336			1,382,809,650
End of period	$	82,987,161		$	204,201,032		$	329,999,777		$	955,684,336
Undistributed net investment income included in net assets at end of period	$	7,178		$	386,993		$	45,280		$	6,351,373
SHARES ISSUED AND REDEEMED
Shares sold		50,000			4,550,000			9,800,000			33,000,000
Shares redeemed		(1,600,000	)		(350,000	)		(14,400,000	)		(38,300,000	)
Net increase (decrease) in shares outstanding		(1,550,000	)		4,200,000			(4,600,000	)		(5,300,000	)

^a Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 39

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI South Africa Index Fund						iShares MSCI Turkey Investable Market Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008			Six months ended February 28, 2009 (Unaudited)			Period from March 26, 2008a to August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	5,752,838		$	21,715,225		$	158,535		$	889,219
Net realized gain (loss)		(33,663,450	)		18,841,989			(12,290,984	)		(461,842	)
Net change in unrealized appreciation (depreciation)		(159,752,967	)		(115,088,724	)		(79,993,248	)		1,258,718
Net increase (decrease) in net assets resulting from operations		(187,663,579	)		(74,531,510	)		(92,125,697	)		1,686,095
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(7,918,740	)		(25,634,161	)		(1,035,378	)		–
Total distributions to shareholders		(7,918,740	)		(25,634,161	)		(1,035,378	)		–
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		141,224,744			405,639,896			24,799,678			152,861,063
Cost of shares redeemed		(141,334,724	)		(342,759,905	)		(19,108,182	)		(2,525,878	)
Net increase (decrease) in net assets from capital share transactions		(109,980	)		62,879,991			5,691,496			150,335,185
INCREASE (DECREASE) IN NET ASSETS		(195,692,299	)		(37,285,680	)		(87,469,579	)		152,021,280
NET ASSETS
Beginning of period		429,654,576			466,940,256			152,021,280			–
End of period	$	233,962,277		$	429,654,576		$	64,551,701		$	152,021,280
Undistributed net investment income included in net assets at end of period	$	386,731		$	2,552,633		$	34,906		$	911,749
SHARES ISSUED AND REDEEMED
Shares sold		3,400,000			5,800,000			750,000			2,950,000
Shares redeemed		(3,600,000	)		(5,600,000	)		(700,000	)		(50,000	)
Net increase (decrease) in shares outstanding		(200,000	)		200,000			50,000			2,900,000

^a Commencement of operations.

See notes to financial statements.

40 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Brazil Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	73.27		$	61.59		$	39.09		$	28.18		$	16.96		$	12.19
Income from investment operations:
Net investment incomea		0.69			1.93			1.09			1.00			0.89			0.55
Net realized and unrealized gain (loss)b		(38.14	)		11.59			22.35			10.49			10.79			4.49
Total from investment operations		(37.45	)		13.52			23.44			11.49			11.68			5.04
Less distributions from:
Net investment income		(1.53	)		(1.41	)		(0.94	)		(0.58	)		(0.46	)		(0.27	)
Net realized gain		–			(0.43	)		–			–			–			–
Total distributions		(1.53	)		(1.84	)		(0.94	)		(0.58	)		(0.46	)		(0.27	)
Net asset value, end of period	$	34.29		$	73.27		$	61.59		$	39.09		$	28.18		$	16.96
Total return		(51.00	)%c		21.58	%		60.82	%		41.13	%		69.72	%		41.42	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,902,259		$	7,242,260		$	4,434,334		$	2,468,295		$	552,285		$	209,504
Ratio of expenses to average net assetsd		0.67	%		0.63	%		0.69	%		0.70	%		0.74	%		0.96	%
Ratio of expenses to average net assets exclusive of foreign taxesd		n/a			0.63	%		0.68	%		n/a			n/a			n/a
Ratio of net investment income to average net assetsd		3.47	%		2.37	%		2.17	%		2.65	%		3.94	%		3.59	%
Portfolio turnover ratee		7	%		30	%		22	%		15	%		48	%		106	%

^a Based on average shares outstanding throughout each period.

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

^c Not annualized.

^d Annualized for periods of less than one year.

^e Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the years ended August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 4%, 19%, 6%, 13% and 9%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 41

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI BRIC Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Period from Nov. 12, 2007a to Aug. 31, 2008
Net asset value, beginning of period	$	44.13		$	56.50
Income from investment operations:
Net investment incomeb		0.20			0.72
Net realized and unrealized lossc		(22.06	)		(12.93	)
Total from investment operations		(21.86	)		(12.21	)
Less distributions from:
Net investment income		(0.38	)		(0.16	)
Total distributions		(0.38	)		(0.16	)
Net asset value, end of period	$	21.89		$	44.13
Total return		(49.62	)%d		(21.65	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	97,394		$	161,092
Ratio of expenses to average net assetse		0.74	%		0.72	%
Ratio of expenses to average net assets exclusive of foreign taxese		n/a			0.72	%
Ratio of net investment income to average net assetse		1.53	%		1.74	%
Portfolio turnover ratef		4	%		9	%

^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 in Creation Units but include 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 cash transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the period ended August 31, 2008 would have been 3% and 2%, respectively. See Note 4.

See notes to financial statements.

42 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Canada Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	30.55		$	29.87		$	24.69		$	20.30		$	14.33		$	12.25
Income from investment operations:
Net investment incomea		0.21			0.47			0.35			0.25			0.17			0.11
Net realized and unrealized gain (loss)b		(15.29	)		0.72			5.11			4.29			6.00			2.17
Total from investment operations		(15.08	)		1.19			5.46			4.54			6.17			2.28
Less distributions from:
Net investment income		(0.33	)		(0.51	)		(0.28	)		(0.15	)		(0.20	)		(0.20	)
Total distributions		(0.33	)		(0.51	)		(0.28	)		(0.15	)		(0.20	)		(0.20	)
Net asset value, end of period	$	15.14		$	30.55		$	29.87		$	24.69		$	20.30		$	14.33
Total return		(49.44	)%c		3.88	%		22.33	%		22.46	%		43.35	%		18.70	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	900,944		$	2,071,061		$	1,323,122		$	1,101,161		$	420,301		$	325,298
Ratio of expenses to average net assetsd		0.55	%		0.52	%		0.52	%		0.54	%		0.57	%		0.70	%e
Ratio of expenses to average net assets exclusive of foreign taxesd		n/a			n/a			0.52	%		n/a			n/a			n/a
Ratio of net investment income to average net assetsd		2.20	%		1.46	%		1.32	%		1.09	%		1.00	%		0.81	%
Portfolio turnover ratef		3	%		11	%		8	%		20	%		9	%		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 43

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Chile Investable Market Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Period from Nov. 12, 2007a to Aug. 31, 2008
Net asset value, beginning of period	$	44.80		$	48.84
Income from investment operations:
Net investment incomeb		0.15			0.92
Net realized and unrealized lossc		(11.93	)		(4.38	)
Total from investment operations		(11.78	)		(3.46	)
Less distributions from:
Net investment income		(0.11	)		(0.58	)
Total distributions		(0.11	)		(0.58	)
Net asset value, end of period	$	32.91		$	44.80
Total return		(26.26	)%d		(7.15	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	149,727		$	76,158
Ratio of expenses to average net assetse		0.68	%		0.63	%
Ratio of net investment income to average net assetse		0.94	%		2.38	%
Portfolio turnover ratef		26	%		16	%

^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 include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the period ended August 31, 2008 would have been 9% and 16%, respectively. See Note 4.

See notes to financial statements.

44 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Israel Capped Investable Market Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Period from Mar. 26, 2008a to Aug. 31, 2008
Net asset value, beginning of period	$	48.62		$	50.33
Income from investment operations:
Net investment incomeb		0.57			0.21
Net realized and unrealized lossc		(17.14	)		(1.92	)
Total from investment operations		(16.57	)		(1.71	)
Less distributions from:
Net investment income		(0.73	)		–
Total distributions		(0.73	)		–
Net asset value, end of period	$	31.32		$	48.62
Total return		(34.02	)%d		(3.40	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	82,987		$	204,201
Ratio of expenses to average net assetse		0.67	%		0.63	%
Ratio of net investment income to average net assetse		3.24	%		0.93	%
Portfolio turnover ratef		15	%		8	%

^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 45

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Mexico Investable Market Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	51.94		$	58.35		$	41.30		$	29.04		$	19.35		$	15.04
Income from investment operations:
Net investment incomea		0.04			1.40			0.64			0.76			0.42			0.26
Net realized and unrealized gain (loss)b		(27.65	)		(6.21	)		16.87			11.98			9.55			4.26
Total from investment operations		(27.61	)		(4.81	)		17.51			12.74			9.97			4.52
Less distributions from:
Net investment income		(0.42	)		(1.60	)		(0.46	)		(0.48	)		(0.28	)		(0.21	)
Total distributions		(0.42	)		(1.60	)		(0.46	)		(0.48	)		(0.28	)		(0.21	)
Net asset value, end of period	$	23.91		$	51.94		$	58.35		$	41.30		$	29.04		$	19.35
Total return		(53.38	)%c		(8.44	)%		42.58	%		44.11	%		51.77	%		30.28	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	330,000		$	955,684		$	1,382,810		$	764,107		$	255,557		$	129,623
Ratio of expenses to average net assetsd		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%		0.78	%
Ratio of net investment income to average net assetsd		0.25	%		2.42	%		1.19	%		2.06	%		1.70	%		1.40	%
Portfolio turnover ratee		9	%		13	%		14	%		12	%		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.

46 2009 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. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a			Year ended Aug. 31, 2005a			Year ended Aug. 31, 2004a
Net asset value, beginning of period	$	55.80		$	62.26		$	48.84		$	41.50		$	29.96		$	23.41
Income from investment operations:
Net investment incomeb		0.74			2.28			1.50			1.44			0.96			0.62
Net realized and unrealized gain (loss)c		(24.43	)		(6.02	)		13.18			6.89			11.18			6.61
Total from investment operations		(23.69	)		(3.74	)		14.68			8.33			12.14			7.23
Less distributions from:
Net investment income		(0.92	)		(2.72	)		(1.26	)		(0.99	)		(0.60	)		(0.68	)
Total distributions		(0.92	)		(2.72	)		(1.26	)		(0.99	)		(0.60	)		(0.68	)
Net asset value, end of period	$	31.19		$	55.80		$	62.26		$	48.84		$	41.50		$	29.96
Total return		(42.65	)%d		(6.18	)%		30.34	%		20.06	%		40.62	%		31.30	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	233,962		$	429,655		$	466,940		$	297,898		$	153,530		$	92,882
Ratio of expenses to average net assetse		0.67	%		0.63	%		0.68	%		0.70	%		0.74	%		0.95	%
Ratio of net investment income to average net assetse		4.06	%		3.61	%		2.58	%		2.79	%		2.62	%		2.23	%
Portfolio turnover ratef		8	%		21	%		8	%		7	%		32	%		13	%

^a Per share amounts were adjusted to reflect a two-for-one stock split effective July 24, 2008.

^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 47

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Turkey Investable Market Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Period from Mar. 26, 2008a to Aug. 31, 2008
Net asset value, beginning of period	$	52.42		$	50.30
Income from investment operations:
Net investment incomeb		0.05			0.83
Net realized and unrealized gain (loss)c		(30.21	)		1.29
Total from investment operations		(30.16	)		2.12
Less distributions from:
Net investment income		(0.38	)		–
Total distributions		(0.38	)		–
Net asset value, end of period	$	21.88		$	52.42
Total return		(57.66	)%d		4.22	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	64,552		$	152,021
Ratio of expenses to average net assetse		0.67	%		0.63	%
Ratio of net investment income to average net assetse		0.37	%		3.78	%
Portfolio turnover ratef		5	%		27	%

^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.

48 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

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

These financial statements relate only to the iShares MSCI Brazil, iShares MSCI BRIC, iShares MSCI Canada, iShares MSCI Chile Investable Market, iShares MSCI Israel Capped Investable Market, iShares MSCI Mexico Investable Market, iShares MSCI South Africa and iShares MSCI Turkey Investable Market 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, 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”). 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 valued pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”). Effective September 1, 2008, the Funds adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to

NOTES TO FINANCIAL STATEMENTS 49

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:

• Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”);

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”);

• Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”).

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Funds. The Funds consider observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.

Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Funds do not adjust the quoted price for such instruments, even in situations where the Funds hold a large position and a sale could reasonably impact the quoted price.

Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 Prices. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 Prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Funds use one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the

50 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

amount of such discount estimated by the Funds in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations.

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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

The following table summarizes the inputs used in valuing the Funds’ investments as of February 28, 2009:

	Investments in Securities
iShares MSCI Index Fund	Level 1		Level 2		Level 3		Total
Brazil	$	3,921,657,244	$	–	$	–	$	3,921,657,244
BRIC		108,625,211		–		657,916		109,283,127
Canada		898,249,395		–		66,935		898,316,330
Chile Investable Market		149,685,016		–		–		149,685,016
Israel Capped Investable Market		89,732,827		–		–		89,732,827
Mexico Investable Market		344,368,057		–		–		344,368,057
South Africa		235,406,001		–		–		235,406,001
Turkey Investable Market		84,453,546		–		–		84,453,546

The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the six months ended February 28, 2009:

iShares MSCI Index Fund	Balance at Beginning of Period		(Amortized Premiums) Accreted Discounts		Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)		Net Transfers in or out			Balance at End of Period		Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at End of Period
BRIC	$	–	$	–	$	(907,089	)	$	129,661	$	1,435,344		$	657,916	$	(907,089	)
Canada		112,339		–		(45,404	)		–		–			66,935		(45,404	)
Chile Investable Market		6,805		–		–			–		(6,805	)		–		–
Turkey Investable Market		34,000		–		–			–		(34,000	)		–		–

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.

NOTES TO FINANCIAL STATEMENTS 51

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 28, 2009, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

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 28, 2009.

Certain Funds had tax basis net capital loss carryforwards as of August 31, 2008, the tax year-end of the Funds, as follows:

iShares MSCI Index Fund	Expiring 2010	Expiring 2011		Expiring 2012		Expiring 2013		Expiring 2014		Expiring 2015		Expiring 2016		Total
Canada	$         –	$	–	$	–	$	2,931,648	$	–	$	5,363,291	$	5,107,471	$	13,402,410
Mexico Investable Market	47,326		2,329,290		3,136,171		12,912		632,766		–		853,150		7,011,615
South Africa	–		–		527,613		–		260,738		1,607,845		972,024		3,368,220

52 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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

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

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

As of February 28, 2009, 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 Depreciation
Brazil	$	5,224,123,806	$80,463,401	$	(1,382,929,963	)	$	(1,302,466,562	)
BRIC		225,460,617	–		(116,177,490	)		(116,177,490	)
Canada		1,882,210,611	–		(983,894,281	)		(983,894,281	)
Chile Investable Market		196,459,527	–		(46,774,511	)		(46,774,511	)
Israel Capped Investable Market		161,512,133	429,662		(72,208,968	)		(71,779,306	)
Mexico Investable Market		819,527,120	–		(475,159,063	)		(475,159,063	)
South Africa		485,695,299	–		(250,289,298	)		(250,289,298	)
Turkey Investable Market		164,883,884	–		(80,430,338	)		(80,430,338	)

Management has reviewed the tax positions as of February 28, 2009, inclusive of the prior three open tax return years, as applicable, and has determined that no provision for income tax is required in 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 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.

NOTES TO FINANCIAL STATEMENTS 53

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

For its investment advisory services to the iShares MSCI Canada and iShares MSCI Mexico Investable Market 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 Funds and certain other iShares Funds, as follows:

Investment Advisory Fee	Aggregate Average Daily Net Assets
0.59%	First $7 billion
0.54	Over $7 billion, up to and including $11 billion
0.49	Over $11 billion, up to and including $24 billion
0.44	Over $24 billion, up to and including $48 billion
0.40	Over $48 billion

For its investment advisory services to the iShares MSCI Brazil, iShares MSCI Chile Investable Market, iShares MSCI Israel Capped Investable Market, iShares MSCI South Africa and iShares MSCI Turkey Investable Market 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 Funds and certain other iShares 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, up to and including $16 billion
0.51	Over $16 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 certain other iShares Funds, 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

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,

54 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 28, 2009, BGI earned securities lending agent fees as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees
Brazil	$	78,278
BRIC		65,439
Israel Capped Investable Market		68,464

iShares MSCI Index Fund	Securities Lending Agent Fees
Mexico Investable Market	$	205,084
South Africa		5,710
Turkey Investable Market		363,293

Cross trades for the six months ended February 28, 2009, 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 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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.

Certain directors and officers of the Company are also officers of BGI and/or BGFA.

NOTES TO FINANCIAL STATEMENTS 55

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 28, 2009, were as follows:

iShares MSCI Index Fund	Purchases		Sales
Brazil	$	729,048,634	$	304,221,251
BRIC		11,680,854		4,816,437
Canada		37,024,865		43,157,915
Chile Investable Market		149,958,459		32,204,266
Israel Capped Investable Market		18,420,481		18,836,411
Mexico Investable Market		50,485,426		56,489,994
South Africa		24,592,558		26,222,810
Turkey Investable Market		5,048,426		4,785,297

In-kind transactions (see Note 4) for the six months ended February 28, 2009, were as follows:

iShares MSCI Index Fund	In-kind Purchases	In-kind Sales
BRIC	17,008,336	1,439,655
Canada	53,917,029	231,802,161
Israel Capped Investable Market	1,493,955	56,108,734
Mexico Investable Market	327,896,607	438,680,545
South Africa	140,495,071	140,726,638
Turkey Investable Market	23,527,105	18,875,881

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 (except for the iShares MSCI Brazil, iShares MSCI BRIC and iShares MSCI Chile Investable Market 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.

56 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.

As of February 28, 2009, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of February 28, 2009 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. SUBSEQUENT EVENT

On April 9, 2009, Barclays Global Investors UK Holdings Limited (“Barclays”), the parent company of BGI and BGFA, entered into an agreement to sell its interest in BGFA and certain affiliated companies to Blue Sparkle, L.P., a Cayman Islands limited partnership (the “Transaction”). Blue Sparkle, L.P. is an investment vehicle for private equity funds affiliated with CVC Capital Partners Group SICAV-FIS S.A., a private equity and investment advisory firm. The Transaction is subject to certain regulatory approvals, as well as other conditions to closing.

Under the 1940 Act, completion of the Transaction will cause the automatic termination of each Fund’s current investment advisory agreement with BGFA. In order for the management of each Fund to continue uninterrupted, the Board will be asked to approve a new investment advisory agreement with BGFA. If approved by the Board, the new investment advisory agreement will be submitted to the Funds’ shareholders for their approval.

NOTES TO FINANCIAL STATEMENTS 57

Notes:

58 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 59

Notes:

60 2009 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

Capped (FIO)

iShares FTSE NAREIT Mortgage Plus

Capped (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential Plus

Capped (REZ)

iShares FTSE NAREIT Retail Capped (RTL)

iShares Global Index Funds

iShares S&P Global 100 (IOO)

iShares S&P Global Clean Energy (ICLN)

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 Nuclear Energy (NUCL)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications

Sector (IXP)

iShares S&P Global Timber & Forestry (WOOD)

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 China (HK Listed) (FCHI)

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria Investable Market (EWO)

iShares MSCI Belgium Investable Market (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI Chile Investable Market (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 Investable Market (EWW)

iShares MSCI Netherlands Investable

Market (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 Barclays Aggregate (AGG)

iShares Barclays MBS (MBB)

iShares Barclays Short Treasury (SHV)

iShares Barclays 1-3 Year Treasury (SHY)

iShares Barclays 3-7 Year Treasury (IEI)

iShares Barclays 7-10 Year Treasury (IEF)

iShares Barclays 10-20 Year Treasury (TLH)

iShares Barclays 20+ Year Treasury (TLT)

iShares Barclays TIPS (TIP)

iShares Barclays Agency (AGZ)

iShares Barclays Credit (CFT)

iShares Barclays 1-3 Year Credit (CSJ)

iShares Barclays Intermediate Credit (CIU)

iShares iBoxx $ Investment Grade

Corporate (LQD)

iShares iBoxx $ High Yield Corporate (HYG)

iShares Barclays Government/Credit (GBF)

iShares Barclays Intermediate

Government/Credit (GVI)

iShares S&P National Municipal (MUB)

iShares S&P Short Term National

Municipal (SUB)

iShares S&P California Municipal (CMF)

iShares S&P New York Municipal (NYF)

iShares JPMorgan USD Emerging Markets (EMB)

iShares S&P/Citigroup International

Treasury (IGOV)

iShares S&P/Citigroup 1-3 Year International Treasury (ISHG)

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 FAMILY OF FUNDS 61

The iShares^® Family of Funds (Continued)

iShares International Index Funds

iShares FTSE Developed Small Cap ex-North America (IFSM)

iShares FTSE EPRA/NAREIT Developed

Asia (IFAS)

iShares FTSE EPRA/NAREIT Developed

Europe (IFEU)

iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. (IFGL)

iShares FTSE EPRA/NAREIT North

America (IFNA)

iShares MSCI ACWI (ACWI)

iShares MSCI ACWI ex US (ACWX)

iShares MSCI All Country Asia ex Japan (AAXJ)

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 Developed ex-U.S. Property (WPS)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

iShares NYSE Index Funds

iShares NYSE Composite (NYC)

iShares NYSE 100 (NY)

iShares S&P Allocation Funds

iShares S&P Conservative (AOK)

iShares S&P Moderate (AOM)

iShares S&P Growth (AOR)

iShares S&P Aggressive (AOA)

iShares S&P Target Date Index Funds

iShares S&P Target Date Retirement

    Income (TGR)

iShares S&P Target Date 2010 (TZD)

iShares S&P Target Date 2015 (TZE)

iShares S&P Target Date 2020 (TZG)

iShares S&P Target Date 2025 (TZI)

iShares S&P Target Date 2030 (TZL)

iShares S&P Target Date 2035 (TZO)

iShares S&P Target Date 2040 (TZV)

iShares^® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not 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, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or 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 2009 Semi-Annual Report.

iS-0569-0409

62 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

For more information:

WWW.iSHARES.COM

1-800-iShares (1-800-474-2737)

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global Investors, N.A. (BGI), neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued sold or promoted by MSCI Inc., nor does this company 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 company listed above.

©2009 Barclays Global Investors. All rights reserved iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

Investing involves risk, including possible loss of principal.

A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the

Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, upon

request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShare.com; and on the U.S. Securities and Exchange Commission

(SEC) website at www.sec.gov.

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SFC’S website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a monthly basis on the Funds’ website.

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

BGI - SAR-84-0209

LET’S BUILD A BETTER INVESTMENT WORLD.®

BARCLAYS

GLOBAL INVESTORS

iShares®

2009 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES® MSCI SERIES

FEBRUARY 28, 2009

Would you prefer to receive materials like this electronically? See inside cover for details.

iShares MSCI Japan Index Fund

iShares®

iShares®

Dear iShares Shareholder:

Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.

To sign up for electronic delivery, please follow these simple steps:

1. Go to www.icsdelivery.com.

2. From the main page, select the first letter of your brokerage firm’s name.

3. Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser.

4. Fill out the appropriate information and provide the e-mail address where you would like your information sent.

Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser.

Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.

Table of Contents

Fund Performance Overview	1
Shareholder Expenses	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 28, 2009

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 28, 2009, the total return for the Fund was (34.15)%, while the total return for the Index was (34.02)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(40.08)%	(40.42)%	(39.84)%	(3.89)%	(4.58)%	(3.37)%	(2.05)%	(2.32)%	(1.43)%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Ten Years Ended 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(40.08)%	(40.42)%	(39.84)%	(17.98)%	(20.91)%	(15.73)%	(18.74)%	(20.93)%	(13.40)%

“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 primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The returns shown in the 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 2/28/09
Sector	Percentage of Net Assets
Consumer Cyclical	25.42	%
Industrial	20.21
Financial	16.05
Consumer Non-Cyclical	11.38
Utilities	8.24
Basic Materials	6.78
Communications	6.01
Technology	4.18
Energy	1.51
Short-Term and Other Net Assets	0.22
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Toyota Motor Corp.	5.57	%
Mitsubishi UFJ Financial Group Inc.	3.20
Honda Motor Co. Ltd.	2.52
Tokyo Electric Power Co. Inc. (The)	2.18
Takeda Pharmaceutical Co. Ltd.	2.06
Nintendo Co. Ltd.	1.92
Canon Inc.	1.71
NTT DoCoMo Inc.	1.55
Nippon Telegraph and Telephone Corp.	1.43
Sumitomo Mitsui Financial Group Inc.	1.40
TOTAL	23.54	%

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, 2008 to February 28, 2009.

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 (9/1/08)	Ending Account Value (2/28/09)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/08 to 2/28/09)
Actual	$1,000.00	$   658.50	0.56	%	$2.30
Hypothetical (5% return before expenses)	1,000.00	1,022.00	0.56		2.81

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

2 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 99.78%
ADVERTISING – 0.23%
Dentsu Inc.a	467,000	$	6,892,003
Hakuhodo DY Holdings Inc.	65,170		2,844,048
			9,736,051
AGRICULTURE – 0.69%
Japan Tobacco Inc.	12,103		29,068,476
			29,068,476
AIRLINES – 0.28%
All Nippon Airways Co. Ltd.a	1,864,000		6,667,688
Japan Airlines Corp.a,b	2,793,000		5,309,397
			11,977,085
APPAREL – 0.19%
ASICS Corp.	461,000		2,902,305
Onward Holdings Co. Ltd.	931,000		5,309,397
			8,211,702
AUTO MANUFACTURERS – 9.50%
Fuji Heavy Industries Ltd.	1,862,000		6,032,541
Hino Motors Ltd.	931,000		1,731,739
Honda Motor Co. Ltd.	4,375,700		106,882,549
Isuzu Motors Ltd.	3,724,000		3,691,839
Mazda Motor Corp.	2,793,000		3,596,689
Mitsubishi Motors Corp.a,b	9,310,000		10,942,307
Nissan Motor Co. Ltd.	6,144,900		19,217,532
Suzuki Motor Corp.	931,000		14,700,751
Toyota Motor Corp.	7,262,300		236,027,533
			402,823,480
AUTO PARTS & EQUIPMENT – 1.95%
Aisin Seiki Co. Ltd.	465,700		7,324,976
Bridgestone Corp.	1,582,700		21,885,565
Denso Corp.	1,303,400		25,016,968
JTEKT Corp.	372,400		2,009,578
NGK Spark Plug Co. Ltd.	629,000		4,911,401
NHK Spring Co. Ltd.	406,000		1,390,056
NOK Corp.	279,300		2,043,833
Sumitomo Rubber Industries Inc.	372,400		2,371,150
Toyoda Gosei Co. Ltd.	186,200		2,553,839
Toyota Boshoku Corp.	93,100		907,736
Toyota Industries Corp.	558,600		12,074,598
			82,489,700

Security	Shares	Value
BANKS – 9.66%
Aozora Bank Ltd.	931,000	$	1,056,170
Bank of Kyoto Ltd. (The)	931,000		8,125,852
Bank of Yokohama Ltd. (The)	3,724,000		15,985,283
Chiba Bank Ltd. (The)	1,862,000		8,868,026
Chuo Mitsui Trust Holdings Inc.	2,793,000		8,649,180
Fukuoka Financial Group Inc.	1,868,000		5,689,243
Gunma Bank Ltd.	931,000		5,033,461
Hachijuni Bank Ltd. (The)	931,000		5,204,732
Hiroshima Bank Ltd. (The)	931,000		3,511,053
Hokuhoku Financial Group Inc.	3,729,000		5,869,140
Iyo Bank Ltd. (The)	931,000		9,848,076
Joyo Bank Ltd. (The)	1,862,000		8,601,605
Mitsubishi UFJ Financial Group Inc.	29,233,480		135,643,108
Mizuho Financial Group Inc.	25,323,300		48,656,348
Mizuho Trust & Banking Co. Ltd.	3,724,000		3,235,117
Nishi-Nippon City Bank Ltd. (The)	1,862,000		3,844,080
Resona Holdings Inc.a	1,400,100		24,426,089
Sapporo Hokuyo Holdings Inc.	934,000		2,357,790
Seven Bank Ltd.	931		2,559,548
77 Bank Ltd. (The)	931,000		4,424,501
Shinsei Bank Ltd.	3,724,000		3,349,297
Shizuoka Bank Ltd. (The)	1,862,000		16,556,186
Sumitomo Mitsui Financial Group Inc.	1,837,300		59,525,178
Sumitomo Trust and Banking Co. Ltd. (The)	3,724,000		12,597,925
Suruga Bank Ltd.	776,000		6,059,216
			409,676,204
BEVERAGES – 0.90%
Asahi Breweries Ltd.	931,000		11,741,571
Coca-Cola West Co. Ltd.	186,200		2,966,792
ITO EN Ltd.a	186,400		2,381,317
Kirin Holdings Co. Ltd.	1,862,000		18,116,654
Sapporo Holdings Ltd.	931,000		3,073,361
			38,279,695
BUILDING MATERIALS – 1.09%
Asahi Glass Co. Ltd.	2,793,000		12,245,869
Daikin Industries Ltd.	658,700		14,608,605

SCHEDULE OF INVESTMENTS 3

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2009

Security	Shares	Value
JS Group Corp.	651,700	$	7,060,166
Nippon Sheet Glass Co. Ltd.	1,862,000		3,748,929
Panasonic Electric Works Co. Ltd.	931,000		5,709,030
Taiheiyo Cement Corp.	1,862,000		2,683,244
			46,055,843
CHEMICALS – 3.22%
Asahi Kasei Corp.	2,793,000		8,991,722
Daicel Chemical Industries Ltd.	931,000		3,273,177
Denki Kagaku Kogyo Kabushiki Kaisha	1,862,000		3,044,816
DIC Corp.	1,862,000		2,626,154
Hitachi Chemical Co. Ltd.	186,200		1,878,271
JSR Corp.	465,500		5,552,031
Kaneka Corp.	931,000		4,557,709
Mitsubishi Chemical Holdings Corp.	3,258,500		11,189,698
Mitsubishi Gas Chemical Co. Inc.	931,000		3,701,354
Mitsui Chemicals Inc.	1,862,000		4,015,351
Nitto Denko Corp.	465,500		8,468,394
Shin-Etsu Chemical Co. Ltd.	1,024,100		46,157,504
Showa Denko K.K.	2,793,000		3,339,782
Sumitomo Chemical Co. Ltd.	3,724,000		11,341,939
Taiyo Nippon Sanso Corp.	931,000		5,946,906
Tokuyama Corp.	931,000		4,938,311
Tosoh Corp.	1,862,000		2,854,515
Ube Industries Ltd.	2,801,000		4,494,425
			136,372,059
COMMERCIAL SERVICES – 0.96%
Benesse Corp.	186,200		7,440,769
Dai Nippon Printing Co. Ltd.	1,862,000		15,966,253
Kamigumi Co. Ltd.	931,000		5,994,482
Toppan Printing Co. Ltd.	1,862,000		11,227,758
			40,629,262
COMPUTERS – 0.72%
Fujitsu Ltd.	4,655,000		16,032,858
Itochu Techno-Solutions Corp.	93,100		1,751,721
OBIC Co. Ltd.	9,310		1,247,423
Otsuka Corp.	62,000		2,186,111
TDK Corp.	279,300		9,334,263
			30,552,376

Security	Shares	Value
COSMETICS & PERSONAL CARE – 1.10%
Kao Corp.	1,401,000	$	26,732,761
Shiseido Co. Ltd.	931,000		13,768,276
Uni-Charm Corp.	93,100		6,070,601
			46,571,638
DISTRIBUTION & WHOLESALE – 3.62%
Canon Marketing Japan Inc.	93,100		1,303,562
Hitachi High-Technologies Corp.	93,100		1,157,981
ITOCHU Corp.	3,724,000		17,050,968
Marubeni Corp.	3,878,000		12,286,576
Mitsubishi Corp.	3,537,800		44,979,541
Mitsui & Co. Ltd.	4,655,000		43,769,227
Sojitz Corp.	3,351,600		3,836,468
Sumitomo Corp.	2,886,100		24,541,215
Toyota Tsusho Corp.	558,700		4,596,592
			153,522,130
DIVERSIFIED FINANCIAL SERVICES – 1.31%
Acom Co. Ltd.a	147,568		3,649,799
AEON Credit Service Co. Ltd.	372,470		2,881,699
Credit Saison Co. Ltd.	465,500		3,097,148
Daiwa Securities Group Inc.	3,724,000		13,016,587
Mitsubishi UFJ Lease & Finance Co. Ltd.	139,650		2,484,855
Nomura Holdings Inc.a	4,748,100		20,090,075
ORIX Corp.	232,750		4,852,675
Promise Co. Ltd.a	186,200		2,523,391
Shinko Securities Co. Ltd.	931,000		1,693,679
Takefuji Corp.	307,230		1,029,909
			55,319,817
ELECTRIC – 7.03%
Chubu Electric Power Co. Inc.	1,768,900		43,840,589
Chugoku Electric Power Co. Inc. (The)	651,800		15,654,658
Electric Power Development Co. Ltd.	372,400		11,988,962
Hokkaido Electric Power Co. Inc.	465,500		9,895,651
Hokuriku Electric Power Co.	372,400		9,895,651
Kansai Electric Power Co. Inc. (The)	2,048,200		49,506,802
Kyushu Electric Power Co. Inc.	1,024,100		24,334,739
Shikoku Electric Power Co. Inc.	465,500		14,153,636
Tohoku Electric Power Co. Inc.	1,117,300		26,263,887

4 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2009

Security	Shares	Value
Tokyo Electric Power Co. Inc. (The)	3,258,500	$	92,414,916
			297,949,491
ELECTRICAL COMPONENTS & EQUIPMENT – 2.99%
Brother Industries Ltd.	651,700		4,409,274
Casio Computer Co. Ltd.	651,700		4,549,145
Furukawa Electric Co. Ltd. (The)	1,862,000		4,928,796
Hitachi Ltd.	9,310,000		23,597,322
Mitsubishi Electric Corp.	4,655,000		18,697,072
SANYO Electric Co. Ltd.b	4,231,000		6,010,619
Sharp Corp.	2,793,000		21,865,583
Stanley Electric Co. Ltd.	373,600		3,814,466
Sumitomo Electric Industries Ltd.	1,862,500		14,695,181
Toshiba Corp.a	8,379,000		20,552,506
Ushio Inc.	279,300		3,739,414
			126,859,378
ELECTRONICS – 5.01%
Advantest Corp.	372,400		4,571,030
Alps Electric Co. Ltd.	465,500		1,308,319
Fanuc Ltd.	465,500		30,923,910
Hirose Electric Co. Ltd.a	93,100		8,059,247
Hoya Pentax HD Corp.	1,117,200		20,586,760
IBIDEN Co. Ltd.	372,400		7,292,334
Keyence Corp.	93,192		17,791,676
Kyocera Corp.	465,500		27,831,519
Mabuchi Motor Co. Ltd.a	93,100		3,653,779
Minebea Co. Ltd.	931,000		3,216,087
Mitsumi Electric Co. Ltd.	186,200		2,346,411
Murata Manufacturing Co. Ltd.	558,600		21,523,042
NEC Corp.	5,586,000		13,302,039
NGK Insulators Ltd.	931,000		12,512,290
Nippon Electric Glass Co. Ltd.	931,500		6,140,503
Omron Corp.	558,600		6,508,294
Secom Co. Ltd.	558,600		19,353,610
Yaskawa Electric Corp.	931,000		3,682,324
Yokogawa Electric Corp.	558,600		1,918,234
			212,521,408
ENGINEERING & CONSTRUCTION – 0.86%
JGC Corp.	931,000		10,847,156
Kajima Corp.	2,793,000		5,880,300
Obayashi Corp.	1,862,000		7,859,431

Security	Shares	Value
Shimizu Corp.	1,862,000	$	7,060,167
Taisei Corp.	2,793,000		4,995,401
			36,642,455
ENTERTAINMENT – 0.42%
Oriental Land Co. Ltd.a	186,200		12,236,353
Toho Co. Ltd.	373,600		5,651,060
			17,887,413
ENVIRONMENTAL CONTROL – 0.11%
Kurita Water Industries Ltd.	279,300		4,809,857
			4,809,857
FOOD – 1.16%
Ajinomoto Co. Inc.	1,862,000		12,883,377
Kikkoman Corp.	931,000		7,193,377
Meiji Dairies Corp.	931,000		3,549,113
Nippon Meat Packers Inc.	931,000		9,134,447
Nisshin Seifun Group Inc.	467,500		4,758,853
Nissin Foods Holdings Co. Ltd.	280,100		8,559,446
Yakult Honsha Co. Ltd.a	186,200		3,008,659
			49,087,272
FOREST PRODUCTS & PAPER – 0.31%
Nippon Paper Group Inc.	280,200		6,257,213
Oji Paper Co. Ltd.	1,862,000		6,965,016
			13,222,229
GAS – 1.21%
Osaka Gas Co. Ltd.	5,586,000		20,095,784
Toho Gas Co. Ltd.	931,000		4,824,130
Tokyo Gas Co. Ltd.	6,517,000		26,242,506
			51,162,420
HAND & MACHINE TOOLS – 0.93%
Fuji Electric Holdings Co. Ltd.	1,862,000		1,693,679
Makita Corp.	279,300		5,597,703
Nidec Corp.	279,300		11,817,691
SMC Corp.	186,200		17,184,179
THK Co. Ltd.a	279,900		3,252,556
			39,545,808
HEALTH CARE - PRODUCTS – 0.34%
Terumo Corp.	465,500		14,415,300
			14,415,300
HOME BUILDERS – 0.41%
Daiwa House Industry Co. Ltd.	931,000		6,175,267
Haseko Corp.	3,258,500		1,132,291

SCHEDULE OF INVESTMENTS 5

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2009

Security	Shares	Value
Sekisui Chemical Co. Ltd.	931,000	$	4,005,836
Sekisui House Ltd.	931,000		6,184,782
			17,498,176
HOME FURNISHINGS – 2.45%
Panasonic Corp.	4,655,015		54,902,012
Sony Corp.	2,699,900		46,026,197
Yamaha Corp.	372,400		2,915,411
			103,843,620
HOUSEWARES – 0.10%
TOTO Ltd.a	931,000		4,043,896
			4,043,896
INSURANCE – 2.57%
Aioi Insurance Co. Ltd.	931,000		3,453,963
Mitsui Sumitomo Insurance Group Holdings Inc.	1,024,100		24,805,733
Nipponkoa Insurance Co. Ltd.	1,862,000		13,949,062
Sompo Japan Insurance Inc.	1,862,000		9,381,839
Sony Financial Holdings Inc.	1,862		4,862,190
T&D Holdings Inc.	512,050		11,670,208
Tokio Marine Holdings Inc.	1,768,900		40,857,622
			108,980,617
INTERNET – 1.48%
Dena Co. Ltd.a	931		2,778,394
Matsui Securities Co. Ltd.a	281,700		1,632,418
Rakuten Inc.	17,811		9,210,860
SBI Holdings Inc.	43,757		3,546,354
SoftBank Corp.	1,955,100		23,977,924
Trend Micro Inc.	465,500		10,704,431
Yahoo! Japan Corp.a	38,181		11,031,498
			62,881,879
IRON & STEEL – 2.54%
Daido Steel Co. Ltd.	931,000		2,026,705
JFE Holdings Inc.	1,396,750		30,762,903
Kobe Steel Ltd.	7,448,000		9,058,327
Nippon Steel Corp.	13,965,000		37,251,418
Nisshin Steel Co. Ltd.	2,801,000		4,351,290
Sumitomo Metal Industries Ltd.	10,241,000		19,572,457
Tokyo Steel Manufacturing Co. Ltd.	279,900		2,783,410
Yamato Kogyo Co. Ltd.	93,100		1,926,797
			107,733,307

Security	Shares	Value
LEISURE TIME – 0.66%
Namco Bandai Holdings Inc.	558,698	$	5,161,868
Sankyo Co. Ltd.	186,200		8,449,364
Sega Sammy Holdings Inc.	466,300		4,017,486
Shimano Inc.	186,200		6,184,782
Yamaha Motor Co. Ltd.	465,700		4,031,355
			27,844,855
MACHINERY – 0.28%
Hitachi Construction Machinery Co. Ltd.a	282,300		3,332,378
Japan Steel Works Ltd. (The)	931,000		8,525,484
			11,857,862
MACHINERY - CONSTRUCTION & MINING – 0.57%
Komatsu Ltd.	2,327,500		24,310,951
			24,310,951
MACHINERY - DIVERSIFIED – 0.55%
Amada Co. Ltd.	931,000		4,576,739
Kubota Corp.	2,793,000		13,587,490
Sumitomo Heavy Industries Ltd.	1,862,000		5,004,916
			23,169,145
MANUFACTURING – 2.14%
FUJIFILM Holdings Corp.	1,303,400		24,777,188
IHI Corp.	3,730,000		3,164,086
Kawasaki Heavy Industries Ltd.	3,724,000		6,508,294
Konica Minolta Holdings Inc.	1,396,500		10,861,429
Mitsubishi Heavy Industries Ltd.	8,379,000		23,806,653
Nikon Corp.	931,000		8,877,541
Olympus Corp.a	931,000		12,540,835
			90,536,026
MEDIA – 0.18%
Fuji Media Holdings Inc.	1,655		1,901,191
Jupiter Telecommunications Co. Ltd.	5,586		4,447,334
Tokyo Broadcasting System Inc.	93,100		1,222,684
			7,571,209
METAL FABRICATE & HARDWARE – 0.16%
Maruichi Steel Tube Ltd.	93,100		1,979,130
NSK Ltd.	931,000		2,921,120
NTN Corp.	931,000		2,074,281
			6,974,531

6 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2009

Security	Shares	Value
MINING – 0.71%
Dowa Holdings Co. Ltd.	931,000	$	2,930,635
Mitsubishi Materials Corp.	2,793,000		6,593,929
Mitsui Mining & Smelting Co. Ltd.	1,862,000		2,664,214
OSAKA Titanium technologies Co. Ltd.a	78,400		1,690,674
Sumitomo Metal Mining Co. Ltd.	1,595,000		16,138,280
			30,017,732
OFFICE & BUSINESS EQUIPMENT – 2.32%
Canon Inc.	2,793,050		72,505,974
Ricoh Co. Ltd.	1,862,000		21,484,981
Seiko Epson Corp.	372,400		4,327,445
			98,318,400
OIL & GAS – 1.51%
Cosmo Oil Co. Ltd.	1,862,000		5,214,247
Idemitsu Kosan Co. Ltd.	34,000		2,627,012
INPEX Corp.	1,862		12,902,407
Japan Petroleum Exploration Co. Ltd.	93,100		3,453,963
Nippon Mining Holdings Inc.	2,327,500		8,230,518
Nippon Oil Corp.	3,724,500		17,928,760
Showa Shell Sekiyu K.K.	558,700		4,676,532
TonenGeneral Sekiyu K.K.	931,000		8,829,966
			63,863,405
PACKAGING & CONTAINERS – 0.11%
Toyo Seikan Kaisha Ltd.	372,400		4,799,391
			4,799,391
PHARMACEUTICALS – 6.23%
Alfresa Holdings Corp.	93,100		3,644,264
Astellas Pharma Inc.	1,210,330		40,696,875
Chugai Pharmaceutical Co. Ltd.	558,600		9,625,424
Daiichi Sankyo Co. Ltd.	1,768,969		28,764,164
Eisai Co. Ltd.	651,700		20,248,025
Hisamitsu Pharmaceutical Co. Inc.	93,100		2,825,970
Kyowa Hakko Kirin Co. Ltd.	931,000		7,298,043
Mediceo Paltac Holdings Co. Ltd.	372,400		3,946,842
Mitsubishi Tanabe Pharma Corp.	931,000		11,237,273
Ono Pharmaceutical Co. Ltd.	186,200		8,677,725
Santen Pharmaceutical Co. Ltd.	93,100		2,569,063
Shionogi & Co. Ltd.	931,000		15,281,169

Security	Shares	Value
Suzuken Co. Ltd.	186,200	$	5,176,187
Taisho Pharmaceutical Co. Ltd.	794,000		14,363,330
Takeda Pharmaceutical Co. Ltd.	2,141,300		87,319,607
Tsumura & Co.	93,900		2,615,131
			264,289,092
REAL ESTATE – 1.92%
AEON Mall Co. Ltd.	187,000		2,010,568
Daito Trust Construction Co. Ltd.	186,200		5,918,361
Leopalace21 Corp.	372,400		2,100,923
Mitsubishi Estate Co. Ltd.	3,092,000		31,822,208
Mitsui Fudosan Co. Ltd.	2,138,000		21,916,439
Nomura Real Estate Holdings Inc.a	186,200		2,416,823
NTT Urban Development Corp.	2,793		1,998,160
Sumitomo Realty & Development Co. Ltd.	931,000		9,096,387
Tokyo Tatemono Co. Ltd.	931,000		2,093,311
Tokyu Land Corp.	931,000		2,140,886
			81,514,066
REAL ESTATE INVESTMENT TRUSTS – 0.56%
Japan Prime Realty Investment Corp.	931		1,506,232
Japan Real Estate Investment Corp.	931		6,993,561
Japan Retail Fund Investment Corp.	931		3,054,331
Nippon Building Fund Inc.	1,173		9,590,679
Nomura Real Estate Office Fund Inc.	520		2,657,264
			23,802,067
RETAIL – 3.04%
ABC-Mart Inc.	93,100		2,040,978
AEON Co. Ltd.	1,582,700		9,462,716
Citizen Watch Co. Ltd.	837,900		2,980,113
FamilyMart Co. Ltd.	186,200		6,298,963
Fast Retailing Co. Ltd.	93,100		9,467,474
Isetan Mitsukoshi Holdings Ltd.a,b	892,960		6,388,390
J. Front Retailing Co. Ltd.	1,071,000		3,294,711
Lawson Inc.	186,200		8,087,792
Marui Group Co. Ltd.	651,700		2,784,103
Nitori Co. Ltd.	93,100		4,938,311

SCHEDULE OF INVESTMENTS 7

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2009

Security	Shares	Value
Seven & I Holdings Co. Ltd.	2,141,380	$	48,038,521
Shimamura Co. Ltd.	47,700		2,476,529
Takashimaya Co. Ltd.	931,000		4,852,675
UNY Co. Ltd.	931,000		6,917,441
USS Co. Ltd.	74,480		3,021,980
Yamada Denki Co. Ltd.	214,130		7,878,461
			128,929,158
SEMICONDUCTORS – 0.87%
Elpida Memory Inc.a,b	279,300		1,687,018
NEC Electronics Corp.b	93,100		469,092
Rohm Co. Ltd.	279,700		13,521,192
Shinko Electric Industries Co. Ltd.a	186,200		1,729,836
Sumco Corp.	279,300		3,531,035
Tokyo Electron Ltd.	465,552		15,891,907
			36,830,080
SHIPBUILDING – 0.06%
Mitsui Engineering & Shipbuilding Co. Ltd.	1,862,000		2,740,334
			2,740,334
SOFTWARE – 0.27%
Konami Corp.	280,100		4,013,493
Nomura Research Institute Ltd.	186,200		2,959,180
Oracle Corp.	93,100		2,930,635
Square Enix Holdings Co. Ltd.	93,100		1,665,134
			11,568,442
STORAGE & WAREHOUSING – 0.06%
Mitsubishi Logistics Corp.	319,000		2,575,604
			2,575,604
TELECOMMUNICATIONS – 4.12%
Hikari Tsushin Inc.	93,100		1,520,505
KDDI Corp.	7,448		39,354,244
Nippon Telegraph and Telephone Corp.	1,401,000		60,853,901
NTT Data Corp.	2,793		7,010,688
NTT DoCoMo Inc.	41,895		65,896,474
			174,635,812
TEXTILES – 0.82%
Kuraray Co. Ltd.	931,000		6,926,956
Mitsubishi Rayon Co. Ltd.	931,000		1,712,709
Nisshinbo Industries Inc.	931,000		6,746,170

Security	Shares	Value
Teijin Ltd.	2,793,000	$	4,909,766
Toray Industries Inc.a	3,724,000		14,272,574
			34,568,175
TOYS, GAMES & HOBBIES – 1.92%
Nintendo Co. Ltd.	279,300		81,325,127
			81,325,127
TRANSPORTATION – 5.35%
Central Japan Railway Co.	4,552		27,680,924
East Japan Railway Co.	934,000		55,842,403
Hankyu Hanshin Holdings Inc.	2,798,800		12,929,200
Kawasaki Kisen Kaisha Ltd.	1,862,000		5,956,421
Keihin Electric Express Railway Co. Ltd.a	935,000		6,593,592
Keio Corp.	1,862,000		9,705,350
Kintetsu Corp.a	4,659,000		18,903,603
Mitsui O.S.K. Lines Ltd.	2,793,000		14,443,845
Nippon Express Co. Ltd.	1,862,000		5,404,548
Nippon Yusen Kabushiki Kaisha	2,793,000		11,703,511
Odakyu Electric Railway Co. Ltd.	931,000		6,888,896
Tobu Railway Co. Ltd.	2,793,000		13,987,122
Tokyu Corp.	2,793,000		10,904,246
West Japan Railway Co.	4,655		16,556,186
Yamato Holdings Co. Ltd.	931,000		9,172,507
			226,672,354
VENTURE CAPITAL – 0.03%
JAFCO Co. Ltd.	93,100		1,381,585
			1,381,585
TOTAL COMMON STOCKS (Cost: $7,193,128,129)			4,230,465,447
SHORT-TERM INVESTMENTS – 3.84%
MONEY MARKET FUNDS – 3.84%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%c,d,e	138,925,053		138,925,053
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%c,d,e	23,224,198		23,224,198

8 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2009

Security	Shares	Value
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%c,d	604,158	$          604,158
		162,753,409
TOTAL SHORT-TERM INVESTMENTS
(Cost: $162,753,409)		162,753,409
TOTAL INVESTMENTS IN SECURITIES – 103.62%
(Cost: $7,355,881,538)		4,393,218,856
Other Assets, Less Liabilities – (3.62)%		(153,594,830	)
NET ASSETS – 100.00%		$4,239,624,026

^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 All or a portion of 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 28, 2009

	iShares MSCI Japan Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	7,193,128,129
Affiliated issuers (Note 2)		162,753,409
Total cost of investments	$	7,355,881,538
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	4,230,465,447
Affiliated issuers (Note 2)		162,753,409
Total fair value of investments		4,393,218,856
Foreign currency, at valueb		1,306,357
Receivables:
Investment securities sold		3,785,576
Dividends and interest		6,991,556
Total Assets		4,405,302,345
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		162,149,251
Capital shares redeemed		1,443,234
Investment advisory fees (Note 2)		2,085,834
Total Liabilities		165,678,319
NET ASSETS	$	4,239,624,026
Net assets consist of:
Paid-in capital	$	7,744,540,060
Distributions in excess of net investment income		(4,921,237	)
Accumulated net realized loss		(536,895,904	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(2,963,098,893	)
NET ASSETS	$	4,239,624,026
Shares outstandingc		558,600,000
Net asset value per share	$	7.59

^a Securities on loan with market value of $152,870,745. See Note 5.

^b Cost of foreign currency: $1,339,597.

^c $0.001 par value, number of shares authorized: 2,124,600,000.

See notes to financial statements.

10 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2009

	iShares MSCI Japan Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	59,996,132
Interest from affiliated issuers (Note 2)		3,406
Securities lending income from affiliated issuers (Note 2)		1,107,027
Total investment income		61,106,565
EXPENSES
Investment advisory fees (Note 2)		15,696,985
Total expenses		15,696,985
Net investment income		45,409,580
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(93,326,346	)
In-kind redemptions		(65,309,250	)
Foreign currency transactions		8,022,729
Net realized loss		(150,612,867	)
Net change in unrealized appreciation (depreciation) on:
Investments		(2,352,317,776	)
Translation of assets and liabilities in foreign currencies		(458,088	)
Net change in unrealized appreciation (depreciation)		(2,352,775,864	)
Net realized and unrealized loss		(2,503,388,731	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(2,457,979,151	)

^a Net of foreign withholding tax of $4,488,401.

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 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	45,409,580		$	101,126,035
Net realized gain (loss)		(150,612,867	)		632,241,422
Net change in unrealized appreciation (depreciation)		(2,352,775,864	)		(2,458,735,947	)
Net decrease in net assets resulting from operations		(2,457,979,151	)		(1,725,368,490	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(45,531,514	)		(145,335,547	)
Total distributions to shareholders		(45,531,514	)		(145,335,547	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		852,414,599			1,033,469,389
Cost of shares redeemed		(1,608,816,226	)		(3,443,234,963	)
Net decrease in net assets from capital share transactions		(756,401,627	)		(2,409,765,574	)
DECREASE IN NET ASSETS		(3,259,912,292	)		(4,280,469,611	)
NET ASSETS
Beginning of period		7,499,536,318			11,780,005,929
End of period	$	4,239,624,026		$	7,499,536,318
Distributions in excess of net investment income included in net assets at end of period	$	(4,921,237	)	$	(4,799,303	)
SHARES ISSUED AND REDEEMED
Shares sold		88,200,000			79,200,000
Shares redeemed		(175,200,000	)		(270,600,000	)
Net decrease in shares outstanding		(87,000,000	)		(191,400,000	)

See notes to financial statements.

12 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Japan Index Fund
	Six months ended Feb. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005			Year ended Aug. 31, 2004
Net asset value, beginning of period	$	11.62		$	14.07		$	13.80		$	10.99		$	9.89		$	8.29
Income from investment operations:
Net investment incomea		0.07			0.14			0.10			0.06			0.06			0.03
Net realized and unrealized gain (loss)b		(4.03	)		(2.39	)		0.27			2.81			1.08			1.57
Total from investment operations		(3.96	)		(2.25	)		0.37			2.87			1.14			1.60
Less distributions from:
Net investment income		(0.07	)		(0.20	)		(0.10	)		(0.06	)		(0.04	)		(0.00	)c
Total distributions		(0.07	)		(0.20	)		(0.10	)		(0.06	)		(0.04	)		(0.00	)c
Net asset value, end of period	$	7.59		$	11.62		$	14.07		$	13.80		$	10.99		$	9.89
Total return		(34.15	)%d		(16.13	)%		2.68	%		26.10	%		11.58	%		19.32	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	4,239,624		$	7,499,536		$	11,780,006		$	13,724,590		$	7,248,107		$	5,863,332
Ratio of expenses to average net assetse		0.56	%		0.52	%		0.52	%		0.54	%		0.57	%		0.64	%f
Ratio of net investment income to average net assetse		1.61	%		1.11	%		0.68	%		0.48	%		0.59	%		0.28	%
Portfolio turnover rateg		1	%		4	%		3	%		8	%		6	%		5	%

^a Based on average shares outstanding throughout each period.

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

^c Rounds to less than $0.01.

^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.

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 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”). 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 valued pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”). Effective September 1, 2008, the Fund adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to

14 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:

• Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”);

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”);

• Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”).

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Fund. The Fund considers observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Fund’s perceived risk of that instrument.

Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Fund does not adjust the quoted price for such instruments, even in situations where the Fund holds a large position and a sale could reasonably impact the quoted price.

Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 Prices. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 Prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Fund uses one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

The inputs used by the Fund in estimating the value of Level 3 Prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the

NOTES TO FINANCIAL STATEMENTS 15

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

amount of such discount estimated by the Fund in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations.

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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

As of February 28, 2009, the value of each of the Fund’s investments was classified as a Level 1 price.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

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

FOREIGN CURRENCY TRANSLATION

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

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

DISTRIBUTIONS TO SHAREHOLDERS

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

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

FEDERAL INCOME TAXES

The Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of the Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its 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 28, 2009.

16 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

As of August 31, 2008, 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, $27,817,841 and $44,443,527 expiring in 2009, 2010, 2011, 2012, 2013, 2014, 2015 and 2016, 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 28, 2009, the cost of investments for federal income tax purposes was $7,408,264,859. Net unrealized depreciation was $3,015,046,003, of which $3,015,046,003 represented gross unrealized depreciation on securities and $0 represented gross unrealized appreciation on securities.

Management has reviewed the tax positions as of February 28, 2009, inclusive of the prior three open tax return years, and has determined that no provision for income tax is required in 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 certain other iShares Funds, as follows:

Investment Advisory Fee	Aggregate Average Daily Net Assets
0.59%	First $7 billion
0.54	Over $7 billion, up to and including $11 billion
0.49	Over $11 billion, up to and including $24 billion
0.44	Over $24 billion, up to and including $48 billion
0.40	Over $48 billion

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.

NOTES TO FINANCIAL STATEMENTS 17

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 28, 2009, BGI earned securities lending agent fees of $1,107,027.

Cross trades for the six months ended February 28, 2009 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 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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.

Certain directors and officers of the Company are also officers of BGI and/or BGFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2009, aggregated $85,517,701 and $100,440,376, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 28, 2009, aggregated $825,293,630 and $1,560,985,082, respectively.

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.

18 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.

As of February 28, 2009, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of February 28, 2009 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. SUBSEQUENT EVENT

On April 9, 2009, Barclays Global Investors UK Holdings Limited (“Barclays”), the parent company of BGI and BGFA, entered into an agreement to sell its interest in BGFA and certain affiliated companies to Blue Sparkle, L.P., a Cayman Islands limited partnership (the “Transaction”). Blue Sparkle, L.P. is an investment vehicle for private equity funds affiliated with CVC Capital Partners Group SICAV-FIS S.A., a private equity and investment advisory firm. The Transaction is subject to certain regulatory approvals, as well as other conditions to closing.

Under the 1940 Act, completion of the Transaction will cause the automatic termination of the Fund’s current investment advisory agreement with BGFA. In order for the management of the Fund to continue uninterrupted, the Board will be asked to approve a new investment advisory agreement with BGFA. If approved by the Board, the new investment advisory agreement will be submitted to the Fund’s shareholders for their approval.

NOTES TO FINANCIAL STATEMENTS 19

Notes:

20 2009 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 Capped (FIO)

iShares FTSE NAREIT Mortgage Plus Capped (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential Plus Capped (REZ)

iShares FTSE NAREIT Retail Capped (RTL)

iShares Global Index Funds

iShares S&P Global 100 (IOO)

iShares S&P Global Clean Energy (ICLN)

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 Nuclear Energy (NUCL)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares S&P Global Timber & Forestry (WOOD)

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 China (HK Listed) (FCHI)

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria Investable Market (EWO)

iShares MSCI Belgium Investable Market (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI Chile Investable Market (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 Investable Market (EWW)

iShares MSCI Netherlands Investable Market (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 Barclays Aggregate (AGG)

iShares Barclays MBS (MBB)

iShares Barclays Short Treasury (SHV)

iShares Barclays 1-3 Year Treasury (SHY)

iShares Barclays 3-7 Year Treasury (IEI)

iShares Barclays 7-10 Year Treasury (IEF)

iShares Barclays 10-20 Year Treasury (TLH)

iShares Barclays 20+ Year Treasury (TLT)

iShares Barclays TIPS (TIP)

iShares Barclays Agency (AGZ)

iShares Barclays Credit (CFT)

iShares Barclays 1-3 Year Credit (CSJ)

iShares Barclays Intermediate Credit (CIU)

iShares iBoxx $ Investment Grade Corporate (LQD)

iShares iBoxx $ High Yield Corporate (HYG)

iShares Barclays Government/Credit (GBF)

iShares Barclays Intermediate Government/Credit (GVI)

iShares S&P National Municipal (MUB)

iShares S&P Short Term National Municipal (SUB)

iShares S&P California Municipal (CMF)

iShares S&P New York Municipal (NYF)

iShares JPMorgan USD Emerging Markets (EMB)

iShares S&P/Citigroup International Treasury (IGOV)

iShares S&P/Citigroup 1-3 Year International Treasury (ISHG)

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 FAMILY OF FUNDS 21

The iShares^® Family of Funds (Continued)

iShares International Index Funds

iShares FTSE Developed Small Cap ex-North America (IFSM)

iShares FTSE EPRA/NAREIT Developed Asia (IFAS)

iShares FTSE EPRA/NAREIT Developed Europe (IFEU)

iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. (IFGL)

iShares FTSE EPRA/NAREIT North America (IFNA)

iShares MSCI ACWI (ACWI)

iShares MSCI ACWI ex US (ACWX)

iShares MSCI All Country Asia ex Japan (AAXJ)

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 Developed ex-U.S. Property (WPS)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

iShares NYSE Index Funds

iShares NYSE Composite (NYC)

iShares NYSE 100 (NY)

iShares S&P Allocation Funds

iShares S&P Conservative (AOK)

iShares S&P Moderate (AOM)

iShares S&P Growth (AOR)

iShares S&P Aggressive (AOA)

iShares S&P Target Date Index Funds

iShares S&P Target Date Retirement Income (TGR)

iShares S&P Target Date 2010 (TZD)

iShares S&P Target Date 2015 (TZE)

iShares S&P Target Date 2020 (TZG)

iShares S&P Target Date 2025 (TZI)

iShares S&P Target Date 2030 (TZL)

iShares S&P Target Date 2035 (TZO)

iShares S&P Target Date 2040 (TZV)

iShares^® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not 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, nor rare they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or 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 2009 Semi-Annual Report.

iS-0569-0409

22 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

For more information:

WWW.iSHARES.COM

1-800-iShares (1-800-474-2737)

The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds BGFA is a subsidiary of Barclays Global Investors. N.A. (BGI). Neither of which is affiliated with SEI.

The iShares funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does the company 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 company listed above.

©2009 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

Investing involves risk, including possible loss of principal.

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

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N Q. The Fund’s Form N Q is available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. information the operation of the Public Reference Room may be obtained by calling 1-800 SEC 0330. The Fund also discloses its complete scheduled of portfolio holdings on a monthly basis on the Fund’s website.

This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. BARCLAYS GLOBAL INVESTORS LET’S BUILD A BETTER INVESTMENT WORLD.* BGI-SAR-81-0209

2009 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES® MSCI SERIES

FEBRUARY 28, 2009

Would you prefer to receive materials like this electronically? See inside cover for details.

ishares MSCI Emerging Markets Index Fund

iSHARES®

iShares® Dear iShares Shareholder: Electronic delivery is the easiest most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment To that end, we are pleased to offer shareholder reports and prospectuses online. To sign up for electronic delivery, please follow these simple steps: 1. Go to www.icsdelivery.com. 2. From the main page, select the first letter of your brokerage firm’s name. 3. Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser 4. Fill out the appropriate information and provide the e-mail address where you would like your information sent. Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.

Table of Contents

Fund Performance Overview	1
Shareholder Expenses	2
Schedule of Investments	3
Financial Statements	11
Financial Highlights	14
Notes to Financial Statements	15
iShares Family of Funds	25

Fund Performance Overview

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

Performance as of February 28, 2009

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 28, 2009, the total return for the Fund was (45.83)%, while the total return for the Index was (47.28)%.

Average Annual Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(53.52)%	(53.20)%	(56.17)%	3.73%	3.41%	3.36%	13.05%	12.92%	12.49%
Cumulative Total Returns
Year Ended 2/28/09			Five Years Ended 2/28/09			Inception to 2/28/09
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
(53.52)%	(53.20)%	(56.17)%	20.11%	18.24%	17.96%	106.15%	104.73%	100.28%

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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (4/11/03), the NAV of the Fund is used as a proxy for the Market 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(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 2/28/09
Sector/Investment Type	Percentage of Net Assets
Financial	20.00	%
Communications	16.61
Energy	15.15
Basic Materials	13.51
Technology	12.52
Consumer Non-Cyclical	6.36
Industrial	5.84
Utilities	4.65
Consumer Cyclical	3.06
Diversified	1.55
Exchange-Traded Funds	0.34
Short-Term and Other Net Assets	0.41
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/09
Security	Percentage of Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR (Taiwan)	3.90	%
Samsung Electronics Co. Ltd. GDR Reg S (South Korea)	3.52
Chunghwa Telecom Co. Ltd. ADR (Taiwan)	3.34
China Mobile Ltd. (China)	3.10
Petroleo Brasileiro SA Preferred SP ADR (Brazil)	2.55
Petroleo Brasileiro SA ADR (Brazil)	2.39
Teva Pharmaceutical Industries Ltd. (Israel)	2.26
POSCO ADR (South Korea)	2.12
OAO Gazprom SP ADR (Russia)	1.97
Sociedad Quimica y Minera de Chile SA Series B SP ADR (Chile)	1.67
TOTAL	26.82	%

FUND PERFORMANCE OVERVIEW 1

Shareholder Expenses (Unaudited)

iSHARES^® MSCI EMERGING MARKETS 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, 2008 to February 28, 2009.

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 (9/1/08)	Ending Account Value (2/28/09)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/08 to 2/28/09)
Actual	$1,000.00	$   541.70	0.73	%	$2.79
Hypothetical (5% return before expenses)	1,000.00	1,021.20	0.73		3.66

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

2 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2009

Security	Shares	Value
COMMON STOCKS – 89.94%
ARGENTINA – 0.10%
Petrobras Energia Participaciones SA SP ADR	3,339,752	$	16,765,555
			16,765,555
BRAZIL – 5.36%
Centrais Eletricas Brasileiras SA SP ADR	938,808		10,139,126
Companhia de Saneamento Basico do Estado de Sao Paulo ADR	696,592		13,876,113
Companhia Siderurgica Nacional SP ADRa	4,294,472		56,729,975
Companhia Vale do Rio Doce ADRa	17,678,232		227,872,410
CPFL Energia SA ADRa	353,600		13,861,120
Empresa Brasileira de Aeronautica SA ADR	4,354,584		47,073,053
Gafisa SA ADRa	1,469,451		12,137,665
Perdigao SA ADRa	263,843		6,416,662
Petroleo Brasileiro SA ADR	14,647,880		406,185,712
TAM SA SP ADRa	1,883,622		12,544,923
Tim Participacoes SA ADRa	168,175		2,383,040
Unibanco - Uniao de Bancos Brasileiros SA SP ADR	1,703,592		89,148,969
Vivo Participacoes SA ADRa	884,000		14,329,640
			912,698,408
CHILE – 3.42%
Banco Santander Chile SA ADRa	3,364,504		117,522,125
Empresa Nacional de Electricidad SA SP ADR	65,416		2,371,984
Enersis SA SP ADR	9,833,616		141,800,743
LAN Airlines SA SP ADRa	4,484,553		36,997,562
Sociedad Quimica y Minera de Chile SA Series B SP ADRa	9,854,832		284,016,258
			582,708,672
CHINA – 18.14%
Agile Property Holdings Ltd.	24,752,000		8,394,403
Air China Ltd. Class Ha	45,968,000		12,507,251

Security	Shares	Value
Aluminum Corp. of China Ltd. Class Ha	42,432,000	$	20,245,058
Angang New Steel Co. Ltd. Class Ha	24,753,320		20,971,168
Anhui Conch Cement Co. Ltd. Class Ha,b	3,536,000		14,955,809
Bank of China Ltd. Class H	251,056,000		70,251,263
Bank of Communications Co. Ltd. Class Ha	83,202,000		50,533,394
Beijing Capital International Airport Co. Ltd. Class Ha	28,292,000		10,579,995
Beijing Enterprises Holdings Ltd.a	7,072,000		27,768,559
Belle International Holdings Ltd.a	26,534,000		11,325,425
Chaoda Modern Agriculture (Holdings) Ltd.a	10,961,942		6,360,977
China Agri-Industries Holdings Ltd.b	24,752,000		11,267,013
China CITIC Bank Class H	24,752,000		8,968,926
China Coal Energy Co. Class Ha	22,984,000		14,255,895
China Communications Construction Co. Ltd. Class Ha	47,736,000		46,536,275
China Construction Bank Class Ha	341,616,000		174,003,948
China COSCO Holdings Co. Ltd. Class Ha	24,752,000		13,533,183
China Everbright Ltd.a	39,124,000		43,892,094
China High Speed Transmission Equipment Group Co. Ltd.a	3,536,000		4,614,414
China Huiyuan Juice Group Ltd.a	4,420,000		5,129,660
China Life Insurance Co. Ltd. Class Ha	90,168,000		253,473,598
China Mengniu Dairy Co. Ltd.a	12,376,000		15,480,174
China Merchants Bank Co. Ltd. Class Ha	28,288,000		41,949,219

SCHEDULE OF INVESTMENTS 3

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2009

Security	Shares	Value
China Merchants Holdings (International) Co. Ltd.a	14,144,000	$	23,455,085
China Mobile Ltd.a	60,112,000		527,101,059
China National Building Material Co. Ltd. Class Ha	17,680,000		20,518,640
China Overseas Land & Investment Ltd.a	51,444,960		68,594,164
China Petroleum & Chemical Corp. Class H	219,232,000		114,494,011
China Railway Construction Corp. Class Ha,b	16,796,000		20,575,636
China Railway Group Ltd. Class Ha,b	35,360,000		19,606,700
China Resources Enterprise Ltd.a	24,766,000		35,193,403
China Resources Land Ltd.a	53,040,000		57,794,169
China Resources Power Holdings Co. Ltd.a	17,680,000		33,285,794
China Shenhua Energy Co. Ltd. Class H	18,564,000		36,865,156
China Shipping Container Lines Co. Ltd. Class Ha	83,096,000		11,679,666
China Shipping Development Co. Ltd. Class Ha	31,842,000		25,129,020
China Telecom Corp. Ltd. Class Ha	49,504,000		16,916,479
China Travel International Investment Hong Kong Ltd.a	159,120,951		22,570,638
China Unicom (Hong Kong) Ltd.	42,432,000		38,465,610
China Yurun Food Group Ltd.a	3,536,000		4,185,803
CITIC Pacific Ltd.a	19,888,000		20,798,679
CNOOC Ltd.a	203,320,000		178,284,182
COSCO Pacific Ltd.a	10,608,000		7,797,083
Datang International Power Generation Co. Ltd. Class Ha	28,304,000		11,971,414
Denway Motors Ltd.a	67,184,000		20,185,782

Security	Shares	Value
Dongfang Electric Corp. Ltd. Class H	7,072,000	$	12,949,542
Dongfeng Motor Group Co. Ltd. Class H	28,288,000		10,505,544
Fosun International Ltd.	7,072,000		2,079,222
GOME Electrical Appliances Holdings Ltd.a	67,776,000		9,788,536
Guangdong Investment Ltd.	24,756,110		10,406,958
Guangshen Railway Co. Ltd. Class Ha	113,222,363		33,580,244
Guangzhou R&F Properties Co. Ltd.a	1,414,400		1,076,089
Harbin Power Equipment Co. Ltd. Class Ha	10,608,000		6,237,666
Hengan International Group Co. Ltd.	3,536,000		12,858,348
Huaneng Power International Inc. Class Ha	38,896,000		25,730,374
Industrial and Commercial Bank of China Ltd. Class Ha	461,448,000		189,222,894
Jiangsu Expressway Co. Ltd. Class H	10,614,000		7,103,465
Jiangxi Copper Co. Ltd. Class Ha	35,378,000		26,003,508
Lenovo Group Ltd.a	74,256,000		13,788,526
Li Ning Co. Ltd.a	7,072,000		8,845,814
Maanshan Iron & Steel Co. Ltd. Class Ha	49,504,000		14,682,226
Parkson Retail Group Ltd.a	4,420,000		3,602,161
PetroChina Co. Ltd. Class Ha	215,696,000		153,812,285
PICC Property and Casualty Co. Ltd. Class Ha,b	21,216,000		9,630,082
Ping An Insurance (Group) Co. of China Ltd. Class Ha	19,451,500		93,559,033
Shanghai Industrial Holdings Ltd.	7,076,000		16,241,705
Shimao Property Holdings Ltd.	10,608,000		5,512,675
Shui On Land Ltd.	26,520,000		6,121,394
Sinofert Holdings Ltd.a	58,070,000		26,582,999

4 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2009

Security	Shares	Value
Sino-Ocean Land Holdings Ltd.a	46,852,000	$	22,837,246
Sinopec Shanghai Petrochemical Co. Ltd. Class Ha	42,456,000		9,635,528
Tencent Holdings Ltd.a	8,840,000		51,239,603
Tingyi (Cayman Islands) Holding Corp.a	3,536,000		3,921,340
Yanzhou Coal Mining Co. Ltd. Class Ha	38,896,800		22,470,652
Zhejiang Expressway Co. Ltd. Class Ha	38,896,000		25,529,748
Zijin Mining Group Co. Ltd. Class Ha	95,472,000		51,337,637
			3,089,358,918
COLOMBIA – 0.31%
Bancolombia SA SP ADR	3,139,968		52,123,469
			52,123,469
CZECH REPUBLIC – 1.56%
Central European Media Enterprises Ltd. Class Ab	32,660		192,530
CEZ AS	6,152,993		186,516,263
Komercni Banka ASa	493,991		37,190,435
Unipetrol AS	8,125,838		41,714,181
			265,613,409
EGYPT – 0.48%
Orascom Construction Industries Co. GDRa	1,264,425		51,095,414
Orascom Telecom Holding SAE GDRa,c	1,798,198		30,569,366
			81,664,780
HUNGARY – 0.93%
Magyar Telekom Telecommunications PLC	4,398,784		10,193,167
MOL Hungarian Oil and Gas PLCa	1,037,816		39,129,073
OTP Bank Rta,b	4,604,472		31,307,188
Richter Gedeon Rta	744,328		77,269,527
			157,898,955

Security	Shares	Value
INDIA – 5.78%
HDFC Bank Ltd. ADRa	4,481,880	$	228,575,880
ICICI Bank Ltd. SP ADRa	10,178,376		126,822,565
Infosys Technologies Ltd. SP ADRa	8,414,373		203,627,827
Mahanagar Telephone Nigam Ltd. ADRa	6,872,700		19,243,560
Reliance Industries Ltd. GDRd	3,802,968		185,394,690
Satyam Computer Services Ltd. ADRa	7,257,844		9,435,197
Tata Communications Ltd. ADRa	9,614,384		152,484,130
Wipro Ltd. ADRa	10,220,808		58,156,398
			983,740,247
INDONESIA – 1.43%
PT Aneka Tambang Tbk	193,596,000		19,391,919
PT Astra Agro Lestari Tbk	4,420,000		4,740,985
PT Astra International Tbk	27,411,000		25,855,117
PT Bank Central Asia Tbk	159,190,000		31,226,753
PT Bank Danamon Indonesia Tbk	31,824,487		6,973,228
PT Bank Mandiri Tbk	79,560,000		11,555,459
PT Bank Rakyat Indonesia Tbk	71,049,061		22,091,632
PT Bumi Resources Tbk	209,218,500		13,447,266
PT Indofood Sukses Makmur Tbk	22,100,000		1,623,372
PT Indosat Tbk	1,158,560		406,173
PT International Nickel Indonesia Tbk	5,331,000		967,857
PT Perusahaan Gas Negara Tbk	167,962,500		26,638,459
PT Semen Gresik (Persero) Tbk	12,376,000		3,615,693
PT Telekomunikasi Indonesia Tbk	109,616,500		57,644,737
PT Unilever Indonesia Tbk	884,000		594,007
PT United Tractors Tbk	38,183,150		17,051,741
			243,824,398

SCHEDULE OF INVESTMENTS 5

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2009

Security	Shares	Value
ISRAEL – 4.54%
Africa Israel Investments Ltd.a	432,065	$	3,345,383
Bank Hapoalim Ltd.b	18,908,760		33,796,592
Bank Leumi le-Israela	25,079,080		44,643,642
Check Point Software Technologies Ltd.b	1,727,336		37,949,572
Discount Investment Corp. Ltd.	104,312		918,372
Elbit Systems Ltd.a	1,260,584		56,008,388
Israel Chemicals Ltd.a	10,728,224		84,101,327
Israel Corp. Ltd. (The)a	30,056		8,692,446
Israel Discount Bank Ltd. Class Aa	29,433,664		19,807,980
Koor Industries Ltd.b	560,669		6,338,597
Makhteshim-Agan Industries Ltd.a	5,169,632		17,457,390
Mizrahi Tefahot Bank Ltd.	9,474,712		42,507,994
NICE Systems Ltd.b	274,040		5,584,842
Teva Pharmaceutical Industries Ltd.	8,405,072		384,389,418
Teva Pharmaceutical Industries Ltd. SP ADR	618,800		27,586,104
			773,128,047
MALAYSIA – 0.40%
AMMB Holdings Bhd	9,752,175		6,523,370
Bumiputra-Commerce Holdings Bhd	2,034,000		3,785,462
Bursa Malaysia Bhd	2,930,800		3,952,529
Gamuda Bhd	12,166,000		6,497,284
Genting Bhd	3,359,400		3,135,138
IGB Corp. Bhd	4,577,800		1,691,594
IJM Corp. Bhd	3,701,200		3,693,713
IOI Corp. Bhd	5,265,000		5,254,349
MMC Corp. Bhd	3,896,000		1,481,688
Resorts World Bhd	19,905,500		11,865,450
Sime Darby Bhd	1,501,673		2,288,456
SP Setia Bhd	4,821,300		4,239,363
Tenaga Nasional Bhd	3,152,700		5,484,805
YTL Corp. Bhd	4,480,400		8,398,862
YTL Power International Bhd	306,160		160,202
			68,452,265

Security	Shares	Value
MEXICO – 4.81%
Alfa SAB de CV Series Aa	7,276,900	$	10,050,814
America Movil SAB de CV Series L	174,678,400		225,860,017
Cemex SAB de CV Series CPOb	83,681,003		45,610,437
Desarrolladora Homex SAB de CVb	1,800,300		3,798,487
Empresas ICA SAB de CVb	12,199,200		18,159,891
Fomento Economico Mexicano SAB de CV BD Units	32,000,800		74,669,913
Grupo Bimbo SAB de CV Series A	530,400		1,513,354
Grupo Carso SA de CV Series A1	1,592,841		3,087,214
Grupo Financiero Banorte SAB de CV Series O	18,752,056		20,006,470
Grupo Mexico SA de CV Series B	56,743,206		32,545,843
Grupo Modelo SAB de CV Series C	21,746,498		56,568,306
Grupo Televisa SA Series CPO	34,476,000		85,291,875
Industrias Penoles SAB de CV	1,768,088		15,738,066
Kimberly-Clark de Mexico SAB de CV Series Aa	12,562,500		39,317,294
Telefonos de Mexico SAB de CV Series L	75,847,200		53,109,108
Telmex Internacional SAB de CV Series L	80,992,800		31,202,407
Urbi Desarrollos Urbanos SA de CVa,b	6,056,600		5,148,521
Wal-Mart de Mexico SAB de CV Series Va	51,802,400		97,517,108
			819,195,125
PERU – 0.87%
Compania de Minas Buenaventura SA ADR	5,657,600		108,965,376
Southern Copper Corp.a	2,885,376		39,558,505
			148,523,881
PHILIPPINE ISLANDS – 1.58%
Ayala Corp.	7,710,113		30,341,088
Ayala Land Inc.	60,524,200		6,946,824

6 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2009

Security	Shares	Value
Bank of the Philippine Islands	49,374,840	$	34,913,547
Globe Telecom Inc.	813,280		13,085,157
Jollibee Foods Corp.e	63,848,900		53,000,214
Manila Electric Co.	18,848,202		34,768,153
Metropolitan Bank & Trust Co.	707,240		300,784
Philippine Long Distance Telephone Co.	1,013,090		44,954,701
SM Investments Corp.	3,395,851		13,363,464
SM Prime Holdings Inc.	244,440,820		36,573,436
			268,247,368
RUSSIA – 5.50%
Comstar United Telesystems GDR	397,840		1,074,168
JSC MMC Norilsk Nickel ADR	8,508,881		39,991,741
LUKOIL SP ADR	5,105,984		163,595,727
Mechel OAO ADRa	1,702,584		5,959,044
Mobile TeleSystems SP ADR	2,121,600		50,260,704
Novolipetsk Steel GDRc	857,480		8,454,753
OAO Gazprom SP ADR	25,858,768		335,905,395
OAO NOVATEK SP GDRc	850,408		19,984,588
OAO Rosneft Oil Co. GDRa	10,889,250		38,330,160
OAO Tatneft SP ADRc	594,048		21,148,109
PIK Group GDRb,c	2,231,216		1,160,232
Polyus Gold SP ADR	2,124,166		39,615,696
Rostelecom SP ADRa	1,265,891		60,914,675
Sberbank GDRa,c	693,202		42,259,258
Surgutneftegaz SP ADRa	6,020,040		34,434,629
Uralkali SP GDRc	1,637,168		10,477,875
Vimpel-Communications SP ADR	7,818,096		40,966,823
VTB Bank OJSC GDRa,c	7,867,600		8,418,332
Wimm-Bill-Dann Foods OJSC ADRa,b	447,837		13,269,410
			936,221,319
SOUTH AFRICA – 8.85%
Absa Group Ltd.	579,904		5,138,280
African Bank Investments Ltd.	18,337,707		38,429,860
African Rainbow Minerals Ltd.	440,232		4,952,582
Anglo Platinum Ltd.	746,831		28,690,296
AngloGold Ashanti Ltd.a	2,304,415		68,252,622
ArcelorMittal South Africa Ltd.	5,558,679		40,924,318
Aveng Ltd.	2,548,553		6,533,450

Security	Shares	Value
Barloworld Ltd.	3,589,174	$	10,787,711
Bidvest Group Ltd.	3,921,442		32,403,772
Exxaro Resources Ltd.	2,570,672		17,275,162
FirstRand Ltd.	46,155,862		55,371,411
Foschini Ltd.	8,666,792		35,790,585
Gold Fields Ltd.	7,310,680		76,058,147
Harmony Gold Mining Co. Ltd.a,b	3,990,376		48,764,862
Impala Platinum Holdings Ltd.	6,366,568		75,166,638
Imperial Holdings Ltd.	4,922,112		21,708,354
Investec Ltd.	6,002,837		18,048,253
Kumba Iron Ore Ltd.	657,696		10,541,994
Liberty Holdings Ltd.	1,265,254		8,060,491
Massmart Holdings Ltd.	747,864		5,390,547
MTN Group Ltd.	16,155,106		138,318,395
Murray & Roberts Holdings Ltd.	3,337,984		12,315,764
Naspers Ltd. Class N	5,684,120		87,147,641
Nedbank Group Ltd.	5,053,279		37,857,459
Netcare Ltd.b	27,978,610		23,955,005
Northam Platinum Ltd.	452,789		984,059
Pick’n Pay Stores Ltd.	8,004,236		24,703,202
Pretoria Portland Cement Co. Ltd.	5,955,110		17,608,320
Reinet Investments SCAb	1		1
Remgro Ltd.	1,446,397		9,547,127
Reunert Ltd.	2,497,014		9,257,684
Sanlam Ltd.	28,233,631		42,949,861
Sappi Ltd.	1,606,123		3,038,114
Sasol Ltd.	7,115,117		178,506,594
Shoprite Holdings Ltd.	18,063,656		89,702,341
Standard Bank Group Ltd.	14,027,324		90,773,663
Steinhoff International Holdings Ltd.a	2,972,008		3,319,820
Telkom South Africa Ltd.	2,141,199		21,118,880
Tiger Brands Ltd.	3,009,136		37,896,929
Truworths International Ltd.	14,727,531		45,658,352
Woolworths Holdings Ltd.	19,915,247		23,594,150
			1,506,542,696
SOUTH KOREA – 11.12%
Daelim Industrial Co. Ltd.	199,100		5,245,282
Doosan Heavy Industries & Construction Co. Ltd.b	231,790		9,038,828

SCHEDULE OF INVESTMENTS 7

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2009

Security	Shares	Value
Hyundai Development Co.	212,800	$	3,968,751
Hyundai Engineering & Construction Co. Inc.	325,410		10,928,344
Hyundai Heavy Industries Co. Ltd.	375,500		43,463,482
KB Financial Group Inc. SP ADRa,b	10,208,432		192,122,690
Korea Electric Power Corp. SP ADRb	23,625,784		180,264,732
KT Corp. SP ADRa,b	13,421,072		161,321,285
LG Display Co. Ltd. ADRa,b	11,606,920		96,685,644
NHN Corp.b	187,575		16,268,324
POSCO ADRa	7,199,296		361,188,680
Samsung Electronics Co. Ltd. GDRa,c,d	3,933,800		599,904,500
Samsung Engineering Co. Ltd.	187,990		5,504,239
Samsung Heavy Industries Co. Ltd.	2,036,070		28,811,685
Shinhan Financial Group Co. Ltd. ADRb	529,152		15,689,357
SK Telecom Co. Ltd. ADRa	12,220,416		163,631,370
			1,894,037,193
TAIWAN – 12.08%
Asia Cement Corp.	3,234,060		2,416,414
AU Optronics Corp. SP ADRa	23,857,392		171,534,649
Catcher Technology Co. Ltd.	3,521,100		5,977,448
Cheng Shin Rubber Industry Co. Ltd.	3,508,650		2,932,957
Chunghwa Telecom Co. Ltd. ADRa	37,046,660		568,666,231
CMC Magnetics Corp.b	8,136,000		1,197,173
Compal Communications Inc.	2,598,750		1,696,220
Epistar Corp.	2,314,345		2,895,292
Evergreen Marine Corp. Ltd.	10,170,000		3,872,178
Far Eastern Textile Ltd.	5,186,700		3,103,274
Foxconn Technology Co. Ltd.	1,174,800		2,724,154
HannStar Display Corp.	11,767,963		1,391,343
Hon Hai Precision Industry Co. Ltd.	5,847,750		11,668,213
HTC Corp.	4,063,800		44,789,459
Macronix International Co. Ltd.	22,176,448		7,205,608
MediaTek Inc.	3,176,450		27,643,840

Security	Shares	Value
MiTAC International Corp.	7,403,728	$	2,712,959
Siliconware Precision Industries Co. SP ADRa	58,914,352		260,990,579
Synnex Technology International Corp.	4,474,800		5,149,706
Taiwan Cement Corp.	7,190,190		5,392,925
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADRa	88,092,368		664,216,455
Tatung Co. Ltd.b	14,763,000		2,239,924
U-Ming Marine Transport Corp.	2,034,000		2,617,360
Uni-President Enterprises Co.	6,407,100		4,787,235
United Microelectronics Corp. SP ADRa	130,382,928		230,777,783
Yang Ming Marine Transport Corp.	16,238,978		4,169,979
Yuanta Financial Holding Co. Ltd.	38,829,000		14,172,588
			2,056,941,946
THAILAND – 1.67%
Bangkok Bank PCL	7,972,800		16,417,181
Banpu PCL	2,511,000		14,574,627
IRPC PCL	128,003,200		6,615,975
Kasikornbank PCL	16,172,200		19,891,180
Krung Thai Bank PCL	55,515,200		6,352,485
PTT Aromatics & Refining PCL	27,765,286		7,674,208
PTT Chemical PCL	10,675,968		8,704,839
PTT Exploration and Production PCL	27,103,400		66,672,266
PTT PCL	15,752,800		67,922,521
Ratchaburi Electricity Generating Holding PCL	57,479,900		60,371,371
Siam Cement PCL	2,544,600		6,962,836
Thai Oil PCL NVDR	2,475,200		1,641,924
TMB Bank PCL NVDRb	15,558,400		210,713
			284,012,126
TURKEY – 1.01%
Akbank TASa	8,172,129		18,827,909
Anadolu Efes Biracilik ve Malt Sanayii AS	373,048		2,367,932
Arcelik ASa	3,521,856		3,601,651
Asya Katilim Bankasi ASa,b	12,577,552		7,392,255

8 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2009

Security	Shares	Value
BIM Birlesik Magazalar AS	137,904	$	2,715,204
Enka Insaat ve Sanayi ASa	176,800		644,251
Eregli Demir ve Celik Fabrikalari TASa	7,079,937		14,314,251
Migros Turk TAS	1		5
Petkim Petrokimya Holding ASa,b	4,538,456		10,669,619
Tupras-Turkiye Petrol Rafinerileri ASa	1,369,372		12,474,810
Turk Sise ve Cam Fabrikalari ASa,b	22,554,376		12,593,175
Turkcell Iletisim Hizmetleri ASa	1,615,657		8,023,922
Turkiye Garanti Bankasi ASa,b	26,507,624		32,249,423
Turkiye Is Bankasi ASa	5,304,000		10,224,879
Turkiye Vakiflar Bankasi TAO	28,042,248		17,799,893
Yapi ve Kredi Bankasi ASa,b	18,208,689		17,658,078
			171,557,257
TOTAL COMMON STOCKS (Cost: $28,263,488,854)			15,313,256,034
PREFERRED STOCKS – 9.31%
BRAZIL – 9.31%
Aracruz Celulose SA SP ADRa	1,630,096		11,622,585
Banco Bradesco SA SP ADR	28,454,192		248,120,554
Banco Itau Holding Financiera SA ADRa	28,514,304		261,761,311
Brasil Telecom Participacoes SA ADR	987,918		30,981,108
Centrais Eletricas Brasileiras SA ADR	224,536		2,240,869
Companhia Brasileira de Distribuicao Grupo Pao de Acucar SP ADRa	1,911,208		46,308,570
Companhia de Bebidas das Americas ADRa	3,019,744		122,178,842
Companhia Energetica de Minas Gerais SP ADR	2,963,206		40,477,394
Companhia Paranaense de Energia SP ADRa	530,400		4,874,376

Security	Shares	Value
Companhia Vale do Rio Doce SP ADRa	24,721,944	$	275,649,676
Gerdau SA SP ADR	7,639,610		39,955,160
Net Servicos de Comunicacao SA ADRa	2,652,084		16,522,483
Petroleo Brasileiro SA SP ADRa	19,370,208		433,505,255
Tele Norte Leste Participacoes SA ADR	3,324,072		40,287,753
Votorantim Celulose e Papel SA SP ADRb	1,983,696		9,482,067
			1,583,968,003
TOTAL PREFERRED STOCKS (Cost: $2,777,456,415)			1,583,968,003
EXCHANGE-TRADED FUNDS – 0.34%
iShares MSCI Malaysia Index Funda,e	984,557		6,872,208
iShares MSCI South Korea Index Funda,e	1,154,371		25,165,288
iShares MSCI Taiwan Index Funda,e	3,848,936		26,249,743
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $114,254,169)			58,287,239

SCHEDULE OF INVESTMENTS 9

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2009

Security	Shares	Value
SHORT-TERM INVESTMENTS – 10.49%
MONEY MARKET FUNDS – 10.49%
Barclays Global Investors Funds Institutional Money Market Fund, SL Agency Shares 0.83%e,f,g	1,514,643,911	$	1,514,643,911
Barclays Global Investors Funds Prime Money Market Fund, SL Agency Shares 0.53%e,f,g	253,204,075		253,204,075
Barclays Global Investors Funds Treasury Money Market Fund, SL Agency Shares 0.14%e,f	18,450,911		18,450,911
			1,786,298,897
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,786,298,897)			1,786,298,897
TOTAL INVESTMENTS IN SECURITIES – 110.08%
(Cost: $32,941,498,335)			18,741,810,173
Other Assets, Less Liabilities – (10.08)%			(1,715,861,028	)
NET ASSETS – 100.00%		$	17,025,949,145

ADR - American Depositary Receipts

GDR - Global Depositary Receipts

NVDR - Non-Voting Depositary Receipts

SP ADR - Sponsored American Depositary Receipts

SP GDR - Sponsored Global Depositary Receipts

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

^b Non-income earning security.

^c This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^d This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^e Affiliated issuer. See Note 2.

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

^g All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

10 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2009

	iShares MSCI Emerging Markets Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	30,973,082,536
Affiliated issuers (Note 2)		1,968,415,799
Total cost of investments	$	32,941,498,335
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	16,844,223,823
Affiliated issuers (Note 2)		1,897,586,350
Total fair value of investments		18,741,810,173
Foreign currencies, at valueb		11,964,119
Receivables:
Investment securities sold		8,328,286
Due from custodian (Note 4)		3,413,150
Dividends and interest		42,070,698
Total Assets		18,807,586,426
LIABILITIES
Payables:
Investment securities purchased		3,413,150
Securities related to in-kind transactions (Note 4)		54,126
Collateral for securities on loan (Note 5)		1,767,847,986
Investment advisory fees (Note 2)		10,322,019
Total Liabilities		1,781,637,281
NET ASSETS	$	17,025,949,145
Net assets consist of:
Paid-in capital	$	32,444,575,210
Undistributed net investment income		20,184,029
Accumulated net realized loss		(1,238,666,857	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(14,200,143,237	)
NET ASSETS	$	17,025,949,145
Shares outstandingc		795,600,000
Net asset value per share	$	21.40

^a Securities on loan with a market value of $1,675,699,832. See Note 5.

^b Cost of foreign currencies: $11,950,324.

^c $0.001 par value, number of shares authorized: 1,500,000,000.

See notes to financial statements.

FINANCIAL STATEMENTS 11

Statement of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2009

	iShares MSCI Emerging Markets Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	167,382,133
Dividends from affiliated issuers (Note 2)		3,860,948
Interest from affiliated issuers (Note 2)		63,604
Securities lending income from affiliated issuers (Note 2)		10,069,278
Total investment income		181,375,963
EXPENSES
Investment advisory fees (Note 2)		63,747,931
Foreign taxes (Note 1)		66,396
Total expenses		63,814,327
Less investment advisory fees waived (Note 2)		(211,386	)
Net expenses		63,602,941
Net investment income		117,773,022
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized loss from:
Investments in unaffiliated issuers		(678,629,482	)
Investments in affiliated issuers (Note 2)		(12,322,864	)
In-kind redemptions		(76,859,631	)
Foreign currency transactions		(6,130,703	)
Net realized loss		(773,942,680	)
Net change in unrealized appreciation (depreciation) on:
Investments		(10,868,882,795	)
Translation of assets and liabilities in foreign currencies		380,396
Net change in unrealized appreciation (depreciation)		(10,868,502,399	)
Net realized and unrealized loss		(11,642,445,079	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(11,524,672,057	)

^a Net of foreign withholding tax of $24,818,717.

See notes to financial statements.

12 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Emerging Markets Index Fund
	Six months ended February 28, 2009 (Unaudited)			Year ended August 31, 2008
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	117,773,022		$	564,087,379
Net realized gain (loss)		(773,942,680	)		4,192,101,297
Net change in unrealized appreciation (depreciation)		(10,868,502,399	)		(7,412,430,109	)
Net decrease in net assets resulting from operations		(11,524,672,057	)		(2,656,241,433	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(265,478,877	)		(602,951,708	)
Total distributions to shareholders		(265,478,877	)		(602,951,708	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		13,319,942,990			19,099,692,233
Cost of shares redeemed		(4,806,599,354	)		(13,736,113,781	)
Net increase in net assets from capital share transactions		8,513,343,636			5,363,578,452
INCREASE (DECREASE) IN NET ASSETS		(3,276,807,298	)		2,104,385,311
NET ASSETS
Beginning of period		20,302,756,443			18,198,371,132
End of period	$	17,025,949,145		$	20,302,756,443
Undistributed net investment income included in net assets at end of period	$	20,184,029		$	167,889,884
SHARES ISSUED AND REDEEMED
Shares sold		493,200,000			393,300,000
Shares redeemed		(204,300,000	)		(292,950,000	)
Net increase in shares outstanding		288,900,000			100,350,000

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. 28, 2009 (Unaudited)			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a			Year ended Aug. 31, 2005a			Year ended Aug. 31, 2004a
Net asset value, beginning of period	$	40.07		$	44.78		$	32.48		$	25.97		$	17.99		$	15.04
Income from investment operations:
Net investment incomeb		0.17			1.10			0.63			0.55			0.55			0.38
Net realized and unrealized gain (loss)c		(18.50	)		(4.64	)		12.19			6.29			8.23			2.66
Total from investment operations		(18.33	)		(3.54	)		12.82			6.84			8.78			3.04
Less distributions from:
Net investment income		(0.34	)		(1.17	)		(0.52	)		(0.33	)		(0.80	)		(0.09	)
Total distributions		(0.34	)		(1.17	)		(0.52	)		(0.33	)		(0.80	)		(0.09	)
Net asset value, end of period	$	21.40		$	40.07		$	44.78		$	32.48		$	25.97		$	17.99
Total return		(45.83	)%d		(8.36	)%		39.86	%		26.44	%		46.17	%		20.21	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	17,025,949		$	20,302,756		$	18,198,371		$	11,969,380		$	7,000,858		$	1,958,596
Ratio of expenses to average net assets prior to waived feese		0.74	%		0.72	%		0.74	%		0.77	%		0.78	%		0.77	%
Ratio of expenses to average net assets after waived feese		0.73	%		0.72	%		0.74	%		0.77	%		0.77	%		0.76	%
Ratio of expenses to average net assets after waived fees and exclusive of foreign taxese		0.73	%		0.72	%		0.74	%		0.75	%		0.74	%		0.74	%
Ratio of net investment income to average net assetse		1.36	%		2.32	%		1.63	%		1.77	%		2.40	%		2.10	%
Portfolio turnover ratef		2	%		11	%		5	%		12	%		9	%		8	%

^a Per share amounts were adjusted to reflect a three-for-one stock split effective July 24, 2008.

^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 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

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

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 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.

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”). 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 valued pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”). Effective September 1, 2008, the Fund adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to

NOTES TO FINANCIAL STATEMENTS 15

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:

• Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”);

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”);

• Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”).

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Fund. The Fund considers observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Fund’s perceived risk of that instrument.

Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Fund does not adjust the quoted price for such instruments, even in situations where the Fund holds a large position and a sale could reasonably impact the quoted price.

Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 Prices. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 Prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Fund uses one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

The inputs used by the Fund in estimating the value of Level 3 Prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the

16 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

amount of such discount estimated by the Fund in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations.

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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

As of February 28, 2009, the value of each of the Fund’s investments was classified as a Level 1 Price.

The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the six months ended February 28, 2009:

Balance at Beginning of Period		(Amortized Premiums) Accreted Discounts		Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Net Transfers in or out			Balance at End of Period		Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at End of Period
$	4,060,613	$	–	$	(2,947,940	)	$	(26,908	)	$	(1,085,765	)	$	–	$	–

SECURITY TRANSACTIONS AND INCOME RECOGNITION

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

FOREIGN CURRENCY TRANSLATION

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

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

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

NOTES TO FINANCIAL STATEMENTS 17

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 28, 2009, if any, are reflected in the Fund’s Statement of Assets and Liabilities.

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 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 28, 2009.

As of August 31, 2008, 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, $29,973,301 and $13,844,901 expiring in 2012, 2013, 2014, 2015 and 2016, 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 28, 2009, the cost of investments for federal income tax purposes was $33,200,001,990. Net unrealized depreciation was $14,458,191,817, of which $14,458,191,817 represented gross unrealized depreciation on securities and $0 represented gross unrealized appreciation on securities.

Management has reviewed the tax positions as of February 28, 2009, inclusive of the prior three open tax return years, and has determined that no provision for income tax is required in 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,

18 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 iShares MSCI All Country Asia ex Japan and iShares MSCI BRIC Index Funds 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

Effective August 11, 2008, BGFA has contractually agreed to waive a portion of its advisory fees for the Fund through December 31, 2009 in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares Funds. Prior to August 11, 2008, the advisory fee waiver was voluntary.

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 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 28, 2009, BGI earned securities lending agent fees of $10,069,278.

The Fund may invest in 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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.

NOTES TO FINANCIAL STATEMENTS 19

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 Funds that invest in securities in the Fund’s underlying index. As of February 28, 2009, the Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.

For the six months ended February 28, 2009, the Fund had direct investment (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 Loss
iShares MSCI Malaysia
Index Fund	1,209	8	232	985	$	6,872,208	$	174,797	$	(846,836	)
iShares MSCI South Korea
Index Fund	750	646	242	1,154		25,165,288		218,340		(473,000	)
iShares MSCI Taiwan
Index Fund	3,464	2,590	2,205	3,849		26,249,743		2,970,339		(10,785,501	)
Jollibee Foods Corp.	40,673	39,565	16,389	63,849		53,000,214		497,472		(217,527	)
					$	111,287,453	$	3,860,948	$	(12,322,864	)

Certain directors and officers of the Company are also officers of BGI and/or BGFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2009, aggregated $720,351,035 and $448,187,043, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 28, 2009, aggregated $12,768,336,380 and $4,610,497,468, respectively.

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 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.

20 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 Statement of Assets and Liabilities.

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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.

As of February 28, 2009, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of February 28, 2009 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. SUBSEQUENT EVENT

On April 9, 2009, Barclays Global Investors UK Holdings Limited (“Barclays”), the parent company of BGI and BGFA, entered into an agreement to sell its interest in BGFA and certain affiliated companies to Blue Sparkle, L.P., a Cayman Islands limited partnership (the “Transaction”). Blue Sparkle, L.P. is an investment vehicle for private equity funds affiliated with CVC Capital Partners Group SICAV-FIS S.A., a private equity and investment advisory firm. The Transaction is subject to certain regulatory approvals, as well as other conditions to closing.

Under the 1940 Act, completion of the Transaction will cause the automatic termination of the Fund’s current investment advisory agreement with BGFA. In order for the management of the Fund to continue uninterrupted, the Board will be asked to approve a new investment advisory agreement with BGFA. If approved by the Board, the new investment advisory agreement will be submitted to the Fund’s shareholders for their approval.

NOTES TO FINANCIAL STATEMENTS 21

Notes:

22 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 23

Notes:

24 2009 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

  Capped (FIO)

iShares FTSE NAREIT Mortgage Plus

  Capped (REM)

iShares FTSE NAREIT Real Estate 50 (FTY)

iShares FTSE NAREIT Residential Plus

  Capped (REZ)

iShares FTSE NAREIT Retail Capped (RTL)

iShares Global Index Funds

iShares S&P Global 100 (IOO)

iShares S&P Global Clean Energy (ICLN)

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 Nuclear Energy (NUCL)

iShares S&P Global Technology Sector (IXN)

iShares S&P Global Telecommunications Sector (IXP)

iShares S&P Global Timber& Forestry (WOOD)

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 China (HK Listed) (FCHI)

iShares FTSE/Xinhua China 25 (FXI)

iShares MSCI Australia (EWA)

iShares MSCI Austria Investable Market (EWO)

iShares MSCI Belgium Investable Market (EWK)

iShares MSCI Brazil (EWZ)

iShares MSCI Canada (EWC)

iShares MSCI Chile Investable Market (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 Investable Market (EWW)

iShares MSCI Netherlands Investable

  Market (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 Barclays Aggregate (AGG)

iShares Barclays MBS (MBB)

iShares Barclays Short Treasury (SHV)

iShares Barclays 1-3 Year Treasury (SHY)

iShares Barclays 3-7 Year Treasury (IEI)

iShares Barclays 7-10 Year Treasury (IEF)

iShares Barclays 10-20 Year Treasury (TLH)

iShares Barclays 20+ Year Treasury (TLT)

iShares Barclays TIPS (TIP)

iShares Barclays Agency (AGZ)

iShares Barclays Credit (CFT)

iShares Barclays 1-3 Year Credit (CSJ)

iShares Barclays Intermediate Credit (CIU)

iShares iBoxx $ Investment Grade

  Corporate (LQD)

iShares iBoxx $ High Yield Corporate (HYG)

iShares Barclays Government/Credit (GBF)

iShares Barclays Intermediate Government/

  Credit (GVI)

iShares S&P National Municipal (MUB)

iShares S&P Short Term National

  Municipal (SUB)

iShares S&P California Municipal (CMF)

iShares S&P New York Municipal (NYF)

iShares JPMorgan USD Emerging Markets (EMB)

iShares S&P/Citigroup International

  Treasury (IGOV)

iShares S&P/Citigroup 1-3 Year International Treasury (ISHG)

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 FAMILY OF FUNDS 25

The iShares^® Family of Funds (Continued)

iShares International Index Funds

iShares FTSE Developed Small Cap ex-North America (IFSM)

iShares FTSE EPRA/NAREIT Developed

  Asia (IFAS)

iShares FTSE EPRA/NAREIT Developed

  Europe (IFEU)

iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. (IFGL)

iShares FTSE EPRA/NAREIT North

  America (IFNA)

iShares MSCI ACWI (ACWI)

iShares MSCI ACWI ex US (ACWX)

iShares MSCI All Country Asia ex Japan (AAXJ)

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 Developed ex-U.S. Property (WPS)

iShares S&P Europe 350 (IEV)

iShares S&P Latin America 40 (ILF)

iShares Morningstar Index Funds

iShares Morningstar Large Core (JKD)

iShares Morningstar Large Growth (JKE)

iShares Morningstar Large Value (JKF)

iShares Morningstar Mid Core (JKG)

iShares Morningstar Mid Growth (JKH)

iShares Morningstar Mid Value (JKI)

iShares Morningstar Small Core (JKJ)

iShares Morningstar Small Growth (JKK)

iShares Morningstar Small Value (JKL)

iShares NYSE Index Funds

iShares NYSE Composite (NYC)

iShares NYSE 100 (NY)

iShares S&P Allocation Funds

iShares S&P Conservative (AOK)

iShares S&P Moderate (AOM)

iShares S&P Growth (AOR)

iShares S&P Aggressive (AOA)

iShares S&P Target Date Index Funds

iShares S&P Target Date Retirement

  Income (TGR)

iShares S&P Target Date 2010 (TZD)

iShares S&P Target Date 2015 (TZE)

iShares S&P Target Date 2020 (TZG)

iShares S&P Target Date 2025 (TZI)

iShares S&P Target Date 2030 (TZL)

iShares S&P Target Date 2035 (TZO)

iShares S&P Target Date 2040 (TZV)

iShares^® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not 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, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or 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 service mark 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 2009 Semi-Annual Report.

iS-0569-0409

26 2009 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

For more information: WWW.iSHARES.COM 1-800-iShares (1-800-474-2737) The iShares Funds are distributed by SF1 Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BUFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global Investors N.A. BGI), neither of which is affiliated with SF1. The iShares Funds are not sponsored. endorsed issued, sold or promoted by MSGI Inc., no does this company make any representation regarding the advisability of investing in he Shares Funds. Neither SE nor BGI, nor any of heir affiliates, are affiliated with the company listed above. ©2009 Barclays Global Investors. All rights reserved, iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. Investing involves risk, including possible loss of principal. A description of the policies that the Fund uses to determine how to vote proxies relating to portfolio securities and information about how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, upon request, by calling toll-free 1-SDD-474-2737; on the Fund’s website at iww.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at vvww.sec.gov. The Fund files its complete schedule of portfolio holdings within the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1 -8DD-SEC-0330. The Fund also discloses its complete schedule of portfolio holdings on a monthly basis on the Fund’s website. This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. iShares® LET’S BUILD A BETTER INVESTMENT® WORLD BARCLAYS GLOBAL INVESTORS BGI-SAR-85-0209

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. Investments.

(a) Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.

(b) Not applicable.

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 22, 2009

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 22, 2009

By:	/s/ Jack Gee
	Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
	Date: April 22, 2009