N-CSRS

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)

The Corporation Trust Company

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, 2010

Date of reporting period: February 28, 2010

Item 1. Reports to Stockholders.

2010 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES ® MSCI SERIES

FEBRUARY 28, 2010

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iSharesMSCI Austria Investable Market Index Fund | EWO | NYSEArca

iShares MSCI Belgium Investable Market Index Fund | EWK | NYSE Area

iShares MSCI Emerging Markets Eastern Europe Index Fund | ESR | NYSE Area

iShares MSCI EMU Index Fund | EZU | NYSE Area

iShares MSCI France Index Fund | EWQ | NYSE Arca

iShares MSCI Germany Index Fund | EWG | NYSE Arca

iShares MSCI Italy Index Fund | EWI | NYSE Area

iShares MSCI Netherlands Investable Market Index Fund | EWN | NYSE Arca

iShares MSCI Spain Index Fund | EWP | NYSE Area

iShares MSCI Sweden Index Fund | EWD | NYSE Area

iShares MSCI Switzerland Index Fund | EWL | NYSE Area

iShares MSCI United Kingdom Index Fund | EWU | NYSE Area

Table of Contents

Fund Performance Overviews	1
Shareholder Expenses	13
Schedules of Investments	15
iShares MSCI Austria Investable Market Index Fund	15
iShares MSCI Belgium Investable Market Index Fund	17
iShares MSCI Emerging Markets Eastern Europe Index Fund	19
iShares MSCI EMU Index Fund	21
iShares MSCI France Index Fund	26
iShares MSCI Germany Index Fund	29
iShares MSCI Italy Index Fund	31
iShares MSCI Netherlands Investable Market Index Fund	33
iShares MSCI Spain Index Fund	35
iShares MSCI Sweden Index Fund	37
iShares MSCI Switzerland Index Fund	39
iShares MSCI United Kingdom Index Fund	41
Financial Statements	44
Financial Highlights	56
Notes to Financial Statements	68
Shareholder Meeting Results	77
Board Review and Approval of Investment Advisory Contract	79
iShares Family of Funds	84

Fund Performance Overview

iSHARES^® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was (6.04)%, while the total return for the Index was (6.38)%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
88.43%	90.04%	88.92%	(2.56)%	(2.70)%	(3.20)%	11.34%	11.29%	11.01%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
88.43%	90.04%	88.92%	(12.15)%	(12.80)%	(15.00)%	192.86%	191.41%	184.24%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	37.36	%
Industrial	17.70
Energy	12.72
Basic Materials	10.09
Communications	8.34
Utilities	5.13
Consumer Cyclical	3.96
Consumer Non-Cyclical	3.93
Short-Term and Other Net Assets	0.77
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Erste Group Bank AG	14.31	%
OMV AG	11.47
voestalpine AG	8.43
Telekom Austria AG	8.34
Oesterreichische Elektrizitaetswirtschafts AG Class A	4.81
Raiffeisen International Bank Holding AG	4.53
Andritz AG	4.31
Wienerberger AG	4.22
Vienna Insurance Group AG	4.14
IMMOEAST AG	3.85
TOTAL	68.41	%

FUND PERFORMANCE OVERVIEWS 1

Fund Performance Overview

iSHARES^® MSCI BELGIUM INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 4.43%, while the total return for the Index was 5.38%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
68.98%	70.21%	71.31%	(4.71)%	(4.64)%	(5.34)%	3.45%	3.26%	1.81%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
68.98%	70.21%	71.31%	(21.43)%	(21.14)%	(23.98)%	40.41%	37.79%	19.69%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Consumer Non-Cyclical	42.44	%
Financial	21.44
Basic Materials	9.85
Diversified	9.25
Communications	8.86
Industrial	5.04
Consumer Cyclical	2.09
Technology	0.23
Short-Term and Other Net Assets	0.80
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Anheuser-Busch InBev NV	23.98	%
Fortis	6.98
KBC Groep NV	6.24
Delhaize Group SA	6.19
Groupe Bruxelles Lambert SA	5.84
Belgacom SA	4.91
Solvay SA	4.55
UCB SA	4.49
Colruyt SA	4.15
Umicore	3.44
TOTAL	70.77	%

2 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND

Performance as of February 28, 2010

The iShares MSCI Emerging Markets Eastern Europe 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 Eastern Europe Index^SM (the “Index”). The Index is a free-float adjusted market capitalization index designed to measure equity market performance of the following four emerging market countries: the Czech Republic, Hungary, Poland and Russia. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the period from September 30, 2009 (inception date of the Fund) through February 28, 2010, the total return for the Fund was 5.48%, while the total return for the Index was 5.50%.

Cumulative Total Return
Inception to 2/28/10
NAV	MARKET	INDEX
5.48%	5.56%	5.50%

“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 9/30/09.

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 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 (10/2/09), 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Energy	45.96	%
Financial	22.14
Basic Materials	12.82
Communications	11.78
Utilities	3.56
Consumer Non-Cyclical	2.41
Industrial	0.75
Technology	0.47
Short-Term and Other Net Assets	0.11
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
OAO Gazprom SP ADR (Russia)	20.19	%
LUKOIL SP ADR (Russia)	9.69
Sberbank GDR (Russia)	8.65
MMC Norilsk Nickel SP ADR (Russia)	4.88
Mobile TeleSystems SP ADR (Russia)	4.41
OJSC Rosneft Oil Co. SP GDR (Russia)	4.23
CEZ AS (Czech Republic)	3.07
Powszechna Kasa Oszczednosci Bank Polski SA (Poland)	3.02
OAO Tatneft SP ADR (Russia)	2.99
OTP Bank Nyrt (Hungary)	2.87
TOTAL	64.00	%

FUND PERFORMANCE OVERVIEWS 3

Fund Performance Overview

iSHARES^® MSCI EMU INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was (4.83)%, while the total return for the Index was (4.72)%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
54.06%	55.18%	54.12%	1.03%	0.98%	1.20%	0.18%	0.15%	0.45%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
54.06%	55.18%	54.12%	5.27%	4.99%	6.14%	1.79%	1.43%	4.36%

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.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	24.84	%
Consumer Non-Cyclical	15.03
Communications	12.76
Industrial	12.02
Utilities	9.71
Basic Materials	8.00
Energy	7.88
Consumer Cyclical	5.57
Technology	2.66
Diversified	1.32
Short-Term and Other Net Assets	0.21
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Total SA (France)	3.87	%
Banco Santander SA (Spain)	3.50
Telefonica SA (Spain)	3.25
Sanofi-Aventis (France)	2.53
Siemens AG Registered (Germany)	2.32
BNP Paribas (France)	2.25
E.ON AG (Germany)	2.22
Eni SpA (Italy)	1.93
Bayer AG (Germany)	1.76
Allianz SE Registered (Germany)	1.73
TOTAL	25.36	%

4 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI FRANCE INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was (2.22)%, while the total return for the Index was (1.98)%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
53.55%	54.83%	53.75%	1.65%	1.57%	1.87%	0.57%	0.34%	0.80%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
53.55%	54.83%	53.75%	8.54%	8.11%	9.71%	5.89%	3.44%	8.33%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Consumer Non-Cyclical	20.44	%
Financial	18.76
Industrial	14.04
Energy	12.54
Communications	10.61
Utilities	7.44
Basic Materials	6.26
Consumer Cyclical	5.11
Diversified	2.59
Technology	2.05
Short-Term and Other Net Assets	0.16
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Total SA	11.48	%
Sanofi-Aventis	7.51
BNP Paribas	6.68
GDF Suez	4.45
France Telecom SA	4.24
Societe Generale	3.37
AXA	3.33
ArcelorMittal	3.19
Danone SA	3.13
Vivendi SA	3.01
TOTAL	50.39	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI GERMANY INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was (3.49)%, while the total return for the Index was (3.46)%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
53.30%	53.50%	53.59%	3.95%	3.91%	4.10%	(0.42)%	(0.55)%	(0.34)%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
53.30%	53.50%	53.59%	21.35%	21.15%	22.25%	(4.09)%	(5.39)%	(3.35)%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	19.78	%
Basic Materials	18.03
Industrial	16.72
Utilities	14.12
Consumer Cyclical	11.56
Consumer Non-Cyclical	8.37
Technology	5.63
Communications	5.08
Diversified	0.39
Energy	0.16
Short-Term and Other Net Assets	0.16
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Siemens AG Registered	9.62	%
E.ON AG	9.36
Bayer AG	7.40
Allianz SE Registered	7.11
BASF SE	6.96
Daimler AG Registered	5.05
SAP AG	4.82
Deutsche Bank AG Registered	4.78
Deutsche Telekom AG Registered	4.77
RWE AG	4.55
TOTAL	64.42	%

6 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI ITALY INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was (9.70)%, while the total return for the Index was (9.85)%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
46.55%	48.30%	47.33%	(4.71)%	(4.74)%	(4.91)%	(0.83)%	(0.89)%	(0.99)%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
46.55%	48.30%	47.33%	(21.42)%	(21.55)%	(22.26)%	(8.03)%	(8.53)%	(9.46)%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	39.12	%
Energy	21.32
Utilities	15.73
Communications	6.92
Industrial	6.38
Consumer Non-Cyclical	6.22
Consumer Cyclical	3.76
Diversified	0.46
Short-Term and Other Net Assets	0.09
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Eni SpA	18.43	%
UniCredit SpA	12.36
Enel SpA	10.15
Intesa Sanpaolo SpA	8.13
Assicurazioni Generali SpA	4.76
Terna SpA	4.34
Telecom Italia SpA	3.47
Tenaris SA	3.17
Unione di Banche Italiane ScpA	3.17
Saipem SpA	2.89
TOTAL	70.87	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 3.39%, while the total return for the Index was 3.55%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
64.41%	66.21%	65.87%	2.65%	2.62%	3.18%	0.36%	0.22%	1.22%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
64.41%	66.21%	65.87%	13.97%	13.79%	16.94%	3.63%	2.20%	12.88%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Consumer Non-Cyclical	31.95	%
Financial	19.05
Industrial	17.84
Communications	14.62
Basic Materials	6.59
Technology	5.92
Energy	2.43
Diversified	0.80
Consumer Cyclical	0.51
Short-Term and Other Net Assets	0.29
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Unilever NV CVA	17.63	%
ING Groep NV CVA	11.59
Koninklijke Philips Electronics NV	10.22
Koninklijke KPN NV	9.54
Koninklijke Ahold NV	4.80
ASML Holding NV	4.60
Akzo Nobel NV	4.25
Heineken NV	3.83
AEGON NV	3.53
TNT NV	3.49
TOTAL	73.48	%

8 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SPAIN INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was (12.62)%, while the total return for the Index was (12.86)% .

Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
51.67%	53.08%	54.79%	5.77%	5.77%	5.95%	6.22%	6.13%	5.49%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
51.67%	53.08%	54.79%	32.39%	32.37%	33.49%	82.81%	81.30%	70.73%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	43.12	%
Communications	19.94
Utilities	10.73
Industrial	6.37
Consumer Non-Cyclical	5.60
Consumer Cyclical	5.40
Energy	5.35
Basic Materials	1.68
Technology	1.63
Short-Term and Other Net Assets	0.18
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Banco Santander SA	23.09	%
Telefonica SA	18.94
Banco Bilbao Vizcaya Argentaria SA	6.04
Industria de Diseno Textil SA	4.87
Iberdrola SA	4.72
Repsol YPF SA	4.68
Criteria CaixaCorp SA	3.69
Abertis Infraestructuras SA	3.52
Mapfre SA	3.26
Actividades de Construcciones y Servicios SA	3.17
TOTAL	75.98	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® MSCI SWEDEN INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 4.59%, while the total return for the Index was 4.87% .

Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
92.28%	93.80%	92.27%	5.35%	5.33%	5.34%	0.10%	0.00%	(0.53)%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
92.28%	93.80%	92.27%	29.77%	29.62%	29.73%	0.99%	(0.01)%	(5.17)%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	27.97	%
Industrial	23.17
Communications	21.31
Consumer Cyclical	15.28
Consumer Non-Cyclical	6.13
Basic Materials	5.29
Energy	0.63
Short-Term and Other Net Assets	0.22
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Nordea Bank AB	11.87	%
Hennes & Mauritz AB Class B	11.66
Telefonaktiebolaget LM Ericsson Class B	11.31
TeliaSonera AB	5.84
Svenska Handelsbanken AB Class A	4.88
Sandvik AB	4.09
Atlas Copco AB Class A	3.57
Skandinaviska Enskilda Banken AB Class A	3.46
Volvo AB Class B	3.44
Svenska Cellulosa AB Class B	3.18
TOTAL	63.30	%

10 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SWITZERLAND INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 5.70%, while the total return for the Index was 5.97%.

Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
55.69%	57.78%	57.62%	5.90%	5.70%	5.51%	5.37%	5.22%	5.82%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
55.69%	57.78%	57.62%	33.18%	31.95%	30.74%	68.78%	66.26%	76.13%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Consumer Non-Cyclical	54.64	%
Financial	20.99
Industrial	9.41
Basic Materials	6.01
Consumer Cyclical	5.09
Communications	2.28
Technology	0.35
Utilities	0.29
Short-Term and Other Net Assets	0.94
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Nestle SA Registered	18.72	%
Roche Holding AG Genusschein	13.82
Novartis AG Registered	11.87
Credit Suisse Group AG Registered	5.14
Zurich Financial Services AG Registered	4.73
ABB Ltd. Registered	4.69
UBS AG Registered	4.67
Syngenta AG Registered	3.82
Compagnie Financiere Richemont SA Class A Bearer Units	3.11
Synthes Inc.	2.49
TOTAL	73.06	%

FUND PERFORMANCE OVERVIEWS 11

Fund Performance Overview

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 2.79%, while the total return for the Index was 3.13% .

Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
54.56%	56.55%	56.12%	(0.35)%	(0.26)%	0.27%	1.32%	1.13%	1.92%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
54.56%	56.55%	56.12%	(1.73)%	(1.28)%	1.35%	14.02%	11.92%	21.00%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Consumer Non-Cyclical	24.79	%
Financial	21.97
Energy	20.29
Basic Materials	12.27
Communications	8.68
Utilities	3.96
Consumer Cyclical	3.72
Industrial	3.09
Technology	0.48
Diversified	0.13
Short-Term and Other Net Assets	0.62
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
HSBC Holdings PLC	9.27	%
BP PLC	8.03
Vodafone Group PLC	5.51
Royal Dutch Shell PLC Class A	4.69
GlaxoSmithKline PLC	4.67
Royal Dutch Shell PLC Class B	3.43
Rio Tinto PLC	3.42
British American Tobacco PLC	3.29
BHP Billiton PLC	3.27
AstraZeneca PLC	3.09
TOTAL	48.67	%

12 2010 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, 2009 to February 28, 2010.

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  a (9/1/09)	Ending Account Value  a (2/28/10)	Annualized Expense Ratio		Expenses Paid During Period b (9/1/09 to 2/28/10)
Austria Investable Market
Actual	$1,000.00	$    939.60	0.54	%	$2.60
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Belgium Investable Market
Actual	1,000.00	1,044.30	0.54		2.74
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Emerging Markets Eastern Europe
Actual	1,000.00	1,054.80	0.69		2.93
Hypothetical (5% return before expenses)	1,000.00	1,021.40	0.69		3.46
EMU
Actual	1,000.00	951.70	0.54		2.61
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71

SHAREHOLDER EXPENSES 13

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value  a (9/1/09)	Ending Account Value  a (2/28/10)	Annualized Expense Ratio		Expenses Paid During Period  b (9/1/09 to 2/28/10)
France
Actual	$1,000.00	$977.80	0.54	%	$2.65
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Germany
Actual	1,000.00	965.10	0.54		2.63
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Italy
Actual	1,000.00	903.00	0.54		2.55
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Netherlands Investable Market
Actual	1,000.00	1,033.90	0.54		2.72
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Spain
Actual	1,000.00	873.80	0.54		2.51
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Sweden
Actual	1,000.00	1,045.90	0.54		2.74
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Switzerland
Actual	1,000.00	1,057.00	0.54		2.75
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
United Kingdom
Actual	1,000.00	1,027.90	0.54		2.72
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71

^a Account values are based on a start date of September 30, 2009 (commencement of operations) for the iShares MSCI Emerging Markets Eastern Europe Index Fund.

^b Except for the actual expenses of the iShares MSCI Emerging Markets Eastern Europe Index Fund, actual and hypothetical expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Actual expenses for the iShares MSCI Emerging Markets Eastern Europe Index Fund, which commenced operations on September 30, 2009, are calculated using the Fund’s annualized expenses ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (151 days) and divided by the number of days in the year (365 days).

14 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.23%
AUTO MANUFACTURERS – 0.53%
Rosenbauer International AG	16,848	$	698,741
			698,741
BANKS – 18.84%
Erste Group Bank AGa	503,064		18,996,325
Raiffeisen International Bank
Holding AGa	133,488		6,011,645
			25,007,970
BIOTECHNOLOGY – 2.38%
Intercell AGb	108,504		3,161,410
			3,161,410
BUILDING MATERIALS – 4.22%
Wienerberger AGb	326,448		5,595,525
			5,595,525
COMMERCIAL SERVICES – 0.36%
Kapsch TrafficCom AG	14,615		477,685
			477,685
ELECTRIC – 5.13%
EVN AG	24,125		422,736
Oesterreichische Elektrizitaetswirtschafts AG Class A	156,384		6,381,176
			6,803,912
ELECTRICAL COMPONENTS & EQUIPMENT – 1.39%
Zumtobel AGb	86,544		1,840,101
			1,840,101
ENGINEERING & CONSTRUCTION – 1.67%
AI Airports International Ltd.a,b	249,457		663,846
Flughafen Wien AG	33,856		1,551,506
			2,215,352
ENTERTAINMENT – 3.43%
bwin Interactive Entertainment AGb	83,520		4,559,190
			4,559,190
ENVIRONMENTAL CONTROL – 0.79%
BWT AG	40,968		1,050,531
			1,050,531
FOOD – 1.19%
Agrana Beteiligungs AGa	16,200		1,582,058
			1,582,058

Security	Shares	Value
FOREST PRODUCTS & PAPER – 1.66%
Mayr-Melnhof Karton AG	23,832	$	2,209,649
			2,209,649
INSURANCE – 4.14%
Vienna Insurance Group AG	113,688		5,490,759
			5,490,759
IRON & STEEL – 8.43%
voestalpine AG	316,656		11,188,116
			11,188,116
MACHINERY – 4.61%
Andritz AG	100,512		5,719,936
A-TEC Industries AGa,b	30,816		394,893
			6,114,829
MACHINERY – CONSTRUCTION & MINING – 0.69%
Palfinger AGa	40,968		911,317
			911,317
MANUFACTURING – 2.33%
RHI AGb	66,240		1,951,687
Semperit AG Holding	30,384		1,139,045
			3,090,732
OIL & GAS – 11.47%
OMV AG	410,040		15,220,619
			15,220,619
OIL & GAS SERVICES – 1.25%
Schoeller-Bleckmann Oilfield Equipment AG	32,832		1,653,335
			1,653,335
REAL ESTATE – 14.38%
Atrium European Real Estate Ltd.	587,016		3,741,140
CA Immo International AGb	81,290		565,776
CA Immobilien Anlagen AGb	235,080		2,329,107
conwert Immobilien Invest SEb	204,696		2,257,137
ECO Business-Immobilien AGb	120,240		697,389
IMMOEAST AGa,b	1,073,304		5,111,936
IMMOFINANZ AGa,b	964,584		3,146,119
Sparkassen Immobilien AGb	199,008		1,235,717
			19,084,321
TELECOMMUNICATIONS – 8.34%
Telekom Austria AG	842,040		11,066,141
			11,066,141

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
TRANSPORTATION – 2.00%
Oesterreichische Post AG	97,704	$	2,654,733
			2,654,733
TOTAL COMMON STOCKS (Cost: $202,558,309)			131,677,026
SHORT-TERM INVESTMENTS – 16.29%
MONEY MARKET FUNDS – 16.29%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	18,570,702		18,570,702
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	2,984,511		2,984,511
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	68,754		68,754
			21,623,967
TOTAL SHORT-TERM INVESTMENTS (Cost: $21,623,967)			21,623,967
TOTAL INVESTMENTS IN SECURITIES – 115.52%
(Cost: $224,182,276)			153,300,993
Other Assets, Less Liabilities – (15.52)%			(20,600,401	)
NET ASSETS – 100.00%		$	132,700,592

^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 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI BELGIUM INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.20%
AGRICULTURE – 0.58%
SIPEF NV	11,596	$	648,828
			648,828
APPAREL – 0.40%
Van de Velde NV	10,704		452,548
			452,548
BANKS – 15.94%
Dexia SAa	560,176		3,036,484
Fortisa	2,274,377		7,806,163
KBC Groep NVa	154,093		6,983,755
			17,826,402
BEVERAGES – 23.98%
Anheuser-Busch InBev NV	534,531		26,815,481
			26,815,481
BIOTECHNOLOGY – 0.30%
Devgen NVa	24,530		337,439
			337,439
BUILDING MATERIALS – 0.11%
Deceuninck NVa	62,217		118,871
			118,871
CHEMICALS – 5.23%
Recticel SA	20,770		166,101
Solvay SA	53,074		5,086,765
Tessenderlo Chemie NV	19,847		591,541
			5,844,407
DIVERSIFIED FINANCIAL SERVICES – 0.64%
KBC Ancora SCAa	33,048		721,610
			721,610
ELECTRICAL COMPONENTS & EQUIPMENT – 1.84%
NV Bekaert SA	12,711		2,061,655
			2,061,655
ELECTRONICS – 0.99%
Barco NVa	12,711		505,309
EVS Broadcast Equipment SA	11,150		598,613
			1,103,922
ENGINEERING & CONSTRUCTION – 0.36%
Compagnie d’Entreprises CFE SA	6,244		302,076
Hamon & Cie (International) SA	2,676		101,706
			403,782

Security	Shares	Value
ENTERTAINMENT – 0.21%
Kinepolis Group NV	4,684	$	230,377
			230,377
FOOD – 10.34%
Colruyt SA	18,509		4,636,332
Delhaize Group SA	89,200		6,922,856
			11,559,188
HEALTH CARE – PRODUCTS – 0.20%
Ion Beam Applications SA	21,185		229,844
			229,844
HOLDING COMPANIES – DIVERSIFIED – 9.25%
Ackermans & van Haaren NV	25,422		1,703,967
Compagnie Nationale a Portefeuille SA	42,147		2,109,185
Groupe Bruxelles Lambert SA	74,482		6,535,811
			10,348,963
INVESTMENT COMPANIES – 0.55%
RHJ International SAa	74,035		613,286
			613,286
MANUFACTURING – 1.05%
Agfa-Gevaert NVa	132,908		1,173,526
			1,173,526
MEDIA – 0.06%
Roularta Media Group NVa	2,899		62,905
			62,905
MINING – 4.62%
Nyrstar NVa	101,688		1,318,349
Umicore	128,002		3,844,802
			5,163,151
PHARMACEUTICALS – 7.04%
Arseus NV	26,139		306,422
Galapagos NVa	61,548		957,538
Omega Pharma SA	18,286		902,369
ThromboGenics NVa	32,781		686,701
UCB SA	113,295		5,024,945
			7,877,975
REAL ESTATE – 0.18%
Atenor Group SA	4,014		203,559
			203,559

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BELGIUM INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
REAL ESTATE INVESTMENT TRUSTS – 3.26%
Befimmo SCA	15,610	$	1,276,900
Cofinimmo SA	10,927		1,484,497
Intervest Offices NV	5,798		178,744
Leasinvest Real Estate SCA	928		79,203
Warehouses De Pauw SCA	10,258		462,810
Wereldhave Belgium NV	2,007		162,940
			3,645,094
RETAIL – 1.48%
SA D’Ieteren NV	3,791		1,653,475
			1,653,475
SEMICONDUCTORS – 0.23%
Melexis NVa	24,976		260,407
			260,407
TELECOMMUNICATIONS – 8.80%
Belgacom SA	146,288		5,489,081
Mobistar SA	37,241		2,207,234
Option NVa	66,900		62,083
Telenet Group Holding NVa	69,799		2,081,315
			9,839,713
TRANSPORTATION – 0.69%
Compagnie Maritime Belge SA	12,711		382,842
Euronav SA	19,047		387,562
			770,404
VENTURE CAPITAL – 0.87%
GIMV NV	19,401		970,365
			970,365
TOTAL COMMON STOCKS
(Cost: $152,841,533)			110,937,177

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.07%
MONEY MARKET FUNDS – 0.07%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%b,c	84,049	$	84,049
			84,049
TOTAL SHORT-TERM INVESTMENTS
(Cost: $84,049)			84,049
TOTAL INVESTMENTS IN SECURITIES – 99.27%
(Cost: $152,925,582)			111,021,226
Other Assets, Less Liabilities – 0.73%			814,526
NET ASSETS – 100.00%		$	111,835,752

^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.

18 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.89%
CZECH REPUBLIC – 5.05%
CEZ AS	7,857	$	359,619
Komercni Banka AS	657		129,602
Telefonica O2 Czech Republic AS	4,311		101,822
			591,043
HUNGARY – 6.27%
Magyar Telekom
Telecommunications PLC	20,718		75,110
MOL Hungarian Oil and Gas Nyrta	2,268		204,410
OTP Bank Nyrta	12,186		336,276
Richter Gedeon Nyrt	567		118,253
			734,049
POLAND – 14.58%
Asseco Poland SA	2,835		54,443
Bank Handlowy w Warszawie SAa	1,458		36,861
Bank Millennium SAa	11,511		15,428
Bank Millennium SA New	4,933		6,577
Bank Pekao SAa	5,148		280,627
Bank Zachodni WBK SAa	981		59,456
BRE Bank SAa	432		34,591
Cyfrowy Polsat SA	4,968		24,776
Getin Holding SAa	14,517		45,399
Globe Trade Centre SAa	5,922		42,680
Grupa Lotos SAa	2,421		22,890
ING Bank Slaski SAa	162		36,805
KGHM Polska Miedz SA	5,409		180,584
PBG SAa	468		31,784
Polska Grupa Energetyczna SAa	7,542		57,203
Polski Koncern Naftowy ORLEN SAa	14,643		166,033
Polskie Gornictwo Naftowe i Gazownictwo SA	57,276		70,418
Powszechna Kasa Oszczednosci Bank Polski SA	27,747		353,246
Telekomunikacja Polska SA	28,215		151,264
TVN SA	6,462		34,062
			1,705,127
RUSSIA – 73.99%
Cherepovets MK Severstal SP GDRa,b	10,460		126,566
LUKOIL SP ADR	21,600		1,134,000

Security	Shares	Value
Mechel OAO SP ADR	6,876	$	158,148
MMC Norilsk Nickel SP ADRa	37,800		570,402
Mobile TeleSystems SP ADR	9,846		515,438
Novolipetsk Steel SP GDRa,b	4,158		128,482
OAO Gazprom SP ADR	106,223		2,362,400
OAO NovaTek SP GDRb	4,428		282,506
OAO Tatneft SP ADR	11,502		350,121
OAO TMK SP GDRa,b	3,177		56,551
OJSC Comstar United Telesystems SP GDR	9,639		55,906
OJSC Rosneft Oil Co. SP GDR	64,170		495,392
Pharmstandard SP GDRa,b	4,644		96,177
Polyus Gold SP ADR	6,750		183,330
Sberbank GDRb	3,728		1,012,433
Sistema JSFC SP GDRa,b	6,084		155,142
Surgutneftegaz SP ADR	35,550		290,443
Uralkali SP GDRa,b	7,245		151,783
Vimpel-Communications SP ADR	14,238		264,115
VTB Bank OJSC SP GDRb	41,400		199,548
Wimm-Bill-Dann Foods OJSC SP ADRa	3,312		67,830
			8,656,713
TOTAL COMMON STOCKS
(Cost: $11,748,388)			11,686,932
RIGHTS – 0.00%
POLAND – 0.00%
Asseco Poland SAa,c	2,835		–
			–
TOTAL RIGHTS
(Cost: $0)			–
SHORT-TERM INVESTMENTS – 0.09%
MONEY MARKET FUNDS – 0.09%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%d,e	10,541		10,541
			10,541
TOTAL SHORT-TERM INVESTMENTS
(Cost: $10,541)			10,541

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND

February 28, 2010

	Value
TOTAL INVESTMENTS IN SECURITIES – 99.98%
(Cost: $11,758,929)	$	11,697,473
Other Assets, Less Liabilities – 0.02%		1,844
NET ASSETS – 100.00%	$	11,699,317

GDR – Global Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

SP GDR – Sponsored Global Depositary Receipts

^a Non-income earning security.

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

^c Security valued using Level 3 inputs in accordance with management’s fair valuation policy. 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.

See notes to financial statements.

20 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 98.42%
AUSTRIA – 1.04%
Erste Group Bank AG	52,144	$	1,969,023
IMMOEAST AGa	121,512		578,738
Oesterreichische Elektrizitaetswirtschafts AG Class A	22,692		925,936
OMV AG	42,944		1,594,074
Raiffeisen International Bank Holding AGb	15,628		703,809
Telekom Austria AG	85,832		1,128,009
Vienna Insurance Group AG	11,468		553,867
voestalpine AG	31,720		1,120,734
			8,574,190
BELGIUM – 3.18%
Anheuser-Busch InBev NV	195,060		9,785,453
Belgacom SA	40,122		1,505,475
Colruyt SA	3,858		966,393
Compagnie Nationale a Portefeuille SA	12,614		631,249
Delhaize Group SA	27,438		2,129,477
Dexia SAa,b	148,596		805,478
Fortisa	610,732		2,096,167
Groupe Bruxelles Lambert SA	22,936		2,012,639
KBC Groep NVa	44,050		1,996,420
Mobistar SA	6,588		390,464
Solvay SA	16,360		1,567,990
UCB SA	27,715		1,229,236
Umicore	32,468		975,243
			26,091,684
FINLAND – 3.77%
Elisa OYJ	32,208		672,061
Fortum OYJ	120,558		3,078,272
Kesko OYJ Class B	18,229		662,478
Kone OYJ Class Ba	40,992		1,734,195
Metso OYJ	35,380		1,099,406
Neste Oil OYJ	38,552		551,373
Nokia OYJ	979,564		13,227,745
Nokian Renkaat OYJb	30,012		754,844
Orion OYJ Class B	25,864		574,982
Outokumpu OYJ	31,232		550,680

Security	Shares	Value
Pohjola Bank PLC	44,652	$	496,633
Rautaruukki OYJ	23,668		447,351
Sampo OYJ Class A	114,680		2,785,768
Sanoma OYJ	23,534		471,797
Stora Enso OYJ Class Ra	170,646		1,082,895
UPM-Kymmene OYJ	149,508		1,606,764
Wartsila OYJ Class B	23,416		1,120,371
			30,917,615
FRANCE – 33.59%
Accor SA	43,432		2,201,645
Aeroports de Paris	8,053		637,416
Air France-KLMa	34,648		463,715
Alcatel-Lucenta	622,444		1,894,272
ALSTOM	55,632		3,567,907
ArcelorMittal	230,092		8,782,763
Atos Origin SAa	12,932		604,013
AXAb	459,582		9,273,027
BioMerieux SA	3,172		347,865
BNP Paribas	255,224		18,505,402
Bouygues SA	61,000		2,813,739
Bureau Veritas SA	12,932		657,046
Cap Gemini SA	39,528		1,825,191
Carrefour SA	170,898		7,902,812
Casino Guichard-Perrachon SA	14,884		1,200,654
Christian Dior SA	16,836		1,653,359
CNP Assurances SA	10,004		899,151
Compagnie de Saint-Gobain	101,260		4,770,302
Compagnie Generale de Geophysique-Veritasa	38,552		928,074
Compagnie Generale des Etablissements Michelin Class B	39,528		2,763,544
Credit Agricole SA	247,904		3,694,395
Danone SA	148,248		8,689,388
Dassault Systemes SA	15,128		873,291
Eiffage SAb	11,468		535,243
Electricite de Franceb	62,464		3,137,855
Erametb	1,464		440,741
Essilor International SA	53,436		3,230,173
Eurazeo	8,784		559,038
European Aeronautic Defence and Space Co.b	111,020		2,296,119
Eutelsat Communications	17,980		598,465

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2010

Security	Shares	Value
Fonciere des Regions	6,832	$	682,769
France Telecom SA	495,320		11,643,466
GDF Suez	328,912		12,105,922
Gecina SA	5,856		608,247
Groupe Eurotunnel SA	123,464		1,256,777
Hermes Internationalb	14,396		1,944,779
Icade	5,856		588,667
Iliad SA	3,904		414,449
Imerys SA	10,004		517,292
Ipsen SA	6,832		347,678
JCDecaux SAa	16,844		421,352
Klepierre	27,084		1,010,898
Lafarge SA	54,372		3,534,216
Lagardere SCA	32,696		1,196,491
L’Air Liquide SA	66,700		7,983,846
Legrand SA	30,988		972,443
L’Oreal SA	65,188		6,762,896
LVMH Moet Hennessy Louis Vuitton SA	64,904		7,050,529
M6-Metropole Television	18,056		447,727
Natixisa	243,024		1,202,249
Neopost SA	8,784		714,097
PagesJaunes Groupe SAb	37,346		419,400
Pernod Ricard SA	52,948		3,998,043
PPR SA	20,496		2,357,666
PSA Peugeot Citroen SAa	41,724		1,103,796
Publicis Groupe SA	30,012		1,186,535
Renault SAa	50,752		2,091,690
Safran SA	54,372		1,282,201
Sanofi-Aventis	283,150		20,758,203
Schneider Electric SA	63,684		6,816,316
SCOR SE	47,336		1,159,237
SES SA	77,836		1,890,235
Societe BIC	6,832		484,829
Societe des Autoroutes Paris-Rhin-Rhonea	6,048		435,548
Societe Generale	169,336		9,336,151
Societe Television Francaise 1	32,700		525,468
Sodexo	28,060		1,668,830
STMicroelectronics NV	181,292		1,573,522
Suez Environnement SA	73,688		1,626,591
Technip SA	28,548		2,037,580

Security	Shares	Value
Thales SA	26,178	$	1,048,354
Total SA	568,764		31,808,358
Unibail-Rodamco SE	23,424		4,635,176
Vallourec SA	15,128		2,897,551
Veolia Environnement	103,700		3,369,577
Vinci SA	113,460		5,953,554
Vivendi SA	322,812		8,150,018
			275,767,824
GERMANY – 23.08%
Adidas AG	52,608		2,612,589
Allianz SE Registered	122,574		14,185,067
BASF SE	246,912		13,896,264
Bayer AG	217,648		14,456,169
Bayerische Motoren Werke AG	89,548		3,639,910
Beiersdorf AG	25,422		1,562,071
Celesio AG	22,936		669,680
Commerzbank AGa,b	196,824		1,471,153
Daimler AG Registered	242,048		10,127,700
Deutsche Bank AG Registered	159,576		10,155,861
Deutsche Boerse AG	53,616		3,737,511
Deutsche Lufthansa AG Registered	61,488		919,683
Deutsche Post AG Registered	230,048		3,750,091
Deutsche Postbank AGa	25,376		785,423
Deutsche Telekom AG Registered	758,084		9,776,566
E.ON AG	510,692		18,228,502
Fraport AG	10,980		553,974
Fresenius Medical Care AG & Co. KGaA	51,728		2,707,249
Fresenius SE	7,076		463,035
GEA Group AG	44,050		824,778
Hannover Rueckversicherung AG Registereda	17,080		766,752
HeidelbergCement AG	38,308		1,956,539
Henkel AG & Co. KGaA	35,624		1,574,188
Hochtief AG	11,468		809,125
Infineon Technologies AGa	291,092		1,591,794
K+S AG	45,628		2,778,422
Linde AG	40,504		4,570,757
MAN SE	29,036		2,080,731
Merck KGaA	17,812		1,405,005
METRO AG	30,714		1,578,324

22 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2010

Security	Shares	Value
Muenchener Rueckversicherungs-
Gesellschaft AG Registered	53,616	$	8,315,743
Puma AG	1,464		414,768
QIAGEN NVa	56,364		1,233,027
RWE AG	113,260		9,626,366
Salzgitter AG	10,826		957,519
SAP AG	232,306		10,385,837
Siemens AG Registered	221,796		19,066,128
SolarWorld AGb	23,914		331,250
Suedzucker AG	18,788		437,418
ThyssenKrupp AG	90,862		2,882,985
TUI AGa	46,066		455,780
United Internet AG Registereda	33,918		525,830
Volkswagen AG	8,296		719,258
Wacker Chemie AG	4,284		514,715
			189,501,537
GREECE – 1.19%
Coca-Cola Hellenic Bottling Co. SA SP ADR	86,246		2,109,577
Hellenic Telecommunications Organization SA SP ADR	371,129		2,219,351
National Bank of Greece SA SP ADR	1,406,942		5,430,796
			9,759,724
IRELAND – 0.84%
Anglo Irish Bank Corp. Ltd.c	446,666		61
CRH PLC	187,794		4,287,862
Elan Corp. PLCa	134,408		940,245
Kerry Group PLC Class A	37,332		1,184,517
Ryanair Holdings PLCa	43,520		207,871
Ryanair Holdings PLC SP ADRa	9,996		274,590
			6,895,146
ITALY – 9.95%
A2A SpA	279,868		484,676
Assicurazioni Generali SpA	311,588		7,084,234
Atlantia SpA	69,724		1,611,881
Autogrill SpAa	46,848		583,073
Banca Carige SpAb	190,564		485,797
Banca Monte dei Paschi di Siena SpA	637,938		947,206
Banca Popolare di Milano Scrl	125,598		741,321
Banco Popolare SpAa	180,464		1,151,355

Security	Shares	Value
Enel SpA	1,755,258	$	9,539,683
Eni SpA	700,280		15,835,487
Exor SpA	23,265		355,280
Fiat SpAa	208,864		2,203,334
Finmeccanica SpA	114,268		1,480,665
Fondiaria-SAI SpA	18,788		273,835
Intesa Sanpaolo SpAa	2,069,608		7,293,998
Italcementi SpA	23,267		254,337
Luxottica Group SpA	26,510		694,621
Mediaset SpA	189,100		1,434,840
Mediobanca SpAa	134,362		1,421,070
Mediolanum SpA	48,068		272,889
Parmalat SpA	463,855		1,172,991
Pirelli & C. SpAa	730,646		366,439
Prysmian SpA	26,596		459,139
Saipem SpA	72,712		2,410,298
Snam Rete Gas SpA	381,372		1,808,593
Telecom Italia SpA	2,672,776		3,815,324
Tenaris SA	128,612		2,676,631
Terna SpA	323,056		1,330,339
UniCredit SpAa	4,434,196		11,237,352
Unione di Banche Italiane ScpA	162,404		2,026,831
Unipol Gruppo Finanziario SpAa	247,910		276,917
			81,730,436
NETHERLANDS – 8.21%
AEGON NVa	429,928		2,716,526
Akzo Nobel NV	62,678		3,194,367
ASML Holding NV	116,144		3,567,874
Corio NV	14,640		907,855
Fugro NV CVA	17,466		1,017,076
Heineken Holding NV	25,376		1,037,360
Heineken NV	63,684		3,134,828
ING Groep NV CVAa	981,856		8,796,699
Koninklijke Ahold NV	321,836		3,952,886
Koninklijke DSM NV	42,286		1,769,607
Koninklijke KPN NV	445,238		7,109,111
Koninklijke Philips Electronics NV	262,788		7,699,717
Randstad Holding NVa	28,304		1,187,571
Reed Elsevier NV	194,712		2,236,329
Royal Boskalis Westminster NV CVA	18,788		606,001
Royal Vopak NVa	4,880		359,692
SBM Offshore NV	42,397		753,905

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2010

Security	Shares	Value
TNT NV	100,428	$	2,605,398
Unilever NV CVA	438,948		13,238,615
Wolters Kluwer NV	73,932		1,493,750
			67,385,167
PORTUGAL – 0.92%
Banco Comercial Portugues SA Registered	719,564		730,600
Banco Espirito Santo SA Registered	153,398		765,983
BRISA - Auto-estradas de Portugal SA	57,638		462,906
CIMPOR - Cimentos de Portugal SGPS SA	75,640		560,207
EDP Renovaveis SAa	59,780		482,882
Energias de Portugal SA	490,790		1,805,060
Galp Energia SGPS SA Class B	43,676		710,785
Jeronimo Martins SGPS SA	58,560		563,254
Portugal Telecom SGPS SA Registered	136,884		1,444,007
			7,525,684
SPAIN – 12.65%
Abertis Infraestructuras SA	75,510		1,426,191
Acciona SA	7,056		786,042
Acerinox SA	37,088		634,953
Actividades de Construcciones y Servicios SA	39,040		1,738,990
Banco Bilbao Vizcaya Argentaria SA	964,008		12,563,805
Banco de Sabadell SAb	259,492		1,257,865
Banco de Valencia SAb	70,480		453,989
Banco Popular Espanol SA	243,132		1,612,559
Banco Santander SA	2,203,762		28,718,369
Bankinter SA	82,960		678,727
Criteria CaixaCorp SA	234,972		1,077,439
Enagas SA	50,827		1,062,650
Ferrovial SA	110,449		975,221
Fomento de Construcciones y Contratas SAb	8,296		278,963
Gamesa Corporacion Tecnologica SA	53,192		663,483
Gas Natural SDG SA	62,174		1,142,914
Gestevision Telecinco SA	29,036		384,803
Grifols SA	36,248		549,091

Security	Shares	Value
Iberdrola Renovables SA	258,736	$	1,086,833
Iberdrola SA	994,056		8,022,863
Iberia Lineas Aereas de Espana SAa	120,292		363,948
Indra Sistemas SA	30,436		624,286
Industria de Diseno Textil SA	58,316		3,446,776
Mapfre SA	201,189		726,218
Red Electrica Corporacion SA	28,792		1,452,249
Repsol YPF SA	200,568		4,553,252
Sacyr Vallehermoso SAa,b	24,888		202,803
Telefonica SA	1,133,850		26,684,311
Zardoya Otis SA	35,868		653,470
			103,823,063
TOTAL COMMON STOCKS
(Cost: $1,175,589,835)			807,972,070
PREFERRED STOCKS – 1.37%
GERMANY – 1.09%
Bayerische Motoren Werke AG	14,884		456,009
Fresenius SE	21,716		1,530,690
Henkel AG & Co. KGaA	48,556		2,507,113
Porsche Automobil Holding SE	24,414		1,229,426
RWE AG NVS	10,980		869,995
Volkswagen AG	28,446		2,321,451
			8,914,684
ITALY – 0.28%
Intesa Sanpaolo SpA RNC	264,984		716,376
Telecom Italia SpA RNC	1,513,288		1,610,844
			2,327,220
TOTAL PREFERRED STOCKS
(Cost: $18,117,069)			11,241,904
RIGHTS – 0.00%
ITALY – 0.00%
Banca Carige SpAa,b	190,564		3,771
			3,771
TOTAL RIGHTS
(Cost: $0)			3,771

24 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2010

Security	Shares	Value
WARRANTS – 0.00%
FRANCE – 0.00%
Fonciere des Regions (Expires 12/31/10)a	7,448	$	4,991
			4,991
ITALY – 0.00%
Mediobanca SpA
(Expires 3/18/11)a	121,599		14,769
			14,769
TOTAL WARRANTS
(Cost: $0)			19,760
SHORT-TERM INVESTMENTS – 1.47%
MONEY MARKET FUNDS – 1.47%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%d,e,f	10,352,100		10,352,100
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%d,e,f	1,663,693		1,663,693
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%d,e	72,228		72,228
			12,088,021
TOTAL SHORT-TERM INVESTMENTS
(Cost: $12,088,021)			12,088,021
TOTAL INVESTMENTS IN SECURITIES – 101.26%
(Cost: $1,205,794,925)			831,325,526
Other Assets, Less Liabilities – (1.26)%			(10,379,567	)
NET ASSETS – 100.00%		$	820,945,959

NVS – Non-Voting Shares

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 in accordance with management’s fair valuation policy. 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 25

Schedule of Investments (Unaudited)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.84%
ADVERTISING – 0.76%
JCDecaux SAa	18,786	$	469,931
PagesJaunes Groupe SAb	36,952		414,975
Publicis Groupe SA	33,790		1,335,900
			2,220,806
AEROSPACE & DEFENSE – 1.60%
European Aeronautic Defence and Space Co.	116,126		2,401,721
Safran SA	53,940		1,272,014
Thales SA	25,172		1,008,066
			4,681,801
AIRLINES – 0.18%
Air France-KLMa	38,564		516,126
			516,126
APPAREL – 0.69%
Hermes Internationalb	14,942		2,018,539
			2,018,539
AUTO MANUFACTURERS – 1.13%
PSA Peugeot Citroen SAa	42,966		1,136,653
Renault SAa	53,010		2,184,751
			3,321,404
AUTO PARTS & EQUIPMENT – 1.00%
Compagnie Generale des Etablissements Michelin Class B	41,912		2,930,218
			2,930,218
BANKS – 11.81%
BNP Paribas	269,948		19,572,988
Credit Agricole SA	264,430		3,940,674
Natixisa	247,132		1,222,571
Societe Generale	179,180		9,878,889
			34,615,122
BEVERAGES – 1.45%
Pernod Ricard SA	56,420		4,260,209
			4,260,209
BUILDING MATERIALS – 3.20%
Compagnie de Saint-Gobain	109,678		5,166,870
Imerys SA	9,672		500,124
Lafarge SA	56,916		3,699,578
			9,366,572

Security	Shares	Value
CHEMICALS – 2.92%
L’Air Liquide SA	71,548	$	8,564,141
			8,564,141
COMMERCIAL SERVICES – 0.40%
Bureau Veritas SA	13,888		705,618
Societe des Autoroutes Paris-Rhin-Rhonea	6,572		473,284
			1,178,902
COMPUTERS – 0.86%
Atos Origin SAa	12,896		602,332
Cap Gemini SA	41,726		1,926,682
			2,529,014
COSMETICS & PERSONAL CARE – 3.02%
Christian Dior SA	18,042		1,771,793
L’Oreal SA	68,262		7,081,807
			8,853,600
ELECTRIC – 1.16%
Electricite de Franceb	67,456		3,388,626
			3,388,626
ELECTRICAL COMPONENTS & EQUIPMENT – 0.32%
Legrand SA	29,760		933,907
			933,907
ENGINEERING & CONSTRUCTION – 3.66%
Aeroports de Paris	8,308		657,600
Bouygues SA	63,612		2,934,222
Eiffage SAb	11,346		529,549
Vinci SA	126,046		6,613,976
			10,735,347
FOOD – 6.42%
Carrefour SA	180,854		8,363,206
Casino Guichard-Perrachon SA	15,624		1,260,348
Danone SA	156,674		9,183,269
			18,806,823
FOOD SERVICE – 0.54%
Sodexo	26,784		1,592,942
			1,592,942
GAS – 4.45%
GDF Suez	354,144		13,034,610
			13,034,610

26 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2010

Security	Shares	Value
HAND & MACHINE TOOLS – 2.46%
Schneider Electric SA	67,208	$	7,193,502
			7,193,502
HEALTH CARE – PRODUCTS – 1.18%
Essilor International SA	57,226		3,459,277
			3,459,277
HEALTH CARE – SERVICES – 0.15%
BioMerieux SA	3,968		435,160
			435,160
HOLDING COMPANIES – DIVERSIFIED – 2.59%
LVMH Moet Hennessy Louis Vuitton SA	69,874		7,590,421
			7,590,421
HOUSEHOLD PRODUCTS & WARES – 0.18%
Societe BIC	7,564		536,775
			536,775
INSURANCE – 4.05%
AXA	483,724		9,760,142
CNP Assurances SA	10,602		952,899
SCOR SE	47,554		1,164,576
			11,877,617
INTERNET – 0.17%
Iliad SA	4,650		493,644
			493,644
INVESTMENT COMPANIES – 0.17%
Eurazeo	7,874		501,123
			501,123
IRON & STEEL – 3.19%
ArcelorMittal	244,652		9,338,528
			9,338,528
LODGING – 0.72%
Accor SA	41,602		2,108,880
			2,108,880
MACHINERY – 1.26%
ALSTOM	57,660		3,697,971
			3,697,971
MEDIA – 3.77%
Lagardere SCA	33,418		1,222,913
M6-Metropole Television	18,662		462,754

Security	Shares	Value
Societe Television Francaise 1	33,418	$	537,005
Vivendi SA	350,052		8,837,745
			11,060,417
MEDICAL – DRUGS – 0.13%
Ipsen SA	7,316		372,309
			372,309
METAL FABRICATE & HARDWARE – 1.07%
Vallourec SA	16,306		3,123,180
			3,123,180
MINING – 0.15%
Erametb	1,488		447,967
			447,967
OFFICE & BUSINESS EQUIPMENT – 0.25%
Neopost SAb	8,866		720,763
			720,763
OIL & GAS – 11.82%
Compagnie Generale de Geophysique-Veritasa	41,106		989,557
Total SA	601,834		33,657,811
			34,647,368
OIL & GAS SERVICES – 0.72%
Technip SA	29,636		2,115,234
			2,115,234
PHARMACEUTICALS – 7.51%
Sanofi-Aventis	300,018		21,994,825
			21,994,825
REAL ESTATE – 2.28%
Gecina SA	5,394		560,260
Klepierre	25,668		958,046
Unibail-Rodamco SEb	26,040		5,152,834
			6,671,140
REAL ESTATE INVESTMENT TRUSTS – 0.45%
Fonciere des Regions	6,634		662,982
Icade	6,600		663,457
			1,326,439
RETAIL – 0.85%
PPR SA	21,576		2,481,899
			2,481,899

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2010

Security	Shares	Value
SEMICONDUCTORS – 0.57%
STMicroelectronics NV	193,936	$	1,683,266
			1,683,266
SOFTWARE – 0.37%
Dassault Systemes SA	18,538		1,070,140
			1,070,140
TELECOMMUNICATIONS – 5.91%
Alcatel-Lucenta	660,548		2,010,233
Eutelsat Communications	28,334		943,098
France Telecom SA	528,178		12,415,858
SES SA	80,662		1,958,863
			17,328,052
TRANSPORTATION – 0.47%
Groupe Eurotunnel SA	135,904		1,383,407
			1,383,407
WATER – 1.83%
Suez Environnement SA	76,632		1,691,576
Veolia Environnement	112,530		3,656,494
			5,348,070
TOTAL COMMON STOCKS (Cost: $394,188,878)			292,556,083
WARRANTS – 0.00%
REAL ESTATE INVESTMENT TRUSTS – 0.00%
Fonciere des Regions (Expires 12/31/10)a	7,062		4,732
			4,732
TOTAL WARRANTS (Cost: $0)			4,732
SHORT-TERM INVESTMENTS – 2.68%
MONEY MARKET FUNDS – 2.68%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	6,746,107		6,746,107
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	1,084,172		1,084,172

Security	Shares	Value
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	15,006	$	15,006
			7,845,285
TOTAL SHORT-TERM INVESTMENTS (Cost: $7,845,285)			7,845,285
TOTAL INVESTMENTS IN SECURITIES – 102.52% (Cost: $402,034,163)			300,406,100
Other Assets, Less Liabilities – (2.52)%			(7,395,762	)
NET ASSETS – 100.00%		$	293,010,338

^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.

28 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 95.42%
AIRLINES – 0.50%
Deutsche Lufthansa AG Registered	256,540	$	3,837,097
			3,837,097
APPAREL – 1.57%
Adidas AG	206,248		10,242,571
Puma AG	6,286		1,780,897
			12,023,468
AUTO MANUFACTURERS – 7.25%
Bayerische Motoren Werke AG	351,790		14,299,416
Daimler AG Registered	925,576		38,727,675
Volkswagen AG	29,464		2,554,511
			55,581,602
BANKS – 5.91%
Commerzbank AGa,b	759,732		5,678,588
Deutsche Bank AG Registered	575,691		36,638,578
Deutsche Postbank AGa	95,464		2,954,744
			45,271,910
BIOTECHNOLOGY – 0.65%
QIAGEN NVa	228,092		4,989,773
			4,989,773
BUILDING MATERIALS – 0.95%
HeidelbergCement AG	142,494		7,277,724
			7,277,724
CHEMICALS – 16.08%
BASF SE	948,055		53,356,752
Bayer AG	854,583		56,761,359
K+S AG	181,103		11,027,889
Wacker Chemie AG	17,907		2,151,494
			123,297,494
COSMETICS & PERSONAL CARE – 0.79%
Beiersdorf AG	98,806		6,071,196
			6,071,196
DIVERSIFIED FINANCIAL SERVICES – 1.94%
Deutsche Boerse AG	213,233		14,864,233
			14,864,233
ELECTRIC – 13.91%
E.ON AG	2,010,609		71,766,132
RWE AG	409,702		34,822,014
			106,588,146

Security	Shares	Value
ENERGY – ALTERNATE SOURCES – 0.16%
SolarWorld AGb	87,249	$	1,208,547
			1,208,547
ENGINEERING & CONSTRUCTION – 3.18%
Fraport AG	44,069		2,223,411
Hochtief AG	46,947		3,312,345
Linde AG	167,005		18,846,020
			24,381,776
FOOD – 1.09%
METRO AG	124,841		6,415,302
Suedzucker AG	83,947		1,954,436
			8,369,738
HEALTH CARE – PRODUCTS – 1.73%
Fresenius Medical Care
AG & Co. KGaA	211,328		11,060,114
Fresenius SE	33,655		2,202,295
			13,262,409
HOLDING COMPANIES – DIVERSIFIED – 0.39%
GEA Group AG	158,750		2,972,385
			2,972,385
HOUSEHOLD PRODUCTS & WARES – 0.88%
Henkel AG & Co. KGaA	152,019		6,717,566
			6,717,566
INSURANCE – 11.93%
Allianz SE Registered	470,867		54,491,818
Hannover Rueckversicherung AG Registereda	68,707		3,084,381
Muenchener Rueckversicherungs-Gesellschaft AG Registered	218,186		33,840,246
			91,416,445
INTERNET – 0.31%
United Internet AG Registereda	154,178		2,390,220
			2,390,220
IRON & STEEL – 1.95%
Salzgitter AG	41,783		3,695,548
ThyssenKrupp AG	354,838		11,258,752
			14,954,300
LEISURE TIME – 0.19%
TUI AGa	147,828		1,462,621
			1,462,621

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2010

Security	Shares	Value
MACHINERY – DIVERSIFIED – 1.06%
MAN SE	113,057	$	8,101,710
			8,101,710
MANUFACTURING – 9.62%
Siemens AG Registered	858,175		73,770,828
			73,770,828
PHARMACEUTICALS – 1.07%
Celesio AG	92,710		2,706,924
Merck KGaA	69,723		5,499,727
			8,206,651
SEMICONDUCTORS – 0.81%
Infineon Technologies AGa	1,131,570		6,187,824
			6,187,824
SOFTWARE – 4.82%
SAP AG	826,643		36,957,201
			36,957,201
TELECOMMUNICATIONS – 4.77%
Deutsche Telekom AG Registered	2,837,053		36,587,813
			36,587,813
TRANSPORTATION – 1.91%
Deutsche Post AG Registered	899,668		14,665,795
			14,665,795
TOTAL COMMON STOCKS (Cost: $973,680,248)			731,416,472
PREFERRED STOCKS – 4.42%
AUTO MANUFACTURERS – 2.05%
Bayerische Motoren Werke AG	67,842		2,078,510
Porsche Automobil Holding SE	90,638		4,564,297
Volkswagen AG	110,998		9,058,442
			15,701,249
ELECTRIC – 0.21%
RWE AG NVS	20,320		1,610,045
			1,610,045
HEALTH CARE – SERVICES – 0.82%
Fresenius SE	89,027		6,275,224
			6,275,224

Security	Shares	Value
HOUSEHOLD PRODUCTS & WARES – 1.34%
Henkel AG & Co. KGaA	198,882	$	10,268,959
			10,268,959
TOTAL PREFERRED STOCKS (Cost: $44,816,068)			33,855,477
SHORT-TERM INVESTMENTS – 0.96%
MONEY MARKET FUNDS – 0.96%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	6,344,583		6,344,583
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	1,019,642		1,019,642
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	44,149		44,149
			7,408,374
TOTAL SHORT-TERM INVESTMENTS (Cost: $7,408,374)			7,408,374
TOTAL INVESTMENTS IN SECURITIES – 100.80% (Cost: $1,025,904,690)			772,680,323
Other Assets, Less Liabilities – (0.80)%			(6,130,400	)
NET ASSETS – 100.00%		$	766,549,923

NVS – Non-Voting Shares

^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.

30 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 98.52%
AEROSPACE & DEFENSE – 1.98%
Finmeccanica SpA	167,507	$	2,170,527
			2,170,527
AUTO MANUFACTURERS – 2.69%
Fiat SpAa	279,229		2,945,623
			2,945,623
AUTO PARTS & EQUIPMENT – 0.52%
Pirelli & C. SpAa	1,146,595		575,049
			575,049
BANKS – 28.78%
Banca Carige SpAb	356,083		907,748
Banca Monte dei Paschi di Siena SpA	1,205,591		1,790,054
Banca Popolare di Milano Scrl	226,952		1,339,545
Banco Popolare SpAa	247,907		1,581,640
Intesa Sanpaolo SpAa	2,530,206		8,917,300
UniCredit SpAa	5,350,017		13,558,269
Unione di Banche Italiane ScpA	278,195		3,471,924
			31,566,480
BUILDING MATERIALS – 0.43%
Italcementi SpA	43,516		475,684
			475,684
COMMERCIAL SERVICES – 2.64%
Atlantia SpA	125,210		2,894,607
			2,894,607
DIVERSIFIED FINANCIAL SERVICES – 2.36%
Mediobanca SpAa	245,289		2,594,281
			2,594,281
ELECTRIC – 15.73%
A2A SpAb	784,778		1,359,083
Enel SpA	2,049,122		11,136,810
Terna SpA	1,155,926		4,760,083
			17,255,976
ELECTRICAL COMPONENTS & EQUIPMENT – 0.80%
Prysmian SpA	51,142		882,888
			882,888
FOOD – 1.69%
Parmalat SpA	731,043		1,848,654
			1,848,654

Security	Shares	Value
HEALTH CARE – PRODUCTS – 1.89%
Luxottica Group SpA	78,991	$	2,069,741
			2,069,741
HOLDING COMPANIES – DIVERSIFIED – 0.46%
Exor SpA	32,775		500,507
			500,507
INSURANCE – 7.55%
Assicurazioni Generali SpA	229,448		5,216,707
Fondiaria-SAI SpAb	79,636		1,160,694
Mediolanum SpA	207,131		1,175,914
Unipol Gruppo Finanziario SpAa	648,163		724,003
			8,277,318
MEDIA – 2.49%
Mediaset SpA	360,665		2,736,629
			2,736,629
METAL FABRICATE & HARDWARE – 3.17%
Tenaris SA	167,237		3,480,482
			3,480,482
OIL & GAS – 18.43%
Eni SpA	894,228		20,221,248
			20,221,248
OIL & GAS SERVICES – 2.89%
Saipem SpA	95,707		3,172,550
			3,172,550
RETAIL – 0.55%
Autogrill SpAa	48,332		601,543
			601,543
TELECOMMUNICATIONS – 3.47%
Telecom Italia SpA	2,668,021		3,808,536
			3,808,536
TOTAL COMMON STOCKS (Cost: $166,754,461)			108,078,323
PREFERRED STOCKS – 1.35%
BANKS – 0.39%
Intesa Sanpaolo SpA RNC	158,584		428,727
			428,727

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2010

Security	Shares	Value
TELECOMMUNICATIONS – 0.96%
Telecom Italia SpA RNC	991,494	$	1,055,412
			1,055,412
TOTAL PREFERRED STOCKS (Cost: $1,940,838)			1,484,139
RIGHTS – 0.01%
BANKS – 0.01%
Banca Carige SpAa,b	338,775		6,703
			6,703
TOTAL RIGHTS (Cost: $0)			6,703
WARRANTS – 0.03%
DIVERSIFIED FINANCIAL SERVICES – 0.03%
Mediobanca SpA (Expires 3/18/11)a	293,592		35,659
			35,659
TOTAL WARRANTS (Cost: $0)			35,659
SHORT-TERM INVESTMENTS – 2.25%
MONEY MARKET FUNDS – 2.25%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	2,062,380		2,062,380
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	331,447		331,447
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	68,430		68,430
			2,462,257
TOTAL SHORT-TERM INVESTMENTS (Cost: $2,462,257)			2,462,257

	Value
TOTAL INVESTMENTS IN SECURITIES – 102.16% (Cost: $171,157,556)	$	112,067,081
Other Assets, Less Liabilities – (2.16)%		(2,365,989	)
NET ASSETS – 100.00%	$	109,701,092

^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.

32 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.71%
BANKS – 0.28%
SNS REAAL NVa	57,792	$	294,811
			294,811
BEVERAGES – 4.94%
Heineken Holding NV	28,896		1,181,257
Heineken NV	82,992		4,085,259
			5,266,516
BIOTECHNOLOGY – 0.42%
Crucell NVa	23,520		450,973
			450,973
BUILDING MATERIALS – 0.25%
Wavin NV	136,080		263,706
			263,706
CHEMICALS – 6.59%
Akzo Nobel NV	88,816		4,526,483
Koninklijke DSM NV	59,696		2,498,190
			7,024,673
COMMERCIAL SERVICES – 2.01%
Brunel International NV	3,472		133,571
Randstad Holding NVa	39,200		1,644,742
USG People NVa	22,400		363,927
			2,142,240
DIVERSIFIED FINANCIAL SERVICES – 0.39%
BinckBank NV	15,680		282,032
KAS Bank NV CVA	7,280		133,775
			415,807
ELECTRICAL COMPONENTS & EQUIPMENT – 0.39%
Draka Holding NVa	10,528		174,207
TKH Group NV	12,992		239,357
			413,564
ELECTRONICS – 10.22%
Koninklijke Philips Electronics NV	371,728		10,891,671
			10,891,671
ENGINEERING & CONSTRUCTION – 1.46%
Arcadis NV	19,600		434,657
Koninklijke BAM Groep NVb	42,896		340,470
Royal Boskalis Westminster NV CVA	24,304		783,918
			1,559,045

Security	Shares	Value
FOOD – 24.20%
CSM NV CVA	25,760	$	685,692
Koninklijke Ahold NV	416,640		5,117,297
Koninklijke Wessanen NVa	33,488		127,460
Nutreco Holding NV	12,656		751,489
Sligro Food Group NV	10,080		323,408
Unilever NV CVA	623,168		18,794,666
			25,800,012
HOLDING COMPANIES – DIVERSIFIED – 0.80%
Imtech NV	23,744		726,647
Ordina NVa	20,496		129,841
			856,488
HOUSEWARES – 0.11%
Hunter Douglas NV	2,576		116,942
			116,942
INSURANCE – 15.12%
AEGON NVa	596,064		3,766,267
ING Groep NV CVAa	1,378,720		12,352,305
			16,118,572
INVESTMENT COMPANIES – 0.13%
Kardan NVa	22,400		136,339
			136,339
LEISURE TIME – 0.12%
Accell Group NV	2,576		125,432
			125,432
MANUFACTURING – 0.73%
Aalberts Industries NV	36,064		502,501
Koninklijke Ten Cate NV	10,416		273,633
			776,134
MEDIA – 5.08%
Reed Elsevier NV	280,784		3,224,893
Wolters Kluwer NV	108,640		2,195,004
			5,419,897
METAL FABRICATE & HARDWARE – 0.08%
Advanced Metallurgical Group NVa,b	8,288		89,241
			89,241
OFFICE & BUSINESS EQUIPMENT – 0.29%
Oce NVa	26,700		312,196
			312,196

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
OIL & GAS SERVICES – 2.43%
Fugro NV CVA	25,312	$	1,473,962
SBM Offshore NV	62,720		1,115,290
			2,589,252
PHARMACEUTICALS – 0.38%
Mediq NV	23,632		404,906
			404,906
REAL ESTATE INVESTMENT TRUSTS – 3.13%
Corio NV	21,168		1,312,669
Eurocommercial Properties NV	12,320		471,439
Nieuwe Steen Investments NV	10,752		217,164
VastNed Offices/Industrial NV	7,056		121,667
VastNed Retail NV	6,832		434,947
Wereldhave NV	8,624		778,295
			3,336,181
RETAIL – 0.28%
Beter Bed Holding NV	6,608		165,930
Macintosh Retail Group NV	6,720		135,590
			301,520
SEMICONDUCTORS – 4.99%
ASM International NVa	17,472		411,310
ASML Holding NV	159,712		4,906,256
			5,317,566
SOFTWARE – 0.64%
Exact Holding NV	4,480		111,211
TomTom NVa,b	45,808		358,769
Unit 4 Agresso NVa	9,072		217,712
			687,692
TELECOMMUNICATIONS – 9.54%
Koninklijke KPN NV	636,944		10,170,079
			10,170,079
TRANSPORTATION – 4.71%
Royal Vopak NVa	12,656		932,841
Smit Internationale NV	4,256		361,558
TNT NV	143,584		3,724,992
			5,019,391
TOTAL COMMON STOCKS (Cost: $143,043,330)			106,300,846

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.65%
MONEY MARKET FUNDS – 0.65%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	508,800	$	508,800
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	81,770		81,770
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	106,740		106,740
			697,310
TOTAL SHORT-TERM INVESTMENTS (Cost: $697,310)			697,310
TOTAL INVESTMENTS IN SECURITIES – 100.36% (Cost: $143,740,640)			106,998,156
Other Assets, Less Liabilities – (0.36)%			(388,340	)
NET ASSETS – 100.00%		$	106,609,816

^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.

34 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.82%
AIRLINES – 0.53%
Iberia Lineas Aereas de Espana SAa	414,106	$	1,252,894
			1,252,894
BANKS – 36.17%
Banco Bilbao Vizcaya Argentaria SA	1,086,470		14,159,839
Banco de Sabadell SAb	1,032,647		5,005,668
Banco de Valencia SAb	419,958		2,705,111
Banco Popular Espanol SA	904,982		6,002,241
Banco Santander SA	4,153,842		54,130,876
Bankinter SAb	339,185		2,775,000
			84,778,735
COMMERCIAL SERVICES – 4.93%
Abertis Infraestructuras SA	437,437		8,262,069
Ferrovial SA	373,065		3,294,018
			11,556,087
COMPUTERS – 1.63%
Indra Sistemas SA	186,263		3,820,523
			3,820,523
DIVERSIFIED FINANCIAL SERVICES – 3.69%
Criteria CaixaCorp SA	1,888,425		8,659,169
			8,659,169
ELECTRIC – 7.02%
Iberdrola SA	1,371,370		11,068,102
Red Electrica Corporacion SA	107,007		5,397,359
			16,465,461
ENERGY – ALTERNATE SOURCES – 0.67%
Gamesa Corporacion Tecnologica SA	125,279		1,562,650
			1,562,650
ENGINEERING & CONSTRUCTION – 5.74%
Acciona SA	32,032		3,568,380
Actividades de Construcciones y Servicios SAb	166,782		7,429,105
Fomento de Construcciones y Contratas SAb	44,814		1,506,925
Sacyr Vallehermoso SAa,b	116,809		951,833
			13,456,243

Security	Shares	Value
GAS – 3.71%
Enagas SA	183,183	$	3,829,844
Gas Natural SDG SA	265,265		4,876,236
			8,706,080
INSURANCE – 3.26%
Mapfre SA	2,118,938		7,648,585
			7,648,585
IRON & STEEL – 1.68%
Acerinox SA	229,460		3,928,392
			3,928,392
MACHINERY – 0.63%
Zardoya Otis SA	81,425		1,483,461
			1,483,461
MEDIA – 1.00%
Gestevision Telecinco SA	176,253		2,335,811
			2,335,811
OIL & GAS – 4.68%
Repsol YPF SA	482,790		10,960,195
			10,960,195
PHARMACEUTICALS – 0.67%
Grifols SA	104,335		1,580,484
			1,580,484
RETAIL – 4.87%
Industria de Diseno Textil SA	192,962		11,405,049
			11,405,049
TELECOMMUNICATIONS – 18.94%
Telefonica SA	1,886,192		44,390,117
			44,390,117
TOTAL COMMON STOCKS
(Cost: $352,987,256)			233,989,936
SHORT-TERM INVESTMENTS – 7.02%
MONEY MARKET FUNDS – 7.02%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	14,140,382		14,140,382
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	2,272,511		2,272,511

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2010

Security	Shares	Value
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	28,981	$	28,981
			16,441,874
TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,441,874)			16,441,874
TOTAL INVESTMENTS IN SECURITIES – 106.84%
(Cost: $369,429,130)			250,431,810
Other Assets, Less Liabilities – (6.84)%			(16,025,810	)
NET ASSETS – 100.00%		$	234,406,000

^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.

36 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.78%
AGRICULTURE – 2.15%
Swedish Match AB	188,720	$	4,309,263
			4,309,263
AUTO MANUFACTURERS – 1.70%
Scania AB Class B	241,136		3,414,213
			3,414,213
BANKS – 22.41%
Nordea Bank AB	2,430,624		23,786,257
Skandinaviska Enskilda Banken AB Class Aa	1,142,848		6,927,325
Svenska Handelsbanken AB Class A	357,728		9,782,990
Swedbank AB Class Aa	459,984		4,401,188
			44,897,760
COMMERCIAL SERVICES – 1.27%
Securitas AB Class B	234,864		2,541,114
			2,541,114
DIVERSIFIED FINANCIAL SERVICES – 1.33%
Kinnevik Investment AB Class B	162,736		2,665,684
			2,665,684
ENGINEERING & CONSTRUCTION – 2.49%
Skanska AB Class B	300,608		4,983,259
			4,983,259
FOREST PRODUCTS & PAPER – 3.67%
Holmen AB Class B	39,648		986,719
Svenska Cellulosa AB Class B	429,184		6,360,383
			7,347,102
HAND & MACHINE TOOLS – 4.09%
Sandvik AB	758,576		8,186,091
			8,186,091
HEALTH CARE – PRODUCTS – 1.73%
Getinge AB Class B	150,416		3,476,922
			3,476,922
HOME FURNISHINGS – 1.92%
Electrolux AB Class Ba	180,544		3,843,333
			3,843,333
HOUSEHOLD PRODUCTS & WARES – 0.98%
Husqvarna AB Class Ba	305,872		1,974,020
			1,974,020

Security	Shares	Value
INVESTMENT COMPANIES – 4.23%
Investor AB Class B	345,968	$	6,153,547
Ratos AB Class B	76,384		2,319,825
			8,473,372
IRON & STEEL – 1.62%
SSAB AB Class A	135,968		2,284,566
SSAB AB Class B	63,056		962,843
			3,247,409
MACHINERY – 10.26%
Atlas Copco AB Class Ab	504,112		7,151,832
Atlas Copco AB Class B	293,216		3,792,928
Volvo AB Class A	324,128		2,725,316
Volvo AB Class B	810,656		6,878,805
			20,548,881
MANUFACTURING – 1.80%
Alfa Laval AB	254,016		3,610,866
			3,610,866
METAL FABRICATE & HARDWARE – 4.53%
Assa Abloy AB Class B	235,200		4,424,789
SKF AB Class B	293,776		4,651,080
			9,075,869
OIL & GAS – 0.63%
Lundin Petroleum ABa	166,992		1,271,432
			1,271,432
RETAIL – 11.66%
Hennes & Mauritz AB Class B	384,048		23,354,507
			23,354,507
TELECOMMUNICATIONS – 21.31%
Millicom International Cellular SA SDR	57,008		4,833,394
Tele2 AB Class B	234,192		3,490,415
Telefonaktiebolaget LM Ericsson Class B	2,260,496		22,661,694
TeliaSonera AB	1,686,608		11,703,086
			42,688,589
TOTAL COMMON STOCKS
(Cost: $256,314,872)			199,909,686

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2010

Security	Shares	Value
SHORT-TERM INVESTMENTS – 1.19%
MONEY MARKET FUNDS – 1.19%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	2,009,494	$	2,009,494
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	322,947		322,947
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	44,327		44,327
			2,376,768
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,376,768)			2,376,768
TOTAL INVESTMENTS IN SECURITIES – 100.97%
(Cost: $258,691,640)			202,286,454
Other Assets, Less Liabilities – (0.97)%			(1,945,906	)
NET ASSETS – 100.00%		$	200,340,548

SDR – Swedish Depositary Receipts

^a Non-income earning security.

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

^c 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.

38 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.06%
BANKS – 7.86%
Baloise Holding AG Registered	30,420	$	2,620,067
Credit Suisse Group AG Registered	369,135		16,412,882
GAM Holding Ltd.	139,683		1,525,993
Julius Baer Group Ltd.	146,053		4,549,861
			25,108,803
BUILDING MATERIALS – 3.33%
Geberit AG Registered	17,784		3,048,544
Holcim Ltd. Registereda	114,498		7,583,038
			10,631,582
CHEMICALS – 6.01%
Givaudan SA Registered	5,179		4,260,317
Lonza Group AG Registered	34,983		2,758,727
Syngenta AG Registered	47,034		12,188,154
			19,207,198
COMMERCIAL SERVICES – 2.40%
Adecco SA Registered	65,871		3,278,814
SGS SA Registered	3,276		4,391,208
			7,670,022
COMPUTERS – 0.35%
Logitech International SA Registereda	71,955		1,109,373
			1,109,373
DIVERSIFIED FINANCIAL SERVICES – 4.67%
UBS AG Registereda	1,081,665		14,932,381
			14,932,381
ELECTRIC – 0.29%
BKW FMB Energie AG	12,656		925,488
			925,488
ENGINEERING & CONSTRUCTION – 4.69%
ABB Ltd. Registereda	740,025		14,989,507
			14,989,507
FOOD – 20.84%
Aryzta AG	49,023		1,839,276
Lindt & Spruengli AG Participation Certificates	914		1,864,976
Lindt & Spruengli AG Registered	132		3,075,447
Nestle SA Registered	1,201,122		59,843,373
			66,623,072

Security	Shares	Value
HAND & MACHINE TOOLS – 0.77%
Schindler Holding AG Participation Certificates	23,166	$	1,852,762
Schindler Holding AG Registered	7,605		604,331
			2,457,093
HEALTH CARE – PRODUCTS – 4.75%
Nobel Biocare Holding AG Registered	67,392		1,716,209
Sonova Holding AG Registered	32,058		4,004,262
Straumann Holding AG Registered	6,201		1,514,413
Synthes Inc.	66,573		7,949,293
			15,184,177
INSURANCE – 7.47%
Swiss Life Holding AG Registereda	15,678		1,978,748
Swiss Reinsurance Co. Registered	151,047		6,797,678
Zurich Financial Services AG Registered	62,595		15,111,955
			23,888,381
INVESTMENT COMPANIES – 0.99%
Pargesa Holding SA Bearer	40,365		3,166,214
			3,166,214
PHARMACEUTICALS – 26.65%
Actelion Ltd. Registereda	60,489		3,087,037
Novartis AG Registered	681,057		37,931,726
Roche Holding AG Genusschein	264,186		44,178,755
			85,197,518
RETAIL – 5.09%
Compagnie Financiere Richemont SA Class A Bearer Units	294,489		9,942,572
Swatch Group AG (The) Bearer	16,545		4,606,629
Swatch Group AG (The) Registered	32,253		1,713,666
			16,262,867
TELECOMMUNICATIONS – 2.28%
Swisscom AG Registered	21,177		7,286,009
			7,286,009
TRANSPORTATION – 0.62%
Kuehne & Nagel International AG Registered	21,879		1,987,424
			1,987,424
TOTAL COMMON STOCKS
(Cost: $340,561,319)			316,627,109

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2010

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.11%
MONEY MARKET FUNDS – 0.11%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%b,c	350,827	$	350,827
			350,827
TOTAL SHORT-TERM INVESTMENTS
(Cost: $350,827)			350,827
TOTAL INVESTMENTS IN SECURITIES – 99.17%
(Cost: $340,912,146)			316,977,936
Other Assets, Less Liabilities – 0.83%			2,646,350
NET ASSETS – 100.00%		$	319,624,286

^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.

40 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.38%
AEROSPACE & DEFENSE – 1.95%
BAE Systems PLC	1,542,645	$	8,790,521
Cobham PLC	500,151		1,839,615
Rolls-Royce Group PLCa	804,871		6,837,373
			17,467,509
AGRICULTURE – 4.83%
British American Tobacco PLC	868,452		29,476,918
Imperial Tobacco Group PLC	441,258		13,744,438
			43,221,356
AIRLINES – 0.09%
British Airways PLCa,b	251,980		810,194
			810,194
APPAREL – 0.20%
Burberry Group PLC	189,278		1,802,421
			1,802,421
BANKS – 16.20%
Barclays PLC	4,956,095		23,578,622
HSBC Holdings PLC	7,568,483		82,914,172
Lloyds Banking Group PLCa	16,563,583		13,238,609
Royal Bank of Scotland Group PLCa	7,348,440		4,214,243
Standard Chartered PLC	879,586		20,916,457
			144,862,103
BEVERAGES – 3.17%
Diageo PLC	1,088,202		17,627,062
SABMiller PLC	410,786		10,756,546
			28,383,608
CHEMICALS – 0.25%
Johnson Matthey PLC	93,760		2,266,715
			2,266,715
COMMERCIAL SERVICES – 1.41%
Bunzl PLC	142,984		1,481,305
Capita Group PLC	269,560		2,938,308
Experian PLC	445,653		4,118,265
G4S PLC	553,184		2,279,747
Serco Group PLC	212,718		1,792,465
			12,610,090

Security	Shares	Value
DISTRIBUTION & WHOLESALE – 0.32%
Wolseley PLCa	123,060	$	2,903,871
			2,903,871
DIVERSIFIED FINANCIAL SERVICES – 1.18%
ICAP PLC	227,075		1,126,287
Investec PLC	183,418		1,242,319
London Stock Exchange Group PLC	65,046		658,523
Man Group PLC	744,220		2,545,852
Old Mutual PLCa	2,292,432		3,957,658
Schroders PLC	53,619		976,290
			10,506,929
ELECTRIC – 2.42%
Drax Group PLC	159,685		972,175
International Power PLC	660,715		3,262,045
National Grid PLC	1,067,692		10,597,962
Scottish & Southern Energy PLC	401,410		6,850,505
			21,682,687
ENGINEERING & CONSTRUCTION – 0.34%
AMEC PLC	145,328		1,743,429
Balfour Beatty PLC	300,032		1,260,225
			3,003,654
FOOD – 5.05%
J Sainsbury PLC	520,661		2,618,930
Tesco PLC	3,451,540		22,053,659
Unilever PLC	557,286		16,323,451
Wm Morrison Supermarkets PLC	920,020		4,180,906
			45,176,946
FOOD SERVICE – 0.92%
Associated British Foods PLC	155,876		2,254,403
Compass Group PLC	803,406		5,963,861
			8,218,264
GAS – 1.06%
Centrica PLC	2,233,246		9,509,503
			9,509,503
HEALTH CARE – PRODUCTS – 0.44%
Smith & Nephew PLC	384,123		3,938,553
			3,938,553
HOLDING COMPANIES – DIVERSIFIED – 0.13%
Tomkins PLC	384,416		1,127,162
			1,127,162

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2010

Security	Shares	Value
HOUSEHOLD PRODUCTS & WARES – 1.55%
Reckitt Benckiser Group PLC	264,579	$	13,888,374
			13,888,374
INSURANCE – 3.09%
Admiral Group PLC	82,040		1,548,731
Aviva PLC	1,203,351		7,150,224
Legal & General Group PLC	2,529,762		2,971,285
Prudential PLC	1,100,215		10,091,678
RSA Insurance Group PLC	1,487,268		2,934,425
Standard Life PLC	975,690		2,902,453
			27,598,796
INVESTMENT COMPANIES – 0.13%
Resolution Ltd.a	1,040,980		1,145,009
			1,145,009
LEISURE TIME – 0.57%
Carnival PLC	72,664		2,744,573
Thomas Cook Group PLC	372,110		1,335,808
TUI Travel PLC	244,362		1,020,070
			5,100,451
LODGING – 0.18%
InterContinental Hotels Group PLC	111,926		1,567,644
			1,567,644
MANUFACTURING – 0.49%
Invensys PLC	350,135		1,678,027
Smiths Group PLC	168,768		2,669,528
			4,347,555
MEDIA – 2.01%
British Sky Broadcasting Group PLC	494,877		4,098,500
Pearson PLC	351,893		4,885,784
Reed Elsevier PLC	526,521		3,943,752
WPP PLC	543,808		5,000,475
			17,928,511
MINING – 12.02%
Anglo American PLCa	572,522		20,831,419
Antofagasta PLC	171,698		2,309,407
BHP Billiton PLC	958,403		29,283,590
Eurasian Natural Resources Corp.	112,219		1,754,549
Fresnillo PLC	78,231		893,837
Kazakhmys PLCa	93,467		1,908,165
Lonmin PLCa	67,390		1,853,883
Randgold Resources Ltd.	39,262		2,795,558

Security	Shares	Value
Rio Tinto PLC	596,548	$	30,551,332
Vedanta Resources PLC	59,772		2,318,601
Xstrata PLCa	827,725		12,979,324
			107,479,665
OIL & GAS – 20.13%
BG Group PLC	1,465,586		25,547,333
BP PLC	8,155,362		71,849,790
Cairn Energy PLCa	598,013		3,044,428
Royal Dutch Shell PLC Class A	1,540,594		41,982,665
Royal Dutch Shell PLC Class B	1,172,586		30,642,013
Tullow Oil PLC	384,416		6,958,443
			180,024,672
OIL & GAS SERVICES – 0.16%
Petrofac Ltd.	89,072		1,392,645
			1,392,645
PACKAGING & CONTAINERS – 0.18%
Rexam PLC	382,072		1,623,431
			1,623,431
PHARMACEUTICALS – 8.34%
AstraZeneca PLC	630,243		27,666,662
GlaxoSmithKline PLC	2,256,686		41,707,926
Shire PLC	243,483		5,215,447
			74,590,035
REAL ESTATE – 0.81%
British Land Co. PLC	373,868		2,504,377
Land Securities Group PLC	328,453		3,162,733
Liberty International PLC	218,285		1,570,863
			7,237,973
REAL ESTATE INVESTMENT TRUSTS – 0.37%
Hammerson PLC	303,841		1,771,634
SEGRO PLC	320,835		1,556,656
			3,328,290
RETAIL – 1.44%
Carphone Warehouse Group PLC (The)	180,195		508,606
Home Retail Group PLC	383,830		1,490,074
Kingfisher PLC	1,024,914		3,354,707
Marks & Spencer Group PLC	685,620		3,445,544
Next PLC	86,142		2,458,923
Whitbread PLC	76,180		1,646,865
			12,904,719

42 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2010

Security	Shares	Value
SOFTWARE – 0.48%
Autonomy Corp. PLCa	94,053	$	2,190,750
Sage Group PLC (The)	571,936		2,061,854
			4,252,604
TELECOMMUNICATIONS – 6.67%
BT Group PLC	3,368,621		5,892,519
Cable & Wireless PLC	1,122,776		2,331,505
Inmarsat PLC	189,278		2,112,190
Vodafone Group PLC	22,875,389		49,260,659
			59,596,873
TRANSPORTATION – 0.13%
FirstGroup PLC	210,374		1,138,892
			1,138,892
VENTURE CAPITAL – 0.19%
3i Group PLC	421,041		1,686,452
			1,686,452
WATER – 0.48%
Severn Trent PLC	102,843		1,824,019
United Utilities Group PLC	296,809		2,455,870
			4,279,889
TOTAL COMMON STOCKS
(Cost: $1,075,207,044)			888,604,045
SHORT-TERM INVESTMENTS – 0.09%
MONEY MARKET FUNDS – 0.09%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	640,382		640,382
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	102,916		102,916
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	67,528		67,528
			810,826
TOTAL SHORT-TERM INVESTMENTS
(Cost: $810,826)			810,826

	Value
TOTAL INVESTMENTS IN SECURITIES – 99.47%
(Cost: $1,076,017,870)	$	889,414,871
Other Assets, Less Liabilities – 0.53%		4,756,520
NET ASSETS – 100.00%	$	894,171,391

^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 43

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2010

	iShares MSCI
	Austria Investable Market Index Fund			Belgium Investable Market Index Fund			Emerging Markets Eastern Europe Index Fund			EMU Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	202,558,309		$	152,841,533		$	11,748,388		$	1,193,706,904
Affiliated issuers (Note 2)		21,623,967			84,049			10,541			12,088,021
Total cost of investments	$	224,182,276		$	152,925,582		$	11,758,929		$	1,205,794,925
Investments in securities, at fair value
(including securities on loana) (Note 1):
Unaffiliated issuers	$	131,677,026		$	110,937,177		$	11,686,932		$	819,237,505
Affiliated issuers (Note 2)		21,623,967			84,049			10,541			12,088,021
Total fair value of investments		153,300,993			111,021,226			11,697,473			831,325,526
Foreign currencies, at valueb		20,874			118,495			2,194			844,973
Receivables:
Investment securities sold		1,496,454			–			54,699			1,967,563
Dividends and interest		1,030,730			720,370			1			586,389
Capital shares sold		–			13,663			–			–
Total Assets		155,849,051			111,873,754			11,754,367			834,724,451
LIABILITIES
Payables:
Investment securities purchased		1,537,204			–			48,831			1,424,667
Collateral for securities on loan (Note 5)		21,555,213			–			–			12,015,793
Investment advisory fees (Note 2)		56,042			38,002			6,219			338,032
Total Liabilities		23,148,459			38,002			55,050			13,778,492
NET ASSETS	$	132,700,592		$	111,835,752		$	11,699,317		$	820,945,959
Net assets consist of:
Paid-in capital	$	266,730,101		$	171,963,107		$	11,783,734		$	1,309,880,155
Distributions in excess of net investment income or accumulated net investment loss		(2,347,932	)		(111,162	)		(21,597	)		(867,387	)
Accumulated net realized loss		(60,699,956	)		(18,015,614	)		(1,358	)		(113,531,316	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(70,981,621	)		(42,000,579	)		(61,462	)		(374,535,493	)
NET ASSETS	$	132,700,592		$	111,835,752		$	11,699,317		$	820,945,959
Shares outstandingc		7,200,000			8,920,000			450,000			24,400,000
Net asset value per share	$	18.43		$	12.54		$	26.00		$	33.65

^a Securities on loan with values of $20,174,804, $—, $— and $11,428,242, respectively. See Note 5.

^b Cost of foreign currencies: $21,841, $118,495, $2,256 and $868,031, respectively.

^c $0.001 par value, number of shares authorized: 100 million, 136.2 million, 200 million and 1 billion, respectively.

See notes to financial statements.

44 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2010

	iShares MSCI
	France Index Fund			Germany Index Fund			Italy Index Fund			Netherlands Investable Market Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	394,188,878		$	1,018,496,316		$	168,695,299		$	143,043,330
Affiliated issuers (Note 2)		7,845,285			7,408,374			2,462,257			697,310
Total cost of investments	$	402,034,163		$	1,025,904,690		$	171,157,556		$	143,740,640
Investments in securities, at fair value
(including securities on loana) (Note 1):
Unaffiliated issuers	$	292,560,815		$	765,271,949		$	109,604,824		$	106,300,846
Affiliated issuers (Note 2)		7,845,285			7,408,374			2,462,257			697,310
Total fair value of investments		300,406,100			772,680,323			112,067,081			106,998,156
Foreign currencies, at valueb		75,465			570,945			73,466			101,459
Receivables:
Investment securities sold		1,933,524			3,063,870			312			–
Dividends and interest		50,729			289,009			295			142,332
Total Assets		302,465,818			776,604,147			112,141,154			107,241,947
LIABILITIES
Payables:
Investment securities purchased		1,505,450			2,243,359			–			–
Collateral for securities on loan (Note 5)		7,830,279			7,364,225			2,393,827			590,570
Capital shares redeemed		–			86,219			–			–
Investment advisory fees (Note 2)		119,751			360,421			46,235			41,561
Total Liabilities		9,455,480			10,054,224			2,440,062			632,131
NET ASSETS	$	293,010,338		$	766,549,923		$	109,701,092		$	106,609,816
Net assets consist of:
Paid-in capital	$	414,382,393		$	1,122,789,949		$	198,440,248		$	183,794,026
Undistributed (distributions in excess of) net investment income (accumulated net investment loss)		(264,632	)		(298,212	)		(162,443	)		64,635
Accumulated net realized loss		(19,480,436	)		(102,692,238	)		(29,486,241	)		(40,505,829	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(101,626,987	)		(253,249,576	)		(59,090,472	)		(36,743,016	)
NET ASSETS	$	293,010,338		$	766,549,923		$	109,701,092		$	106,609,816
Shares outstandingc		12,400,000			38,100,000			6,450,000			5,600,000
Net asset value per share	$	23.63		$	20.12		$	17.01		$	19.04

^a Securities on loan with values of $7,455,686, $7,001,848, $2,260,881 and $561,475, respectively. See Note 5.

^b Cost of foreign currencies: $74,784, $587,309, $73,466 and $101,459, respectively.

^c $0.001 par value, number of shares authorized: 340.2 million, 382.2 million, 63.6 million and 255 million, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 45

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2010

	iShares MSCI
	Spain Index Fund			Sweden Index Fund			Switzerland Index Fund			United Kingdom Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	352,987,256		$	256,314,872		$	340,561,319		$	1,075,207,044
Affiliated issuers (Note 2)		16,441,874			2,376,768			350,827			810,826
Total cost of investments	$	369,429,130		$	258,691,640		$	340,912,146		$	1,076,017,870
Investments in securities, at fair value
(including securities on loana) (Note 1):
Unaffiliated issuers	$	233,989,936		$	199,909,686		$	316,627,109		$	888,604,045
Affiliated issuers (Note 2)		16,441,874			2,376,768			350,827			810,826
Total fair value of investments		250,431,810			202,286,454			316,977,936			889,414,871
Foreign currencies, at valueb		392,902			172,764			267,193			1,397,095
Receivables:
Investment securities sold		–			6,992,995			–			384,998
Dividends and interest		92,014			–			2,507,553			4,779,417
Total Assets		250,916,726			209,452,213			319,752,682			895,976,381
LIABILITIES
Payables:
Investment securities purchased		–			6,698,541			–			694,959
Collateral for securities on loan (Note 5)		16,412,893			2,332,441			–			743,298
Investment advisory fees (Note 2)		97,833			80,683			128,396			366,733
Total Liabilities		16,510,726			9,111,665			128,396			1,804,990
NET ASSETS	$	234,406,000		$	200,340,548		$	319,624,286		$	894,171,391
Net assets consist of:
Paid-in capital	$	380,823,297		$	284,112,921		$	380,709,527		$	1,187,056,209
Undistributed net investment income (accumulated net investment loss)		1,157,953			(641,627	)		(902,848	)		4,642,667
Accumulated net realized loss		(28,573,481	)		(26,728,488	)		(36,239,972	)		(110,752,906	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(119,001,769	)		(56,402,258	)		(23,942,421	)		(186,774,579	)
NET ASSETS	$	234,406,000		$	200,340,548		$	319,624,286		$	894,171,391
Shares outstandingc		5,775,000			8,400,000			14,625,000			58,600,000
Net asset value per share	$	40.59		$	23.85		$	21.85		$	15.26

^a Securities on loan with values of $15,590,749, $2,217,978, $— and $700,896, respectively. See Note 5.

^b Cost of foreign currencies: $392,902, $169,836, $267,194 and $1,433,071, respectively.

^c $0.001 par value, number of shares authorized: 127.8 million, 63.6 million, 318.625 million and 934.2 million, respectively.

See notes to financial statements.

46 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2010

	iShares MSCI
	Austria Investable Market Index Fund			Belgium Investable Market Index Fund			Emerging Markets Eastern Europe Index Funda			EMU Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersb	$	1,330,156		$	171,693		$	1,538		$	5,862,521
Interest from affiliated issuers (Note 2)		54			16			1			153
Securities lending income from affiliated issuers (Note 2)		294,129			2,595			–			71,122
Total investment income		1,624,339			174,304			1,539			5,933,796
EXPENSES
Investment advisory fees (Note 2)		509,589			197,207			23,136			2,399,384
Total expenses		509,589			197,207			23,136			2,399,384
Net investment income (loss)		1,114,750			(22,903	)		(21,597	)		3,534,412
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(11,905,146	)		(1,030,894	)		(1,416	)		(14,271,500	)
In-kind redemptions		13,180,985			6,028,230			–			19,793,946
Foreign currency transactions		(17,626	)		(14,781	)		58			(61,754	)
Net realized gain (loss)		1,258,213			4,982,555			(1,358	)		5,460,692
Net change in unrealized appreciation (depreciation) on:
Investments		(11,169,638	)		786,912			(61,456	)		(59,761,892	)
Translation of assets and liabilities in foreign currencies		(53,602	)		(45,735	)		(6	)		(88,791	)
Net change in unrealized appreciation (depreciation)		(11,223,240	)		741,177			(61,462	)		(59,850,683	)
Net realized and unrealized gain (loss)		(9,965,027	)		5,723,732			(62,820	)		(54,389,991	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(8,850,277	)	$	5,700,829		$	(84,417	)	$	(50,855,579	)

^a For the period from September 30, 2009 (commencement of operations) to February 28, 2010.

^b Net of foreign withholding tax of $40,153, $26,344, $271 and $880,322, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 47

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2010

	iShares MSCI
	France Index Fund			Germany Index Fund			Italy Index Fund			Netherlands Investable Market Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	1,585,913		$	2,127,760		$	1,271,899		$	371,503
Interest from affiliated issuers (Note 2)		51			129			26			21
Securities lending income from affiliated issuers (Note 2)		8,525			112,438			1,824			4,924
Total investment income		1,594,489			2,240,327			1,273,749			376,448
EXPENSES
Investment advisory fees (Note 2)		816,196			2,390,410			375,541			247,574
Total expenses		816,196			2,390,410			375,541			247,574
Net investment income (loss)		778,293			(150,083	)		898,208			128,874
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(6,123,754	)		(15,637,372	)		(4,133,811	)		(3,206,118	)
In-kind redemptions		8,701,849			36,005,847			7,333,947			1,353,670
Foreign currency transactions		3,931			97,488			(6,800	)		(114,883	)
Net realized gain (loss)		2,582,026			20,465,963			3,193,336			(1,967,331	)
Net change in unrealized appreciation (depreciation) on:
Investments		(16,089,341	)		(72,480,324	)		(14,680,450	)		4,720,123
Translation of assets and liabilities in foreign currencies		108			(144,565	)		(192	)		(1,373	)
Net change in unrealized appreciation (depreciation)		(16,089,233	)		(72,624,889	)		(14,680,642	)		4,718,750
Net realized and unrealized gain (loss)		(13,507,207	)		(52,158,926	)		(11,487,306	)		2,751,419
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(12,728,914	)	$	(52,309,009	)	$	(10,589,098	)	$	2,880,293

^a Net of foreign withholding tax of $270,894, $375,482, $219,818 and $65,559, respectively.

See notes to financial statements.

48 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2010

	iShares MSCI
	Spain Index Fund			Sweden Index Fund			Switzerland Index Fund			United Kingdom Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	5,614,321		$	60,352		$	58,561		$	12,908,048
Dividends from affiliated issuers (Note 2)		–			–			–			77,129
Interest from affiliated issuers (Note 2)		73			24			96			132
Securities lending income from affiliated issuers (Note 2)		151,518			11,963			37			2,593
Total investment income		5,765,912			72,339			58,694			12,987,902
EXPENSES
Investment advisory fees (Note 2)		792,119			539,512			788,604			2,351,866
Total expenses		792,119			539,512			788,604			2,351,866
Net investment income (loss)		4,973,793			(467,173	)		(729,910	)		10,636,036
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(6,165,683	)		(4,934,488	)		(1,828,747	)		(16,329,797	)
Investments in affiliated issuers (Note 2)		–			–			–			1,499,143
In-kind redemptions		8,471,174			6,584,661			4,380,757			28,182,715
Foreign currency transactions		(31,682	)		(4,042	)		5,461			(444,602	)
Net realized gain		2,273,809			1,646,131			2,557,471			12,907,459
Net change in unrealized appreciation (depreciation) on:
Investments		(40,603,036	)		4,158,898			13,089,568			(3,883,619	)
Translation of assets and liabilities in foreign currencies		(3,634	)		537			(41,493	)		(93,723	)
Net change in unrealized appreciation (depreciation)		(40,606,670	)		4,159,435			13,048,075			(3,977,342	)
Net realized and unrealized gain (loss)		(38,332,861	)		5,805,566			15,605,546			8,930,117
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(33,359,068	)	$	5,338,393		$	14,875,636		$	19,566,153

^a Net of foreign withholding tax of $790,994, $10,651, $38,947 and $188,828, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 49

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, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	1,114,750		$	3,099,628		$	(22,903	)	$	1,365,882
Net realized gain (loss)		1,258,213			(87,858,013	)		4,982,555			(47,188,282	)
Net change in unrealized appreciation (depreciation)		(11,223,240	)		5,402,819			741,177			7,864,840
Net increase (decrease) in net assets resulting from operations		(8,850,277	)		(79,355,566	)		5,700,829			(37,957,560	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(4,769,107	)		(4,361,827	)		(212,415	)		(1,992,257	)
Total distributions to shareholders		(4,769,107	)		(4,361,827	)		(212,415	)		(1,992,257	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		91,402,718			153,297,660			89,857,541			71,837,760
Cost of shares redeemed		(104,748,669	)		(103,516,511	)		(36,552,450	)		(98,800,329	)
Net increase (decrease) in net assets from capital share transactions		(13,345,951	)		49,781,149			53,305,091			(26,962,569	)
INCREASE (DECREASE) IN NET ASSETS		(26,965,335	)		(33,936,244	)		58,793,505			(66,912,386	)
NET ASSETS
Beginning of period		159,665,927			193,602,171			53,042,247			119,954,633
End of period	$	132,700,592		$	159,665,927		$	111,835,752		$	53,042,247
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	(2,347,932	)	$	1,306,425		$	(111,162	)	$	124,156
SHARES ISSUED AND REDEEMED
Shares sold		4,300,000			8,000,000			7,280,000			7,480,000
Shares redeemed		(5,000,000	)		(6,600,000	)		(2,760,000	)		(9,880,000	)
Net increase (decrease) in shares outstanding		(700,000	)		1,400,000			4,520,000			(2,400,000	)

See notes to financial statements.

50 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Emerging Markets Eastern Europe Index Fund			iShares MSCI EMU Index Fund
	Period from September 30, 2009a to February 28, 2010 (Unaudited)			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	(21,597	)	$	3,534,412		$	21,630,080
Net realized gain (loss)		(1,358	)		5,460,692			(230,656,541	)
Net change in unrealized appreciation (depreciation)		(61,462	)		(59,850,683	)		(85,463,372	)
Net decrease in net assets resulting from operations		(84,417	)		(50,855,579	)		(294,489,833	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		–			(7,555,560	)		(28,747,455	)
Total distributions to shareholders		–			(7,555,560	)		(28,747,455	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		11,783,734			266,366,944			245,678,933
Cost of shares redeemed		–			(128,279,736	)		(472,979,784	)
Net increase (decrease) in net assets from capital share transactions		11,783,734			138,087,208			(227,300,851	)
INCREASE (DECREASE) IN NET ASSETS		11,699,317			79,676,069			(550,538,139	)
NET ASSETS
Beginning of period		–			741,269,890			1,291,808,029
End of period	$	11,699,317		$	820,945,959		$	741,269,890
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	(21,597	)	$	(867,387	)	$	3,153,761
SHARES ISSUED AND REDEEMED
Shares sold		450,000			7,000,000			8,100,000
Shares redeemed		–			(3,400,000	)		(15,400,000	)
Net increase (decrease) in shares outstanding		450,000			3,600,000			(7,300,000	)

^a Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI France Index Fund						iShares MSCI Germany Index Fund
	Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	778,293		$	5,159,611		$	(150,083	)	$	13,569,608
Net realized gain (loss)		2,582,026			(62,251,944	)		20,465,963			(135,012,966	)
Net change in unrealized appreciation (depreciation)		(16,089,233	)		(18,839,973	)		(72,624,889	)		(22,143,511	)
Net decrease in net assets resulting from operations		(12,728,914	)		(75,932,306	)		(52,309,009	)		(143,586,869	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,602,485	)		(6,641,215	)		(636,125	)		(14,693,409	)
Total distributions to shareholders		(1,602,485	)		(6,641,215	)		(636,125	)		(14,693,409	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		197,105,175			138,974,524			503,251,193			443,092,148
Cost of shares redeemed		(74,274,830	)		(99,092,138	)		(303,393,883	)		(334,626,102	)
Net increase in net assets from capital share transactions		122,830,345			39,882,386			199,857,310			108,466,046
INCREASE (DECREASE) IN NET ASSETS		108,498,946			(42,691,135	)		146,912,176			(49,814,232	)
NET ASSETS
Beginning of period		184,511,392			227,202,527			619,637,747			669,451,979
End of period	$	293,010,338		$	184,511,392		$	766,549,923		$	619,637,747
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	(264,632	)	$	559,560		$	(298,212	)	$	487,996
SHARES ISSUED AND REDEEMED
Shares sold		7,800,000			5,600,000			22,800,000			23,400,000
Shares redeemed		(3,000,000	)		(5,400,000	)		(14,400,000	)		(18,000,000	)
Net increase in shares outstanding		4,800,000			200,000			8,400,000			5,400,000

See notes to financial statements.

52 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Italy Index Fund						iShares MSCI Netherlands Investable Market Index Fund
	Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	898,208		$	2,932,100		$	128,874		$	2,396,987
Net realized gain (loss)		3,193,336			(71,721,832	)		(1,967,331	)		(62,756,045	)
Net change in unrealized appreciation (depreciation)		(14,680,642	)		17,636,967			4,718,750			(4,703,274	)
Net increase (decrease) in net assets resulting from operations		(10,589,098	)		(51,152,765	)		2,880,293			(65,062,332	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,542,082	)		(3,732,985	)		(495,560	)		(4,230,257	)
Total distributions to shareholders		(1,542,082	)		(3,732,985	)		(495,560	)		(4,230,257	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		31,857,655			100,094,796			35,836,582			43,167,203
Cost of shares redeemed		(35,741,308	)		(163,647,572	)		(14,962,642	)		(100,176,018	)
Net increase (decrease) in net assets from capital share transactions		(3,883,653	)		(63,552,776	)		20,873,940			(57,008,815	)
INCREASE (DECREASE) IN NET ASSETS		(16,014,833	)		(118,438,526	)		23,258,673			(126,301,404	)
NET ASSETS
Beginning of period		125,715,925			244,154,451			83,351,143			209,652,547
End of period	$	109,701,092		$	125,715,925		$	106,609,816		$	83,351,143
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(162,443	)	$	481,431		$	64,635		$	431,321
SHARES ISSUED AND REDEEMED
Shares sold		1,650,000			5,850,000			1,850,000			2,350,000
Shares redeemed		(1,800,000	)		(9,000,000	)		(750,000	)		(6,450,000	)
Net increase (decrease) in shares outstanding		(150,000	)		(3,150,000	)		1,100,000			(4,100,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 53

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC

	iShares MSCI Spain Index Fund						iShares MSCI Sweden Index Fund
	Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	4,973,793		$	10,459,303		$	(467,173	)	$	3,182,626
Net realized gain (loss)		2,273,809			(75,719,084	)		1,646,131			(52,284,424	)
Net change in unrealized appreciation (depreciation)		(40,606,670	)		22,806,027			4,159,435			18,464,900
Net increase (decrease) in net assets resulting from operations		(33,359,068	)		(42,453,754	)		5,338,393			(30,636,898	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(7,332,172	)		(13,662,798	)		(473,737	)		(3,282,327	)
Total distributions to shareholders		(7,332,172	)		(13,662,798	)		(473,737	)		(3,282,327	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		39,820,657			168,127,511			64,246,465			119,540,017
Cost of shares redeemed		(43,457,850	)		(154,625,074	)		(59,103,304	)		(122,941,857	)
Net increase (decrease) in net assets from capital share transactions		(3,637,193	)		13,502,437			5,143,161			(3,401,840	)
INCREASE (DECREASE) IN NET ASSETS		(44,328,433	)		(42,614,115	)		10,007,817			(37,321,065	)
NET ASSETS
Beginning of period		278,734,433			321,348,548			190,332,731			227,653,796
End of period	$	234,406,000		$	278,734,433		$	200,340,548		$	190,332,731
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period	$	1,157,953		$	3,516,332		$	(641,627	)	$	299,283
SHARES ISSUED AND REDEEMED
Shares sold		825,000			4,200,000			2,625,000			6,675,000
Shares redeemed		(900,000	)		(4,725,000	)		(2,550,000	)		(7,650,000	)
Net increase (decrease) in shares outstanding		(75,000	)		(525,000	)		75,000			(975,000	)

See notes to financial statements.

54 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC

	iShares MSCI Switzerland Index Fund						iShares MSCI United Kingdom Index Fund
	Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	(729,910	)	$	3,684,012		$	10,636,036		$	22,176,317
Net realized gain (loss)		2,557,471			(66,136,127	)		12,907,459			(108,752,296	)
Net change in unrealized appreciation (depreciation)		13,048,075			(2,696,547	)		(3,977,342	)		(66,350,023	)
Net increase (decrease) in net assets resulting from operations		14,875,636			(65,148,662	)		19,566,153			(152,926,002	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(546,711	)		(4,322,291	)		(10,720,979	)		(25,389,028	)
Total distributions to shareholders		(546,711	)		(4,322,291	)		(10,720,979	)		(25,389,028	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		52,466,711			105,041,546			219,193,251			148,897,281
Cost of shares redeemed		(19,026,290	)		(130,240,566	)		(72,991,395	)		(113,959,957	)
Net increase (decrease) in net assets from capital share transactions		33,440,421			(25,199,020	)		146,201,856			34,937,324
INCREASE (DECREASE) IN NET ASSETS		47,769,346			(94,669,973	)		155,047,030			(143,377,706	)
NET ASSETS
Beginning of period		271,854,940			366,524,913			739,124,361			882,502,067
End of period	$	319,624,286		$	271,854,940		$	894,171,391		$	739,124,361
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period	$	(902,848	)	$	373,773		$	4,642,667		$	4,727,610
SHARES ISSUED AND REDEEMED
Shares sold		2,375,000			5,125,000			14,000,000			12,400,000
Shares redeemed		(875,000	)		(7,875,000	)		(4,600,000	)		(8,800,000	)
Net increase (decrease) in shares outstanding		1,500,000			(2,750,000	)		9,400,000			3,600,000

See notes to financial statements.

FINANCIAL STATEMENTS 55

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Austria Investable Market Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	20.21		$	29.78		$	37.28		$	31.08		$	26.62		$	17.04
Income from investment operations:
Net investment incomea		0.12			0.51			0.56			0.51			0.44			0.29
Net realized and unrealized gain (loss)		(1.31	)		(9.36	)		(6.98	)		6.42			4.31			9.38
Total from investment operations		(1.19	)		(8.85	)		(6.42	)		6.93			4.75			9.67
Less distributions from:
Net investment income		(0.59	)		(0.72	)		(1.08	)		(0.73	)		(0.29	)		(0.09	)
Total distributions		(0.59	)		(0.72	)		(1.08	)		(0.73	)		(0.29	)		(0.09	)
Net asset value, end of period	$	18.43		$	20.21		$	29.78		$	37.28		$	31.08		$	26.62
Total return		(6.04	)%b		(28.52	)%		(17.64	)%		22.35	%		18.00	%		56.82	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	132,701		$	159,666		$	193,602		$	473,514		$	391,637		$	196,952
Ratio of expenses to average net assetsc		0.54	%		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		1.17	%		3.25	%		1.57	%		1.36	%		1.48	%		1.26	%
Portfolio turnover ratesd		5	%		26	%		26	%		21	%		32	%		21	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

56 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Belgium Investable Market Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	12.06		$	17.64		$	25.89		$	22.83		$	18.94		$	14.77
Income from investment operations:
Net investment income (loss)a		(0.00	)b		0.22			0.78			0.76			0.75			0.71
Net realized and unrealized gain (loss)		0.52			(5.46	)		(7.27	)		2.74			3.95			3.75
Total from investment operations		0.52			(5.24	)		(6.49	)		3.50			4.70			4.46
Less distributions from:
Net investment income		(0.04	)		(0.34	)		(1.76	)		(0.44	)		(0.81	)		(0.29	)
Total distributions		(0.04	)		(0.34	)		(1.76	)		(0.44	)		(0.81	)		(0.29	)
Net asset value, end of period	$	12.54		$	12.06		$	17.64		$	25.89		$	22.83		$	18.94
Total return		4.43	%c		(29.15	)%		(26.21	)%		15.36	%		25.66	%		30.22	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	111,836		$	53,042		$	119,955		$	303,483		$	152,484		$	46,960
Ratio of expenses to average net assetsd		0.54	%		0.56	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income (loss) to average net assetsd		(0.06	)%		2.23	%		3.32	%		2.90	%		3.60	%		3.89	%
Portfolio turnover ratee		6	%		33	%		31	%		12	%		10	%		10	%

^a Based on average shares outstanding throughout each period.

^b Rounds to less than $0.01.

^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 period)

	iShares MSCI Emerging Markets Eastern Europe Index Fund
	Period from Sep. 30, 2009a to Feb. 28, 2010 (Unaudited)
Net asset value, beginning of period	$	24.65
Income from investment operations:
Net investment lossb		(0.07	)
Net realized and unrealized gain		1.42
Total from investment operations		1.35
Net asset value, end of period	$	26.00
Total return		5.48	%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	11,699
Ratio of expenses to average net assetsd		0.69	%
Ratio of net investment loss to average net assetsd		(0.64	)%
Portfolio turnover ratee		2	%

^a Commencement of operations.

^b Based on average shares outstanding throughout the period.

^c Not annualized.

^d Annualized for periods of less than one year.

^e Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing captial share transactions in Creation Units.

See notes to financial statements.

58 2010 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a			Year ended Aug. 31, 2005a
Net asset value, beginning of period	$	35.64		$	45.97		$	57.15		$	46.14		$	37.49		$	29.69
Income from investment operations:
Net investment incomeb		0.15			0.93			1.71			1.40			1.37			0.88
Net realized and unrealized gain (loss)		(1.84	)		(9.97	)		(9.59	)		10.54			7.94			7.57
Total from investment operations		(1.69	)		(9.04	)		(7.88	)		11.94			9.31			8.45
Less distributions from:
Net investment income		(0.30	)		(1.29	)		(3.30	)		(0.93	)		(0.66	)		(0.65	)
Total distributions		(0.30	)		(1.29	)		(3.30	)		(0.93	)		(0.66	)		(0.65	)
Net asset value, end of period	$	33.65		$	35.64		$	45.97		$	57.15		$	46.14		$	37.49
Total return		(4.83	)%c		(19.05	)%		(14.52	)%		26.10	%		25.18	%		28.54	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	820,946		$	741,270		$	1,291,808		$	2,971,565		$	1,794,921		$	547,284
Ratio of expenses to average net assetsd		0.54	%		0.56	%		0.52	%		0.51	%		0.54	%		0.58	%
Ratio of expenses to average net assets exclusive of foreign taxes		n/a			0.56	%		n/a			n/a			n/a			0.57	%
Ratio of net investment income to average net assetsd		0.79	%		3.07	%		3.06	%		2.60	%		3.23	%		2.50	%
Portfolio turnover ratee		2	%		8	%		27	%		5	%		8	%		8	%

^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 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 France Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	24.28		$	30.70		$	36.53		$	31.16		$	25.41		$	20.40
Income from investment operations:
Net investment incomea		0.06			0.66			0.93			0.77			0.55			0.47
Net realized and unrealized gain (loss)		(0.59	)		(6.13	)		(5.17	)		5.06			5.52			4.84
Total from investment operations		(0.53	)		(5.47	)		(4.24	)		5.83			6.07			5.31
Less distributions from:
Net investment income		(0.12	)		(0.95	)		(1.59	)		(0.46	)		(0.32	)		(0.30	)
Total distributions		(0.12	)		(0.95	)		(1.59	)		(0.46	)		(0.32	)		(0.30	)
Net asset value, end of period	$	23.63		$	24.28		$	30.70		$	36.53		$	31.16		$	25.41
Total return		(2.22	)%b		(17.11	)%		(11.96	)%		18.83	%		24.13	%		26.13	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	293,010		$	184,511		$	227,203		$	445,696		$	211,886		$	81,326
Ratio of expenses to average net assetsc		0.54	%		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		0.51	%		3.18	%		2.60	%		2.17	%		1.95	%		1.98	%
Portfolio turnover rated		3	%		6	%		10	%		6	%		10	%		7	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

60 2010 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	20.86		$	27.55		$	32.18		$	23.68		$	19.08		$	14.96
Income from investment operations:
Net investment income (loss)a		(0.00	)b		0.58			0.88			0.68			0.57			0.28
Net realized and unrealized gain (loss)		(0.73	)		(6.65	)		(3.84	)		8.33			4.15			4.03
Total from investment operations		(0.73	)		(6.07	)		(2.96	)		9.01			4.72			4.31
Less distributions from:
Net investment income		(0.01	)		(0.62	)		(1.67	)		(0.51	)		(0.12	)		(0.19	)
Total distributions		(0.01	)		(0.62	)		(1.67	)		(0.51	)		(0.12	)		(0.19	)
Net asset value, end of period	$	20.12		$	20.86		$	27.55		$	32.18		$	23.68		$	19.08
Total return		(3.49	)%c		(21.62	)%		(9.81	)%		38.47	%		24.82	%		28.89	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	766,550		$	619,638		$	669,452		$	1,641,245		$	802,795		$	314,793
Ratio of expenses to average net assetsd		0.54	%		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income (loss) to average net assetsd		(0.03	)%		3.18	%		2.72	%		2.32	%		2.62	%		1.54	%
Portfolio turnover ratee		2	%		15	%		11	%		4	%		12	%		9	%

^a Based on average shares outstanding throughout each period.

^b Rounds to less than $0.01.

^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 Italy Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	19.05		$	25.04		$	33.82		$	30.48		$	25.77		$	20.21
Income from investment operations:
Net investment incomea		0.12			0.47			1.53			1.35			1.07			0.78
Net realized and unrealized gain (loss)		(1.94	)		(5.82	)		(7.71	)		2.66			4.15			5.42
Total from investment operations		(1.82	)		(5.35	)		(6.18	)		4.01			5.22			6.20
Less distributions from:
Net investment income		(0.22	)		(0.64	)		(2.60	)		(0.67	)		(0.51	)		(0.64	)
Total distributions		(0.22	)		(0.64	)		(2.60	)		(0.67	)		(0.51	)		(0.64	)
Net asset value, end of period	$	17.01		$	19.05		$	25.04		$	33.82		$	30.48		$	25.77
Total return		(9.70	)%b		(20.78	)%		(19.43	)%		13.20	%		20.61	%		30.74	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	109,701		$	125,716		$	244,154		$	172,495		$	146,324		$	42,526
Ratio of expenses to average net assetsc		0.54	%		0.59	%		0.52	%		0.52	%		0.54	%		0.57	%
Ratio of expenses to average net assets exclusive of foreign taxes		n/a			0.55	%		n/a			n/a			n/a			n/a
Ratio of net investment income to average net assetsc		1.28	%		2.85	%		5.06	%		4.02	%		3.87	%		3.18	%
Portfolio turnover rated		4	%		18	%		29	%		16	%		15	%		18	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

62 2010 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	18.52		$	24.38		$	29.75		$	24.17		$	19.10		$	15.70
Income from investment operations:
Net investment incomea		0.03			0.35			1.10			0.98			0.60			0.57
Net realized and unrealized gain (loss)		0.61			(5.55	)		(4.68	)		5.05			4.95			3.09
Total from investment operations		0.64			(5.20	)		(3.58	)		6.03			5.55			3.66
Less distributions from:
Net investment income		(0.12	)		(0.66	)		(1.79	)		(0.45	)		(0.48	)		(0.26	)
Total distributions		(0.12	)		(0.66	)		(1.79	)		(0.45	)		(0.48	)		(0.26	)
Net asset value, end of period	$	19.04		$	18.52		$	24.38		$	29.75		$	24.17		$	19.10
Total return		3.39	%b		(20.59	)%		(12.67	)%		25.22	%		29.53	%		23.40	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	106,610		$	83,351		$	209,653		$	251,354		$	109,991		$	63,974
Ratio of expenses to average net assetsc		0.54	%		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		0.28	%		2.24	%		3.86	%		3.50	%		2.78	%		3.13	%
Portfolio turnover rated		6	%		15	%		26	%		8	%		17	%		6	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 63

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Spain Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	47.65		$	50.41		$	58.06		$	44.81		$	35.70		$	27.55
Income from investment operations:
Net investment incomea		0.81			1.75			1.98			1.30			1.07			0.79
Net realized and unrealized gain (loss)		(6.65	)		(2.14	)		(7.33	)		12.33			8.78			7.97
Total from investment operations		(5.84	)		(0.39	)		(5.35	)		13.63			9.85			8.76
Less distributions from:
Net investment income		(1.22	)		(2.37	)		(2.30	)		(0.38	)		(0.74	)		(0.61	)
Total distributions		(1.22	)		(2.37	)		(2.30	)		(0.38	)		(0.74	)		(0.61	)
Net asset value, end of period	$	40.59		$	47.65		$	50.41		$	58.06		$	44.81		$	35.70
Total return		(12.62	)%b		0.64	%		(9.76	)%		30.47	%		28.09	%		31.85	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	234,406		$	278,734		$	321,349		$	522,556		$	178,130		$	66,945
Ratio of expenses to average net assetsc		0.54	%		0.56	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		3.37	%		4.70	%		3.28	%		2.36	%		2.67	%		2.33	%
Portfolio turnover rated		5	%		19	%		22	%		12	%		6	%		8	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

64 2010 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	22.86		$	24.48		$	34.57		$	25.88		$	21.58		$	16.82
Income from investment operations:
Net investment income (loss)a		(0.05	)		0.40			0.91			1.15			0.76			0.46
Net realized and unrealized gain (loss)		1.10			(1.56	)		(8.63	)		7.88			3.96			4.45
Total from investment operations		1.05			(1.16	)		(7.72	)		9.03			4.72			4.91
Less distributions from:
Net investment income		(0.06	)		(0.46	)		(2.37	)		(0.34	)		(0.42	)		(0.15	)
Total distributions		(0.06	)		(0.46	)		(2.37	)		(0.34	)		(0.42	)		(0.15	)
Net asset value, end of period	$	23.85		$	22.86		$	24.48		$	34.57		$	25.88		$	21.58
Total return		4.59	%b		(4.04	)%		(23.16	)%		35.01	%		22.16	%		29.21	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	200,341		$	190,333		$	227,654		$	573,026		$	151,427		$	61,513
Ratio of expenses to average net assetsc		0.54	%		0.55	%		0.51	%		0.51	%		0.54	%		0.58	%
Ratio of expenses to average net assets exclusive of foreign taxes		n/a			n/a			n/a			n/a			n/a			0.57	%
Ratio of net investment income (loss) to average net assetsc		(0.46	)%		2.34	%		2.91	%		3.42	%		3.13	%		2.28	%
Portfolio turnover rated		4	%		9	%		17	%		7	%		14	%		6	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 65

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Switzerland Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	20.71		$	23.09		$	25.78		$	22.49		$	17.63		$	14.58
Income from investment operations:
Net investment income (loss)a		(0.05	)		0.25			0.49			0.36			0.27			0.22
Net realized and unrealized gain (loss)		1.23			(2.30	)		(2.51	)		3.12			4.71			2.92
Total from investment operations		1.18			(2.05	)		(2.02	)		3.48			4.98			3.14
Less distributions from:
Net investment income		(0.04	)		(0.33	)		(0.67	)		(0.19	)		(0.12	)		(0.09	)
Total distributions		(0.04	)		(0.33	)		(0.67	)		(0.19	)		(0.12	)		(0.09	)
Net asset value, end of period	$	21.85		$	20.71		$	23.09		$	25.78		$	22.49		$	17.63
Total return		5.70	%b		(8.63	)%		(7.97	)%		15.53	%		28.36	%		21.54	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	319,624		$	271,855		$	366,525		$	318,998		$	188,319		$	79,324
Ratio of expenses to average net assetsc		0.54	%		0.56	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income (loss) to average net assetsc		(0.50	)%		1.42	%		1.93	%		1.42	%		1.34	%		1.34	%
Portfolio turnover rated		3	%		16	%		11	%		5	%		11	%		5	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

66 2010 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	15.02		$	19.35		$	24.73		$	21.92		$	18.74		$	15.72
Income from investment operations:
Net investment incomea		0.19			0.50			0.83			0.84			0.97			0.60
Net realized and unrealized gain (loss)		0.24			(4.26	)		(4.89	)		2.78			2.79			2.76
Total from investment operations		0.43			(3.76	)		(4.06	)		3.62			3.76			3.36
Less distributions from:
Net investment income		(0.19	)		(0.57	)		(1.32	)		(0.81	)		(0.58	)		(0.34	)
Total distributions		(0.19	)		(0.57	)		(1.32	)		(0.81	)		(0.58	)		(0.34	)
Net asset value, end of period	$	15.26		$	15.02		$	19.35		$	24.73		$	21.92		$	18.74
Total return		2.79	%b		(18.68	)%		(17.16	)%		16.77	%		20.61	%		21.53	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	894,171		$	739,124		$	882,502		$	1,127,738		$	872,409		$	464,850
Ratio of expenses to average net assetsc		0.54	%		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		2.43	%		3.90	%		3.64	%		3.51	%		4.81	%		3.39	%
Portfolio turnover rated		3	%		11	%		14	%		8	%		10	%		11	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 67

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 Emerging Markets Eastern Europe, 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 iShares MSCI Emerging Markets Eastern Europe Index Fund commenced operations on September 30, 2009.

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. 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 non-U.S. issuers that may trade in non-U.S. markets. This 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 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”) using 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 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 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”);

68 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

• 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”).

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.

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. 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. 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 inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include 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 Level 2 investments 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.

NOTES TO FINANCIAL STATEMENTS 69

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, recent transactions in the same or similar investments, 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 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.

As of February 28, 2010, the values of each Fund’s investments were classified as Level 1 Prices. The breakdown of each Fund’s investments into major categories is disclosed in its respective Schedule of Investments.

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. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. 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. 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, 2010, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions to shareholders from net investment income, if any, 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.

70 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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, 2010.

The Funds had tax basis net capital loss carryforwards as of August 31, 2009, 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		Expiring 2017		Total
Austria Investable
Market	$	1,291,324	$	370,948	$	855,364	$	–	$	–	$	9,795,917	$	2,587,916	$	7,102,366	$	22,003,835
Belgium Investable
Market		1,677,678		117,767		175,781		33,969		–		–		1,698,444		5,953,120		9,656,759
EMU		–		–		659,648		1,873,963		–		–		–		26,644,200		29,177,811
France		2,436,748		236,944		2,400,550		–		–		158,472		335,795		3,408,374		8,976,883
Germany		8,697,227		5,469,732		8,656,712		2,241,687		–		4,227,713		3,394,735		27,790,050		60,477,856
Italy		2,648,775		848,408		541,980		527,327		–		–		472,268		2,743,650		7,782,408
Netherlands
Investable Market		3,222,792		1,497,810		2,481,175		129,137		403,525		260,715		1,195,162		5,819,153		15,009,469
Spain		–		–		995,671		–		–		–		–		5,946,927		6,942,598
Sweden		713,472		1,577,551		1,149,514		–		107,613		–		100,015		13,686,746		17,334,911
Switzerland		1,970,979		1,018,305		2,149,171		354,252		–		–		–		2,837,786		8,330,493
United Kingdom		856,798		6,448,554		4,272,059		1,517,783		7,063,063		–		261,754		16,140,312		36,560,323

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.

NOTES TO FINANCIAL STATEMENTS 71

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

As of February 28, 2010, 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	$	232,447,235	$	–	$	(79,146,242	)	$	(79,146,242	)
Belgium Investable Market		153,799,609		3,404,867		(46,183,250	)		(42,778,383	)
Emerging Markets Eastern Europe		11,764,009		374,659		(441,195	)		(66,536	)
EMU		1,223,606,325		–		(392,280,799	)		(392,280,799	)
France		408,819,035		–		(108,412,935	)		(108,412,935	)
Germany		1,034,175,553		–		(261,495,230	)		(261,495,230	)
Italy		178,460,877		–		(66,393,796	)		(66,393,796	)
Netherlands Investable Market		146,694,518		–		(39,696,362	)		(39,696,362	)
Spain		375,543,380		–		(125,111,570	)		(125,111,570	)
Sweden		260,397,705		–		(58,111,251	)		(58,111,251	)
Switzerland		348,294,731		2,639,132		(33,955,927	)		(31,316,795	)
United Kingdom		1,135,968,221		–		(246,553,350	)		(246,553,350	)

Management has reviewed the tax positions as of February 28, 2010, 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. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

On December 1, 2009, Barclays PLC (“Barclays”) completed the sale of its interest in BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A., and certain affiliated companies to BlackRock, Inc. (“BlackRock”, and such sale, the “Transaction”). BTC is a wholly-owned subsidiary of BlackRock.

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.

Under the 1940 Act, upon completion of the Transaction on December 1, 2009, each Fund’s investment advisory agreement with BlackRock Fund Advisors (“BFA”), formerly known as Barclays Global Fund Advisors, was automatically terminated. The Board and shareholders of the Funds approved a new investment advisory agreement with BFA. The investment advisory fee rates and expense arrangements for the Funds remained the same after the Transaction.

Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA 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.

72 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

For its investment advisory services to the Funds, except for the iShares MSCI Emerging Markets Eastern Europe Index Fund, BFA 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

For its investment advisory services to the iShares MSCI Emerging Markets Eastern Europe Index Fund, BFA 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

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BTC to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA, the Funds’ investment adviser. As securities lending agent, BTC 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, 2010, BTC earned securities lending agent fees as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees	iShares MSCI Index Fund	Securities Lending Agent Fees
Austria Investable Market	$187,176	Netherlands Investable Market	$2,824
Belgium Investable Market	2,208	Spain	128,046
EMU	57,847	Sweden	11,698
France	5,963	Switzerland	36
Germany	81,005	United Kingdom	1,663
Italy	1,341

Cross trades for the six months ended February 28, 2010, 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 BFA (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 its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in interest from affiliated issuers in the Statements of Operations.

NOTES TO FINANCIAL STATEMENTS 73

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Investments in issuers considered to be an affiliate of the iShares MSCI United Kingdom Index Fund (excluding short-term investments) during the period September 1, 2009 to November 30, 2009, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Name of Affiliated Issuer	Number of Shares Held Beginning of Period (in 000s)	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares Held End of Period (in 000s)	Value at End of Period		Dividend Income		Net Realized Gain
Barclays PLC	4,025	1,003	313	4,715	$	22,623,237	$	77,129	$	1,499,143

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2010 were as follows:

iShares MSCI Index Fund	Purchases		Sales
Austria Investable Market	$	9,147,215	$	12,861,402
Belgium Investable Market		8,125,120		4,417,521
Emerging Markets Eastern Europe		779,906		154,550
EMU		18,122,884		21,824,882
France		9,625,872		9,796,922
Germany		21,353,074		21,007,790
Italy		5,986,349		8,421,107
Netherlands Investable Market		5,598,668		6,413,641
Spain		13,307,554		16,269,243
Sweden		8,461,191		9,774,842
Switzerland		9,404,412		9,841,170
United Kingdom		33,749,915		29,441,553

74 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

In-kind transactions (see Note 4) for the six months ended February 28, 2010 were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Austria Investable Market	$	90,617,263	$	103,743,532
Belgium Investable Market		84,618,152		35,246,861
Emerging Markets Eastern Europe		11,124,448		–
EMU		264,033,163		126,024,140
France		196,494,114		74,219,095
Germany		502,127,765		302,457,141
Italy		30,716,103		32,713,725
Netherlands Investable Market		35,727,439		14,573,233
Spain		39,463,477		43,346,278
Sweden		64,188,696		58,766,928
Switzerland		51,142,094		18,552,247
United Kingdom		214,056,566		72,542,461

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 an optimized 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 Bank and Trust Company, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

5. LOANS OF PORTFOLIO SECURITIES

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

As of February 28, 2010, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The market value of the securities on loan as of February 28, 2010 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 BTC as securities lending agent.

NOTES TO FINANCIAL STATEMENTS 75

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

6. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

76 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Meeting Results (Unaudited)

iSHARES^®, INC.

Two separate special meetings of shareholders of iShares, Inc. were held on November 4, 2009. The shareholder meetings for the iShares MSCI EMU, iShares MSCI Germany and iShares MSCI United Kingdom Index Funds were adjourned until November 19, 2009. The shareholder meetings for the iShares MSCI EMU and iShares MSCI Germany Index Funds were subsequently adjourned until November 30, 2009 and on that date were further adjourned until December 22, 2009, at which time the shareholders approved the new advisory agreement. The proposals acted upon by shareholders at the special meetings and the results of the shareholder vote were as follows:

First Meeting

Shareholders of the Funds approved Proposals 1 and 2.

Proposal 1

To approve a new investment advisory agreement between the Company and Barclays Global Fund Advisors (“BGFA”), on behalf of each Fund, which took effect upon the consummation of the Barclays PLC binding agreement to sell its interest in BGFA and certain affiliated companies to BlackRock, Inc. (the “Transaction”).

iShares MSCI Index Fund	Votes For	Votes Against	Votes Abstaining	Broker Non-Votes*
Austria Investable Market	3,497,516	93,005	80,370	–
Belgium Investable Market	2,182,463	40,450	34,020	–
EMU	10,373,315	149,452	179,710	688,491
France	3,353,125	242,870	13,337	239,566
Germany	13,026,798	341,596	197,866	724,402
Italy	3,274,995	43,822	15,924	–
Netherlands Investable Market	1,867,181	32,246	76,547	236,317
Spain	3,514,487	43,597	48,613	–
Sweden	3,597,748	106,505	75,575	336,818
Switzerland	5,626,245	129,738	96,869	529,286
United Kingdom	22,567,350	690,495	78,297	1,539,301

Proposal 2

To approve a change in the classification of certain Funds’ investment objective from a fundamental investment policy to a non-fundamental investment policy.

iShares MSCI Index Fund	Votes For	Votes Against	Votes Abstaining	Broker Non-Votes*
EMU	9,540,710	578,282	583,485	688,491
France	3,307,631	283,906	17,795	239,566
Germany	12,707,049	656,577	202,634	724,402
Spain	3,480,067	69,077	57,553	–
Switzerland	5,316,048	288,586	248,218	529,286
United Kingdom	21,682,260	944,875	709,007	1,539,301

SHAREHOLDER MEETING RESULTS 77

Shareholder Meeting Results (Unaudited) (Continued)

iSHARES^®, INC.

Second Meeting

This proposal was approved by the shareholders of the Company on November 4, 2009. All nominees who previously served as Directors of the Company were re-elected and the term of their election commenced immediately. Robert S. Kapito was newly elected as a Director to the Company and the term of his election took effect upon the consummation of the Transaction.

Proposal 1**

To elect a Board of Directors of the Company.

Independent Director	Votes For	Votes Withheld
George G.C. Parker	1,597,646,058	46,083,560
J. Darrell Duffie	1,517,311,684	126,417,934
Cecilia H. Herbert	1,599,757,544	43,972,074
Charles A. Hurty	1,599,463,459	44,266,159
John E. Kerrigan	1,599,938,757	43,790,861
John E. Martinez	1,599,890,206	43,839,412
Robert H. Silver	1,601,631,280	42,098,338
Interested Director	Votes For	Votes Withheld
Robert S. Kapito	1,600,119,598	43,610,020
Lee T. Kranefuss	1,117,041,744	526,687,874

* Broker non-votes are proxies received by the Fund from brokers or nominees who did not receive instructions from the beneficial owner or other persons entitled to vote and who have no discretionary power to vote on a particular matter. Broker non-votes have the effect of a vote against the proposal.

** Denotes Company-wide proposal and voting results.

78 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment

Advisory Contract (Unaudited)

iSHARES^®, INC.

iSHARES MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required to consider and approve the Fund’s entering into an Investment Advisory Contract with BlackRock Fund Advisors (“BFA”) (the “Advisory Contract”). As required by Section 15(c), the Board requested, and BFA provided, such information as the Board deemed reasonably necessary to evaluate the terms of the proposed Advisory Contract.

On December 1, 2009, BlackRock, Inc. (“BlackRock”) completed a transaction whereby it acquired from Barclays Bank PLC (“Barclays”) the interests in BFA, formerly known as Barclays Global Fund Advisors, and certain affiliated companies, including BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A. (the “Transaction”).

Prior to the Transaction, BFA served as the investment advisor to other iShares funds pursuant to an investment advisory agreement with the Company (the “Previous Advisory Agreement”). At a meeting held on June 16-17, 2009, the Board approved the selection of BFA and the Previous Advisory Agreement for the Fund, based on its review of qualitative and quantitative information provided by BFA. However, the Previous Advisory Agreement did not take effect with respect to the Fund, as the Transaction was consummated prior to the Fund’s inception.

BOARD CONSIDERATIONS IN APPROVING THE ADVISORY CONTRACT

At an in-person Board meeting held on August 13, 2009, the Board, including the Independent Directors, unanimously approved the Advisory Contract between the BFA and the Company, on behalf of the Fund after consideration of all factors determined to be relevant to the Board’s deliberations, including those discussed below.

THE APPROVAL PROCESS

At telephonic and in-person meetings held on June 17, July 29 and August 13, 2009, the Board, including the Independent Directors, discussed the Transaction and the Advisory Contract for the Fund.

In preparation for their consideration of the Advisory Contract, the Directors received, in response to a written due diligence request prepared by the Board and its independent counsel and provided to BlackRock, BTC and BFA, comprehensive written information covering a range of issues and received, in response to their additional requests, further information in advance of and at the August 2009 in-person Board meeting. To assist the Board in its consideration of the Advisory Contract, BlackRock provided materials and information about itself, including its history, management, investment, risk management and compliance capabilities and processes, and financial condition, and BFA provided materials and information about the Transaction. In addition, the Independent Directors consulted with their independent legal counsel and Fund counsel on numerous occasions, discussing, among other things, the legal standards and certain other considerations relevant to the Board’s deliberations.

In June 2009, the Board had performed a full annual review of, or initially approved, as applicable, the Previous Advisory Agreement between BFA and the Company, on behalf of other iShares funds as required by the 1940 Act and, after reviewing, among other things, the investment capabilities, resources and personnel of BFA, determined that the nature, extent and quality of the services provided by BFA under the Previous Advisory Agreement were appropriate.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 79

Board Review and Approval of Investment

Advisory Contract (Unaudited) (Continued)

iSHARES^®, INC.

At the June, July and August 2009 Board meetings, the Directors discussed with representatives of BTC, BFA and BlackRock, the management, investment, risk management and compliance capabilities and processes, and financial condition of BlackRock, the Transaction and its rationale, and BlackRock’s general plans and intentions regarding BFA and the iShares funds. At these Board meetings, representatives of BTC, BFA and BlackRock made various presentations to, and responded to questions from, the Board. The Board also inquired about the plans for, and anticipated roles and responsibilities of, the employees and officers of BFA in connection with the Transaction, including the anticipated senior management structure of BFA following the completion of the Transaction. The Independent Directors also conferred separately and with their independent legal counsel about the Transaction and other matters related to the Transaction on a number of occasions. After the presentations and after reviewing the written materials provided, the Independent Directors met in executive sessions with their independent legal counsel at the June, July and August 2009 Board meetings to consider the Transaction, its expected impact on BFA and the Fund, and the Advisory Contract.

In connection with the Board’s review of the Advisory Contract, BTC, BFA and/or BlackRock, as applicable, provided the Board with information about a variety of matters. The Board considered, among other things, the following information:

• the reputation, financial strength and resources of BlackRock and its investment advisory subsidiaries and the anticipated financial strength and resources of the combined company;

• that there is not expected to be any diminution in the nature, quality and extent of services provided to the iShares funds and their shareholders by BFA, including portfolio management and compliance services;

• that BFA and BlackRock have no present intention to alter the advisory fee rates and expense arrangements currently in effect for the Fund for a period of two years from the date of the closing of the Transaction;

• that it is expected that substantially all of the current employees of BFA will remain employees of BFA and will continue to provide services to the iShares funds following the Transaction;

• that the iShares funds may benefit from having direct access to BlackRock’s state of the art technology and risk management analytic tools, including investment tools, provided under the BlackRock Solutions^® brand name;

• that the iShares funds are expected to continue to be sold through existing distribution channels;

• that the iShares funds will have access to greater distribution resources through BlackRock’s relationships with third party brokers and retirement plan platforms;

• that the parties to the Transaction Agreement have agreed to conduct their respective businesses in compliance with the conditions of Section 15(f) of the 1940 Act in relation to the iShares funds;

• that Barclays or one of its affiliates has agreed to pay all expenses of the iShares funds in connection with the Board’s consideration of the Advisory Contract and all costs of seeking shareholder approval of the Advisory Contract; and

• that Barclays and BlackRock would derive benefits from the Transaction and that, as a result, they may have a different financial interest in the matters that were being considered than do Fund shareholders.

The Board did not identify any particular information that was all-important or controlling, and each Director may have attributed different weights to the various factors discussed below. The Directors evaluated all information available to them. In their deliberations, the Directors considered information received in connection with their most recent approval or continuation of the Previous Advisory Agreement at the June 2009 Board meeting, in addition to information provided by BTC, BFA and BlackRock regarding BlackRock and the Transaction, in connection with their evaluation of the terms and conditions of the Advisory Contract. The Directors, including a majority of the Independent Directors, concluded that the terms of the Advisory Contract are appropriate, that the fees to be paid are reasonable in light of the services to be provided to the Fund, and that the Advisory Contract should be approved. In voting to approve the Advisory Contract in respect of the Fund, the Board considered in particular the following factors:

80 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment

Advisory Contract (Unaudited) (Continued)

iSHARES^®, INC.

NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY BFA

In connection with their consideration of the Advisory Contract, the Board considered representations by BFA, BTC and BlackRock that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the Fund as compared to the scope of services provided by BFA under the Previous Advisory Agreement. In reviewing the scope of these services at the June and August 2009 Board meetings, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including over the past year, including investments in technology and increasing the number of their employees supporting the other iShares funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and has made appropriate officers available as needed to provide further assistance with these matters. The Board noted that it expects that these reports and discussions will continue following the consummation of the Transaction. In addition to the above considerations, the Board considered BFA’s investment processes and strategies, and matters related to BFA’s portfolio transaction policies and procedures. The Board further took into account that, with respect to the Fund, BFA does not serve as investment adviser for other series of registered investment companies with substantially similar investment objectives and strategies; therefore, directly comparable performance information was generally not available for the Fund.

The Board noted the representations of BFA, BTC and BlackRock that the Transaction was not expected to have any adverse effect on the resources and strengths of BFA in managing the iShares funds. The Board also considered that the iShares funds and their shareholders may benefit from having direct access to BlackRock’s state of the art technology and risk management analytic tools, including the investment tools provided under the BlackRock Solutions^® brand name. The Board discussed BlackRock’s current financial condition, its anticipated financial condition following the completion of the Transaction and its lines of business. The Board also discussed BFA’s anticipated financial condition following the completion of the Transaction. The Board discussed BlackRock’s current ownership structure and expected ownership structure following the completion of the Transaction. The Board was advised that BlackRock operates as an independent firm, with its own Board of Directors and no majority shareholder. The Board was also advised that while BlackRock’s largest shareholders, Merrill Lynch, a wholly owned subsidiary of Bank of America, and PNC, are important clients and strategic partners of BlackRock, they are not involved in the firm’s day-to-day management or operations.

Based on the discussions held and the materials presented at the June, July and August 2009 Board meetings and prior Board meetings, the Board determined that the Transaction would not likely cause an adverse change in the nature, extent and quality of the services to be provided by BFA under the Advisory Contract compared with the services provided by BFA under the Previous Advisory Agreement and that the Board expects that the quality of such services will continue to be appropriate.

FUND EXPENSES

The Board received and reviewed statistical information prepared by Lipper Inc. (“Lipper”) at the June 2009 meeting and also received information at prior meetings regarding the expense ratio components of the Fund, including advisory fees, in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising the Fund’s peer group pursuant to Lipper’s proprietary methodology (“Lipper Group”). Because there are few, if any, exchange traded funds or index funds that track indexes similar to the one tracked by the Fund, the Lipper Group may have included mutual funds, closed-end funds, exchange traded funds, or funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds and funds sponsored by “at cost” service providers). In support of its review of the statistical information, the Board was provided with a detailed

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 81

Board Review and Approval of Investment

Advisory Contract (Unaudited) (Continued)

iSHARES^®, INC.

description of the methodology used by Lipper to determine the Lipper Group and to prepare this information. The Board further noted that due to the limitations in providing comparable funds in the Lipper Group, the statistical information may or may not provide meaningful direct comparisons to the Fund.

The Board noted that the investment advisory fees and overall expenses for the Fund were generally lower than the median or average investment advisory fee rates and overall expenses of the funds in its Lipper Group with respect to the Previous Advisory Agreement and Advisory Contract. The Board took into account that the fee rates for the Fund under the Advisory Contract are identical to the fee rates under the Previous Advisory Agreement. Further, the Board noted that representatives of BFA and BlackRock had confirmed that there is no present intention to alter the advisory fee rates, expense waivers or expense reimbursements currently in effect for the iShares funds for a period of two years from the date of the closing of the Transaction.

Based on this review, the Board had concluded that the investment advisory fee rates and expense levels of the Fund, as proposed to be managed by BFA, as compared to the investment advisory fee rates and expense levels of the funds in the relevant Lipper Group, were satisfactory for the purposes of approving the Previous Advisory Agreement and concluded that these comparisons continued to be satisfactory for the purpose of approving the Advisory Contract.

COST OF SERVICES TO BE PROVIDED TO THE FUND AND PROFITS TO BE REALIZED BY BFA

The Board did not consider at the June 2009 Board meeting, the profitability of the Fund to BFA based on the fees payable under the Previous Advisory Agreement or revenue to be received by BFA or its affiliates in connection with services to be provided to the Fund since the proposed relationship had not yet commenced. However, the Board noted that it would consider these matters in the future.

The Board noted that the Advisory Contract is similar to the Previous Advisory Agreement, including the fact that the fee rates under the Agreements are identical and that representatives of BFA and BlackRock represented that there is no present intention due to the Transaction to alter the advisory fee rates, expense waiver or expense reimbursements currently in effect for the iShares funds for a period of two years from the date of the closing of the Transaction.

ECONOMIES OF SCALE

The Board noted that the Previous Advisory Agreement and Advisory Contract provide for breakpoints in the Fund’s investment advisory fee rates as the assets of the Fund, on an aggregated level basis with the assets of certain other iShares funds, increase. At the June 2009 Board meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rates, with breakpoints for the Fund, reflected appropriate sharing of economies of scale with the Fund’s shareholders.

The Board noted representations from BFA and BlackRock that BFA will continue to make significant investments in the iShares fund complex and the infrastructure supporting the funds. The Board determined that changes to the fee structure were not currently necessary and that the Fund would appropriately participate in economies of scale. It was noted that it was not possible to evaluate how the Transaction would create opportunities for additional economies of scale. The Board expects to consider economies of scale on at least an annual basis following completion of the Transaction and thus be in a position to evaluate additional economies of scale, if any.

82 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment

Advisory Contract (Unaudited) (Continued)

iSHARES^®, INC.

FEES AND SERVICES PROVIDED FOR OTHER COMPARABLE FUNDS/ACCOUNTS MANAGED BY BFA AND ITS AFFILIATES

At the June 2009 Board meeting, the Board received and considered certain information regarding the Fund’s annual investment advisory fee rates under the Previous Advisory Agreement in comparison to the investment advisory/management fee rates for other funds/accounts for which BFA or BTC provides investment advisory/management services, including other funds registered under the 1940 Act, collective funds and separate accounts (together, the “Other Accounts”). The Board noted that directly comparable investment advisory/management fee information was not available for the Fund, as BFA and its affiliates do not manage any Other Accounts with substantially similar investment objectives and strategies as the Fund. The Board noted, however, that BFA provided the Board with general information regarding how the level of services provided to the Other Accounts differed from the level of services provided to the Fund. Based on this review, the Board determined that the investment advisory fee rates under the Previous Advisory Agreement and Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that the investment advisory fee rates under the Previous Advisory Agreement and Advisory Contract are fair and reasonable.

OTHER BENEFITS TO BFA AND ITS AFFILIATES

Except as noted below, the Board did not review any ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA or its affiliates, since the proposed relationship had not yet commenced. The Board noted that BFA would not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through an affiliate of BFA, or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act.

CONCLUSION

The Board examined the totality of the information they were provided at the June, July and August 2009 Board meetings and information they received at other meetings held during the past year, and did not identify any single factor discussed previously as controlling. Based on this analysis, the Board determined that the Advisory Contract, including the investment advisory fee rates thereunder, is fair and reasonable in light of all relevant circumstances.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 83

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 Russell Domestic Index Funds	Trading Symbol
iShares Russell 3000	IWV
iShares Russell 3000 Growth	IWZ
iShares Russell 3000 Value	IWW
iShares Russell Top 200	IWL
iShares Russell Top 200 Growth	IWY
iShares Russell Top 200 Value	IWX
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds
iShares Dow Jones U.S.	IYY
iShares KLD Socially Responsible Index Funds
iShares FTSE KLD 400 Social	DSI
iShares FTSE KLD Select Social	KLD
iShares NYSE Domestic Index Funds
iShares NYSE Composite	NYC
iShares NYSE 100	NY
iShares Domestic Specialty Index Funds
iShares S&P U.S. Preferred Stock	PFF
iShares Dow Jones Select Dividend	DVY

iShares North American Sector/Subsector Index Funds	Trading Symbol
iShares S&P North American Technology Sector	IGM
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 Natural Resources Sector	IGE
iShares Domestic Sector Index Funds
iShares Dow Jones U.S. Basic Materials Sector	IYM
iShares Dow Jones U.S. Consumer Goods Sector	IYK
iShares Dow Jones U.S. Consumer Services Sector	IYC
iShares Dow Jones U.S. Energy Sector	IYE
iShares Dow Jones U.S. Financial Sector	IYF
iShares Dow Jones U.S. Healthcare Sector	IYH
iShares Dow Jones U.S. Industrial Sector	IYJ
iShares Dow Jones U.S. Technology Sector	IYW
iShares Dow Jones U.S. Telecommunications Sector	IYZ
iShares Dow Jones U.S. Utilities Sector	IDU
iShares Domestic Subsector Index Funds
iShares Dow Jones Transportation Average	IYT
iShares Dow Jones U.S. Aerospace & Defense	ITA
iShares Dow Jones U.S. Broker-Dealers	IAI
iShares Dow Jones U.S. Financial Services	IYG
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 Nasdaq Biotechnology	IBB
iShares Domestic Real Estate Index Funds
iShares Cohen & Steers Realty Majors	ICF
iShares Dow Jones U.S. Real Estate	IYR
iShares FTSE NAREIT Real Estate 50	FTY
iShares FTSE NAREIT Industrial/Office Capped	FIO
iShares FTSE NAREIT Mortgage Plus Capped	REM
iShares FTSE NAREIT Residential Plus Capped	REZ
iShares FTSE NAREIT Retail Capped	RTL
iShares Target Risk Index Funds
iShares S&P Conservative Allocation	AOK
iShares S&P Moderate Allocation	AOM
iShares S&P Growth Allocation	AOR
iShares S&P Aggressive Allocation	AOA

84 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds (Continued)

iShares International Country Index Funds	Trading Symbol
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 S&P/TOPIX 150	ITF
iShares MSCI Malaysia	EWM
iShares MSCI Mexico Investable Market	EWW
iShares MSCI Netherlands Investable Market	EWN
iShares MSCI All Peru Capped	EPU
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 India Nifty 50	INDY
iShares International Index Funds
iShares MSCI ACWI ex US	ACWX
iShares MSCI EAFE	EFA
iShares MSCI EAFE Growth	EFG
iShares MSCI EAFE Value	EFV
iShares MSCI EAFE Small Cap	SCZ
iShares FTSE Developed Small Cap ex-North America	IFSM
iShares MSCI Emerging Markets	EEM
iShares MSCI Emerging Markets Eastern Europe	ESR
iShares MSCI BRIC	BKF
iShares MSCI EMU	EZU
iShares MSCI All Country Asia ex Japan	AAXJ
iShares MSCI Pacific ex-Japan	EPP
iShares S&P Asia 50	AIA
iShares S&P Europe 350	IEV
iShares S&P Latin America 40	ILF
iShares International/Global Real Estate Index Funds
iShares S&P Developed ex-U.S. Property	WPS
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S	IFGL
iShares FTSE EPRA/NAREIT Developed Asia	IFAS
iShares FTSE EPRA/NAREIT Developed Europe	IFEU
iShares FTSE EPRA/NAREIT North America	IFNA

iShares Target Date Index Funds	Trading Symbol
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 Global Index Funds
iShares MSCI ACWI	ACWI
iShares S&P Global 100	IOO
iShares MSCI Kokusai	TOK
iShares International/Global Sector Index Funds
iShares MSCI ACWI ex US Financials Sector	AXFN
iShares MSCI Emerging Markets Financials Sector	EMFN
iShares MSCI Emerging Markets Materials Sector	EMMT
iShares MSCI Europe Financials Sector	EUFN
iShares MSCI Far East Financials Sector	FEFN
iShares S&P Global Consumer Discretionary Sector	RXI
iShares S&P Global Consumer Staples Sector	KXI
iShares S&P Global Energy Sector	IXC
iShares S&P Global Financials Sector	IXG
iShares S&P Global Healthcare Sector	IXJ
iShares S&P Global Industrials Sector	EXI
iShares S&P Global Materials Sector	MXI
iShares S&P Global Technology Sector	IXN
iShares S&P Global Telecommunications Sector	IXP
iShares S&P Global Utilities Sector	JXI
iShares International/Global Theme Based and Specialty Index Funds
iShares S&P Global Clean Energy	ICLN
iShares S&P Global Infrastructure	IGF
iShares S&P Emerging Markets Infrastructure	EMIF
iShares S&P Global Nuclear Energy	NUCL
iShares S&P Global Timber & Forestry	WOOD
iShares Dow Jones International Select Dividend	IDV
iShares U.S. Multisector Bond Funds
iShares Barclays Aggregate	AGG
iShares Barclays Government/Credit	GBF
iShares Barclays Intermediate Government/Credit	GVI
iShares 10+ Year Government/Credit	GLJ
iShares U.S. Government Bond Funds
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 U.S. Credit Bond Funds
iShares Barclays Credit	CFT
iShares Barclays 1-3 Year Credit	CSJ
iShares Barclays Intermediate Credit	CIU
iShares iBoxx $ Investment Grade Corporate	LQD
iShares 10+ Year Credit	CLY
iShares iBoxx $ High Yield Corporate	HYG

iSHARES FAMILY OF FUNDS 85

The iShares^® Family of Funds (Continued)

iShares AMT-Free Municipal Bond Funds	Trading Symbol
iShares S&P National AMT-Free Municipal	MUB
iShares S&P Short Term National AMT-Free Municipal	SUB
iShares S&P California AMT-Free Municipal	CMF
iShares S&P New York AMT-Free Municipal	NYF
iShares 2012 S&P AMT-Free Municipal Series	MUAA
iShares 2013 S&P AMT-Free Municipal Series	MUAB
iShares 2014 S&P AMT-Free Municipal Series	MUAC
iShares 2015 S&P AMT-Free Municipal Series	MUAD
iShares 2016 S&P AMT-Free Municipal Series	MUAE
iShares 2017 S&P AMT-Free Municipal Series	MUAF

iShares U.S. Securitized Bond Funds	Trading Symbol
iShares Barclays MBS	MBB
iShares International Bond Funds
iShares JPMorgan USD Emerging Markets	EMB
iShares S&P/Citigroup International Treasury	IGOV
iShares S&P/Citigroup 1-3 Year International Treasury	ISHG

The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”). iShares^® is a registered trademark of BlackRock Institutional Trust Company, N.A. The Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EP RA^®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx^®, J.P. Morgan Securities Inc., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, 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, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREITReal 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.

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 2010 Semi-Annual Report.

iS-2350-0310

86 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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.

Once you have enrolled, you will no longer receive shareholder reports and prospectuses 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 and is available to be viewed or downloaded.

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.

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Your information and e-mail 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.

For more information:

WWW.iSHARES.COM

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

This accompanied report is by intended the current for the prospectus. Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by SEI Investments Distribution Co. (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 BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the company listed above.

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 ending 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.

©2010 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners.

iS-SAR-82-0210

2010 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES ® MSCI SERIES

FEBRUARY 28, 2010

» Would you prefer to receive materials like this electronically 

See inside back cover for details.

iShares MSCI Brazil Index Fund I EWZ I NYSE Arca iShares MSCI BRIC Index Fund I BKF I NYSE Arca iShares MSCI Canada Index Fund I EWC I NYSE Arca iShares MSCI Chile Investable Market Index Fund I ECH I NYSE Arca iShares MSCI Israel Capped Investable Market Index Fund I EIS I NYSE Arca iShares MSCI Mexico Investable Market Index Fund I EWW I NYSE Arca iShares MSCI South Africa Index Fund I EZA I NYSE Arca iShares MSCI Turkey Investable Market Index Fund I TUR I NYSE Arca

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
Shareholder Meeting Results	58
iShares Family of Funds	60

Fund Performance Overview

iSHARES^® MSCI BRAZIL INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 21.55%, while the total return for the Index was 21.11%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
108.26%	107.79%	109.06%	25.82%	25.80%	27.05%	16.74%	16.68%	18.71%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
108.26%	107.79%	109.06%	215.30%	215.10%	230.98%	344.82%	342.47%	422.59%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Basic Materials	27.30	%
Energy	23.40
Financial	22.76
Consumer Non-Cyclical	9.65
Utilities	5.37
Communications	3.86
Diversified	2.87
Industrial	2.09
Consumer Cyclical	2.01
Short-Term and Other Net Assets	0.69
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Petroleo Brasileiro SA Preferred	11.67	%
Vale SA Class A Preferred	9.83
Petroleo Brasileiro SA	9.49
Itau Unibanco Holding SA Preferred	8.19
Vale SA SP ADR	7.28
Banco Bradesco SA Preferred	4.87
Companhia de Bebidas das Americas Preferred	3.09
Itausa - Investimentos Itau SA Preferred	2.87
Companhia Siderurgica Nacional SA	2.48
OGX Petroleo e Gas Participacoes SA	2.24
TOTAL	62.01	%

FUND PERFORMANCE OVERVIEWS 1

Fund Performance Overview

iSHARES^® MSCI BRIC INDEX FUND

Performance as of February 28, 2010

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 a free-float-adjusted market capitalization index that 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, 2010, the total return for the Fund was 14.77%, while the total return for the Index was 14.84%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/10			Inception to 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
97.99%	100.04%	96.87%	(10.17)%	(10.18)%	(10.65)%	(21.84)%	(21.87)%	(22.83)%

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.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	27.71	%
Energy	25.80
Basic Materials	13.33
Communications	9.12
Consumer Non-Cyclical	7.07
Technology	5.55
Industrial	3.95
Consumer Cyclical	2.55
Diversified	2.45
Utilities	2.14
Short-Term and Other Net Assets	0.33
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Petroleo Brasileiro SA Preferred (Brazil)	4.11	%
China Mobile Ltd. (China)	3.91
Vale SA Class A Preferred (Brazil)	3.67
OAO Gazprom SP ADR (Russia)	3.58
Petroleo Brasileiro SA (Brazil)	3.29
Reliance Industries Ltd. SP GDR (India)	3.13
Infosys Technologies Ltd. SP ADR (India)	3.07
Itau Unibanco Holding SA Preferred (Brazil)	2.83
Vale SA (Brazil)	2.73
HDFC Bank Ltd. SP ADR (India)	2.51
TOTAL	32.83	%

2 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI CANADA INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 10.05%, while the total return for the Index was 10.22%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
73.01%	74.37%	73.50%	9.52%	9.55%	9.81%	8.44%	8.18%	7.98%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
73.01%	74.37%	73.50%	57.56%	57.78%	59.70%	124.90%	119.56%	115.50%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	33.14	%
Energy	24.79
Basic Materials	19.81
Industrial	5.37
Communications	5.01
Technology	4.10
Consumer Cyclical	2.79
Consumer Non-Cyclical	2.01
Diversified	1.60
Utilities	1.20
Short-Term and Other Net Assets	0.18
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Royal Bank of Canada	7.27	%
Toronto-Dominion Bank (The)	5.27
Bank of Nova Scotia	4.46
Suncor Energy Inc.	4.32
Barrick Gold Corp.	3.55
Canadian Natural Resources Ltd.	3.50
Research In Motion Ltd.	3.48
Potash Corp. of Saskatchewan Inc.	3.13
Manulife Financial Corp.	3.09
Bank of Montreal	2.82
TOTAL	40.89	%

FUND PERFORMANCE OVERVIEWS 3

Fund Performance Overview

iSHARES^® MSCI CHILE INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2010

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 a free float-adjusted market capitalization index that 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, 2010, the total return for the Fund was 26.69%, while the total return for the Index was 26.86%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/10			Inception to 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
73.34%	72.29%	74.09%	7.73%	7.90%	7.68%	18.68%	19.11%	18.56%

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.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Utilities	28.11	%
Basic Materials	20.46
Diversified	13.58
Consumer Cyclical	12.05
Financial	9.95
Consumer Non-Cyclical	9.51
Communications	2.73
Industrial	2.40
Technology	1.00
Short-Term and Other Net Assets	0.21
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Empresas Copec SA	13.58	%
Enersis SA	10.46
Empresa Nacional de Electricidad SA	10.07
Empresas CMPC SA	8.82
Sociedad Quimica y Minera de Chile SA Series B	6.39
Cencosud SA	4.97
Banco Santander Chile SA	4.92
LAN Airlines SA	4.56
CAP SA	4.32
S.A.C.I. Falabella SA	3.60
TOTAL	71.69	%

4 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 18.51%, while the total return for the Index was 19.05%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/10			Inception to 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
78.49%	86.66%	79.60%	6.90%	7.82%	7.93%	13.76%	15.65%	15.86%

Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	27.13	%
Consumer Non-Cyclical	26.50
Communications	23.81
Basic Materials	11.76
Industrial	5.29
Energy	1.95
Technology	1.40
Consumer Cyclical	1.20
Diversified	0.86
Short-Term and Other Net Assets	0.10
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Teva Pharmaceutical Industries Ltd.	23.93	%
Israel Chemicals Ltd.	8.78
Check Point Software Technologies Ltd.	7.49
Bank Leumi le-Israel	6.93
Bezeq The Israel Telecommunication Corp. Ltd.	4.88
Bank Hapoalim Ltd.	4.75
Partner Communications Co. Ltd.	3.16
NICE Systems Ltd.	3.07
Elbit Systems Ltd.	2.24
Cellcom Israel Ltd.	2.18
TOTAL	67.41	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI MEXICO INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 15.73%, while the total return for the Index was 13.70%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
107.25%	107.83%	104.33%	14.57%	14.40%	13.93%	12.55%	12.59%	12.50%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
107.25%	107.83%	104.33%	97.44%	95.94%	91.92%	226.31%	227.38%	224.72%

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

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

The Fund’s per share net asset value or “NAV” 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 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Communications	39.42	%
Consumer Cyclical	16.87
Basic Materials	11.26
Consumer Non-Cyclical	11.11
Industrial	10.02
Financial	7.05
Diversified	4.17
Short-Term and Other Net Assets	0.10
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
America Movil SAB de CV Series L	23.06	%
Wal-Mart de Mexico SAB de CV Series V	9.82
Cemex SAB de CV CPO	5.84
Grupo Mexico SAB de CV Series B	4.78
Fomento Economico Mexicano SAB de CV BD Units	4.47
Grupo Televisa SA CPO	4.26
Telmex Internacional SAB de CV Series L	3.81
Telefonos de Mexico SAB de CV Series L	3.69
Grupo Financiero Banorte SAB de CV Series O	3.51
Carso Global Telecom SAB de CV Series A1	2.93
TOTAL	66.17	%

6 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 5.96%, while the total return for the Index was 6.31%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
80.64%	80.42%	82.33%	9.33%	9.19%	10.55%	18.86%	18.72%	20.22%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
80.64%	80.42%	82.33%	56.21%	55.22%	65.15%	239.39%	236.46%	268.02%

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.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Basic Materials	25.73	%
Financial	24.85
Communications	18.71
Energy	9.96
Consumer Cyclical	6.12
Diversified	5.76
Consumer Non-Cyclical	5.48
Industrial	3.25
Short-Term and Other Net Assets	0.14
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
MTN Group Ltd.	10.13	%
Sasol Ltd.	9.96
Standard Bank Group Ltd.	7.72
Naspers Ltd. Class N	6.81
Impala Platinum Holdings Ltd.	6.20
AngloGold Ashanti Ltd.	5.23
Gold Fields Ltd.	3.66
FirstRand Ltd.	3.15
Sanlam Ltd.	3.08
Absa Group Ltd.	2.64
TOTAL	58.58	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 4.25%, while the total return for the Index was 4.66%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/10			Inception to 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
132.53%	131.70%	134.68%	1.34%	1.29%	1.68%	2.60%	2.50%	3.28%

Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	45.90	%
Communications	12.43
Consumer Non-Cyclical	10.61
Diversified	9.62
Consumer Cyclical	5.86
Industrial	5.86
Basic Materials	4.76
Energy	4.15
Utilities	0.69
Short-Term and Other Net Assets	0.12
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Turkiye Garanti Bankasi AS	14.18	%
Turkcell Iletisim Hizmetleri AS	8.25
Akbank TAS	6.93
Turkiye Is Bankasi AS	5.46
Turkiye Petrol Rafinerileri AS	4.15
Anadolu Efes Biracilik ve Malt Sanayii AS	3.74
Haci Omer Sabanci Holding AS	3.63
Turkiye Halk Bankasi AS	3.61
Yapi ve Kredi Bankasi AS	3.42
Turkiye Vakiflar Bankasi TAO	3.13
TOTAL	56.50	%

8 2010 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, 2009 to February 28, 2010.

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 (9/1/09)	Ending Account Value (2/28/10)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/09 to  2/28/10)
Brazil
Actual	$1,000.00	$1,215.50	0.61	%	$3.35
Hypothetical (5% return before expenses)	1,000.00	1,021.80	0.61		3.06
BRIC
Actual	1,000.00	1,147.70	0.69		3.67
Hypothetical (5% return before expenses)	1,000.00	1,021.40	0.69		3.46
Canada
Actual	1,000.00	1,100.50	0.54		2.81
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Chile Investable Market
Actual	1,000.00	1,266.90	0.61		3.43
Hypothetical (5% return before expenses)	1,000.00	1,021.80	0.61		3.06

SHAREHOLDER EXPENSES 9

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (9/1/09)	Ending Account Value (2/28/10)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/09 to  2/28/10)
Israel Capped Investable Market
Actual	$1,000.00	$1,185.10	0.61	%	$3.30
Hypothetical (5% return before expenses)	1,000.00	1,021.80	0.61		3.06
Mexico Investable Market
Actual	1,000.00	1,157.30	0.54		2.89
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
South Africa
Actual	1,000.00	1,059.60	0.61		3.12
Hypothetical (5% return before expenses)	1,000.00	1,021.80	0.61		3.06
Turkey Investable Market
Actual	1,000.00	1,042.50	0.61		3.09
Hypothetical (5% return before expenses)	1,000.00	1,021.80	0.61		3.06

^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 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 43.02%
AEROSPACE & DEFENSE – 0.54%
Empresa Brasileira de Aeronautica SA	10,210,232	$	55,430,203
			55,430,203
AGRICULTURE – 0.60%
Souza Cruz SA	1,801,800		61,642,101
			61,642,101
BANKS – 3.04%
Banco do Brasil SA	10,810,860		178,106,974
Banco Santander (Brasil) SA	11,411,441		135,080,644
			313,187,618
BUILDING MATERIALS – 0.36%
Duratex SA	3,903,900		37,159,424
			37,159,424
COMMERCIAL SERVICES – 1.94%
Cielo SA	12,012,000		94,061,870
Companhia de Concessoes Rodoviarias	3,903,900		82,420,468
Localiza Rent A Car SA	2,102,100		22,917,194
			199,399,532
COSMETICS & PERSONAL CARE – 0.64%
Natura Cosmeticos SA	3,603,600		66,408,345
			66,408,345
DIVERSIFIED FINANCIAL SERVICES – 2.60%
BM&F Bovespa SA	25,525,500		167,250,647
Redecard SA	6,906,900		100,526,547
			267,777,194
ELECTRIC – 1.54%
Centrais Eletricas Brasileiras SA	4,504,599		58,332,937
CPFL Energia SA	2,402,450		49,378,524
EDP Energias do Brasil SA	1,201,200		23,432,374
Tractebel Energia SA	2,402,400		27,533,870
			158,677,705
ENGINEERING & CONSTRUCTION – 0.20%
Multiplan Empreendimentos
Imobiliarios SA	1,201,200		20,766,734
			20,766,734

Security	Shares	Value
FOOD – 2.51%
BRF – Brasil Foods SA	6,306,375	$	153,907,658
Cosan SA Industria e Comercioa	2,102,190		27,385,475
JBS SA	6,906,987		34,706,941
Marfrig Alimentos SA	3,603,600		41,998,791
			257,998,865
FOREST PRODUCTS & PAPER – 0.64%
Fibria Celulose SAa	3,603,626		65,710,834
			65,710,834
HOME BUILDERS – 0.56%
Brookfield Incorporacoes SA	3,603,600		18,067,856
MRV Engenharia e Participacoes SA	5,405,547		39,187,972
			57,255,828
INSURANCE – 0.23%
Porto Seguro SA	2,402,400		23,997,410
			23,997,410
INTERNET – 0.24%
B2W Companhia Global do Varejo	1,201,230		24,928,680
			24,928,680
IRON & STEEL – 3.43%
Companhia Siderurgica
Nacional SA	7,807,827		255,579,949
Gerdau SA	2,702,700		30,003,410
Usinas Siderurgicas de Minas Gerais SA	2,402,400		68,070,216
			353,653,575
MINING – 7.28%
Vale SA SP ADRb	26,906,880		749,625,677
			749,625,677
OIL & GAS – 11.73%
OGX Petroleo e Gas Participacoes SAa	26,426,400		230,335,252
Petroleo Brasileiro SA	45,645,644		977,579,647
			1,207,914,899
PHARMACEUTICALS – 0.28%
Hypermarcas SAa	2,402,400		28,677,237
			28,677,237

SCHEDULES OF INVESTMENTS 11

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2010

Security	Shares	Value
REAL ESTATE – 2.31%
BR Malls Participacoes SAa	2,402,400	$	31,243,165
Cyrela Brazil Realty SA	6,006,000		74,950,360
Gafisa SA	4,804,800		36,428,201
PDG Realty SA Empreendimentos e Participacoes	7,807,800		69,868,360
Rossi Residencial SA	3,303,300		25,812,173
			238,302,259
RETAIL – 0.44%
Lojas Renner SA	2,102,100		45,392,331
			45,392,331
TELECOMMUNICATIONS – 0.48%
GVT (Holding) SAa	600,603		18,609,719
Tele Norte Leste
Participacoes SA	1,501,538		31,160,860
			49,770,579
TRANSPORTATION – 0.99%
ALL – America Latina
Logistica SA	8,408,400		75,010,187
LLX Logistica SAa	5,105,100		26,952,216
			101,962,403
WATER – 0.44%
Companhia de Saneamento
Basico do Estado de Sao Paulo	2,702,700		45,393,993
			45,393,993
TOTAL COMMON STOCKS
(Cost: $2,766,169,753)			4,431,033,426
PREFERRED STOCKS – 56.29%
AIRLINES – 0.51%
GOL Linhas Aereas Inteligentes SAa	1,801,800		24,479,352
TAM SA	1,501,500		27,828,022
			52,307,374
BANKS – 13.43%
Banco Bradesco SA	29,069,040		501,107,137
Banco do Estado do Rio Grande do Sul SA	4,804,810		38,528,886
Itau Unibanco Holding SA	41,741,749		843,150,990
			1,382,787,013

Security	Shares	Value
BEVERAGES – 3.09%
Companhia de Bebidas das Americas	3,303,380	$	318,126,280
			318,126,280
CHEMICALS – 1.14%
Braskem SA Class Aa	3,303,336		23,362,830
Fertilizantes Fosfatados SAa	2,702,780		26,773,526
Ultrapar Participacoes SA	1,501,500		66,973,381
			117,109,737
ELECTRIC – 3.39%
AES Tiete SA	2,157,600		22,686,442
Centrais Eletricas Brasileiras SA Class B	3,903,900		61,982,784
Companhia de Transmissao de Energia Eletrica Paulista	911,176		24,430,812
Companhia Energetica de Minas Gerais	6,906,932		113,561,123
Companhia Energetica de Sao Paulo Class B	3,603,670		46,367,088
Companhia Paranaense de Energia Class B	2,102,100		42,809,784
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B	1,801,820		37,412,444
			349,250,477
FOOD – 0.59%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar	1,801,828		61,224,261
			61,224,261
FOREST PRODUCTS & PAPER – 0.64%
Klabin SA	13,513,500		35,522,482
Suzano Bahia Sul Papel e Celulose SA	3,003,085		30,911,666
			66,434,148
HOLDING COMPANIES – DIVERSIFIED – 2.87%
Itausa - Investimentos Itau SA	46,246,236		295,853,065
			295,853,065
INVESTMENT COMPANIES – 1.15%
Bradespar SA	5,405,400		117,949,597
			117,949,597

12 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2010

Security	Shares	Value
IRON & STEEL – 4.34%
Gerdau SA	13,513,546	$	197,804,810
Metalurgica Gerdau SA	5,705,790		103,727,284
Usinas Siderurgicas de Minas Gerais SA Class A	5,105,100		144,988,230
			446,520,324
MEDIA – 0.43%
Net Servicos de Comunicacao SAa	3,603,682		44,313,123
			44,313,123
MINING – 9.83%
Vale SA Class A	41,141,100		1,012,020,971
			1,012,020,971
OIL & GAS – 11.67%
Petroleo Brasileiro SA	62,762,750		1,202,113,325
			1,202,113,325
RETAIL – 0.50%
Lojas Americanas SA	7,207,200		51,850,360
			51,850,360
TELECOMMUNICATIONS – 2.71%
Brasil Telecom SAa	7,507,515		51,601,182
Tele Norte Leste Participacoes SA	5,405,439		93,630,460
Telemar Norte Leste SA Class A	300,300		8,591,870
TIM Participacoes SA	12,612,619		35,876,514
Vivo Participacoes SA	3,303,380		89,759,800
			279,459,826
TOTAL PREFERRED STOCKS
(Cost: $3,267,194,064)			5,797,319,881
SHORT-TERM INVESTMENTS – 0.17%
MONEY MARKET FUNDS – 0.17%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	15,601,562		15,601,562
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	2,507,338		2,507,338

Security	Shares	Value
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	8,358	$	8,358
			18,117,258
TOTAL SHORT-TERM INVESTMENTS
(Cost: $18,117,258)			18,117,258
TOTAL INVESTMENTS IN SECURITIES – 99.48%
(Cost: $6,051,481,075)			10,246,470,565
Other Assets, Less Liabilities – 0.52%			53,194,696
NET ASSETS – 100.00%		$	10,299,665,261

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 13

Schedule of Investments (Unaudited)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 79.44%
BRAZIL – 14.32%
ALL – America Latina Logistica SA	268,100	$	2,391,683
B2W Companhia Global do Varejo	38,300		794,826
Banco do Brasil SA	229,800		3,785,914
Banco Santander (Brasil) SA	268,137		3,174,018
BM&F Bovespa SA	689,469		4,517,605
BR Malls Participacoes SAa	76,600		996,182
BRF - Brasil Foods SA	114,900		2,804,145
Centrais Eletricas Brasileiras SA	153,200		1,983,885
Cielo SA	297,600		2,330,404
Companhia de Concessoes Rodoviarias	114,900		2,425,808
Companhia Siderurgica Nacional SA	229,800		7,522,230
Cosan SA Industria e Comercioa	76,600		997,877
CPFL Energia SA	76,600		1,574,391
Cyrela Brazil Realty SA	153,200		1,911,821
Duratex SA	114,900		1,093,680
Empresa Brasileira de Aeronautica SA	306,400		1,663,411
Fibria Celulose SAa	126,041		2,298,313
Gafisa SA	153,200		1,161,505
Gerdau SA	153,200		1,700,715
GVT (Holding) SAa	38,300		1,186,728
Hypermarcas SAa	71,300		851,102
JBS SA	229,852		1,154,984
LLX Logistica SAa	153,200		808,815
Marfrig Alimentos SA	114,900		1,339,122
MRV Engenharia e Participacoes SA	191,500		1,388,296
Multiplan Empreendimentos Imobiliarios SA	38,300		662,143
OGX Petroleo e Gas Participacoes SAa	421,300		3,672,095
PDG Realty SA Empreendimentos e Participacoes	153,200		1,370,915
Petroleo Brasileiro SA	1,263,900		27,068,581
Redecard SA	191,500		2,787,189
Rossi Residencial SA	114,900		897,835
Souza Cruz SA	76,600		2,620,593
Tele Norte Leste Participacoes SA	38,300		794,826
Tractebel Energia SA	114,900		1,316,867

Security	Shares	Value
Usinas Siderurgicas de
Minas Gerais SA	76,600	$	2,170,404
Vale SA	804,300		22,455,415
			117,674,323
CHINA – 37.24%
Agile Property Holdings Ltd.	1,532,000		1,957,588
Air China Ltd. Class Ha	2,298,000		2,003,962
Alibaba.com Ltd.b	766,000		1,677,369
Aluminum Corp. of China Ltd. Class Ha,b	2,298,000		2,223,007
Angang New Steel Co. Ltd. Class H	766,000		1,410,963
Anhui Conch Cement Co. Ltd. Class Hb	38,000		225,161
Anta Sports Products Ltd.	383,040		550,629
Bank of China Ltd. Class H	32,172,000		15,623,209
Bank of Communications Co. Ltd. Class H	3,447,000		3,791,840
BBMG Corp. Class Ha	383,000		374,941
Beijing Capital International Airport Co. Ltd. Class Ha,b	766,000		419,342
Belle International Holdings Ltd.	2,681,000		2,987,196
BYD Co. Ltd. Class Ha,b	383,000		2,964,996
Chaoda Modern Agriculture (Holdings) Ltd.	970,556		1,050,149
China Agri-Industries Holdings Ltd.b	1,532,000		2,198,340
China CITIC Bank Class H	3,064,000		2,048,363
China Coal Energy Co. Class H	2,298,000		3,664,557
China Communications Construction Co. Ltd. Class Hb	2,681,000		2,507,173
China Construction Bank Corp. Class H	21,448,000		16,217,195
China COSCO Holdings Co. Ltd. Class Hb	1,723,500		2,146,785
China Dongxiang (Group) Co. Ltd.	2,298,000		1,539,232
China Everbright Ltd.	766,000		1,858,919
China High Speed Transmission Equipment Group Co. Ltd.b	766,000		1,470,164
China Life Insurance Co. Ltd. Class H	4,213,000		18,695,261
China Longyuan Power Group Corp. Ltd. Class Ha	766,000		934,393

14 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2010

Security	Shares	Value
China Mengniu Dairy Co. Ltd.a	766,000	$	2,284,181
China Merchants Bank Co. Ltd. Class H	2,106,900		5,188,988
China Merchants Holdings (International) Co. Ltd.b	766,000		2,757,791
China Minsheng Banking Corp. Ltd. Class Ha	1,340,500		1,396,903
China Mobile Ltd.b	3,255,500		32,121,610
China National Building Material Co. Ltd. Class Hb	766,000		1,318,215
China Oilfield Services Ltd. Class Hb	1,532,000		2,107,565
China Overseas Land & Investment Ltd.	2,298,800		4,660,760
China Pacific Insurance (Group) Co. Ltd. Class Ha	153,200		626,547
China Petroleum & Chemical Corp. Class H	9,192,000		7,210,712
China Railway Construction Corp. Class H	1,532,000		2,016,789
China Railway Group Ltd. Class Ha	2,298,000		1,719,796
China Resources Enterprise Ltd.	766,000		2,703,524
China Resources Land Ltd.b	1,532,000		3,188,974
China Resources Power Holdings Co. Ltd.	800,200		1,589,402
China Shenhua Energy Co. Ltd. Class H	1,723,500		7,414,956
China Shipping Container Lines Co. Ltd. Class Ha	2,298,000		917,619
China Shipping Development Co. Ltd. Class Hb	766,000		1,304,401
China South Locomotive and Rolling Stock Corp. Ltd. Class H	766,000		534,785
China Taiping Insurance Holdings Co. Ltd.a	383,000		1,188,958
China Telecom Corp. Ltd. Class H	6,140,000		2,696,954
China Unicom (Hong Kong) Ltd.	3,091,900		3,707,882
China Yurun Food Group Ltd.	766,000		2,279,248
China Zhongwang Holdings Ltd.a,b	738,000		635,965
CITIC Pacific Ltd.	766,000		1,708,943
CNOOC Ltd.	9,192,000		14,492,465

Security	Shares	Value
CNPC (Hong Kong) Ltd.	3,830,000	$	4,824,902
Denway Motors Ltd.	3,830,000		2,141,112
Dongfeng Motor Group Co. Ltd. Class H	1,532,000		2,222,020
Fosun International Ltd.b	2,489,500		1,872,733
Franshion Properties (China) Ltd.	2,298,000		742,976
Fushan International Energy Group Ltd.	2,298,000		2,048,363
Geely Automobile Holdings Ltd.b	3,830,000		1,924,040
GOME Electrical Appliances Holdings Ltd.a	3,830,400		1,203,884
Greentown China Holdings Ltd.	191,500		254,072
Guangdong Investment Ltd.	2,298,000		1,166,264
Guangzhou R&F Properties Co. Ltd. Class Hb	766,000		1,136,664
Harbin Power Equipment Co. Ltd. Class H	766,000		616,680
Hengan International Group Co. Ltd.	766,000		5,263,977
Hidili Industry International Development Ltd.a	1,149,000		1,231,386
Hopson Development Holdings Ltd.	766,000		1,071,543
Huaneng Power International Inc. Class Hb	1,492,000		897,504
Industrial and Commercial Bank of China Ltd. Class H	25,278,000		17,875,816
Jiangsu Expressway Co. Ltd. Class H	1,532,000		1,422,803
Jiangxi Copper Co. Ltd. Class Hb	1,149,000		2,335,489
Kingboard Chemical Holdings Co. Ltd.	191,500		858,418
Lenovo Group Ltd.	2,298,000		1,494,831
Li Ning Co. Ltd.b	766,000		2,392,717
Maanshan Iron & Steel Co. Ltd. Class Ha,b	1,532,000		919,593
Metallurgical Corp. of China Ltd. Class Ha,b	766,000		438,089
Nine Dragons Paper (Holdings) Ltd.	766,000		1,114,957
Parkson Retail Group Ltd.b	574,500		951,660
PetroChina Co. Ltd. Class H	11,490,000		12,831,870
PICC Property and Casualty Co. Ltd. Class Ha,b	1,532,000		1,385,309

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2010

Security	Shares	Value
Ping An Insurance (Group) Co. of China Ltd. Class H	634,000	$	4,834,614
Poly (Hong Kong) Investments Ltd.	1,169,984		1,409,102
Shanghai Electric Group Co. Ltd. Class H	2,298,000		1,038,982
Shanghai Industrial Holdings Ltd.	383,000		1,645,301
Shimao Property Holdings Ltd.	1,149,000		1,915,160
Shui On Land Ltd.	2,681,000		1,301,934
Sinofert Holdings Ltd.b	1,532,000		858,418
Sino-Ocean Land Holdings Ltd.	2,489,500		2,199,820
Sinopharm Group Co. Ltd. Class Ha	153,200		689,695
Soho China Ltd.	1,915,000		942,286
Tencent Holdings Ltd.	421,300		8,259,561
Tingyi (Cayman Islands) Holding Corp.	1,532,000		3,556,022
Yanzhou Coal Mining Co. Ltd. Class H	1,532,000		3,240,282
Zhejiang Expressway Co. Ltd. Class H	1,532,000		1,385,309
Zijin Mining Group Co. Ltd. Class H	2,022,000		1,729,418
			305,960,243
INDIA – 14.52%
Dr. Reddy’s Laboratories Ltd. SP ADRb	403,299		9,925,188
HDFC Bank Ltd. SP ADRb	169,669		20,647,021
ICICI Bank Ltd. SP ADR	440,833		16,861,862
Infosys Technologies Ltd. SP ADR	443,514		25,235,947
Mahanagar Telephone Nigam Ltd. SP ADRb	290,831		898,668
Reliance Industries Ltd. SP GDRc	607,438		25,755,371
Satyam Computer Services Ltd. SP ADRa	875,921		4,642,381
Tata Communications Ltd. SP ADR	93,069		1,154,056
Wipro Ltd. SP ADRb	655,696		14,176,148
			119,296,642
RUSSIA – 13.36%
Cherepovets MK Severstal SP GDRa,d	207,203		2,507,156
JSC MMC Norilsk Nickel SP ADRa	527,008		7,952,551
LUKOIL SP ADR	287,633		15,100,732

Security	Shares	Value
Mechel OAO SP ADR	93,069	$	2,140,587
Mobile TeleSystems SP ADR	114,900		6,015,015
Novolipetsk Steel SP GDRa,d	68,174		2,106,577
OAO Gazprom SP ADR	1,323,768		29,440,600
OAO NovaTek SP GDRd	56,684		3,616,439
OAO Tatneft SP ADR	140,979		4,291,401
OAO TMK SP GDRa,d	53,237		947,619
OJSC Comstar United Telesystems SP GDR	160,860		932,988
OJSC Rosneft Oil Co. SP GDR	767,943		5,928,520
Pharmstandard SP GDRa,d	58,599		1,213,585
Polyus Gold SP ADR	86,558		2,350,915
Sberbank GDRd	43,662		11,857,521
Sistema JSFC SP GDRa,d	72,387		1,845,868
Surgutneftegaz SP ADR	409,810		3,348,148
Uralkali SP GDRa,d	67,408		1,412,198
Vimpel-Communications SP ADR	199,926		3,708,627
VTB Bank OJSC SP GDRd	378,787		1,825,753
Wimm-Bill-Dann Foods OJSC SP ADRa	58,216		1,192,264
			109,735,064
TOTAL COMMON STOCKS
(Cost: $621,383,094)			652,666,272
PREFERRED STOCKS – 20.23%
BRAZIL – 20.23%
AES Tiete SA	38,300		402,712
Banco Bradesco SA	1,010,960		17,427,451
Banco do Estado do Rio Grande do Sul SA	38,300		307,120
Bradespar SA	153,200		3,342,931
Brasil Telecom SAa	145,698		1,001,422
Braskem SA Class Aa	114,900		812,630
Centrais Eletricas Brasileiras SA Class B	114,900		1,824,284
Companhia de Bebidas das Americas	114,995		11,074,394
Companhia de Transmissao de Energia Eletrica Paulista	38,471		1,031,500
Companhia Energetica de Minas Gerais	191,903		3,155,195

16 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2010

Security	Shares	Value
Companhia Energetica de Sao Paulo Class B	114,900	$	1,478,376
Companhia Paranaense de Energia Class B	76,600		1,559,978
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B	38,300		795,250
Fertilizantes Fosfatados SAa	76,620		758,992
Gerdau SA	421,300		6,166,787
GOL Linhas Aereas Inteligentes SAa	38,300		520,346
Itau Unibanco Holding SA	1,149,067		23,210,263
Itausa – Investimentos Itau SA	1,389,973		8,892,135
Klabin SA	229,800		604,068
Lojas Americanas SA	229,800		1,653,237
Metalurgica Gerdau SA	160,000		2,908,688
Net Servicos de Comunicacao SAa	115,240		1,417,063
Petroleo Brasileiro SA	1,761,800		33,744,271
TAM SA	38,300		709,832
Tele Norte Leste Participacoes SA	153,200		2,653,658
Telemar Norte Leste SA Class A	38,300		1,095,800
TIM Participacoes SA	344,857		980,943
Usinas Siderurgicas de Minas Gerais SA Class A	155,350		4,412,043
Vale SA Class A	1,225,600		30,148,268
Vivo Participacoes SA	78,919		2,144,396
			166,234,033
TOTAL PREFERRED STOCKS
(Cost: $149,656,959)			166,234,033
SHORT-TERM INVESTMENTS – 4.44%
MONEY MARKET FUNDS – 4.44%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%e,f,g	31,308,952		31,308,952
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%e,f,g	5,031,684		5,031,684
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%e,f	116,489		116,489
			36,457,125

	Value
TOTAL SHORT-TERM INVESTMENTS
(Cost: $36,457,125)	$	36,457,125
TOTAL INVESTMENTS IN SECURITIES – 104.11%
(Cost: $807,497,178)		855,357,430
Other Assets, Less Liabilities – (4.11)%		(33,777,045	)
NET ASSETS – 100.00%	$	821,580,385

GDR – Global Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

SP GDR – Sponsored Global Depositary Receipts

^a Non-income earning security.

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

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

^d This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S 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.

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.82%
ADVERTISING – 0.22%
Groupe Aeroplan Inc.	592,683	$	6,639,261
			6,639,261
AEROSPACE & DEFENSE – 0.21%
CAE Inc.	754,754		6,362,513
			6,362,513
APPAREL – 0.26%
Gildan Activewear Inc.a	337,139		7,913,732
			7,913,732
AUTO PARTS & EQUIPMENT – 0.58%
Magna International Inc. Class A	313,043		17,770,547
			17,770,547
BANKS – 23.15%
Bank of Montreal	1,624,429		86,066,535
Bank of Nova Scotia	3,018,219		136,497,344
Canadian Imperial Bank of Commerce	1,130,443		74,878,012
National Bank of Canada	474,383		27,041,559
Royal Bank of Canada	4,137,266		222,373,889
Toronto-Dominion Bank (The)	2,530,951		161,011,538
			707,868,877
CHEMICALS – 4.10%
Agrium Inc.	462,417		29,811,339
Potash Corp. of Saskatchewan Inc.	871,128		95,606,082
			125,417,421
COMMERCIAL SERVICES – 0.19%
Ritchie Bros. Auctioneers Inc.b	279,188		5,829,679
			5,829,679
COMPUTERS – 3.83%
CGI Group Inc. Class Aa	760,114		10,643,538
Research In Motion Ltd.a	1,508,173		106,376,174
			117,019,712
DIVERSIFIED FINANCIAL SERVICES – 0.97%
CI Financial Corp.	476,749		9,427,176
IGM Financial Inc.	349,483		14,218,051
TMX Group Inc.	218,855		5,994,467
			29,639,694

Security	Shares	Value
ELECTRIC – 0.86%
Fortis Inc.	502,775	$	12,971,923
TransAlta Corp.	643,357		13,354,702
			26,326,625
ENGINEERING & CONSTRUCTION – 0.68%
SNC-Lavalin Group Inc.	443,886		20,683,462
			20,683,462
FOOD – 1.62%
Empire Co. Ltd. Class A	85,176		3,941,490
George Weston Ltd.	152,607		9,953,855
Loblaw Companies Ltd.	324,386		11,324,891
Metro Inc. Class A	317,962		12,264,829
Saputo Inc.	427,063		12,141,769
			49,626,834
FOREST PRODUCTS & PAPER – 0.45%
Sino-Forest Corp. Class Aa	706,251		13,677,996
			13,677,996
GAS – 0.34%
Canadian Utilities Ltd. Class A	247,247		10,442,411
			10,442,411
HAND & MACHINE TOOLS – 0.27%
Finning International Inc.	500,729		8,337,982
			8,337,982
HOLDING COMPANIES – DIVERSIFIED – 1.60%
Brookfield Asset Management Inc. Class A	1,515,989		35,828,947
Onex Corp.	284,482		6,823,046
Sherritt International Corp.	871,414		6,125,745
			48,777,738
INSURANCE – 8.42%
Fairfax Financial Holdings Ltd.	57,553		19,663,692
Genworth MI Canada Inc.	155,416		4,006,893
Great-West Lifeco Inc.	836,381		21,420,913
Industrial Alliance Insurance and Financial Services Inc.	236,600		7,425,159
Intact Financial Corp.	353,921		14,137,419
Manulife Financial Corp.	5,166,287		94,385,734
Power Corp. of Canada	1,022,073		28,110,755
Power Financial Corp.	727,149		21,354,563
Sun Life Financial Inc.	1,654,723		46,966,924
			257,472,052

18 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2010

Security	Shares	Value
IRON & STEEL – 0.10%
Gerdau Ameristeel Corp.	448,357	$	3,147,556
			3,147,556
MANUFACTURING – 0.74%
Bombardier Inc. Class B	4,230,813		22,776,220
			22,776,220
MEDIA – 3.50%
Rogers Communications Inc. Class B	1,378,923		45,231,336
Shaw Communications Inc. Class B	1,036,456		19,582,787
Thomson Reuters Corp.	1,099,197		37,979,729
Yellow Pages Income Fund	751,205		4,157,765
			106,951,617
MINING – 15.16%
Agnico-Eagle Mines Ltd.	460,173		26,453,580
Barrick Gold Corp.	2,894,911		108,598,535
Cameco Corp.	1,155,898		31,605,518
Eldorado Gold Corp.a	1,569,457		19,734,220
First Quantum Minerals Ltd.	236,046		18,312,855
Franco-Nevada Corp.	336,827		8,725,411
Goldcorp Inc.	2,157,568		81,285,168
IAMGOLD Corp.	1,029,210		15,073,722
Inmet Mining Corp.	149,058		8,089,282
Ivanhoe Mines Ltd.a	752,388		11,966,169
Kinross Gold Corp.	2,048,811		36,965,633
Pan American Silver Corp.	300,482		6,410,775
Silver Wheaton Corp.a	953,641		14,490,254
Teck Resources Ltd. Class Ba	1,449,660		53,078,993
Yamana Gold Inc.	2,158,802		22,691,982
			463,482,097
OIL & GAS – 20.94%
ARC Energy Trust	366,992		7,621,434
Canadian Natural Resources Ltd.	1,596,651		107,072,825
Canadian Oil Sands Trust	700,336		18,519,695
Cenovus Energy Inc.	2,208,757		53,706,471
Crescent Point Energy Corp.	534,017		19,704,492
EnCana Corp.	2,209,042		72,084,638
Enerplus Resources Fund	519,477		11,589,259
Ensign Energy Services Inc.	384,475		5,478,210
Husky Energy Inc.	752,388		19,162,955

Security	Shares	Value
Imperial Oil Ltd.	873,461	$	32,022,909
Nexen Inc.	1,537,012		34,537,145
Niko Resources Ltd.	131,309		12,423,388
Penn West Energy Trust	1,236,541		25,235,053
PetroBakken Energy Ltd. Class A	200,504		5,349,556
Petrobank Energy and Resources Ltd.a	261,024		13,446,953
Progress Energy Resources Corp.	464,919		5,603,925
Provident Energy Trust	773,682		6,060,918
Suncor Energy Inc.	4,589,803		132,055,357
Talisman Energy Inc.	2,999,087		54,564,968
Vermilion Energy Trust	116,787		3,847,413
			640,087,564
OIL & GAS SERVICES – 0.16%
Trican Well Service Ltd.	370,279		4,774,968
			4,774,968
PHARMACEUTICALS – 0.20%
Biovail Corp.	416,627		6,137,360
			6,137,360
PIPELINES – 3.69%
Enbridge Inc.	1,052,786		46,456,255
TransCanada Corp.	2,013,022		66,240,508
			112,696,763
REAL ESTATE – 0.40%
Brookfield Properties Corp.	885,024		12,350,730
			12,350,730
REAL ESTATE INVESTMENT TRUSTS – 0.20%
RioCan Real Estate Investment Trust	339,089		6,111,590
			6,111,590
RETAIL – 1.95%
Alimentation Couche-Tard Inc.
Class B	363,181		6,755,417
Canadian Tire Corp. Ltd. Class A	230,685		11,469,319
Shoppers Drug Mart Corp.	608,329		25,324,259
Tim Hortons Inc.	530,992		16,046,061
			59,595,056
SOFTWARE – 0.27%
Open Text Corp.a	166,803		8,141,697
			8,141,697

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2010

Security	Shares	Value
TELECOMMUNICATIONS – 1.29%
BCE Inc.	743,807	$	20,548,904
TELUS Corp.	173,158		5,656,981
TELUS Corp. NVS	421,148		13,192,876
			39,398,761
TRANSPORTATION – 3.47%
Canadian National Railway Co.	1,384,312		72,427,696
Canadian Pacific Railway Ltd.	495,380		23,804,674
Viterra Inc.a	1,089,233		10,016,883
			106,249,253
TOTAL COMMON STOCKS
(Cost: $3,280,053,533)			3,051,707,768
SHORT-TERM INVESTMENTS – 0.21%
MONEY MARKET FUNDS – 0.21%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	4,601,717		4,601,717
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	739,545		739,545
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	1,132,114		1,132,114
			6,473,376
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,473,376)			6,473,376
TOTAL INVESTMENTS IN SECURITIES – 100.03%
(Cost: $3,286,526,909)			3,058,181,144
Other Assets, Less Liabilities – (0.03)%			(889,367	)
NET ASSETS – 100.00%		$	3,057,291,777

NVS – Non-Voting Shares

^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.

20 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI CHILE INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.79%
AIRLINES – 4.56%
LAN Airlines SA	1,002,864	$	17,186,468
			17,186,468
APPAREL – 0.23%
Forus SA	614,884		883,031
			883,031
BANKS – 8.87%
Banco de Credito e Inversiones	257,448		9,316,931
Banco Santander Chile SA	299,270,312		18,566,507
CorpBanca SA	651,699,248		5,565,493
			33,448,931
BEVERAGES – 4.22%
Compania Cervecerias Unidas SA	1,022,176		7,928,837
Vina Concha y Toro SA	3,516,552		7,979,156
			15,907,993
BUILDING MATERIALS – 0.52%
SalfaCorp SA	1,098,241		1,976,518
			1,976,518
CHEMICALS – 6.39%
Sociedad Quimica y Minera de Chile SA Series B	653,208		24,075,827
			24,075,827
COMPUTERS – 1.00%
Sonda SA	2,405,432		3,772,233
			3,772,233
ELECTRIC – 26.68%
AES Gener SA	17,154,360		7,883,285
Colbun SA	52,494,640		13,569,701
Empresa Electrica del Norte Grande SA	565,410		1,093,469
Empresa Electrica Pilmaiquen SA	147,339		654,526
Empresa Nacional de Electricidad SA	23,168,144		37,951,838
Enersis SA	92,381,264		39,446,667
			100,599,486
ENGINEERING & CONSTRUCTION – 0.38%
Socovesa SA	3,786,821		1,442,944
			1,442,944

Security	Shares	Value
FOOD – 4.97%
Cencosud SA	4,916,944	$	18,735,698
			18,735,698
FOREST PRODUCTS & PAPER – 9.75%
Empresas CMPC SA	782,000		33,241,551
Masisa SA	24,865,832		3,523,354
			36,764,905
HEALTH CARE – SERVICES – 0.32%
Banmedica SA	1,001,232		1,219,308
			1,219,308
HOLDING COMPANIES – DIVERSIFIED – 13.58%
Empresas Copec SA	3,241,016		51,198,434
			51,198,434
IRON & STEEL – 4.32%
CAP SA	536,248		16,274,832
			16,274,832
METAL FABRICATE & HARDWARE – 0.39%
Madeco SA	24,564,864		1,481,653
			1,481,653
REAL ESTATE – 1.08%
Parque Arauco SA	3,328,464		4,078,922
			4,078,922
RETAIL – 7.26%
La Polar SA	1,872,312		11,077,921
Ripley Corp. SA	3,241,594		2,712,449
S.A.C.I. Falabella SA	2,490,024		13,593,219
			27,383,589
TELECOMMUNICATIONS – 2.73%
Empresa Nacional de Telecomunicaciones SA	726,512		10,273,415
			10,273,415
TRANSPORTATION – 1.11%
Compania SudAmericana de Vapores SAa	5,283,600		4,198,552
			4,198,552

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CHILE INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
WATER – 1.43%
Inversiones Aguas
Metropolitanas SA	4,326,976	$	5,385,418
			5,385,418
TOTAL COMMON STOCKS
(Cost: $290,281,945)			376,288,157	b
SHORT-TERM INVESTMENTS – 0.11%
MONEY MARKET FUNDS – 0.11%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	428,693		428,693
			428,693
TOTAL SHORT-TERM INVESTMENTS
(Cost: $428,693)			428,693
TOTAL INVESTMENTS IN SECURITIES – 99.90%
(Cost: $290,710,638)			376,716,850
Other Assets, Less Liabilities – 0.10%			378,713
NET ASSETS – 100.00%		$	377,095,563

^a Non-income earning security.

^b Securities valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

^c Affiliated issuer. See Note 2.

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

See notes to financial statements.

22 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.90%
AEROSPACE & DEFENSE – 2.24%
Elbit Systems Ltd.	81,324	$	4,993,296
			4,993,296
AIRLINES – 0.16%
El Al Israel Airlines Ltd.a	1,372,059		350,413
			350,413
BANKS – 16.07%
Bank Hapoalim Ltd.a,b	2,550,447		10,590,582
Bank Leumi le-Israela	3,650,022		15,436,642
Israel Discount Bank Ltd. Class Aa	1,979,235		4,321,474
Mizrahi Tefahot Bank Ltd.a	525,609		4,607,164
Union Bank of Israela	167,184		839,350
			35,795,212
CHEMICALS – 11.40%
Frutaromb	154,872		1,402,599
Israel Chemicals Ltd.	1,607,121		19,561,068
Makhteshim-Agan Industries Ltd.	871,317		4,441,330
			25,404,997
COMMERCIAL SERVICES – 0.55%
AL-ROV (Israel) Ltd.a	15,795		425,129
Nitsba Holdings 1995 Ltd.a	97,767		804,699
			1,229,828
COMPUTERS – 0.20%
MATRIX IT Ltd.	97,524		448,324
			448,324
DIVERSIFIED FINANCIAL SERVICES – 0.58%
FIBI Holdings Ltd.a	37,665		907,110
Mivtach Shamir Holdings Ltd.a	12,069		375,310
			1,282,420
ELECTRICAL COMPONENTS & EQUIPMENT – 0.17%
Electra (Israel) Ltd.	3,807		382,161
			382,161
ELECTRONICS – 1.15%
Elron Electronic Industries Ltd.a	68,202		520,202
Ituran Location and Control Ltd.	62,937		970,489
Orbotech Ltd.a	119,394		1,074,546
			2,565,237

Security	Shares	Value
ENGINEERING & CONSTRUCTION – 0.54%
Shikun & Binui Ltd.	640,386	$	1,211,793
			1,211,793
FOOD – 1.02%
Blue Square-Israel Ltd.	56,781		638,063
Maabarot Products Ltd.	13,122		168,257
Shufersal Ltd.	235,386		1,456,484
			2,262,804
FOREST PRODUCTS & PAPER – 0.36%
Hadera Paper Ltd.a	10,287		811,308
			811,308
HEALTH CARE – PRODUCTS – 1.00%
Given Imaging Ltd.a	61,317		1,068,755
Syneron Medical Ltd.a	120,690		1,152,589
			2,221,344
HOLDING COMPANIES – DIVERSIFIED – 0.86%
Clal Industries and Investments Ltd.	169,550		1,140,654
Elco Holdings Ltd.	33,696		493,602
Granite Hacarmel Investments Ltd.a	121,338		277,775
			1,912,031
HOME BUILDERS – 0.36%
Bayside Land Corp. Ltd.	1,322		306,875
Property & Building Corp. Ltd.	5,751		489,638
			796,513
INSURANCE – 2.35%
Clal Insurance Enterprises Holdings Ltd.a,b	56,914		1,378,227
Harel Insurance Investments & Financial Services Ltd.a,b	32,805		1,682,575
Menorah Mivtachim Holdings Ltd.a	107,973		1,388,775
Phoenix Holdings Ltd.a	259,039		795,249
			5,244,826
INTERNET – 8.23%
Check Point Software Technologies Ltd.a	511,758		16,683,311
NetVision Ltd.	24,219		265,361
RADVision Ltd.a	54,999		332,744
Radware Ltd.a	61,722		1,049,274
			18,330,690

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
INVESTMENT COMPANIES – 4.46%
Delek Group Ltd. (The)	13,932	$	3,064,044
Discount Investment Corp. Ltd.	66,987		1,693,068
Elbit Imaging Ltd.a	47,628		1,115,543
Israel Corp. Ltd. (The)a	5,346		4,057,782
			9,930,437
MACHINERY – 0.84%
Ormat Industries Ltd.b	228,177		1,873,243
			1,873,243
MANUFACTURING – 0.35%
FMS Enterprises Migun Ltd.	13,770		549,925
Plasson Industries Ltd.	10,368		227,583
			777,508
MEDIA – 0.50%
Hot Telecommunication Systems Ltd.a	99,144		1,119,617
			1,119,617
OIL & GAS – 1.95%
Delek Drilling LPa,b	738,801		1,809,608
Jerusalem Oil Exploration Ltd.a	26,649		490,170
Naphtha Israel Petroleum Corp. Ltd.a	84,807		375,274
Oil Refineries Ltd.a,b	3,139,317		1,658,350
			4,333,402
PHARMACEUTICALS – 23.93%
Teva Pharmaceutical Industries Ltd.	892,377		53,304,086
			53,304,086
REAL ESTATE – 3.67%
Adgar Investments & Development Ltd.	86,913		112,434
Africa Israel Investments Ltd.a,b	57,024		612,723
Africa Israel Properties Ltd.a	24,948		378,000
Airport City Ltd.a	107,163		479,305
Alony Hetz Properties & Investments Ltd.	225,666		888,091
Amot Investments Ltd.	256,527		642,930
Azorim-Investment Development & Construction Co. Ltd.a	35,640		186,571
British Israel Investments Ltd.	163,701		448,407
Delek Real Estate Ltd.a,b	332,181		329,676
Electra Real Estate Ltd.a	36,489		320,906

Security	Shares	Value
Gazit Globe Ltd.b	186,381	$	1,923,742
Gazit Inc.	24,867		523,731
Jerusalem Economy Ltd.a	62,613		483,869
Melisron Ltd.	33,372		856,270
			8,186,655
RETAIL – 0.68%
Delek Automotive Systems Ltd.b	125,145		1,519,228
			1,519,228
SEMICONDUCTORS – 0.73%
Mellanox Technologies Ltd.a	83,997		1,629,700
			1,629,700
SOFTWARE – 0.47%
Fundtech Ltd.a	14,175		179,597
Retalix Ltd.a	66,744		873,139
			1,052,736
TELECOMMUNICATION EQUIPMENT – 0.18%
AudioCodes Ltd.a	113,319		394,350
			394,350
TELECOMMUNICATIONS – 14.90%
012 Smile.Communications Ltd.a	28,998		851,867
Alvarion Ltd.a	193,185		708,989
Bezeq The Israel Telecommunication Corp. Ltd.	4,191,750		10,882,908
Cellcom Israel Ltd.	144,747		4,853,631
Ceragon Networks Ltd.a,b	105,381		1,228,742
Gilat Satellite Networks Ltd.a	108,322		567,607
NICE Systems Ltd.a,b	223,236		6,847,440
Partner Communications Co. Ltd.	304,155		7,043,420
RRSat Global Communications Network Ltd.	21,186		219,911
			33,204,515
TOTAL COMMON STOCKS
(Cost: $220,435,858)			222,568,674
SHORT-TERM INVESTMENTS – 2.83%
MONEY MARKET FUNDS – 2.83%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	5,399,101		5,399,101

24 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	867,693	$	867,693
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	48,648		48,648
			6,315,442
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,315,442)			6,315,442
TOTAL INVESTMENTS IN SECURITIES – 102.73%
(Cost: $226,751,300)			228,884,116
Other Assets, Less Liabilities – (2.73)%			(6,087,022	)
NET ASSETS – 100.00%		$	222,797,094

^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, 2010

Security	Shares	Value
COMMON STOCKS – 99.90%
BANKS – 1.14%
Banco Compartamos SAa	2,050,300	$	11,234,015
			11,234,015
BEVERAGES – 7.33%
Fomento Economico Mexicano SAB de CV BD Units	10,312,408		44,289,163
Grupo Modelo SAB de CV Series Cb	5,095,356		28,333,351
			72,622,514
BUILDING MATERIALS – 5.84%
Cemex SAB de CV CPOb	60,209,870		57,835,413
			57,835,413
CHEMICALS – 1.41%
Mexichem SAB de CV	5,968,231		13,918,669
			13,918,669
DIVERSIFIED FINANCIAL SERVICES – 5.91%
Bolsa Mexicana de Valores SAB de CVa,b	1,806,700		2,609,540
Financiera Independencia SAB de CVa,b	600,168		592,944
Grupo Financiero Banorte SAB de CV Series O	9,277,100		34,700,839
Grupo Financiero Inbursa SAB de CV Series O	5,947,900		20,627,613
			58,530,936
ENGINEERING & CONSTRUCTION – 4.14%
Carso Infraestructura y Construccion SAB de CV Series B1a,b	6,861,400		4,404,617
Empresas ICA SAB de CVa,b	3,674,374		8,152,012
Grupo Aeroportuario del Centro Norte SAB de CVa	1,441,300		2,285,996
Grupo Aeroportuario del Pacifico SAB de CV Series B	4,364,500		14,890,295
Grupo Aeroportuario del Sureste SAB de CV Series B SP ADR	211,120		11,267,474
			41,000,394
FOOD – 3.58%
Alsea SAB de CVa	2,984,145		2,691,250

Security	Shares	Value
Gruma SAB de CV Series Ba,b	2,111,269	$	4,165,103
Grupo Bimbo SAB de CV Series Aa	3,917,900		28,598,101
			35,454,454
FOREST PRODUCTS & PAPER – 2.91%
Kimberly-Clark de Mexico SAB de CV Series A	5,440,400		28,855,043
			28,855,043
HOLDING COMPANIES – DIVERSIFIED – 4.17%
Alfa SAB de CV Series A	2,801,400		18,911,026
Grupo Carso SAB de CV Series A1	6,293,030		22,400,945
			41,311,971
HOME BUILDERS – 3.50%
Consorcio ARA SAB de CVa,b	7,267,400		4,944,022
Corporacion Geo SAB de CV Series Ba,b	3,349,960		9,873,842
Desarrolladora Homex SAB de CVb	1,908,230		8,706,264
Sare Holding SAB de CV Series Ba,b	1,157,100		375,019
Urbi Desarrollos Urbanos SAB de CVb	4,790,800		10,790,200
			34,689,347
IRON & STEEL – 0.23%
Compania Minera Autlan SAB de CV Series Ba	369,200		805,238
Grupo Simec SAB de CV Series Ba,b	568,400		1,433,710
			2,238,948
MACHINERY – 0.49%
Industrias CH SAB de CV
Series Ba,b	1,481,900		4,826,072
			4,826,072
MEDIA – 5.17%
Grupo Televisa SA CPO	11,388,399		42,161,259
Megacable Holdings SAB de CV CPOa,b	2,050,300		4,767,113
TV Azteca SAB de CV CPOa	7,986,000		4,288,792
			51,217,164
MINING – 6.26%
Grupo Mexico SAB de CV Series B	19,812,810		47,322,739

26 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
Industrias Penoles SAB de CV	730,800	$	14,636,310
			61,959,049
PHARMACEUTICALS – 0.20%
Genomma Lab Internacional SAB de CV Series Ba,b	649,600		1,991,454
			1,991,454
RETAIL – 13.37%
Controladora Comercial Mexicana SA de CV BC Unitsa,b	5,440,400		4,740,319
Grupo Elektra SA de CVa	505,470		26,432,238
Grupo Famsa SAB de CV Series Aa,b	2,050,315		3,919,655
Wal-Mart de Mexico SAB de CV Series V	19,508,300		97,268,510
			132,360,722
TELECOMMUNICATIONS – 34.25%
America Movil SAB de CV Series L	102,393,240		228,373,297
Axtel SAB de CV CPOa,b	8,566,600		6,921,015
Carso Global Telecom SAB de CV Series A1b	6,475,731		29,028,309
Maxcom Telecomunicaciones SAB de CVa,b	731,000		553,955
Telefonos de Mexico SAB de CV Series L	46,669,700		36,535,630
Telmex Internacional SAB de CV Series L	41,330,800		37,694,790
			339,106,996
TOTAL COMMON STOCKS
(Cost: $1,137,877,557)			989,153,161
SHORT-TERM INVESTMENTS – 4.00%
MONEY MARKET FUNDS – 4.00%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	33,936,435		33,936,435
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	5,453,948		5,453,948

Security	Shares	Value
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	233,889	$	233,889
			39,624,272
TOTAL SHORT-TERM INVESTMENTS
(Cost: $39,624,272)			39,624,272
TOTAL INVESTMENTS IN SECURITIES – 103.90%
(Cost: $1,177,501,829)			1,028,777,433
Other Assets, Less Liabilities – (3.90)%			(38,615,802	)
NET ASSETS – 100.00%		$	990,161,631

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 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, 2010

Security	Shares	Value
COMMON STOCKS – 99.86%
BANKS – 14.80%
Absa Group Ltd.	666,225	$	11,543,438
FirstRand Ltd.	5,810,859		13,790,792
Nedbank Group Ltd.a	359,073		5,621,862
Standard Bank Group Ltd.	2,408,535		33,768,826
			64,724,918
BUILDING MATERIALS – 0.99%
Pretoria Portland
Cement Co. Ltd.	1,027,080		4,355,157
			4,355,157
DIVERSIFIED FINANCIAL SERVICES – 3.49%
African Bank Investments Ltd.	1,574,802		6,363,314
Investec Ltd.	443,718		3,152,253
RMB Holdings Ltd.	1,495,422		5,734,288
			15,249,855
ELECTRONICS – 0.60%
Reunert Ltd.	366,120		2,636,331
			2,636,331
ENGINEERING & CONSTRUCTION – 1.66%
Aveng Ltd.	816,318		3,983,338
Murray & Roberts Holdings Ltd.	649,944		3,273,252
			7,256,590
FOOD – 3.62%
Shoprite Holdings Ltd.	840,213		8,210,836
Tiger Brands Ltd.	332,667		7,639,036
			15,849,872
FOREST PRODUCTS & PAPER – 0.92%
Sappi Ltd.b	1,051,785		4,049,602
			4,049,602
HEALTH CARE – PRODUCTS – 1.13%
Aspen Pharmacare Holdings Ltd.b	532,737		4,935,003
			4,935,003
HEALTH CARE – SERVICES – 0.73%
Netcare Ltd.a,b	1,912,167		3,203,369
			3,203,369
HOLDING COMPANIES – DIVERSIFIED – 5.76%
Bidvest Group Ltd.	605,313		10,424,857
Imperial Holdings Ltd.	350,730		4,290,030

Security	Shares	Value
Remgro Ltd.	892,539	$	10,480,594
			25,195,481
HOME FURNISHINGS – 1.48%
Steinhoff International
Holdings Ltd.b	2,599,533		6,484,842
			6,484,842
INSURANCE – 4.13%
Discovery Holdings Ltd.	549,747		2,410,724
Liberty Holdings Ltd.	236,115		2,164,452
Sanlam Ltd.	4,229,820		13,482,224
			18,057,400
IRON & STEEL – 3.09%
ArcelorMittal South Africa Ltd.	368,639		5,611,470
Kumba Iron Ore Ltd.	165,159		7,908,324
			13,519,794
MEDIA – 6.81%
Naspers Ltd. Class N	792,747		29,788,132
			29,788,132
MINING – 21.72%
African Rainbow Minerals Ltd.	218,700		5,250,284
Anglo Platinum Ltd.b	122,796		11,447,288
AngloGold Ashanti Ltd.	633,582		22,897,238
Exxaro Resources Ltd.	257,256		3,859,931
Gold Fields Ltd.	1,380,564		16,004,059
Harmony Gold Mining Co. Ltd.	746,496		6,725,233
Impala Platinum Holdings Ltd.	1,106,622		27,122,310
Northam Platinum Ltd.a	297,108		1,726,556
			95,032,899
OIL & GAS – 9.96%
Sasol Ltd.	1,183,896		43,551,370
			43,551,370
REAL ESTATE – 2.43%
Growthpoint Properties Ltd.	3,025,512		5,743,519
Redefine Income Fund Ltd.	4,924,719		4,870,425
			10,613,944
RETAIL – 4.64%
Foschini Ltd.	421,362		3,326,036
Massmart Holdings Ltd.	415,044		4,966,232
Pick’n Pay Stores Ltd.	470,043		2,477,622
Truworths International Ltd.	890,919		5,746,890

28 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 28, 2010

Security	Shares	Value
Woolworths Holdings Ltd.	1,403,649	$	3,774,441
			20,291,221
TELECOMMUNICATIONS – 11.90%
MTN Group Ltd.	3,035,070		44,311,349
Telkom South Africa Ltd.	537,435		2,352,527
Vodacom Group (Proprietary) Ltd.	766,827		5,377,644
			52,041,520
TOTAL COMMON STOCKS
(Cost: $505,802,852)			436,837,300
SHORT-TERM INVESTMENTS – 1.56%
MONEY MARKET FUNDS – 1.56%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	5,835,904		5,835,904
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	937,892		937,892
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	27,145		27,145
			6,800,941
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,800,941)			6,800,941
TOTAL INVESTMENTS IN SECURITIES – 101.42%
(Cost: $512,603,793)			443,638,241
Other Assets, Less Liabilities – (1.42)%			(6,201,721	)
NET ASSETS – 100.00%		$	437,436,520

^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 29

Schedule of Investments (Unaudited)

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.88%
AEROSPACE & DEFENSE – 0.32%
Aselsan Elektronik Sanayi ve TASa	157,143	$	1,152,052
			1,152,052
AIRLINES – 2.03%
Turk Hava Yollari AO	2,338,182		7,433,154
			7,433,154
AUTO MANUFACTURERS – 0.89%
Otokar Otobus Karoseri Sanayi ASa	56,007		603,183
Tofas Turk Otomobil Fabrikasi ASa	835,401		2,655,766
			3,258,949
BANKS – 42.86%
Akbank TASa	5,010,789		25,357,092
Albaraka Turk Katilim Bankasi AS	1,259,349		2,026,266
Asya Katilim Bankasi ASb	3,006,150		7,099,222
Sekerbank TASa,b	1,170,414		1,716,116
Tekstil Bankasi ASb	699,279		526,268
Turk Ekonomi Bankasi ASa,b	1,468,236		2,295,682
Turkiye Garanti Bankasi AS	14,031,003		51,887,447
Turkiye Halk Bankasi AS	2,087,841		13,206,896
Turkiye Is Bankasi ASa	7,200,060		19,993,030
Turkiye Is Bankasi AS Newa,b	3,320,563		8,789,631
Turkiye Vakiflar Bankasi TAOb	5,007,555		11,435,815
Yapi ve Kredi Bankasi ASb	5,807,383		12,508,847
			156,842,312
BEVERAGES – 4.83%
Anadolu Efes Biracilik ve Malt Sanayii AS	1,352,988		13,693,589
Coca-Cola Icecek ASa	424,977		3,970,330
			17,663,919
BUILDING MATERIALS – 1.97%
Adana Cimento Sanayii TAS Class A	382,788		1,316,234
Akcansa Cimento Sanayi ve TAS	319,725		1,410,536
Bolu Cimento Sanayii AS	485,900		592,657
Cimsa Cimento Sanayi ve TASa	270,627		1,395,844
Goltas Goller Bolgesi Cimento Sanayi ve TAS	19,110		805,885
Mardin Cimento Sanayii ve TAS	334,058		1,701,337
			7,222,493

Security	Shares	Value
CHEMICALS – 1.46%
Aksa Akrilik Kimya Sanayii ASb	554,337	$	805,602
Bagfas Bandirma Gubre Fabrikalari ASa	12,054		969,732
Gubre Fabrikalari TASa,b	111,426		686,768
Petkim Petrokimya Holding ASa,b	547,281		2,893,788
			5,355,890
COMMERCIAL SERVICES – 0.64%
Ihlas Holding ASa,b	1,983,471		772,104
Koza Anadolu Metal Madencilik Isletmeleri ASa,b	648,123		1,555,815
			2,327,919
DISTRIBUTION & WHOLESALE – 0.64%
Aygaz AS	601,377		2,340,974
			2,340,974
DIVERSIFIED FINANCIAL SERVICES – 0.90%
Finans Finansal Kiralama ASb	383,082		526,898
Is Yatirim Menkul Degerler AS	237,699		419,464
Turkiye Sinai Kalkinma Bankasi ASb	1,802,662		2,339,069
			3,285,431
ELECTRIC – 0.69%
Akenerji Elektrik Uretim ASa	130,977		1,444,584
Zorlu Enerji Elektrik Uretim ASa,b	584,031		1,091,257
			2,535,841
ENGINEERING & CONSTRUCTION – 2.75%
Enka Insaat ve Sanayi AS	1,564,228		6,139,799
TAV Havalimanlari Holding ASa,b	1,092,063		3,932,234
			10,072,033
ENTERTAINMENT – 0.39%
Fenerbahce Sportif Hizmetler Sanayi ve TAS	25,137		799,113
Galatasaray Sportif Sinai ve Ticari Yatirimlar AS	5,439		638,699
			1,437,812
FOOD – 4.04%
Banvit Bandirma Vitaminli Yem Sanayii ASa,b	233,877		737,433
BIM Birlesik Magazalar AS	253,575		11,269,269
Pinar Sut Mamulleri Sanayii AS	120,246		565,597

30 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
Tat Konserve Sanayii ASa,b	409,689	$	818,660
Ulker Biskuvi Sanayi ASa	627,984		1,385,244
			14,776,203
FOREST PRODUCTS & PAPER – 0.41%
Ipek Matbaacilik Sanayi ve TASb	347,802		613,762
Kartonsan Karton Sanayi ve TAS	12,201		902,400
			1,516,162
HOLDING COMPANIES – DIVERSIFIED – 9.62%
Alarko Holding AS	447,321		1,050,574
Dogan Sirketler Grubu Holdings AS	5,731,531		3,904,439
Eczacibasi Yatirim Holding Ortakligi AS	210,798		672,869
Haci Omer Sabanci Holding AS	3,506,099		13,306,958
Haci Omer Sabanci Holding AS Newb	619,167		2,289,715
KOC Holding ASa,b	3,226,650		9,629,605
Tekfen Holding ASa,b	865,536		2,807,721
Yazicilar Holding ASa	267,393		1,561,318
			35,223,199
HOME FURNISHINGS – 0.46%
Vestel Beyaz Esya Sanayi ve TASa	381,612		866,540
Vestel Elektronik Sanayi ve TASa,b	559,482		827,599
			1,694,139
HOUSEWARES – 1.01%
Anadolu Cam Sanayii ASb	579,621		691,928
Turk Sise ve Cam Fabrikalari ASb	2,572,941		3,004,700
			3,696,628
INSURANCE – 1.19%
Aksigorta ASa	814,674		835,102
Anadolu Anonim Turk Sigorta Sirketi	1,275,079		1,058,878
Anadolu Hayat Emeklilik AS	251,076		759,084
Gunes Sigorta ASa,b	249,900		321,019
Yapi Kredi Sigorta AS	187,131		1,371,901
			4,345,984
IRON & STEEL – 2.73%
Eregli Demir ve Celik Fabrikalari TASb	2,671,872		7,315,212
Izmir Demir Celik Sanayi ASb	300,615		376,415

Security	Shares	Value
Kardemir Karabuk Demir Celik Sanayi ve TAS Class Ab	1,177,176	$	557,523
Kardemir Karabuk Demir Celik Sanayi ve TAS Class Bb	618,576		292,964
Kardemir Karabuk Demir Celik Sanayi ve TAS Class Da,b	3,816,267		1,436,037
			9,978,151
MACHINERY – 0.14%
Turk Traktor ve Ziraat Makineleri ASa	89,082		497,035
			497,035
MANUFACTURING – 0.46%
Trakya Cam Sanayii ASa,b	1,357,692		1,664,799
			1,664,799
MEDIA – 1.01%
Dogan Gazetecilik ASb	316,638		579,311
Dogan Yayin Holding ASa,b	1,339,023		1,372,600
Hurriyet Gazetecilik ve Matbaacilik ASa,b	1,659,483		1,733,395
			3,685,306
METAL FABRICATE & HARDWARE – 0.11%
Borusan Mannesmann Boru Sanayi ve TASb	56,595		414,911
			414,911
MINING – 0.16%
Park Elektrik Madencilik Sanayi ve TASa,b	348,537		583,401
			583,401
OIL & GAS – 4.15%
Turkiye Petrol Rafinerileri AS	836,724		15,199,839
			15,199,839
PHARMACEUTICALS – 1.10%
Deva Holding ASb	386,022		771,368
Deva Holding AS Newb	97,818		195,465
EIS Eczacibasi Ilac Sanayi ve TAS	1,099,266		1,854,278
Selcuk Ecza Deposu Ticaret ve Sanayi AS	690,606		1,209,742
			4,030,853

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
REAL ESTATE INVESTMENT TRUSTS – 0.95%
Is Gayrimenkul Yatirim Ortakligi ASa	1,654,485	$	1,610,100
Sinpas Gayrimenkul Yatirim Ortakligi ASa	1,336,671		1,864,497
			3,474,597
RETAIL – 0.44%
Dogus Otomotiv Servis ve TASb	257,838		806,293
Turcas Petrolculuk ASa	274,302		811,508
			1,617,801
TELECOMMUNICATIONS – 11.42%
Nortel Networks Netas Telekomunikasyon AS	15,141		579,569
Turk Telekomunikasyon AS	3,506,391		11,010,434
Turkcell Iletisim Hizmetleri AS	5,145,882		30,213,924
			41,803,927
TRANSPORTATION – 0.11%
Celebi Hava Servisi ASa	40,572		405,365
			405,365
TOTAL COMMON STOCKS
(Cost: $375,449,887)			365,537,079
SHORT-TERM INVESTMENTS – 19.82%
MONEY MARKET FUNDS – 19.82%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	62,478,488		62,478,488
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	10,040,962		10,040,962
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	31,152		31,152
			72,550,602
TOTAL SHORT-TERM INVESTMENTS
(Cost: $72,550,602)			72,550,602

	Value
TOTAL INVESTMENTS IN SECURITIES – 119.70%
(Cost: $448,000,489)	$	438,087,681
Other Assets, Less Liabilities – (19.70)%		(72,100,065	)
NET ASSETS – 100.00%	$	365,987,616

^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 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2010

	iShares MSCI
	Brazil Index Fund			BRIC Index Fund			Canada Index Fund			Chile Investable Market Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	6,033,363,817		$	771,040,053		$	3,280,053,533		$	290,281,945
Affiliated issuers (Note 2)		18,117,258			36,457,125			6,473,376			428,693
Total cost of investments	$	6,051,481,075		$	807,497,178		$	3,286,526,909		$	290,710,638
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	10,228,353,307		$	818,900,305		$	3,051,707,768		$	376,288,157
Affiliated issuers (Note 2)		18,117,258			36,457,125			6,473,376			428,693
Total fair value of investments		10,246,470,565			855,357,430			3,058,181,144			376,716,850
Foreign currencies, at valueb		11,478,424			1,036,945			5,789,915			–
Receivables:
Investment securities sold		117,176,147			5,327,554			10,623,621			2,364,477
Dividends and interest		62,422,722			1,828,477			2,881,324			310,625
Capital shares sold		–			–			–			2,816,121
Total Assets		10,437,547,858			863,550,406			3,077,476,004			382,208,073
LIABILITIES
Payables:
Investment securities purchased		115,073,655			5,202,290			13,530,603			4,938,898
Collateral for securities on loan (Note 5)		18,108,900			36,340,636			5,341,262			–
Capital shares redeemed		–			–			99,693			–
Investment advisory fees (Note 2)		4,700,042			427,095			1,212,669			173,612
Total Liabilities		137,882,597			41,970,021			20,184,227			5,112,510
NET ASSETS	$	10,299,665,261		$	821,580,385		$	3,057,291,777		$	377,095,563
Net assets consist of:
Paid-in capital	$	7,109,973,519		$	803,042,229		$	3,369,968,735		$	313,758,887
Undistributed (distributions in excess of) net investment income		(180,280,356	)		(661,306	)		5,729,136			366,830
Accumulated net realized loss		(825,283,849	)		(28,688,733	)		(90,065,672	)		(23,038,162	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		4,195,255,947			47,888,195			(228,340,422	)		86,008,008
NET ASSETS	$	10,299,665,261		$	821,580,385		$	3,057,291,777		$	377,095,563
Shares outstandingc		150,150,000			19,150,000			118,300,000			6,800,000
Net asset value per share	$	68.60		$	42.90		$	25.84		$	55.46

^a Securities on loan with values of $17,740,368, $34,606,374, $5,086,651 and $—, respectively. See Note 5.

^b Cost of foreign currencies: $11,425,136, $1,021,457, $5,776,886 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, 2010

	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	$	220,435,858		$	1,137,877,557		$	505,802,852		$	375,449,887
Affiliated issuers (Note 2)		6,315,442			39,624,272			6,800,941			72,550,602
Total cost of investments	$	226,751,300		$	1,177,501,829		$	512,603,793		$	448,000,489
Investments in securities, at fair value
(including securities on loana) (Note 1):
Unaffiliated issuers	$	222,568,674		$	989,153,161		$	436,837,300		$	365,537,079
Affiliated issuers (Note 2)		6,315,442			39,624,272			6,800,941			72,550,602
Total fair value of investments		228,884,116			1,028,777,433			443,638,241			438,087,681
Foreign currencies, at valueb		274,308			1,071,273			400,525			496,034
Receivables:
Investment securities sold		6,280,661			–			1,018,763			–
Due from custodian (Note 4)		9,871,242			–			–			–
Dividends and interest		144,127			87,509			211,434			114,689
Capital shares sold		22,034			–			–			–
Total Assets		245,476,488			1,029,936,215			445,268,963			438,698,404
LIABILITIES
Payables:
Investment securities purchased		16,317,778			–			822,576			–
Collateral for securities on loan (Note 5)		6,266,794			39,390,383			6,773,796			72,519,450
Capital shares redeemed		–			–			20,741			–
Investment advisory fees (Note 2)		94,822			384,201			215,330			191,338
Total Liabilities		22,679,394			39,774,584			7,832,443			72,710,788
NET ASSETS	$	222,797,094		$	990,161,631		$	437,436,520		$	365,987,616
Net assets consist of:
Paid-in capital	$	236,504,099		$	1,144,207,978		$	531,789,158		$	371,228,302
Distributions in excess of net investment income		(311,852	)		(514,676	)		(2,376,481	)		(1,743,321	)
Undistributed net realized gain
(accumulated net realized loss)		(15,529,100	)		(4,807,275	)		(23,008,041	)		6,422,328
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		2,133,947			(148,724,396	)		(68,968,116	)		(9,919,693	)
NET ASSETS	$	222,797,094		$	990,161,631		$	437,436,520		$	365,987,616
Shares outstandingc		4,050,000			20,300,000			8,100,000			7,350,000
Net asset value per share	$	55.01		$	48.78		$	54.00		$	49.79

^a Securities on loan with values of $5,940,126, $37,256,404, $6,416,340 and $76,554,113, respectively. See Note 5.

^b Cost of foreign currencies: $274,157, $1,071,273, $405,018 and $502,919, 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 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2010

	iShares MSCI
	Brazil Index Fund			BRIC Index Fund			Canada Index Fund			Chile Investable Market Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	126,255,711		$	4,604,014		$	30,507,212		$	1,665,521
Interest from affiliated issuers (Note 2)		3,582			207			476			230
Securities lending income from affiliated issuers (Note 2)		13,702			126,431			49,064			–
Total investment income		126,272,995			4,730,652			30,556,752			1,665,751
EXPENSES
Investment advisory fees (Note 2)		31,948,241			2,464,371			7,701,894			869,651
Total expenses		31,948,241			2,464,371			7,701,894			869,651
Net investment income		94,324,754			2,266,281			22,854,858			796,100
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		188,163,583			(9,186,734	)		(47,281,989	)		619,522
In-kind redemptions		–			–			109,323,294			–
Foreign currency transactions		7,160,673			(345,666	)		100,013			(15,667	)
Net realized gain (loss)		195,324,256			(9,532,400	)		62,141,318			603,855
Net change in unrealized appreciation (depreciation) on:
Investments		1,612,781,353			70,434,953			149,810,161			51,878,540
Translation of assets and liabilities in foreign currencies		(1,222,827	)		13,802			68,173			1,783
Net change in unrealized appreciation (depreciation)		1,611,558,526			70,448,755			149,878,334			51,880,323
Net realized and unrealized gain		1,806,882,782			60,916,355			212,019,652			52,484,178
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,901,207,536		$	63,182,636		$	234,874,510		$	53,280,278

^a Net of foreign withholding tax of $14,068,123, $432,504, $5,379,631 and $680,655, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 35

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2010

	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	$	1,339,924		$	9,745,836		$	6,727,741		$	732,151
Interest from affiliated issuers (Note 2)		40			139			77			108
Securities lending income from affiliated issuers (Note 2)		71,605			354,969			12,656			373,232
Total investment income		1,411,569			10,100,944			6,740,474			1,105,491
EXPENSES
Investment advisory fees (Note 2)		474,579			2,496,621			1,650,957			1,110,551
Total expenses		474,579			2,496,621			1,650,957			1,110,551
Net investment income (loss)		936,990			7,604,323			5,089,517			(5,060	)
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(2,296,963	)		(12,549,672	)		(4,154,538	)		(3,881,689	)
In-kind redemptions		–			45,484,447			34,870,831			20,875,511
Foreign currency transactions		12,664			(51,798	)		(1,630	)		22,115
Net realized gain (loss)		(2,284,299	)		32,882,977			30,714,663			17,015,937
Net change in unrealized appreciation (depreciation) on:
Investments		24,519,738			59,345,712			(9,283,080	)		(16,050,200	)
Translation of assets and liabilities in foreign currencies		(3,545	)		15,888			(2,247	)		(7,844	)
Net change in unrealized appreciation (depreciation)		24,516,193			59,361,600			(9,285,327	)		(16,058,044	)
Net realized and unrealized gain		22,231,894			92,244,577			21,429,336			957,893
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	23,168,884		$	99,848,900		$	26,518,853		$	952,833

^a Net of foreign withholding tax of $281,032, $—, $— and $126,084, respectively.

See notes to financial statements.

36 2010 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, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	94,324,754		$	192,844,870		$	2,266,281		$	3,504,150
Net realized gain (loss)		195,324,256			(963,274,219	)		(9,532,400	)		(17,449,387	)
Net change in unrealized appreciation (depreciation)		1,611,558,526			238,177,276			70,448,755			16,000,615
Net increase (decrease) in net assets resulting from operations		1,901,207,536			(532,252,073	)		63,182,636			2,055,378
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(346,504,321	)		(222,728,833	)		(4,169,870	)		(3,193,491	)
Total distributions to shareholders		(346,504,321	)		(222,728,833	)		(4,169,870	)		(3,193,491	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		6,659,059			3,187,809,782			264,728,746			340,101,221
Cost of shares redeemed		(39,063,496	)		(897,722,395	)		–			(2,215,782	)
Net increase (decrease) in net assets from capital share transactions		(32,404,437	)		2,290,087,387			264,728,746			337,885,439
INCREASE IN NET ASSETS		1,522,298,778			1,535,106,481			323,741,512			336,747,326
NET ASSETS
Beginning of period		8,777,366,483			7,242,260,002			497,838,873			161,091,547
End of period	$	10,299,665,261		$	8,777,366,483		$	821,580,385		$	497,838,873
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(180,280,356	)	$	71,899,211		$	(661,306	)	$	1,242,283
SHARES ISSUED AND REDEEMED
Shares sold		100,000			69,150,000			5,900,000			9,700,000
Shares redeemed		(600,000	)		(17,350,000	)		–			(100,000	)
Net increase (decrease) in shares outstanding		(500,000	)		51,800,000			5,900,000			9,600,000

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, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	22,854,858		$	29,085,589		$	796,100		$	3,711,626
Net realized gain (loss)		62,141,318			(88,665,380	)		603,855			(21,842,611	)
Net change in unrealized appreciation (depreciation)		149,878,334			(320,275,596	)		51,880,323			41,659,903
Net increase (decrease) in net assets resulting from operations		234,874,510			(379,855,387	)		53,280,278			23,528,918
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(26,854,188	)		(29,274,634	)		(982,421	)		(3,316,556	)
Total distributions to shareholders		(26,854,188	)		(29,274,634	)		(982,421	)		(3,316,556	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		995,479,759			1,115,573,096			110,015,354			234,309,554
Cost of shares redeemed		(539,845,860	)		(383,866,414	)		(48,422,527	)		(67,475,216	)
Net increase in net assets from capital share transactions		455,633,899			731,706,682			61,592,827			166,834,338
INCREASE IN NET ASSETS		663,654,221			322,576,661			113,890,684			187,046,700
NET ASSETS
Beginning of period		2,393,637,556			2,071,060,895			263,204,879			76,158,179
End of period	$	3,057,291,777		$	2,393,637,556		$	377,095,563		$	263,204,879
Undistributed net investment income included in net assets at end of period	$	5,729,136		$	9,728,466		$	366,830		$	553,151
SHARES ISSUED AND REDEEMED
Shares sold		38,200,000			50,600,000			1,950,000			5,850,000
Shares redeemed		(20,900,000	)		(17,400,000	)		(1,050,000	)		(1,650,000	)
Net increase in shares outstanding		17,300,000			33,200,000			900,000			4,200,000

See notes to financial statements.

38 2010 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, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	936,990		$	2,794,735		$	7,604,323		$	6,673,063
Net realized gain (loss)		(2,284,299	)		(32,145,219	)		32,882,977			(266,827,625	)
Net change in unrealized appreciation (depreciation)		24,516,193			2,015,065			59,361,600			12,202,418
Net increase (decrease) in net assets resulting from operations		23,168,884			(27,335,419	)		99,848,900			(247,952,144	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,587,992	)		(2,877,576	)		(10,960,027	)		(9,905,910	)
Total distributions to shareholders		(1,587,992	)		(2,877,576	)		(10,960,027	)		(9,905,910	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		93,424,177			1,502,612			620,751,861			800,186,831
Cost of shares redeemed		–			(67,698,624	)		(413,756,722	)		(803,735,494	)
Net increase (decrease) in net assets from capital share transactions		93,424,177			(66,196,012	)		206,995,139			(3,548,663	)
INCREASE (DECREASE) IN NET ASSETS		115,005,069			(96,409,007	)		295,884,012			(261,406,717	)
NET ASSETS
Beginning of period		107,792,025			204,201,032			694,277,619			955,684,336
End of period	$	222,797,094		$	107,792,025		$	990,161,631		$	694,277,619
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(311,852	)	$	339,150		$	(514,676	)	$	2,841,028
SHARES ISSUED AND REDEEMED
Shares sold		1,750,000			50,000			12,900,000			22,900,000
Shares redeemed		–			(1,950,000	)		(8,900,000	)		(25,000,000	)
Net increase (decrease) in shares outstanding		1,750,000			(1,900,000	)		4,000,000			(2,100,000	)

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, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	5,089,517		$	15,496,775		$	(5,060	)	$	2,499,255
Net realized gain (loss)		30,714,663			(51,609,671	)		17,015,937			(5,778,951	)
Net change in unrealized appreciation (depreciation)		(9,285,327	)		22,370,334			(16,058,044	)		4,879,633
Net increase (decrease) in net assets resulting from operations		26,518,853			(13,742,562	)		952,833			1,599,937
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(9,778,818	)		(16,108,974	)		(1,919,801	)		(3,253,085	)
Total distributions to shareholders		(9,778,818	)		(16,108,974	)		(1,919,801	)		(3,253,085	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		133,096,316			240,171,487			220,460,071			172,031,636
Cost of shares redeemed		(201,128,100	)		(151,246,258	)		(95,940,296	)		(79,964,959	)
Net increase (decrease) in net assets from capital share transactions		(68,031,784	)		88,925,229			124,519,775			92,066,677
INCREASE (DECREASE) IN NET ASSETS		(51,291,749	)		59,073,693			123,552,807			90,413,529
NET ASSETS
Beginning of period		488,728,269			429,654,576			242,434,809			152,021,280
End of period	$	437,436,520		$	488,728,269		$	365,987,616		$	242,434,809
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(2,376,481	)	$	2,312,820		$	(1,743,321	)	$	181,540
SHARES ISSUED AND REDEEMED
Shares sold		2,400,000			5,600,000			4,200,000			4,250,000
Shares redeemed		(3,700,000	)		(3,900,000	)		(1,900,000	)		(2,100,000	)
Net increase (decrease) in shares outstanding		(1,300,000	)		1,700,000			2,300,000			2,150,000

See notes to financial statements.

40 2010 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	58.26		$	73.27		$	61.59		$	39.09		$	28.18		$	16.96
Income from investment operations:
Net investment incomea		0.63			1.56			1.93			1.09			1.00			0.89
Net realized and unrealized gain (loss)		12.02			(14.63	)		11.59			22.35			10.49			10.79
Total from investment operations		12.65			(13.07	)		13.52			23.44			11.49			11.68
Less distributions from:
Net investment income		(2.31	)		(1.94	)		(1.41	)		(0.94	)		(0.58	)		(0.46	)
Net realized gain		–			–			(0.43	)		–			–			–
Total distributions		(2.31	)		(1.94	)		(1.84	)		(0.94	)		(0.58	)		(0.46	)
Net asset value, end of period	$	68.60		$	58.26		$	73.27		$	61.59		$	39.09		$	28.18
Total return		21.55	%b		(16.05	)%		21.58	%		60.82	%		41.13	%		69.72	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	10,299,665		$	8,777,366		$	7,242,260		$	4,434,334		$	2,468,295		$	552,285
Ratio of expenses to average net assetsc		0.61	%		0.65	%		0.63	%		0.69	%		0.70	%		0.74	%
Ratio of expenses to average net assets exclusive of foreign taxes		n/a			n/a			0.63	%		0.68	%		n/a			n/a
Ratio of net investment income to average net assetsc		1.79	%		3.38	%		2.37	%		2.17	%		2.65	%		3.94	%
Portfolio turnover rated		9	%		30	%		30	%		22	%		15	%		48	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

^d Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2010 and the years ended August 31, 2009, August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 9%, 14%, 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Period from Nov. 12, 2007a to Aug. 31, 2008
Net asset value, beginning of period	$	37.57		$	44.13		$	56.50
Income from investment operations:
Net investment incomeb		0.14			0.58			0.72
Net realized and unrealized gain (loss)		5.43			(6.60	)		(12.93	)
Total from investment operations		5.57			(6.02	)		(12.21	)
Less distributions from:
Net investment income		(0.24	)		(0.54	)		(0.16	)
Total distributions		(0.24	)		(0.54	)		(0.16	)
Net asset value, end of period	$	42.90		$	37.57		$	44.13
Total return		14.77	%c		(13.08	)%		(21.65	)%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	821,580		$	497,839		$	161,092
Ratio of expenses to average net assetsd		0.69	%		0.72	%		0.72	%
Ratio of expenses to average net assets exclusive of foreign taxesd		n/a			n/a			0.72	%
Ratio of net investment income to average net assetsd		0.63	%		1.87	%		1.74	%
Portfolio turnover ratee		5	%		7	%		9	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

^e Portfolio turnover rates exclude portfolio securities received or delivered 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, 2010, the year ended August 31, 2009 and the period ended August 31, 2008 would have been 1%, 6%, and 2%, respectively. See Note 4.

See notes to financial statements.

42 2010 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	23.70		$	30.55		$	29.87		$	24.69		$	20.30		$	14.33
Income from investment operations:
Net investment incomea		0.20			0.41			0.47			0.35			0.25			0.17
Net realized and unrealized gain (loss)		2.18			(6.84	)		0.72			5.11			4.29			6.00
Total from investment operations		2.38			(6.43	)		1.19			5.46			4.54			6.17
Less distributions from:
Net investment income		(0.24	)		(0.42	)		(0.51	)		(0.28	)		(0.15	)		(0.20	)
Total distributions		(0.24	)		(0.42	)		(0.51	)		(0.28	)		(0.15	)		(0.20	)
Net asset value, end of period	$	25.84		$	23.70		$	30.55		$	29.87		$	24.69		$	20.30
Total return		10.05	%b		(20.51	)%		3.88	%		22.33	%		22.46	%		43.35	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,057,292		$	2,393,638		$	2,071,061		$	1,323,122		$	1,101,161		$	420,301
Ratio of expenses to average net assetsc		0.54	%		0.55	%		0.52	%		0.52	%		0.54	%		0.57	%
Ratio of expenses to average net assets exclusive of foreign taxes		n/a			0.55	%		n/a			0.52	%		n/a			n/a
Ratio of net investment income to average net assetsc		1.59	%		2.00	%		1.46	%		1.32	%		1.09	%		1.00	%
Portfolio turnover rated		4	%		6	%		11	%		8	%		20	%		9	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Period from Nov. 12, 2007a to Aug. 31, 2008
Net asset value, beginning of period	$	44.61		$	44.80		$	48.84
Income from investment operations:
Net investment incomeb		0.14			0.76			0.92
Net realized and unrealized gain (loss)		10.90			(0.42	)		(4.38	)
Total from investment operations		11.04			0.34			(3.46	)
Less distributions from:
Net investment income		(0.19	)		(0.53	)		(0.58	)
Total distributions		(0.19	)		(0.53	)		(0.58	)
Net asset value, end of period	$	55.46		$	44.61		$	44.80
Total return		26.69	%c		0.89	%		(7.15	)%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	377,096		$	263,205		$	76,158
Ratio of expenses to average net assetsd		0.61	%		0.65	%		0.63	%
Ratio of net investment income to average net assetsd		0.56	%		1.98	%		2.38	%
Portfolio turnover ratee		20	%		53	%		16	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

^e Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2010, the year ended August 31, 2009 and the period ended August 31, 2008 would have been 2%, 14% and 16%, respectively. See Note 4.

See notes to financial statements.

44 2010 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Period from Mar. 26, 2008a to Aug. 31, 2008
Net asset value, beginning of period	$	46.87		$	48.62		$	50.33
Income from investment operations:
Net investment incomeb		0.31			0.98			0.21
Net realized and unrealized gain (loss)		8.35			(1.75	)		(1.92	)
Total from investment operations		8.66			(0.77	)		(1.71	)
Less distributions from:
Net investment income		(0.52	)		(0.98	)		–
Total distributions		(0.52	)		(0.98	)		–
Net asset value, end of period	$	55.01		$	46.87		$	48.62
Total return		18.51	%c		(0.63	)%		(3.40	)%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	222,797		$	107,792		$	204,201
Ratio of expenses to average net assetsd		0.61	%		0.66	%		0.63	%
Ratio of net investment income to average net assetsd		1.20	%		2.66	%		0.93	%
Portfolio turnover ratee		7	%		27	%		8	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

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

See notes to financial statements.

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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	42.59		$	51.94		$	58.35		$	41.30		$	29.04		$	19.35
Income from investment operations:
Net investment incomea		0.38			0.43			1.40			0.64			0.76			0.42
Net realized and unrealized gain (loss)		6.32			(9.17	)		(6.21	)		16.87			11.98			9.55
Total from investment operations		6.70			(8.74	)		(4.81	)		17.51			12.74			9.97
Less distributions from:
Net investment income		(0.51	)		(0.61	)		(1.60	)		(0.46	)		(0.48	)		(0.28	)
Total distributions		(0.51	)		(0.61	)		(1.60	)		(0.46	)		(0.48	)		(0.28	)
Net asset value, end of period	$	48.78		$	42.59		$	51.94		$	58.35		$	41.30		$	29.04
Total return		15.73	%b		(16.50	)%		(8.44	)%		42.58	%		44.11	%		51.77	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	990,162		$	694,278		$	955,684		$	1,382,810		$	764,107		$	255,557
Ratio of expenses to average net assetsc		0.54	%		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		1.63	%		1.25	%		2.42	%		1.19	%		2.06	%		1.70	%
Portfolio turnover rated		8	%		13	%		13	%		14	%		12	%		9	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

46 2010 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a			Year ended Aug. 31, 2005a
Net asset value, beginning of period	$	51.99		$	55.80		$	62.26		$	48.84		$	41.50		$	29.96
Income from investment operations:
Net investment incomeb		0.51			1.94			2.28			1.50			1.44			0.96
Net realized and unrealized gain (loss)		2.59			(3.84	)		(6.02	)		13.18			6.89			11.18
Total from investment operations		3.10			(1.90	)		(3.74	)		14.68			8.33			12.14
Less distributions from:
Net investment income		(1.09	)		(1.91	)		(2.72	)		(1.26	)		(0.99	)		(0.60	)
Total distributions		(1.09	)		(1.91	)		(2.72	)		(1.26	)		(0.99	)		(0.60	)
Net asset value, end of period	$	54.00		$	51.99		$	55.80		$	62.26		$	48.84		$	41.50
Total return		5.96	%c		(2.23	)%		(6.18	)%		30.34	%		20.06	%		40.62	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	437,437		$	488,728		$	429,655		$	466,940		$	297,898		$	153,530
Ratio of expenses to average net assetsd		0.61	%		0.66	%		0.63	%		0.68	%		0.70	%		0.74	%
Ratio of net investment income to average net assetsd		1.87	%		4.81	%		3.61	%		2.58	%		2.79	%		2.62	%
Portfolio turnover ratee		2	%		16	%		21	%		8	%		7	%		32	%

^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 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 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Period from Mar. 26, 2008a to Aug. 31, 2008
Net asset value, beginning of period	$	48.01		$	52.42		$	50.30
Income from investment operations:
Net investment income (loss)b		(0.00	)c		0.78			0.83
Net realized and unrealized gain (loss)		2.04			(4.22	)		1.29
Total from investment operations		2.04			(3.44	)		2.12
Less distributions from:
Net investment income		(0.26	)		(0.97	)		–
Total distributions		(0.26	)		(0.97	)		–
Net asset value, end of period	$	49.79		$	48.01		$	52.42
Total return		4.25	%d		(5.56	)%		4.22	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	365,988		$	242,435		$	152,021
Ratio of expenses to average net assetse		0.61	%		0.65	%		0.63	%
Ratio of net investment income (loss) to average net assetse		(0.00	)%c		2.39	%		3.78	%
Portfolio turnover ratef		5	%		16	%		27	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Rounds to less than $0.01 or 0.01%, as applicable.

^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 2010 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. 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 non-U.S. issuers that may trade in non-U.S. markets. This 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 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”) using 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 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 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”);

NOTES TO FINANCIAL STATEMENTS 49

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

• 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”).

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.

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. 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. 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 inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include 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 Level 2 investments 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, recent transactions in the same or similar instruments, 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 amount

50 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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.

On Saturday, February 27, 2010, after the last business day but before the end of the reporting period, an earthquake struck the coast of Chile, near the capital city of Santiago. In accordance with, and solely for purposes of, the requirements of Financial Accounting Standards Board Accounting Standards Codification 820-10-35-43 for significant events occurring after the close of market but before the end of the measurement period, the iShares MSCI Chile Investable Market Index Fund adjusted the quoted prices of the securities in its portfolio using a market approach in order to better reflect the fair value of its securities as of Sunday, February 28, 2010. The NAV of the iShares MSCI Chile Investable Market Index Fund for Monday, March 1, 2010 was calculated using the usual methodology in accordance with the pricing policy and procedures.

The following table summarizes the values of each Fund’s investments according to the fair value hierarchy as of February 28, 2010. The breakdown of each Fund’s investments into major categories is disclosed in its respective Schedule of Investments.

	Investments in Securities
iShares MSCI Index Fund and Asset Class	Level 1		Level 2		Level 3		Total
Brazil	$	10,246,470,565	$	–	$	–	$	10,246,470,565
BRIC		855,357,430		–		–		855,357,430
Canada		3,058,181,144		–		–		3,058,181,144
Chile Investable Market
Common Stocks		–		–		376,288,157		376,288,157
Short-Term Investments		428,693		–		–		428,693
Total Chile Investable Market		428,693		–		376,288,157		376,716,850
Israel Capped Investable Market		228,884,116		–		–		228,884,116
Mexico Investable Market		1,028,777,433		–		–		1,028,777,433
South Africa		443,638,241		–		–		443,638,241
Turkey Investable Market		438,087,681		–		–		438,087,681

The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the iShares MSCI Chile Investable Market Index Fund for the six months ended February 28, 2010:

Balance at Beginning of Period		Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation)		Net Purchases (Sales)		Net Transfers In (Out)		Balance at End of Period		Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at End of Period
$	–	$	–	$	–	$	376,288,157	$	376,288,157	$	86,006,212

NOTES TO FINANCIAL STATEMENTS 51

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. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. 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. 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, 2010, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions to shareholders from net investment income, if any, 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, 2010.

52 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The Funds had tax basis net capital loss carryforwards as of August 31, 2009, 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

Expiring 2017

Total

Brazil

$

–

$

–

$

–

$

–

$

–

$

–

$

–

$

29,287,453

$

29,287,453

BRIC

–

–

–

–

–

–

–

1,540,740

1,540,740

Canada

–

–

–

2,931,648

–

5,363,291

5,107,471

27,886,883

41,289,293

Chile Investable Market

–

–

–

–

–

–

–

1,886,881

1,886,881

Israel Capped Investable Market

–

–

–

–

–

–

–

784,479

784,479

Mexico Investable Market

47,326

2,329,290

3,136,171

12,912

632,766

–

853,150

8,973,988

15,985,603

South Africa

–

–

527,613

–

260,738

1,607,845

972,024

15,339,464

18,707,684

Turkey Investable Market

–

–

–

–

–

–

–

720,636

720,636

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, 2010, 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)
Brazil	$	6,754,475,000	$	3,557,926,171	$	(65,930,606	)	$	3,491,995,565
BRIC		820,901,907		63,734,216		(29,278,693	)		34,455,523
Canada		3,353,911,576		875,733		(296,606,165	)		(295,730,432	)
Chile Investable Market		300,667,900		76,150,726		(101,776	)		76,048,950
Israel Capped Investable Market		231,100,325		16,769,411		(18,985,620	)		(2,216,209	)
Mexico Investable Market		1,191,607,148		25,442,432		(188,272,147	)		(162,829,715	)
South Africa		524,396,734		6,284,238		(87,042,731	)		(80,758,493	)
Turkey Investable Market		452,726,981		7,248,808		(21,888,108	)		(14,639,300	)

Management has reviewed the tax positions as of February 28, 2010, 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.

NOTES TO FINANCIAL STATEMENTS 53

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

On December 1, 2009, Barclays PLC (“Barclays”) completed the sale of its interest in BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A., and certain affiliated companies to BlackRock, Inc. (“BlackRock”, and such sale, the “Transaction”). BTC is a wholly-owned subsidiary of BlackRock.

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.

Under the 1940 Act, upon completion of the Transaction on December 1, 2009, each Fund’s investment advisory agreement with BlackRock Fund Advisors (“BFA”), formerly known as Barclays Global Fund Advisors, was automatically terminated. The Board and shareholders of the Funds approved a new investment advisory agreement with BFA. The investment advisory fee rates and expense arrangements for the Funds remained the same after the Transaction.

Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA 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 Canada and iShares MSCI Mexico Investable Market Index Funds, BFA 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, BFA 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

54 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

For its investment advisory services to the iShares MSCI BRIC Index Fund, BFA 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

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BTC to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA, the Funds’ investment adviser. As securities lending agent, BTC 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, 2010, BTC earned securities lending agent fees as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees	iShares MSCI Index Fund	Securities Lending Agent Fees
Brazil	$9,011	Mexico Investable Market	$219,478
BRIC	85,793	South Africa	7,453
Canada	33,335	Turkey Investable Market	236,561
Israel Capped Investable Market	46,037

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in interest from affiliated issuers in the Statements of Operations.

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2010 were as follows:

iShares MSCI Index Fund	Purchases		Sales
Brazil	$	906,860,289	$	1,195,212,229
BRIC		122,148,679		32,139,411
Canada		113,029,276		112,641,341
Chile Investable Market		118,798,019		57,947,295
Israel Capped Investable Market		10,804,287		10,831,163
Mexico Investable Market		70,029,535		73,250,357
South Africa		8,315,455		12,289,675
Turkey Investable Market		22,118,126		18,005,225

NOTES TO FINANCIAL STATEMENTS 55

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

In-kind transactions (see Note 4) for the six months ended February 28, 2010 were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
BRIC	$	171,405,050	$	–
Canada		990,106,352		536,723,371
Israel Capped Investable Market		93,051,537		–
Mexico Investable Market		619,773,069		413,188,779
South Africa		132,144,049		200,916,451
Turkey Investable Market		217,463,382		93,537,724

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 an optimized 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 Bank and Trust Company, 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.

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 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 BFA; such reinvestments are subject to investment risk.

As of February 28, 2010, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The market value of the securities on loan as of February 28, 2010 and the value of the related

56 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 BTC as securities lending agent.

6. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

NOTES TO FINANCIAL STATEMENTS 57

Shareholder Meeting Results (Unaudited)

iSHARES^®, INC.

Two separate special meetings of shareholders of iShares, Inc. were held on November 4, 2009. The shareholder meetings for all the Funds except for the iShares MSCI Israel Capped Investable Market, iShares MSCI South Africa and iShares MSCI Turkey Investable Market Index Funds were adjourned until November 19, 2009. The shareholder meetings for the iShares MSCI Brazil and iShares MSCI Mexico Investable Market Index Funds were subsequently adjourned until November 30, 2009 and on that date were further adjourned until December 22, 2009, at which time the shareholders approved the new advisory agreement. The proposals acted upon by shareholders at the special meetings and the results of the shareholder vote were as follows:

First Meeting

Shareholders of the Funds approved Proposals 1 and 2.

Proposal 1

To approve a new investment advisory agreement between the Company and Barclays Global Fund Advisors (“BGFA”), on behalf of each Fund, which took effect upon the consummation of the Barclays PLC binding agreement to sell its interest in BGFA and certain affiliated companies to BlackRock, Inc. (the “Transaction”).

iShares MSCI Index Fund	Votes For	Votes Against	Votes Abstaining	Broker Non- Votes*
Brazil	64,454,749	1,757,924	3,791,078	10,553,765
BRIC	5,983,540	66,927	76,988	707,288
Canada	36,264,143	1,144,751	11,403,542	3,939,439
Chile Investable Market	3,173,220	42,599	27,837	436,038
Israel Capped Investable Market	1,482,415	11,995	6,038	–
Mexico Investable Market	8,400,358	102,386	362,633	402,415
South Africa	4,661,441	65,837	42,663	–
Turkey Investable Market	2,087,839	15,034	24,658	–

Proposal 2

To approve a change in the classification of certain Funds’ investment objective from a fundamental investment policy to a non-fundamental investment policy.

iShares MSCI Index Fund	Votes For	Votes Against	Votes Abstaining	Broker Non- Votes*
Brazil	62,412,691	3,418,675	4,172,385	10,553,765
Canada	35,369,590	1,747,288	11,694,703	3,940,294

58 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Meeting Results (Unaudited) (Continued)

iSHARES^®, INC.

Second Meeting

This proposal was approved by the shareholders of the Company on November 4, 2009. All nominees who previously served as Directors of the Company were re-elected and the term of their election commenced immediately. Robert S. Kapito was newly elected as a Director to the Company and the term of his election took effect upon the consummation of the Transaction.

Proposal 1**

To elect a Board of Directors of the Company.

Independent Director	Votes For	Votes Withheld
George G.C. Parker	1,597,646,058	46,083,560
J. Darrell Duffie	1,517,311,684	126,417,934
Cecilia H. Herbert	1,599,757,544	43,972,074
Charles A. Hurty	1,599,463,459	44,266,159
John E. Kerrigan	1,599,938,757	43,790,861
John E. Martinez	1,599,890,206	43,839,412
Robert H. Silver	1,601,631,280	42,098,338
Interested Director	Votes For	Votes Withheld
Robert S. Kapito	1,600,119,598	43,610,020
Lee T. Kranefuss	1,117,041,744	526,687,874

* Broker non-votes are proxies received by the Fund from brokers or nominees who did not receive instructions from the beneficial owner or other persons entitled to vote and who have no discretionary power to vote on a particular matter. Broker non-votes have the effect of a vote against the proposal.

** Denotes Company-wide proposal and voting results.

SHAREHOLDER MEETING RESULTS 59

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 Russell Domestic Index Funds	Trading Symbol
iShares Russell 3000	IWV
iShares Russell 3000 Growth	IWZ
iShares Russell 3000 Value	IWW
iShares Russell Top 200	IWL
iShares Russell Top 200 Growth	IWY
iShares Russell Top 200 Value	IWX
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds
iShares Dow Jones U.S.	IYY
iShares KLD Socially Responsible Index Funds
iShares FTSE KLD 400 Social	DSI
iShares FTSE KLD Select Social	KLD
iShares NYSE Domestic Index Funds
iShares NYSE Composite	NYC
iShares NYSE 100	NY
iShares Domestic Specialty Index Funds
iShares S&P U.S. Preferred Stock	PFF
iShares Dow Jones Select Dividend	DVY

iShares North American Sector/Subsector Index Funds	Trading Symbol
iShares S&P North American Technology Sector	IGM
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 Natural Resources Sector	IGE
iShares Domestic Sector Index Funds
iShares Dow Jones U.S. Basic Materials Sector	IYM
iShares Dow Jones U.S. Consumer Goods Sector	IYK
iShares Dow Jones U.S. Consumer Services Sector	IYC
iShares Dow Jones U.S. Energy Sector	IYE
iShares Dow Jones U.S. Financial Sector	IYF
iShares Dow Jones U.S. Healthcare Sector	IYH
iShares Dow Jones U.S. Industrial Sector	IYJ
iShares Dow Jones U.S. Technology Sector	IYW
iShares Dow Jones U.S. Telecommunications Sector	IYZ
iShares Dow Jones U.S. Utilities Sector	IDU
iShares Domestic Subsector Index Funds
iShares Dow Jones Transportation Average	IYT
iShares Dow Jones U.S. Aerospace & Defense	ITA
iShares Dow Jones U.S. Broker-Dealers	IAI
iShares Dow Jones U.S. Financial Services	IYG
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 Nasdaq Biotechnology	IBB
iShares Domestic Real Estate Index Funds
iShares Cohen & Steers Realty Majors	ICF
iShares Dow Jones U.S. Real Estate	IYR
iShares FTSE NAREIT Real Estate 50	FTY
iShares FTSE NAREIT Industrial/Office Capped	FIO
iShares FTSE NAREIT Mortgage Plus Capped	REM
iShares FTSE NAREIT Residential Plus Capped	REZ
iShares FTSE NAREIT Retail Capped	RTL
iShares Target Risk Index Funds
iShares S&P Conservative Allocation	AOK
iShares S&P Moderate Allocation	AOM
iShares S&P Growth Allocation	AOR
iShares S&P Aggressive Allocation	AOA

60 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds (Continued)

iShares International Country Index Funds	Trading Symbol
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 S&P/TOPIX 150	ITF
iShares MSCI Malaysia	EWM
iShares MSCI Mexico Investable Market	EWW
iShares MSCI Netherlands Investable Market	EWN
iShares MSCI All Peru Capped	EPU
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 India Nifty 50	INDY
iShares International Index Funds
iShares MSCI ACWI ex US	ACWX
iShares MSCI EAFE	EFA
iShares MSCI EAFE Growth	EFG
iShares MSCI EAFE Value	EFV
iShares MSCI EAFE Small Cap	SCZ
iShares FTSE Developed Small Cap ex-North America	IFSM
iShares MSCI Emerging Markets	EEM
iShares MSCI Emerging Markets Eastern Europe	ESR
iShares MSCI BRIC	BKF
iShares MSCI EMU	EZU
iShares MSCI All Country Asia ex Japan	AAXJ
iShares MSCI Pacific ex-Japan	EPP
iShares S&P Asia 50	AIA
iShares S&P Europe 350	IEV
iShares S&P Latin America 40	ILF
iShares International/Global Real Estate Index Funds
iShares S&P Developed ex-U.S. Property	WPS
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S	IFGL
iShares FTSE EPRA/NAREIT Developed Asia	IFAS
iShares FTSE EPRA/NAREIT Developed Europe	IFEU
iShares FTSE EPRA/NAREIT North America	IFNA

iShares Target Date Index Funds	Trading Symbol
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 Global Index Funds
iShares MSCI ACWI	ACWI
iShares S&P Global 100	IOO
iShares MSCI Kokusai	TOK
iShares International/Global Sector Index Funds
iShares MSCI ACWI ex US Financials Sector	AXFN
iShares MSCI Emerging Markets Financials Sector	EMFN
iShares MSCI Emerging Markets Materials Sector	EMMT
iShares MSCI Europe Financials Sector	EUFN
iShares MSCI Far East Financials Sector	FEFN
iShares S&P Global Consumer Discretionary Sector	RXI
iShares S&P Global Consumer Staples Sector	KXI
iShares S&P Global Energy Sector	IXC
iShares S&P Global Financials Sector	IXG
iShares S&P Global Healthcare Sector	IXJ
iShares S&P Global Industrials Sector	EXI
iShares S&P Global Materials Sector	MXI
iShares S&P Global Technology Sector	IXN
iShares S&P Global Telecommunications Sector	IXP
iShares S&P Global Utilities Sector	JXI
iShares International/Global Theme Based and Specialty Index Funds
iShares S&P Global Clean Energy	ICLN
iShares S&P Global Infrastructure	IGF
iShares S&P Emerging Markets Infrastructure	EMIF
iShares S&P Global Nuclear Energy	NUCL
iShares S&P Global Timber & Forestry	WOOD
iShares Dow Jones International Select Dividend	IDV
iShares U.S. Multisector Bond Funds
iShares Barclays Aggregate	AGG
iShares Barclays Government/Credit	GBF
iShares Barclays Intermediate Government/Credit	GVI
iShares 10+ Year Government/Credit	GLJ
iShares U.S. Government Bond Funds
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 U.S. Credit Bond Funds
iShares Barclays Credit	CFT
iShares Barclays 1-3 Year Credit	CSJ
iShares Barclays Intermediate Credit	CIU
iShares iBoxx $ Investment Grade Corporate	LQD
iShares 10+ Year Credit	CLY
iShares iBoxx $ High Yield Corporate	HYG

iSHARES FAMILY OF FUNDS 61

The iShares^® Family of Funds (Continued)

iShares AMT-Free Municipal Bond Funds	Trading Symbol
iShares S&P National AMT-Free Municipal	MUB
iShares S&P Short Term National AMT-Free Municipal	SUB
iShares S&P California AMT-Free Municipal	CMF
iShares S&P New York AMT-Free Municipal	NYF
iShares 2012 S&P AMT-Free Municipal Series	MUAA
iShares 2013 S&P AMT-Free Municipal Series	MUAB
iShares 2014 S&P AMT-Free Municipal Series	MUAC
iShares 2015 S&P AMT-Free Municipal Series	MUAD
iShares 2016 S&P AMT-Free Municipal Series	MUAE
iShares 2017 S&P AMT-Free Municipal Series	MUAF

iShares U.S. Securitized Bond Funds	Trading Symbol
iShares Barclays MBS	MBB
iShares International Bond Funds
iShares JPMorgan USD Emerging Markets	EMB
iShares S&P/Citigroup International Treasury	IGOV
iShares S&P/Citigroup 1-3 Year International Treasury	ISHG

The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”). _iShares^® is a registered trademark of BlackRock Institutional Trust Company, N.A. The 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., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, 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, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/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.

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 2010 Semi-Annual Report.

iS-2350-0310

62 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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.

Once you have enrolled, you will no longer receive shareholder reports and prospectuses 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 and is available to be viewed or downloaded.

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 notifications sent.

Your information and e-mail 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.

For more information:

WWW.iSHARES.COM

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

This accompanied report is by intended the current for the prospectus. Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by SEI Investments Distribution Co. (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 BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the company listed above.

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 ending 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.

©2010 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners.

iS-SAR-84-0210

2010 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES® MSCI SERIES

FEBRUARY 28, 2010

Would you prefer to receive materials like this electronically?

See inside back cover for details.

iShares MSCI Australia Index Fund | EWA | NYSE Arca

iShares MSCI Hong Kong Index Fund | EWH | NYSE Arca

iShares MSCI Japan Small Cap Index Fund | SCJ | NYSE Arca

iShares MSCI Malaysia Index Fund | EWM | NYSE Arca

iShares MSCI Pacific ex-Japan Index Fund | EPP | NYSE Arca

iShares MSCI Singapore Index Fund | EWS | NYSE Arca

iShares MSCI South Korea Index Fund | EWY | NYSE Arca

iShares MSCI Taiwan Index Fund | EWT | NYSE Arca

iShares MSCI Thailand Investable Market Index Fund | THD | NYSE Arca

iShares®

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	36
iShares MSCI Thailand Investable Market Index Fund	39
Financial Statements	42
Financial Highlights	53
Notes to Financial Statements	62
Shareholder Meeting Results	70
iShares Family of Funds	72

Fund Performance Overview

iSHARES^® MSCI AUSTRALIA INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 12.24%, while the total return for the Index was 12.61%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
101.47%	104.06%	103.00%	9.36%	9.31%	8.96%	12.27%	12.12%	11.91%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
101.47%	104.06%	103.00%	56.45%	56.05%	53.61%	218.13%	214.07%	208.06%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	44.74	%
Basic Materials	23.31
Consumer Non-Cyclical	10.95
Industrial	9.25
Energy	5.67
Consumer Cyclical	2.12
Communications	1.78
Utilities	0.83
Technology	0.56
Short-Term and Other Net Assets	0.79
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
BHP Billiton Ltd.	14.89	%
Commonwealth Bank of Australia	8.93
Westpac Banking Corp.	8.30
Australia and New Zealand Banking Group Ltd.	6.26
National Australia Bank Ltd.	5.75
Woolworths Ltd.	3.59
Wesfarmers Ltd.	3.38
Rio Tinto Ltd.	3.32
Westfield Group	2.69
Woodside Petroleum Ltd.	2.55
TOTAL	59.66	%

FUND PERFORMANCE OVERVIEWS 1

Fund Performance Overview

iSHARES^® MSCI HONG KONG INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 8.54%, while the total return for the Index was 8.81%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
61.50%	64.85%	62.51%	8.24%	8.33%	8.84%	3.92%	3.97%	4.17%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
61.50%	64.85%	62.51%	48.58%	49.22%	52.77%	46.85%	47.63%	50.53%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	52.79	%
Diversified	14.16
Utilities	13.07
Consumer Cyclical	12.74
Industrial	3.83
Communications	1.84
Technology	0.82
Basic Materials	0.60
Short-Term and Other Net Assets	0.15
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Sun Hung Kai Properties Ltd.	8.41	%
Cheung Kong (Holdings) Ltd.	7.39
Hong Kong Exchanges and Clearing Ltd.	7.24
Hutchison Whampoa Ltd.	6.59
CLP Holdings Ltd.	5.98
Li & Fung Ltd.	4.83
Hang Seng Bank Ltd.	4.81
Swire Pacific Ltd. Class A	3.86
Hong Kong and China Gas Co. Ltd. (The)	3.70
Esprit Holdings Ltd.	3.52
TOTAL	56.33	%

2 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

Performance as of February 28, 2010

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, which consists of stocks traded primarily on the Tokyo Stock Exchange. MSCI defines the small-cap universe as all listed securities that have a market capitalization in the range of $202 - $1,723 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, 2010, the total return for the Fund was (5.59)%, while the total return for the Index was (5.48)%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/10			Inception to 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
32.10%	36.43%	32.93%	(5.79)%	(5.85)%	(5.53)%	(12.27)%	(12.38)%	(11.75)%

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

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Industrial	26.56	%
Consumer Cyclical	24.40
Financial	17.98
Consumer Non-Cyclical	13.45
Basic Materials	10.04
Communications	4.12
Technology	2.28
Utilities	0.75
Energy	0.08
Short-Term and Other Net Assets	0.34
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Ebara Corp.	0.58	%
Sotetsu Holdings Inc.	0.53
Fujikura Ltd.	0.51
Miraca Holdings Inc.	0.51
Hamamatsu Photonics K.K.	0.47
Rengo Co. Ltd.	0.46
Nippon Residential Investment Corp.	0.46
Nippon Paint Co. Ltd.	0.45
Yamatake Corp.	0.45
Fuji Oil Co. Ltd.	0.45
TOTAL	4.87	%

FUND PERFORMANCE OVERVIEWS 3

Fund Performance Overview

iSHARES^® MSCI MALAYSIA INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 10.67%, while the total return for the Index was 11.04%.

Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
56.48%	56.86%	57.37%	12.10%	11.80%	12.68%	6.23%	6.53%	7.01%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
56.48%	56.86%	57.37%	77.06%	74.70%	81.68%	83.00%	88.16%	96.81%

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

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	31.00	%
Consumer Non-Cyclical	16.54
Consumer Cyclical	12.11
Communications	11.08
Industrial	10.10
Diversified	8.58
Utilities	8.39
Basic Materials	0.97
Energy	0.74
Short-Term and Other Net Assets	0.49
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
CIMB Group Holdings Bhd	8.68	%
Sime Darby Bhd	8.58
Malayan Banking Bhd	8.35
IOI Corp. Bhd	6.69
Tenaga Nasional Bhd	5.25
Genting Bhd	4.74
Public Bank Bhd Foreign	3.99
MISC Bhd Foreign	3.52
Maxis Communications Bhd	3.50
AMMB Holdings Bhd	3.25
TOTAL	56.55	%

4 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 11.10%, while the total return for the Index was 11.43%.

Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
91.55%	94.49%	92.63%	9.26%	9.20%	9.16%	14.71%	14.67%	14.63%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
91.55%	94.49%	92.63%	55.68%	55.31%	54.99%	214.54%	213.51%	212.67%

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.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	46.76	%
Basic Materials	16.03
Consumer Non-Cyclical	8.58
Industrial	8.54
Consumer Cyclical	4.54
Energy	3.85
Communications	3.67
Diversified	3.67
Utilities	3.19
Technology	0.54
Short-Term and Other Net Assets	0.63
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
BHP Billiton Ltd. (Australia)	10.16	%
Commonwealth Bank of Australia (Australia)	6.08
Westpac Banking Corp. (Australia)	5.67
Australia and New Zealand Banking Group Ltd. (Australia)	4.27
National Australia Bank Ltd. (Australia)	3.93
Woolworths Ltd. (Australia)	2.45
Wesfarmers Ltd. (Australia)	2.31
Rio Tinto Ltd. (Australia)	2.26
Westfield Group (Australia)	1.84
Woodside Petroleum Ltd. (Australia)	1.73
TOTAL	40.70	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI SINGAPORE INDEX FUND

Performance as of February 28, 2010

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 Singapore 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, 2010, the total return for the Fund was 9.86%, while the total return for the Index was 10.01%.

Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
95.62%	97.47%	96.43%	12.66%	12.54%	12.76%	7.40%	7.58%	6.94%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
95.62%	97.47%	96.43%	81.50%	80.56%	82.26%	104.10%	107.73%	95.68%

“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.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	52.08	%
Communications	15.59
Consumer Non-Cyclical	9.52
Industrial	9.40
Diversified	7.76
Consumer Cyclical	5.42
Short-Term and Other Net Assets	0.23
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
United Overseas Bank Ltd.	12.04	%
Singapore Telecommunications Ltd.	12.02
DBS Group Holdings Ltd.	11.76
Oversea-Chinese Banking Corp. Ltd.	10.97
Keppel Corp. Ltd.	4.89
Wilmar International Ltd.	4.20
CapitaLand Ltd.	4.15
Singapore Airlines Ltd.	3.85
Singapore Exchange Ltd.	3.49
Singapore Press Holdings Ltd.	2.88
TOTAL	70.25	%

6 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SOUTH KOREA INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 8.63%, while the total return for the Index was 8.81%.

Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
105.07%	111.77%	106.41%	6.85%	6.68%	7.50%	9.27%	9.29%	9.82%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
105.07%	111.77%	106.41%	39.27%	38.16%	43.55%	138.71%	138.98%	150.67%

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.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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. 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Technology	23.04	%
Industrial	16.33
Financial	15.98
Consumer Cyclical	14.77
Basic Materials	12.98
Communications	5.37
Consumer Non-Cyclical	4.06
Energy	2.41
Utilities	2.37
Diversified	1.69
Short-Term and Other Net Assets	1.00
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Samsung Electronics Co. Ltd.	18.04	%
POSCO	7.63
Hyundai Motor Co. Ltd.	3.90
Shinhan Financial Group Co. Ltd.	3.68
KB Financial Group Inc.	3.47
LG Electronics Inc.	2.23
Samsung Electronics Co. Ltd. Preferred	2.22
LG Chem Ltd.	2.20
Hynix Semiconductor Inc.	2.17
Korea Electric Power Corp.	2.10
TOTAL	47.64	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI TAIWAN INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 9.30%, while the total return for the Index was 9.75%.

Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
70.82%	75.22%	72.62%	2.23%	1.70%	3.09%	(3.02)%	(3.02)%	(2.17)%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
70.82%	75.22%	72.62%	11.64%	8.81%	16.43%	(25.73)%	(25.72)%	(19.13)%

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.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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. 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Technology	38.04	%
Industrial	24.53
Financial	14.61
Basic Materials	11.94
Communications	4.55
Consumer Cyclical	3.90
Energy	1.30
Consumer Non-Cyclical	1.09
Short-Term and Other Net Assets	0.04
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd.	13.49	%
Hon Hai Precision Industry Co. Ltd.	9.26
MediaTek Inc.	4.34
Nan Ya Plastics Corp.	3.03
China Steel Corp.	2.94
Cathay Financial Holding Co. Ltd.	2.81
Chunghwa Telecom Co. Ltd.	2.68
Formosa Plastics Corp.	2.57
AU Optronics Corp.	2.28
Acer Inc.	2.17
TOTAL	45.57	%

8 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 14.36%, while the total return for the Index was 14.00%.

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/10			Inception to 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
97.21%	98.18%	97.26%	(6.14)%	(6.07)%	(6.11)%	(11.53)%	(11.39)%	(11.46)%

Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Financial	35.12	%
Energy	27.77
Consumer Cyclical	8.62
Communications	7.75
Industrial	7.33
Basic Materials	5.74
Consumer Non-Cyclical	5.15
Utilities	1.86
Technology	0.33
Short-Term and Other Net Assets	0.33
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
PTT PCL NVDR	11.29	%
Bangkok Bank PCL NVDR	9.31
PTT Exploration & Production PCL NVDR	9.08
Kasikornbank PCL NVDR	8.32
Siam Commercial Bank PCL NVDR	7.43
Banpu PCL NVDR	4.91
Advanced Info Service PCL NVDR	4.46
Siam Cement PCL NVDR	4.01
CP All PCL NVDR	2.85
IRPC PCL NVDR	2.47
TOTAL	64.13	%

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, 2009 to February 28, 2010.

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 (9/1/09)	Ending Account Value (2/28/10)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/09 to  2/28/10)
Australia
Actual	$1,000.00	$1,122.40	0.54	%	$2.84
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Hong Kong
Actual	1,000.00	1,085.40	0.54		2.79
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Japan Small Cap
Actual	1,000.00	944.10	0.54		2.60
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
Malaysia
Actual	1,000.00	1,106.70	0.54		2.82
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71

10 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (9/1/09)	Ending Account Value (2/28/10)	Annualized Expense Ratio		Expenses Paid During Perioda (9/1/09 to  2/28/10)
Pacific ex-Japan
Actual	$1,000.00	$1,111.00	0.50	%	$2.62
Hypothetical (5% return before expenses)	1,000.00	1,022.30	0.50		2.51
Singapore
Actual	1,000.00	1,098.60	0.54		2.81
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71
South Korea
Actual	1,000.00	1,086.30	0.61		3.16
Hypothetical (5% return before expenses)	1,000.00	1,021.80	0.61		3.06
Taiwan
Actual	1,000.00	1,093.00	0.63		3.27
Hypothetical (5% return before expenses)	1,000.00	1,021.70	0.63		3.16
Thailand Investable Market
Actual	1,000.00	1,143.60	0.63		3.35
Hypothetical (5% return before expenses)	1,000.00	1,021.70	0.63		3.16

^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, 2010

Security	Shares	Value
COMMON STOCKS – 99.21%
AIRLINES – 0.32%
Qantas Airways Ltd.	3,010,566	$	7,117,339
			7,117,339
APPAREL – 0.22%
Billabong International Ltd.	550,602		5,014,462
			5,014,462
BANKS – 30.77%
Australia and New Zealand Banking Group Ltd.	6,794,814		140,801,252
Bendigo and Adelaide Bank Ltd.	953,160		8,211,197
Commonwealth Bank of Australia	4,161,456		200,937,401
National Australia Bank Ltd.	5,684,484		129,501,186
Suncorp-Metway Ltd.	3,447,600		26,365,762
Westpac Banking Corp.	7,981,194		186,755,271
			692,572,069
BEVERAGES – 1.80%
Coca-Cola Amatil Ltd.	1,522,521		15,297,545
Foster’s Group Ltd.	5,232,747		25,257,135
			40,554,680
BIOTECHNOLOGY – 0.54%
Sonic Healthcare Ltd.	1,002,339		12,162,407
			12,162,407
BUILDING MATERIALS – 0.94%
Boral Ltd.	1,607,697		7,731,150
CSR Ltd.	3,907,295		5,668,352
James Hardie Industries SEa	1,174,212		7,823,211
			21,222,713
CHEMICALS – 0.75%
Incitec Pivot Ltd.	4,368,819		12,675,779
Nufarm Ltd.b	471,360		4,107,061
			16,782,840
COMMERCIAL SERVICES – 1.99%
Brambles Ltd.	3,829,878		23,801,811
Intoll Group	6,125,574		6,171,133
Macquarie Atlas Roads Groupa	1		1
Transurban Group	3,145,428		14,759,669
			44,732,614

Security	Shares	Value
COMPUTERS – 0.56%
Computershare Ltd.	1,205,646	$	12,577,992
			12,577,992
DIVERSIFIED FINANCIAL SERVICES – 2.30%
ASX Ltd.	466,947		15,245,787
Macquarie Group Ltd.	901,953		36,556,453
			51,802,240
ELECTRIC – 0.70%
AGL Energy Ltd.	1,220,349		15,703,860
			15,703,860
ELECTRIC – DISTRIBUTION – 0.13%
SP AusNet	3,583,983		3,032,937
			3,032,937
ENGINEERING & CONSTRUCTION – 1.05%
Leighton Holdings Ltd.b	403,572		13,624,732
WorleyParsons Ltd.	449,709		9,898,720
			23,523,452
ENTERTAINMENT – 0.94%
Aristocrat Leisure Ltd.	1,074,418		4,069,858
Tabcorp Holdings Ltd.	1,649,778		10,001,837
Tatts Group Ltd.	3,267,108		7,021,668
			21,093,363
FOOD – 4.15%
Goodman Fielder Ltd.	3,557,619		4,794,701
Metcash Ltd.	2,090,868		7,714,174
Woolworths Ltd.	3,361,410		80,792,229
			93,301,104
HEALTH CARE – PRODUCTS – 0.38%
Cochlear Ltd.	152,100		8,642,242
			8,642,242
INSURANCE – 5.28%
AMP Ltd.	5,557,227		29,560,391
AXA Asia Pacific Holdings Ltd.	2,804,217		16,197,087
Insurance Australia Group Ltd.	5,634,798		19,931,548
QBE Insurance Group Ltd.	2,778,360		53,243,657
			118,932,683
IRON & STEEL – 0.97%
BlueScope Steel Ltd.	4,955,418		10,738,936
OneSteel Ltd.	3,615,924		11,171,307
			21,910,243

12 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2010

Security	Shares	Value
LODGING – 0.42%
Crown Ltd.	1,329,354	$	9,523,492
			9,523,492
MANUFACTURING – 4.86%
Orica Ltd.	975,975		21,858,380
Wesfarmers Ltd.	2,726,646		76,010,479
Wesfarmers Ltd. Partially Protected	411,684		11,505,973
			109,374,832
MEDIA – 0.38%
Fairfax Media Ltd.b	5,741,775		8,483,903
			8,483,903
METAL FABRICATE & HARDWARE – 0.34%
Sims Metal Management Ltd.	438,048		7,621,845
			7,621,845
MINING – 21.59%
Alumina Ltd.	6,632,067		8,938,219
BHP Billiton Ltd.	9,103,692		335,061,839
Energy Resources of Australia Ltd.	179,985		2,960,814
Fortescue Metals Group Ltd.a	3,355,326		13,971,829
Newcrest Mining Ltd.	1,310,472		36,778,357
OZ Minerals Ltd.a	8,467,914		7,886,338
Paladin Energy Ltd.a	1,750,164		5,657,851
Rio Tinto Ltd.	1,181,817		74,611,357
			485,866,604
OIL & GAS – 5.67%
Arrow Energy Ltd.a,b	1,580,319		4,698,383
Caltex Australia Ltd.a	365,040		3,432,380
Origin Energy Ltd.	2,385,435		35,908,800
Santos Ltd.	2,257,671		26,201,807
Woodside Petroleum Ltd.	1,475,877		57,319,867
			127,561,237
PACKAGING & CONTAINERS – 0.78%
Amcor Ltd.	3,314,766		17,602,452
			17,602,452
PHARMACEUTICALS – 2.09%
CSL Ltd.	1,528,605		47,075,294
			47,075,294

Security	Shares	Value
REAL ESTATE – 6.03%
BGP Holdings PLCc	18,888,372	$	2,578
Dexus Property Group	12,925,458		9,549,167
Goodman Group	16,471,416		8,850,092
GPT Group	25,164,945		12,957,745
Lend Lease Group	1,183,898		10,251,947
Mirvac Group	7,312,968		10,019,607
Stockland Corp. Ltd.	6,460,194		23,487,521
Westfield Group	5,633,784		60,641,544
			135,760,201
REAL ESTATE INVESTMENT TRUSTS – 0.36%
CFS Retail Property  Trustb	4,721,691		8,033,721
			8,033,721
RETAIL – 0.22%
Harvey Norman Holdings Ltd.	1,440,387		4,940,189
			4,940,189
TELECOMMUNICATIONS – 1.40%
Telstra Corp. Ltd.	11,808,537		31,406,398
			31,406,398
TRANSPORTATION – 1.28%
Asciano Groupa	7,538,076		12,150,625
MAp Group	2,034,084		5,683,149
Toll Holdings Ltd.	1,804,413		10,987,792
			28,821,566
TOTAL COMMON STOCKS (Cost: $2,124,743,398)			2,232,750,974

SCHEDULES OF INVESTMENTS 13

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2010

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.76%
MONEY MARKET FUNDS – 0.76%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%d,e,f	14,529,549	$	14,529,549
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%d,e,f	2,335,054		2,335,054
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%d,e	237,918		237,918
			17,102,521
TOTAL SHORT-TERM INVESTMENTS
(Cost: $17,102,521)			17,102,521
TOTAL INVESTMENTS IN SECURITIES – 99.97%
(Cost: $2,141,845,919)			2,249,853,495
Other Assets, Less Liabilities – 0.03%			646,181
NET ASSETS – 100.00%		$	2,250,499,676

^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 in accordance with management’s fair valuation policy. 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.

14 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.85%
AIRLINES – 0.97%
Cathay Pacific Airways Ltd.a	8,748,000	$	16,248,934
			16,248,934
APPAREL – 0.90%
Yue Yuen Industrial (Holdings) Ltd.b	5,103,000		15,216,942
			15,216,942
BANKS – 11.32%
Bank of East Asia Ltd.b	10,497,710		38,335,265
BOC Hong Kong (Holdings) Ltd.	26,244,000		59,158,740
Hang Seng Bank Ltd.	5,540,400		81,000,522
Wing Hang Bank Ltd.	1,458,000		12,216,749
			190,711,276
DISTRIBUTION & WHOLESALE – 8.35%
Esprit Holdings Ltd.b	8,310,632		59,251,931
Li & Fung Ltd.b	17,497,000		81,362,002
			140,613,933
DIVERSIFIED FINANCIAL SERVICES – 7.24%
Hong Kong Exchanges and Clearing Ltd.b	7,290,000		121,979,687
			121,979,687
ELECTRIC – 9.37%
CLP Holdings Ltd.	14,580,200		100,759,045
Hongkong Electric Holdings Ltd.	10,206,000		57,121,050
			157,880,095
ENGINEERING & CONSTRUCTION – 1.10%
Cheung Kong Infrastructure Holdings Ltd.	2,916,000		10,967,842
Hong Kong Aircraft Engineering Co. Ltd.b	583,200		7,470,904
			18,438,746
GAS – 3.70%
Hong Kong and China Gas Co. Ltd. (The)	27,702,712		62,375,573
			62,375,573
HOLDING COMPANIES – DIVERSIFIED – 14.16%
Hutchison Whampoa Ltd.	15,475,800		111,034,806

Security	Shares	Value
NWS Holdings Ltd.	5,832,000	$	9,901,107
Swire Pacific Ltd. Class Ab	5,832,000		65,093,394
Wharf (Holdings) Ltd. (The)b	10,206,500		52,588,122
			238,617,429
LODGING – 2.09%
Sands China Ltd.a	14,580,000		20,658,607
Shangri-La Asia Ltd.	8,748,000		14,536,147
			35,194,754
MEDIA – 0.50%
Television Broadcasts Ltd.	1,858,000		8,484,237
			8,484,237
MINING – 0.60%
Mongolia Energy Corp. Ltd.a	21,870,000		10,169,669
			10,169,669
REAL ESTATE – 31.84%
Cheung Kong (Holdings) Ltd.	10,206,000		124,496,281
Chinese Estates Holdings Ltd.	5,832,000		9,360,227
Hang Lung Group Ltd.	5,832,000		29,335,223
Hang Lung Properties Ltd.	14,580,000		55,684,337
Henderson Land Development Co. Ltd.b	7,750,332		52,362,049
Hopewell Holdings Ltd.	4,374,000		12,817,727
Hysan Development Co. Ltd.	4,374,000		11,634,552
Kerry Properties Ltd.	5,103,000		24,287,949
New World Development Co. Ltd.	17,496,800		32,093,675
Sino Land Co. Ltd.b	11,664,000		22,115,978
Sun Hung Kai Properties Ltd.	10,206,000		141,718,047
Wheelock and Co. Ltd.	7,290,000		20,423,850
			536,329,895
REAL ESTATE INVESTMENT TRUSTS – 2.39%
Link REIT (The)b	16,038,000		40,325,602
			40,325,602
RETAIL – 0.43%
Lifestyle International Holdings Ltd.	4,374,000		7,223,000
			7,223,000
SEMICONDUCTORS – 0.82%
ASM Pacific Technology Ltd.	1,458,000		13,756,754
			13,756,754

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2010

Security	Shares	Value
TELECOMMUNICATIONS – 1.34%
Foxconn International Holdings Ltd.a,b	14,580,000	$	14,949,320
PCCW Ltd.	27,702,000		7,671,856
			22,621,176
TRANSPORTATION – 2.73%
MTR Corp. Ltd.	10,206,083		35,364,068
Orient Overseas International Ltd.	1,458,200		10,659,425
			46,023,493
TOTAL COMMON STOCKS (Cost: $1,957,807,034)			1,682,211,195
SHORT-TERM INVESTMENTS – 3.26%
MONEY MARKET FUNDS – 3.26%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	47,260,203		47,260,203
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	7,595,221		7,595,221
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	9,209		9,209
			54,864,633
TOTAL SHORT-TERM INVESTMENTS
(Cost: $54,864,633)			54,864,633

	Value
TOTAL INVESTMENTS IN SECURITIES – 103.11%
(Cost: $2,012,671,667)	$	1,737,075,828
Other Assets, Less Liabilities – (3.11)%		(52,434,920)
NET ASSETS – 100.00%	$	1,684,640,908

^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.

16 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.66%
ADVERTISING – 0.33%
Asatsu-DK Inc.	2,800	$	54,415
Moshi Moshi Hotline Inc.	2,100		41,969
			96,384
AEROSPACE & DEFENSE – 0.17%
Japan Aviation Electronics Industry Ltd.	7,000		49,311
			49,311
AGRICULTURE – 0.41%
Hokuto Corp.	2,100		44,309
Sakata Seed Corp.	5,600		75,557
			119,866
APPAREL – 1.27%
Descente Ltd.	7,000		38,125
Gunze Ltd.	14,000		50,256
Japan Wool Textile Co. Ltd. (The)	7,000		46,081
Katakura Industries Co. Ltd.	2,800		25,868
Onward Holdings Co. Ltd.	7,000		47,657
Sanyo Shokai Ltd.	7,000		26,231
Tokyo Style Co. Ltd.	7,000		48,759
Wacoal Holdings Corp.	7,000		85,703
			368,680
AUTO MANUFACTURERS – 0.45%
Kanto Auto Works Ltd.	4,200		30,437
Nissan Shatai Co. Ltd.	7,000		54,116
ShinMaywa Industries Ltd.	14,000		46,475
			131,028
AUTO PARTS & EQUIPMENT – 3.67%
Aisan Industry Co. Ltd.	2,100		17,298
Akebono Brake Industry Co. Ltd.a	5,600		27,475
Calsonic Kansei Corp.a	14,000		35,605
Exedy Corp.	2,800		62,576
FCC Co. Ltd.	3,500		69,909
Futaba Industrial Co. Ltd.a	4,900		36,006
Kayaba Industry Co. Ltd.a	14,000		46,160
Keihin Corp.	3,500		61,166
Musashi Seimitsu Industry Co. Ltd.	2,100		39,961
Nifco Inc.	3,500		78,929
Nissin Kogyo Co. Ltd.	3,500		52,580
Press Kogyo Co. Ltd.	7,000		13,391

Security	Shares	Value
Riken Corp.	7,000	$	24,183
Sanden Corp.a	14,000		43,009
Showa Corp.	4,900		29,610
T.RAD Co. Ltd.	7,000		17,330
Takata Corp.	2,800		62,481
Tokai Rika Co. Ltd.	4,200		75,573
Topre Corp.	4,900		38,267
Toyo Tire & Rubber Co. Ltd.a	14,000		31,351
TS Tech Co. Ltd.	4,200		71,461
Unipres Corp.b	2,800		38,346
Yokohama Rubber Co. Ltd. (The)	21,000		90,272
			1,062,939
BANKS – 9.64%
Aichi Bank Ltd. (The)	700		51,595
Akita Bank Ltd. (The)	21,000		83,891
Aomori Bank Ltd. (The)	14,000		34,502
Awa Bank Ltd. (The)	21,000		116,739
Bank of Iwate Ltd. (The)	1,400		79,244
Bank of Nagoya Ltd. (The)	14,000		53,407
Bank of Okinawa Ltd. (The)	2,100		82,355
Bank of Saga Ltd. (The)	14,000		39,071
Bank of the Ryukyus Ltd.	3,500		39,071
Chiba Kogyo Bank Ltd. (The)a	3,500		26,270
Chukyo Bank Ltd. (The)	14,000		42,064
Daishi Bank Ltd. (The)	28,000		95,156
Ehime Bank Ltd. (The)	14,000		39,228
Eighteenth Bank Ltd. (The)	14,000		41,276
FIDEA Holdings Co. Ltd.a	8,400		13,706
Fukui Bank Ltd. (The)	28,000		92,635
Higashi-Nippon Bank Ltd. (The)	14,000		27,255
Higo Bank Ltd. (The)	14,000		75,305
Hokkoku Bank Ltd. (The)	21,000		75,857
Hokuetsu Bank Ltd. (The)	21,000		34,738
Hyakugo Bank Ltd. (The)	21,000		95,943
Hyakujushi Bank Ltd. (The)	21,000		78,692
Juroku Bank Ltd. (The)	28,000		111,540
Kagoshima Bank Ltd. (The)	14,000		97,676
Kansai Urban Banking Corp.	21,000		34,974
Kanto Tsukuba Bank Ltd. (The)a	4,900		15,053
Keiyo Bank Ltd. (The)	21,000		99,724
Kiyo Holdings Inc.	56,000		72,469
Michinoku Bank Ltd. (The)	14,000		28,043

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2010

Security	Shares	Value
Mie Bank Ltd. (The)	14,000	$	37,022
Minato Bank Ltd. (The)a	14,000		18,432
Miyazaki Bank Ltd. (The)	14,000		43,639
Musashino Bank Ltd. (The)	2,800		79,086
Nanto Bank Ltd. (The)	21,000		114,376
Ogaki Kyoritsu Bank Ltd. (The)	21,000		73,494
Oita Bank Ltd. (The)	14,000		50,729
San-in Godo Bank Ltd. (The)	14,000		110,910
Shiga Bank Ltd. (The)	21,000		128,791
Shikoku Bank Ltd. (The)	14,000		45,057
Tochigi Bank Ltd. (The)	7,000		29,382
Toho Bank Ltd. (The)	21,000		69,476
Tokushima Bank Ltd. (The)	7,000		23,553
Tokyo Tomin Bank Ltd. (The)	2,800		35,762
Yachiyo Bank Ltd. (The)	1,400		32,296
Yamagata Bank Ltd. (The)	14,000		61,599
Yamanashi Chuo Bank Ltd. (The)	14,000		59,236
			2,790,319
BEVERAGES – 0.66%
Kagome Co. Ltd.b	6,300		113,005
Takara Holdings Inc.	14,000		76,723
			189,728
BIOTECHNOLOGY – 0.18%
AnGes MG Inc.a	14		22,261
OncoTherapy Science Inc.a	7		14,423
Takara Bio Inc.a	7		14,856
			51,540
BUILDING MATERIALS – 1.20%
Central Glass Co. Ltd.	14,000		64,277
Chofu Seisakusho Co. Ltd.	2,100		50,288
Nichias Corp.a	7,000		30,327
Sanwa Holdings Corp.	21,000		61,678
Sumitomo Osaka Cement Co. Ltd.	35,000		59,472
Takara Standard Co. Ltd.	14,000		81,764
			347,806
CHEMICALS – 6.24%
Adeka Corp.	8,400		78,173
Aica Kogyo Co. Ltd.	7,000		73,966
C. Uyemura & Co. Ltd.	700		24,970
Chugoku Marine Paints Ltd.	7,000		45,215

Security	Shares	Value
Dainichiseika Color & Chemicals Manufacturing Co. Ltd.	7,000	$	25,443
DIC Corp.	49,000		102,009
Earth Chemical Co. Ltd.	1,400		41,386
Fujimi Inc.	2,100		35,518
Ishihara Sangyo Kaisha Ltd.a	35,000		27,964
Lintec Corp.b	4,200		79,260
Nihon Nohyaku Co. Ltd.	7,000		38,440
Nihon Parkerizing Co. Ltd.	7,000		89,327
Nippon Carbon Co. Ltd.	14,000		42,852
Nippon Kayaku Co. Ltd.	14,000		115,163
Nippon Paint Co. Ltd.	21,000		131,627
Nippon Shokubai Co. Ltd.	7,000		60,654
Nippon Soda Co. Ltd.	14,000		53,880
Nippon Synthetic Chemical Industry Co. Ltd. (The)	7,000		45,215
NOF Corp.	14,000		54,825
Sakai Chemical Industry Co. Ltd.	7,000		30,563
Stella Chemifa Corp.	700		28,791
Sumitomo Bakelite Co. Ltd.	21,000		110,595
Taiyo Ink Manufacturing Co. Ltd.	1,400		36,912
Takasago International Corp.	7,000		36,077
Toagosei Co. Ltd.	21,000		82,001
Tokai Carbon Co. Ltd.	14,000		75,778
Tokyo Ohka Kogyo Co. Ltd.	4,200		74,817
Toyo Ink Manufacturing Co. Ltd.	21,000		90,508
Zeon Corp.	14,000		73,257
			1,805,186
COMMERCIAL SERVICES – 1.80%
Aeon Delight Co. Ltd.	1,400		19,157
Daiseki Co. Ltd.	2,860		56,160
Meitec Corp.	3,500		64,041
Nichii Gakkan Co.	4,200		39,275
Nishio Rent All Co. Ltd.	2,100		15,266
PARK24 Co. Ltd.	9,100		94,620
Pasona Group Inc.	28		19,787
Sohgo Security Services Co. Ltd.	5,600		63,773
So-net M3 Inc.	7		25,995
TKC Corp.	2,100		38,803
Toppan Forms Co. Ltd.	5,600		60,622
Zenrin Co. Ltd.	2,100		24,600
			522,099

18 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2010

Security	Shares	Value
COMPUTERS – 0.58%
CSK Holdings Corp.a	6,300	$	27,223
DTS Corp.	2,800		27,790
Ines Corp.	2,100		14,793
Net One Systems Co. Ltd.	42		44,096
NS Solutions Corp.	2,100		33,131
Vic Tokai Corp.	2,100		22,024
			169,057
COSMETICS & PERSONAL CARE – 1.35%
Aderans Holdings Co. Ltd.a	3,500		41,632
Fancl Corp.	4,200		85,073
Kose Corp.	2,800		60,811
Lion Corp.	14,000		69,634
Mandom Corp.b	2,800		78,456
Pigeon Corp.	1,400		54,588
			390,194
DISTRIBUTION & WHOLESALE – 2.37%
Doshisha Co. Ltd.	2,100		50,335
F&A Aqua Holdings Inc.	2,800		28,673
Hanwa Co. Ltd.	21,000		83,419
Inaba Denki Sangyo Co. Ltd.	2,100		48,657
Itochu Enex Co. Ltd.	8,400		41,024
Iwatani Corp.	21,000		60,260
Japan Pulp & Paper Co. Ltd.	14,000		49,468
Japan Wind Development Co. Ltd.	7		17,503
JFE Shoji Holdings Inc.	14,000		48,366
Kanematsu Corp.a	42,000		32,611
Matsuda Sangyo Co. Ltd.	1,460		25,137
Nagase & Co. Ltd.	7,000		81,213
Nippon Gas Co. Ltd.	4,200		56,006
Ship Healthcare Holdings Inc.	28		15,849
Sumikin Bussan Corp.	7,000		15,282
Trusco Nakayama Corp.	2,100		31,595
			685,398
DIVERSIFIED FINANCIAL SERVICES – 2.84%
AIFUL Corp.b	10,150		15,305
Cedyna Financial Corp.a	10,500		18,905
Century Tokyo Leasing Corp.	4,980		69,097
Fuyo General Lease Co. Ltd.	1,400		38,976
GCA Savvian Group Corp.a	7		6,262
Hitachi Capital Corp.	3,500		48,169
IBJ Leasing Co. Ltd.	2,100		37,976

Security	Shares	Value
Ichiyoshi Securities Co. Ltd.	4,200	$	27,838
Jaccs Co. Ltd.	14,000		30,406
Japan Securities Finance Co. Ltd.	7,700		55,282
Kenedix Inc.a	98		28,243
Marusan Securities Co. Ltd.	6,300		36,369
Mizuho Investors Securities Co. Ltd.a	28,000		28,988
Okasan Securities Group Inc.	14,000		62,544
Orient Corp.a,b	21,000		19,141
Osaka Securities Exchange Co. Ltd.	21		114,021
Promise Co. Ltd.a	5,950		45,597
Ricoh Leasing Co. Ltd.	2,100		48,161
Takefuji Corp.	5,670		25,139
Tokai Tokyo Financial Holdings Inc.	14,000		53,879
Toyo Securities Co. Ltd.a	7,000		12,840
			823,138
ELECTRIC – 0.27%
Okinawa Electric Power Co. Inc. (The)	1,400		77,353
			77,353
ELECTRICAL COMPONENTS & EQUIPMENT – 1.61%
Fujikura Ltd.	28,000		148,405
Funai Electric Co. Ltd.	2,100		90,626
Hitachi Cable Ltd.	14,000		35,920
Nippon Signal Co. Ltd. (The)	3,500		30,957
NPC Inc.	700		16,550
Sinfonia Technology Co. Ltd.b	14,000		31,981
Takaoka Electric Manufacturing Co. Ltd.	7,000		21,505
Tokyo Rope Manufacturing Co. Ltd.	14,000		34,344
Toshiba Tec Corp.a	14,000		54,352
			464,640
ELECTRONICS – 6.18%
Alps Electric Co. Ltd.a	14,000		82,395
Anritsu Corp.a	14,000		51,831
Chiyoda Integre Co. Ltd.	2,100		26,633
CMK Corp.a	4,200		29,114
Cosel Co. Ltd.	3,500		47,499
Dainippon Screen Manufacturing Co. Ltd.a	21,000		96,180
Eizo Nanao Corp.	2,100		51,256
Fujitsu General Ltd.	7,000		28,830
Furuno Electric Co. Ltd.	2,800		12,414
Futaba Corp.	3,500		61,205

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2010

Security	Shares	Value
Hamamatsu Photonics K.K.	5,600	$	136,684
HORIBA Ltd.	2,800		75,463
Hosiden Corp.	5,600		67,554
JEOL Ltd.	7,000		25,128
Kaga Electronics Co. Ltd.b	3,500		35,486
Koa Corp.	4,200		40,032
Kuroda Electric Co. Ltd.	2,800		39,007
Macnica Inc.	2,100		35,187
Meiko Electronics Co. Ltd.	700		16,778
Micronics Japan Co. Ltd.	1,400		24,608
Nichicon Corp.	6,300		69,547
Nihon Dempa Kogyo Co. Ltd.b	1,400		29,445
Nippon Chemi-Con Corp.a	14,000		46,790
Nitto Kogyo Corp.	2,800		26,436
Ryosan Co. Ltd.	4,200		99,677
Sanshin Electronics Co. Ltd.	2,800		21,741
Sanyo Denki Co. Ltd.	7,000		23,553
Star Micronics Co. Ltd.	4,200		41,497
Taiyo Yuden Co. Ltd.	7,000		96,810
Tamura Corp.a	7,000		20,717
Tokyo Seimitsu Co. Ltd.a	3,500		49,468
Toyo Corp.	3,500		28,121
ULVAC Inc.b	2,800		68,216
Wacom Co. Ltd.	35		54,076
Yamatake Corp.	5,600		131,327
			1,790,705
ENGINEERING & CONSTRUCTION – 3.82%
Chudenko Corp.	2,800		35,510
COMSYS Holdings Corp.	11,900		114,226
Japan Airport Terminal Co. Ltd.	3,500		52,855
Kandenko Co. Ltd.	7,000		44,112
Kyowa Exeo Corp.	7,000		59,393
Maeda Corp.	14,000		43,797
Maeda Road Construction Co. Ltd.	7,000		59,393
Nippo Corp.	7,000		55,140
Nippon Road Co. Ltd. (The)	7,000		16,069
Nishimatsu Construction Co. Ltd.	28,000		34,029
Okumura Corp.	14,000		50,571
Penta-Ocean Construction Co. Ltd.a	24,500		29,500
Shinko Plantech Co. Ltd.	3,500		34,581
SHO-BOND Holdings Co. Ltd.	2,800		54,069
Taihei Kogyo Co. Ltd.	7,000		33,399

Security	Shares	Value
Taikisha Ltd.	3,500	$	59,000
Takasago Thermal Engineering Co. Ltd.b	7,000		53,171
Takuma Co. Ltd.a	7,000		16,306
Toa Corp.	14,000		15,597
Toda Corp.	21,000		74,202
Tokyu Construction Co. Ltd.a	8,820		24,614
Toshiba Plant Systems & Services Corp.	7,000		82,710
Toyo Construction Co. Ltd.	35,000		18,117
Toyo Engineering Corp.	14,000		46,948
			1,107,309
ENTERTAINMENT – 0.77%
Avex Group Holdings Inc.	3,500		32,336
Resorttrust Inc.	3,500		48,720
Shochiku Co. Ltd.	7,000		62,072
Toei Co. Ltd.	7,000		35,683
Tokyotokeiba Co. Ltd.	14,000		20,323
Yomiuri Land Co. Ltd.	7,000		23,553
			222,687
ENVIRONMENTAL CONTROL – 0.11%
Asahi Holdings Inc.	2,100		32,611
			32,611
FOOD – 4.21%
Ariake Japan Co. Ltd.	2,100		32,470
Ezaki Glico Co. Ltd.	7,000		81,528
Fuji Oil Co. Ltd.	8,400		130,918
House Foods Corp.	5,600		81,859
Itoham Foods Inc.	14,000		52,462
J-Oil Mills Inc.	7,000		21,977
Kato Sangyo Co. Ltd.	2,100		34,502
Kewpie Corp.	8,400		93,013
Maruha Nichiro Holdings Inc.	35,000		49,626
MEGMILK SNOW BRAND Co.  Ltd.a	3,500		54,982
Mitsui Sugar Co. Ltd.	7,000		26,231
Morinaga & Co. Ltd.	28,000		64,907
Morinaga Milk Industry Co. Ltd.	21,000		87,436
Nichirei Corp.	28,000		107,759
Nippon Beet Sugar Manufacturing Co. Ltd.	14,000		37,653
Nippon Flour Mills Co. Ltd.	14,000		72,154
Nippon Suisan Kaisha Ltd.	20,300		59,622

20 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2010

Security	Shares	Value
Nisshin OilliO Group Ltd. (The)	14,000	$	70,264
Prima Meat Packers Ltd.	14,000		15,124
Unicharm Petcare Corp.	1,400		45,057
			1,219,544
FOREST PRODUCTS & PAPER – 1.33%
Daio Paper Corp.	7,000		56,006
Hokuetsu Kishu Paper Co. Ltd.	10,500		51,280
Mitsubishi Paper Mills Ltd.	35,000		40,567
Rengo Co. Ltd.	21,000		133,281
Sumitomo Forestry Co. Ltd.	13,300		103,119
			384,253
GAS – 0.48%
Saibu Gas Co. Ltd.	42,000		117,684
Shizuoka Gas Co. Ltd.	3,500		21,426
			139,110
HAND & MACHINE TOOLS – 1.61%
DISCO Corp.	2,100		115,557
Hitachi Koki Co. Ltd.	4,900		51,115
Meidensha Corp.	21,000		92,871
Mori Seiki Co. Ltd.	8,400		88,948
OSG Corp.	7,700		77,290
Union Tool Co.b	1,400		39,386
			465,167
HEALTH CARE – PRODUCTS – 1.35%
Hogy Medical Co. Ltd.	1,400		71,367
Nakanishi Inc.	700		66,168
Nihon Kohden Corp.	3,500		60,575
Nipro Corp.	6,300		123,852
Paramount Bed Co. Ltd.	2,100		42,607
Topcon Corp.b	5,600		26,656
			391,225
HEALTH CARE – SERVICES – 0.06%
Message Co. Ltd.	7		16,542
			16,542
HOME BUILDERS – 0.55%
Haseko Corp.a	94,500		92,517
PanaHome Corp.	7,000		48,129
Token Corp.	840		19,037
			159,683
HOME FURNISHINGS – 1.36%
Alpine Electronics Inc.a	4,200		50,713

Security	Shares	Value
Canon Electronics Inc.	2,100	$	44,285
Daiwa Industries Ltd.	7,000		32,533
Foster Electric Co. Ltd.b	2,100		52,934
France Bed Holdings Co. Ltd.	14,000		20,323
Juki Corp.a	14,000		19,063
JVC KENWOOD Holdings Inc.a	60,200		26,420
Nidec Sankyo Corp.	7,000		57,582
Noritz Corp.	2,800		39,921
Pioneer Corp.a,b	14,000		49,468
			393,242
HOUSEHOLD PRODUCTS & WARES – 0.09%
Pilot Corp.	21		25,876
			25,876
HOUSEWARES – 0.41%
Noritake Co. Ltd.	14,000		38,598
Sangetsu Co. Ltd.	3,500		81,410
			120,008
INTERNET – 1.98%
Access Co. Ltd.a,b	21		31,784
CyberAgent Inc.	49		89,161
Digital Garage Inc.	7		14,959
Dwango Co. Ltd.	7		12,123
eAccess Ltd.	119		96,148
En-Japan Inc.	14		16,479
GMO Internet Inc.	4,900		18,417
Gourmet Navigator Inc.	14		28,704
Internet Initiative Japan Inc.	14		27,727
kabu.com Securities Co. Ltd.	35		35,093
Kakaku.com Inc.	14		54,825
Mixi Inc.a	7		45,057
Monex Group Inc.	98		46,869
Opt Inc.	7		9,531
So-net Entertainment Corp.	14		36,550
VeriSign Japan K.K.	28		10,681
			574,108
IRON & STEEL – 1.15%
Aichi Steel Corp.	14,000		57,818
Godo Steel Ltd.	14,000		30,406
Kyoei Steel Ltd.	1,400		25,758
Mitsubishi Steel Manufacturing Co. Ltd.a	14,000		23,946

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2010

Security	Shares	Value
Nakayama Steel Works Ltd.	14,000	$	20,165
Nippon Metal Industry Co. Ltd.	14,000		20,796
Nippon Yakin Kogyo Co. Ltd.	10,500		31,193
Sanyo Special Steel Co. Ltd.	7,000		27,964
TOPY Industries Ltd.	21,000		38,046
Yodogawa Steel Works Ltd.	14,000		57,818
			333,910
LEISURE TIME – 1.42%
Accordia Golf Co. Ltd.	49		51,556
Daiichikosho Co. Ltd.	4,200		56,668
Fields Corp.	14		17,550
H.I.S. Co. Ltd.	2,100		37,787
Heiwa Corp.	4,900		51,501
Mars Engineering Corp.	700		13,620
Mizuno Corp.	7,000		32,139
Pacific Golf Group International Holdings K.K.	49		36,006
Roland Corp.	2,100		20,819
Round One Corp.	4,200		27,034
Tokyo Dome Corp.	14,000		38,913
Universal Entertainment Corp.a	2,100		27,271
			410,864
LODGING – 0.10%
Fujita Kanko Inc.	7,000		28,121
			28,121
MACHINERY – 4.16%
Aida Engineering Ltd.	7,700		25,561
Chugai Ro Co. Ltd.	7,000		19,141
CKD Corp.	6,300		48,350
Daifuku Co. Ltd.	7,000		51,831
Daihen Corp.	14,000		60,496
Fuji Machine Manufacturing Co. Ltd.	3,500		56,518
Furukawa Co. Ltd.	28,000		31,193
Harmonic Drive Systems Inc.	7		21,268
Iseki & Co. Ltd.a,b	14,000		40,803
Komori Corp.	5,600		62,639
Makino Milling Machine Co. Ltd.a	7,000		35,998
Max Co. Ltd.	7,000		73,178
Miura Co. Ltd.	2,800		73,698
Modec Inc.	2,100		37,432
Nabtesco Corp.	7,000		87,987
Nippon Sharyo Ltd.	7,000		43,167

Security	Shares	Value
Nippon Thompson Co. Ltd.	7,000	$	44,900
Obara Corp.	1,400		15,345
Okuma Corp.	14,000		83,182
Shima Seiki Manufacturing Ltd.	2,100		40,764
Sintokogio Ltd.	5,600		40,331
Tadano Ltd.	14,000		66,168
Toshiba Machine Co. Ltd.b	14,000		56,400
Toyo Kanetsu K.K.	14,000		27,412
Tsubakimoto Chain Co.	14,000		59,709
			1,203,471
MACHINERY – DIVERSIFIED – 0.68%
Ebara Corp.a	35,000		166,995
Torishima Pump Manufacturing Co. Ltd.	1,400		30,374
			197,369
MANUFACTURING – 1.60%
Amano Corp.	7,000		61,442
Glory Ltd.	5,600		125,971
Kureha Corp.	14,000		65,695
Nikkiso Co. Ltd.	7,000		43,639
Nitta Corp.	2,800		41,213
Tamron Co. Ltd.	1,400		20,323
Tenma Corp.	2,800		31,351
Tokai Rubber Industries Ltd.	2,800		36,424
Toyo Tanso Co. Ltd.	700		36,274
			462,332
MEDIA – 0.45%
Gakken Holdings Co. Ltd.	7,000		17,172
Kadokawa Group Holdings Inc.	2,100		50,051
SKY Perfect JSAT Holdings Inc.	140		62,072
			129,295
METAL FABRICATE & HARDWARE – 1.63%
Kitz Corp.	7,000		36,314
Misumi Group Inc.	7,000		130,051
Nachi-Fujikoshi Corp.	21,000		59,315
Neturen Co. Ltd.	4,200		25,002
Oiles Corp.	3,580		56,158
Onoken Co. Ltd.	1,400		9,295
Ryobi Ltd.a	14,000		43,954
Tocalo Co. Ltd.	1,400		27,239
Toho Zinc Co. Ltd.	14,000		61,442

22 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2010

Security	Shares	Value
Yamazen Corp.	6,300	$	23,679
			472,449
MINING – 1.32%
Nippon Coke & Engineering Co. Ltd.	14,000		17,960
Nippon Denko Co. Ltd.	7,000		43,088
Nippon Light Metal Co. Ltd.a	56,000		64,277
Nittetsu Mining Co. Ltd.	7,000		30,248
OSAKA Titanium technologies Co. Ltd.	1,400		44,569
Pacific Metals Co. Ltd.	14,000		102,403
Sumitomo Light Metal Industries Ltd.a	35,000		31,115
Toho Titanium Co. Ltd.	2,800		49,563
			383,223
OFFICE & BUSINESS EQUIPMENT – 0.15%
Canon Finetech Inc.	2,800		43,828
			43,828
OFFICE FURNISHINGS – 0.35%
Kokuyo Co. Ltd.	8,400		63,710
Okamura Corp.	7,000		37,180
			100,890
OIL & GAS – 0.08%
AOC Holdings Inc.	4,200		22,781
			22,781
PACKAGING & CONTAINERS – 0.38%
FP Corp.	1,400		65,774
Fuji Seal International Inc.	2,100		43,174
			108,948
PHARMACEUTICALS – 3.34%
EPS Co. Ltd.	7		28,476
Kaken Pharmaceutical Co. Ltd.	7,000		62,072
Kobayashi Pharmaceutical Co. Ltd.	2,800		114,218
KYORIN Co. Ltd.	7,000		105,002
Miraca Holdings Inc.	4,900		148,326
Mochida Pharmaceutical Co. Ltd.	7,000		68,373
Nichi-Iko Pharmaceutical Co. Ltd.b	2,100		61,938
Nippon Shinyaku Co. Ltd.	7,000		78,692
Rohto Pharmaceutical Co. Ltd.	7,000		81,292
Sawai Pharmaceutical Co. Ltd.b	1,400		96,258
Seikagaku Corp.	3,500		37,613
Toho Holdings Co. Ltd.	3,500		47,341

Security	Shares	Value
Towa Pharmaceutical Co. Ltd.	700	$	37,653
			967,254
REAL ESTATE – 1.30%
Arnest One Corp.	3,500		33,872
Daibiru Corp.	4,900		39,315
Daikyo Inc.a	21,000		38,755
Goldcrest Co. Ltd.	1,680		47,830
Heiwa Real Estate Co. Ltd.	17,500		54,746
Leopalace21 Corp.a	9,100		43,828
Sankei Building Co. Ltd. (The)	2,800		18,149
Shoei Co. Ltd.	2,800		22,371
Sumitomo Real Estate Sales Co. Ltd.	700		30,366
TOC Co. Ltd.	7,000		25,837
Tokyu Livable Inc.	2,100		17,062
Touei Housing Corp.	700		5,396
			377,527
REAL ESTATE INVESTMENT TRUSTS – 4.20%
DA Office Investment Corp.	21		43,836
Frontier Real Estate Investment Corp.	14		104,608
Fukuoka REIT Corp.	7		38,677
Global One Real Estate Investment Corp. Ltd.	7		51,753
Hankyu REIT Inc.	7		27,373
Japan Excellent Inc.	14		62,150
Japan Logistics Fund Inc.	14		103,190
Kenedix Realty Investment Corp.	21		57,306
MID REIT Inc.	14		29,208
Mori Hills REIT Investment Corp.	7		20,709
MORI TRUST Sogo REIT Inc.	7		61,757
Nippon Accommodations Fund Inc.	14		72,627
Nippon Commercial Investment Corp.	21		26,491
Nippon Residential Investment Corp.	56		131,705
Nomura Real Estate Residential Fund Inc.	7		28,633
ORIX JREIT Inc.	21		100,906
Premier Investment Corp.	14		46,302
TOKYU REIT Inc.	14		68,688
Top REIT Inc.	14		63,962
United Urban Investment Corp.	14		75,305
			1,215,186
RETAIL – 9.94%
Alpen Co. Ltd.	1,400		21,993

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2010

Security	Shares	Value
Aoki Holdings Inc.	2,800	$	33,399
Aoyama Trading Co. Ltd.	5,600		91,564
Arcs Co. Ltd.	2,800		38,251
Askul Corp.	2,100		38,377
Autobacs Seven Co. Ltd.	2,800		82,962
Belluna Co. Ltd.	2,450		10,311
Best Denki Co. Ltd.a	7,000		16,699
BIC Camera Inc.	63		21,587
Cawachi Ltd.	1,400		28,169
Chiyoda Co. Ltd.	2,800		34,218
Circle K Sunkus Co. Ltd.	4,900		61,481
cocokara fine HOLDINGS Inc.	700		11,887
Colowide Co. Ltd.b	3,500		20,835
Culture Convenience Club Co. Ltd.b	8,400		42,158
Daiei Inc. (The)a,b	6,300		20,914
DCM Japan Holdings Co. Ltd.	7,000		40,331
Don Quijote Co. Ltd.	4,200		106,341
Doutor Nichires Holdings Co. Ltd.	4,200		53,690
Duskin Co. Ltd.	4,900		90,815
EDION Corp.	7,000		73,809
Fuji Co. Ltd.	1,400		26,924
GEO Corp.	35		36,826
Gulliver International Co. Ltd.	350		14,888
H2O Retailing Corp.	14,000		92,950
Heiwado Co. Ltd.	3,500		44,742
Honeys Co. Ltd.	1,820		13,783
Izumi Co. Ltd.	5,600		70,012
Izumiya Co. Ltd.	7,000		31,902
Joshin Denki Co. Ltd.b	7,000		62,544
Keiyo Co. Ltd.b	3,500		17,448
Kisoji Co. Ltd.	3,500		75,108
Kohnan Shoji Co. Ltd.	2,100		23,797
Komeri Co. Ltd.	2,800		75,809
K’s Holdings Corp.	3,500		102,954
Maruetsu Inc. (The)	7,000		29,460
Matsumotokiyoshi Co. Ltd.	3,500		76,959
Matsuya Co. Ltd.a,b	2,800		24,041
Megane Top Co. Ltd.	1,400		10,177
MOS Food Services Inc.	2,800		47,735
Nishimatsuya Chain Co. Ltd.	4,900		46,042
Nissen Holdings Co. Ltd.	4,900		20,016
Parco Co. Ltd.	7,000		54,903
Paris Miki Holdings Inc.	3,500		29,815

Security	Shares	Value
Plenus Co. Ltd.	2,800	$	39,480
Point Inc.	1,260		78,125
Right On Co. Ltd.	2,100		15,786
Ryohin Keikaku Co. Ltd.	2,100		87,909
Saint Marc Holdings Co. Ltd.	700		23,434
Saizeriya Co. Ltd.	2,800		51,327
San-A & Co. Ltd.	700		25,679
Sankyo-Tateyama Holdings Inc.a	35,000		44,506
Seiko Holdings Corp.	7,000		13,943
Senshukai Co. Ltd.	4,200		24,246
Shimachu Co. Ltd.	4,200		88,712
Sugi Holdings Co. Ltd.	2,800		67,775
Sundrug Co. Ltd.	2,800		67,869
Toridoll Corp.	7		12,737
Tsuruha Holdings Inc.	1,400		54,195
Valor Co. Ltd.	3,500		28,555
Watami Co. Ltd.b	2,800		51,233
Xebio Co. Ltd.	2,100		40,339
Yoshinoya Holdings Co. Ltd.b	42		46,790
Zensho Co. Ltd.b	6,300		47,074
			2,878,340
SEMICONDUCTORS – 0.43%
Megachips Corp.	1,400		18,527
Mimasu Semiconductor Industry Co. Ltd.	2,100		25,427
NEC Electronics Corp.a,b	3,500		34,069
Sanken Electric Co. Ltd.	7,000		24,498
Shindengen Electric Manufacturing Co. Ltd.a	7,000		22,056
			124,577
SHIPBUILDING – 0.54%
Hitachi Zosen Corp.a	73,500		103,387
Namura Shipbuilding Co. Ltd.	4,200		23,301
Sasebo Heavy Industries Co. Ltd.	14,000		30,406
			157,094
SOFTWARE – 1.12%
Capcom Co. Ltd.	4,200		71,603
Fuji Soft Inc.	2,800		47,042
Nihon Unisys Ltd.	5,600		33,525
NSD Co. Ltd.	3,500		39,425
Obic Business Consultants Co. Ltd.	700		30,721
Sumisho Computer Systems Corp.	2,100		28,381

24 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2010

Security	Shares	Value
Tecmo Koei Holdings Co. Ltd.a	4,200	$	27,601
Trans Cosmos Inc.a	2,800		22,308
Works Applications Co. Ltd.	35		23,001
			323,607
STORAGE & WAREHOUSING – 0.47%
Mitsui-Soko Co. Ltd.	14,000		52,462
Shibusawa Warehouse Co. Ltd. (The)	7,000		22,686
Sumitomo Warehouse Co. Ltd. (The)	14,000		61,757
			136,905
TELECOMMUNICATIONS – 1.36%
Daimei Telecom Engineering Corp.	2,800		20,039
Denki Kogyo Co. Ltd.	7,000		35,447
Hikari Tsushin Inc.	2,100		36,723
Hitachi Kokusai Electric Inc.	7,000		64,907
IT Holdings Corp.	7,048		78,756
Japan Radio Co. Ltd.	7,000		13,312
MTI Ltd.	7		13,966
Oki Electric Industry Co. Ltd.a	70,000		53,564
Okinawa Cellular Telephone Co.	14		25,916
Telepark Corp.	21		31,737
Uniden Corp.a	7,000		17,881
			392,248
TEXTILES – 0.96%
Daiwabo Holdings Co. Ltd.	14,000		28,200
Kurabo Industries Ltd.	21,000		37,574
Nitto Boseki Co. Ltd.	28,000		54,510
Seiren Co. Ltd.	5,600		35,353
Toyobo Co. Ltd.	56,000		85,073
Unitika Ltd.a	49,000		38,046
			278,756
TOYS, GAMES & HOBBIES – 0.31%
Sanrio Co. Ltd.	4,200		35,589
Tomy Co. Ltd.	7,000		54,352
			89,941
TRANSPORTATION – 2.87%
Daiichi Chuo Kisen Kaishaa,b	7,000		18,590
Fukuyama Transporting Co. Ltd.	14,000		68,373
Hitachi Transport System Ltd.	4,200		57,944
Iino Kaiun Kaisha Ltd.	8,400		46,128
Inui Steamship Co. Ltd.	2,100		16,235
Kintetsu World Express Inc.	1,400		36,250

Security	Shares	Value
Nippon Konpo Unyu Soko Co. Ltd.	7,000	$	78,771
Nishi-Nippon Railroad Co. Ltd.	28,000		112,485
Sankyu Inc.	21,000		100,906
Seino Holdings Co. Ltd.	14,000		98,779
Shinwa Kaiun Kaisha Ltd.a	7,000		21,898
Sotetsu Holdings Inc.	35,000		153,604
Yusen Air & Sea Service Co. Ltd.	1,400		19,598
			829,561
TOTAL COMMON STOCKS (Cost: $31,455,491)			28,855,213
SHORT-TERM INVESTMENTS – 3.96%
MONEY MARKET FUNDS – 3.96%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	982,139		982,139
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	157,840		157,840
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	6,584		6,584
			1,146,563
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,146,563)			1,146,563
TOTAL INVESTMENTS IN SECURITIES – 103.62%
(Cost: $32,602,054)			30,001,776
Other Assets, Less Liabilities – (3.62)%			(1,047,942)
NET ASSETS – 100.00%		$	28,953,834

^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 MALAYSIA INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.50%
AGRICULTURE – 11.87%
British American Tobacco (Malaysia) Bhd	923,000	$	11,377,930
Genting Plantations Bhd	1,491,000		2,710,113
IOI Corp. Bhd	24,140,030		38,065,471
Kuala Lumpur Kepong Bhd	3,124,000		15,356,265
			67,509,779
AIRLINES – 0.89%
AirAsia Bhda	8,094,000		3,422,511
Malaysian Airline System Bhda	2,698,000		1,647,876
			5,070,387
AUTO PARTS & EQUIPMENT – 1.19%
UMW Holdings Bhd	3,692,000		6,797,486
			6,797,486
BANKS – 27.27%
Alliance Financial Group Bhd	6,035,000		4,926,531
AMMB Holdings Bhd	12,851,037		18,490,701
CIMB Group Holdings Bhd	12,922,032		49,403,863
Hong Leong Bank Bhd	3,124,000		7,705,653
Malayan Banking Bhd	23,217,020		47,518,024
Public Bank Bhd Foreign	6,958,000		22,720,000
RHB Capital Bhd	2,840,000		4,403,230
			155,168,002
BUILDING MATERIALS – 0.72%
Lafarge Malayan Cement Bhd	2,201,060		4,071,848
			4,071,848
COMMERCIAL SERVICES – 1.76%
PLUS Expressways Bhd	9,869,000		9,997,959
			9,997,959
DIVERSIFIED FINANCIAL SERVICES – 1.53%
Bursa Malaysia Bhd	2,272,000		4,856,896
Hong Leong Financial Group Bhd	1,704,000		3,852,826
			8,709,722
ELECTRIC – 6.76%
Tenaga Nasional Bhd	12,780,050		29,872,030
YTL Power International Bhd	13,561,075		8,601,357
			38,473,387
ENGINEERING & CONSTRUCTION – 5.86%
Gamuda Bhd	10,579,000		8,604,854

Security	Shares	Value
IJM Corp. Bhd	7,384,040	$	9,605,432
MMC Corp. Bhd	4,970,000		3,560,945
YTL Corp. Bhd	5,467,021		11,590,630
			33,361,861
ENTERTAINMENT – 2.31%
Berjaya Sports Toto Bhd	4,899,050		6,142,694
Tanjong PLC	1,349,000		6,979,703
			13,122,397
FOOD – 2.91%
PPB Group Bhd	3,479,066		16,549,954
			16,549,954
GAS – 1.63%
Petronas Gas Bhd	3,266,000		9,254,706
			9,254,706
HOLDING COMPANIES – DIVERSIFIED – 8.58%
Sime Darby Bhd	19,667,025		48,799,401
			48,799,401
IRON & STEEL – 0.97%
Parkson Holdings Bhd	3,408,033		5,534,113
			5,534,113
LODGING – 7.71%
Genting Bhd	14,555,000		26,968,742
Genting Malaysia Bhd	21,158,000		16,899,063
			43,867,805
MEDIA – 0.56%
Astro All Asia Networks PLC	3,195,000		3,180,458
			3,180,458
OIL & GAS – 0.74%
Petronas Dagangan Bhd	1,633,000		4,190,991
			4,190,991
REAL ESTATE – 2.20%
IGB Corp. Bhda	5,893,000		3,028,263
KLCC Property Holdings Bhd	3,053,000		2,931,525
SP Setia Bhd	5,325,000		6,536,045
			12,495,833
TELECOMMUNICATIONS – 10.52%
Axiata Group Bhda	16,614,000		18,197,099
DiGi.Com Bhd	2,272,000		15,024,355
Maxis Communications Bhd	12,283,000		19,909,605

26 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MALAYSIA INDEX FUND

February 28, 2010

Security	Shares	Value
Telekom Malaysia Bhd	7,029,000	$	6,728,686
			59,859,745
TRANSPORTATION – 3.52%
MISC Bhd Foreign	8,793,920		20,012,591
			20,012,591
TOTAL COMMON STOCKS (Cost: $325,659,975)			566,028,425
RIGHTS – 0.01%
AIRLINES – 0.01%
Malaysian Airline System Bhda	2,784,600		73,591
			73,591
TOTAL RIGHTS (Cost: $412,208)			73,591
SHORT-TERM INVESTMENTS – 0.01%
MONEY MARKET FUNDS – 0.01%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%b,c	67,677		67,677
			67,677
TOTAL SHORT-TERM INVESTMENTS (Cost: $67,677)			67,677
TOTAL INVESTMENTS IN SECURITIES – 99.52% (Cost: $326,139,860)			566,169,693
Other Assets, Less Liabilities – 0.48%			2,742,409
NET ASSETS – 100.00%		$	568,912,102

^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, 2010

Security	Shares	Value
COMMON STOCKS – 99.37%
AUSTRALIA – 67.64%
AGL Energy Ltd.	1,375,920	$	17,705,799
Alumina Ltd.	7,524,504		10,140,981
Amcor Ltd.	3,759,288		19,963,003
AMP Ltd.	6,298,656		33,504,252
Aristocrat Leisure Ltd.	1,214,928		4,602,105
Arrow Energy Ltd.a,b	1,818,648		5,406,950
Asciano Groupa	8,668,608		13,972,929
ASX Ltd.	536,952		17,531,445
Australia and New Zealand Banking Group Ltd.	7,738,224		160,350,472
AXA Asia Pacific Holdings Ltd.	3,162,432		18,266,128
Bendigo and Adelaide Bank Ltd.	1,088,880		9,380,385
BGP Holdings PLCc	27,004,595		3,685
BHP Billiton Ltd.	10,370,568		381,689,274
Billabong International Ltd.	625,267		5,694,454
BlueScope Steel Ltd.	5,638,776		12,219,848
Boral Ltd.	1,823,016		8,766,583
Brambles Ltd.	4,319,016		26,841,691
Caltex Australia Ltd.a	421,200		3,960,438
CFS Retail Property Trust	5,375,448		9,146,056
Coca-Cola Amatil Ltd.	1,747,200		17,555,010
Cochlear Ltd.	175,032		9,945,226
Commonwealth Bank of Australia	4,732,728		228,521,475
Computershare Ltd.	1,366,248		14,253,485
Crown Ltd.	1,498,848		10,737,747
CSL Ltd.	1,744,704		53,730,332
CSR Ltd.	4,397,328		6,379,248
Dexus Property Group	14,550,432		10,749,677
Energy Resources of Australia Ltd.	207,480		3,413,115
Fairfax Media Ltd.b	6,447,168		9,526,174
Fortescue Metals Group Ltd.a,b	3,814,824		15,885,213
Foster’s Group Ltd.	5,945,472		28,697,277
Goodman Fielder Ltd.	3,900,312		5,256,558
Goodman Group	18,471,024		9,924,481
GPT Group	28,506,816		14,678,516
Harvey Norman Holdings Ltd.	1,619,592		5,554,820
Incitec Pivot Ltd.	4,975,152		14,435,005
Insurance Australia Group Ltd.	6,398,808		22,634,024

Security	Shares	Value
Intoll Group	7,102,992	$	7,155,821
James Hardie Industries  SEa	1,326,000		8,834,501
Leighton Holdings Ltd.	458,952		15,494,380
Lend Lease Group	1,344,096		11,639,179
Macquarie Group Ltd.	1,032,408		41,843,837
MAp Group	2,281,032		6,373,112
Metcash Ltd.	2,349,360		8,667,870
Mirvac Group	8,322,600		11,402,919
National Australia Bank Ltd.	6,484,296		147,722,119
Newcrest Mining Ltd.	1,493,232		41,907,511
Nufarm Ltd.b	538,512		4,692,171
OneSteel Ltd.	4,099,368		12,664,895
Orica Ltd.	1,112,592		24,918,117
Origin Energy Ltd.	2,705,976		40,734,017
OZ Minerals Ltd.a	9,688,536		9,023,127
Paladin Energy Ltd.a	1,973,400		6,379,519
Qantas Airways Ltd.	3,463,824		8,188,896
QBE Insurance Group Ltd.	3,154,944		60,460,400
Rio Tinto Ltd.	1,345,032		84,915,569
Santos Ltd.	2,568,072		29,804,222
Sims Metal Management Ltd.	498,576		8,675,005
Sonic Healthcare Ltd.	1,126,632		13,670,581
SP AusNet	4,281,264		3,623,009
Stockland Corp. Ltd.	7,362,888		26,769,473
Suncorp-Metway Ltd.	3,908,424		29,889,946
Tabcorp Holdings Ltd.	1,873,560		11,358,523
Tatts Group Ltd.	3,795,168		8,156,575
Telstra Corp. Ltd.	13,452,504		35,778,750
Toll Holdings Ltd.	2,040,480		12,425,299
Transurban Group	3,588,000		16,836,403
Wesfarmers Ltd.	3,108,144		86,645,466
Wesfarmers Ltd. Partially Protected	472,368		13,202,003
Westfield Group	6,418,464		69,087,769
Westpac Banking Corp.	9,099,792		212,929,809
Woodside Petroleum Ltd.	1,674,192		65,021,993
Woolworths Ltd.	3,824,496		91,922,603
WorleyParsons Ltd.	507,312		11,166,642
			2,541,005,892
HONG KONG – 19.04%
ASM Pacific Technology Ltd.	624,000		5,887,665
Bank of East Asia Ltd.b	4,555,320		16,634,999

28 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2010

Security	Shares	Value
BOC Hong Kong (Holdings) Ltd.	11,388,000	$	25,670,619
Cathay Pacific Airways Ltd.a	3,744,000		6,954,276
Cheung Kong (Holdings) Ltd.b	4,368,000		53,282,359
Cheung Kong Infrastructure Holdings Ltd.	1,560,000		5,867,570
Chinese Estates Holdings Ltd.	2,184,000		3,505,270
CLP Holdings Ltd.b	6,240,000		43,122,621
Esprit Holdings Ltd.	3,525,611		25,136,387
Foxconn International Holdings Ltd.a,b	6,552,000		6,717,966
Hang Lung Group Ltd.b	2,496,000		12,554,992
Hang Lung Properties Ltd.	6,240,736		23,834,791
Hang Seng Bank Ltd.	2,371,200		34,666,890
Henderson Land Development Co. Ltd.	3,120,056		21,079,423
Hong Kong Aircraft Engineering Co. Ltd.	249,600		3,197,424
Hong Kong and China Gas Co. Ltd. (The)	12,168,661		27,399,022
Hong Kong Exchanges and Clearing Ltd.b	3,120,000		52,205,298
Hongkong Electric Holdings Ltd.	4,212,000		23,573,767
Hopewell Holdings Ltd.	1,716,000		5,028,628
Hutchison Whampoa Ltd.	6,552,000		47,008,882
Hysan Development Co. Ltd.b	1,872,000		4,979,397
Kerry Properties Ltd.	2,184,000		10,394,843
Li & Fung Ltd.	6,865,600		31,925,414
Lifestyle International Holdings Ltd.	1,872,000		3,091,325
Link REIT (The)b	6,864,000		17,258,694
Mongolia Energy Corp. Ltd.a	9,360,000		4,352,451
MTR Corp. Ltd.	4,368,000		15,135,116
New World Development Co. Ltd.	7,800,941		14,308,951
NWS Holdings Ltd.b	2,496,000		4,237,511
Orient Overseas International Ltd.b	624,000		4,561,433
PCCW Ltd.	11,544,000		3,197,022
Sands China Ltd.a	6,364,800		9,018,375
Shangri-La Asia Ltd.b	4,368,000		7,258,104
Sino Land Co. Ltd.b	4,992,000		9,465,275
Sun Hung Kai Properties Ltd.	4,368,000		60,652,991

Security	Shares	Value
Swire Pacific Ltd. Class A	2,340,000	$	26,117,720
Television Broadcasts Ltd.	936,000		4,274,083
Wharf (Holdings) Ltd. (The)	4,368,000		22,505,748
Wheelock and Co. Ltd.	2,808,000		7,866,965
Wing Hang Bank Ltd.	624,000		5,228,568
Yue Yuen Industrial (Holdings) Ltd.	2,028,000		6,047,415
			715,206,250
NEW ZEALAND – 0.83%
Auckland International Airport Ltd.	2,655,117		3,448,567
Contact Energy Ltd.a	950,352		4,061,420
Fletcher Building Ltd.	1,864,824		10,326,498
Sky City Entertainment Group Ltd.	1,713,909		3,829,832
Telecom Corp. of New Zealand Ltd.	5,759,520		9,370,964
			31,037,281
SINGAPORE – 11.86%
Ascendas Real Estate Investment Trustb	4,368,813		5,998,299
CapitaLand Ltd.	7,800,000		20,974,603
CapitaMall Trust Management Ltd.	6,864,781		8,643,852
CapitaMalls Asia Ltd.a	4,368,000		7,084,755
City Developments Ltd.b	1,560,000		11,408,408
ComfortDelGro Corp. Ltd.	5,616,000		6,192,502
COSCO Corp. (Singapore)  Ltd.b	3,120,104		2,707,923
DBS Group Holdings Ltd.	5,304,000		52,824,927
Fraser and Neave Ltd.	2,808,150		8,510,151
Genting Singapore PLCa,b	14,352,400		9,138,079
Golden Agri-Resources Ltd.a	21,145,987		7,972,806
Jardine Cycle & Carriage Ltd.	378,000		6,529,018
Keppel Corp. Ltd.	4,056,000		24,266,173
Neptune Orient Lines Ltd.b	2,808,750		3,556,644
Noble Group Ltd.b	5,928,400		13,369,160
Olam International Ltd.b	3,744,600		6,473,201
Oversea-Chinese Banking Corp. Ltd.	8,112,600		48,997,634
SembCorp Industries Ltd.	2,808,240		7,531,525
SembCorp Marine Ltd.	2,808,200		7,411,554
Singapore Airlines Ltd.	1,560,800		16,521,807

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2010

Security	Shares	Value
Singapore Exchange Ltd.	2,496,000	$	13,690,090
Singapore Press Holdings  Ltd.b	4,851,517		12,804,388
Singapore Technologies
Engineering Ltd.	4,368,000		9,726,001
Singapore Telecommunications Ltd.	24,648,328		53,480,402
StarHub Ltd.	1,872,000		2,849,883
United Overseas Bank Ltd.	3,744,000		49,646,553
UOL Group Ltd.	1,560,000		4,416,874
Wilmar International Ltd.	4,056,000		18,755,069
Yangzijiang Shipbuilding (Holdings) Ltd.	4,992,000		4,048,431
			445,530,712
TOTAL COMMON STOCKS (Cost: $3,218,828,765)			3,732,780,135
SHORT-TERM INVESTMENTS – 2.96%
MONEY MARKET FUNDS – 2.96%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%d,e,f	95,515,543		95,515,543
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%d,e,f	15,350,370		15,350,370
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%d,e	309,232		309,232
			111,175,145
TOTAL SHORT-TERM INVESTMENTS
(Cost: $111,175,145)			111,175,145

	Value
TOTAL INVESTMENTS IN SECURITIES – 102.33% (Cost: $3,330,003,910)	$	3,843,955,280
Other Assets, Less Liabilities – (2.33)%		(87,572,855)
NET ASSETS – 100.00%	$	3,756,382,425

^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 in accordance with management’s fair valuation policy. 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.

30 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.77%
AGRICULTURE – 5.91%
Golden Agri-Resources Ltd.a	66,000,628	$	24,884,636
Wilmar International Ltd.	13,200,000		61,037,206
			85,921,842
AIRLINES – 3.85%
Singapore Airlines Ltd.b	5,280,467		55,896,243
			55,896,243
BANKS – 34.77%
DBS Group Holdings Ltd.	17,160,500		170,909,156
Oversea-Chinese Banking Corp. Ltd.	26,400,000		159,447,962
United Overseas Bank Ltd.	13,200,000		175,035,925
			505,393,043
BEVERAGES – 2.20%
Fraser and Neave Ltd.	10,560,000		32,002,276
			32,002,276
DISTRIBUTION & WHOLESALE – 1.57%
Jardine Cycle & Carriage Ltd.	1,320,000		22,799,744
			22,799,744
DIVERSIFIED FINANCIAL SERVICES – 3.49%
Singapore Exchange Ltd.	9,240,000		50,679,661
			50,679,661
ENGINEERING & CONSTRUCTION – 4.17%
SembCorp Industries Ltd.	10,560,000		28,321,263
Singapore Technologies Engineering Ltd.	14,520,000		32,330,938
			60,652,201
FOOD – 1.41%
Olam International Ltd.b	11,880,000		20,536,672
			20,536,672
HOLDING COMPANIES – DIVERSIFIED – 7.76%
Keppel Corp. Ltd.	11,880,000		71,075,479
Noble Group Ltd.b	18,480,000		41,674,326
			112,749,805
MEDIA – 2.88%
Singapore Press Holdings Ltd.b	15,840,000		41,805,791
			41,805,791
REAL ESTATE – 10.51%
CapitaLand Ltd.	22,440,000		60,342,321

Security	Shares	Value
CapitaMalls Asia Ltd.a	5,280,000	$	8,563,990
City Developments Ltd.b	5,280,000		38,613,075
Genting Singapore PLCa,b	47,520,400		30,255,928
UOL Group Ltd.	5,280,000		14,949,420
			152,724,734
REAL ESTATE INVESTMENT TRUSTS – 3.31%
Ascendas Real Estate Investment Trust	14,520,335		19,936,150
CapitaMall Trust Management Ltd.	22,440,800		28,256,538
			48,192,688
SHIPBUILDING – 2.39%
SembCorp Marine Ltd.b	7,920,000		20,902,895
Yangzijiang Shipbuilding (Holdings) Ltd.b	17,160,000		13,916,483
			34,819,378
TELECOMMUNICATIONS – 12.71%
Singapore Telecommunications Ltd.	80,520,568		174,708,496
StarHub Ltd.	6,600,000		10,047,663
			184,756,159
TRANSPORTATION – 2.84%
ComfortDelGro Corp. Ltd.	18,480,000		20,377,036
COSCO Corp. (Singapore)  Ltd.b	10,560,000		9,164,972
Neptune Orient Lines Ltd.b	9,240,499		11,700,995
			41,243,003
TOTAL COMMON STOCKS (Cost: $1,443,829,653)			1,450,173,240

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2010

Security	Shares	Value
SHORT-TERM INVESTMENTS – 9.70%
MONEY MARKET FUNDS – 9.70%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	120,687,600	$	120,687,600
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	19,395,789		19,395,789
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	846,659		846,659
			140,930,048
TOTAL SHORT-TERM INVESTMENTS
(Cost: $140,930,048)			140,930,048
TOTAL INVESTMENTS IN SECURITIES – 109.47% (Cost: $1,584,759,701)			1,591,103,288
Other Assets, Less Liabilities – (9.47)%			(137,615,618	)
NET ASSETS – 100.00%		$	1,453,487,670

^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.

32 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 96.08%
AGRICULTURE – 1.58%
KT&G Corp.	837,856	$	46,374,994
			46,374,994
AIRLINES – 0.46%
Korean Air Lines Co. Ltd.a	270,692		13,559,104
			13,559,104
AUTO MANUFACTURERS – 4.91%
Hyundai Motor Co. Ltd.b	1,152,366		114,253,031
Kia Motors Corp.a	1,585,470		29,730,125
			143,983,156
AUTO PARTS & EQUIPMENT – 2.47%
Hankook Tire Co. Ltd.b	567,160		11,344,178
Hyundai Mobis Co. Ltd.a	476,936		61,061,295
			72,405,473
BANKS – 1.99%
Busan Banka	1,198,772		12,040,429
Daegu Bank	889,410		11,348,623
Industrial Bank of Koreaa	1,224,550		13,935,736
Korea Exchange Banka	1,920,610		21,111,973
			58,436,761
BEVERAGES – 0.16%
Hite Brewery Co. Ltd.a,b	38,670		4,734,149
			4,734,149
BIOTECHNOLOGY – 0.21%
Celltrion Inc.a,b	406,035		6,266,080
			6,266,080
CHEMICALS – 4.10%
Hanwha Chemical Corp.a	580,050		7,626,315
Honam Petrochemical Corp.a,b	103,120		10,624,054
KCC Corp.	38,670		11,752,026
Korea Zinc Co. Ltd.a,b	64,450		10,168,420
LG Chem Ltd.	348,035		64,512,048
OCI Co. Ltd.a,b	103,120		15,691,594
			120,374,457
COMMERCIAL SERVICES – 0.17%
S1 Corp.b	128,908		5,012,286
			5,012,286

Security	Shares	Value
COSMETICS & PERSONAL CARE – 0.59%
AmorePacific Corp.a	25,780	$	17,425,226
			17,425,226
DISTRIBUTION & WHOLESALE – 3.07%
Daewoo International Corp.a,b	371,563		11,628,362
Hanwha Corp.a	360,920		13,333,410
Hyosung Corp.a,b	170,148		12,835,546
Samsung C&T Corp.b	928,080		47,288,152
SK Networks Co. Ltd.	554,270		4,993,639
			90,079,109
DIVERSIFIED FINANCIAL SERVICES – 12.18%
Daewoo Securities Co. Ltd.b	928,080		15,482,669
Hana Financial Group Inc.a	1,430,791		41,323,820
Hyundai Securities Co. Ltd.	889,417		10,006,804
KB Financial Group Inc.a	2,418,707		101,657,010
Korea Investment Holdings Co. Ltd.	283,585		7,408,074
Mirae Asset Securities Co. Ltd.	167,579		8,524,150
Samsung Card Co. Ltd.	270,695		11,832,258
Samsung Securities Co. Ltd.	373,810		19,948,995
Shinhan Financial Group Co. Ltd.a	3,016,267		107,788,833
Tong Yang Securities Inc.	528,490		4,829,722
Woori Finance Holdings Co. Ltd.a	1,804,600		20,303,500
Woori Investment & Securities Co. Ltd.	644,500		8,251,423
			357,357,258
ELECTRIC – 2.10%
Korea Electric Power Corp.a	1,920,610		61,431,702
			61,431,702
ELECTRICAL COMPONENTS & EQUIPMENT – 2.88%
LG Electronics Inc.b	708,956		65,400,717
LS Corp.a	128,900		10,424,019
LS Industrial Systems Co. Ltd.a	121,166		8,513,690
			84,338,426
ELECTRONICS – 4.06%
LG Display Co. Ltd.b	1,740,152		51,909,009
Samsung Electro-Mechanics Co. Ltd.b	445,994		38,451,074
Samsung SDI Co. Ltd.	257,800		28,560,479
			118,920,562

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2010

Security	Shares	Value
ENGINEERING & CONSTRUCTION – 3.61%
Daelim Industrial Co. Ltd.a	206,240	$	12,677,741
Daewoo Engineering & Construction Co. Ltd.a,b	837,854		8,198,675
Doosan Heavy Industries & Construction Co. Ltd.a,b	235,887		17,754,061
GS Engineering & Construction Corp.a	266,823		20,059,458
Hanjin Heavy Industries & Construction Co. Ltd.a,b	232,024		4,360,827
Hyundai Engineering & Construction Co. Inc.a	373,818		19,304,852
Samsung Engineering Co. Ltd.b	222,997		23,551,283
			105,906,897
ENVIRONMENTAL CONTROL – 0.38%
Woongjin Coway Co. Ltd.a,b	373,810		11,199,153
			11,199,153
FOOD – 0.50%
CJ CheilJedang Corp.a	58,005		10,476,806
Lotte Confectionery Co. Ltd.a	4,000		4,221,054
			14,697,860
GAS – 0.27%
Korea Gas Corp.a	180,460		7,841,352
			7,841,352
HOLDING COMPANIES – DIVERSIFIED – 1.69%
GS Holdings Corp.a	373,810		12,311,011
LG Corp.a,b	708,950		37,284,205
			49,595,216
HOME BUILDERS – 0.42%
Hyundai Development Co.a	425,377		12,248,980
			12,248,980
HOUSEHOLD PRODUCTS & WARES – 0.53%
LG Household & Health Care  Ltd.b	64,450		15,419,325
			15,419,325
INSURANCE – 1.81%
Dongbu Insurance Co. Ltd.	296,470		8,051,388
Samsung Fire & Marine Insurance Co. Ltd.	283,585		45,108,572
			53,159,960

Security	Shares	Value
INTERNET – 2.20%
NCsoft Corp.a,b	105,698	$	12,119,867
NHN Corp.a,b	305,493		47,671,552
SK Broadband Co. Ltd.a	1,095,653		4,723,049
			64,514,468
IRON & STEEL – 8.88%
Dongkuk Steel Mill Co. Ltd.b	270,691		5,320,937
Hyundai Steel Co.a	409,902		31,381,410
POSCO	489,820		223,816,364
			260,518,711
LODGING – 0.35%
Kangwon Land Inc.a	721,842		10,268,465
			10,268,465
MACHINERY – 0.31%
Doosan Infracore Co. Ltd.a,b	567,160		9,119,350
			9,119,350
MANUFACTURING – 0.87%
Cheil Industries Inc.	357,053		18,162,020
Doosan Corp.b	77,340		7,201,242
			25,363,262
METAL PROCESSORS & FABRICATORS – 0.13%
Taewoong Co. Ltd.a,b	55,427		3,646,073
			3,646,073
OIL & GAS – 2.41%
SK Energy Co. Ltd.b	451,152		41,618,471
SK Holdings Co. Ltd.	180,464		13,442,615
S-Oil Corp.	335,140		15,718,265
			70,779,351
PHARMACEUTICALS – 0.32%
Yuhan Corp.a	67,661		9,508,357
			9,508,357
RETAIL – 2.55%
Hyundai Department Store Co. Ltd.a,b	116,010		9,951,716
Lotte Shopping Co. Ltd.a	64,455		17,726,653
Shinsegae Co. Ltd.	103,120		47,119,234
			74,797,603

34 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2010

Security	Shares	Value
SEMICONDUCTORS – 20.82%
Hynix Semiconductor Inc.a,b	3,518,970	$	63,710,984
Samsung Electronics Co. Ltd.	824,960		529,157,893
Samsung Techwin Co. Ltd.b	277,135		17,824,184
			610,693,061
SHIPBUILDING – 3.44%
Daewoo Shipbuilding & Marine Engineering Co. Ltd.a,b	721,840		12,539,940
Hyundai Heavy Industries Co. Ltd.b	283,580		50,486,482
Hyundai Mipo Dockyard Co. Ltd.	77,340		8,668,161
Samsung Heavy Industries Co. Ltd.b	1,211,660		25,749,995
STX Offshore & Shipbuilding Co. Ltd.a,b	322,250		3,320,017
			100,764,595
TELECOMMUNICATIONS – 3.17%
KT Corp.a	721,842		27,755,973
KT Corp. SP ADRa	464,040		8,900,288
LG Telecom Ltd.a	1,889,195		12,606,577
SKTelecom Co. Ltd.	175,560		26,109,234
SKTelecom Co. Ltd. SP  ADRb	1,052,527		17,556,150
			92,928,222
TRANSPORTATION – 0.49%
GLOVIS Co. Ltd.a,b	77,340		6,601,138
STX Pan Ocean Co. Ltd.a,b	773,430		7,868,328
			14,469,466
TOTAL COMMON STOCKS (Cost: $1,833,374,486)			2,818,138,470
PREFERRED STOCKS – 2.92%
AUTO MANUFACTURERS – 0.54%
Hyundai Motor Co. Ltd.b	167,570		5,728,210
Hyundai Motor Co. Ltd. Series 2	283,580		10,170,642
			15,898,852
ELECTRICAL COMPONENTS & EQUIPMENT – 0.16%
LG Electronics Inc.	128,906		4,689,916
			4,689,916

Security	Shares	Value
SEMICONDUCTORS – 2.22%
Samsung Electronics Co. Ltd.	154,680	$	65,011,207
			65,011,207
TOTAL PREFERRED STOCKS
(Cost: $63,478,777)			85,599,975
SHORT-TERM INVESTMENTS – 8.82%
MONEY MARKET FUNDS – 8.82%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	219,944,500		219,944,500
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	35,347,435		35,347,435
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	3,258,381		3,258,381
			258,550,316
TOTAL SHORT-TERM INVESTMENTS
(Cost: $258,550,316)			258,550,316
TOTAL INVESTMENTS IN SECURITIES – 107.82%
(Cost: $2,155,403,579)			3,162,288,761
Other Assets, Less Liabilities – (7.82)%			(229,220,262	)
NET ASSETS – 100.00%		$	2,933,068,499

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 35

Schedule of Investments (Unaudited)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.96%
AIRLINES – 0.32%
China Airlines Ltd.a	17,693,752	$	5,737,471
EVA Airways Corp.a	12,249,193		4,640,352
			10,377,823
APPAREL – 0.72%
Pou Chen Corp.	21,776,023		16,057,462
Ruentex Industries Ltd.a	4,083,000		6,963,601
			23,021,063
AUTO MANUFACTURERS – 0.24%
Yulon Motor Co. Ltd.	8,166,362		7,791,431
			7,791,431
AUTO PARTS & EQUIPMENT – 0.49%
Cheng Shin Rubber Industry Co. Ltd.	8,166,892		15,787,585
			15,787,585
BANKS – 6.19%
Chang Hwa Commercial Bank Ltd.	46,274,446		20,415,727
Chinatrust Financial Holding Co. Ltd.	81,660,899		44,302,740
E.Sun Financial Holding Co. Ltd.a	30,855,060		11,448,288
First Financial Holding Co. Ltd.	44,913,816		24,156,624
Hua Nan Financial Holdings Co. Ltd.	32,664,428		20,369,119
Mega Financial Holding Co. Ltd.	73,494,136		40,674,126
Taishin Financial Holdings Co. Ltd.a	35,895,845		12,087,462
Taiwan Business Bank Ltd.a	20,415,000		5,213,153
Taiwan Cooperative Bank Co. Ltd.	34,025,650		19,414,433
			198,081,672
BUILDING MATERIALS – 1.56%
Asia Cement Corp.	16,332,236		14,971,322
Taiwan Cement Corp.	28,581,558		26,378,178
Taiwan Glass Industrial Corp.	9,527,791		8,525,921
			49,875,421

Security	Shares	Value
CHEMICALS – 8.53%
Eternal Chemical Co. Ltd.	6,872,916	$	6,664,516
Formosa Chemicals & Fibre Corp.	27,220,204		61,531,368
Formosa Plastics Corp.	38,108,768		82,223,922
Nan Ya Plastics Corp.	48,996,860		97,008,359
Taiwan Fertilizer Co. Ltd.	6,805,000		20,581,027
TSRC Corp.	4,083,000		4,824,872
			272,834,064
COMPUTERS – 12.31%
Acer Inc.	24,742,781		69,431,765
Advantech Co. Ltd.	2,735,883		5,536,170
Chicony Electronics Co. Ltd.	4,083,015		9,942,582
Clevo Co.a	4,288,300		8,049,128
CMC Magnetics Corp.a	24,498,400		6,347,547
Compal Electronics Inc.	35,566,399		51,011,127
Foxconn Technology Co. Ltd.	5,444,300		19,266,601
HTC Corp.	6,805,077		68,745,653
Innolux Display Corp.	20,415,189		29,025,883
Inotera Memories Inc.a	16,908,024		11,624,349
Inventec Co. Ltd.	14,971,717		8,192,490
Lite-On Technology Corp.	20,415,772		26,289,543
MiTAC International Corp.	9,527,585		4,099,483
Qisda Corp.a	13,610,211		6,535,108
Quanta Computer Inc.	20,415,240		41,692,984
Wistron Corp.	16,332,755		28,008,466
			393,798,879
DIVERSIFIED FINANCIAL SERVICES – 4.07%
Capital Securities Corp.a	9,527,000		4,604,209
Fubon Financial Holding Co. Ltd.a	43,552,000		48,206,283
KGI Securities Co. Ltd.	27,220,000		11,754,525
Polaris Securities Co. Ltd.a	19,054,991		9,327,722
SinoPac Financial Holdings Co. Ltd.a	53,079,193		17,128,994
Yuanta Financial Holding Co. Ltd.	69,411,076		39,388,311
			130,410,044

36 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2010

Security	Shares	Value
ELECTRICAL COMPONENTS & EQUIPMENT – 2.48%
Delta Electronics Inc.	16,332,180	$	47,612,716
Pacific Electric Wire & Cable Co. Ltd.b	197		–
Simplo Technology Co. Ltd.	1,498,300		7,871,652
Tatung Co. Ltd.a	43,552,120		9,098,112
Walsin Lihwa Corp.a	25,859,069		8,465,827
Young Fast Optoelectronics Co. Ltd.	700,000		6,318,497
			79,366,804
ELECTRONICS – 18.80%
ASUSTeK Computer Inc.	36,747,803		64,850,749
AU Optronics Corp.	70,772,830		72,819,500
Cheng Uei Precision Industry Co. Ltd.	4,083,871		7,448,950
Chi Mei Optoelectronics  Corp.a	43,552,629		29,874,747
Chunghwa Picture Tubes Ltd.a	91,187,105		8,870,645
Coretronic Corp.	5,444,000		7,443,118
HannStar Display Corp.a	40,830,675		8,160,406
Hon Hai Precision Industry Co. Ltd.	74,855,827		296,412,504
Kinsus Interconnect Technology Corp.	2,722,043		6,238,060
Micro-Star International Co. Ltd.	8,166,855		4,889,036
Nan Ya Printed Circuit Board Corp.	1,389,453		5,458,604
Phison Electronics Corp.	1,361,968		8,747,850
Pixart Imaging Inc.	1,374,682		7,479,367
Prime View International Co. Ltd.a	4,095,000		8,056,575
Synnex Technology International Corp.	10,888,952		22,950,913
Tripod Technology Corp.	4,124,488		13,760,082
Unimicron Technology Corp.	12,249,794		13,692,575
Wintek Corp.a	8,166,000		5,805,123
WPG Holdings Co. Ltd.	5,444,000		8,775,580
Ya Hsin Industrial Co. Ltd.b	6,845,461		21
			601,734,405
ENERGY – ALTERNATE SOURCES – 0.33%
Motech Industries Inc.	2,722,403		10,610,348
			10,610,348

Security	Shares	Value
FOOD – 1.09%
Uni-President Enterprises Co.	31,303,567	$	34,746,496
			34,746,496
HOME FURNISHINGS – 0.19%
Teco Electric and Machinery Co. Ltd.	14,971,092		5,974,900
			5,974,900
INSURANCE – 3.39%
Cathay Financial Holding Co. Ltd.a	55,801,200		89,950,020
Shin Kong Financial Holding Co. Ltd.a	51,718,343		18,383,011
			108,333,031
INTERNET – 0.11%
Chinese Gamer International Corp.	385,000		3,661,236
			3,661,236
INVESTMENT COMPANIES – 0.79%
China Development Financial Holding Corp.a	92,548,496		25,191,313
			25,191,313
IRON & STEEL – 3.41%
China Steel Corp.	93,909,902		94,283,229
Feng Hsin Iron & Steel Co. Ltd.	4,083,050		6,709,073
Tung Ho Steel Enterprise Corp.	7,293,882		8,221,181
			109,213,483
LEISURE TIME – 0.24%
Giant Manufacturing Co. Ltd.	2,722,800		7,547,180
			7,547,180
MANUFACTURING – 0.55%
Largan Precision Co. Ltd.	1,361,794		17,557,154
			17,557,154
METAL FABRICATE & HARDWARE – 0.35%
Catcher Technology Co. Ltd.	5,444,743		11,119,516
			11,119,516
OIL & GAS – 0.97%
Formosa Petrochemical Corp.	12,249,950		31,013,982
			31,013,982

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2010

Security	Shares	Value
REAL ESTATE – 0.17%
Farglory Land Development Co. Ltd.	2,722,000	$	5,516,564
			5,516,564
RETAIL – 0.59%
Far Eastern Department Stores Co. Ltd.	8,414,735		6,021,301
President Chain Store Corp.	5,444,215		12,798,934
			18,820,235
SEMICONDUCTORS – 25.73%
Advanced Semiconductor Engineering Inc.	42,191,372		33,545,249
Epistar Corp.	5,444,047		14,614,777
Everlight Electronics Co. Ltd.	2,962,784		8,581,889
Formosa Sumco Technology Corp.	1,429,000		3,680,268
Macronix International Co. Ltd.	31,303,527		16,787,611
MediaTek Inc.	8,815,319		138,802,279
Nanya Technology Corp.a	8,447,587		6,268,690
Novatek Microelectronics Corp. Ltd.	4,083,544		11,497,202
Powerchip Semiconductor Corp.a	77,495,901		9,036,859
Powertech Technology Inc.	5,444,760		18,504,290
Realtek Semiconductor Corp.	4,125,150		10,804,041
Richtek Technology Corp.	1,361,635		12,715,245
Siliconware Precision Industries Co. Ltd.	27,220,214		31,614,404
Taiwan Semiconductor Manufacturing Co. Ltd.	235,453,882		431,668,506
Transcend Information Inc.	2,858,905		9,671,563
United Microelectronics Corp.a	117,046,501		56,383,769
Vanguard International Semiconductor Corp.	8,166,416		3,526,537
Winbond Electronics Corp.a	24,498,000		5,530,143
			823,233,322
TELECOMMUNICATIONS – 4.44%
Chunghwa Telecom Co. Ltd.	46,055,560		85,871,774
Compal Communications Inc.	2,817,810		2,785,083

Security	Shares	Value
Far EasTone Telecommunications Co. Ltd.	14,971,259	$	17,831,541
Taiwan Mobile Co. Ltd.	19,054,677		35,706,169
			142,194,567
TEXTILES – 1.11%
Far Eastern New Century Corp.	27,220,198		29,450,179
Formosa Taffeta Co. Ltd.	8,166,515		6,072,847
			35,523,026
TRANSPORTATION – 0.79%
Evergreen International Storage & Transport Corp.a	2,722,000		2,096,294
Evergreen Marine Corp.  Ltd.a	9,527,467		5,703,558
U-Ming Marine Transport Corp.	4,083,800		7,754,413
Wan Hai Lines Ltd.a	10,888,433		5,516,783
Yang Ming Marine Transport Corp.	12,249,305		4,315,758
			25,386,806
TOTAL COMMON STOCKS
(Cost: $2,563,051,919)			3,198,722,350
SHORT-TERM INVESTMENTS – 0.11%
MONEY MARKET FUNDS – 0.11%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	3,548,160		3,548,160
			3,548,160
TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,548,160)			3,548,160
TOTAL INVESTMENTS IN SECURITIES – 100.07%
(Cost: $2,566,600,079)			3,202,270,510
Other Assets, Less Liabilities – (0.07)%			(2,167,514)
NET ASSETS – 100.00%		$	3,200,102,996

^a Non-income earning security.

^b Security valued using Level 3 inputs in accordance with management’s fair valuation policy. 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.

38 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.64%
AGRICULTURE – 1.99%
Charoen Pokphand Foods PCL NVDR	11,127,600	$	4,139,407
			4,139,407
AIRLINES – 0.69%
Thai Airways International PCL NVDRa	2,088,900		1,440,403
			1,440,403
AUTO PARTS & EQUIPMENT – 0.10%
Thai Stanley Electric PCL NVDR	59,400		207,491
			207,491
BANKS – 30.92%
Bangkok Bank PCL Foreign	118,800		425,761
Bangkok Bank PCL NVDR	5,494,500		19,359,118
Bank of Ayudhya PCL NVDR	7,553,700		4,683,225
Kasikornbank PCL NVDR	6,613,200		17,300,523
Kiatnakin Bank PCL NVDR	1,029,600		778,466
Krung Thai Bank PCL NVDR	11,800,800		3,568,970
Siam Commercial Bank PCL NVDR	6,078,600		15,442,383
TMB Bank PCL NVDRa	69,151,500		2,739,708
			64,298,154
BUILDING MATERIALS – 4.50%
Dynasty Ceramic PCL NVDR	564,300		571,724
Siam Cement PCL NVDR	1,237,500		8,346,061
TPI Polene PCL NVDRa	1,861,200		436,241
			9,354,026
CHEMICALS – 4.55%
IRPC PCL NVDR	38,590,200		5,135,245
PTT Chemical PCL NVDR	1,504,800		3,629,451
Siamgas and Petrochemicals PCL NVDR	247,500		58,759
Thai Plastic & Chemical PCL NVDR	1,138,500		630,109
			9,453,564
COAL – 4.91%
Banpu PCL NVDR	613,800		10,209,890
			10,209,890

Security	Shares	Value
COMMERCIAL SERVICES – 0.53%
Bangkok Expressway PCL NVDR	1,762,200	$	1,108,537
			1,108,537
COMPUTERS – 0.33%
Cal-Comp Electronics (Thailand) PCL NVDR	7,702,200		698,823
			698,823
DIVERSIFIED FINANCIAL SERVICES – 1.76%
ACL Bank PCL NVDRa	960,300		328,184
Kim Eng Securities (Thailand) PCL NVDR	1,306,800		422,887
Phatra Securities PCL NVDR	504,900		261,116
Thanachart Capital PCL NVDR	2,851,200		1,733,226
TISCO Financial Group PCL NVDR	1,277,100		915,387
			3,660,800
ELECTRIC – 1.52%
Electricity Generating PCL NVDR	356,400		875,775
Glow Energy PCL NVDR	2,277,000		2,289,740
			3,165,515
ELECTRONICS – 1.20%
Delta Electronics (Thailand) PCL NVDR	1,841,400		1,041,409
Hana Microelectronics PCL NVDR	2,227,500		1,448,397
			2,489,806
ENGINEERING & CONSTRUCTION – 0.51%
CH. Karnchang PCL NVDR	1,465,200		237,073
Italian-Thai Development PCL NVDRa	5,772,800		464,408
Sino-Thai Engineering & Construction PCL NVDRa	2,197,800		365,580
			1,067,061
ENTERTAINMENT – 0.24%
Major Cineplex Group PCL NVDR	1,851,300		503,907
			503,907
FOOD – 1.52%
Khon Kaen Sugar Industry PCL NVDR	2,197,800		903,979
Thai Union Frozen Products PCL NVDR	1,613,700		1,683,734
Thai Vegetable Oil PCL NVDR	1,074,880		568,892
			3,156,605

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
HEALTH CARE – SERVICES – 1.11%
Bangkok Chain Hospital PCL NVDR	2,247,300	$	367,017
Bangkok Dusit Medical Services PCL NVDR	1,128,600		839,666
Bumrungrad Hospital PCL NVDR	1,168,200		1,095,243
			2,301,926
HOME BUILDERS – 1.12%
Asian Property Development PCL NVDR	2,712,600		406,910
Land and Houses PCL NVDR	10,701,900		1,925,792
			2,332,702
IRON & STEEL – 1.16%
G J Steel PCL NVDRa	81,318,600		418,091
G Steel PCL NVDRa	22,215,600		228,438
Sahaviriya Steel Industries PCL NVDRa	23,354,100		819,318
Tata Steel (Thailand) PCL NVDRa	9,117,900		482,574
Thainox Stainless PCL NVDRa	9,315,900		462,062
			2,410,483
LODGING – 0.75%
Central Plaza Hotel PCL NVDR	950,400		114,974
Minor International PCL NVDR	4,484,700		1,437,708
			1,552,682
MEDIA – 1.40%
BEC World PCL NVDR	3,801,600		2,644,391
MCOT PCL NVDR	366,300		261,445
			2,905,836
OIL & GAS – 22.86%
Esso (Thailand) PCL NVDR	4,573,800		892,213
PTT Exploration & Production PCL NVDR	4,623,300		18,876,319
PTT PCL NVDR	3,346,200		23,478,554
Thai Oil PCL NVDR	3,286,800		4,299,232
			47,546,318
REAL ESTATE – 2.44%
Amata Corp. PCL NVDR	2,079,000		471,571
Bangkok Land PCL NVDRa	22,086,900		354,032
Hemaraj Land and Development PCL NVDR	18,641,700		445,394
LPN Development PCL NVDR	2,207,700		474,056

Security	Shares	Value
Preuksa Real Estate PCL NVDR	2,207,700	$	1,121,711
Quality Houses PCL NVDR	13,810,500		927,244
Rojana Industrial Park PCL NVDR	1,306,800		371,508
Sansiri PCL NVDR	1,207,800		178,987
Supalai PCL NVDR	1,920,600		371,748
Ticon Industrial Connection PCL NVDR	1,237,500		355,550
			5,071,801
RETAIL – 5.72%
CP All PCL NVDR	8,306,100		5,928,443
Home Product Center PCL NVDR	4,742,100		674,062
PTT Aromatics & Refining PCL NVDR	4,375,800		3,540,077
Robinson Department Store PCL NVDR	1,485,000		467,080
Siam Makro PCL NVDR	475,200		1,279,081
			11,888,743
TELECOMMUNICATIONS – 6.35%
Advanced Info Service PCL NVDR	3,484,800		9,274,532
Samart Corp. PCL NVDR	1,811,700		312,315
Thaicom PCL NVDRa	1,702,800		311,566
Total Access Communication PCL NVDR	1,970,100		2,070,497
True Corp. PCL NVDRa	13,978,800		1,234,480
			13,203,390
TRANSPORTATION – 1.12%
Bangkok Metro PCL NVDRa	10,563,300		233,214
Precious Shipping PCL NVDR	1,623,600		898,590
Regional Container Lines PCL NVDRa	702,900		206,204
Thoresen Thai Agencies PCL NVDR	1,356,330		988,585
			2,326,593
WATER – 0.34%
Thai Tap Water Supply PCL NVDR	5,504,400		709,171
			709,171
TOTAL COMMON STOCKS (Cost: $215,278,580)			207,203,634

40 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

February 28, 2010

Security	Shares	Value
RIGHTS – 0.03%
IRON & STEEL – 0.03%
G J Steel PCL NVDRa,b	12,827,908	$	54,314
			54,314
TOTAL RIGHTS (Cost: $0)			54,314
WARRANTS – 0.00%
REAL ESTATE – 0.00%
Bangkok Land PCL NVDR (Expires 5/2/13)a	1,083,411		3,277
Ticon Industrial Connection PCL Class W3 NVDR (Expires 1/31/14)a,b	79,167		–
Ticon Industrial Connection PCL Class W4 NVDR (Expires 5/22/11)a,b	52,083		2,363
			5,640
TOTAL WARRANTS (Cost: $0)			5,640
SHORT-TERM INVESTMENTS – 0.13%
MONEY MARKET FUNDS – 0.13%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	268,335		268,335
			268,335
TOTAL SHORT-TERM INVESTMENTS (Cost: $268,335)			268,335
TOTAL INVESTMENTS IN SECURITIES – 99.80% (Cost: $215,546,915)			207,531,923
Other Assets, Less Liabilities – 0.20%			407,579
NET ASSETS – 100.00%		$	207,939,502

NVDR – Non-Voting Depositary Receipts

^a Non-income earning security.

^b Security valued using Level 3 inputs in accordance with management’s fair valuation policy. 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 41

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2010

	iShares MSCI
	Australia Index Fund			Hong Kong Index Fund			Japan Small Cap Index Fund			Malaysia Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	2,124,743,398		$	1,957,807,034		$	31,455,491		$	326,072,183
Affiliated issuers (Note 2)		17,102,521			54,864,633			1,146,563			67,677
Total cost of investments	$	2,141,845,919		$	2,012,671,667		$	32,602,054		$	326,139,860
Investments in securities, at fair value
(including securities on loana) (Note 1):
Unaffiliated issuers	$	2,232,750,974		$	1,682,211,195		$	28,855,213		$	566,102,016
Affiliated issuers (Note 2)		17,102,521			54,864,633			1,146,563			67,677
Total fair value of investments		2,249,853,495			1,737,075,828			30,001,776			566,169,693
Foreign currencies, at valueb		3,030,878			2,089,854			4,338			2,152,849
Receivables:
Investment securities sold		5,822,349			–			33,078			785,557
Due from custodian (Note 4)		1,467,810			–			–			–
Dividends and interest		15,264,258			1,098,107			66,330			786,015
Total Assets		2,275,438,790			1,740,263,789			30,105,522			569,894,114
LIABILITIES
Payables:
Investment securities purchased		7,134,889			–			–			748,939
Collateral for securities on loan (Note 5)		16,864,603			54,855,424			1,139,979			–
Capital shares redeemed		34,835			75,842			–			–
Investment advisory fees (Note 2)		904,787			691,615			11,709			233,073
Total Liabilities		24,939,114			55,622,881			1,151,688			982,012
NET ASSETS	$	2,250,499,676		$	1,684,640,908		$	28,953,834		$	568,912,102
Net assets consist of:
Paid-in capital	$	2,244,926,795		$	2,103,656,227		$	31,627,998		$	432,266,283
Distributions in excess of net investment income		(22,355,526	)		(4,663,401	)		(165,088	)		(368,621	)
Undistributed net realized gain (accumulated net realized loss)		(80,189,744	)		(138,757,904	)		89,897			(103,019,384	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		108,118,151			(275,594,014	)		(2,598,973	)		240,033,824
NET ASSETS	$	2,250,499,676		$	1,684,640,908		$	28,953,834		$	568,912,102
Shares outstandingc		101,400,000			109,350,000			700,000			53,250,000
Net asset value per share	$	22.19		$	15.41		$	41.36		$	10.68

^a Securities on loan with values of $15,964,421, $51,640,643, $1,082,582 and $–, respectively. See Note 5.

^b Cost of foreign currencies: $3,005,136, $2,088,467, $4,338 and $2,147,804, respectively.

^c $0.001 par value, number of shares authorized: 627.8 million, 250 million, 500 million and 300 million, respectively.

See notes to financial statements.

42 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)(Continued)

iSHARES^®, INC.

February 28, 2010

	iShares MSCI
	Pacific ex-Japan Index Fund			Singapore Index Fund			South Korea Index Fund			Taiwan Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	3,218,828,765		$	1,443,829,653		$	1,896,853,263		$	2,563,051,919
Affiliated issuers (Note 2)		111,175,145			140,930,048			258,550,316			3,548,160
Total cost of investments	$	3,330,003,910		$	1,584,759,701		$	2,155,403,579		$	2,566,600,079
Investments in securities, at fair value
(including securities on loana) (Note 1):
Unaffiliated issuers	$	3,732,780,135		$	1,450,173,240		$	2,903,738,445		$	3,198,722,350
Affiliated issuers (Note 2)		111,175,145			140,930,048			258,550,316			3,548,160
Total fair value of investments		3,843,955,280			1,591,103,288			3,162,288,761			3,202,270,510
Foreign currencies, at valueb		6,381,793			1,999,308			–			–
Receivables:
Investment securities sold		6,876,877			11,101,141			2,628,273			13,892,308
Dividends and interest		18,161,666			1,026,396			27,272,683			294
Total Assets		3,875,375,616			1,605,230,133			3,192,189,717			3,216,163,112
LIABILITIES
Payables:
Investment securities purchased		6,713,525			11,065,895			2,446,327			–
Collateral for securities on loan (Note 5)		110,865,913			140,083,389			255,291,935			–
Capital shares redeemed		–			–			–			14,090,869
Foreign taxes (Note 1)		–			–			–			442,717
Investment advisory fees (Note 2)		1,413,753			593,179			1,382,956			1,526,530
Total Liabilities		118,993,191			151,742,463			259,121,218			16,060,116
NET ASSETS	$	3,756,382,425		$	1,453,487,670		$	2,933,068,499		$	3,200,102,996
Net assets consist of:
Paid-in capital	$	3,511,598,962		$	1,678,482,972		$	2,962,676,876		$	3,657,607,120
Undistributed (distributions in excess of) net investment income (accumulated net investment loss)		(20,901,391	)		(10,023,152	)		11,346,012			(10,496,061	)
Accumulated net realized loss		(248,392,689	)		(221,307,685	)		(1,048,095,071	)		(1,082,678,494	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		514,077,543			6,335,535			1,007,140,682			635,670,431
NET ASSETS	$	3,756,382,425		$	1,453,487,670		$	2,933,068,499		$	3,200,102,996
Shares outstandingc		93,600,000			132,000,000			64,450,000			272,200,000
Net asset value per share	$	40.13		$	11.01		$	45.51		$	11.76

^a Securities on loan with values of $104,661,901, $130,970,948, $242,537,505 and $–, respectively. See Note 5.

^b Cost of foreign currencies: $6,351,500, $2,006,162, $– and $–, respectively.

^c $0.001 par value, number of shares authorized: 1 billion, 300 million, 200 million and 900 million, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 43

Statements of Assets and Liabilities (Unaudited)(Continued)

iSHARES^®, INC.

February 28, 2010

	iShares MSCI
	Thailand Investable Market Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	215,278,580
Affiliated issuers (Note 2)		268,335
Total cost of investments	$	215,546,915
Investments in securities, at fair value (Note 1):
Unaffiliated issuers	$	207,263,588
Affiliated issuers (Note 2)		268,335
Total fair value of investments		207,531,923
Foreign currency, at valuea		65,682
Receivables:
Investment securities sold		2,341,674
Dividends and interest		302,710
Total Assets		210,241,989
LIABILITIES
Payables:
Investment securities purchased		2,186,690
Capital shares redeemed		12,058
Investment advisory fees (Note 2)		103,739
Total Liabilities		2,302,487
NET ASSETS	$	207,939,502
Net assets consist of:
Paid-in capital	$	206,230,388
Undistributed net investment income		52,437
Undistributed net realized gain		9,670,655
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(8,013,978	)
NET ASSETS	$	207,939,502
Shares outstandingb		4,950,000
Net asset value per share	$	42.01

^a Cost of foreign currency: $65,657.

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

See notes to financial statements.

44 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2010

	iShares MSCI
	Australia Index Fund			Hong Kong Index Fund			Japan Small Cap Index Fund			Malaysia Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	35,254,778		$	21,083,176		$	241,931		$	6,454,684
Interest from affiliated issuers (Note 2)		671			296			4			42
Securities lending income from affiliated issuers (Note 2)		38,361			74,733			10,875			–
Total investment income		35,293,810			21,158,205			252,810			6,454,726
EXPENSES
Investment advisory fees (Note 2)		5,899,478			5,052,064			78,392			1,464,398
Total expenses		5,899,478			5,052,064			78,392			1,464,398
Net investment income		29,394,332			16,106,141			174,418			4,990,328
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(33,871,486	)		(19,980,043	)		(216,504	)		1,311,743
In-kind redemptions		82,031,342			78,835,018			954,731			–
Foreign currency transactions		611,127			(10,514	)		5,011			(43,759	)
Net realized gain		48,770,983			58,844,461			743,238			1,267,984
Net change in unrealized appreciation (depreciation) on:
Investments		99,297,730			84,477,063			(2,792,030	)		44,642,000
Translation of assets and liabilities in foreign currencies		(59,538	)		1,619			(762	)		(1,202	)
Net change in unrealized appreciation (depreciation)		99,238,192			84,478,682			(2,792,792	)		44,640,798
Net realized and unrealized gain (loss)		148,009,175			143,323,143			(2,049,554	)		45,908,782
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	177,403,507		$	159,429,284		$	(1,875,136	)	$	50,899,110

^a Net of foreign withholding tax of $583,820, $–, $18,135 and $33,969, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 45

Statements of Operations (Unaudited)(Continued)

iSHARES^®, INC.

Six months ended February 28, 2010

	iShares MSCI
	Pacific ex-Japan Index Fund			Singapore Index Fund			South Korea Index Fund			Taiwan Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	54,778,413		$	11,710,063		$	26,945,657		$	2,215,258
Interest from unaffiliated issuers		–			–			4,127			114
Interest from affiliated issuers (Note 2)		609			419			1,071			2,240
Securities lending income from affiliated issuers (Note 2)		407,971			1,046,980			1,377,497			–
Total investment income		55,186,993			12,757,462			28,328,352			2,217,612
EXPENSES
Investment advisory fees (Note 2)		9,672,202			3,807,853			8,721,987			10,221,767
Foreign taxes (Note 1)		–			–			56			310,506
Total expenses		9,672,202			3,807,853			8,722,043			10,532,273
Net investment income (loss)		45,514,791			8,949,609			19,606,309			(8,314,661	)
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(35,626,929	)		(27,390,114	)		(21,162,035	)		(23,117,923	)
In-kind redemptions		135,277,041			15,163,938			–			–
Foreign currency transactions		1,218,797			293,897			(13,093	)		26,604
Net realized gain (loss)		100,868,909			(11,932,279	)		(21,175,128	)		(23,091,319	)
Net change in unrealized appreciation (depreciation) on:
Investments		218,292,312			128,899,703			198,348,625			314,529,103
Translation of assets and liabilities in foreign currencies		(157,442	)		(41,807	)		255,636			53,888
Net change in unrealized appreciation (depreciation)		218,134,870			128,857,896			198,604,261			314,582,991
Net realized and unrealized gain		319,003,779			116,925,617			177,429,133			291,491,672
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	364,518,570		$	125,875,226		$	197,035,442		$	283,177,011

^a Net of foreign withholding tax of $794,215, $150,077, $5,162,388 and $467,935, respectively.

See notes to financial statements.

46 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)(Continued)

iSHARES^®, INC.

Six months ended February 28, 2010

	iShares MSCI
	Thailand Investable Market Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	993,870
Interest from affiliated issuers (Note 2)		95
Total investment income		993,965
EXPENSES
Investment advisory fees (Note 2)		619,303
Foreign taxes (Note 1)		25,260
Total expenses		644,563
Net investment income		349,402
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(1,790,602	)
In-kind redemptions		17,179,869
Foreign currency transactions		6,485
Net realized gain		15,395,752
Net change in unrealized appreciation (depreciation) on:
Investments		(7,774,371	)
Translation of assets and liabilities in foreign currencies		626
Net change in unrealized appreciation (depreciation)		(7,773,745	)
Net realized and unrealized gain		7,622,007
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	7,971,409

^a Net of foreign withholding tax of $106,560.

See notes to financial statements.

FINANCIAL STATEMENTS 47

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Australia Index Fund						iShares MSCI Hong Kong Index Fund
	Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	29,394,332		$	38,798,339		$	16,106,141		$	60,124,298
Net realized gain (loss)		48,770,983			(202,818,285	)		58,844,461			(134,562,987	)
Net change in unrealized appreciation (depreciation)		99,238,192			205,661,326			84,478,682			(10,347,626	)
Net increase (decrease) in net assets resulting from operations		177,403,507			41,641,380			159,429,284			(84,786,315	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(64,490,252	)		(36,574,071	)		(25,045,284	)		(63,227,759	)
Total distributions to shareholders		(64,490,252	)		(36,574,071	)		(25,045,284	)		(63,227,759	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		747,513,689			845,682,054			64,051,603			788,711,422
Cost of shares redeemed		(203,603,665	)		(316,165,212	)		(465,571,560	)		(364,104,881	)
Net increase (decrease) in net assets from capital share transactions		543,910,024			529,516,842			(401,519,957	)		424,606,541
INCREASE (DECREASE) IN NET ASSETS		656,823,279			534,584,151			(267,135,957	)		276,592,467
NET ASSETS
Beginning of period		1,593,676,397			1,059,092,246			1,951,776,865			1,675,184,398
End of period	$	2,250,499,676		$	1,593,676,397		$	1,684,640,908		$	1,951,776,865
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(22,355,526	)	$	12,740,394		$	(4,663,401	)	$	4,275,742
SHARES ISSUED AND REDEEMED
Shares sold		32,400,000			53,800,000			4,050,000			61,575,000
Shares redeemed		(9,400,000	)		(19,600,000	)		(30,375,000	)		(31,425,000	)
Net increase (decrease) in shares outstanding		23,000,000			34,200,000			(26,325,000	)		30,150,000

See notes to financial statements.

48 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	174,418		$	433,446		$	4,990,328		$	12,513,392
Net realized gain (loss)		743,238			(1,735,854	)		1,267,984			(15,953,708	)
Net change in unrealized appreciation (depreciation)		(2,792,792	)		2,190,301			44,640,798			36,885,986
Net increase (decrease) in net assets resulting from operations		(1,875,136	)		887,893			50,899,110			33,445,670
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(412,764	)		(458,327	)		(7,264,953	)		(12,659,798	)
Total distributions to shareholders		(412,764	)		(458,327	)		(7,264,953	)		(12,659,798	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		–			14,997,836			54,725,696			162,777,082
Cost of shares redeemed		(4,314,452	)		(14,465,148	)		(42,447,400	)		(143,654,071	)
Net increase (decrease) in net assets from capital share transactions		(4,314,452	)		532,688			12,278,296			19,123,011
INCREASE (DECREASE) IN NET ASSETS		(6,602,352	)		962,254			55,912,453			39,908,883
NET ASSETS
Beginning of period		35,556,186			34,593,932			512,999,649			473,090,766
End of period	$	28,953,834		$	35,556,186		$	568,912,102		$	512,999,649
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(165,088	)	$	73,258		$	(368,621	)	$	1,906,004
SHARES ISSUED AND REDEEMED
Shares sold		–			400,000			4,950,000			19,725,000
Shares redeemed		(100,000	)		(400,000	)		(4,125,000	)		(17,700,000	)
Net increase (decrease) in shares outstanding		(100,000	)		–			825,000			2,025,000

See notes to financial statements.

FINANCIAL STATEMENTS 49

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, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	45,514,791		$	110,427,766		$	8,949,609		$	36,445,821
Net realized gain (loss)		100,868,909			(219,258,973	)		(11,932,279	)		(278,459,331	)
Net change in unrealized appreciation (depreciation)		218,134,870			(61,255,012	)		128,857,896			61,395,602
Net increase (decrease) in net assets resulting from operations		364,518,570			(170,086,219	)		125,875,226			(180,617,908	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(78,637,231	)		(89,338,841	)		(33,618,478	)		(40,706,510	)
Total distributions to shareholders		(78,637,231	)		(89,338,841	)		(33,618,478	)		(40,706,510	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		357,007,662			606,264,055			124,159,403			368,595,441
Cost of shares redeemed		(269,060,195	)		(228,256,529	)		(56,967,053	)		(330,200,942	)
Net increase in net assets from capital share transactions		87,947,467			378,007,526			67,192,350			38,394,499
INCREASE (DECREASE) IN NET ASSETS		373,828,806			118,582,466			159,449,098			(182,929,919	)
NET ASSETS
Beginning of period		3,382,553,619			3,263,971,153			1,294,038,572			1,476,968,491
End of period	$	3,756,382,425		$	3,382,553,619		$	1,453,487,670		$	1,294,038,572
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(20,901,391	)	$	12,221,049		$	(10,023,152	)	$	14,645,717
SHARES ISSUED AND REDEEMED
Shares sold		8,700,000			20,400,000			11,000,000			41,900,000
Shares redeemed		(6,900,000	)		(7,500,000	)		(5,300,000	)		(44,700,000	)
Net increase (decrease) in shares outstanding		1,800,000			12,900,000			5,700,000			(2,800,000	)

See notes to financial statements.

50 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI South Korea Index Fund						iShares MSCI Taiwan Index Fund
	Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009			Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	19,606,309		$	14,014,065		$	(8,314,661	)	$	62,277,852
Net realized loss		(21,175,128	)		(687,272,279	)		(23,091,319	)		(681,314,758	)
Net change in unrealized appreciation (depreciation)		198,604,261			558,333,098			314,582,991			179,235,336
Net increase (decrease) in net assets resulting from operations		197,035,442			(114,925,116	)		283,177,011			(439,801,570	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(7,232,196	)		(19,134,761	)		(57,723,897	)		(105,890,576	)
Total distributions to shareholders		(7,232,196	)		(19,134,761	)		(57,723,897	)		(105,890,576	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		481,968,082			1,407,195,537			100,564,877			1,421,796,026
Cost of shares redeemed		(137,252,840	)		(860,348,791	)		(161,246,311	)		(758,780,360	)
Net increase (decrease) in net assets from capital share transactions		344,715,242			546,846,746			(60,681,434	)		663,015,666
INCREASE IN NET ASSETS		534,518,488			412,786,869			164,771,680			117,323,520
NET ASSETS
Beginning of period		2,398,550,011			1,985,763,142			3,035,331,316			2,918,007,796
End of period	$	2,933,068,499		$	2,398,550,011		$	3,200,102,996		$	3,035,331,316
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	11,346,012		$	(1,028,101	)	$	(10,496,061	)	$	55,542,497
SHARES ISSUED AND REDEEMED
Shares sold		10,350,000			43,400,000			8,200,000			140,800,000
Shares redeemed		(3,000,000	)		(31,900,000	)		(13,400,000	)		(85,600,000	)
Net increase (decrease) in shares outstanding		7,350,000			11,500,000			(5,200,000	)		55,200,000

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Thailand Investable Market Index Fund
	Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	349,402		$	1,585,596
Net realized gain (loss)		15,395,752			(18,721,813	)
Net change in unrealized appreciation (depreciation)		(7,773,745	)		20,815,615
Net increase in net assets resulting from operations		7,971,409			3,679,398
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(839,325	)		(1,466,522	)
Total distributions to shareholders		(839,325	)		(1,466,522	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		205,840,136			57,023,862
Cost of shares redeemed		(99,053,594	)		(23,464,139	)
Net increase in net assets from capital share transactions		106,786,542			33,559,723
INCREASE IN NET ASSETS		113,918,626			35,772,599
NET ASSETS
Beginning of period		94,020,876			58,248,277
End of period	$	207,939,502		$	94,020,876
Undistributed net investment income included in net assets at end of period	$	52,437		$	542,360
SHARES ISSUED AND REDEEMED
Shares sold		4,900,000			1,900,000
Shares redeemed		(2,500,000	)		(850,000	)
Net increase in shares outstanding		2,400,000			1,050,000

See notes to financial statements.

52 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Australia Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	20.33		$	23.96		$	27.62		$	21.59		$	18.28		$	13.56
Income from investment operations:
Net investment incomea		0.30			0.78			0.96			0.89			0.75			0.70
Net realized and unrealized gain (loss)		2.18			(3.47	)		(3.34	)		6.24			3.23			4.60
Total from investment operations		2.48			(2.69	)		(2.38	)		7.13			3.98			5.30
Less distributions from:
Net investment income		(0.62	)		(0.94	)		(1.28	)		(1.10	)		(0.67	)		(0.58	)
Total distributions		(0.62	)		(0.94	)		(1.28	)		(1.10	)		(0.67	)		(0.58	)
Net asset value, end of period	$	22.19		$	20.33		$	23.96		$	27.62		$	21.59		$	18.28
Total return		12.24	%b		(8.91	)%		(9.25	)%		33.97	%		22.35	%		39.58	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,250,500		$	1,593,676		$	1,059,092		$	1,464,112		$	686,407		$	369,355
Ratio of expenses to average net assetsc		0.54	%		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		2.67	%		4.92	%		3.38	%		3.46	%		3.75	%		4.13	%
Portfolio turnover rated		3	%		14	%		10	%		10	%		7	%		17	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 53

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Hong Kong Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	14.39		$	15.87		$	18.30		$	14.20		$	13.01		$	10.91
Income from investment operations:
Net investment incomea		0.13			0.52			0.45			0.47			0.38			0.33
Net realized and unrealized gain (loss)		1.10			(1.46	)		(2.25	)		3.94			1.17			2.04
Total from investment operations		1.23			(0.94	)		(1.80	)		4.41			1.55			2.37
Less distributions from:
Net investment income		(0.21	)		(0.54	)		(0.63	)		(0.31	)		(0.36	)		(0.27	)
Total distributions		(0.21	)		(0.54	)		(0.63	)		(0.31	)		(0.36	)		(0.27	)
Net asset value, end of period	$	15.41		$	14.39		$	15.87		$	18.30		$	14.20		$	13.01
Total return		8.54	%b		(4.77	)%		(10.54	)%		31.44	%		12.20	%		21.96	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,684,641		$	1,951,777		$	1,675,184		$	1,445,309		$	882,712		$	637,985
Ratio of expenses to average net assetsc		0.54	%		0.55	%		0.52	%		0.52	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		1.71	%		4.29	%		2.34	%		2.92	%		2.87	%		2.75	%
Portfolio turnover rated		2	%		9	%		17	%		9	%		10	%		6	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

54 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Japan Small Cap Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Period from Dec. 20, 2007a to Aug. 31, 2008
Net asset value, beginning of period	$	44.45		$	43.24		$	48.85
Income from investment operations:
Net investment incomeb		0.25			0.60			0.29
Net realized and unrealized gain (loss)		(2.75	)		1.29			(5.74	)
Total from investment operations		(2.50	)		1.89			(5.45	)
Less distributions from:
Net investment income		(0.59	)		(0.68	)		(0.16	)
Total distributions		(0.59	)		(0.68	)		(0.16	)
Net asset value, end of period	$	41.36		$	44.45		$	43.24
Total return		(5.59	)%c		4.62	%		(11.19	)%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	28,954		$	35,556		$	34,594
Ratio of expenses to average net assetsd		0.54	%		0.56	%		0.53	%
Ratio of net investment income to average net assetsd		1.19	%		1.59	%		0.93	%
Portfolio turnover ratee		5	%		7	%		7	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 55

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Malaysia Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	9.79		$	9.39		$	10.97		$	7.75		$	7.19		$	6.54
Income from investment operations:
Net investment incomea		0.10			0.28			0.34			0.34			0.26			0.20
Net realized and unrealized gain (loss)		0.93			0.40			(1.31	)		3.08			0.59			0.61
Total from investment operations		1.03			0.68			(0.97	)		3.42			0.85			0.81
Less distributions from:
Net investment income		(0.14	)		(0.28	)		(0.61	)		(0.20	)		(0.29	)		(0.16	)
Total distributions		(0.14	)		(0.28	)		(0.61	)		(0.20	)		(0.29	)		(0.16	)
Net asset value, end of period	$	10.68		$	9.79		$	9.39		$	10.97		$	7.75		$	7.19
Total return		10.67	%b		8.00	%		(9.86	)%		44.64	%		12.35	%		12.39	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	568,912		$	513,000		$	473,091		$	741,440		$	374,334		$	387,575
Ratio of expenses to average net assetsc		0.54	%		0.56	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		1.83	%		3.45	%		2.84	%		3.21	%		3.46	%		2.85	%
Portfolio turnover rated		14	%		52	%		92	%		87	%		60	%		15	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

^d Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2010 and the years ended August 31, 2009, August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 5%, 12%, 16%, 3%, 9% and 9%, respectively. See Note 4.

See notes to financial statements.

56 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Pacific ex-Japan Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a			Year ended Aug. 31, 2005a
Net asset value, beginning of period	$	36.85		$	41.37		$	48.31		$	37.34		$	32.52		$	25.24
Income from investment operations:
Net investment incomeb		0.47			1.38			1.64			1.52			1.28			1.23
Net realized and unrealized gain (loss)		3.61			(4.79	)		(6.01	)		11.18			4.77			7.05
Total from investment operations		4.08			(3.41	)		(4.37	)		12.70			6.05			8.28
Less distributions from:
Net investment income		(0.80	)		(1.11	)		(2.51	)		(1.73	)		(1.23	)		(1.00	)
Net realized gain		–			–			(0.06	)		–			–			–
Total distributions		(0.80	)		(1.11	)		(2.57	)		(1.73	)		(1.23	)		(1.00	)
Net asset value, end of period	$	40.13		$	36.85		$	41.37		$	48.31		$	37.34		$	32.52
Total return		11.10	%c		(7.23	)%		(9.87	)%		34.86	%		19.17	%		33.27	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,756,382		$	3,382,554		$	3,263,971		$	3,536,295		$	2,094,931		$	1,522,107
Ratio of expenses to average net assetsd		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assetsd		2.35	%		4.83	%		3.35	%		3.43	%		3.67	%		4.09	%
Portfolio turnover ratee		3	%		10	%		14	%		11	%		8	%		16	%

^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 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 Singapore Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	10.25		$	11.44		$	13.28		$	9.11		$	7.77		$	6.52
Income from investment operations:
Net investment incomea		0.07			0.32			0.47			0.47			0.40			0.38
Net realized and unrealized gain (loss)		0.95			(1.16	)		(1.67	)		4.01			1.23			1.15
Total from investment operations		1.02			(0.84	)		(1.20	)		4.48			1.63			1.53
Less distributions from:
Net investment income		(0.26	)		(0.35	)		(0.64	)		(0.31	)		(0.29	)		(0.28	)
Total distributions		(0.26	)		(0.35	)		(0.64	)		(0.31	)		(0.29	)		(0.28	)
Net asset value, end of period	$	11.01		$	10.25		$	11.44		$	13.28		$	9.11		$	7.77
Total return		9.86	%b		(5.87	)%		(9.55	)%		49.92	%		21.61	%		24.06	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,453,488		$	1,294,039		$	1,476,968		$	1,669,210		$	574,620		$	341,137
Ratio of expenses to average net assetsc		0.54	%		0.55	%		0.52	%		0.51	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		1.26	%		3.97	%		3.56	%		3.80	%		4.74	%		5.19	%
Portfolio turnover rated		4	%		15	%		16	%		8	%		6	%		8	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

58 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI South Korea Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	42.01		$	43.55		$	63.60		$	46.00		$	34.75		$	24.17
Income from investment operations:
Net investment incomea		0.31			0.30			0.80			0.51			0.31			0.46
Net realized and unrealized gain (loss)		3.30			(1.45	)		(19.87	)		17.42			11.20			10.22
Total from investment operations		3.61			(1.15	)		(19.07	)		17.93			11.51			10.68
Less distributions from:
Net investment income		(0.11	)		(0.39	)		(0.98	)		(0.33	)		(0.26	)		(0.10	)
Total distributions		(0.11	)		(0.39	)		(0.98	)		(0.33	)		(0.26	)		(0.10	)
Net asset value, end of period	$	45.51		$	42.01		$	43.55		$	63.60		$	46.00		$	34.75
Total return		8.63	%b		(2.31	)%		(30.35	)%		39.18	%		33.16	%		44.29	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,933,068		$	2,398,550		$	1,985,763		$	2,429,453		$	1,621,334		$	698,455
Ratio of expenses to average net assetsc		0.61	%		0.65	%		0.63	%		0.68	%		0.70	%		0.74	%
Ratio of expenses to average net assets exclusive of foreign taxesc		0.61	%		0.65	%		0.63	%		0.68	%		0.70	%		0.74	%
Ratio of net investment income to average net assetsc		1.37	%		0.91	%		1.35	%		0.96	%		0.71	%		1.49	%
Portfolio turnover rated		6	%		62	%		42	%		20	%		47	%		30	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

^d Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2010 and the years ended August 31, 2009, August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 1%, 8%, 15%, 6%, 14% and 9%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 59

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Taiwan Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	10.94		$	13.13		$	15.99		$	12.57		$	11.57		$	10.66
Income from investment operations:
Net investment income (loss)a		(0.03	)		0.30			0.54			0.38			0.34			0.27
Net realized and unrealized gain (loss)		1.06			(1.89	)		(3.01	)		3.34			0.80			0.72
Total from investment operations		1.03			(1.59	)		(2.47	)		3.72			1.14			0.99
Less distributions from:
Net investment income		(0.21	)		(0.60	)		(0.39	)		(0.30	)		(0.14	)		(0.08	)
Total distributions		(0.21	)		(0.60	)		(0.39	)		(0.30	)		(0.14	)		(0.08	)
Net asset value, end of period	$	11.76		$	10.94		$	13.13		$	15.99		$	12.57		$	11.57
Total return		9.30	%b		(9.67	)%		(15.69	)%		29.91	%		9.84	%		9.28	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,200,103		$	3,035,331		$	2,918,008		$	2,769,764		$	1,893,751		$	752,640
Ratio of expenses to average net assetsc		0.63	%		0.82	%		0.73	%		0.77	%		0.85	%		1.03	%
Ratio of expenses to average net assets exclusive of foreign taxesc		0.61	%		0.65	%		0.63	%		0.68	%		0.70	%		0.74	%
Ratio of net investment income (loss) to average net assetsc		(0.49	)%		3.18	%		3.54	%		2.61	%		2.74	%		2.34	%
Portfolio turnover rated		4	%		52	%		33	%		35	%		29	%		20	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

^d Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2010 and the years ended August 31, 2009, August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 1%, 14%, 11%, 12%, 10% and 10%, respectively. See Note 4.

See notes to financial statements.

60 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Thailand Investable Market Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Period from Mar. 26, 2008a to Aug. 31, 2008
Net asset value, beginning of period	$	36.87		$	38.83		$	50.03
Income from investment operations:
Net investment incomeb		0.07			1.17			0.32
Net realized and unrealized gain (loss)		5.23			(1.88	)		(11.52	)
Total from investment operations		5.30			(0.71	)		(11.20	)
Less distributions from:
Net investment income		(0.16	)		(1.25	)		–
Total distributions		(0.16	)		(1.25	)		–
Net asset value, end of period	$	42.01		$	36.87		$	38.83
Total return		14.36	%c		(0.33	)%		(22.39	)%c
Ratios/Supplemental data:
Net assets, end of period (000s)	$	207,940		$	94,021		$	58,248
Ratio of expenses to average net assetsd		0.63	%		0.65	%		0.63	%
Ratio of expenses to average net assets exclusive of foreign taxesd		0.61	%		n/a			n/a
Ratio of net investment income to average net assetsd		0.34	%		4.00	%		1.68	%
Portfolio turnover ratee		8	%		15	%		19	%

^a Commencement of operations.

^b Based on average shares outstanding throughout each period.

^c Not annualized.

^d Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 61

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. 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 non-U.S. issuers that may trade in non-U.S. markets. This 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 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”) using a fair value hierarchy that prioritize 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 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 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”);

62 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

• 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”).

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.

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. 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. 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 inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include 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 Level 2 investments 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.

NOTES TO FINANCIAL STATEMENTS 63

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, recent transactions in the same or similar instruments, 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 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.

As of February 28, 2010, the values of each Fund’s investments were classified as Level 1 Prices. The breakdown of each Fund’s investments into major categories is disclosed in its respective Schedule of Investments.

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. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. 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. 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, 2010, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions to shareholders from net investment income, if any, 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.

64 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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, 2010.

The Funds had tax basis net capital loss carryforwards as of August 31, 2009, 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		Expiring 2017		Total
Australia	$	3,625,203	$	650,082	$	596,240	$	384,424	$	–	$	7,066	$	529,868	$	24,006,125	$	29,799,008
Hong Kong		4,971,970		2,870,602		2,330,414		468,716		425,440		2,899,247		3,185,408		29,235,556		46,387,353
Japan Small Cap		–		–		–		–		–		–		–		131,718		131,718
Malaysia		9,819,029		2,898,105		775,477		6,820,474		1,543,708		3,357,786		1,127,892		40,223,530		66,566,001
Pacific ex-Japan		–		–		–		–		–		–		–		66,207,828		66,207,828
Singapore		1,934,119		4,428,316		4,256,421		2,558,348		–		–		807,115		15,680,510		29,664,829
South Korea		666,642		504,041		3,363,449		11,590,303		3,172,573		38,097,223		–		178,889,302		236,283,533
Taiwan		12,532,361		8,689,663		9,129,874		12,022,719		14,435,986		64,999,586		16,734,578		343,375,145		481,919,912
Thailand Investable Market		–		–		–		–		–		–		–		555,444		555,444

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.

NOTES TO FINANCIAL STATEMENTS 65

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

As of February 28, 2010, 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	$	2,261,714,990	$	79,604,199	$	(91,465,694	)	$	(11,861,495	)
Hong Kong		2,051,869,477		–		(314,793,649	)		(314,793,649	)
Japan Small Cap		32,753,324		1,638,192		(4,389,740	)		(2,751,548	)
Malaysia		356,887,855		209,910,445		(628,607	)		209,281,838
Pacific ex-Japan		3,537,186,836		496,234,564		(189,466,120	)		306,768,444
Singapore		1,652,965,113		–		(61,861,825	)		(61,861,825	)
South Korea		2,731,866,610		448,077,541		(17,655,390	)		430,422,151
Taiwan		2,790,017,452		492,166,578		(79,913,520	)		412,253,058
Thailand Investable Market		216,949,889		5,206,312		(14,624,278	)		(9,417,966	)

Management has reviewed the tax positions as of February 28, 2010, 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. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

On December 1, 2009, Barclays PLC (“Barclays”) completed the sale of its interest in BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A., and certain affiliated companies to BlackRock, Inc. (“BlackRock”, and such sale, the “Transaction”). BTC is a wholly-owned subsidiary of BlackRock.

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.

Under the 1940 Act, upon completion of the Transaction on December 1, 2009, each Fund’s investment advisory agreement with BlackRock Fund Advisors (“BFA”), formerly known as Barclays Global Fund Advisors, was automatically terminated. The Board and shareholders of the Funds approved a new investment advisory agreement with BFA. The investment advisory fee rates and expense arrangements for the Funds remained the same after the Transaction.

Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA 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.

66 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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, BFA 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, BFA 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, BFA is entitled to an annual investment advisory fee of 0.50% of the average daily net assets of the Fund.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BTC to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA, the Funds’ investment adviser. As securities lending agent, BTC 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, 2010, BTC earned securities lending agent fees as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees	iShares MSCI Index Fund	Securities Lending Agent Fees
Australia	$27,477	Pacific ex-Japan	$277,389
Hong Kong	48,315	Singapore	723,588
Japan Small Cap	6,938	South Korea	958,098

Cross trades for the six months ended February 28, 2010, 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 BFA (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.

NOTES TO FINANCIAL STATEMENTS 67

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in interest from affiliated issuers in the Statements of Operations.

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2010 were as follows:

iShares MSCI Index Fund	Purchases		Sales
Australia	$	72,051,997	$	101,773,507
Hong Kong		33,868,575		42,348,311
Japan Small Cap		1,440,505		1,708,804
Malaysia		83,231,357		74,713,125
Pacific ex-Japan		125,025,283		145,840,906
Singapore		62,533,280		77,796,900
South Korea		501,288,150		171,464,344
Taiwan		144,128,789		245,270,114
Thailand Investable Market		15,249,069		15,450,209

In-kind transactions (see Note 4) for the six months ended February 28, 2010 were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Australia	$	741,012,594	$	202,890,792
Hong Kong		63,406,059		461,095,500
Japan Small Cap		–		4,304,845
Pacific ex-Japan		353,206,584		267,475,035
Singapore		121,175,616		56,391,714
Thailand Investable Market		205,250,588		98,866,726

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 an optimized 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 Bank and Trust Company, 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.

68 2010 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 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 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 BFA; such reinvestments are subject to investment risk.

As of February 28, 2010, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The market value of the securities on loan as of February 28, 2010 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 BTC as securities lending agent.

6. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

NOTES TO FINANCIAL STATEMENTS 69

Shareholder Meeting Results (Unaudited)

iSHARES^®, INC.

Two separate special meetings of shareholders of iShares, Inc. were held on November 4, 2009. The shareholder meetings for all the Funds except for the iShares MSCI Australia, iShares MSCI Japan Small Cap and iShares MSCI Thailand Investable Market Index Funds, were adjourned until November 19, 2009. The shareholder meetings for the iShares MSCI Pacific ex-Japan and iShares MSCI South Korea Index Funds were further adjourned until November 30, 2009, at which time the shareholders approved the new advisory agreement. The proposals acted upon by shareholders at the special meetings and the results of the shareholder vote were as follows:

First Meeting

Shareholders of the Funds approved Proposals 1 and 2.

Proposal 1

To approve a new investment advisory agreement between the Company and Barclays Global Fund Advisors (“BGFA”), on behalf of each Fund, which took effect upon the consummation of the Barclays PLC binding agreement to sell its interest in BGFA and certain affiliated companies to BlackRock, Inc. (the “Transaction”).

iShares MSCI Index Fund	Votes For	Votes Against	Votes Abstaining	Broker Non- Votes*
Australia	32,767,194	750,970	1,433,200	4,493,342
Hong Kong	64,067,601	747,119	613,136	3,937,283
Japan Small Cap	399,953	34,462	1,138	–
Malaysia	22,880,513	488,528	1,012,641	2,355,775
Pacific ex-Japan	42,898,251	632,446	456,308	2,735,283
Singapore	59,522,740	2,602,832	1,257,920	5,408,148
South Korea	27,678,404	402,147	360,225	1,462,810
Taiwan	132,831,296	639,322	811,459	5,770,002
Thailand Investable Market	1,342,645	13,321	13,384	–

Proposal 2

To approve a change in the classification of certain Funds’ investment objective from a fundamental investment policy to a non-fundamental investment policy.

iShares MSCI Index Fund	Votes For	Votes Against	Votes Abstaining	Broker Non- Votes*
Australia	30,808,518	1,833,250	2,309,596	4,493,342
Hong Kong	61,212,227	2,117,753	2,097,876	3,937,283
Malaysia	22,476,761	803,733	1,101,188	2,355,775
Pacific ex-Japan	39,117,399	4,271,572	598,034	2,735,283
Singapore	56,913,788	3,748,662	2,721,042	5,408,148
South Korea	27,102,604	704,061	634,111	1,462,810
Taiwan	126,783,493	6,060,007	1,438,577	5,770,002

70 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Meeting Results (Unaudited) (Continued)

iSHARES^®, INC.

Second Meeting

This proposal was approved by the shareholders of the Company on November 4, 2009. All nominees who previously served as Directors of the Company were re-elected and the term of their election commenced immediately. Robert S. Kapito was newly elected as a Director to the Company and the term of his election took effect upon the consummation of the Transaction.

Proposal 1**

To elect a Board of Directors of the Company.

Independent Director	Votes For	Votes Withheld
George G.C. Parker	1,597,646,058	46,083,560
J. Darrell Duffie	1,517,311,684	126,417,934
Cecilia H. Herbert	1,599,757,544	43,972,074
Charles A. Hurty	1,599,463,459	44,266,159
John E. Kerrigan	1,599,938,757	43,790,861
John E. Martinez	1,599,890,206	43,839,412
Robert H. Silver	1,601,631,280	42,098,338
Interested Director	Votes For	Votes Withheld
Robert S. Kapito	1,600,119,598	43,610,020
Lee T. Kranefuss	1,117,041,744	526,687,874

* Broker non-votes are proxies received by the Fund from brokers or nominees who did not receive instructions from the beneficial owner or other persons entitled to vote and who have no discretionary power to vote on a particular matter. Broker non-votes have the effect of a vote against the proposal.

** Denotes Company-wide proposal and voting results.

SHAREHOLDER MEETING RESULTS 71

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 Russell Domestic Index Funds	Trading Symbol
iShares Russell 3000	IWV
iShares Russell 3000 Growth	IWZ
iShares Russell 3000 Value	IWW
iShares Russell Top 200	IWL
iShares Russell Top 200 Growth	IWY
iShares Russell Top 200 Value	IWX
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds
iShares Dow Jones U.S.	IYY
iShares KLD Socially Responsible Index Funds
iShares FTSE KLD 400 Social	DSI
iShares FTSE KLD Select Social	KLD
iShares NYSE Domestic Index Funds
iShares NYSE Composite	NYC
iShares NYSE 100	NY
iShares Domestic Specialty Index Funds
iShares S&P U.S. Preferred Stock	PFF
iShares Dow Jones Select Dividend	DVY

iShares North American Sector/Subsector Index Funds	Trading Symbol
iShares S&P North American Technology Sector	IGM
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 Natural Resources Sector	IGE
iShares Domestic Sector Index Funds
iShares Dow Jones U.S. Basic Materials Sector	IYM
iShares Dow Jones U.S. Consumer Goods Sector	IYK
iShares Dow Jones U.S. Consumer Services Sector	IYC
iShares Dow Jones U.S. Energy Sector	IYE
iShares Dow Jones U.S. Financial Sector	IYF
iShares Dow Jones U.S. Healthcare Sector	IYH
iShares Dow Jones U.S. Industrial Sector	IYJ
iShares Dow Jones U.S. Technology Sector	IYW
iShares Dow Jones U.S. Telecommunications Sector	IYZ
iShares Dow Jones U.S. Utilities Sector	IDU
iShares Domestic Subsector Index Funds
iShares Dow Jones Transportation Average	IYT
iShares Dow Jones U.S. Aerospace & Defense	ITA
iShares Dow Jones U.S. Broker-Dealers	IAI
iShares Dow Jones U.S. Financial Services	IYG
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 Nasdaq Biotechnology	IBB
iShares Domestic Real Estate Index Funds
iShares Cohen & Steers Realty Majors	ICF
iShares Dow Jones U.S. Real Estate	IYR
iShares FTSE NAREIT Real Estate 50	FTY
iShares FTSE NAREIT Industrial/Office Capped	FIO
iShares FTSE NAREIT Mortgage Plus Capped	REM
iShares FTSE NAREIT Residential Plus Capped	REZ
iShares FTSE NAREIT Retail Capped	RTL
iShares Target Risk Index Funds
iShares S&P Conservative Allocation	AOK
iShares S&P Moderate Allocation	AOM
iShares S&P Growth Allocation	AOR
iShares S&P Aggressive Allocation	AOA

72 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds (Continued)

iShares International Country Index Funds	Trading Symbol
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 S&P/TOPIX 150	ITF
iShares MSCI Malaysia	EWM
iShares MSCI Mexico Investable Market	EWW
iShares MSCI Netherlands Investable Market	EWN
iShares MSCI All Peru Capped	EPU
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 India Nifty 50	INDY
iShares International Index Funds
iShares MSCI ACWI ex US	ACWX
iShares MSCI EAFE	EFA
iShares MSCI EAFE Growth	EFG
iShares MSCI EAFE Value	EFV
iShares MSCI EAFE Small Cap	SCZ
iShares FTSE Developed Small Cap ex-North America	IFSM
iShares MSCI Emerging Markets	EEM
iShares MSCI Emerging Markets Eastern Europe	ESR
iShares MSCI BRIC	BKF
iShares MSCI EMU	EZU
iShares MSCI All Country Asia ex Japan	AAXJ
iShares MSCI Pacific ex-Japan	EPP
iShares S&P Asia 50	AIA
iShares S&P Europe 350	IEV
iShares S&P Latin America 40	ILF
iShares International/Global Real Estate Index Funds
iShares S&P Developed ex-U.S. Property	WPS
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S	IFGL
iShares FTSE EPRA/NAREIT Developed Asia	IFAS
iShares FTSE EPRA/NAREIT Developed Europe	IFEU
iShares FTSE EPRA/NAREIT North America	IFNA

iShares Target Date Index Funds	Trading Symbol
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 Global Index Funds
iShares MSCI ACWI	ACWI
iShares S&P Global 100	IOO
iShares MSCI Kokusai	TOK
iShares International/Global Sector Index Funds
iShares MSCI ACWI ex US Financials Sector	AXFN
iShares MSCI Emerging Markets Financials Sector	EMFN
iShares MSCI Emerging Markets Materials Sector	EMMT
iShares MSCI Europe Financials Sector	EUFN
iShares MSCI Far East Financials Sector	FEFN
iShares S&P Global Consumer Discretionary Sector	RXI
iShares S&P Global Consumer Staples Sector	KXI
iShares S&P Global Energy Sector	IXC
iShares S&P Global Financials Sector	IXG
iShares S&P Global Healthcare Sector	IXJ
iShares S&P Global Industrials Sector	EXI
iShares S&P Global Materials Sector	MXI
iShares S&P Global Technology Sector	IXN
iShares S&P Global Telecommunications Sector	IXP
iShares S&P Global Utilities Sector	JXI
iShares International/Global Theme Based and Specialty Index Funds
iShares S&P Global Clean Energy	ICLN
iShares S&P Global Infrastructure	IGF
iShares S&P Emerging Markets Infrastructure	EMIF
iShares S&P Global Nuclear Energy	NUCL
iShares S&P Global Timber & Forestry	WOOD
iShares Dow Jones International Select Dividend	IDV
iShares U.S. Multisector Bond Funds
iShares Barclays Aggregate	AGG
iShares Barclays Government/Credit	GBF
iShares Barclays Intermediate Government/Credit	GVI
iShares 10+ Year Government/Credit	GLJ
iShares U.S. Government Bond Funds
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 U.S. Credit Bond Funds
iShares Barclays Credit	CFT
iShares Barclays 1-3 Year Credit	CSJ
iShares Barclays Intermediate Credit	CIU
iShares iBoxx $ Investment Grade Corporate	LQD
iShares 10+ Year Credit	CLY
iShares iBoxx $ High Yield Corporate	HYG

iSHARES FAMILY OF FUNDS 73

The iShares^® Family of Funds (Continued)

iShares AMT-Free Municipal Bond Funds	Trading Symbol
iShares S&P National AMT-Free Municipal	MUB
iShares S&P Short Term National AMT-Free Municipal	SUB
iShares S&P California AMT-Free Municipal	CMF
iShares S&P New York AMT-Free Municipal	NYF
iShares 2012 S&P AMT-Free Municipal Series	MUAA
iShares 2013 S&P AMT-Free Municipal Series	MUAB
iShares 2014 S&P AMT-Free Municipal Series	MUAC
iShares 2015 S&P AMT-Free Municipal Series	MUAD
iShares 2016 S&P AMT-Free Municipal Series	MUAE
iShares 2017 S&P AMT-Free Municipal Series	MUAF

iShares U.S. Securitized Bond Funds	Trading Symbol
iShares Barclays MBS	MBB
iShares International Bond Funds
iShares JPMorgan USD Emerging Markets	EMB
iShares S&P/Citigroup International Treasury	IGOV
iShares S&P/Citigroup 1-3 Year International Treasury	ISHG

The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”). iShares^® is a registered trademark of BlackRock Institutional Trust Company, N.A. The 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., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, 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, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/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.

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 2010 Semi-Annual Report.

iS-2350-0310

74 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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.

Once you have enrolled, you will no longer receive shareholder reports and prospectuses 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 and is available to be viewed or downloaded.

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 notifications sent.

Your information and e-mail 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.

For more information:

WWW.iSHARES.COM

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

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.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by SEI Investments Distribution Co. (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 BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the company listed above.

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 ending 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 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.

©2010 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners.

iShares®

BLACKROCK

iS-5ar-83-0210

2010 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES® MSCI SERIES

FEBRUARY 28, 2010

Would you prefer to receive materials like this electronically?

See inside back cover for details.

iShares MSCI Japan Index Fund | EWJ | NYSE Arca

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
Shareholder Meeting Results	20
iShares Family of Funds	24

Fund Performance Overview

iSHARES^® MSCI JAPAN INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was (1.86)%, while the total return for the Index was (1.53)%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
33.12%	36.76%	34.07%	(0.65)%	(0.67)%	(0.14)%	(3.21)%	(3.30)%	(2.71)%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Ten Years Ended 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
33.12%	36.76%	34.07%	(3.23)%	(3.33)%	(0.71)%	(27.86)%	(28.52)%	(24.03)%

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

PORTFOLIO ALLOCATION As of 2/28/10
Sector	Percentage of Net Assets
Consumer Cyclical	26.15	%
Industrial	21.96
Financial	16.66
Consumer Non-Cyclical	10.77
Basic Materials	6.99
Utilities	6.00
Communications	5.25
Technology	4.94
Energy	1.19
Short-Term and Other Net Assets	0.09
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Toyota Motor Corp.	5.02	%
Mitsubishi UFJ Financial Group Inc.	2.92
Honda Motor Co. Ltd.	2.61
Canon Inc.	2.02
Sumitomo Mitsui Financial Group Inc.	1.88
Takeda Pharmaceutical Co. Ltd.	1.59
Tokyo Electric Power Co. Inc. (The)	1.56
Sony Corp.	1.55
Mitsubishi Corp.	1.46
Nintendo Co. Ltd.	1.37
TOTAL	21.98	%

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, 2009 to February 28, 2010.

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 (9/1/09)	Ending Account Value (2/28/10)	Annualized Expense Ratio		Expenses Paid During  Perioda (9/1/09 to  2/28/10)
Actual	$1,000.00	$    981.40	0.54	%	$2.65
Hypothetical (5% return before expenses)	1,000.00	1,022.10	0.54		2.71

^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 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 99.91%
ADVERTISING – 0.22%
Dentsu Inc.	356,800	$	8,471,817
Hakuhodo DY Holdings Inc.	62,440		3,056,479
			11,528,296
AGRICULTURE – 0.73%
Japan Tobacco Inc.	10,704		38,845,889
			38,845,889
AIRLINES – 0.10%
All Nippon Airways Co. Ltd.	1,786,000		5,406,336
			5,406,336
APPAREL – 0.16%
ASICS Corp.	892,000		8,371,440
			8,371,440
AUTO MANUFACTURERS – 9.64%
Fuji Heavy Industries Ltd.a	1,784,000		8,130,535
Hino Motors Ltd.a	892,000		3,322,478
Honda Motor Co. Ltd.	4,014,000		139,122,489
Isuzu Motors Ltd.a	2,676,000		6,715,220
Mazda Motor Corp.a	3,568,000		9,395,285
Mitsubishi Motors Corp.a,b	8,920,000		12,747,876
Nissan Motor Co. Ltd.a	6,065,600		48,120,722
Suzuki Motor Corp.	892,000		18,961,211
Toyota Motor Corp.	7,136,000		267,404,265
			513,920,081
AUTO PARTS & EQUIPMENT – 2.07%
Aisin Seiki Co. Ltd.	446,200		11,709,204
Bridgestone Corp.	1,427,200		25,021,973
Denso Corp.	1,159,600		31,422,009
JTEKT Corp.	446,000		4,687,605
NGK Spark Plug Co. Ltd.	428,000		5,047,476
NHK Spring Co. Ltd.	892,000		7,367,670
NOK Corp.	267,600		3,731,012
Sumitomo Rubber Industries Inc.	446,000		3,633,646
Toyoda Gosei Co. Ltd.	178,400		4,625,371
Toyota Boshoku Corp.	89,200		1,539,783
Toyota Industries Corp.	446,000		11,719,012
			110,504,761

Security	Shares	Value
BANKS – 9.34%
Aozora Bank Ltd.a	1,784,000	$	2,288,595
Bank of Kyoto Ltd. (The)	892,000		7,729,027
Bank of Yokohama Ltd. (The)	3,568,000		17,867,102
Chiba Bank Ltd. (The)	1,784,000		10,860,789
Chuo Mitsui Trust Holdings Inc.	2,676,000		9,636,190
Fukuoka Financial Group Inc.	1,790,000		6,586,733
Gunma Bank Ltd. (The)	892,000		4,968,660
Hachijuni Bank Ltd. (The)	892,000		4,958,623
Hiroshima Bank Ltd. (The)	892,000		3,693,873
Hokuhoku Financial Group Inc.	3,573,000		7,518,719
Iyo Bank Ltd. (The)	892,000		7,939,819
Joyo Bank Ltd. (The)	1,784,000		7,166,916
Mitsubishi UFJ Financial Group Inc.	30,774,080		155,489,359
Mizuho Financial Group Inc.	33,806,800		65,433,743
Mizuho Trust & Banking Co.  Ltd.a	4,460,000		4,316,210
Nishi-Nippon City Bank Ltd. (The)	1,784,000		4,818,095
Resona Holdings Inc.	1,159,600		14,014,633
Sapporo Hokuyo Holdings Inc.	895,000		3,927,868
Senshu Ikeda Holdings Inc.a,b	1,159,600		2,831,635
Seven Bank Ltd.	1,784		3,705,918
77 Bank Ltd. (The)	892,000		4,858,247
Shinsei Bank Ltd.a,b	2,676,000		3,011,309
Shizuoka Bank Ltd. (The)	1,784,000		15,799,336
Sumitomo Mitsui Financial Group Inc.	3,122,000		100,336,826
Sumitomo Trust and Banking Co. Ltd. (The)	3,568,000		20,155,697
Suruga Bank Ltd.	892,000		8,180,723
			498,094,645
BEVERAGES – 0.98%
Asahi Breweries Ltd.	892,000		17,104,237
Coca-Cola West Co. Ltd.	178,400		2,918,963
ITO EN Ltd.	178,400		2,736,276
Kirin Holdings Co. Ltd.	1,784,000		24,612,435
Sapporo Holdings Ltd.	892,000		4,607,303
			51,979,214

SCHEDULE OF INVESTMENTS 3

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2010

Security	Shares	Value
BUILDING MATERIALS – 1.53%
Asahi Glass Co. Ltd.	2,676,000	$	26,710,314
Daikin Industries Ltd.	535,200		20,597,356
JS Group Corp.	624,400		12,303,206
Nippon Sheet Glass Co. Ltd.	1,784,000		4,777,944
Panasonic Electric Works Co. Ltd.	892,000		10,399,055
Rinnai Corp.	89,200		4,707,680
Taiheiyo Cement Corp.a	1,784,000		2,328,746
			81,824,301
CHEMICALS – 3.40%
Asahi Kasei Corp.	2,676,000		13,942,362
Daicel Chemical Industries Ltd.	892,000		5,972,430
Denki Kagaku Kogyo K.K.	892,000		3,603,533
Hitachi Chemical Co. Ltd.	267,600		5,480,583
JSR Corp.	446,000		8,732,797
Kaneka Corp.	892,000		5,319,980
Mitsubishi Chemical Holdings Corp.	3,122,000		14,158,173
Mitsubishi Gas Chemical Co. Inc.	892,000		4,818,095
Mitsui Chemicals Inc.	1,784,000		4,898,397
Nitto Denko Corp.	446,000		16,436,730
Shin-Etsu Chemical Co. Ltd.	981,200		52,778,214
Showa Denko K.K.	3,568,000		7,227,142
Sumitomo Chemical Co. Ltd.	3,568,000		15,819,412
Taiyo Nippon Sanso Corp.	892,000		8,110,460
Tokuyama Corp.	892,000		4,757,869
Tosoh Corp.	892,000		2,138,030
Ube Industries Ltd.	2,676,000		6,956,125
			181,150,332
COMMERCIAL SERVICES – 1.07%
Benesse Holdings Inc.	178,400		8,010,083
Dai Nippon Printing Co. Ltd.	1,784,000		23,588,589
Kamigumi Co. Ltd.	892,000		6,956,125
Nissha Printing Co. Ltd.	89,200		3,156,856
Toppan Printing Co. Ltd.	1,786,000		15,515,580
			57,227,233
COMPUTERS – 0.94%
Fujitsu Ltd.	4,460,000		28,958,757
Itochu Techno-Solutions Corp.	89,200		2,840,668

Security	Shares	Value
OBIC Co. Ltd.	8,920	$	1,561,866
TDK Corp.	267,600		16,501,975
			49,863,266
COSMETICS & PERSONAL CARE – 1.17%
Kao Corp.	1,338,000		34,208,473
Shiseido Co. Ltd.	892,000		19,764,226
Unicharm Corp.	89,200		8,552,118
			62,524,817
DISTRIBUTION & WHOLESALE – 4.59%
Canon Marketing Japan Inc.	89,200		1,183,444
Hitachi High-Technologies Corp.	89,200		1,825,857
ITOCHU Corp.	3,568,000		28,747,966
Marubeni Corp.	4,460,000		26,650,087
Mitsubishi Corp.	3,122,000		77,992,911
Mitsui & Co. Ltd.	4,192,400		65,057,330
Sojitz Corp.	2,943,600		5,233,656
Sumitomo Corp.	2,765,200		30,121,123
Toyota Tsusho Corp.	535,300		7,686,297
			244,498,671
DIVERSIFIED FINANCIAL SERVICES – 2.21%
Acom Co. Ltd.b	107,048		1,539,496
AEON Credit Service Co. Ltd.	178,470		1,827,578
Daiwa Securities Group Inc.	4,460,000		22,032,746
Mitsubishi UFJ Lease & Finance Co. Ltd.	142,720		4,930,517
Mizuho Securities Co. Ltd.	892,000		2,639,914
Nomura Holdings Inc.	8,830,800		65,188,823
ORIX Corp.	258,680		19,852,558
			118,011,632
ELECTRIC – 5.10%
Chubu Electric Power Co. Inc.	1,605,600		42,549,800
Chugoku Electric Power Co. Inc. (The)	624,500		13,036,038
Electric Power Development Co. Ltd.	356,800		11,944,860
Hokkaido Electric Power Co. Inc.	446,000		8,828,155
Hokuriku Electric Power Co.	446,000		10,067,811
Kansai Electric Power Co. Inc. (The)	1,873,200		44,350,563
Kyushu Electric Power Co. Inc.	981,200		22,038,769
Shikoku Electric Power Co. Inc.	446,000		12,798,065

4 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2010

Security	Shares	Value
Tohoku Electric Power Co. Inc.	1,070,400	$	23,283,443
Tokyo Electric Power Co. Inc. (The)	3,032,800		83,238,611
			272,136,115
ELECTRICAL COMPONENTS & EQUIPMENT – 4.03%
Brother Industries Ltd.	535,200		6,094,890
Casio Computer Co. Ltd.	535,200		4,011,064
Furukawa Electric Co. Ltd.	1,784,000		8,632,420
GS Yuasa Corp.b	892,000		6,243,448
Hitachi Ltd.a	10,704,000		35,292,545
Mitsubishi Electric Corp.a	4,460,000		36,587,408
SANYO Electric Co. Ltd.a,b	4,396,000		7,420,244
Sharp Corp.	2,676,000		31,016,485
Stanley Electric Co. Ltd.	358,000		6,574,647
Sumitomo Electric Industries Ltd.	1,605,600		19,296,470
Toshiba Corp.a	9,812,000		49,134,530
Ushio Inc.	267,600		4,333,274
			214,637,425
ELECTRONICS – 5.31%
Advantest Corp.	356,800		8,475,832
Fanuc Ltd.	446,000		43,563,608
Hirose Electric Co. Ltd.	89,200		9,485,625
Hoya Corp.	981,200		24,578,307
IBIDEN Co. Ltd.	267,600		9,012,849
Keyence Corp.	89,251		19,594,745
Kyocera Corp.	356,800		31,759,275
Mabuchi Motor Co. Ltd.	89,200		4,868,283
Minebea Co. Ltd.	892,000		4,868,283
Mitsumi Electric Co. Ltd.	178,400		3,400,772
Murata Manufacturing Co. Ltd.	535,200		28,366,534
NEC Corp.a	6,244,000		17,355,179
NGK Insulators Ltd.	892,000		19,242,266
Nippon Electric Glass Co. Ltd.	892,500		11,589,996
Omron Corp.	535,200		11,659,790
Secom Co. Ltd.	535,200		24,572,284
Yaskawa Electric Corp.	892,000		7,046,464
Yokogawa Electric Corp.	446,000		3,668,778
			283,108,870
ENGINEERING & CONSTRUCTION – 0.76%
JGC Corp.	892,000		16,762,955
Kajima Corp.	1,784,000		4,175,682

Security	Shares	Value
Obayashi Corp.	1,784,000	$	6,905,936
Shimizu Corp.	1,784,000		6,905,936
Taisei Corp.	2,676,000		5,540,809
			40,291,318
ENTERTAINMENT – 0.32%
Oriental Land Co. Ltd.	178,400		12,767,951
Toho Co. Ltd.	267,600		4,375,432
			17,143,383
ENVIRONMENTAL CONTROL – 0.14%
Kurita Water Industries Ltd.	267,600		7,371,685
			7,371,685
FOOD – 1.21%
Ajinomoto Co. Inc.	1,784,000		18,168,233
Kikkoman Corp.	892,000		10,589,771
Meiji Holdings Co. Ltd.a	178,428		7,168,041
Nippon Meat Packers Inc.	892,000		10,910,977
Nisshin Seifun Group Inc.	448,000		5,913,509
Nissin Foods Holdings Co. Ltd.	178,400		6,173,184
Yakult Honsha Co. Ltd.	178,400		5,424,372
			64,348,087
FOREST PRODUCTS & PAPER – 0.27%
Nippon Paper Group Inc.	268,500		6,855,640
Oji Paper Co. Ltd.	1,784,000		7,628,650
			14,484,290
GAS – 0.90%
Osaka Gas Co. Ltd.	4,460,000		16,160,693
Toho Gas Co. Ltd.	892,000		4,878,321
Tokyo Gas Co. Ltd.	6,244,000		27,192,123
			48,231,137
HAND & MACHINE TOOLS – 1.20%
Fuji Electric Holdings Co. Ltd.a	892,000		2,087,841
Makita Corp.	267,600		8,567,175
Nidec Corp.	267,600		25,987,599
SMC Corp.	178,400		22,263,613
THK Co. Ltd.	268,200		5,194,083
			64,100,311
HEALTH CARE – PRODUCTS – 0.55%
Sysmex Corp.	89,200		5,299,904
Terumo Corp.	446,000		24,190,851
			29,490,755

SCHEDULE OF INVESTMENTS 5

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2010

Security	Shares	Value
HOME BUILDERS – 0.45%
Daiwa House Industry Co. Ltd.	892,000	$	9,555,888
Sekisui Chemical Co. Ltd.	892,000		5,902,166
Sekisui House Ltd.	892,000		8,712,722
			24,170,776
HOME FURNISHINGS – 2.86%
Panasonic Corp.	4,727,615		65,701,958
Sony Corp.	2,408,400		82,660,440
Yamaha Corp.	356,800		4,223,863
			152,586,261
HOUSEWARES – 0.11%
TOTO Ltd.	892,000		5,932,279
			5,932,279
INSURANCE – 2.33%
Aioi Insurance Co. Ltd.	892,000		4,366,398
Mitsui Sumitomo Insurance Group Holdings Inc.	1,070,400		27,451,095
Nipponkoa Insurance Co. Ltd.	1,784,000		10,941,090
Sompo Japan Insurance Inc.	1,784,000		12,346,368
Sony Financial Holdings Inc.	1,784		5,195,512
T&D Holdings Inc.	624,400		13,483,639
Tokio Marine Holdings Inc.	1,784,000		50,288,865
			124,072,967
INTERNET – 1.91%
Dena Co. Ltd.	892		6,926,011
Matsui Securities Co. Ltd.b	356,800		2,392,987
Rakuten Inc.	17,840		13,751,646
SBI Holdings Inc.	41,924		7,482,301
SoftBank Corp.	1,873,200		49,051,217
Trend Micro Inc.	267,600		9,229,663
Yahoo! Japan Corp.	34,788		13,016,384
			101,850,209
IRON & STEEL – 2.61%
Daido Steel Co. Ltd.	892,000		3,513,194
JFE Holdings Inc.	1,248,850		46,446,287
Kobe Steel Ltd.a	6,244,000		11,382,749
Nippon Steel Corp.	12,488,000		46,655,219
Nisshin Steel Co. Ltd.	1,784,000		3,292,365
Sumitomo Metal Industries Ltd.	8,028,000		22,133,123
Tokyo Steel Manufacturing Co. Ltd.	268,200		2,966,754

Security	Shares	Value
Yamato Kogyo Co. Ltd.	89,200	$	2,817,582
			139,207,273
LEISURE TIME – 0.62%
Namco Bandai Holdings Inc.	446,098		4,136,440
Sankyo Co. Ltd.	178,400		8,612,344
Sega Sammy Holdings Inc.	446,000		5,505,677
Shimano Inc.	178,400		7,769,178
Yamaha Motor Co. Ltd.a	535,200		7,112,713
			33,136,352
MACHINERY – 0.30%
Hitachi Construction Machinery Co. Ltd.	270,600		5,538,979
Japan Steel Works Ltd. (The)	892,000		10,208,339
			15,747,318
MACHINERY – CONSTRUCTION & MINING – 0.87%
Komatsu Ltd.	2,319,200		46,558,857
			46,558,857
MACHINERY – DIVERSIFIED – 0.74%
Amada Co. Ltd.	892,000		6,685,106
Kubota Corp.	2,676,000		23,548,438
Sumitomo Heavy Industries  Ltd.a	1,784,000		9,234,682
			39,468,226
MANUFACTURING – 2.35%
FUJIFILM Holdings Corp.	1,159,600		36,876,494
IHI Corp.a	2,676,000		4,787,982
Kawasaki Heavy Industries Ltd.	3,568,000		9,234,682
Konica Minolta Holdings Inc.	1,338,000		13,836,966
Mitsubishi Heavy Industries Ltd.	7,136,000		26,499,522
Nikon Corp.	802,800		17,661,329
Olympus Corp.	535,200		16,526,065
			125,423,040
MEDIA – 0.14%
Fuji Media Holdings Inc.	853		1,183,536
Jupiter Telecommunications Co. Ltd.b	5,352		6,275,568
			7,459,104
METAL FABRICATE & HARDWARE – 0.22%
Maruichi Steel Tube Ltd.	89,200		1,767,639
NSK Ltd.	892,000		6,283,599
NTN Corp.	892,000		3,703,911
			11,755,149

6 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2010

Security	Shares	Value
MINING – 0.71%
Dowa Holdings Co. Ltd.	924,200	$	5,220,823
Mitsubishi Materials Corp.a	2,676,000		6,926,011
Mitsui Mining & Smelting Co. Ltd.a	1,784,000		4,898,397
Sumitomo Metal Mining Co. Ltd.	1,466,000		20,819,130
			37,864,361
OFFICE & BUSINESS EQUIPMENT – 2.60%
Canon Inc.	2,586,850		107,561,028
Ricoh Co. Ltd.	1,784,000		24,752,963
Seiko Epson Corp.	356,800		6,038,679
			138,352,670
OIL & GAS – 1.19%
Cosmo Oil Co. Ltd.	1,784,000		4,235,908
Idemitsu Kosan Co. Ltd.	89,200		6,544,579
INPEX Corp.	1,784		13,049,007
Japan Petroleum Exploration Co. Ltd.	89,200		4,266,022
Nippon Mining Holdings Inc.	2,230,000		11,116,750
Nippon Oil Corp.	2,676,500		14,336,510
Showa Shell Sekiyu K.K.	356,800		2,525,485
TonenGeneral Sekiyu K.K.	892,000		7,277,331
			63,351,592
PACKAGING & CONTAINERS – 0.11%
Toyo Seikan Kaisha Ltd.	356,800		5,829,895
			5,829,895
PHARMACEUTICALS – 5.06%
Alfresa Holdings Corp.	89,200		3,688,854
Astellas Pharma Inc.	1,159,630		43,650,057
Chugai Pharmaceutical Co. Ltd.	535,200		10,328,791
Daiichi Sankyo Co. Ltd.	1,605,669		32,487,401
Dainippon Sumitomo Pharma Co. Ltd.	356,800		3,493,119
Eisai Co. Ltd.	624,400		24,346,435
Hisamitsu Pharmaceutical Co. Inc.	89,200		3,257,233
Kyowa Hakko Kirin Co. Ltd.	892,000		9,244,720
Medipal Holdings Corp.	356,800		4,219,848
Mitsubishi Tanabe Pharma Corp.	892,000		13,159,421
Ono Pharmaceutical Co. Ltd.	178,400		8,230,912
Santen Pharmaceutical Co. Ltd.	178,400		5,731,525

Security	Shares	Value
Shionogi & Co. Ltd.	713,600	$	14,574,737
Suzuken Co. Ltd.	178,400		5,902,166
Takeda Pharmaceutical Co. Ltd.	1,873,200		84,843,639
Tsumura & Co.	90,000		2,763,855
			269,922,713
REAL ESTATE – 2.20%
AEON Mall Co. Ltd.	267,600		4,878,321
Daito Trust Construction Co. Ltd.	178,400		8,722,759
Mitsubishi Estate Co. Ltd.	2,676,000		42,007,765
Mitsui Fudosan Co. Ltd.	1,890,000		31,902,324
Nomura Real Estate Holdings Inc.	267,600		3,999,019
NTT Urban Development Corp.	4,460		3,553,345
Sumitomo Realty & Development Co. Ltd.	892,000		15,839,487
Tokyo Tatemono Co. Ltd.	892,000		3,141,799
Tokyu Land Corp.	892,000		3,222,101
			117,266,920
REAL ESTATE INVESTMENT TRUSTS – 0.54%
Japan Prime Realty Investment Corp.b	1,784		3,930,762
Japan Real Estate Investment Corp.	892		7,698,914
Japan Retail Fund Investment Corp.	3,568		4,231,893
Nippon Building Fund Inc.	892		7,899,668
Nomura Real Estate Office Fund Inc.	892		5,229,641
			28,990,878
RETAIL – 2.99%
ABC-Mart Inc.	89,200		2,946,064
AEON Co. Ltd.	1,516,400		15,596,574
Citizen Holdings Co. Ltd.	624,400		3,983,962
FamilyMart Co. Ltd.	178,400		5,715,465
Fast Retailing Co. Ltd.	89,200		15,056,547
Isetan Mitsukoshi Holdings Ltd.b	892,060		9,405,955
J. Front Retailing Co. Ltd.	892,000		4,958,623
Lawson Inc.	178,400		7,799,291
Marui Group Co. Ltd.	535,200		3,637,662

SCHEDULE OF INVESTMENTS 7

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2010

Security	Shares	Value
McDonald’s Holdings Co. (Japan) Ltd.	178,400	$	3,619,594
Nitori Co. Ltd.	89,200		7,146,841
Seven & I Holdings Co. Ltd.	1,873,280		42,244,451
Shimamura Co. Ltd.	89,200		7,769,178
Takashimaya Co. Ltd.	892,000		6,885,860
UNY Co. Ltd.	446,000		3,498,138
USS Co. Ltd.	62,440		4,047,200
Yamada Denki Co. Ltd.	214,080		14,936,094
			159,247,499
SEMICONDUCTORS – 1.15%
Elpida Memory Inc.a	446,000		7,974,951
Rohm Co. Ltd.	268,000		18,305,970
Shinko Electric Industries Co. Ltd.	178,400		2,585,711
Sumco Corp.a	267,600		4,851,219
Tokyo Electron Ltd.	446,052		27,556,692
			61,274,543
SHIPBUILDING – 0.08%
Mitsui Engineering & Shipbuilding Co. Ltd.	1,784,000		4,215,833
			4,215,833
SOFTWARE – 0.25%
Konami Corp.	178,400		3,344,561
Nomura Research Institute Ltd.	178,400		3,912,695
Oracle Corp. (Japan)	89,200		4,130,513
Square Enix Holdings Co. Ltd.	89,200		1,791,729
			13,179,498
STORAGE & WAREHOUSING – 0.07%
Mitsubishi Logistics Corp.	319,000		3,693,816
			3,693,816
TELECOMMUNICATIONS – 2.98%
KDDI Corp.	7,136		38,062,949
Nippon Telegraph and Telephone Corp.	1,248,800		54,384,246
NTT Data Corp.	2,676		8,308,202
NTT DoCoMo Inc.	37,464		57,925,545
			158,680,942

Security	Shares	Value
TEXTILES – 0.80%
Kuraray Co. Ltd.	892,000	$	11,442,976
Mitsubishi Rayon Co. Ltd.	892,000		3,784,212
Teijin Ltd.	2,676,000		7,859,517
Toray Industries Inc.	3,568,000		19,673,888
			42,760,593
TOYS, GAMES & HOBBIES – 1.37%
Nintendo Co. Ltd.	267,600		72,783,346
			72,783,346
TRANSPORTATION – 4.32%
Central Japan Railway Co.	3,568		27,021,482
East Japan Railway Co.	802,800		55,287,639
Hankyu Hanshin Holdings Inc.	2,681,800		12,886,160
Kawasaki Kisen Kaisha  Ltd.a,b	1,784,000		6,464,277
Keihin Electric Express Railway Co. Ltd.	896,000		7,340,212
Keio Corp.	1,784,000		11,924,785
Kintetsu Corp.b	4,464,000		14,115,614
Mitsui O.S.K. Lines Ltd.	2,676,000		17,254,802
Nippon Express Co. Ltd.	1,784,000		7,347,595
Nippon Yusen K.K.	3,568,000		12,928,555
Odakyu Electric Railway Co. Ltd.	892,000		7,578,462
Tobu Railway Co. Ltd.	1,784,000		9,796,793
Tokyu Corp.	2,676,000		11,352,636
West Japan Railway Co.	4,460		15,683,902
Yamato Holdings Co. Ltd.	981,200		13,073,097
			230,056,011
VENTURE CAPITAL – 0.04%
JAFCO Co. Ltd.	89,200		2,097,879
			2,097,879
TOTAL COMMON STOCKS (Cost: $6,711,610,739)			5,326,031,090

8 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2010

Security	Shares	Value
SHORT-TERM INVESTMENTS – 0.78%
MONEY MARKET FUNDS – 0.78%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e	34,583,270	$	34,583,270
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e	5,557,902		5,557,902
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d	1,250,242		1,250,242
			41,391,414
TOTAL SHORT-TERM INVESTMENTS
(Cost: $41,391,414)			41,391,414
TOTAL INVESTMENTS IN SECURITIES – 100.69%
(Cost: $6,753,002,153)			5,367,422,504
Other Assets, Less Liabilities – (0.69)%			(36,557,341	)
NET ASSETS – 100.00%		$	5,330,865,163

^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.

SCHEDULE OF INVESTMENTS 9

Statement of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2010

	iShares MSCI Japan Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	6,711,610,739
Affiliated issuers (Note 2)		41,391,414
Total cost of investments	$	6,753,002,153
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	5,326,031,090
Affiliated issuers (Note 2)		41,391,414
Total fair value of investments		5,367,422,504
Foreign currency, at valueb		777,792
Receivables:
Dividends and interest		5,006,993
Total Assets		5,373,207,289
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		40,141,172
Capital shares redeemed		59,582
Investment advisory fees (Note 2)		2,141,372
Total Liabilities		42,342,126
NET ASSETS	$	5,330,865,163
Net assets consist of:
Paid-in capital	$	7,257,902,587
Distributions in excess of net investment income		(6,283,592	)
Accumulated net realized loss		(535,309,226	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(1,385,444,606	)
NET ASSETS	$	5,330,865,163
Shares outstandingc		535,200,000
Net asset value per share	$	9.96

^a Securities on loan with a value of $37,959,298. See Note 5.

^b Cost of foreign currency: $774,962.

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

See notes to financial statements.

10 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2010

	iShares MSCI Japan Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	38,459,970
Interest from affiliated issuers (Note 2)		688
Securities lending income from affiliated issuers (Note 2)		364,045
Total investment income		38,824,703
EXPENSES
Investment advisory fees (Note 2)		13,740,755
Total expenses		13,740,755
Net investment income		25,083,948
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(130,940,250	)
In-kind redemptions		180,435,765
Foreign currency transactions		1,032,302
Net realized gain		50,527,817
Net change in unrealized appreciation (depreciation) on:
Investments		(195,559,577	)
Translation of assets and liabilities in foreign currencies		(28,073	)
Net change in unrealized appreciation (depreciation)		(195,587,650	)
Net realized and unrealized loss		(145,059,833	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(119,975,885	)

^a Net of foreign withholding tax of $2,892,615.

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, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	25,083,948		$	78,031,066
Net realized gain (loss)		50,527,817			(471,304,985	)
Net change in unrealized appreciation (depreciation)		(195,587,650	)		(579,533,927	)
Net decrease in net assets resulting from operations		(119,975,885	)		(972,807,846	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(42,652,704	)		(73,264,843	)
Total distributions to shareholders		(42,652,704	)		(73,264,843	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,116,677,510			2,197,765,511
Cost of shares redeemed		(1,787,353,999	)		(2,487,058,899	)
Net decrease in net assets from capital share transactions		(670,676,489	)		(289,293,388	)
DECREASE IN NET ASSETS		(833,305,078	)		(1,335,366,077	)
NET ASSETS
Beginning of period		6,164,170,241			7,499,536,318
End of period	$	5,330,865,163		$	6,164,170,241
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(6,283,592	)	$	11,285,164
SHARES ISSUED AND REDEEMED
Shares sold		111,600,000			239,400,000
Shares redeemed		(178,200,000	)		(283,200,000	)
Net decrease in shares outstanding		(66,600,000	)		(43,800,000	)

See notes to financial statements.

12 2010 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, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006			Year ended Aug. 31, 2005
Net asset value, beginning of period	$	10.24		$	11.62		$	14.07		$	13.80		$	10.99		$	9.89
Income from investment operations:
Net investment incomea		0.05			0.13			0.14			0.10			0.06			0.06
Net realized and unrealized gain (loss)		(0.24	)		(1.39	)		(2.39	)		0.27			2.81			1.08
Total from investment operations		(0.19	)		(1.26	)		(2.25	)		0.37			2.87			1.14
Less distributions from:
Net investment income		(0.09	)		(0.12	)		(0.20	)		(0.10	)		(0.06	)		(0.04	)
Total distributions		(0.09	)		(0.12	)		(0.20	)		(0.10	)		(0.06	)		(0.04	)
Net asset value, end of period	$	9.96		$	10.24		$	11.62		$	14.07		$	13.80		$	10.99
Total return		(1.86	)%b		(10.68	)%		(16.13	)%		2.68	%		26.10	%		11.58	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	5,330,865		$	6,164,170		$	7,499,536		$	11,780,006		$	13,724,590		$	7,248,107
Ratio of expenses to average net assetsc		0.54	%		0.56	%		0.52	%		0.52	%		0.54	%		0.57	%
Ratio of net investment income to average net assetsc		0.98	%		1.46	%		1.11	%		0.68	%		0.48	%		0.59	%
Portfolio turnover rated		3	%		4	%		4	%		3	%		8	%		6	%

^a Based on average shares outstanding throughout each period.

^b Not annualized.

^c Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 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. 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 non-U.S. issuers of a single country. This 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”) using 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 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 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”);

14 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

• 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”).

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.

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. 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. 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 inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include 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 Level 2 investments 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, recent transactions in the same or similar instruments, 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 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.

NOTES TO FINANCIAL STATEMENTS 15

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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, 2010, the value of each of the Fund’s investments was classified as a Level 1 Price. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments.

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. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Fund may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. 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. 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, 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, 2010.

16 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

As of August 31, 2009, the tax year-end of the Fund, the Fund had tax basis net capital loss carryforwards of $62,572,173, $3,621,148, $5,594,562, $8,733,802, $68,122,871, $27,817,841, $44,443,527 and $116,295,478 expiring in 2010, 2011, 2012, 2013, 2014, 2015, 2016 and 2017, 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, 2010, the cost of investments for federal income tax purposes was $6,830,414,820. Net unrealized depreciation was $1,462,992,316, of which $47,843,115 represented gross unrealized appreciation on securities and $1,510,835,431 represented gross unrealized depreciation on securities.

Management has reviewed the tax positions as of February 28, 2010, 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. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

On December 1, 2009, Barclays PLC (“Barclays”) completed the sale of its interest in BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A., and certain affiliated companies to BlackRock, Inc. (“BlackRock”, and such sale, the “Transaction”). BTC is a wholly-owned subsidiary of BlackRock.

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.

Under the 1940 Act, upon completion of the Transaction on December 1, 2009, the Fund’s investment advisory agreement with BlackRock Fund Advisors (“BFA”), formerly known as Barclays Global Fund Advisors, was automatically terminated. The Board and shareholders of the Fund approved a new investment advisory agreement with BFA. The investment advisory fee rates and expense arrangements for the Fund remained the same after the Transaction.

Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA 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 17

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

For its investment advisory services to the Fund, BFA 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

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BTC to serve as securities lending agent for the Fund, subject to applicable conditions. BTC is an affiliate of BFA, the Fund’s investment adviser. As securities lending agent, BTC 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, 2010, BTC earned securities lending agent fees of $267,314.

The Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in interest from affiliated issuers in the Statement of Operations.

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2010 aggregated $149,289,658 and $171,957,454, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 28, 2010 aggregated $1,105,611,385 and $1,767,688,077, 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 an optimized representation of the securities involved in the Fund’s underlying 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 Bank and Trust Company, 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

18 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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 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 BFA; such reinvestments are subject to investment risk.

As of February 28, 2010, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The market value of the securities on loan as of February 28, 2010 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 BTC as securities lending agent.

6. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

NOTES TO FINANCIAL STATEMENTS 19

Shareholder Meeting Results (Unaudited)

iSHARES^®, INC.

Two separate special meetings of shareholders of iShares, Inc. were held on November 4, 2009. The proposals acted upon by shareholders at the special meetings and the results of the shareholder vote were as follows:

First Meeting

Shareholders of the Fund approved Proposals 1 and 2.

Proposal 1

To approve a new investment advisory agreement between the Company and Barclays Global Fund Advisors (“BGFA”), on behalf of the Fund, which took effect upon the consummation of the Barclays PLC binding agreement to sell its interest in BGFA and certain affiliated companies to BlackRock, Inc. (the “Transaction”).

Votes For	Votes Against	Votes Abstaining
291,146,005	3,042,230	6,219,659

Proposal 2

To approve a change in the classification of the Fund’s investment objective from a fundamental investment policy to a non-fundamental investment policy.

Votes For	Votes Against	Votes Abstaining
286,979,917	6,149,939	7,278,038

Second Meeting

This proposal was approved by the shareholders of the Company on November 4, 2009. All nominees who previously served as Directors of the Company were re-elected and the term of their election commenced immediately. Robert S. Kapito was newly elected as a Director to the Company and the term of his election took effect upon the consummation of the Transaction.

Proposal 1*

To elect a Board of Directors of the Company.

Independent Director	Votes For	Votes Withheld
George G.C. Parker	1,597,646,058	46,083,560
J. Darrell Duffie	1,517,311,684	126,417,934
Cecilia H. Herbert	1,599,757,544	43,972,074
Charles A. Hurty	1,599,463,459	44,266,159
John E. Kerrigan	1,599,938,757	43,790,861
John E. Martinez	1,599,890,206	43,839,412
Robert H. Silver	1,601,631,280	42,098,338
Interested Director	Votes For	Votes Withheld
Robert S. Kapito	1,600,119,598	43,610,020
Lee T. Kranefuss	1,117,041,744	526,687,874

* Denotes Company-wide proposal and voting results.

20 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 21

Notes:

22 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 23

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 Russell Domestic Index Funds	Trading Symbol
iShares Russell 3000	IWV
iShares Russell 3000 Growth	IWZ
iShares Russell 3000 Value	IWW
iShares Russell Top 200	IWL
iShares Russell Top 200 Growth	IWY
iShares Russell Top 200 Value	IWX
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds
iShares Dow Jones U.S.	IYY
iShares KLD Socially Responsible Index Funds
iShares FTSE KLD 400 Social	DSI
iShares FTSE KLD Select Social	KLD
iShares NYSE Domestic Index Funds
iShares NYSE Composite	NYC
iShares NYSE 100	NY

iShares Domestic Specialty Index Funds	Trading Symbol
iShares S&P U.S. Preferred Stock	PFF
iShares Dow Jones Select Dividend	DVY
iShares North American Sector/Subsector Index Funds
iShares S&P North American Technology Sector	IGM
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 Natural Resources Sector	IGE
iShares Domestic Sector Index Funds
iShares Dow Jones U.S. Basic Materials Sector	IYM
iShares Dow Jones U.S. Consumer Goods Sector	IYK
iShares Dow Jones U.S. Consumer Services Sector	IYC
iShares Dow Jones U.S. Energy Sector	IYE
iShares Dow Jones U.S. Financial Sector	IYF
iShares Dow Jones U.S. Healthcare Sector	IYH
iShares Dow Jones U.S. Industrial Sector	IYJ
iShares Dow Jones U.S. Technology Sector	IYW
iShares Dow Jones U.S. Telecommunications Sector	IYZ
iShares Dow Jones U.S. Utilities Sector	IDU
iShares Domestic Subsector Index Funds
iShares Dow Jones Transportation Average	IYT
iShares Dow Jones U.S. Aerospace & Defense	ITA
iShares Dow Jones U.S. Broker-Dealers	IAI
iShares Dow Jones U.S. Financial Services	IYG
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 Nasdaq Biotechnology	IBB
iShares Domestic Real Estate Index Funds
iShares Cohen & Steers Realty Majors	ICF
iShares Dow Jones U.S. Real Estate	IYR
iShares FTSE NAREIT Real Estate 50	FTY
iShares FTSE NAREIT Industrial/Office Capped	FIO
iShares FTSE NAREIT Mortgage Plus Capped	REM
iShares FTSE NAREIT Residential Plus Capped	REZ
iShares FTSE NAREIT Retail Capped	RTL
iShares Target Risk Index Funds
iShares S&P Conservative Allocation	AOK
iShares S&P Moderate Allocation	AOM
iShares S&P Growth Allocation	AOR
iShares S&P Aggressive Allocation	AOA

24 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds (Continued)

iShares International Country Index Funds	Trading Symbol
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 S&P/TOPIX 150	ITF
iShares MSCI Malaysia	EWM
iShares MSCI Mexico Investable Market	EWW
iShares MSCI Netherlands Investable Market	EWN
iShares MSCI All Peru Capped	EPU
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 India Nifty 50	INDY
iShares International Index Funds
iShares MSCI ACWI ex US	ACWX
iShares MSCI EAFE	EFA
iShares MSCI EAFE Growth	EFG
iShares MSCI EAFE Value	EFV
iShares MSCI EAFE Small Cap	SCZ
iShares FTSE Developed Small Cap ex-North America	IFSM
iShares MSCI Emerging Markets	EEM
iShares MSCI Emerging Markets Eastern Europe	ESR
iShares MSCI BRIC	BKF
iShares MSCI EMU	EZU
iShares MSCI All Country Asia ex Japan	AAXJ
iShares MSCI Pacific ex-Japan	EPP
iShares S&P Asia 50	AIA
iShares S&P Europe 350	IEV
iShares S&P Latin America 40	ILF
iShares International/Global Real Estate Index Funds
iShares S&P Developed ex-U.S. Property	WPS
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S.	IFGL
iShares FTSE EPRA/NAREIT Developed Asia	IFAS
iShares FTSE EPRA/NAREIT Developed Europe	IFEU
iShares FTSE EPRA/NAREIT North America	IFNA

iShares Target Date Index Funds	Trading Symbol
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 Global Index Funds
iShares MSCI ACWI	ACWI
iShares S&P Global 100	IOO
iShares MSCI Kokusai	TOK
iShares International/Global Sector Index Funds
iShares MSCI ACWI ex US Financials Sector	AXFN
iShares MSCI Emerging Markets Financials Sector	EMFN
iShares MSCI Emerging Markets Materials Sector	EMMT
iShares MSCI Europe Financials Sector	EUFN
iShares MSCI Far East Financials Sector	FEFN
iShares S&P Global Consumer Discretionary Sector	RXI
iShares S&P Global Consumer Staples Sector	KXI
iShares S&P Global Energy Sector	IXC
iShares S&P Global Financials Sector	IXG
iShares S&P Global Healthcare Sector	IXJ
iShares S&P Global Industrials Sector	EXI
iShares S&P Global Materials Sector	MXI
iShares S&P Global Technology Sector	IXN
iShares S&P Global Telecommunications Sector	IXP
iShares S&P Global Utilities Sector	JXI
iShares International/Global Theme Based and Specialty Index Funds
iShares S&P Global Clean Energy	ICLN
iShares S&P Global Infrastructure	IGF
iShares S&P Emerging Markets Infrastructure	EMIF
iShares S&P Global Nuclear Energy	NUCL
iShares S&P Global Timber & Forestry	WOOD
iShares Dow Jones International Select Dividend	IDV
iShares U.S. Multisector Bond Funds
iShares Barclays Aggregate	AGG
iShares Barclays Government/Credit	GBF
iShares Barclays Intermediate Government/Credit	GVI
iShares 10+ Year Government/Credit	GLJ
iShares U.S. Government Bond Funds
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 U.S. Credit Bond Funds
iShares Barclays Credit	CFT
iShares Barclays 1-3 Year Credit	CSJ
iShares Barclays Intermediate Credit	CIU
iShares iBoxx $ Investment Grade Corporate	LQD
iShares 10+ Year Credit	CLY
iShares iBoxx $ High Yield Corporate	HYG

iSHARES FAMILY OF FUNDS 25

The iShares^® Family of Funds (Continued)

iShares AMT-Free Municipal Bond Funds	Trading Symbol
iShares S&P National AMT-Free Municipal	MUB
iShares S&P Short Term National AMT-Free Municipal	SUB
iShares S&P California AMT-Free Municipal	CMF
iShares S&P New York AMT-Free Municipal	NYF
iShares 2012 S&P AMT-Free Municipal Series	MUAA
iShares 2013 S&P AMT-Free Municipal Series	MUAB
iShares 2014 S&P AMT-Free Municipal Series	MUAC
iShares 2015 S&P AMT-Free Municipal Series	MUAD
iShares 2016 S&P AMT-Free Municipal Series	MUAE
iShares 2017 S&P AMT-Free Municipal Series	MUAF

iShares U.S. Securitized Bond Funds	Trading Symbol
iShares Barclays MBS	MBB
iShares International Bond Funds
iShares JPMorgan USD Emerging Markets	EMB
iShares S&P/Citigroup International Treasury	IGOV
iShares S&P/Citigroup 1-3 Year International Treasury	ISHG

The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”). iShares^® is a registered trademark of BlackRock Institutional Trust Company, N.A. The 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., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, 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, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/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.

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 2010 Semi-Annual Report.

iS-2350-0310

26 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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.

Once you have enrolled, you will no longer receive shareholder reports and prospectuses 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 and is available to be viewed or downloaded.

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 notifications sent.

Your information and e-mail 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.

For more information:

WWW.iSHARES.COM

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

IS-SAR-81-0210

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.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by SEI Investments Distribution Co. (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 BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the company listed above.

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 ending 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 on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund also discloses its complete schedule of portfolio holdings on a monthly basis on the Fund’s website.

©2010 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners.

2010 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES ® MSCI SERIES

FEBRUARY 28, 2010

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iShares MSCI Emerging Markets Index Fund | EEM | NYSE Arca

Table of Contents

Fund Performance Overview	1
Shareholder Expenses	3
Schedule of Investments	4
Financial Statements	14
Financial Highlights	17
Notes to Financial Statements	18
Shareholder Meeting Results	25
iShares Family of Funds	28

Fund Performance Overview

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

Performance as of February 28, 2010

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, 2010, the total return for the Fund was 10.78%, while the total return for the Index was 12.19%.

			Average Annual Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
85.15%	86.22%	91.63%	11.53%	11.49%	12.32%	21.43%	21.41%	21.53%
Cumulative Total Returns
Year Ended 2/28/10			Five Years Ended 2/28/10			Inception to 2/28/10
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
85.15%	86.22%	91.63%	72.54%	72.29%	78.77%	281.69%	281.24%	283.80%

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.

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.

FUND PERFORMANCE OVERVIEW 1

Fund Performance Overview (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

PORTFOLIO ALLOCATION As of 2/28/10
Sector/Investment Type	Percentage of Net Assets
Financial	24.10	%
Energy	14.65
Basic Materials	13.72
Communications	11.48
Technology	11.02
Industrial	7.14
Consumer Non-Cyclical	6.20
Consumer Cyclical	5.09
Utilities	3.76
Diversified	2.19
Exchange-Traded Funds	0.48
Short-Term and Other Net Assets	0.17
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/10
Security	Percentage of Net Assets
Samsung Electronics Co. Ltd. SP GDR (South Korea)	3.16	%
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR (Taiwan)	2.42
Petroleo Brasileiro SA Preferred SP ADR (Brazil)	2.42
Itau Unibanco Holding SA SP ADR (Brazil)	2.17
Petroleo Brasileiro SA SP ADR (Brazil)	2.02
POSCO SP ADR (South Korea)	1.88
China Mobile Ltd. (China)	1.86
Vale SA Class A Preferred SP ADR (Brazil)	1.75
OAO Gazprom SP ADR (Russia)	1.60
Banco Bradesco SA Preferred SP ADR (Brazil)	1.58
TOTAL	20.86	%

2 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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, 2009 to February 28, 2010.

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 (9/1/09)		Ending Account Value (2/28/10)		Annualized Expense Ratio		Expenses Paid During Period a (9/1/09 to 2/28/10)
Actual	$	1,000.00	$	1,107.80	0.68	%	$	3.55
Hypothetical (5% return before expenses)		1,000.00		1,021.40	0.68			3.41

^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).

SHAREHOLDER EXPENSES 3

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2010

Security	Shares	Value
COMMON STOCKS – 91.00%
BRAZIL – 7.76%
Banco do Brasil SA	2,328,500	$	38,319,207
Banco Santander (Brasil) SA SP ADR	5,667,019		67,777,547
BM&F Bovespa SA	6,276,700		41,081,331
Brasil Telecom SA SP ADRa	859,628		9,163,634
BRF - Brasil Foods SA SP ADRb	432,405		21,321,891
Centrais Eletricas Brasileiras SA SP ADR	1,130,393		14,695,109
Companhia de Saneamento Basico do Estado de Sao Paulo SP ADRb	703,903		23,996,053
Companhia Siderurgica Nacional SA SP ADR	4,894,615		160,004,964
CPFL Energia SA SP ADRb	357,465		22,323,689
Empresa Brasileira de Aeronautica SA SP ADRb	4,383,659		96,265,152
Fibria Celulose SA SP ADRa,b	4,194,232		76,964,157
Gafisa SA SP ADRb	1,132,476		34,778,338
Itau Unibanco Holding SA SP ADR	36,084,098		720,238,596
OGX Petroleo e Gas Participacoes SAa	6,312,000		54,955,224
PDG Realty SA Empreendimentos e Participacoes	309,200		2,763,828
Petroleo Brasileiro SA SP ADR	15,717,777		670,363,189
TAM SA SP ADR	1,138,085		20,952,145
TIM Participacoes SA SP ADR	264,884		7,520,057
Vale SA SP ADR	16,753,102		466,741,422
Vivo Participacoes SA SP ADR	893,402		24,175,458
			2,574,400,991
CHILE – 2.31%
Banco Santander Chile SA SP ADR	3,267,339		209,338,410
Empresa Nacional de Electricidad SA SP ADR	13,244		660,478
Enersis SA SP ADR	9,123,301		197,154,535
LAN Airlines SA SP ADR	4,415,831		78,557,633

Security	Shares	Value
Sociedad Quimica y Minera de Chile SA Series B SP ADR	7,652,732	$	279,707,355
			765,418,411
CHINA – 17.58%
Agile Property Holdings Ltd.b	41,064,000		52,471,534
Air China Ltd. Class Ha	46,406,000		40,468,177
Alibaba.com Ltd.	900,000		1,970,799
Aluminum Corp. of China Ltd. Class Ha,b	42,850,000		41,451,628
Angang New Steel Co. Ltd. Class Hb	26,445,320		48,711,971
Anhui Conch Cement Co. Ltd. Class Hb	3,816,000		22,610,857
Anta Sports Products Ltd.b	10,476,402		15,060,077
Bank of China Ltd. Class H	527,344,000		256,086,209
Bank of Communications Co. Ltd. Class Hb	84,126,000		92,542,014
BBMG Corp. Class Ha	9,451,000		9,252,140
Beijing Capital International Airport Co. Ltd. Class Ha,b	28,630,000		15,673,324
Beijing Enterprises Holdings Ltd.b	7,290,000		45,824,547
Belle International Holdings Ltd.	28,537,000		31,796,203
BYD Co. Ltd. Class Ha,b	2,142,000		16,582,300
Chaoda Modern Agriculture (Holdings) Ltd.	11,383,942		12,317,506
China Agri-Industries Holdings Ltd.b	26,446,000		37,948,623
China CITIC Bank Class H	24,981,000		16,700,444
China Coal Energy Co. Class H	41,152,000		65,623,959
China Communications Construction Co. Ltd. Class Hb	50,044,000		46,799,312
China Construction Bank Corp. Class H	452,868,000		342,421,139
China COSCO Holdings Co. Ltd. Class Hb	41,121,000		51,220,165
China Everbright Ltd.b	39,522,000		95,911,492

4 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2010

Security	Shares	Value
China High Speed Transmission Equipment Group Co. Ltd.	11,353,000	$	21,789,524
China Life Insurance Co. Ltd. Class H	88,924,000		394,601,789
China Mengniu Dairy Co. Ltd.a	14,979,000		44,666,780
China Merchants Bank Co. Ltd. Class Hb	37,222,400		91,673,348
China Merchants Holdings (International) Co. Ltd.b	14,402,000		51,850,799
China Mobile Ltd.	62,436,000		616,048,175
China National Building Material Co. Ltd. Class Hb	22,708,000		39,078,346
China Overseas Land & Investment Ltd.	52,066,960		105,564,473
China Petroleum & Chemical Corp. Class H	221,702,000		173,915,278
China Railway Construction Corp. Ltd. Class H	17,026,500		22,414,400
China Railway Group Ltd. Class Ha	35,831,000		26,815,500
China Resources Enterprise Ltd.b	25,228,000		89,039,809
China Resources Land Ltd.b	49,192,000		102,396,868
China Resources Power Holdings Co. Ltd.	19,806,999		39,341,769
China Shenhua Energy Co. Ltd. Class H	27,290,500		117,411,002
China Shipping Container Lines Co. Ltd. Class Ha,b	91,426,000		36,507,513
China Shipping Development Co. Ltd. Class Hb	32,200,000		54,832,514
China Taiping Insurance Holdings Co. Ltd.a	412,000		1,278,984
China Telecom Corp. Ltd. Class H	49,962,000		21,945,477
China Travel International Investment Hong Kong Ltd.b	160,928,951		42,287,809
China Unicom (Hong Kong) Ltd.	42,850,000		51,386,772

Security	Shares	Value
China Yurun Food Group Ltd.b	4,478,000	$	13,324,377
CITIC Pacific Ltd.b	24,981,000		55,732,502
CNOOC Ltd.	205,549,000		324,076,560
COSCO Pacific Ltd.b	10,846,000		16,904,635
Datang International Power Generation Co. Ltd. Class Hb	28,642,000		13,023,535
Denway Motors Ltd.	71,662,000		40,061,710
Dongfang Electric Corp. Ltd. Class H	7,290,000		36,622,077
Dongfeng Motor Group Co. Ltd. Class H	37,656,000		54,616,443
Fosun International Ltd.b	11,266,000		8,474,877
Fushan International Energy Group Ltd.	3,784,000		3,372,936
Geely Automobile Holdings Ltd.b	14,930,000		7,500,242
Golden Eagle Retail Group Ltd.b	7,597,000		13,895,728
GOME Electrical Appliances Holdings Ltd.a,b	81,028,200		25,466,945
Greentown China Holdings Ltd.	8,516,500		11,299,239
Guangdong Investment Ltd.b	25,074,110		12,725,433
Guangzhou R&F Properties Co. Ltd. Class Hb	18,578,400		27,568,404
Harbin Power Equipment Co. Ltd. Class Hb	11,402,000		9,179,349
Hengan International Group Co. Ltd.	3,796,000		26,086,239
Hidili Industry International Development Ltd.a	1,236,000		1,324,624
Huaneng Power International Inc. Class Hb	39,454,000		23,733,334
Industrial and Commercial Bank of China Ltd. Class H	455,972,000		322,449,236
Jiangsu Expressway Co. Ltd. Class H	10,852,000		10,078,500
Jiangxi Copper Co. Ltd. Class Hb	39,042,000		79,357,849

SCHEDULE OF INVESTMENTS 5

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2010

Security	Shares	Value
Kingboard Chemical
Holdings Co. Ltd.	546,000	$	2,447,500
Lenovo Group Ltd.b	89,420,000		58,167,029
Li Ning Co. Ltd.b	7,590,000		23,708,515
Maanshan Iron & Steel Co. Ltd. Class Ha,b	56,238,000		33,757,215
Nine Dragons Paper (Holdings) Ltd.b	18,912,000		27,527,498
Parkson Retail Group Ltd.b	4,489,500		7,436,863
PetroChina Co. Ltd. Class H	196,748,000		219,725,396
PICC Property and Casualty Co. Ltd. Class Ha,b	25,070,000		22,669,518
Ping An Insurance (Group) Co. of China Ltd. Class H	19,990,500		152,439,037
Poly (Hong Kong) Investments Ltd.b	20,972,458		25,258,746
Renhe Commercial Holdings Co. Ltd.	22,378,000		5,130,883
Shanghai Industrial Holdings Ltd.	7,591,000		32,609,614
Shimao Property Holdings Ltd.	28,054,000		46,760,581
Shui On Land Ltd.	58,488,450		28,402,874
Sinofert Holdings Ltd.b	58,744,000		32,915,739
Sino-Ocean Land Holdings Ltd.b	57,856,000		51,123,827
Sinopec Shanghai Petrochemical Co. Ltd. Class Ha,b	42,874,000		15,297,646
Sinopharm Group Co. Ltd. Class Ha	412,000		1,854,792
Tencent Holdings Ltd.	9,354,300		183,390,477
Tingyi (Cayman Islands) Holding Corp.	5,192,000		12,051,478
XinAo Gas Holdings Ltd.	7,592,000		18,228,584
Yanzhou Coal Mining Co. Ltd. Class Hb	39,294,800		83,111,108
Zhejiang Expressway Co. Ltd. Class H	39,294,000		35,531,553
Zijin Mining Group Co. Ltd. Class H	83,872,000		71,735,794
			5,832,448,390

Security	Shares	Value
COLOMBIA – 0.44%
Bancolombia SA SP ADR	3,171,217	$	147,081,044
			147,081,044
CZECH REPUBLIC – 1.12%
CEZ AS	6,037,368		276,333,513
Komercni Banka AS	491,348		96,925,311
			373,258,824
EGYPT – 0.50%
Orascom Construction Industries Co. SP GDRb	2,535,612		108,143,852
Orascom Telecom Holding SAE SP GDRb,c	11,147,206		59,303,136
			167,446,988
HUNGARY – 1.16%
Magyar Telekom Telecommunications PLC	4,355,695		15,790,961
MOL Hungarian Oil and Gas Nyrta,b	997,927		89,940,820
OTP Bank Nyrta,b	4,539,574		125,270,748
Richter Gedeon Nyrtb	732,309		152,729,957
			383,732,486
INDIA – 6.41%
Axis Bank Ltd. SP GDRc	331,250		8,215,000
Dr. Reddy’s Laboratories Ltd. SP ADRb	132,676		3,265,156
HDFC Bank Ltd. SP ADRb	4,189,965		509,876,841
ICICI Bank Ltd. SP ADRb	9,553,760		365,431,320
Infosys Technologies Ltd. SP ADR	8,670,100		493,328,690
Larsen & Toubro Ltd. GDRc	613,900		20,995,380
Mahanagar Telephone Nigam Ltd. SP ADRb	1,535,183		4,743,715
Reliance Industries Ltd. SP GDRb,d	9,202,798		390,198,635
Satyam Computer Services Ltd. SP ADRa	474,773		2,516,297
Sterlite Industries (India) Ltd. SP ADR	848,015		14,322,973
Tata Communications Ltd. SP ADRb	6,131,870		76,035,188

6 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2010

Security	Shares	Value
Tata Motors Ltd. SP ADRb	397,436	$	6,430,514
Wipro Ltd. SP ADRb	10,798,370		233,460,759
			2,128,820,468
INDONESIA – 2.35%
PT Adaro Energy Tbk	100,463,000		19,694,407
PT Aneka Tambang Tbk	225,126,000		50,041,399
PT Astra Agro Lestari Tbk	4,489,500		11,638,554
PT Astra International Tbk	28,598,500		111,054,700
PT Bank Central Asia Tbk	160,860,500		84,005,885
PT Bank Danamon Indonesia Tbk	36,673,487		19,544,788
PT Bank Mandiri Tbk	97,440,500		46,710,898
PT Bank Negara Indonesia (Persero) Tbk	42,211,000		8,636,637
PT Bank Rakyat Indonesia Tbk	82,289,061		63,028,043
PT Bumi Resources Tbk	329,151,500		79,334,856
PT Indo Tambangraya Megah Tbk	3,798,500		12,858,340
PT Indofood Sukses Makmur Tbk	50,076,000		20,384,446
PT Indosat Tbk	1,892,560		1,033,964
PT International Nickel Indonesia Tbk	13,379,500		5,410,564
PT Perusahaan Gas Negara Tbk	169,759,500		65,921,605
PT Semen Gresik (Persero) Tbk	12,490,500		10,169,020
PT Telekomunikasi Indonesia Tbk	110,783,000		98,500,150
PT Unilever Indonesia Tbk	933,500		1,150,000
PT United Tractors Tbk	38,622,150		70,955,530
			780,073,786
ISRAEL – 3.34%
Bank Hapoalim Ltd.a	15,921,131		66,111,564
Bank Leumi le-Israela	20,592,665		87,090,323
Check Point Software Technologies Ltd.a	1,609,974		52,485,152
Discount Investment Corp. Ltd.b	105,476		2,665,862
Elbit Systems Ltd.b	1,183,776		72,683,878
Israel Chemicals Ltd.	8,736,165		106,332,203
Israel Corp. Ltd. (The)a	30,315		23,010,036

Security	Shares	Value
Israel Discount Bank Ltd. Class Aa,b	26,691,169	$	58,277,661
Makhteshim-Agan Industries Ltd.b	5,224,607		26,631,185
Mizrahi Tefahot Bank Ltd.a	8,787,596		77,026,645
NICE Systems Ltd.a	276,970		8,495,653
Teva Pharmaceutical Industries Ltd.	8,693,228		519,269,964
Teva Pharmaceutical Industries Ltd. SP ADR	122,457		7,348,645
			1,107,428,771
MALAYSIA – 1.25%
AirAsia Bhda	16,100,600		6,808,065
Alliance Financial Group Bhd	1,690,100		1,379,673
AMMB Holdings Bhd	22,516,675		32,398,093
Astro All Asia Networks PLC	2,486,000		2,474,685
Axiata Group Bhda	9,430,200		10,328,776
Berjaya Sports Toto Bhd	5,089,400		6,381,365
British American Tobacco (Malaysia) Bhd	413,600		5,098,496
Bursa Malaysia Bhd	5,336,500		11,407,934
CIMB Group Holdings Bhd	7,530,800		28,791,959
DiGi.Com Bhd	54,000		357,093
Gamuda Bhd	30,355,700		24,691,026
Genting Bhd	21,333,800		39,529,079
Genting Malaysia Bhd	45,127,700		36,043,854
Genting Plantations Bhd	1,696,400		3,083,458
Hong Leong Bank Bhd	150,000		369,990
Hong Leong Financial Group Bhd	445,600		1,007,523
IGB Corp. Bhda	9,471,200		4,867,009
IJM Corp. Bhd	12,785,420		16,631,746
IOI Corp. Bhd	18,987,120		29,940,048
KLCC Property Holdings Bhd	2,204,900		2,117,170
Kuala Lumpur Kepong Bhd	1,349,600		6,634,064
Lafarge Malayan Cement Bhd	558,400		1,033,011
Malayan Banking Bhd	3,734,000		7,642,337
Malaysian Airline System Bhda	2,266,200		1,384,142
MISC Bhd Foreign	1,015,600		2,311,232
MMC Corp. Bhd	8,577,200		6,145,461
Parkson Holdings Bhd	4,205,159		6,828,521
Petronas Dagangan Bhd	339,600		871,562

SCHEDULE OF INVESTMENTS 7

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2010

Security	Shares	Value
PLUS Expressways Bhd	4,630,100	$	4,690,602
PPB Group Bhd	989,600		4,707,538
RHB Capital Bhd	1,312,800		2,035,409
Sime Darby Bhd	19,084,273		47,353,430
SP Setia Bhd	8,339,100		10,235,630
Tanjong PLC	689,500		3,567,461
Telekom Malaysia Bhd	2,249,800		2,153,677
Tenaga Nasional Bhd	10,392,100		24,290,447
UMW Holdings Bhd	2,527,600		4,653,664
YTL Corp. Bhd	5,215,308		11,056,974
YTL Power International Bhd	7,984,960		5,064,605
			416,366,809
MEXICO – 4.87%
Alfa SAB de CV Series A	7,363,700		49,709,118
America Movil SAB de CV Series L	162,712,000		362,905,559
Cemex SAB de CV CPOa	87,957,771		84,489,039
Desarrolladora Homex SAB de CVa,b	1,823,500		8,319,685
Fomento Economico Mexicano SAB de CV BD Units	32,351,600		138,941,875
Grupo Bimbo SAB de CV Series A	542,300		3,958,434
Grupo Carso SAB de CV Series A1	1,610,741		5,733,664
Grupo Financiero Banorte SAB de CV Series O	18,949,656		70,880,874
Grupo Mexico SAB de CV Series B	56,002,663		133,761,914
Grupo Modelo SAB de CV Series Ca	21,978,798		122,215,796
Grupo Televisa SA CPO	34,839,300		128,979,391
Industrias Penoles SAB de CV	1,786,988		35,789,423
Kimberly-Clark de Mexico SAB de CV Series A	12,695,600		67,335,505
Telefonos de Mexico SAB de CV Series L	76,649,800		60,005,715
Telmex Internacional SAB de CV Series L	81,858,600		74,657,222

Security	Shares	Value
Urbi Desarrollos Urbanos
SAB de CVa,b	6,116,600	$	13,776,266
Wal-Mart de Mexico SAB de CV Series V	51,083,400		254,702,162
			1,616,161,642
PERU – 0.71%
Compania de Minas
Buenaventura SA SP ADR	4,797,221		161,234,598
Southern Copper Corp.	2,518,252		73,935,879
			235,170,477
PHILIPPINE ISLANDS – 1.23%
Ayala Corp.	7,735,273		49,052,951
Ayala Land Inc.	61,127,800		14,909,220
Bank of the Philippine Islands	49,380,640		50,317,400
Globe Telecom Inc.	822,420		17,295,337
Jollibee Foods Corp.e	64,514,400		80,424,455
Manila Electric Co.	16,157,682		63,054,369
Metropolitan Bank & Trust Co.	897,940		866,305
Philippine Long Distance
Telephone Co.	984,330		55,485,268
SM Investments Corp.	3,431,991		26,972,287
SM Prime Holdings Inc.	247,111,820		50,895,659
			409,273,251
POLAND – 0.22%
Bank Pekao SAa	147,576		8,044,628
Cyfrowy Polsat SA	507,520		2,531,053
KGHM Polska Miedz SA	64,328		2,147,646
PBG SAa	38,014		2,581,705
Polski Koncern Naftowy ORLEN SAa	2,398,421		27,195,035
Polskie Gornictwo Naftowe i Gazownictwo SA	9,852,133		12,112,789
Powszechna Kasa Oszczednosci Bank Polski SA	1,453,056		18,498,793
			73,111,649
RUSSIA – 6.27%
JSC MMC Norilsk Nickel
SP ADRa	7,601,967		114,713,682
LUKOIL SP ADR	5,160,259		270,913,597
Mechel OAO SP ADR	3,557,379		81,819,717
Mobile TeleSystems SP ADR	2,031,659		106,357,349

8 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2010

Security	Shares	Value
Novolipetsk Steel SP GDRa,c	1,957,732	$	60,493,919
OAO Gazprom SP ADR	23,916,297		531,898,445
OAO NovaTek SP GDRc	1,195,313		76,260,969
OAO Tatneft SP ADR	4,032,118		122,737,672
OAO TMK SP GDRa,c	54,868		976,650
OJSC Comstar United Telesystems SP GDR	1,639,408		9,508,566
OJSC Rosneft Oil Co. SP GDR	13,463,176		103,935,719
Polyus Gold SP ADR	2,146,713		58,304,725
Rushydro SP ADRa	5,163,148		22,356,431
Sberbank GDRc	700,538		190,248,818
Sistema JSFC SP GDRa,c	111,088		2,832,744
Surgutneftegaz SP ADR	6,084,062		49,706,787
Uralkali SP GDRa,c	2,391,116		50,093,880
Vimpel-Communications SP ADR	6,359,539		117,969,448
VTB Bank OJSC SP GDRb,c	15,090,426		72,735,853
Wimm-Bill-Dann Foods OJSC SP ADRa	1,810,328		37,075,517
			2,080,940,488
SOUTH AFRICA – 7.98%
Absa Group Ltd.b	586,173		10,156,406
African Bank Investments Ltd.	18,473,550		74,646,206
African Rainbow Minerals Ltd.	444,929		10,681,315
Anglo Platinum Ltd.a,b	618,449		57,653,051
AngloGold Ashanti Ltd.	2,209,789		79,860,324
ArcelorMittal South Africa Ltd.	4,894,172		74,499,713
Aveng Ltd.	2,680,280		13,078,801
Bidvest Group Ltd.	4,002,808		68,937,394
Exxaro Resources Ltd.	2,597,991		38,980,881
FirstRand Ltd.	46,526,385		110,420,112
Foschini Ltd.	8,720,822		68,838,115
Gold Fields Ltd.	6,816,728		79,022,282
Harmony Gold Mining Co. Ltd.	4,032,829		36,332,030
Impala Platinum Holdings Ltd.	5,910,616		144,863,881
Imperial Holdings Ltd.	4,951,503		60,565,387
Investec Ltd.	6,066,658		43,098,640
Kumba Iron Ore Ltd.	664,749		31,830,241
Liberty Holdings Ltd.	1,278,716		11,721,911
Massmart Holdings Ltd.	755,869		9,044,392
MTN Group Ltd.	14,543,804		212,336,313
Murray & Roberts Holdings Ltd.	3,373,449		16,989,384

Security	Shares	Value
Naspers Ltd. Class N	5,733,067	$	215,424,789
Nedbank Group Ltd.b	5,087,925		79,659,600
Netcare Ltd.a,b	28,275,942		47,369,443
Northam Platinum Ltd.b	457,713		2,659,865
Pick’n Pay Stores Ltd.	8,089,334		42,639,323
Pretoria Portland Cement Co. Ltd.	6,018,457		25,520,237
Remgro Ltd.	1,461,805		17,165,171
Reunert Ltd.	2,523,622		18,171,922
Sanlam Ltd.	28,533,593		90,948,617
Sappi Ltd.a	1,623,295		6,250,041
Sasol Ltd.	7,161,740		263,455,228
Shoprite Holdings Ltd.	17,143,128		167,528,252
Standard Bank Group Ltd.	13,478,608		188,976,608
Steinhoff International Holdings Ltd.a	3,123,699		7,792,436
Tiger Brands Ltd.	3,041,113		69,833,112
Truworths International Ltd.	14,825,064		95,629,351
Woolworths Holdings Ltd.	20,126,980		54,121,868
			2,646,702,642
SOUTH KOREA – 12.33%
Celltrion Inc.a,b	293,035		4,522,223
Daewoo International Corp.b	64,086		2,005,623
Daewoo Shipbuilding & Marine Engineering Co. Ltd.b	884,390		15,363,789
Dongkuk Steel Mill Co. Ltd.	223,860		4,400,386
Doosan Corp.	304,560		28,358,031
Doosan Heavy Industries & Construction Co. Ltd.b	231,790		17,445,700
GS Engineering & Construction Corp.	171,871		12,921,072
Hana Financial Group Inc.a	391,510		11,307,514
Hanjin Heavy Industries & Construction Co. Ltd.b	856,070		16,089,599
Hankook Tire Co. Ltd.	233,390		4,668,202
Hynix Semiconductor Inc.a	2,073,960		37,549,065
Hyosung Corp.	146,651		11,062,990
Hyundai Engineering & Construction Co. Inc.	325,410		16,804,948
Hyundai Heavy Industries Co. Ltd.b	375,500		66,851,237
Hyundai Mipo Dockyard Co. Ltd.	132,220		14,819,036

SCHEDULE OF INVESTMENTS 9

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2010

Security	Shares	Value
Hyundai Mobis Co. Ltd.	188,498	$	24,133,074
Hyundai Motor Co. Ltd.b	1,173,919		116,389,934
Hyundai Steel Co.	216,240		16,554,972
KB Financial Group Inc. SP ADRa	10,926,456		457,490,713
Kia Motors Corp.	1,289,370		24,177,772
Korea Electric Power Corp. SP ADRa,b	22,621,645		364,887,134
Korea Zinc Co. Ltd.	32,940		5,197,017
Korean Air Lines Co. Ltd.a	52,698		2,639,671
KT Corp. SP ADRa	13,330,545		255,679,853
KT&G Corp.	240,937		13,335,766
LG Chem Ltd.	198,014		36,704,035
LG Corp.	405,173		21,308,348
LG Display Co. Ltd. SP ADRa,b	11,297,432		169,913,377
LG Electronics Inc.	418,380		38,595,275
Mirae Asset Securities Co. Ltd.	111,240		5,658,384
NCsoft Corp.b	301,635		34,586,995
NHN Corp.a	190,583		29,740,084
OCI Co. Ltd.b	112,850		17,172,192
POSCO SP ADR	5,415,797		625,307,922
Samsung C&T Corp.	722,515		36,814,067
Samsung Electro-Mechanics Co. Ltd.	125,742		10,840,762
Samsung Electronics Co. Ltd. SP GDRb,c	3,281,823		1,048,542,449
Samsung Engineering Co. Ltd.	187,990		19,854,104
Samsung Fire & Marine Insurance Co. Ltd.	15,050		2,393,935
Samsung Heavy Industries Co. Ltd.b	2,036,070		43,270,218
Samsung Techwin Co. Ltd.	565,987		36,401,957
Shinhan Financial Group Co. Ltd.	1,184,580		42,331,961
Shinhan Financial Group Co. Ltd. SP ADR	643,204		46,760,931
Shinsegae Co. Ltd.	15,050		6,876,886
SK Energy Co. Ltd.	202,980		18,724,769
SK Holdings Co. Ltd.	75,650		5,635,106
SKTelecom Co. Ltd. SP ADR	12,147,754		202,624,537
STX Offshore & Shipbuilding Co. Ltd.a,b	1,695,930		17,472,509

Security	Shares	Value
STX Pan Ocean Co. Ltd.b	2,279,800	$	23,193,068
Taewoong Co. Ltd.b	44,501		2,927,344
Tong Yang Securities Inc.	243,630		2,226,466
Woongjin Coway Co. Ltd.	22,560		675,886
			4,091,208,888
TAIWAN – 10.51%
Acer Inc.	5,788,000		16,241,952
Asia Cement Corp.	4,817,081		4,415,689
ASUSTeK Computer Inc.	6,370,000		11,241,469
AU Optronics Corp. SP ADRb	24,557,517		254,661,451
Capital Securities Corp.a	19,999,000		9,665,118
Catcher Technology Co. Ltd.	3,873,210		7,910,055
Cathay Financial Holding Co. Ltd.a	19,197,000		30,945,043
Cheng Shin Rubber Industry Co. Ltd.	11,779,515		22,771,219
Chi Mei Optoelectronics Corp.a	9,992,000		6,853,971
China Airlines Ltd.a	5,997,000		1,944,619
China Steel Corp.	46,779,000		46,964,964
Chinatrust Financial Holding Co. Ltd.	57,855,000		31,387,544
Chinese Gamer International Corp.	913,000		8,682,360
Chunghwa Telecom Co. Ltd. SP ADR	26,831,031		501,203,659
Clevo Co.a	5,930,000		11,130,595
CMC Magnetics Corp.a	8,136,000		2,108,042
Compal Communications Inc.	7,538,750		7,451,193
Compal Electronics Inc.	9,989,000		14,326,729
Delta Electronics Inc.	1,747,000		5,092,977
Epistar Corp.	4,388,345		11,780,700
Eternal Chemical Co. Ltd.	105,000		101,816
EVA Airways Corp.a	2,585,000		979,274
Evergreen International Storage & Transport Corp.a	7,904,000		6,087,109
Evergreen Marine Corp. Ltd.a	15,981,000		9,566,925
Far Eastern Department Stores Co. Ltd.	7,455,000		5,334,547
Far Eastern New Century Corp.	26,170,434		28,314,415

10 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2010

Security	Shares	Value
Farglory Land Development Co. Ltd.	15,066,000	$	30,533,635
Feng Hsin Iron & Steel Co. Ltd.	5,448,000		8,951,893
Formosa Chemicals & Fibre Corp.	6,723,000		15,197,365
Formosa International Hotels Corp.	93,000		985,891
Formosa Plastics Corp.	11,375,000		24,542,833
Formosa Taffeta Co. Ltd.	1,284,000		954,818
Foxconn Technology Co. Ltd.	165,272		584,874
Fubon Financial Holding Co. Ltd.a	5,107,000		5,652,771
Giant Manufacturing Co. Ltd.	738,000		2,045,622
HannStar Display Corp.a	11,767,963		2,351,941
Hon Hai Precision Industry Co. Ltd.	74,893,762		296,562,718
HTC Corp.	9,607,990		97,060,995
Innolux Display Corp.	5,795,000		8,239,208
KGI Securities Co. Ltd.	51,309,000		22,156,977
Largan Precision Co. Ltd.	554,000		7,142,536
Lite-On Technology Corp.	1,829,000		2,355,217
Macronix International Co. Ltd.	23,056,275		12,364,734
MediaTek Inc.	5,772,802		90,896,095
MiTAC International Corp.	7,403,728		3,185,640
Motech Industries Inc.	3,913,000		15,250,604
Nan Ya Plastics Corp.	12,931,000		25,601,949
Phison Electronics Corp.	1,183,000		7,598,348
Polaris Securities Co. Ltd.a	39,894,000		19,528,749
Pou Chen Corp.	7,985,000		5,888,074
Prime View International Co. Ltd.a	8,656,000		17,029,966
Quanta Computer Inc.	2,519,000		5,144,423
Ruentex Industries Ltd.a	9,281,000		15,828,847
Shin Kong Financial Holding Co. Ltd.a	16,067,345		5,711,053
Siliconware Precision Industries Co. Ltd. SP ADR	41,380,699		241,663,282
Synnex Technology International Corp.	4,922,280		10,374,811
Taiwan Cement Corp.	28,999,190		26,763,614
Taiwan Fertilizer Co. Ltd.	6,481,000		19,601,122

Security	Shares	Value
Taiwan Glass Industrial Corp.	2,902,000	$	2,596,848
Taiwan Mobile Co. Ltd.	1,025,000		1,920,726
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR	82,469,666		804,079,244
Tatung Co. Ltd.a	61,681,000		12,885,266
Teco Electric and Machinery Co. Ltd.	15,718,000		6,272,988
TSRC Corp.	3,052,000		3,606,541
Tung Ho Steel Enterprise Corp.	10,688,000		12,046,806
U-Ming Marine Transport Corp.	4,010,000		7,614,280
Uni-President Enterprises Co.	15,057,012		16,713,060
United Microelectronics Corp. SP ADRa,b	123,032,768		422,002,394
Walsin Lihwa Corp.a	17,202,000		5,631,647
Wintek Corp.a	4,148,000		2,948,769
Wistron Corp.	4,236,000		7,264,167
WPG Holdings Co. Ltd.	1,647,000		2,654,919
Yang Ming Marine Transport Corp.	30,031,978		10,581,070
Young Fast Optoelectronics Co. Ltd.	1,224,000		11,048,344
Yuanta Financial Holding Co. Ltd.	38,829,000		22,034,073
Yulon Motor Co. Ltd.	32,452,000		30,962,076
			3,487,777,258
THAILAND – 1.37%
Bangkok Bank PCL Foreign	7,972,800		28,573,319
Banpu PCL Foreign	2,511,000		41,615,848
IRPC PCL Foreign	129,371,400		17,215,610
Kasikornbank PCL Foreign	16,172,200		44,019,295
Krung Thai Bank PCL Foreign	62,367,800		18,862,181
PTT Aromatics & Refining PCL Foreign	36,820,986		29,788,640
PTT Chemical PCL Foreign	11,332,268		27,332,478
PTT Exploration and Production PCL Foreign	27,398,500		111,864,434
PTT PCL Foreign	15,917,300		111,683,460
Siam Cement PCL Foreign	2,544,600		17,623,269
Thai Oil PCL NVDR	3,250,900		4,252,273
TMB Bank PCL NVDRa	24,660,400		977,019
			453,807,826

SCHEDULE OF INVESTMENTS 11

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2010

Security	Shares	Value
TURKEY – 1.29%
Akbank TASb	7,883,890	$	39,896,417
Anadolu Efes Biracilik ve Malt Sanayii AS	375,768		3,803,147
Asya Katilim Bankasi ASa	19,215,749		45,379,263
BIM Birlesik Magazalar AS	139,395		6,194,931
Enka Insaat ve Sanayi AS	265,901		1,043,694
Eregli Demir ve Celik Fabrikalari TASa,b	9,502,089		26,015,385
Migros TASa	1		8
Turk Sise ve Cam Fabrikalari ASa	24,369,298		28,458,648
Turkcell Iletisim Hizmetleri ASb	4,513,250		26,499,440
Turkiye Garanti Bankasi ASb	25,178,225		93,110,509
Turkiye Halk Bankasi AS	912,390		5,771,436
Turkiye Is Bankasi ASb	7,642,391		21,221,289
Turkiye Is Bankasi AS Newa	3,543,645		9,380,135
Turkiye Petrol Rafinerileri AS	1,321,015		23,997,418
Turkiye Vakiflar Bankasi TAOa,b	26,268,383		59,989,430
Yapi ve Kredi Bankasi ASa,b	17,154,413		36,949,850
			427,711,000
TOTAL COMMON STOCKS (Cost: $31,463,924,386)			30,198,342,089
PREFERRED STOCKS – 8.35%
BRAZIL – 8.35%
Banco Bradesco SA SP ADR	30,206,660		522,877,285
Brasil Telecom SA SP ADRa	1,499,540		30,800,551
Centrais Eletricas Brasileiras SA Class B SP ADR	281,598		4,547,808
Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A SP ADRb	1,924,031		131,719,162
Companhia de Bebidas das Americas SP ADR	3,042,303		294,951,276
Companhia Energetica de Minas Gerais SP ADR	3,380,645		55,341,159
Companhia Paranaense de Energia Class B SP ADR	536,016		10,982,968
Gerdau SA SP ADR	9,105,177		134,301,361

Security	Shares	Value
Gol Linhas Aereas Inteligentes SA SP ADRb	1,774,940	$	24,316,678
Itausa - Investimentos Itau SA	14,101,600		90,113,044
Net Servicos de Comunicacao SA SP ADR	2,867,109		35,294,112
Petroleo Brasileiro SA SP ADR	20,876,885		801,672,384
Tele Norte Leste Participacoes SA SP ADR	3,178,679		55,213,654
Vale SA Class A SP ADR	23,564,216		579,679,713
			2,771,811,155
TOTAL PREFERRED STOCKS (Cost: $2,497,633,568)			2,771,811,155
EXCHANGE-TRADED FUNDS – 0.48%
iShares MSCI Malaysia Index Funde	1,224,068		13,085,287
iShares MSCI South Korea Index Fundb,e	1,511,004		68,841,342
iShares MSCI Taiwan Index Funde	6,584,400		77,498,388
TOTAL EXCHANGE-TRADED FUNDS (Cost: $168,060,684)			159,425,017
SHORT-TERM INVESTMENTS – 3.27%
MONEY MARKET FUNDS – 3.27%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%e,f,g	904,404,227		904,404,227
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%e,f,g	145,347,439		145,347,439
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%e,f	33,740,980		33,740,980
			1,083,492,646
TOTAL SHORT-TERM INVESTMENTS (Cost: $1,083,492,646)			1,083,492,646

12 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2010

	Value
TOTAL INVESTMENTS IN SECURITIES – 103.10%
(Cost: $35,213,111,284)	$	34,213,070,907
Other Assets, Less Liabilities – (3.10)%		(1,027,820,651)
NET ASSETS – 100.00%	$	33,185,250,256

GDR – Global Depositary Receipts

NVDR – Non-Voting 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 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.

SCHEDULE OF INVESTMENTS 13

Statement of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2010

	iShares MSCI Emerging Markets Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	33,890,502,758
Affiliated issuers (Note 2)		1,322,608,526
Total cost of investments	$	35,213,111,284
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	32,889,728,789
Affiliated issuers (Note 2)		1,323,342,118
Total fair value of investments		34,213,070,907
Foreign currencies, at valueb		53,338,338
Receivables:
Investment securities sold		343,481,675
Dividends and interest		45,008,338
Total Assets		34,654,899,258
LIABILITIES
Payables:
Investment securities purchased		389,236,553
Securities related to in-kind transactions (Note 4)		415,080
Collateral for securities on loan (Note 5)		1,049,751,666
Capital shares redeemed		11,722,382
Foreign taxes (Note 1)		729,813
Investment advisory fees (Note 2)		17,793,508
Total Liabilities		1,469,649,002
NET ASSETS	$	33,185,250,256
Net assets consist of:
Paid-in capital	$	34,603,870,413
Distributions in excess of net investment income		(20,928,186	)
Accumulated net realized loss		(397,283,958	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(1,000,408,013	)
NET ASSETS	$	33,185,250,256
Shares outstandingc		851,400,000
Net asset value per share	$	38.98

^a Securities on loan with a value of $1,002,121,089. See Note 5.

^b Cost of foreign currencies: $53,281,359.

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

See notes to financial statements.

14 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2010

	iShares MSCI Emerging Markets Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	207,690,803
Dividends from affiliated issuers (Note 2)b		2,615,250
Interest from unaffiliated issuers		187
Interest from affiliated issuers (Note 2)		21,256
Securities lending income from affiliated issuers (Note 2)		5,813,659
Total investment income		216,141,155
EXPENSES
Investment advisory fees (Note 2)		122,805,967
Foreign taxes (Note 1)		22,892
Total expenses		122,828,859
Less investment advisory fees waived (Note 2)		(579,799	)
Net expenses		122,249,060
Net investment income		93,892,095
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(521,177,339	)
Investments in affiliated issuers (Note 2)		8,594,519
In-kind redemptions		1,876,029,989
Foreign currency transactions		(3,410,527	)
Net realized gain		1,360,036,642
Net change in unrealized appreciation (depreciation) on:
Investments		1,523,918,812
Translation of assets and liabilities in foreign currencies		(593,436	)
Net change in unrealized appreciation (depreciation)		1,523,325,376
Net realized and unrealized gain		2,883,362,018
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,977,254,113

^a Net of foreign withholding tax of $28,497,546.

^b Net of foreign withholding tax of $181,044.

See notes to financial statements.

FINANCIAL STATEMENTS 15

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Emerging Markets Index Fund
	Six months ended February 28, 2010 (Unaudited)			Year ended August 31, 2009
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	93,892,095		$	516,988,234
Net realized gain (loss)		1,360,036,642			(496,335,831	)
Net change in unrealized appreciation (depreciation)		1,523,325,376			807,907,449
Net increase in net assets resulting from operations		2,977,254,113			828,559,852
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(314,072,033	)		(487,478,088	)
Total distributions to shareholders		(314,072,033	)		(487,478,088	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		6,335,176,119			18,716,077,957
Cost of shares redeemed		(6,081,229,351	)		(9,091,794,756	)
Net increase in net assets from capital share transactions		253,946,768			9,624,283,201
INCREASE IN NET ASSETS		2,917,128,848			9,965,364,965
NET ASSETS
Beginning of period		30,268,121,408			20,302,756,443
End of period	$	33,185,250,256		$	30,268,121,408
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(20,928,186	)	$	199,251,752
SHARES ISSUED AND REDEEMED
Shares sold		156,600,000			691,200,000
Shares redeemed		(158,400,000	)		(344,700,000	)
Net increase (decrease) in shares outstanding		(1,800,000	)		346,500,000

See notes to financial statements.

16 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Emerging Markets Index Fund
	Six months ended Feb. 28, 2010 (Unaudited)			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a			Year ended Aug. 31, 2005a
Net asset value, beginning of period	$	35.48		$	40.07		$	44.78		$	32.48		$	25.97		$	17.99
Income from investment operations:
Net investment incomeb		0.10			0.66			1.10			0.63			0.55			0.55
Net realized and unrealized gain (loss)		3.73			(4.66	)		(4.64	)		12.19			6.29			8.23
Total from investment operations		3.83			(4.00	)		(3.54	)		12.82			6.84			8.78
Less distributions from:
Net investment income		(0.33	)		(0.59	)		(1.17	)		(0.52	)		(0.33	)		(0.80	)
Total distributions		(0.33	)		(0.59	)		(1.17	)		(0.52	)		(0.33	)		(0.80	)
Net asset value, end of period	$	38.98		$	35.48		$	40.07		$	44.78		$	32.48		$	25.97
Total return		10.78	%c		(9.47	)%		(8.36	)%		39.86	%		26.44	%		46.17	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	33,185,250		$	30,268,121		$	20,302,756		$	18,198,371		$	11,969,380		$	7,000,858
Ratio of expenses to average net assets prior to waived feesd		0.69	%		0.72	%		0.72	%		0.74	%		0.77	%		0.78	%
Ratio of expenses to average net assets after waived feesd		0.68	%		0.72	%		0.72	%		0.74	%		0.77	%		0.77	%
Ratio of expenses to average net assets after waived fees and exclusive of foreign taxesd		0.68	%		0.72	%		0.72	%		0.74	%		0.75	%		0.74	%
Ratio of net investment income to average net assetsd		0.53	%		2.32	%		2.32	%		1.63	%		1.77	%		2.40	%
Portfolio turnover ratee		5	%		5	%		11	%		5	%		12	%		9	%

^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 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 17

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. 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 non-U.S. issuers that may trade in non-U.S. markets. This 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”) using 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 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 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”);

18 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

• 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”).

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.

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. 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. 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 inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include 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 Level 2 investments 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, recent transactions in the same or similar instruments, 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 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.

NOTES TO FINANCIAL STATEMENTS 19

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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, 2010, the value of each of the Fund’s investments was classified as a Level 1 Price. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments.

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. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Fund may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of the investments or reclassified to capital gains. 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. 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 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, 2010, 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, 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.

20 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

FEDERAL INCOME TAXES

The Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of the Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its 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, 2010.

As of August 31, 2009, 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, $13,844,901 and $228,196,854 expiring in 2012, 2013, 2014, 2015, 2016 and 2017, 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, 2010, the cost of investments for federal income tax purposes was $35,524,684,922. Net unrealized depreciation was $1,311,614,015, of which $2,351,890,733 represented gross unrealized appreciation on securities and $3,663,504,748 represented gross unrealized depreciation on securities.

Management has reviewed the tax positions as of February 28, 2010, 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. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

On December 1, 2009, Barclays PLC (“Barclays”) completed the sale of its interest in BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A., and certain affiliated companies to BlackRock, Inc. (“BlackRock”, and such sale, the “Transaction”). BTC is a wholly-owned subsidiary of BlackRock.

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.

Under the 1940 Act, upon completion of the Transaction on December 1, 2009, the Fund’s investment advisory agreement with BlackRock Fund Advisors (“BFA”), formerly known as Barclays Global Fund Advisors, was automatically terminated. The Board and shareholders of the Fund approved a new investment advisory agreement with BFA. The investment advisory fee rates and expense arrangements for the Fund remained the same after the Transaction.

NOTES TO FINANCIAL STATEMENTS 21

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA 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, BFA 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

BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through June 30, 2011 in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares Funds.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BTC to serve as securities lending agent for the Fund, subject to applicable conditions. BTC is an affiliate of BFA, the Fund’s investment adviser. As securities lending agent, BTC 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, 2010, BTC earned securities lending agent fees of $4,016,844.

The Fund may invest its positive cash balance in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in interest from affiliated issuers in the Statement of Operations.

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, 2010, the Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.

22 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Investments in issuers considered to be an affiliate of the Fund (excluding short-term investments) during the six months ended February 28, 2010, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Name of Affiliated Issuer	Number of Shares Held Beginning of Period (in 000s)	Gross Additions (in 000s)	Gross Reductions (in 000s)	Number of Shares Held End of Period (in 000s)	Value at End of Period		Dividend Income		Net Realized Gain
iShares MSCI Malaysia
Index Fund	1,159	287	222	1,224	$	13,085,287	$	191,755	$	950,557
iShares MSCI South Korea
Index Fund	1,318	461	268	1,511		68,841,342		190,142		3,182,526
iShares MSCI Taiwan
Index Fund	6,426	1,366	1,208	6,584		77,498,388		1,509,178		2,021,588
Jollibee Foods Corp.	68,446	8,176	12,108	64,514		80,424,455		724,175		2,439,848
					$	239,849,472	$	2,615,250	$	8,594,519

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2010, aggregated $3,376,304,228 and $1,617,802,369, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 28, 2010, aggregated $3,934,337,874 and $5,592,448,522, 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 an optimized representation of the securities involved in the Fund’s underlying 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 Bank and Trust Company, 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 Statement of Assets and Liabilities.

NOTES TO FINANCIAL STATEMENTS 23

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

5. LOANS OF PORTFOLIO SECURITIES

The Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks 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 BFA; such reinvestments are subject to investment risk.

As of February 28, 2010, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The market value of the securities on loan as of February 28, 2010 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 BTC as securities lending agent.

6. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

24 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Meeting Results (Unaudited)

iSHARES^®, INC.

Two separate special meetings of shareholders of iShares, Inc. were held on November 4, 2009. The proposals acted upon by shareholders at the special meetings and the results of the shareholder vote were as follows:

First Meeting

Shareholders of the Fund approved Proposal 1. Proposal 2 did not apply to the Fund.

Proposal 1

To approve a new investment advisory agreement between the Company and Barclays Global Fund Advisors (“BGFA”), on behalf of the Fund, which took effect upon the consummation of the Barclays PLC binding agreement to sell its interest in BGFA and certain affiliated companies to BlackRock, Inc. (the “Transaction”).

Votes For	Votes Against	Votes Abstaining	Broker Non-Votes*
395,609,086	5,528,382	4,968,602	25,241,371

Proposal 2

To approve a change in the classification of certain funds’ investment objective from a fundamental investment policy to a non-fundamental investment policy.

SHAREHOLDER MEETING RESULTS 25

Shareholder Meeting Results (Unaudited) (Continued)

iSHARES^®, INC.

Second Meeting

This proposal was approved by the shareholders of the Company on November 4, 2009. All nominees who previously served as Directors of the Company were re-elected and the term of their election commenced immediately. Robert S. Kapito was newly elected as a Director to the Company and the term of his election took effect upon the consummation of the Transaction.

Proposal 1**

To elect a Board of Directors of the Company.

Independent Director	Votes For	Votes Withheld
George G.C. Parker	1,597,646,058	46,083,560
J. Darrell Duffie	1,517,311,684	126,417,934
Cecilia H. Herbert	1,599,757,544	43,972,074
Charles A. Hurty	1,599,463,459	44,266,159
John E. Kerrigan	1,599,938,757	43,790,861
John E. Martinez	1,599,890,206	43,839,412
Robert H. Silver	1,601,631,280	42,098,338
Interested Director	Votes For	Votes Withheld
Robert S. Kapito	1,600,119,598	43,610,020
Lee T. Kranefuss	1,117,041,744	526,687,874

* Broker non-votes are proxies received by the Fund from brokers or nominees who did not receive instructions from the beneficial owner or other persons entitled to vote and who have no discretionary power to vote on a particular matter. Broker non-votes have the effect of a vote against the proposal.

** Denotes Company-wide proposal and voting results.

26 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 27

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 Russell Domestic Index Funds	Trading Symbol
iShares Russell 3000	IWV
iShares Russell 3000 Growth	IWZ
iShares Russell 3000 Value	IWW
iShares Russell Top 200	IWL
iShares Russell Top 200 Growth	IWY
iShares Russell Top 200 Value	IWX
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds
iShares Dow Jones U.S.	IYY
iShares KLD Socially Responsible Index Funds
iShares FTSE KLD 400 Social	DSI
iShares FTSE KLD Select Social	KLD
iShares NYSE Domestic Index Funds
iShares NYSE Composite	NYC
iShares NYSE 100	NY

iShares Domestic Specialty Index Funds	Trading Symbol
iShares S&P U.S. Preferred Stock	PFF
iShares Dow Jones Select Dividend	DVY
iShares North American Sector/Subsector Index Funds
iShares S&P North American Technology Sector	IGM
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 Natural Resources Sector	IGE
iShares Domestic Sector Index Funds
iShares Dow Jones U.S. Basic Materials Sector	IYM
iShares Dow Jones U.S. Consumer Goods Sector	IYK
iShares Dow Jones U.S. Consumer Services Sector	IYC
iShares Dow Jones U.S. Energy Sector	IYE
iShares Dow Jones U.S. Financial Sector	IYF
iShares Dow Jones U.S. Healthcare Sector	IYH
iShares Dow Jones U.S. Industrial Sector	IYJ
iShares Dow Jones U.S. Technology Sector	IYW
iShares Dow Jones U.S. Telecommunications Sector	IYZ
iShares Dow Jones U.S. Utilities Sector	IDU
iShares Domestic Subsector Index Funds
iShares Dow Jones Transportation Average	IYT
iShares Dow Jones U.S. Aerospace & Defense	ITA
iShares Dow Jones U.S. Broker-Dealers	IAI
iShares Dow Jones U.S. Financial Services	IYG
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 Nasdaq Biotechnology	IBB
iShares Domestic Real Estate Index Funds
iShares Cohen & Steers Realty Majors	ICF
iShares Dow Jones U.S. Real Estate	IYR
iShares FTSE NAREIT Real Estate 50	FTY
iShares FTSE NAREIT Industrial/Office Capped	FIO
iShares FTSE NAREIT Mortgage Plus Capped	REM
iShares FTSE NAREIT Residential Plus Capped	REZ
iShares FTSE NAREIT Retail Capped	RTL
iShares Target Risk Index Funds
iShares S&P Conservative Allocation	AOK
iShares S&P Moderate Allocation	AOM
iShares S&P Growth Allocation	AOR
iShares S&P Aggressive Allocation	AOA

28 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

The iShares^® Family of Funds (Continued)

iShares International Country Index Funds	Trading Symbol
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 S&P/TOPIX 150	ITF
iShares MSCI Malaysia	EWM
iShares MSCI Mexico Investable Market	EWW
iShares MSCI Netherlands Investable Market	EWN
iShares MSCI All Peru Capped	EPU
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 India Nifty 50	INDY
iShares International Index Funds
iShares MSCI ACWI ex US	ACWX
iShares MSCI EAFE	EFA
iShares MSCI EAFE Growth	EFG
iShares MSCI EAFE Value	EFV
iShares MSCI EAFE Small Cap	SCZ
iShares FTSE Developed Small Cap ex-North America	IFSM
iShares MSCI Emerging Markets	EEM
iShares MSCI Emerging Markets Eastern Europe	ESR
iShares MSCI BRIC	BKF
iShares MSCI EMU	EZU
iShares MSCI All Country Asia ex Japan	AAXJ
iShares MSCI Pacific ex-Japan	EPP
iShares S&P Asia 50	AIA
iShares S&P Europe 350	IEV
iShares S&P Latin America 40	ILF
iShares International/Global Real Estate Index Funds
iShares S&P Developed ex-U.S. Property	WPS
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S.	IFGL
iShares FTSE EPRA/NAREIT Developed Asia	IFAS
iShares FTSE EPRA/NAREIT Developed Europe	IFEU
iShares FTSE EPRA/NAREIT North America	IFNA

iShares Target Date Index Funds	Trading Symbol
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 Global Index Funds
iShares MSCI ACWI	ACWI
iShares S&P Global 100	IOO
iShares MSCI Kokusai	TOK
iShares International/Global Sector Index Funds
iShares MSCI ACWI ex US Financials Sector	AXFN
iShares MSCI Emerging Markets Financials Sector	EMFN
iShares MSCI Emerging Markets Materials Sector	EMMT
iShares MSCI Europe Financials Sector	EUFN
iShares MSCI Far East Financials Sector	FEFN
iShares S&P Global Consumer Discretionary Sector	RXI
iShares S&P Global Consumer Staples Sector	KXI
iShares S&P Global Energy Sector	IXC
iShares S&P Global Financials Sector	IXG
iShares S&P Global Healthcare Sector	IXJ
iShares S&P Global Industrials Sector	EXI
iShares S&P Global Materials Sector	MXI
iShares S&P Global Technology Sector	IXN
iShares S&P Global Telecommunications Sector	IXP
iShares S&P Global Utilities Sector	JXI
iShares International/Global Theme Based and Specialty Index Funds
iShares S&P Global Clean Energy	ICLN
iShares S&P Global Infrastructure	IGF
iShares S&P Emerging Markets Infrastructure	EMIF
iShares S&P Global Nuclear Energy	NUCL
iShares S&P Global Timber & Forestry	WOOD
iShares Dow Jones International Select Dividend	IDV
iShares U.S. Multisector Bond Funds
iShares Barclays Aggregate	AGG
iShares Barclays Government/Credit	GBF
iShares Barclays Intermediate Government/Credit	GVI
iShares 10+ Year Government/Credit	GLJ
iShares U.S. Government Bond Funds
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 U.S. Credit Bond Funds
iShares Barclays Credit	CFT
iShares Barclays 1-3 Year Credit	CSJ
iShares Barclays Intermediate Credit	CIU
iShares iBoxx $ Investment Grade Corporate	LQD
iShares 10+ Year Credit	CLY
iShares iBoxx $ High Yield Corporate	HYG

iSHARES FAMILY OF FUNDS 29

The iShares^® Family of Funds (Continued)

iShares AMT-Free Municipal Bond Funds	Trading Symbol
iShares S&P National AMT-Free Municipal	MUB
iShares S&P Short Term National AMT-Free Municipal	SUB
iShares S&P California AMT-Free Municipal	CMF
iShares S&P New York AMT-Free Municipal	NYF
iShares 2012 S&P AMT-Free Municipal Series	MUAA
iShares 2013 S&P AMT-Free Municipal Series	MUAB
iShares 2014 S&P AMT-Free Municipal Series	MUAC
iShares 2015 S&P AMT-Free Municipal Series	MUAD
iShares 2016 S&P AMT-Free Municipal Series	MUAE
iShares 2017 S&P AMT-Free Municipal Series	MUAF

iShares U.S. Securitized Bond Funds	Trading Symbol
iShares Barclays MBS	MBB
iShares International Bond Funds
iShares JPMorgan USD Emerging Markets	EMB
iShares S&P/Citigroup International Treasury	IGOV
iShares S&P/Citigroup 1-3 Year International Treasury	ISHG

The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”). iShares^® is a registered trademark of BlackRock Institutional Trust Company, N.A. The 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., MSCI Inc., MorningstarInc., The NASDAQ OMX Group, 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, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/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.

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 2010 Semi-Annual Report.

iS-2350-0310

30 2010 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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.

Once you have enrolled, you will no longer receive shareholder reports and prospectuses 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 and is available to be viewed or downloaded.

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 notifications sent.

Your information and e-mail 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.

For more information:

WWW.iSHARES.COM

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by SEI Investments Distribution Co. (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 BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the company listed above.

A description of the policies that the Funds use 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 ending 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.

©2010 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners.

iS-SAR-85-0210

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 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 23, 2010

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 23, 2010
By:	/s/ Jack Gee
	Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
	Date: April 23, 2010

EX-99.CERT

N-CSRS Exhibit for Item 12(a)(2): SECTION 302 CERTIFICATIONS EX-99.CERT

I, Michael A. Latham, certify that:

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

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date:	April 23, 2010	/s/ Michael A. Latham	President (Principal Executive Officer)
		Michael A. Latham [Signature]	[Title]

N-CSRS Exhibit for Item 12(a)(2): SECTION 302 CERTIFICATIONS EX-99.CERT

I, Jack Gee, certify that:

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

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date:	April 23, 2010	/s/ Jack Gee	Treasurer and Chief Financial Officer (Principal Financial Officer)
		Jack Gee [Signature]	[Title]

EX-99.906 CERT

Ex.99.906 CERT

N-CSRS Exhibit for Item 12(b): CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Michael A. Latham, President (Principal Executive Officer), and Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer), of iShares, Inc. (the “Registrant”), each certify that:

1. The Registrant’s periodic report on Form N-CSRS for the period ended February 28, 2010 (the “Form N-CSRS”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Form N-CSRS fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date:	April 23, 2010	/s/ Michael A. Latham	President (Principal Executive Officer)
		Michael A. Latham [Signature]	[Title]
Date:	April 23, 2010	/s/ Jack Gee	Treasurer and Chief Financial Officer (Principal Financial Officer)
		Jack Gee [Signature]	[Title]