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 Incorporated

351 West Camden Street, Baltimore, MD 21201

(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, 2011

Date of reporting period: February 28, 2011

Item 1.    Reports to Stockholders.

2011 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES^® MSCI SERIES

FEBRUARY 28, 2011

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iShares MSCI Austria Investable Market Index Fund  |  EWO  |  NYSE Arca

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

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

iShares MSCI EMU Index Fund  |  EZU  |  NYSE Arca

iShares MSCI France Index Fund  |  EWQ  |  NYSE Arca

iShares MSCI Germany Index Fund  |  EWG  |  NYSE Arca

iShares MSCI Italy Index Fund  |  EWI  |  NYSE Arca

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

iShares MSCI Spain Index Fund  |  EWP  |  NYSE Arca

iShares MSCI Sweden Index Fund  |  EWD  |  NYSE Arca

iShares MSCI Switzerland Index Fund  |  EWL  |  NYSE Arca

iShares MSCI United Kingdom Index Fund  |  EWU  |  NYSE Arca

Table of Contents

Fund Performance Overviews	5
Shareholder Expenses	19
Schedules of Investments	21
iShares MSCI Austria Investable Market Index Fund	21
iShares MSCI Belgium Investable Market Index Fund	23
iShares MSCI Emerging Markets Eastern Europe Index Fund	25
iShares MSCI EMU Index Fund	27
iShares MSCI France Index Fund	32
iShares MSCI Germany Index Fund	35
iShares MSCI Italy Index Fund	37
iShares MSCI Netherlands Investable Market Index Fund	39
iShares MSCI Spain Index Fund	41
iShares MSCI Sweden Index Fund	43
iShares MSCI Switzerland Index Fund	45
iShares MSCI United Kingdom Index Fund	47
Financial Statements	50
Financial Highlights	64
Notes to Financial Statements	76

Fund Performance Overview

iSHARES^® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
24.93%	25.25%	24.88%	(2.61)%	(2.67)%	(3.73)%	12.62%	12.49%	12.34%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
24.93%	25.25%	24.88%	(12.37)%	(12.65)%	(17.31)%	228.16%	224.41%	220.24%

Index performance reflects the performance of the MSCI Austria Index^SM through January 31, 2008 and the MSCI Austria Investable Market Index^SM thereafter.

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

Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. 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 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.

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 the MSCI Austria Investable Market Index^SM (the “Index”). The Index consists of stocks traded primarily on the Vienna Stock Exchange. 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, 2011, the total return for the Fund was 32.00%, while the total return for the Index was 32.20%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		40.68	%
Industrial		21.06
Energy		16.84
Basic Materials		9.80
Communications		7.29
Consumer Cyclical		2.33
Consumer Non-Cyclical		1.63
Short-Term and Other Net Assets		0.37
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Erste Group Bank AG		16.62	%
OMV AG		10.25
voestalpine AG		8.32
Telekom Austria AG		7.29
IMMOFINANZ AG		7.20
Andritz AG		4.85
Raiffeisen International Bank Holding AG		4.83
Verbund AG		4.76
Wienerberger AG		4.41
Vienna Insurance Group AG		4.31
TOTAL		72.84	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI BELGIUM INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
12.14%	11.79%	12.00%	(4.80)%	(4.86)%	(5.74)%	4.07%	4.09%	2.87%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
12.14%	11.79%	12.00%	(21.80)%	(22.06)%	(25.60)%	49.04%	49.31%	32.70%

Index performance reflects the performance of the MSCI Belgium Index^SM through November 30, 2007 and the MSCI Belgium Investable Market Index^SM thereafter.

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

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

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 the MSCI Belgium Investable Market Index^SM (the “Index”). The Index consists of stocks traded primarily on the Brussels Stock Exchange. 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, 2011, the total return for the Fund was 17.81%, while the total return for the Index was 16.38%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Consumer Non-Cyclical		39.65	%
Financial		17.47
Basic Materials		12.36
Diversified		9.73
Communications		8.86
Industrial		7.00
Consumer Cyclical		1.93
Technology		0.57
Short-Term and Other Net Assets		2.43
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Anheuser-Busch InBev NV		22.55	%
Delhaize Group SA		6.38
Groupe Bruxelles Lambert SA		6.06
Solvay SA		5.35
KBC Groep NV		5.10
Ageas		4.93
Umicore		4.85
Belgacom SA		4.50
Colruyt SA		3.76
Bekaert NV		3.62
TOTAL		67.10	%

6 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/11			Inception to 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
31.68%	31.54%	31.03%	26.11%	26.08%	25.68%	38.90%	38.85%	38.23%

Total returns for the period since inception are calculated from the inception date of the Fund (9/30/09). “Average Annual Total Returns” represent the average annual change in value of an investment over the periods indicated. “Cumulative Total Returns” represent the total change in value of an investment over the periods indicated.

Certain sectors and markets performed exceptionally well based on market conditions during the six-month 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 (10/2/09), 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 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.

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 six-month period ended February 28, 2011, the total return for the Fund was 32.68%, while the total return for the Index was 32.52%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Energy		47.44	%
Financial		21.93
Basic Materials		13.03
Utilities		6.99
Communications		6.18
Consumer Non-Cyclical		3.69
Industrial		0.54
Technology		0.18
Short-Term and Other Net Assets		0.02
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Gazprom OAO SP ADR (Russia)		21.15	%
LUKOIL OAO SP ADR (Russia)		9.03
Sberbank of Russia GDR (Russia)		8.16
MMC Norilsk Nickel OJSC SP ADR (Russia)		4.32
Rosneft Oil Co. OJSC SP GDR (Russia)		4.12
NovaTek OAO SP GDR (Russia)		3.21
Mobile TeleSystems OJSC SP ADR (Russia)		2.65
Powszechna Kasa Oszczednosci Bank Polski SA (Poland)		2.59
Tatneft OAO SP ADR (Russia)		2.45
Surgutneftegas OJSC SP ADR (Russia)		2.35
TOTAL		60.03	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI EMU INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
17.87%	18.46%	18.05%	1.60%	1.62%	1.74%	3.86%	3.79%	4.06%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
17.87%	18.46%	18.05%	8.26%	8.35%	9.03%	46.05%	45.08%	48.84%

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

Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. 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 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.

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 the MSCI EMU Index^SM (the “Index”). The Index consists of stocks from Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal and Spain. 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, 2011, the total return for the Fund was 26.31%, while the total return for the Index was 26.63%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		23.32	%
Consumer Non-Cyclical		13.73
Industrial		13.08
Communications		11.33
Basic Materials		9.66
Utilities		8.35
Energy		7.90
Consumer Cyclical		7.63
Technology		3.25
Diversified		1.57
Short-Term and Other Net Assets		0.18
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Total SA (France)		3.64	%
Siemens AG Registered (Germany)		3.12
Telefonica SA (Spain)		2.94
Banco Santander SA (Spain)		2.89
BASF SE (Germany)		2.15
BNP Paribas (France)		2.10
Sanofi-Aventis (France)		2.04
Allianz SE Registered (Germany)		1.84
Bayer AG (Germany)		1.81
Daimler AG Registered (Germany)		1.79
TOTAL		24.32	%

8 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI FRANCE INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
17.04%	17.37%	17.29%	2.28%	2.27%	2.48%	4.03%	4.00%	4.27%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
17.04%	17.37%	17.29%	11.93%	11.88%	13.03%	48.44%	48.07%	51.87%

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

Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. 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 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.

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 the MSCI France Index^SM (the “Index”). The Index consists of stocks traded primarily on the Paris Stock Exchange. 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, 2011, the total return for the Fund was 28.56%, while the total return for the Index was 28.91%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Consumer Non-Cyclical		19.36	%
Financial		18.77
Industrial		15.32
Energy		12.44
Communications		10.41
Utilities		6.80
Basic Materials		6.03
Consumer Cyclical		5.11
Diversified		3.32
Technology		2.33
Short-Term and Other Net Assets		0.11
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Total SA		11.15	%
BNP Paribas		6.44
Sanofi-Aventis		6.23
GDF Suez		4.32
Societe Generale		3.84
France Telecom SA		3.53
Schneider Electric SA		3.46
LVMH Moet Hennessy Louis Vuitton SA		3.32
Danone SA		3.15
L’Air Liquide SA		3.15
TOTAL		48.59	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® MSCI GERMANY INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
30.90%	31.53%	31.09%	5.85%	5.82%	5.99%	5.22%	5.25%	5.32%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
30.90%	31.53%	31.09%	32.86%	32.71%	33.75%	66.32%	66.84%	67.95%

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

Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. 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 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.

10 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

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 the MSCI Germany Index^SM (the “Index”). The Index consists of stocks traded primarily on the Frankfurt Stock Exchange. 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, 2011, the total return for the Fund was 33.47%, while the total return for the Index was 33.83%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Basic Materials		21.01	%
Financial		18.47
Consumer Cyclical		16.28
Industrial		15.86
Utilities		9.10
Consumer Non-Cyclical		7.45
Technology		6.05
Communications		5.02
Diversified		0.56
Short-Term and Other Net Assets		0.20
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Siemens AG Registered		11.07	%
BASF SE		7.62
Allianz SE Registered		6.43
Bayer AG		6.39
Daimler AG Registered		6.35
Deutsche Bank AG Registered		5.95
E.ON AG		5.82
SAP AG		4.83
Deutsche Telekom AG Registered		3.95
Muenchener Rueckversicherungs- Gesellschaft AG Registered		3.31
TOTAL		61.72	%

FUND PERFORMANCE OVERVIEWS 11

Fund Performance Overview

iSHARES^® MSCI ITALY INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
11.49%	11.50%	12.35%	(3.99)%	(4.06)%	(4.04)%	1.90%	1.88%	1.83%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
11.49%	11.50%	12.35%	(18.41)%	(18.73)%	(18.63)%	20.66%	20.42%	19.94%

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

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

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 the MSCI Italy Index^SM (the “Index”). The Index consists of stocks traded primarily on the Milan Stock Exchange. 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, 2011, the total return for the Fund was 24.46%, while the total return for the Index was 24.58%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		31.84	%
Energy		23.79
Utilities		16.05
Consumer Cyclical		7.57
Industrial		7.08
Communications		6.85
Consumer Non-Cyclical		5.85
Diversified		0.84
Short-Term and Other Net Assets		0.13
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Eni SpA		18.40	%
Enel SpA		10.88
UniCredit SpA		10.21
Intesa Sanpaolo SpA		7.34
Assicurazioni Generali SpA		4.92
Saipem SpA		4.31
Fiat Industrial SpA		3.90
Telecom Italia SpA		3.62
Tenaris SA		3.55
Unione di Banche Italiane ScpA		2.52
TOTAL		69.65	%

12 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
19.90%	19.99%	20.32%	3.70%	3.72%	4.21%	2.90%	2.90%	3.63%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
19.90%	19.99%	20.32%	19.90%	20.04%	22.93%	33.05%	33.12%	42.85%

Index performance reflects the performance of the MSCI Netherlands Index^SM through January 31, 2008 and the MSCI Netherlands Investable Market Index^SM thereafter.

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

Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. 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 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 OVERVIEWS 13

Fund Performance Overview (Continued)

iSHARES^® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND

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 the MSCI Netherlands Investable Market Index^SM (the “Index”). The Index consists of stocks traded primarily on the Amsterdam Stock Exchange. 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, 2011, the total return for the Fund was 25.77%, while the total return for the Index was 26.06%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Consumer Non-Cyclical		28.72	%
Financial		22.36
Industrial		16.95
Communications		12.97
Basic Materials		7.58
Technology		6.28
Energy		2.97
Diversified		0.89
Consumer Cyclical		0.41
Short-Term and Other Net Assets		0.87
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Unilever NV CVA		15.04	%
ING Groep NV CVA		14.26
Koninklijke Philips Electronics NV		9.57
Koninklijke KPN NV		8.00
ASML Holding NV		4.84
Akzo Nobel NV		4.77
Koninklijke Ahold NV		4.24
AEGON NV		3.57
Heineken NV		3.55
TNT NV		2.98
TOTAL		70.82	%

14 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SPAIN INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
10.17%	10.03%	9.25%	5.12%	5.06%	5.00%	8.31%	8.27%	8.10%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
10.17%	10.03%	9.25%	28.38%	28.02%	27.61%	122.12%	121.33%	117.82%

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

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

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 the MSCI Spain Index^SM (the “Index”). The Index consists of stocks traded primarily on the Madrid Stock Exchange. 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, 2011, the total return for the Fund was 17.26%, while the total return for the Index was 15.62%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		44.46	%
Communications		19.60
Utilities		11.16
Industrial		6.97
Energy		6.17
Consumer Cyclical		4.79
Consumer Non-Cyclical		3.60
Technology		2.14
Basic Materials		0.99
Short-Term and Other Net Assets		0.12
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Banco Santander SA		22.00	%
Telefonica SA		18.68
Banco Bilbao Vizcaya Argentaria SA		9.09
Iberdrola SA		4.97
Repsol YPF SA		4.92
Industria de Diseno Textil SA		3.87
Criteria CaixaCorp SA		3.82
Abertis Infraestructuras SA		2.79
Actividades de Construcciones y Servicios SA		2.63
Mapfre SA		2.62
TOTAL		75.39	%

FUND PERFORMANCE OVERVIEWS 15

Fund Performance Overview

iSHARES^® MSCI SWEDEN INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
37.52%	37.49%	37.65%	9.29%	9.21%	9.29%	8.80%	8.81%	8.57%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
37.52%	37.49%	37.65%	55.95%	55.38%	55.89%	132.33%	132.59%	127.58%

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

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

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

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 the MSCI Sweden Index^SM (the “Index”). The Index consists of stocks traded primarily on the Stockholm Stock Exchange. 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, 2011, the total return for the Fund was 31.11%, while the total return for the Index was 31.45%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Industrial		29.90	%
Financial		25.10
Communications		20.66
Consumer Cyclical		12.85
Basic Materials		5.57
Consumer Non-Cyclical		5.28
Diversified		0.58
Short-Term and Other Net Assets		0.06
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Telefonaktiebolaget LM Ericsson Class B		10.67	%
Hennes & Mauritz AB Class B		9.20
Nordea Bank AB		8.24
Volvo AB Class B		6.60
TeliaSonera AB		5.18
Sandvik AB		4.97
Atlas Copco AB Class A		4.68
Svenska Handelsbanken AB Class A		4.55
Skandinaviska Enskilda Banken AB Class A		3.55
Swedbank AB Class A		3.48
TOTAL		61.12	%

16 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SWITZERLAND INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
19.16%	19.38%	17.17%	6.31%	6.33%	5.20%	6.17%	6.17%	6.38%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
19.16%	19.38%	17.17%	35.77%	35.94%	28.84%	81.96%	82.03%	85.59%

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

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

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 the MSCI Switzerland Index^SM (the “Index”). The Index consists of stocks traded primarily on the Zurich Stock Exchange. 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, 2011, the total return for the Fund was 18.44%, while the total return for the Index was 17.04%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Consumer Non-Cyclical		49.97	%
Financial		23.30
Industrial		10.07
Consumer Cyclical		6.09
Basic Materials		5.97
Energy		2.29
Communications		1.13
Technology		0.37
Short-Term and Other Net Assets		0.81
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Nestle SA Registered		20.00	%
Novartis AG Registered		11.63
Roche Holding AG Genusschein		10.42
UBS AG Registered		6.58
ABB Ltd. Registered		4.89
Zurich Financial Services AG Registered		4.87
Credit Suisse Group AG Registered		4.27
Syngenta AG Registered		3.99
Compagnie Financiere Richemont SA Class A Bearer Units		3.81
Swiss Reinsurance Co. Registered		2.83
TOTAL		73.29	%

FUND PERFORMANCE OVERVIEWS 17

Fund Performance Overview

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
22.57%	23.09%	23.32%	2.24%	2.23%	2.86%	4.17%	4.21%	4.92%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
22.57%	23.09%	23.32%	11.71%	11.67%	15.14%	50.44%	51.00%	61.59%

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

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

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 the MSCI United Kingdom Index^SM (the “Index”). The Index consists of stocks traded primarily on the London Stock Exchange. 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, 2011, the total return for the Fund was 22.47%, while the total return for the Index was 22.91%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Consumer Non-Cyclical		23.20	%
Financial		21.20
Energy		20.09
Basic Materials		13.84
Communications		9.60
Utilities		4.00
Consumer Cyclical		3.48
Industrial		3.13
Technology		1.00
Short-Term and Other Net Assets		0.46
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
HSBC Holdings PLC		7.77	%
BP PLC		6.02
Vodafone Group PLC		5.90
Royal Dutch Shell PLC Class A		5.14
Rio Tinto PLC		4.05
GlaxoSmithKline PLC		3.98
Royal Dutch Shell PLC Class B		3.84
BHP Billiton PLC		3.48
BG Group PLC		3.28
British American Tobacco PLC		3.19
TOTAL		46.65	%

18 2011 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, 2010 to February 28, 2011.

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 (9/1/10)		Ending Account Value (2/28/11)		Annualized Expense Ratio			Expenses Paid During Perioda (9/1/10 to 2/28/11)
Austria Investable Market
Actual		$1,000.00		$1,320.00		0.52	%		$2.99
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.52			2.61
Belgium Investable Market
Actual		1,000.00		1,178.10		0.53			2.86
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
Emerging Markets Eastern Europe
Actual		1,000.00		1,326.80		0.67			3.87
Hypothetical (5% return before expenses)		1,000.00		1,021.50		0.67			3.36
EMU
Actual		1,000.00		1,263.10		0.53			2.97
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66

SHAREHOLDER EXPENSES 19

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (9/1/10)		Ending Account Value (2/28/11)		Annualized Expense Ratio			Expenses Paid During Perioda (9/1/10 to 2/28/11)
France
Actual		$1,000.00		$1,285.60		0.53	%		$3.00
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
Germany
Actual		1,000.00		1,334.70		0.53			3.07
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
Italy
Actual		1,000.00		1,244.60		0.52			2.89
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.52			2.61
Netherlands Investable Market
Actual		1,000.00		1,257.70		0.53			2.97
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
Spain
Actual		1,000.00		1,172.60		0.53			2.86
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
Sweden
Actual		1,000.00		1,311.10		0.52			2.98
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.52			2.61
Switzerland
Actual		1,000.00		1,184.40		0.53			2.87
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
United Kingdom
Actual		1,000.00		1,224.70		0.53			2.92
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66

^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).

20 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.63%
AUTO MANUFACTURERS – 0.41%
Rosenbauer International AG		17,108	$	850,665
				850,665
BANKS – 21.44%
Erste Group Bank AG		649,922		34,335,969
Raiffeisen International Bank Holding AG		166,030		9,975,449
				44,311,418
BIOTECHNOLOGY – 0.87%
Intercell AGa		149,513		1,791,452
				1,791,452
BUILDING MATERIALS – 4.41%
Wienerberger AGa		440,349		9,117,070
				9,117,070
COMMERCIAL SERVICES – 0.76%
Kapsch TrafficCom AG		17,340		1,568,726
				1,568,726
ELECTRICAL COMPONENTS & EQUIPMENT – 1.57%
Zumtobel AG		112,203		3,237,424
				3,237,424
ELECTRONICS – 0.62%
Austria Technologie & Systemtechnik AG		58,513		1,285,009
				1,285,009
ENERGY – ALTERNATE SOURCES – 4.76%
Verbund AG		256,984		9,839,113
				9,839,113
ENGINEERING & CONSTRUCTION – 1.44%
Flughafen Wien AG		44,135		2,966,888
				2,966,888
ENTERTAINMENT – 1.91%
bwin Interactive Entertainment AG		115,570		3,958,708
				3,958,708
ENVIRONMENTAL CONTROL – 0.55%
BWT AG		40,950		1,131,203
				1,131,203
FOREST PRODUCTS & PAPER – 1.49%
Mayr-Melnhof Karton AG		26,936		3,071,191
				3,071,191

Security	Shares		Value
INSURANCE – 4.31%
Vienna Insurance Group AG		155,064	$	8,912,869
				8,912,869
IRON & STEEL – 8.32%
voestalpine AG		371,735		17,187,419
				17,187,419
MACHINERY – 4.85%
Andritz AG		118,667		10,029,217
				10,029,217
MACHINERY - CONSTRUCTION & MINING – 1.00%
Palfinger AGa,b		55,601		2,073,495
				2,073,495
MANUFACTURING – 4.68%
RHI AGa		106,197		3,953,741
Semperit AG Holding		40,040		2,116,456
Strabag SE		122,668		3,610,533
				9,680,730
OIL & GAS – 10.25%
OMV AG		497,952		21,183,359
				21,183,359
OIL & GAS SERVICES – 1.83%
Schoeller-Bleckmann Oilfield Equipment AG		44,226		3,775,050
				3,775,050
REAL ESTATE – 14.93%
Atrium European Real Estate Ltd.		784,875		5,036,587
CA Immobilien Anlagen AGa,b		264,264		4,549,744
conwert Immobilien Invest SE		296,933		4,962,499
IMMOEAST AG Escrowa,c		998,769		138
IMMOFINANZ AGa		3,368,125		14,886,576
IMMOFINANZ AG Escrowa,c		897,599		124
Sparkassen Immobilien AGa		202,384		1,411,361
				30,847,029
TELECOMMUNICATIONS – 7.29%
Telekom Austria AG		1,053,507		15,060,327
				15,060,327

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
TRANSPORTATION – 1.94%
Oesterreichische Post AG		129,129	$	4,004,025
				4,004,025
TOTAL COMMON STOCKS
(Cost: $243,968,096)				205,882,387
RIGHTS – 0.00%
REAL ESTATE – 0.00%
IMMOFINANZ AGa,b,c		3,368,125		465
				465
TOTAL RIGHTS
(Cost: $0)				465
SHORT-TERM INVESTMENTS – 0.88%
MONEY MARKET FUNDS – 0.88%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.23%d,e,f		1,591,096		1,591,096
BlackRock Cash Funds: Prime, SL Agency Shares
0.22%d,e,f		228,654		228,654
BlackRock Cash Funds: Treasury, SL Agency Shares
0.07%d,e		2,680		2,680
				1,822,430
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,822,430)				1,822,430
TOTAL INVESTMENTS IN SECURITIES – 100.51%
(Cost: $245,790,526)				207,705,282
Other Assets, Less Liabilities –(0.51)%				(1,049,105)
NET ASSETS – 100.00%			$	206,656,177

^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.

22 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI BELGIUM INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 97.35%
AGRICULTURE – 0.74%
SIPEF NV		3,344	$	310,933
				310,933
BANKS – 6.78%
Dexia SAa		160,817		702,567
KBC Groep NVa		50,996		2,134,201
				2,836,768
BEVERAGES – 22.55%
Anheuser-Busch InBev NV		169,176		9,443,608
				9,443,608
BIOTECHNOLOGY – 0.20%
Ablynx NVa		7,652		83,178
Devgen NVa		24		181
				83,359
BUILDING MATERIALS – 0.13%
Deceuninck NVa		21,356		55,159
				55,159
CHEMICALS – 6.17%
Recticel SA		7,372		71,275
Solvay SA		19,076		2,239,561
Tessenderlo Chemie NV		8,056		272,722
				2,583,558
COMPUTERS – 0.21%
Econocom Group SA		4,630		89,593
				89,593
DISTRIBUTION & WHOLESALE – 1.55%
SA D’Ieteren NV		9,578		649,286
				649,286
DIVERSIFIED FINANCIAL SERVICES – 0.31%
KBC Ancora SCAa		6,612		130,960
				130,960
ELECTRICAL COMPONENTS & EQUIPMENT – 3.63%
Bekaert NV		13,985		1,517,665
				1,517,665
ELECTRONICS – 1.17%
Barco NVa		3,572		276,334
EVS Broadcast Equipment SA		3,496		213,041
				489,375

Security	Shares		Value
ENGINEERING & CONSTRUCTION – 0.64%
Compagnie d’Entreprises CFE SA		2,915	$	218,421
Hamon & Cie (International) SA		1,292		51,109
				269,530
ENTERTAINMENT – 0.38%
Kinepolis Group NV		2,280		157,457
				157,457
FOOD – 10.13%
Colruyt SA		31,258		1,572,597
Delhaize Group SA		34,504		2,671,171
				4,243,768
HEALTH CARE – PRODUCTS – 0.18%
Ion Beam Applications SAa		6,159		74,009
				74,009
HOLDING COMPANIES – DIVERSIFIED – 9.73%
Ackermans & van Haaren NV		9,044		785,345
Compagnie Nationale a Portefeuille SA		13,420		752,921
Groupe Bruxelles Lambert SA		27,588		2,537,763
				4,076,029
INSURANCE – 4.93%
Ageas		649,420		2,063,052
				2,063,052
INVESTMENT COMPANIES – 0.58%
RHJ International SAa		28,730		243,647
				243,647
MANUFACTURING – 0.54%
Agfa-Gevaert NVa		49,558		227,252
				227,252
MEDIA – 0.11%
Roularta Media Group NVa		1,292		46,040
				46,040
MINING – 5.97%
Nyrstar NVb		34,512		468,099
Umicore		40,283		2,031,098
				2,499,197
PHARMACEUTICALS – 5.85%
Arseus NV		10,564		168,672
Galapagos NVa		10,412		164,375
Omega Pharma SA		6,916		334,238
ThromboGenics NVa		10,514		301,766

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BELGIUM INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
UCB SA		39,779	$	1,480,158
				2,449,209
REAL ESTATE – 0.19%
Atenor Group SA		1,734		79,155
				79,155
REAL ESTATE INVESTMENT TRUSTS – 3.86%
Befimmo SCA		6,190		517,509
Cofinimmo SA		4,408		614,617
Intervest Offices NV		2,888		95,734
Leasinvest Real Estate SCA		684		63,865
Warehouses De Pauw SCA		4,118		220,060
Wereldhave Belgium NV		1,064		105,091
				1,616,876
SEMICONDUCTORS – 0.35%
Melexis NV		8,515		147,247
				147,247
TELECOMMUNICATIONS – 8.75%
Belgacom SA		50,236		1,885,564
Mobistar SA		12,510		800,009
Telenet Group Holding NVa		21,827		979,792
				3,665,365
TRANSPORTATION – 0.89%
Compagnie Maritime Belge SA		5,928		178,657
Euronav SA		7,676		129,770
Exmar NV		7,600		62,038
				370,465
VENTURE CAPITAL – 0.83%
GIMV NV		6,262		347,606
				347,606
TOTAL COMMON STOCKS
(Cost: $57,616,103)				40,766,168
RIGHTS – 0.22%
MANUFACTURING – 0.00%
Agfa-Gevaert NVa		24,882		69
				69

Security	Shares		Value
MINING – 0.22%
Nyrstar NVa		34,512	$	93,429
				93,429
TOTAL RIGHTS
(Cost: $113,358)				93,498
SHORT-TERM INVESTMENTS – 0.75%
MONEY MARKET FUNDS – 0.75%
BlackRock Cash Funds: Institutional,
SL Agency Shares
0.23%c,d,e		271,261		271,261
BlackRock Cash Funds: Prime,
SL Agency Shares
0.22%c,d,e		38,982		38,982
BlackRock Cash Funds: Treasury,
SL Agency Shares
0.07%c,d		3,361		3,361
				313,604
TOTAL SHORT-TERM INVESTMENTS
(Cost: $313,604)				313,604
TOTAL INVESTMENTS IN SECURITIES – 98.32%
(Cost: $58,043,065)				41,173,270
Other Assets, Less Liabilities – 1.68%				703,081
NET ASSETS – 100.00%			$	41,876,351

^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.

24 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 98.15%
CZECH REPUBLIC – 3.86%
CEZ AS		15,200	$	697,439
Komercni Banka AS		1,273		306,475
Telefonica O2 Czech Republic AS		10,583		239,799
				1,243,713
HUNGARY – 4.33%
Magyar Telekom Telecommunications PLC		16,378		46,036
MOL Hungarian Oil and Gas Nyrta		3,933		477,517
OTP Bank Nyrta		19,456		583,605
Richter Gedeon Nyrt		1,501		290,743
				1,397,901
POLAND – 17.04%
Asseco Poland SA		3,287		58,693
Bank Handlowy w Warszawie SA		3,078		100,271
Bank Millennium SAa		31,085		60,650
Bank Pekao SA		10,621		608,363
Bank Zachodni WBK SA		2,071		162,641
BRE Bank SAa		1,292		139,907
Cyfrowy Polsat SA		10,488		57,334
ENEA SA		5,377		41,028
Getin Holding SAa		30,647		139,666
Globe Trade Centre SAa		10,013		73,750
Grupa Lotos SAa		5,111		71,711
ING Bank Slaski SAa		342		101,582
Kernel Holding SAa		4,161		120,184
KGHM Polska Miedz SA		11,457		700,557
PBG SA		988		68,158
Polska Grupa Energetyczna SA		49,343		389,222
Polski Koncern Naftowy Orlen SAa		30,115		478,457
Polskie Gornictwo Naftowe i Gazownictwo SA		140,923		191,488
Powszechna Kasa Oszczednosci Bank Polski SA		57,190		836,684
Powszechny Zaklad Ubezpieczen SA		3,534		427,752
Tauron Polska Energia SAa		106,400		228,730
Telekomunikacja Polska SA		59,565		358,824
TVN SA		13,642		82,228
				5,497,880

Security	Shares		Value
RUSSIA – 72.92%
Comstar United Telesystems OJSC SP GDRa		17,670	$	120,244
Federal Grid Co. of Unified Energy System OJSCa		23,995,100		350,098
Gazprom OAO SP ADR		231,918		6,823,028
LUKOIL OAO SP ADR		41,191		2,914,263
Magnit OJSC SP GDRb		20,539		583,308
Mechel OAO SP ADR		13,072		397,781
MMC Norilsk Nickel OJSC SP ADR		57,744		1,394,518
Mobile TeleSystems OJSC SP ADR		45,372		854,355
NovaTek OAO SP GDRb		7,961		1,034,134
Novolipetsk Steel OJSC SP GDRb		8,493		389,829
OGK-4 OJSCa		988,000		90,053
Polymetal OJSC SP GDRa		6,023		114,805
Polyus Gold OJSC SP ADR		8,547		287,350
Raspadskaya OAOa		5,700		44,346
Rosneft Oil Co. OJSC SP GDRb		140,644		1,327,679
RusHydro OJSCa		8,949,000		458,389
Sberbank of Russia		3,674		13,000
Sberbank of Russia GDRb		6,808		2,632,899
Severstal OAO SP GDRb		19,120		364,618
Sistema JSFC SP GDRb		9,272		236,343
Surgutneftegas OJSC SP ADR		65,376		759,669
Tatneft OAO SP ADR		18,910		789,492
TMK OAO SP GDRa,b		5,320		106,400
Uralkali OJSC SP GDRb		13,533		553,094
VTB Bank OJSC		23,997,999		84,167
VTB Bank OJSC SP GDRb		87,400		605,682
Wimm-Bill-Dann Foods OJSC SP ADR		6,023		195,025
				23,524,569
TOTAL COMMON STOCKS
(Cost: $26,766,380)				31,664,063
PREFERRED STOCKS – 1.83%
RUSSIA – 1.83%
Sberbank of Russia		80,465		197,156
Surgutneftegas OJSC		435,100		257,837
Transneft OAO SP ADR		95		134,658
				589,651
TOTAL PREFERRED STOCKS
(Cost: $554,495)				589,651

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND

February 28, 2011

Security	Shares		Value
SHORT-TERM INVESTMENTS – 0.02%
MONEY MARKET FUNDS – 0.02%
BlackRock Cash Funds: Treasury,
SL Agency Shares
0.07%c,d		8,366	$	8,366
				8,366
TOTAL SHORT-TERM INVESTMENTS
(Cost: $8,366)				8,366
TOTAL INVESTMENTS IN SECURITIES – 100.00%
(Cost: $27,329,241)				32,262,080
Other Assets, Less Liabilities – (0.00)%				(643)
NET ASSETS – 100.00%			$	32,261,437

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  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.

26 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 97.98%
AUSTRIA – 1.07%
Erste Group Bank AG		43,632	$	2,305,118
IMMOEAST AG Escrowa,b		105,078		15
IMMOFINANZ AGa		226,140		999,503
IMMOFINANZ AG Escrowa,b		68,575		9
OMV AG		35,404		1,506,120
Raiffeisen International Bank Holding AG		11,248		675,805
Telekom Austria AG		74,600		1,066,438
Verbund AG		15,476		592,528
Vienna Insurance Group AG		8,692		499,604
voestalpine AG		23,744		1,097,820
				8,742,960
BELGIUM – 2.97%
Ageas		509,012		1,617,009
Anheuser-Busch InBev NV		166,632		9,301,599
Bekaert NV		8,904		966,270
Belgacom SA		33,496		1,257,243
Colruyt SA		17,828		896,930
Compagnie Nationale a Portefeuille SA		5,936		333,035
Delhaize Group SA		23,532		1,821,760
Dexia SAa		125,897		550,011
Groupe Bruxelles Lambert SA		18,020		1,657,623
KBC Groep NVa		37,312		1,561,521
Mobistar SA		5,936		379,605
Solvay SA		13,780		1,617,800
UCB SA		24,099		896,712
Umicore		26,924		1,357,527
				24,214,645
FINLAND – 3.39%
Elisa OYJ		30,952		707,528
Fortum OYJ		99,450		3,083,740
Kesko OYJ Class B		15,861		683,724
Kone OYJ Class B		35,616		1,945,576
Metso OYJ		30,316		1,568,543
Neste Oil OYJ		29,256		519,248
Nokia OYJ		857,540		7,438,248
Nokian Renkaat OYJ		24,168		982,732
Orion OYJ Class B		22,472		514,616
Outokumpu OYJ		31,164		559,999

Security	Shares		Value
Pohjola Bank PLC		32,436	$	444,422
Rautaruukki OYJ		20,352		472,813
Sampo OYJ Class A		95,612		2,962,090
Sanoma OYJ		20,462		450,216
Stora Enso OYJ Class R		137,164		1,546,867
UPM-Kymmene OYJ		120,808		2,401,116
Wartsila OYJ		18,656		1,435,259
				27,716,737
FRANCE – 32.66%
Accor SA		34,132		1,606,402
Aeroports de Paris		6,997		620,735
Air France-KLMa		30,104		492,719
Alcatel-Lucenta		534,028		2,645,770
ALSTOM		47,064		2,809,183
ArcelorMittal		198,660		7,305,613
Atos Origin SAa		9,752		564,977
AXA		393,260		8,267,059
BioMerieux SA		2,756		293,678
BNP Paribas		220,056		17,197,004
Bouygues SA		53,424		2,472,308
Bureau Veritas SA		11,236		868,297
Cap Gemini SA		34,344		2,008,438
Carrefour SA		137,164		6,740,665
Casino Guichard-Perrachon SA		12,932		1,267,822
Christian Dior SA		14,628		2,110,328
CNP Assurances SA		34,768		771,707
Compagnie de Saint-Gobain		90,736		5,429,688
Compagnie Generale de Geophysique- Veritasa		33,072		1,227,853
Compagnie Generale des Etablissements Michelin Class B		40,857		3,329,470
Credit Agricole SA		222,388		3,907,105
Danone SA		133,984		8,407,218
Dassault Systemes SA		13,356		1,023,641
Edenred SAa		34,465		908,981
Eiffage SA		9,964		593,774
Electricite de France		59,572		2,658,906
Eramet		1,272		459,865
Essilor International SA		46,640		3,333,692
Eurazeo		6,784		504,672
European Aeronautic Defence and Space Co. NVa		94,920		2,747,930

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2011

Security	Shares		Value
Eutelsat Communications		23,108	$	922,874
Fonciere des Regions		5,936		645,000
France Telecom SA		426,332		9,439,263
GDF Suez		284,080		11,525,909
Gecina SA		4,452		577,216
Groupe Eurotunnel SA		121,010		1,219,948
Icade		5,088		570,918
Iliad SA		3,392		380,237
Imerys SA		8,692		610,474
JCDecaux SAa		14,636		472,936
Klepierre		21,200		827,640
L’Air Liquide SA		64,873		8,405,620
L’Oreal SA		55,120		6,413,339
Lafarge SA		45,792		2,779,430
Lagardere SCA		26,712		1,203,134
Legrand SA		34,556		1,450,715
LVMH Moet Hennessy Louis Vuitton SA		56,392		8,898,777
M6-Metropole Television		15,688		396,963
Natixisa		200,976		1,198,903
Neopost SA		7,632		724,610
PagesJaunes Groupe SAc		26,935		262,911
Pernod Ricard SA		46,004		4,245,156
PPR SA		17,384		2,641,186
PSA Peugeot Citroen SAa		34,556		1,384,850
Publicis Groupe SA		27,984		1,597,660
Renault SAa		44,520		2,731,124
Safran SA		39,220		1,396,520
Sanofi-Aventis		240,832		16,631,860
Schneider Electric SA		55,756		9,233,523
SCOR SE		38,584		1,134,858
SES SA FDR		68,499		1,764,965
Societe BIC SA		5,936		507,506
Societe Generale		145,008		10,204,525
Societe Television Francaise 1		28,412		552,537
Sodexo		22,260		1,533,125
STMicroelectronics NV		146,280		1,880,203
Suez Environnement SA		60,632		1,314,795
Technip SA		23,108		2,283,326
Thales SA		20,564		779,662
Total SA		485,480		29,778,907
Unibail-Rodamco SE		21,200		4,266,306
Vallourec SA		25,228		2,615,808

Security	Shares		Value
Veolia Environnement		81,408	$	2,679,463
Vinci SA		100,276		6,041,424
Vivendi SA		284,716		8,124,541
				266,826,147
GERMANY – 26.14%
Adidas AG		47,912		3,077,187
Allianz SE Registered		104,516		15,070,925
Axel Springer AG		3,392		553,302
BASF SE		210,516		17,521,483
Bayer AG		190,376		14,772,383
Bayerische Motoren Werke AG		76,532		6,213,400
Beiersdorf AG		23,532		1,413,855
Brenntag AGa		7,208		754,144
Celesio AG		16,960		469,674
Commerzbank AGa		194,344		1,676,601
Continental AGa		11,660		986,419
Daimler AG Registereda		207,548		14,634,266
Deutsche Bank AG Registered		213,908		13,762,050
Deutsche Boerse AG		44,520		3,421,361
Deutsche Lufthansa AG Registereda		52,364		1,071,497
Deutsche Post AG Registered		196,313		3,603,551
Deutsche Telekom AG Registered		653,384		8,794,415
E.ON AG		414,460		13,610,052
Fraport AG		7,844		559,258
Fresenius Medical Care AG & Co. KGaA		44,308		2,935,985
Fresenius SE		25,016		2,284,240
GEA Group AG		38,290		1,184,385
Hannover Rueckversicherung AG Registered		14,840		864,769
HeidelbergCement AG		32,012		2,243,026
Henkel AG & Co. KGaA		29,468		1,505,945
Hochtief AG		9,964		982,489
Infineon Technologies AG		252,916		2,769,469
K+S AG		32,860		2,539,360
Kabel Deutschland Holding AGa		12,084		658,938
LANXESS AG		18,868		1,404,660
Linde AG		38,584		5,894,121
MAN SE		24,592		3,125,255
Merck KGaA		14,840		1,342,759
METRO AG		29,683		2,172,903

28 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2011

Security	Shares		Value
Muenchener Rueckversicherungs- Gesellschaft AG Registered		43,460	$	7,260,261
Puma AG		1,272		378,609
QIAGEN NVa		52,788		1,094,391
RWE AG		96,292		6,504,958
Salzgitter AG		9,540		792,707
SAP AG		197,584		11,931,322
Siemens AG Registered		188,892		25,461,004
Suedzucker AG		16,324		448,680
ThyssenKrupp AG		75,142		3,127,077
TUI AGa		33,690		441,920
United Internet AG Registered		29,470		510,835
Volkswagen AG		6,572		998,497
Wacker Chemie AG		3,740		690,653
				213,515,041
GREECE – 0.87%
Alpha Bank AEa		105,346		698,419
Bank of Cyprus Public Co. Ltd.		179,939		695,889
Coca-Cola Hellenic Bottling Co. SA SP ADR		41,767		1,136,898
EFG Eurobank Ergasias SAa		71,926		460,957
Hellenic Telecommunications Organization SA SP ADR		113,931		566,237
National Bank of Greece SA SP ADRc		1,073,992		2,019,105
OPAP SA		53,110		1,109,869
Public Power Corp. SA		27,000		418,048
				7,105,422
IRELAND – 0.80%
Anglo Irish Bank Corp. Ltd.a,b		446,666		62
Bank of Irelanda		806,024		392,988
CRH PLC		163,452		3,789,380
Elan Corp. PLCa		116,816		764,297
Kerry Group PLC Class A		32,224		1,170,555
Ryanair Holdings PLC		43,520		202,570
Ryanair Holdings PLC SP ADR		7,878		224,681
				6,544,533
ITALY – 9.08%
A2A SpA		224,744		360,083
Assicurazioni Generali SpA		270,300		6,119,017
Atlantia SpA		65,705		1,506,479
Autogrill SpAa		27,772		393,177
Banca Carige SpAc		139,284		336,279

Security	Shares		Value
Banca Monte dei Paschi di Siena SpAa		517,927	$	691,039
Banco Popolare SpA		353,552		1,235,465
Enel Green Power SpAa		379,451		897,255
Enel SpA		1,511,560		9,014,978
Eni SpA		597,628		14,585,594
Exor SpA		24,415		745,594
Fiat Industrial SpAa		175,004		2,446,161
Fiat SpA		175,004		1,625,537
Finmeccanica SpA		94,552		1,184,499
Intesa Sanpaolo SpA		1,775,076		5,992,041
Luxottica Group SpA		25,598		795,863
Mediaset SpA		164,724		1,060,228
Mediobanca SpA		106,586		1,129,151
Parmalat SpA		376,259		1,153,710
Pirelli & C. SpA		52,369		422,419
Prysmian SpA		46,852		990,093
Saipem SpA		60,922		3,079,725
Snam Rete Gas SpA		333,264		1,824,646
Telecom Italia SpA		2,176,816		3,403,492
Tenaris SA		108,434		2,450,222
Terna SpA		301,252		1,390,571
UniCredit SpA		3,082,692		7,932,309
Unione di Banche Italiane ScpA		141,404		1,429,649
				74,195,276
NETHERLANDS – 8.42%
AEGON NVa		356,160		2,739,549
Akzo Nobel NV		53,639		3,650,227
ASML Holding NV		99,004		4,301,293
Corio NV		13,568		900,557
Delta Lloyd NV		14,416		348,847
Fugro NV CVA		15,219		1,281,409
Heineken Holding NV		26,712		1,227,853
Heineken NV		60,208		3,106,832
ING Groep NV CVAa		878,121		11,021,267
Koninklijke Ahold NV		274,540		3,688,806
Koninklijke DSM NV		35,054		2,060,368
Koninklijke KPN NV		362,308		5,874,929
Koninklijke Philips Electronics NV		225,992		7,385,237
Randstad Holding NVa		24,592		1,326,900
Reed Elsevier NV		160,484		2,119,518
Royal Boskalis Westminster NV CVA		16,823		875,646

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2011

Security	Shares		Value
Royal Vopak NV		15,688	$	759,039
SBM Offshore NV		37,948		954,193
TNT NV		86,852		2,283,439
Unilever NV CVA		374,392		11,301,446
Wolters Kluwer NV		67,416		1,594,129
				68,801,484
PORTUGAL – 0.89%
Banco Comercial Portugues SA Registeredc		630,280		562,371
Banco Espirito Santo SA Registered		122,234		553,761
BRISA – Auto-estradas de Portugal SA		42,439		305,686
CIMPOR – Cimentos de Portugal SGPS SA		50,032		346,558
EDP Renovaveis SAa		44,096		264,939
Energias de Portugal SA		441,808		1,676,899
Galp Energia SGPS SA Class B		54,272		1,130,029
Jeronimo Martins SGPS SA		51,543		827,242
Portugal Telecom SGPS SA Registered		135,841		1,589,547
				7,257,032
SPAIN – 11.69%
Abertis Infraestructuras SA		68,843		1,384,452
Acciona SA		6,161		599,840
Acerinox SA		23,108		438,856
Actividades de Construcciones y Servicios SA		31,305		1,437,463
Amadeus IT Holding SA Class Aa		45,368		882,598
Banco Bilbao Vizcaya Argentaria SA		981,383		12,126,181
Banco de Sabadell SA		261,184		1,134,911
Banco de Valencia SAc		47,849		241,225
Banco Popular Espanol SAc		207,221		1,253,902
Banco Santander SA		1,914,415		23,625,841
Bankinter SAc		72,080		475,982
Criteria CaixaCorp SA		192,284		1,392,981
Enagas SA		41,128		881,345
Ferrovial SA		95,985		1,155,652
Fomento de Construcciones y Contratas SAc		11,980		382,727
Gas Natural SDG SA		71,444		1,221,639
Gestevision Telecinco SA		35,192		442,034
Grifols SA		31,512		513,588
Iberdrola Renovables SA		199,376		749,579
Iberdrola SA		923,048		8,061,282

Security	Shares		Value
Indra Sistemas SAc		22,260	$	433,512
Industria de Diseno Textil SA		50,668		3,671,290
International Consolidated Airlines Group SAa		218,128		794,773
Mapfre SA		175,168		651,308
Red Electrica Corporacion SA		25,866		1,393,319
Repsol YPF SA		169,176		5,685,092
Telefonica SA		943,400		23,975,647
Zardoya Otis SA		32,359		505,045
				95,512,064
TOTAL COMMON STOCKS
(Cost: $1,024,963,657)				800,431,341
PREFERRED STOCKS – 1.84%
GERMANY – 1.54%
Bayerische Motoren Werke AG		12,932		697,677
Henkel AG & Co. KGaA		40,916		2,467,366
Porsche Automobil Holding SE		19,942		1,581,570
ProSiebenSat.1 Media AG		16,536		535,473
RWE AG NVS		9,540		614,032
Volkswagen AG		39,220		6,657,576
				12,553,694
ITALY – 0.30%
Intesa Sanpaolo SpA RNC		213,908		626,945
Telecom Italia SpA RNC		1,385,208		1,834,806
				2,461,751
TOTAL PREFERRED STOCKS
(Cost: $16,205,451)				15,015,445
RIGHTS – 0.00%
AUSTRIA – 0.00%
IMMOFINANZ AGa,b		212,282		29
				29
TOTAL RIGHTS
(Cost: $0)				29
SHORT-TERM INVESTMENTS – 0.51%
MONEY MARKET FUNDS – 0.51%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.23%d,e,f		3,492,699		3,492,699

30 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMU INDEX FUND

February 28, 2011

Security	Shares		Value
BlackRock Cash Funds: Prime, SL Agency Shares
0.22%d,e,f		501,930	$	501,930
BlackRock Cash Funds: Treasury, SL Agency Shares
0.07%d,e		184,165		184,165
				4,178,794
TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,178,794)				4,178,794
TOTAL INVESTMENTS IN SECURITIES – 100.33%
(Cost: $1,045,347,902)				819,625,609
Other Assets, Less Liabilities – (0.33)%				(2,703,234)
NET ASSETS – 100.00%			$	816,922,375

FDR – Fiduciary Depositary Receipts

NVS – Non-Voting Shares

SP ADR – Sponsored American 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  All or a portion of this security represents a security on loan. See Note 5.

^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 31

Schedule of Investments (Unaudited)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.89%
ADVERTISING – 0.90%
JCDecaux SAa		18,113	$	585,289
PagesJaunes Groupe SAb		34,508		336,830
Publicis Groupe SA		33,925		1,936,843
				2,858,962
AEROSPACE & DEFENSE – 1.82%
European Aeronautic Defence and Space Co. NVa		111,156		3,217,961
Safran SA		45,371		1,615,541
Thales SA		24,367		923,849
				5,757,351
AIRLINES – 0.19%
Air France-KLMa		36,934		604,507
				604,507
AUTO MANUFACTURERS – 1.54%
PSA Peugeot Citroen SAa		41,364		1,657,684
Renault SAa		52,392		3,214,040
				4,871,724
AUTO PARTS & EQUIPMENT – 1.24%
Compagnie Generale des
Etablissements Michelin Class B		48,062		3,916,611
				3,916,611
BANKS – 12.18%
BNP Paribas		261,016		20,397,959
Credit Agricole SA		261,488		4,594,048
Natixisa		237,928		1,419,336
Societe Generale		172,752		12,156,930
				38,568,273
BEVERAGES – 1.57%
Pernod Ricard SA		53,985		4,981,627
				4,981,627
BUILDING MATERIALS – 3.32%
Compagnie de Saint-Gobain		108,442		6,489,223
Imerys SA		10,266		721,023
Lafarge SA		54,634		3,316,111
				10,526,357
CHEMICALS – 3.15%
L’Air Liquide SA		77,113		9,991,562
				9,991,562

Security	Shares		Value
COMMERCIAL SERVICES – 0.68%
Bureau Veritas SA		13,334	$	1,030,427
Edenred SAa		42,952		1,132,817
				2,163,244
COMPUTERS – 0.97%
Atos Origin SAa		12,390		717,808
Cap Gemini SA		40,297		2,356,569
				3,074,377
COSMETICS & PERSONAL CARE – 3.19%
Christian Dior SA		17,346		2,502,444
L’Oreal SA		65,254		7,592,454
				10,094,898
ELECTRIC – 0.99%
Electricite de France		70,446		3,144,250
				3,144,250
ELECTRICAL COMPONENTS & EQUIPMENT – 0.57%
Legrand SA		43,070		1,808,147
				1,808,147
ENGINEERING & CONSTRUCTION – 3.64%
Aeroports de Paris		8,142		722,313
Bouygues SA		62,953		2,913,283
Eiffage SA		10,974		653,961
Vinci SA		120,242		7,244,335
				11,533,892
FOOD – 6.14%
Carrefour SA		163,194		8,019,860
Casino Guichard-Perrachon SA		15,045		1,474,976
Danone SA		158,828		9,966,127
				19,460,963
FOOD SERVICE – 0.56%
Sodexo		25,724		1,771,703
				1,771,703
GAS – 4.32%
GDF Suez		336,975		13,672,004
				13,672,004
HAND & MACHINE TOOLS – 3.46%
Schneider Electric SA		66,200		10,963,111
				10,963,111

32 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2011

Security	Shares		Value
HEALTH CARE – PRODUCTS – 1.24%
Essilor International SA		55,106	$	3,938,818
				3,938,818
HEALTH CARE – SERVICES – 0.11%
BioMerieux SA		3,245		345,786
				345,786
HOLDING COMPANIES – DIVERSIFIED – 3.32%
LVMH Moet Hennessy Louis Vuitton SA		66,729		10,529,978
				10,529,978
HOUSEHOLD PRODUCTS & WARES – 0.20%
Societe BIC SA		7,316		625,491
				625,491
INSURANCE – 3.82%
AXA		467,752		9,833,020
CNP Assurances SA		40,541		899,844
SCOR SE		45,936		1,351,100
				12,083,964
INTERNET – 0.16%
Iliad SA		4,484		502,648
				502,648
INVESTMENT COMPANIES – 0.18%
Eurazeo		7,871		585,535
				585,535
IRON & STEEL – 2.71%
ArcelorMittal		233,763		8,596,507
				8,596,507
LODGING – 0.59%
Accor SA		39,999		1,882,529
				1,882,529
MACHINERY – 1.06%
ALSTOM		56,109		3,349,066
				3,349,066
MEDIA – 3.83%
Lagardere SCA		32,096		1,445,634
M6-Metropole Television		17,582		444,888
Societe Television Francaise 1		31,919		620,738
Vivendi SA		336,713		9,608,306
				12,119,566

Security	Shares		Value
METAL FABRICATE & HARDWARE – 0.99%
Vallourec SA		30,149	$	3,126,050
				3,126,050
MINING – 0.16%
Eramet		1,441		520,963
				520,963
OFFICE & BUSINESS EQUIPMENT – 0.26%
Neopost SA		8,673		823,447
				823,447
OIL & GAS – 11.61%
Compagnie Generale de Geophysique-Veritasa		39,235		1,456,665
Total SA		575,604		35,307,032
				36,763,697
OIL & GAS SERVICES – 0.84%
Technip SA		26,786		2,646,753
				2,646,753
PHARMACEUTICALS – 6.23%
Sanofi-Aventis		285,619		19,724,851
				19,724,851
REAL ESTATE – 2.12%
Gecina SA		5,133		665,510
Klepierre		25,901		1,011,165
Unibail-Rodamco SE		24,957		5,022,369
				6,699,044
REAL ESTATE INVESTMENT TRUSTS – 0.48%
Fonciere des Regions		7,316		794,950
Icade		6,321		709,271
				1,504,221
RETAIL – 0.99%
PPR SA		20,709		3,146,360
				3,146,360
SEMICONDUCTORS – 0.70%
STMicroelectronics NV		173,653		2,232,040
				2,232,040
SOFTWARE – 0.39%
Dassault Systemes SA		16,107		1,234,485
				1,234,485
TELECOMMUNICATIONS – 5.52%
Alcatel-Lucenta		631,300		3,127,691

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI FRANCE INDEX FUND

February 28, 2011

Security	Shares		Value
Eutelsat Communications		26,904	$	1,074,476
France Telecom SA		504,922		11,179,296
SES SA FDR		81,715		2,105,492
				17,486,955
TRANSPORTATION – 0.46%
Groupe Eurotunnel SA		145,440		1,466,236
				1,466,236
WATER – 1.49%
Suez Environnement SA		73,219		1,587,743
Veolia Environnement		94,813		3,120,675
				4,708,418
TOTAL COMMON STOCKS
(Cost: $378,669,681)				316,406,971
SHORT-TERM INVESTMENTS – 0.12%
MONEY MARKET FUNDS – 0.12%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.23%c,d,e		287,252		287,252
BlackRock Cash Funds: Prime, SL Agency Shares
0.22%c,d,e		41,280		41,280
BlackRock Cash Funds: Treasury, SL Agency Shares
0.07%c,d		37,890		37,890
				366,422
TOTAL SHORT-TERM INVESTMENTS
(Cost: $366,422)				366,422
TOTAL INVESTMENTS IN SECURITIES – 100.01%
(Cost: $379,036,103)				316,773,393
Other Assets, Less Liabilities – (0.01)%				(23,801)
NET ASSETS – 100.00%			$	316,749,592

FDR – Fiduciary 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.

34 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 94.10%
AIRLINES – 0.50%
Deutsche Lufthansa AG Registereda		641,920	$	13,135,276
				13,135,276
APPAREL – 1.57%
Adidas AG		573,580		36,838,640
Puma AG		15,640		4,655,225
				41,493,865
AUTO MANUFACTURERS – 9.58%
Bayerische Motoren Werke AG		901,340		73,177,044
Daimler AG Registereda		2,383,740		168,078,152
Volkswagen AG		82,960		12,604,281
				253,859,477
AUTO PARTS & EQUIPMENT – 0.45%
Continental AGa		140,080		11,850,560
				11,850,560
BANKS – 6.72%
Commerzbank AGa		2,356,200		20,326,882
Deutsche Bank AG Registered		2,450,080		157,629,096
				177,955,978
BIOTECHNOLOGY – 0.52%
QIAGEN NVa		666,740		13,822,730
				13,822,730
BUILDING MATERIALS – 1.02%
HeidelbergCement AG		386,580		27,086,998
				27,086,998
CHEMICALS – 19.20%
BASF SE		2,425,560		201,882,086
Bayer AG		2,180,080		169,165,112
Brenntag AGa		95,200		9,960,387
K+S AG		394,740		30,504,778
LANXESS AG		230,520		17,161,451
Linde AG		465,460		71,104,016
Wacker Chemie AG		46,580		8,601,764
				508,379,594
COSMETICS & PERSONAL CARE – 0.65%
Beiersdorf AG		286,620		17,220,763
				17,220,763

Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES – 1.58%
Deutsche Boerse AG		545,360	$	41,910,905
				41,910,905
ELECTRIC – 8.77%
E.ON AG		4,690,980		154,042,565
RWE AG		1,158,380		78,253,784
				232,296,349
ENGINEERING & CONSTRUCTION – 0.75%
Fraport AG		110,160		7,854,138
Hochtief AG		120,700		11,901,489
				19,755,627
FOOD – 1.21%
METRO AG		360,060		26,357,692
Suedzucker AG		209,100		5,747,299
				32,104,991
HEALTH CARE – PRODUCTS – 2.38%
Fresenius Medical Care AG & Co. KGaA		537,200		35,596,527
Fresenius SE		300,224		27,413,797
				63,010,324
HOLDING COMPANIES – DIVERSIFIED – 0.56%
GEA Group AG		477,020		14,755,172
				14,755,172
HOUSEHOLD PRODUCTS & WARES – 0.70%
Henkel AG & Co. KGaA		363,800		18,591,783
				18,591,783
INSURANCE – 10.17%
Allianz SE Registered		1,181,500		170,369,112
Hannover Rueckversicherung AG Registered		194,140		11,313,089
Muenchener Rueckversicherungs- Gesellschaft AG Registered		524,620		87,641,005
				269,323,206
INTERNET – 0.23%
United Internet AG Registered		351,220		6,088,069
				6,088,069
IRON & STEEL – 1.81%
Salzgitter AG		117,980		9,803,312
ThyssenKrupp AG		918,680		38,231,385
				48,034,697

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI GERMANY INDEX FUND

February 28, 2011

Security	Shares		Value
LEISURE TIME – 0.19%
TUI AGa		386,580	$	5,070,870
				5,070,870
MACHINERY – 1.40%
MAN SE		291,040		36,986,595
				36,986,595
MANUFACTURING – 11.07%
Siemens AG Registered		2,174,300		293,076,785
				293,076,785
MEDIA – 0.58%
Axel Springer AG		43,860		7,154,432
Kabel Deutschland Holding AGa		150,960		8,231,816
				15,386,248
PHARMACEUTICALS – 0.87%
Celesio AG		221,680		6,138,998
Merck KGaA		186,320		16,858,686
				22,997,684
SEMICONDUCTORS – 1.22%
Infineon Technologies AG		2,961,740		32,431,513
				32,431,513
SOFTWARE – 4.83%
SAP AG		2,118,200		127,909,780
				127,909,780
TELECOMMUNICATIONS – 3.95%
Deutsche Telekom AG Registered		7,771,380		104,601,190
				104,601,190
TRANSPORTATION – 1.62%
Deutsche Post AG Registered		2,340,560		42,963,672
				42,963,672
TOTAL COMMON STOCKS
(Cost: $2,295,408,047)				2,492,100,701
PREFERRED STOCKS – 5.70%
AUTO MANUFACTURERS – 3.99%
Bayerische Motoren Werke AG		152,660		8,235,958
Porsche Automobil Holding SE		240,040		19,037,216
Volkswagen AG		461,380		78,319,027
				105,592,201

Security	Shares		Value
ELECTRIC – 0.33%
RWE AG NVS		135,832	$	8,742,681
				8,742,681
HOUSEHOLD PRODUCTS & WARES – 1.12%
Henkel AG & Co. KGaA		491,300		29,626,963
				29,626,963
MEDIA – 0.26%
ProSiebenSat.1 Media AG		212,500		6,881,226
				6,881,226
TOTAL PREFERRED STOCKS
(Cost: $124,541,356)				150,843,071
SHORT-TERM INVESTMENTS – 0.04%
MONEY MARKET FUNDS – 0.04%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%b,c		1,023,327		1,023,327
				1,023,327
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,023,327)				1,023,327
TOTAL INVESTMENTS IN SECURITIES – 99.84%
(Cost: $2,420,972,730)				2,643,967,099
Other Assets, Less Liabilities – 0.16%				4,255,622
NET ASSETS – 100.00%			$	2,648,222,721

NVS – Non-Voting Shares

^a  Non-income earning security.

^b  Affiliated issuer. See Note 2.

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

See notes to financial statements.

36 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 98.06%
AEROSPACE & DEFENSE – 2.14%
Finmeccanica SpAa		251,721	$	3,153,431
				3,153,431
AUTO MANUFACTURERS – 6.16%
Fiat Industrial SpAb		412,183		5,761,390
Fiat SpA		359,340		3,337,755
				9,099,145
AUTO PARTS & EQUIPMENT – 0.63%
Pirelli & C. SpA		114,916		926,936
				926,936
BANKS – 24.35%
Banca Carige SpA		507,279		1,224,743
Banca Monte dei Paschi di Siena SpAb		1,493,467		1,992,643
Banco Popolare SpA		887,224		3,100,348
Intesa Sanpaolo SpA		3,210,263		10,836,735
UniCredit SpA		5,853,983		15,063,328
Unione di Banche Italiane ScpA		367,767		3,718,266
				35,936,063
COMMERCIAL SERVICES – 2.45%
Atlantia SpA		157,469		3,610,437
				3,610,437
DIVERSIFIED FINANCIAL SERVICES – 2.15%
Mediobanca SpA		299,466		3,172,485
				3,172,485
ELECTRIC – 14.55%
A2A SpA		1,168,862		1,872,742
Enel SpA		2,692,771		16,059,747
Terna SpAa		766,910		3,540,034
				21,472,523
ELECTRICAL COMPONENTS & EQUIPMENT – 1.39%
Prysmian SpA		97,378		2,057,827
				2,057,827
ENERGY – ALTERNATE SOURCES – 1.08%
Enel Green Power SpAb		672,749		1,590,792
				1,590,792
FOOD – 1.95%
Parmalat SpA		938,365		2,877,275
				2,877,275

Security	Shares		Value
GAS – 1.50%
Snam Rete Gas SpA		404,655	$	2,215,518
				2,215,518
HEALTH CARE – PRODUCTS – 1.46%
Luxottica Group SpAa		69,139		2,149,588
				2,149,588
HOLDING COMPANIES – DIVERSIFIED – 0.84%
Exor SpA		40,470		1,235,886
				1,235,886
INSURANCE – 4.92%
Assicurazioni Generali SpA		320,756		7,261,233
				7,261,233
MEDIA – 1.83%
Mediaset SpA		418,779		2,695,426
				2,695,426
METAL FABRICATE & HARDWARE – 3.55%
Tenaris SA		231,669		5,234,894
				5,234,894
OIL & GAS – 18.40%
Eni SpA		1,112,264		27,145,701
				27,145,701
OIL & GAS SERVICES – 4.31%
Saipem SpA		125,880		6,363,477
				6,363,477
RETAIL – 0.78%
Autogrill SpAb		81,223		1,149,899
				1,149,899
TELECOMMUNICATIONS – 3.62%
Telecom Italia SpA		3,414,770		5,339,057
				5,339,057
TOTAL COMMON STOCKS
(Cost: $182,263,291)				144,687,593
PREFERRED STOCKS – 1.81%
BANKS – 0.41%
Intesa Sanpaolo SpA RNC		205,534		602,401
				602,401

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ITALY INDEX FUND

February 28, 2011

Security	Shares		Value
TELECOMMUNICATIONS – 1.40%
Telecom Italia SpA RNC		1,565,597	$	2,073,744
				2,073,744
TOTAL PREFERRED STOCKS
(Cost: $2,818,154)				2,676,145
SHORT-TERM INVESTMENTS – 3.46%
MONEY MARKET FUNDS – 3.46%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%c,d,e		4,361,689		4,361,689
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%c,d,e		626,811		626,811
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		120,187		120,187
				5,108,687
TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,108,687)				5,108,687
TOTAL INVESTMENTS IN SECURITIES – 103.33%
(Cost: $190,190,132)				152,472,425
Other Assets, Less Liabilities – (3.33)%				(4,919,792)
NET ASSETS – 100.00%			$	147,552,633

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

^b  Non-income earning security.

^c  Affiliated issuer. See Note 2.

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

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

See notes to financial statements.

38 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI NETHERLANDS INVESTABLE MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.13%
BANKS – 0.23%
SNS REAAL NVa		85,400	$	443,391
				443,391
BEVERAGES – 4.73%
Heineken Holding NV		50,400		2,316,704
Heineken NV		134,925		6,962,351
				9,279,055
BUILDING MATERIALS – 0.19%
Wavin NVa		26,539		377,553
				377,553
CHEMICALS – 7.58%
Akzo Nobel NV		137,550		9,360,516
Koninklijke DSM NV		93,975		5,523,566
				14,884,082
COMMERCIAL SERVICES – 2.30%
Brunel International NV		6,125		242,671
Randstad Holding NVa		64,400		3,474,804
USG People NVa		38,675		791,119
				4,508,594
DIVERSIFIED FINANCIAL SERVICES – 0.32%
BinckBank NV		27,825		462,336
KAS Bank NV CVA		9,975		163,263
				625,599
ELECTRICAL COMPONENTS & EQUIPMENT – 0.24%
TKH Group NV		19,775		474,158
				474,158
ELECTRONICS – 9.57%
Koninklijke Philips Electronics NV		575,050		18,792,172
				18,792,172
ENGINEERING & CONSTRUCTION – 1.88%
Arcadis NV		30,625		732,835
Koninklijke BAM Groep NV		125,300		806,307
Royal Boskalis Westminster NV CVA		41,300		2,149,687
				3,688,829
FOOD – 21.34%
Amsterdam Commodities NV		3,150		45,988
CSM NV CVA		41,650		1,481,608
Koninklijke Ahold NV		618,975		8,316,743
Koninklijke Wessanen NVa		50,480		181,907

Security	Shares		Value
Nutreco NV		22,050	$	1,632,413
Sligro Food Group NV		21,700		722,326
Unilever NV CVA		978,075		29,524,300
				41,905,285
HOLDING COMPANIES – DIVERSIFIED – 0.89%
Imtech NV		44,800		1,618,413
Ordina NVa		28,000		133,037
				1,751,450
HOUSEWARES – 0.11%
Hunter Douglas NV		4,550		214,520
				214,520
INSURANCE – 18.53%
AEGON NVa		911,400		7,010,401
Delta Lloyd NV		57,050		1,380,532
ING Groep NV CVAa		2,230,377		27,993,387
				36,384,320
INVESTMENT COMPANIES – 0.10%
Kardan NVa		35,000		196,075
				196,075
LEISURE TIME – 0.13%
Accell Group NV		4,747		251,772
				251,772
MANUFACTURING – 0.91%
Aalberts Industries NV		56,175		1,198,749
Koninklijke Ten Cate NV		16,275		592,322
				1,791,071
MEDIA – 4.97%
Reed Elsevier NV		422,625		5,581,624
Wolters Kluwer NV		176,400		4,171,180
				9,752,804
METAL FABRICATE & HARDWARE – 0.14%
Advanced Metallurgical Group NVa		14,875		274,589
				274,589
OIL & GAS SERVICES – 2.97%
Fugro NV CVA		39,900		3,359,499
SBM Offshore NV		98,000		2,464,185
				5,823,684
PHARMACEUTICALS – 0.36%
Mediq NV		37,895		701,364
				701,364

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI NETHERLANDS INVESTABLE MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
REAL ESTATE INVESTMENT TRUSTS – 3.18%
Corio NV		35,525	$	2,357,921
Eurocommercial Properties NV		22,225		1,066,880
Nieuwe Steen Investments NV		20,650		424,689
VastNed Offices/Industrial NV		9,450		159,239
VastNed Retail NV		11,375		812,267
Wereldhave NV		14,000		1,422,995
				6,243,991
RETAIL – 0.17%
Beter Bed Holding NV		11,900		328,726
				328,726
SEMICONDUCTORS – 5.50%
ASM International NVa		31,850		1,294,002
ASML Holding NV		218,750		9,503,736
				10,797,738
SOFTWARE – 0.77%
Exact Holding NV		9,735		302,535
TomTom NVa,b		79,894		704,251
Unit 4 NV		15,312		515,188
				1,521,974
TELECOMMUNICATIONS – 8.00%
Koninklijke KPN NV		968,975		15,712,211
				15,712,211
TRANSPORTATION – 4.02%
Royal Vopak NV		42,000		2,032,105
TNT NV		222,775		5,857,010
				7,889,115
TOTAL COMMON STOCKS
(Cost: $208,196,937)				194,614,122
SHORT-TERM INVESTMENTS – 0.39%
MONEY MARKET FUNDS – 0.39%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%c,d,e		599,710		599,710
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%c,d,e		86,183		86,183

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		80,932	$	80,932
				766,825
TOTAL SHORT-TERM INVESTMENTS
(Cost: $766,825)				766,825
TOTAL INVESTMENTS IN SECURITIES – 99.52%
(Cost: $208,963,762)				195,380,947
Other Assets, Less Liabilities – 0.48%				950,118
NET ASSETS – 100.00%			$	196,331,065

^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.

40 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.88%
AIRLINES – 0.92%
International Consolidated Airlines Group SAa		761,805	$	2,775,717
				2,775,717
BANKS – 38.01%
Banco Bilbao Vizcaya Argentaria SA		2,209,890		27,305,880
Banco de Sabadell SA		1,478,058		6,422,540
Banco de Valencia SAb		542,925		2,737,092
Banco Popular Espanol SAb		1,263,169		7,643,484
Banco Santander SA		5,354,827		66,084,048
Bankinter SAb		600,780		3,967,262
				114,160,306
COMMERCIAL SERVICES – 2.79%
Abertis Infraestructuras SA		416,974		8,385,462
				8,385,462
COMPUTERS – 0.98%
Indra Sistemas SAb		150,511		2,931,190
				2,931,190
DIVERSIFIED FINANCIAL SERVICES – 3.82%
Criteria CaixaCorp SA		1,585,773		11,487,966
				11,487,966
ELECTRIC – 7.45%
Iberdrola SA		1,709,525		14,929,844
Red Electrica Corporacion SA		138,454		7,458,075
				22,387,919
ENERGY – ALTERNATE SOURCES – 1.25%
Iberdrola Renovables SA		997,025		3,748,442
				3,748,442
ENGINEERING & CONSTRUCTION – 6.42%
Acciona SA		40,090		3,903,195
Actividades de Construcciones y Servicios SA		171,964		7,896,243
Ferrovial SA		460,275		5,541,675
Fomento de Construcciones y Contratas SA		61,180		1,954,527
				19,295,640
GAS – 3.70%
Enagas SA		257,939		5,527,458

Security	Shares		Value
Gas Natural SDG SA		327,560	$	5,601,033
				11,128,491
INSURANCE – 2.62%
Mapfre SA		2,116,145		7,868,231
				7,868,231
IRON & STEEL – 0.99%
Acerinox SA		155,918		2,961,117
				2,961,117
MACHINERY – 0.55%
Zardoya Otis SA		105,640		1,648,783
				1,648,783
MEDIA – 0.93%
Gestevision Telecinco SA		221,635		2,783,876
				2,783,876
OIL & GAS – 4.92%
Repsol YPF SA		439,850		14,780,984
				14,780,984
PHARMACEUTICALS – 0.81%
Grifols SA		149,055		2,429,323
				2,429,323
RETAIL – 3.87%
Industria de Diseno Textil SA		160,265		11,612,443
				11,612,443
SOFTWARE – 1.17%
Amadeus IT Holding SA Class Aa		180,215		3,505,940
				3,505,940
TELECOMMUNICATIONS – 18.68%
Telefonica SA		2,207,230		56,094,728
				56,094,728
TOTAL COMMON STOCKS
(Cost: $374,665,904)				299,986,558
SHORT-TERM INVESTMENTS – 3.65%
MONEY MARKET FUNDS – 3.65%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%c,d,e		9,353,655		9,353,655
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%c,d,e		1,344,197		1,344,197

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SPAIN INDEX FUND

February 28, 2011

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		259,257	$	259,257
				10,957,109
TOTAL SHORT-TERM INVESTMENTS
(Cost: $10,957,109)				10,957,109
TOTAL INVESTMENTS IN SECURITIES – 103.53%
(Cost: $385,623,013)				310,943,667
Other Assets, Less Liabilities – (3.53)%				(10,610,744)
NET ASSETS – 100.00%			$	300,332,923

^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.

42 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS — 99.91%
AGRICULTURE – 1.99%
Swedish Match AB		426,948	$	13,490,094
				13,490,094
AUTO MANUFACTURERS – 1.99%
Scania AB Class B		603,762		13,468,229
				13,468,229
BANKS – 19.82%
Nordea Bank AB		4,911,594		55,868,237
Skandinaviska Enskilda Banken AB Class A		2,645,724		24,075,595
Svenska Handelsbanken AB Class A		914,808		30,899,231
Swedbank AB Class Aa		1,341,756		23,635,154
				134,478,217
COMMERCIAL SERVICES – 1.00%
Securitas AB Class B		582,330		6,807,864
				6,807,864
DIVERSIFIED FINANCIAL SERVICES – 1.34%
Kinnevik Investment AB Class B		404,670		9,078,192
				9,078,192
ENGINEERING & CONSTRUCTION – 2.27%
Skanska AB Class B		749,556		15,406,053
				15,406,053
FOREST PRODUCTS & PAPER – 3.13%
Holmen AB Class B		100,110		3,523,730
Svenska Cellulosa AB Class B		1,072,728		17,743,787
				21,267,517
HAND & MACHINE TOOLS – 4.97%
Sandvik AB		1,755,450		33,695,721
				33,695,721
HEALTH CARE — PRODUCTS – 1.35%
Getinge AB Class B		373,650		9,131,988
				9,131,988
HOLDING COMPANIES – DIVERSIFIED – 0.58%
Industrivarden AB Class Ab		224,472		3,911,539
				3,911,539
HOME FURNISHINGS – 1.67%
Electrolux AB Class B		451,200		11,319,561
				11,319,561

Security	Shares		Value
HOUSEHOLD PRODUCTS & WARES – 0.94%
Husqvarna AB Class B		792,420	$	6,384,628
				6,384,628
INVESTMENT COMPANIES – 3.94%
Investor AB Class B		850,794		19,583,666
Ratos AB Class B		190,914		7,130,094
				26,713,760
IRON & STEEL – 0.80%
SSAB AB Class A		345,732		5,429,202
				5,429,202
MACHINERY – 15.31%
Atlas Copco AB Class A		1,261,668		31,712,120
Atlas Copco AB Class B		736,584		16,745,306
Hexagon AB Class B		480,664		10,608,354
Volvo AB Class Ba		2,586,222		44,780,235
				103,846,015
MANUFACTURING – 1.92%
Alfa Laval AB		636,474		13,001,373
				13,001,373
MEDIA – 0.94%
Modern Times Group MTG AB Class B		95,765		6,408,742
				6,408,742
METAL FABRICATE & HARDWARE – 5.43%
Assa Abloy AB Class B		586,560		16,429,759
SKF AB Class B		732,918		20,436,669
				36,866,428
MINING – 1.64%
Boliden AB		520,290		11,113,022
				11,113,022
RETAIL – 9.20%
Hennes & Mauritz AB Class B		1,908,294		62,405,899
				62,405,899
TELECOMMUNICATIONS – 19.68%
Millicom International Cellular SA SDR		141,846		12,448,332
Tele2 AB Class B		592,200		13,519,053
Telefonaktiebolaget LM Ericsson Class B		5,621,388		72,378,767

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWEDEN INDEX FUND

February 28, 2011

Security	Shares		Value
TeliaSonera AB		4,178,676	$	35,153,480
				133,499,632
TOTAL COMMON STOCKS
(Cost: $635,447,265)				677,723,676
RIGHTS – 0.03%
TELECOMMUNICATIONS – 0.03%
TeliaSonera ABa,c		4,117,482		203,279
				203,279
TOTAL RIGHTS
(Cost: $193,196)				203,279
SHORT-TERM INVESTMENTS – 0.43%
MONEY MARKET FUNDS – 0.43%
BlackRock Cash Funds: Institutional,
SL Agency Shares
0.23%d,e,f		2,195,423		2,195,423
BlackRock Cash Funds: Prime,
SL Agency Shares
0.22%d,e,f		315,500		315,500
BlackRock Cash Funds: Treasury,
SL Agency Shares
0.07%d,e		418,978		418,978
				2,929,901
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,929,901)				2,929,901
TOTAL INVESTMENTS IN SECURITIES – 100.37%
(Cost: $638,570,362)				680,856,856
Other Assets, Less Liabilities – (0.37)%				(2,505,309)
NET ASSETS – 100.00%			$	678,351,547

SDR – Swedish Depositary Receipts

^a  Non-income earning security.

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

^c  Security valued 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.

44 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.19%
BANKS – 5.65%
Credit Suisse Group AG Registered		464,406	$	21,475,249
Julius Baer Group Ltd.		155,008		6,946,133
				28,421,382
BUILDING MATERIALS – 3.19%
Geberit AG Registered		20,577		4,438,849
Holcim Ltd. Registered		153,546		11,266,703
Sika AG Bearer		157		336,145
				16,041,697
CHEMICALS – 5.97%
Givaudan SA Registered		6,028		6,005,625
Lonza Group AG Registered		46,943		3,969,788
Syngenta AG Registered		59,886		20,064,017
				30,039,430
COMMERCIAL SERVICES – 2.52%
Adecco SA Registered		82,584		5,557,727
SGS SA Registered		4,082		7,101,613
				12,659,340
COMPUTERS – 0.36%
Logitech International SA Registereda,b		96,555		1,835,631
				1,835,631
DIVERSIFIED FINANCIAL SERVICES – 7.31%
GAM Holding AGa		201,745		3,646,582
UBS AG Registereda		1,667,160		33,093,875
				36,740,457
ENGINEERING & CONSTRUCTION – 4.89%
ABB Ltd. Registereda		1,006,370		24,600,276
				24,600,276
FOOD – 22.08%
Aryzta AG		65,783		3,071,690
Lindt & Spruengli AG Participation Certificates		880		2,444,629
Lindt & Spruengli AG Registered		157		4,913,798
Nestle SA Registered		1,777,654		100,602,077
				111,032,194
HAND & MACHINE TOOLS – 1.12%
Schindler Holding AG Participation Certificates		33,207		3,740,678

Security	Shares		Value
Schindler Holding AG Registered		16,642	$	1,887,209
				5,627,887
HEALTH CARE – PRODUCTS – 2.45%
Sonova Holding AG Registered		29,202		3,883,337
Straumann Holding AG Registered		8,177		2,008,509
Synthes Inc.		46,943		6,439,542
				12,331,388
INSURANCE – 9.42%
Baloise Holding AG Registered		41,448		4,477,249
Swiss Life Holding AG Registereda		25,120		4,151,307
Swiss Reinsurance Co. Registered		232,203		14,215,235
Zurich Financial Services AG Registered		84,466		24,509,635
				47,353,426
INVESTMENT COMPANIES – 0.93%
Pargesa Holding SA Bearer		50,623		4,667,697
				4,667,697
OIL & GAS – 2.29%
Transocean Ltd.a		140,358		11,522,207
				11,522,207
PHARMACEUTICALS – 22.92%
Actelion Ltd. Registereda		78,666		4,363,045
Novartis AG Registered		1,043,579		58,497,462
Roche Holding AG Genusschein		347,732		52,415,141
				115,275,648
RETAIL – 6.09%
Compagnie Financiere Richemont SA Class A Bearer Units		335,088		19,161,792
Swatch Group AG (The) Bearer		19,373		8,243,608
Swatch Group AG (The) Registered		41,683		3,237,950
				30,643,350
TELECOMMUNICATIONS – 1.13%
Swisscom AG Registered		12,874		5,681,763
				5,681,763
TRANSPORTATION – 0.87%
Kuehne & Nagel International AG Registered		32,661		4,389,003
				4,389,003
TOTAL COMMON STOCKS
(Cost: $449,937,303)				498,862,776

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SWITZERLAND INDEX FUND

February 28, 2011

Security	Shares		Value
SHORT-TERM INVESTMENTS – 0.19%
MONEY MARKET FUNDS – 0.19%
BlackRock Cash Funds: Institutional,
SL Agency Shares
0.23%c,d,e		734,453	$	734,453
BlackRock Cash Funds: Prime,
SL Agency Shares
0.22%c,d,e		105,547		105,547
BlackRock Cash Funds: Treasury,
SL Agency Shares
0.07%c,d		109,387		109,387
				949,387
TOTAL SHORT-TERM INVESTMENTS
(Cost: $949,387)				949,387
TOTAL INVESTMENTS IN SECURITIES – 99.38%
(Cost: $450,886,690)				499,812,163
Other Assets, Less Liabilities – 0.62%				3,108,360
NET ASSETS – 100.00%			$	502,920,523

^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.

46 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.54%
AEROSPACE & DEFENSE – 1.64%
BAE Systems PLC		1,845,750	$	9,873,949
Cobham PLC		625,500		2,294,183
Rolls-Royce Group PLCa		1,014,375		10,179,767
				22,347,899
AGRICULTURE – 4.49%
British American Tobacco PLC		1,086,000		43,488,257
Imperial Tobacco Group PLC		552,375		17,735,168
				61,223,425
APPAREL – 0.34%
Burberry Group PLC		235,125		4,585,346
				4,585,346
BANKS – 14.79%
Barclays PLC		6,292,875		32,737,808
HSBC Holdings PLC		9,616,500		106,047,604
Lloyds Banking Group PLCa		22,246,125		22,419,190
Royal Bank of Scotland Group PLCa		9,409,875		6,911,812
Standard Chartered PLC		1,275,375		33,750,451
				201,866,865
BEVERAGES – 3.22%
Diageo PLC		1,358,250		26,554,511
SABMiller PLC		517,875		17,457,161
				44,011,672
COMMERCIAL SERVICES – 1.93%
Aggreko PLC		141,375		3,327,325
Babcock International Group PLC		196,125		1,789,575
Bunzl PLC		178,125		2,201,875
Capita Group PLC		331,125		3,907,361
Experian PLC		551,250		6,993,544
G4S PLC		759,750		3,262,336
Intertek Group PLC		87,000		2,552,760
Serco Group PLC		267,750		2,371,273
				26,406,049
DISTRIBUTION & WHOLESALE – 0.39%
Wolseley PLCa		154,500		5,380,211
				5,380,211
DIVERSIFIED FINANCIAL SERVICES – 0.55%
ICAP PLC		303,375		2,568,353
Investec PLC		263,625		2,026,443

Security	Shares		Value
London Stock Exchange
Group PLC		79,500	$	1,163,761
Schroders PLC		61,875		1,802,457
				7,561,014
ELECTRIC – 2.38%
International Power PLC		841,197		4,573,916
National Grid PLC		1,904,625		17,688,855
Scottish & Southern Energy PLC		505,125		10,179,450
				32,442,221
ENGINEERING & CONSTRUCTION – 0.15%
Balfour Beatty PLC		371,625		2,112,546
				2,112,546
FOOD – 4.53%
Associated British Foods PLC		192,375		3,024,159
J Sainsbury PLC		655,875		4,053,767
Tesco PLC		4,365,000		28,696,881
Unilever PLC		699,750		20,759,738
Wm Morrison Supermarkets PLC		1,170,000		5,267,519
				61,802,064
FOOD SERVICE – 0.68%
Compass Group PLC		1,031,250		9,284,013
				9,284,013
GAS – 1.13%
Centrica PLC		2,794,500		15,458,412
				15,458,412
HEALTH CARE – PRODUCTS – 0.41%
Smith & Nephew PLC		481,125		5,567,843
				5,567,843
HOUSEHOLD PRODUCTS & WARES – 1.26%
Reckitt Benckiser Group PLC		334,125		17,227,504
				17,227,504
INSURANCE – 3.83%
Admiral Group PLC		108,750		2,987,535
Aviva PLC		1,535,625		11,649,247
Legal & General Group PLC		3,176,625		6,138,136
Old Mutual PLC		2,944,125		6,297,036
Prudential PLC		1,384,875		16,026,534
RSA Insurance Group PLC		1,868,250		4,260,270
Standard Life PLC		1,248,000		4,849,365
				52,208,123

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2011

Security	Shares		Value
INVESTMENT COMPANIES – 0.60%
Man Group PLC		968,706	$	4,526,700
Resolution Ltd.		791,250		3,721,913
				8,248,613
LEISURE TIME – 0.52%
Carnival PLC		100,125		4,484,981
Thomas Cook Group PLC		459,750		1,414,058
TUI Travel PLC		298,875		1,178,842
				7,077,881
LODGING – 0.26%
InterContinental Hotels Group PLC		157,125		3,496,113
				3,496,113
MACHINERY – 0.24%
Weir Group PLC (The)		117,375		3,272,205
				3,272,205
MANUFACTURING – 0.52%
Invensys PLC		438,000		2,531,895
Smiths Group PLC		212,250		4,615,654
				7,147,549
MEDIA – 2.47%
British Sky Broadcasting Group PLC		623,625		7,982,747
ITV PLCa		2,004,750		2,843,354
Pearson PLC		439,875		7,512,296
Reed Elsevier PLC		658,500		5,885,422
WPP PLC		687,750		9,469,165
				33,692,984
METAL FABRICATE & HARDWARE – 0.26%
Johnson Matthey PLC		115,875		3,496,132
				3,496,132
MINING – 13.84%
Anglo American PLC		717,000		38,875,299
Antofagasta PLC		213,375		4,883,057
BHP Billiton PLC		1,198,500		47,437,689
Eurasian Natural Resources Corp.		140,625		2,206,068
Fresnillo PLC		96,750		2,508,380
Kazakhmys PLC		117,000		2,747,940
Lonmin PLC		88,125		2,631,637
Randgold Resources Ltd.a		49,125		3,983,106
Rio Tinto PLC		788,625		55,277,903
Vedanta Resources PLC		64,875		2,541,957

Security	Shares		Value
Xstrata PLC		1,127,625	$	25,768,857
				188,861,893
OIL & GAS – 19.61%
BG Group PLC		1,842,000		44,835,341
BP PLC		10,209,375		82,147,660
Cairn Energy PLCa		757,125		5,259,583
Essar Energy PLCa		177,375		1,491,548
Royal Dutch Shell PLC Class A		1,948,649		70,093,008
Royal Dutch Shell PLC Class B		1,466,625		52,444,468
Tullow Oil PLC		484,500		11,316,245
				267,587,853
OIL & GAS SERVICES – 0.48%
AMEC PLC		178,875		3,386,544
Petrofac Ltd.		141,375		3,203,155
				6,589,699
PACKAGING & CONTAINERS – 0.21%
Rexam PLC		478,875		2,842,950
				2,842,950
PHARMACEUTICALS – 7.36%
AstraZeneca PLC		769,125		37,479,421
GlaxoSmithKline PLC		2,825,250		54,270,136
Shire PLC		307,875		8,718,210
				100,467,767
REAL ESTATE – 0.86%
British Land Co. PLC		480,375		4,559,061
Capital Shopping Centres Group PLC		307,500		1,977,088
Land Securities Group PLC		414,750		5,170,740
				11,706,889
REAL ESTATE INVESTMENT TRUSTS – 0.37%
Hammerson PLC		387,000		2,933,892
SEGRO PLC		400,500		2,097,551
				5,031,443
RETAIL – 1.30%
Home Retail Group PLC		451,875		1,620,620
Kingfisher PLC		1,279,125		5,292,785
Marks & Spencer Group PLC		857,250		4,829,915
Next PLC		100,125		3,217,982
Whitbread PLC		95,250		2,760,748
				17,722,050

48 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI UNITED KINGDOM INDEX FUND

February 28, 2011

Security	Shares		Value
SEMICONDUCTORS – 0.52%
ARM Holdings PLC		714,000	$	7,165,352
				7,165,352
SOFTWARE – 0.47%
Autonomy Corp. PLCa		117,750		3,146,680
Sage Group PLC (The)		709,500		3,280,828
				6,427,508
TELECOMMUNICATIONS – 7.13%
BT Group PLC		4,237,500		12,557,761
Cable & Wireless Worldwide PLC		1,412,250		1,650,412
Inmarsat PLC		238,125		2,594,980
Vodafone Group PLC		28,383,375		80,466,582
				97,269,735
TRANSPORTATION – 0.11%
FirstGroup PLC		261,375		1,550,861
				1,550,861
VENTURE CAPITAL – 0.20%
3i Group PLC		527,625		2,680,103
				2,680,103
WATER – 0.49%
Severn Trent PLC		128,250		3,101,862
United Utilities Group PLC		367,875		3,542,225
				6,644,087
TOTAL COMMON STOCKS
(Cost: $1,367,718,534)				1,358,464,874
SHORT-TERM INVESTMENTS – 0.06%
MONEY MARKET FUNDS – 0.06%
BlackRock Cash Funds: Treasury,
SL Agency Shares
0.07%b,c		868,196		868,196
				868,196
TOTAL SHORT-TERM INVESTMENTS
(Cost: $868,196)				868,196

	Value
TOTAL INVESTMENTS IN SECURITIES – 99.60%
(Cost: $1,368,586,730)	$	1,359,333,070
Other Assets, Less Liabilities – 0.40%		5,429,015
NET ASSETS – 100.00%	$	1,364,762,085

^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 49

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2011

	iShares MSCI Austria Investable Market Index Fund			iShares MSCI Belgium Investable Market Index Fund			iShares MSCI Emerging Markets Eastern Europe Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	243,968,096		$	57,729,461		$	27,320,875
Affiliated issuers (Note 2)		1,822,430			313,604			8,366
Total cost of investments	$	245,790,526		$	58,043,065		$	27,329,241
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	205,882,852		$	40,859,666		$	32,253,714
Affiliated issuers (Note 2)		1,822,430			313,604			8,366
Total fair value of investments		207,705,282			41,173,270			32,262,080
Foreign currencies, at valueb		240,456			21,708			15,532
Receivables:
Investment securities sold		2,458,652			278,198			332,427
Dividends and interest		636,845			729,978			827
Total Assets		211,041,235			42,203,154			32,610,866
LIABILITIES
Payables:
Investment securities purchased		2,480,663			–			333,123
Collateral for securities on loan (Note 5)		1,819,750			310,243			–
Investment advisory fees (Note 2)		84,645			16,560			16,306
Total Liabilities		4,385,058			326,803			349,429
NET ASSETS	$	206,656,177		$	41,876,351		$	32,261,437
Net assets consist of:
Paid-in capital	$	295,714,091		$	96,180,654		$	27,569,517
Distributions in excess of net investment income or accumulated net investment loss		(619,593	)		(210,499	)		(2,725	)
Accumulated net realized loss		(50,385,348	)		(37,141,446	)		(238,609	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		(38,052,973	)		(16,952,358	)		4,933,254
NET ASSETS	$	206,656,177		$	41,876,351		$	32,261,437
Shares outstandingc		9,100,000			3,040,000			950,000
Net asset value per share	$	22.71		$	13.78		$	33.96

^a  Securities on loan with values of $1,698,504, $244,955 and $–, respectively. See Note 5.

^b  Cost of foreign currencies: $238,410, $21,239 and $15,220, respectively.

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

See notes to financial statements.

50 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)(Continued)

iSHARES^®, INC.

February 28, 2011

	iShares MSCI EMU Index Fund			iShares MSCI France Index Fund			iShares MSCI Germany Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	1,041,169,108		$	378,669,681		$	2,419,949,403
Affiliated issuers (Note 2)		4,178,794			366,422			1,023,327
Total cost of investments	$	1,045,347,902		$	379,036,103		$	2,420,972,730
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	815,446,815		$	316,406,971		$	2,642,943,772
Affiliated issuers (Note 2)		4,178,794			366,422			1,023,327
Total fair value of investments		819,625,609			316,773,393			2,643,967,099
Foreign currencies, at valueb		575,465			243,863			3,187,234
Receivables:
Investment securities sold		1,192,171			638,994			23,260,408
Dividends and interest		516,435			38,236			2,320,748
Capital shares sold		321,164			–			–
Total Assets		822,230,844			317,694,486			2,672,735,489
LIABILITIES
Payables:
Investment securities purchased		1,013,237			495,452			23,545,910
Collateral for securities on loan (Note 5)		3,994,629			328,532			–
Investment advisory fees (Note 2)		300,603			120,910			966,858
Total Liabilities		5,308,469			944,894			24,512,768
NET ASSETS	$	816,922,375		$	316,749,592		$	2,648,222,721
Net assets consist of:
Paid-in capital	$	1,187,279,675		$	396,692,651		$	2,545,920,544
Undistributed (distributions in excess of) net investment income		(942,750	)		(335,514	)		1,479,531
Accumulated net realized loss		(143,681,437	)		(17,349,638	)		(122,331,323	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		(225,733,113	)		(62,257,907	)		223,153,969
NET ASSETS	$	816,922,375		$	316,749,592		$	2,648,222,721
Shares outstandingc		21,200,000			11,800,000			102,000,000
Net asset value per share	$	38.53		$	26.84		$	25.96

^a  Securities on loan with values of $3,805,595, $313,978 and $–, respectively. See Note 5.

^b  Cost of foreign currencies: $565,567, $239,541 and $3,158,404, respectively.

^c  $0.001 par value, number of shares authorized: 1 billion, 340.2 million and 382.2 million, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2011

	iShares MSCI Italy Index Fund			iShares MSCI Netherlands Investable Market Index Fund			iShares MSCI Spain Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	185,081,445		$	208,196,937		$	374,665,904
Affiliated issuers (Note 2)		5,108,687			766,825			10,957,109
Total cost of investments	$	190,190,132		$	208,963,762		$	385,623,013
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	147,363,738		$	194,614,122		$	299,986,558
Affiliated issuers (Note 2)		5,108,687			766,825			10,957,109
Total fair value of investments		152,472,425			195,380,947			310,943,667
Foreign currencies, at valueb		92,859			1,430,918			109,674
Receivables:
Investment securities sold		–			802,904			4,070,929
Due from custodian (Note 4)		–			1,852,621			–
Dividends and interest		29,395			291,278			45,461
Capital shares sold		–			20,242			–
Total Assets		152,594,679			199,778,910			315,169,731
LIABILITIES
Payables:
Investment securities purchased		–			2,690,071			4,032,095
Collateral for securities on loan (Note 5)		4,988,500			685,893			10,697,852
Investment advisory fees (Note 2)		53,546			71,881			106,861
Total Liabilities		5,042,046			3,447,845			14,836,808
NET ASSETS	$	147,552,633		$	196,331,065		$	300,332,923
Net assets consist of:
Paid-in capital	$	223,638,481		$	244,832,110		$	404,087,961
Undistributed (distributions in excess of) net investment income		(93,110	)		122,952			563,386
Accumulated net realized loss		(38,276,597	)		(35,044,966	)		(29,642,159	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(37,716,141	)		(13,579,031	)		(74,676,265	)
NET ASSETS	$	147,552,633		$	196,331,065		$	300,332,923
Shares outstandingc		7,950,000			8,750,000			7,125,000
Net asset value per share	$	18.56		$	22.44		$	42.15

^a  Securities on loan with values of $4,744,592, $651,396 and $10,175,562, respectively. See Note 5.

^b  Cost of foreign currencies: $91,292, $1,429,238 and $106,953, respectively.

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

See notes to financial statements.

52 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)(Continued)

iSHARES^®, INC.

February 28, 2011

	iShares MSCI Sweden Index Fund			iShares MSCI Switzerland Index Fund			iShares MSCI United Kingdom Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	635,640,461		$	449,937,303		$	1,367,718,534
Affiliated issuers (Note 2)		2,929,901			949,387			868,196
Total cost of investments	$	638,570,362		$	450,886,690		$	1,368,586,730
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	677,926,955		$	498,862,776		$	1,358,464,874
Affiliated issuers (Note 2)		2,929,901			949,387			868,196
Total fair value of investments		680,856,856			499,812,163			1,359,333,070
Foreign currencies, at valueb		53,061			536,367			2,918,441
Receivables:
Investment securities sold		11,628,413			4,368,444			1,589,675
Dividends and interest		376			3,746,395			5,008,080
Capital shares sold		–			1,089,102			111,846
Total Assets		692,538,706			509,552,471			1,368,961,112
LIABILITIES
Payables:
Investment securities purchased		11,436,508			5,603,453			3,691,007
Collateral for securities on loan (Note 5)		2,510,923			840,000			–
Investment advisory fees (Note 2)		239,728			188,495			508,020
Total Liabilities		14,187,159			6,631,948			4,199,027
NET ASSETS	$	678,351,547		$	502,920,523		$	1,364,762,085
Net assets consist of:
Paid-in capital	$	674,152,894		$	494,770,161		$	1,499,271,667
Undistributed net investment income (accumulated net investment loss)		(836,702	)		894,994			5,416,464
Accumulated net realized loss		(37,251,670	)		(41,951,852	)		(130,718,624	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		42,287,025			49,207,220			(9,207,422	)
NET ASSETS	$	678,351,547		$	502,920,523		$	1,364,762,085
Shares outstandingc		21,150,000			19,625,000			75,000,000
Net asset value per share	$	32.07		$	25.63		$	18.20

^a  Securities on loan with values of $2,388,921, $798,687 and $–, respectively. See Note 5.

^b  Cost of foreign currencies: $52,530, $514,109 and $2,892,843, respectively.

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

See notes to financial statements.

FINANCIAL STATEMENTS 53

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2011

	iShares MSCI Austria Investable Market Index Fund			iShares MSCI Belgium Investable Market Index Fund			iShares MSCI Emerging Markets Eastern Europe Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	560		$	206,059		$	71,858
Interest from unaffiliated issuers		15,319			–			–
Interest from affiliated issuers (Note 2)		42			19			24
Securities lending income from affiliated issuers (Note 2)		10,557			6,273			–
Total investment income		26,478			212,351			71,882
EXPENSES
Investment advisory fees (Note 2)		398,537			145,432			67,726
Total expenses		398,537			145,432			67,726
Less investment advisory fees waived (Note 2)		–			–			(462	)
Net expenses		398,537			145,432			67,264
Net investment income (loss)		(372,059	)		66,919			4,618
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(3,819,445	)		(5,626,726	)		(27,635	)
In-kind redemptions		5,904,383			3,720,808			–
Foreign currency transactions		(69,346	)		9,560			(2,128	)
Net realized gain (loss)		2,015,592			(1,896,358	)		(29,763	)
Net change in unrealized appreciation/depreciation on:
Investments		35,926,464			11,351,862			5,192,845
Translation of assets and liabilities in foreign currencies		198,232			62,889			417
Net change in unrealized appreciation/depreciation		36,124,696			11,414,751			5,193,262
Net realized and unrealized gain		38,140,288			9,518,393			5,163,499
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	37,768,229		$	9,585,312		$	5,168,117

^a  Net of foreign withholding tax of $49,997, $43,665 and $15,339, respectively.

See notes to financial statements.

54 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)(Continued)

iSHARES^®, INC.

Six months ended February 28, 2011

	iShares MSCI EMU Index Fund			iShares MSCI France Index Fund			iShares MSCI Germany Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	6,489,673		$	2,181,136		$	6,346,612
Interest from affiliated issuers (Note 2)		275			75			248
Securities lending income from affiliated issuers (Note 2)		77,891			5,871			37,872
Total investment income		6,567,839			2,187,082			6,384,732
EXPENSES
Investment advisory fees (Note 2)		2,113,389			750,466			4,905,201
Total expenses		2,113,389			750,466			4,905,201
Net investment income		4,454,450			1,436,616			1,479,531
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(17,720,858	)		(1,458,070	)		(58,960,769	)
In-kind redemptions		13,906,763			5,187,606			59,624,479
Foreign currency transactions		46,868			44,681			555,852
Net realized gain (loss)		(3,767,227	)		3,774,217			1,219,562
Net change in unrealized appreciation/depreciation on:
Investments		182,885,094			63,803,470			499,334,115
Translation of assets and liabilities in foreign currencies		66,562			4,215			139,629
Net change in unrealized appreciation/depreciation		182,951,656			63,807,685			499,473,744
Net realized and unrealized gain		179,184,429			67,581,902			500,693,306
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	183,638,879		$	69,018,518		$	502,172,837

^a  Net of foreign withholding tax of $847,384, $262,055 and $1,049,763, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 55

Statements of Operations (Unaudited)(Continued)

iSHARES^®, INC.

Six months ended February 28, 2011

	iShares MSCI Italy Index Fund			iShares MSCI Netherlands Investable Market Index Fund		iShares MSCI Spain Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	746,162		$	615,280	$	3,671,099
Interest from affiliated issuers (Note 2)		31			31		135
Securities lending income from affiliated issuers (Note 2)		33,421			11,313		107,953
		779,614			626,624		3,779,187
Less: Other foreign taxes (Note 1)		(914	)		–		–
Total investment income		778,700			626,624		3,779,187
EXPENSES
Investment advisory fees (Note 2)		248,352			444,060		481,971
Total expenses		248,352			444,060		481,971
Net investment income		530,348			182,564		3,297,216
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(5,739,277	)		275,595		(7,068,528	)
In-kind redemptions		5,136,078			4,402,079		10,033,358
Foreign currency transactions		42,593			4,730		(341	)
Net realized gain (loss)		(560,606	)		4,682,404		2,964,489
Net change in unrealized appreciation/depreciation on:
Investments		21,624,689			32,818,093		25,885,174
Translation of assets and liabilities in foreign currencies		3,273			13,692		6,080
Net change in unrealized appreciation/depreciation		21,627,962			32,831,785		25,891,254
Net realized and unrealized gain		21,067,356			37,514,189		28,855,743
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	21,597,704		$	37,696,753	$	32,152,959

^a  Net of foreign withholding tax of $126,892, $108,579 and $393,080, respectively.

See notes to financial statements.

56 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)(Continued)

iSHARES^®, INC.

Six months ended February 28, 2011

	iShares MSCI Sweden Index Fund			iShares MSCI Switzerland Index Fund			iShares MSCI United Kingdom Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	193,195		$	2,071,600		$	14,186,640
Interest from affiliated issuers (Note 2)		60			79			429
Securities lending income from affiliated issuers (Note 2)		4,866			1,716			5,047
Total investment income		198,121			2,073,395			14,192,116
EXPENSES
Investment advisory fees (Note 2)		1,031,995			1,178,401			2,841,961
Total expenses		1,031,995			1,178,401			2,841,961
Net investment income (loss)		(833,874	)		894,994			11,350,155
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(3,798,147	)		(1,877,720	)		(8,608,321	)
In-kind redemptions		1,549,504			3,481,975			13,729,893
Foreign currency transactions		77,163			280,561			121,710
Net realized gain (loss)		(2,171,480	)		1,884,816			5,243,282
Net change in unrealized appreciation/depreciation on:
Investments		93,764,775			72,470,295			194,020,897
Translation of assets and liabilities in foreign currencies		(3,806	)		61,345			206,589
Net change in unrealized appreciation/depreciation		93,760,969			72,531,640			194,227,486
Net realized and unrealized gain		91,589,489			74,416,456			199,470,768
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	90,755,615		$	75,311,450		$	210,820,923

^a  Net of foreign withholding tax of $–, $522,112 and $243,855, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 57

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, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	(372,059	)	$	3,373,743		$	66,919		$	1,126,180
Net realized gain (loss)		2,015,592			(8,201,889	)		(1,896,358	)		(10,076,096	)
Net change in unrealized appreciation/depreciation		36,124,696			(14,419,288	)		11,414,751			14,374,647
Net increase (decrease) in net assets resulting from operations		37,768,229			(19,247,434	)		9,585,312			5,424,731
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(444,755	)		(5,965,890	)		(353,203	)		(1,145,981	)
Total distributions to shareholders		(444,755	)		(5,965,890	)		(353,203	)		(1,145,981	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		123,107,555			154,605,120			13,428,990			122,747,250
Cost of shares redeemed		(64,294,513	)		(178,538,062	)		(39,680,925	)		(121,172,070	)
Net increase (decrease) in net assets from capital share transactions		58,813,042			(23,932,942	)		(26,251,935	)		1,575,180
INCREASE (DECREASE) IN NET ASSETS		96,136,516			(49,146,266	)		(17,019,826	)		5,853,930
NET ASSETS
Beginning of period		110,519,661			159,665,927			58,896,177			53,042,247
End of period	$	206,656,177		$	110,519,661		$	41,876,351		$	58,896,177
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	(619,593	)	$	197,221		$	(210,499	)	$	75,785
SHARES ISSUED AND REDEEMED
Shares sold		5,700,000			7,600,000			1,000,000			10,160,000
Shares redeemed		(3,000,000	)		(9,100,000	)		(2,960,000	)		(9,560,000	)
Net increase (decrease) in shares outstanding		2,700,000			(1,500,000	)		(1,960,000	)		600,000

See notes to financial statements.

58 2011 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
	Six months ended February 28, 2011 (Unaudited)			Period from September 30, 2009a to August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,618		$	103,151		$	4,454,450		$	19,143,111
Net realized loss		(29,763	)		(203,443	)		(3,767,227	)		(15,434,929	)
Net change in unrealized appreciation/depreciation		5,193,262			(260,008	)		182,951,656			(93,999,959	)
Net increase (decrease) in net assets resulting from operations		5,168,117			(360,300	)		183,638,879			(90,291,777	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(46,705	)		(64,350	)		(5,993,392	)		(21,378,328	)
From net realized gain		–			(4,842	)		–			–
Total distributions to shareholders		(46,705	)		(69,192	)		(5,993,392	)		(21,378,328	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		14,308,425			13,261,092			61,290,656			616,111,927
Cost of shares redeemed		–			–			(245,985,805	)		(421,739,675	)
Net increase (decrease) in net assets from capital share transactions		14,308,425			13,261,092			(184,695,149	)		194,372,252
INCREASE (DECREASE) IN NET ASSETS		19,429,837			12,831,600			(7,049,662	)		82,702,147
NET ASSETS
Beginning of period		12,831,600			–			823,972,037			741,269,890
End of period	$	32,261,437		$	12,831,600		$	816,922,375		$	823,972,037
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(2,725	)	$	39,362		$	(942,750	)	$	596,192
SHARES ISSUED AND REDEEMED
Shares sold		450,000			500,000			1,600,000			18,100,000
Shares redeemed		–			–			(7,200,000	)		(12,100,000	)
Net increase (decrease) in shares outstanding		450,000			500,000			(5,600,000	)		6,000,000

^a  Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 59

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI France Index Fund						iShares MSCI Germany Index Fund
	Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,436,616		$	7,946,760		$	1,479,531		$	18,436,764
Net realized gain (loss)		3,774,217			(8,608,895	)		1,219,562			2,496,753
Net change in unrealized appreciation/depreciation		63,807,685			(40,527,838	)		499,473,744			(95,695,088	)
Net increase (decrease) in net assets resulting from operations		69,018,518			(41,189,973	)		502,172,837			(74,761,571	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,118,525	)		(8,068,942	)		–			(20,484,235	)
Total distributions to shareholders		(2,118,525	)		(8,068,942	)		–			(20,484,235	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		55,559,334			358,661,968			961,655,313			1,389,774,707
Cost of shares redeemed		(45,416,169	)		(254,208,011	)		(303,486,431	)		(426,285,646	)
Net increase in net assets from capital share transactions		10,143,165			104,453,957			658,168,882			963,489,061
INCREASE IN NET ASSETS		77,043,158			55,195,042			1,160,341,719			868,243,255
NET ASSETS
Beginning of period		239,706,434			184,511,392			1,487,881,002			619,637,747
End of period	$	316,749,592		$	239,706,434		$	2,648,222,721		$	1,487,881,002
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(335,514	)	$	346,395		$	1,479,531		$	–
SHARES ISSUED AND REDEEMED
Shares sold		2,200,000			15,000,000			38,700,000			67,200,000
Shares redeemed		(1,800,000	)		(11,200,000	)		(13,200,000	)		(20,400,000	)
Net increase in shares outstanding		400,000			3,800,000			25,500,000			46,800,000

See notes to financial statements.

60 2011 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, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	530,348		$	2,526,028		$	182,564		$	2,594,922
Net realized gain (loss)		(560,606	)		(7,791,468	)		4,682,404			(4,073,218	)
Net change in unrealized appreciation/depreciation		21,627,962			(14,934,273	)		32,831,785			(4,949,050	)
Net increase (decrease) in net assets resulting from operations		21,597,704			(20,199,713	)		37,696,753			(6,427,346	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(623,006	)		(3,028,440	)		(455,768	)		(2,418,715	)
Return of capital		–			(96,798	)		–			–
Total distributions to shareholders		(623,006	)		(3,125,238	)		(455,768	)		(2,418,715	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		130,713,951			87,900,548			39,995,889			94,430,557
Cost of shares redeemed		(80,636,068	)		(113,791,470	)		(28,516,316	)		(21,325,132	)
Net increase (decrease) in net assets from capital share transactions		50,077,883			(25,890,922	)		11,479,573			73,105,425
INCREASE (DECREASE) IN NET ASSETS		71,052,581			(49,215,873	)		48,720,558			64,259,364
NET ASSETS
Beginning of period		76,500,052			125,715,925			147,610,507			83,351,143
End of period	$	147,552,633		$	76,500,052		$	196,331,065		$	147,610,507
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(93,110	)	$	(452	)	$	122,952		$	396,156
SHARES ISSUED AND REDEEMED
Shares sold		7,650,000			5,250,000			1,850,000			4,850,000
Shares redeemed		(4,800,000	)		(6,750,000	)		(1,350,000	)		(1,100,000	)
Net increase (decrease) in shares outstanding		2,850,000			(1,500,000	)		500,000			3,750,000

See notes to financial statements.

FINANCIAL STATEMENTS 61

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Spain Index Fund						iShares MSCI Sweden Index Fund
	Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	3,297,216		$	9,022,079		$	(833,874	)	$	4,069,874
Net realized gain (loss)		2,964,489			(34,736,468	)		(2,171,480	)		(2,661,078	)
Net change in unrealized appreciation/depreciation		25,891,254			(22,172,420	)		93,760,969			9,087,749
Net increase (decrease) in net assets resulting from operations		32,152,959			(47,886,809	)		90,755,615			10,496,545
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(3,998,596	)		(11,300,415	)		–			(4,773,557	)
Total distributions to shareholders		(3,998,596	)		(11,300,415	)		–			(4,773,557	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		288,878,311			185,418,132			344,762,664			136,592,737
Cost of shares redeemed		(211,061,273	)		(210,603,819	)		(6,657,920	)		(83,157,268	)
Net increase (decrease) in net assets from capital share transactions		77,817,038			(25,185,687	)		338,104,744			53,435,469
INCREASE (DECREASE) IN NET ASSETS		105,971,401			(84,372,911	)		428,860,359			59,158,457
NET ASSETS
Beginning of period		194,361,522			278,734,433			249,491,188			190,332,731
End of period	$	300,332,923		$	194,361,522		$	678,351,547		$	249,491,188
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	563,386		$	1,264,766		$	(836,702	)	$	(2,828	)
SHARES ISSUED AND REDEEMED
Shares sold		7,050,000			4,800,000			11,175,000			5,400,000
Shares redeemed		(5,175,000	)		(5,400,000	)		(225,000	)		(3,525,000	)
Net increase (decrease) in shares outstanding		1,875,000			(600,000	)		10,950,000			1,875,000

See notes to financial statements.

62 2011 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, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	894,994		$	6,014,037		$	11,350,155		$	27,740,950
Net realized gain (loss)		1,884,816			(3,149,216	)		5,243,282			3,681,580
Net change in unrealized appreciation/depreciation		72,531,640			13,666,076			194,227,486			(20,637,671	)
Net increase in net assets resulting from operations		75,311,450			16,530,897			210,820,923			10,784,859
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		–			(6,459,032	)		(11,118,254	)		(27,007,036	)
Total distributions to shareholders		–			(6,459,032	)		(11,118,254	)		(27,007,036	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		36,692,540			150,874,722			292,537,039			352,106,687
Cost of shares redeemed		(14,838,077	)		(27,046,917	)		(57,889,272	)		(144,597,222	)
Net increase in net assets from capital share transactions		21,854,463			123,827,805			234,647,767			207,509,465
INCREASE IN NET ASSETS		97,165,913			133,899,670			434,350,436			191,287,288
NET ASSETS
Beginning of period		405,754,610			271,854,940			930,411,649			739,124,361
End of period	$	502,920,523		$	405,754,610		$	1,364,762,085		$	930,411,649
Undistributed net investment income included in net assets at end of period	$	894,994		$	–		$	5,416,464		$	5,184,563
SHARES ISSUED AND REDEEMED
Shares sold		1,500,000			6,875,000			16,600,000			22,200,000
Shares redeemed		(625,000	)		(1,250,000	)		(3,600,000	)		(9,400,000	)
Net increase in shares outstanding		875,000			5,625,000			13,000,000			12,800,000

See notes to financial statements.

FINANCIAL STATEMENTS 63

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Austria Investable Market Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	17.27		$	20.21		$	29.78		$	37.28		$	31.08		$	26.62
Income from investment operations:
Net investment income (loss)a		(0.05	)		0.43			0.51			0.56			0.51			0.44
Net realized and unrealized gain (loss)b		5.57			(2.62	)		(9.36	)		(6.98	)		6.42			4.31
Total from investment operations		5.52			(2.19	)		(8.85	)		(6.42	)		6.93			4.75
Less distributions from:
Net investment income		(0.08	)		(0.75	)		(0.72	)		(1.08	)		(0.73	)		(0.29	)
Total distributions		(0.08	)		(0.75	)		(0.72	)		(1.08	)		(0.73	)		(0.29	)
Net asset value, end of period	$	22.71		$	17.27		$	20.21		$	29.78		$	37.28		$	31.08
Total return		32.00	%c		(11.07	)%		(28.52	)%		(17.64	)%		22.35	%		18.00	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	206,656		$	110,520		$	159,666		$	193,602		$	473,514		$	391,637
Ratio of expenses to average net assetsd		0.52	%		0.54	%		0.55	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income (loss) to average net assetsd		(0.49	)%		2.20	%		3.25	%		1.57	%		1.36	%		1.48	%
Portfolio turnover ratee		3	%		11	%		26	%		26	%		21	%		32	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

64 2011 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, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	11.78		$	12.06		$	17.64		$	25.89		$	22.83		$	18.94
Income from investment operations:
Net investment incomea		0.02			0.19			0.22			0.78			0.76			0.75
Net realized and unrealized gain (loss)b		2.07			(0.27	)		(5.46	)		(7.27	)		2.74			3.95
Total from investment operations		2.09			(0.08	)		(5.24	)		(6.49	)		3.50			4.70
Less distributions from:
Net investment income		(0.09	)		(0.20	)		(0.34	)		(1.76	)		(0.44	)		(0.81	)
Total distributions		(0.09	)		(0.20	)		(0.34	)		(1.76	)		(0.44	)		(0.81	)
Net asset value, end of period	$	13.78		$	11.78		$	12.06		$	17.64		$	25.89		$	22.83
Total return		17.81	%c		(0.60	)%		(29.15	)%		(26.21	)%		15.36	%		25.66	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	41,876		$	58,896		$	53,042		$	119,955		$	303,483		$	152,484
Ratio of expenses to average net assetsd		0.53	%		0.54	%		0.56	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to average net assetsd		0.24	%		1.55	%		2.23	%		3.32	%		2.90	%		3.60	%
Portfolio turnover ratee		1	%		17	%		33	%		31	%		12	%		10	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 65

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Emerging Markets Eastern Europe Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Period from Sep 30, 2009a to Aug. 31, 2010
Net asset value, beginning of period	$	25.66		$	24.65
Income from investment operations:
Net investment incomeb		0.01			0.26
Net realized and unrealized gainc		8.37			0.89
Total from investment operations		8.38			1.15
Less distributions from:
Net investment income		(0.08	)		(0.13	)
Net realized gain		–			(0.01	)
Total distributions		(0.08	)		(0.14	)
Net asset value, end of period	$	33.96		$	25.66
Total return		32.68	%d		4.68	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	32,261		$	12,832
Ratio of expenses to average net assets prior to waived feese		0.67	%		0.69	%
Ratio of expenses to average net assets after waived feese		0.67	%		n/a
Ratio of net investment income to average net assetse		0.05	%		1.05	%
Portfolio turnover ratef		7	%		13	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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.

66 2011 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, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a
Net asset value, beginning of period	$	30.75		$	35.64		$	45.97		$	57.15		$	46.14		$	37.49
Income from investment operations:
Net investment incomeb		0.20			0.80			0.93			1.71			1.40			1.37
Net realized and unrealized gain (loss)c		7.86			(4.76	)		(9.97	)		(9.59	)		10.54			7.94
Total from investment operations		8.06			(3.96	)		(9.04	)		(7.88	)		11.94			9.31
Less distributions from:
Net investment income		(0.28	)		(0.93	)		(1.29	)		(3.30	)		(0.93	)		(0.66	)
Total distributions		(0.28	)		(0.93	)		(1.29	)		(3.30	)		(0.93	)		(0.66	)
Net asset value, end of period	$	38.53		$	30.75		$	35.64		$	45.97		$	57.15		$	46.14
Total return		26.31	%d		(11.19	)%		(19.05	)%		(14.52	)%		26.10	%		25.18	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	816,922		$	823,972		$	741,270		$	1,291,808		$	2,971,565		$	1,794,921
Ratio of expenses to average net assetse,f		0.53	%		0.54	%		0.56	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to average net assetse		1.11	%		2.29	%		3.07	%		3.06	%		2.60	%		3.23	%
Portfolio turnover rateg		2	%		5	%		8	%		27	%		5	%		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  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

^f  Amounts have been adjusted as necessary to be consistent with current period presentation of foreign taxes.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 67

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI France Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	21.03		$	24.28		$	30.70		$	36.53		$	31.16		$	25.41
Income from investment operations:
Net investment incomea		0.12			0.65			0.66			0.93			0.77			0.55
Net realized and unrealized gain (loss)b		5.87			(3.30	)		(6.13	)		(5.17	)		5.06			5.52
Total from investment operations		5.99			(2.65	)		(5.47	)		(4.24	)		5.83			6.07
Less distributions from:
Net investment income		(0.18	)		(0.60	)		(0.95	)		(1.59	)		(0.46	)		(0.32	)
Total distributions		(0.18	)		(0.60	)		(0.95	)		(1.59	)		(0.46	)		(0.32	)
Net asset value, end of period	$	26.84		$	21.03		$	24.28		$	30.70		$	36.53		$	31.16
Total return		28.56	%c		(10.98	)%		(17.11	)%		(11.96	)%		18.83	%		24.13	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	316,750		$	239,706		$	184,511		$	227,203		$	445,696		$	211,886
Ratio of expenses to average net assetsd,e		0.53	%		0.53	%		0.55	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to average net assetsd		1.01	%		2.71	%		3.18	%		2.60	%		2.17	%		1.95	%
Portfolio turnover ratef		2	%		6	%		6	%		10	%		6	%		10	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Not annualized.

^d  Annualized for periods of less than one year.

^e  Amounts have been adjusted as necessary to be consistent with current period presentation of foreign taxes.

^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.

68 2011 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, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	19.45		$	20.86		$	27.55		$	32.18		$	23.68		$	19.08
Income from investment operations:
Net investment incomea		0.02			0.38			0.58			0.88			0.68			0.57
Net realized and unrealized gain (loss)b		6.49			(1.49	)		(6.65	)		(3.84	)		8.33			4.15
Total from investment operations		6.51			(1.11	)		(6.07	)		(2.96	)		9.01			4.72
Less distributions from:
Net investment income		–			(0.30	)		(0.62	)		(1.67	)		(0.51	)		(0.12	)
Total distributions		–			(0.30	)		(0.62	)		(1.67	)		(0.51	)		(0.12	)
Net asset value, end of period	$	25.96		$	19.45		$	20.86		$	27.55		$	32.18		$	23.68
Total return		33.47	%c		(5.35	)%		(21.62	)%		(9.81	)%		38.47	%		24.82	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,648,223		$	1,487,881		$	619,638		$	669,452		$	1,641,245		$	802,795
Ratio of expenses to average net assetsd		0.53	%		0.53	%		0.55	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to average net assetsd		0.16	%		1.80	%		3.18	%		2.72	%		2.32	%		2.62	%
Portfolio turnover ratee		6	%		5	%		15	%		11	%		4	%		12	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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 69

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Italy Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	15.00		$	19.05		$	25.04		$	33.82		$	30.48		$	25.77
Income from investment operations:
Net investment incomea		0.10			0.39			0.47			1.53			1.35			1.07
Net realized and unrealized gain (loss)b		3.56			(3.99	)		(5.82	)		(7.71	)		2.66			4.15
Total from investment operations		3.66			(3.60	)		(5.35	)		(6.18	)		4.01			5.22
Less distributions from:
Net investment income		(0.10	)		(0.44	)		(0.64	)		(2.60	)		(0.67	)		(0.51	)
Return of capital		–			(0.01	)		–			–			–			–
Total distributions		(0.10	)		(0.45	)		(0.64	)		(2.60	)		(0.67	)		(0.51	)
Net asset value, end of period	$	18.56		$	15.00		$	19.05		$	25.04		$	33.82		$	30.48
Total return		24.46	%c		(19.11	)%		(20.78	)%		(19.43	)%		13.20	%		20.61	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	147,553		$	76,500		$	125,716		$	244,154		$	172,495		$	146,324
Ratio of expenses to average net assetsd,e		0.52	%		0.54	%		0.55	%		0.52	%		0.52	%		0.54	%
Ratio of net investment income to average net assetsd		1.12	%		2.17	%		2.85	%		5.06	%		4.02	%		3.87	%
Portfolio turnover ratef		6	%		12	%		18	%		29	%		16	%		15	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Not annualized.

^d  Annualized for periods of less than one year.

^e  Amounts have been adjusted as necessary to be consistent with current period presentation of foreign taxes.

^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.

70 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Netherlands Investable Markets Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	17.89		$	18.52		$	24.38		$	29.75		$	24.17		$	19.10
Income from investment operations:
Net investment incomea		0.02			0.45			0.35			1.10			0.98			0.60
Net realized and unrealized gain (loss)b		4.58			(0.70	)		(5.55	)		(4.68	)		5.05			4.95
Total from investment operations		4.60			(0.25	)		(5.20	)		(3.58	)		6.03			5.55
Less distributions from:
Net investment income		(0.05	)		(0.38	)		(0.66	)		(1.79	)		(0.45	)		(0.48	)
Total distributions		(0.05	)		(0.38	)		(0.66	)		(1.79	)		(0.45	)		(0.48	)
Net asset value, end of period	$	22.44		$	17.89		$	18.52		$	24.38		$	29.75		$	24.17
Total return		25.77	%c		(1.44	)%		(20.59	)%		(12.67	)%		25.22	%		29.53	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	196,331		$	147,611		$	83,351		$	209,653		$	251,354		$	109,991
Ratio of expenses to average net assetsd		0.53	%		0.53	%		0.55	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to average net assetsd		0.22	%		2.31	%		2.24	%		3.86	%		3.50	%		2.78	%
Portfolio turnover ratee		1	%		9	%		15	%		26	%		8	%		17	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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 71

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Spain Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	37.02		$	47.65		$	50.41		$	58.06		$	44.81		$	35.70
Income from investment operations:
Net investment incomea		0.71			1.64			1.75			1.98			1.30			1.07
Net realized and unrealized gain (loss)b		5.53			(10.01	)		(2.14	)		(7.33	)		12.33			8.78
Total from investment operations		6.24			(8.37	)		(0.39	)		(5.35	)		13.63			9.85
Less distributions from:
Net investment income		(1.11	)		(2.26	)		(2.37	)		(2.30	)		(0.38	)		(0.74	)
Total distributions		(1.11	)		(2.26	)		(2.37	)		(2.30	)		(0.38	)		(0.74	)
Net asset value, end of period	$	42.15		$	37.02		$	47.65		$	50.41		$	58.06		$	44.81
Total return		17.26	%c		(17.91	)%		0.64	%		(9.76	)%		30.47	%		28.09	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	300,333		$	194,362		$	278,734		$	321,349		$	522,556		$	178,130
Ratio of expenses to average net assetsd		0.53	%		0.54	%		0.56	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to average net assetsd		3.59	%		3.72	%		4.70	%		3.28	%		2.36	%		2.67	%
Portfolio turnover ratee		7	%		9	%		19	%		22	%		12	%		6	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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.

72 2011 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, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	24.46		$	22.86		$	24.48		$	34.57		$	25.88		$	21.58
Income from investment operations:
Net investment income (loss)a		(0.06	)		0.48			0.40			0.91			1.15			0.76
Net realized and unrealized gain (loss)b		7.67			1.73			(1.56	)		(8.63	)		7.88			3.96
Total from investment operations		7.61			2.21			(1.16	)		(7.72	)		9.03			4.72
Less distributions from:
Net investment income		–			(0.61	)		(0.46	)		(2.37	)		(0.34	)		(0.42	)
Total distributions		–			(0.61	)		(0.46	)		(2.37	)		(0.34	)		(0.42	)
Net asset value, end of period	$	32.07		$	24.46		$	22.86		$	24.48		$	34.57		$	25.88
Total return		31.11	%c		9.70	%		(4.04	)%		(23.16	)%		35.01	%		22.16	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	678,352		$	249,491		$	190,333		$	227,654		$	573,026		$	151,427
Ratio of expenses to average net assetsd		0.52	%		0.53	%		0.55	%		0.51	%		0.51	%		0.54	%
Ratio of net investment income (loss) to average net assetsd		(0.42	)%		1.97	%		2.34	%		2.91	%		3.42	%		3.13	%
Portfolio turnover ratee		5	%		10	%		9	%		17	%		7	%		14	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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 73

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Switzerland Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	21.64		$	20.71		$	23.09		$	25.78		$	22.49		$	17.63
Income from investment operations:
Net investment incomea		0.05			0.39			0.25			0.49			0.36			0.27
Net realized and unrealized gain (loss)b		3.94			0.90			(2.30	)		(2.51	)		3.12			4.71
Total from investment operations		3.99			1.29			(2.05	)		(2.02	)		3.48			4.98
Less distributions from:
Net investment income		–			(0.36	)		(0.33	)		(0.67	)		(0.19	)		(0.12	)
Total distributions		–			(0.36	)		(0.33	)		(0.67	)		(0.19	)		(0.12	)
Net asset value, end of period	$	25.63		$	21.64		$	20.71		$	23.09		$	25.78		$	22.49
Total return		18.44	%c		6.35	%		(8.63	)%		(7.97	)%		15.53	%		28.36	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	502,921		$	405,755		$	271,855		$	366,525		$	318,998		$	188,319
Ratio of expenses to average net assetsd		0.53	%		0.53	%		0.56	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to average net assetsd		0.40	%		1.80	%		1.42	%		1.93	%		1.42	%		1.34	%
Portfolio turnover ratee		3	%		7	%		16	%		11	%		5	%		11	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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.

74 2011 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, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	15.01		$	15.02		$	19.35		$	24.73		$	21.92		$	18.74
Income from investment operations:
Net investment incomea		0.18			0.46			0.50			0.83			0.84			0.97
Net realized and unrealized gain (loss)b		3.18			(0.03	)		(4.26	)		(4.89	)		2.78			2.79
Total from investment operations		3.36			0.43			(3.76	)		(4.06	)		3.62			3.76
Less distributions from:
Net investment income		(0.17	)		(0.44	)		(0.57	)		(1.32	)		(0.81	)		(0.58	)
Total distributions		(0.17	)		(0.44	)		(0.57	)		(1.32	)		(0.81	)		(0.58	)
Net asset value, end of period	$	18.20		$	15.01		$	15.02		$	19.35		$	24.73		$	21.92
Total return		22.47	%c		2.87	%		(18.68	)%		(17.16	)%		16.77	%		20.61	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,364,762		$	930,412		$	739,124		$	882,502		$	1,127,738		$	872,409
Ratio of expenses to average net assetsd		0.53	%		0.53	%		0.55	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to average net assetsd		2.10	%		2.98	%		3.90	%		3.64	%		3.51	%		4.81	%
Portfolio turnover ratee		2	%		7	%		11	%		14	%		8	%		10	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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 75

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 investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. 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 issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

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

76 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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”);

• 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”); and

• 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

NOTES TO FINANCIAL STATEMENTS 77

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of February 28, 2011. 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	Level 1		Level 2		Level 3		Total
Austria Investable Market
Common Stocks	$	205,882,125	$	–	$	262	$	205,882,387
Rights		–				465		465
Short-Term Investments		1,822,430		–		–		1,822,430
	$	207,704,555	$	–	$	727	$	207,705,282
Belgium Investable Market
Common Stocks	$	40,766,168	$	–	$	–	$	40,766,168
Rights		93,498						93,498
Short-Term Investments		313,604		–		–		313,604
	$	41,173,270	$	–	$	–	$	41,173,270
Emerging Markets Eastern Europe
Common Stocks	$	31,664,063	$	–	$	–	$	31,664,063
Preferred Stocks		589,651						589,651
Short-Term Investments		8,366		–		–		8,366
	$	32,262,080	$	–	$	–	$	32,262,080
EMU
Common Stocks	$	800,431,255	$	–	$	86	$	800,431,341
Preferred Stocks		15,015,445		–		–		15,015,445
Rights		–		–		29		29
Short-Term Investments		4,178,794		–		–		4,178,794
	$	819,625,494	$	–	$	115	$	819,625,609
France
Common Stocks	$	316,406,971	$	–	$	–	$	316,406,971
Short-Term Investments		366,422		–		–		366,422
	$	316,773,393	$	–	$	–	$	316,773,393

78 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

	Investments in Securities
iShares MSCI Index Fund	Level 1		Level 2		Level 3		Total
Germany
Common Stocks	$	2,492,100,701	$	–	$	–	$	2,492,100,701
Preferred Stocks		150,843,071						150,843,071
Short-Term Investments		1,023,327		–		–		1,023,327
	$	2,643,967,099	$	–	$	–	$	2,643,967,099
Italy
Common Stocks	$	144,687,593	$	–	$	–	$	144,687,593
Preferred Stocks		2,676,145		–		–		2,676,145
Short-Term Investments		5,108,687		–		–		5,108,687
	$	152,472,425	$	–	$	–	$	152,472,425
Netherlands Investable Market
Common Stocks	$	194,614,122	$	–	$	–	$	194,614,122
Short-Term Investments		766,825		–		–		766,825
	$	195,380,947	$	–	$	–	$	195,380,947
Spain
Common Stocks	$	299,986,558	$	–	$	–	$	299,986,558
Short-Term Investments		10,957,109		–		–		10,957,109
	$	310,943,667	$	–	$	–	$	310,943,667
Sweden
Common Stocks	$	677,723,676	$	–	$	–	$	677,723,676
Rights		–		–		203,279		203,279
Short-Term Investments		2,929,901		–		–		2,929,901
	$	680,653,577	$	–	$	203,279	$	680,856,856
Switzerland
Common Stocks	$	498,862,776	$	–	$	–	$	498,862,776
Short-Term Investments		949,387		–		–		949,387
	$	499,812,163	$	–	$	–	$	499,812,163
United Kingdom
Common Stocks	$	1,358,464,874	$	–	$	–	$	1,358,464,874
Short-Term Investments		868,196		–		–		868,196
	$	1,359,333,070	$	–	$	–	$	1,359,333,070

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

NOTES TO FINANCIAL STATEMENTS 79

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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, 2011, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions from net investment income, if any, generally are declared and paid semi-annually by each of the Funds. Distributions of net realized capital gains, if any, generally are declared and paid 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, 2011.

80 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Certain Funds had tax basis net capital loss carryforwards as of August 31, 2010, the tax year-end of the Funds, as follows:

iShares MSCI Index Fund	Expiring 2011		Expiring 2012		Expiring 2013		Expiring 2014		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Total
Austria Investable Market	$	370,948	$	855,364	$	–	$	–	$	9,795,917	$	2,587,916	$	7,102,366	$	16,657,011	$	37,369,522
Belgium Investable Market		117,767		175,781		33,969		–		–		1,698,444		5,953,120		10,826,174		18,805,255
EMU		–		659,648		1,873,963		–		–		–		26,644,200		68,035,542		97,213,353
France		236,944		2,400,550		–		–		158,472		335,795		3,408,374		7,008,530		13,548,665
Germany		5,469,732		8,656,712		2,241,687		–		4,227,713		3,394,735		27,790,050		28,490,949		80,271,578
Italy		848,408		541,980		527,327		–		–		472,268		2,743,650		18,169,627		23,303,260
Netherlands Investable Market		1,497,810		2,481,175		129,137		403,525		260,715		1,195,162		5,819,153		22,256,170		34,042,847
Spain		–		995,671		–		–		–		–		5,946,927		15,120,672		22,063,270
Sweden		1,577,551		1,149,514		–		107,613		–		100,015		13,686,746		8,483,510		25,104,949
Switzerland		1,018,305		2,149,171		354,252		–		–		–		2,837,786		22,569,380		28,928,894
United Kingdom		6,448,554		4,272,059		1,517,783		7,063,063		–		261,754		16,140,312		23,559,917		59,263,442

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

As of February 28, 2011, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares MSCI Index Fund	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Austria Investable Market	$	250,394,246	$	3,011,096	$	(45,700,060	)	$	(42,688,964	)
Belgium Investable Market		59,392,792		2,267,755		(20,487,277	)		(18,219,522	)
Emerging Markets Eastern Europe		27,360,802		5,084,414		(183,136	)		4,901,278
EMU		1,060,741,563		32,368,002		(273,483,956	)		(241,115,954	)
France		385,200,877		8,531,820		(76,959,304	)		(68,427,484	)
Germany		2,481,044,076		221,116,770		(58,193,747	)		162,923,023
Italy		198,837,324		1,202,993		(47,567,892	)		(46,364,899	)
Netherlands Investable Market		212,380,396		7,698,821		(24,698,270	)		(16,999,449	)
Spain		391,149,356		1,457,301		(81,662,990	)		(80,205,689	)
Sweden		645,366,850		44,106,483		(8,616,477	)		35,490,006
Switzerland		459,011,763		51,719,479		(10,919,079	)		40,800,400
United Kingdom		1,427,711,840		112,555,151		(180,933,921	)		(68,378,770	)

NOTES TO FINANCIAL STATEMENTS 81

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Management has reviewed the tax positions as of February 28, 2011, inclusive of the 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

Pursuant to an Investment Advisory Agreement with the Company, BlackRock Fund Advisors (“BFA”) manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for all 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, litigation expenses and any extraordinary expenses.

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

Effective January 1, 2011, 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, up to and including $42 billion
0.56	Over $42 billion, up to and including $56 billion
0.50	Over $56 billion, up to and including $70 billion
0.45	Over $70 billion, up to and including $84 billion
0.40	Over $84 billion

Prior to January 1, 2011, for its investment advisory services to the iShares MSCI Emerging Markets Eastern Europe Index Fund, BFA was 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

82 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

BFA has voluntarily waived a portion of its investment advisory fees for the iShares MSCI Emerging Markets Eastern Europe Index Fund in the amount of $462.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“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 combined income earned from the investment of cash collateral received for the loan of securities and any fees paid by borrowers. For the six months ended February 28, 2011, BTC earned securities lending agent fees from the Funds as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees
Austria Investable Market	$	5,054
Belgium Investable Market		3,199
EMU		41,561
France		3,154
Germany		19,100
Italy		17,975

iShares MSCI Index Fund	Securities Lending Agent Fees
Netherlands Investable Market	$	6,037
Spain		56,947
Sweden		2,620
Switzerland		924
United Kingdom		2,679

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.

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays PLC (“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.

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, 2011 were as follows:

iShares MSCI Index Fund	Purchases		Sales
Austria Investable Market	$	5,309,929	$	5,144,579
Belgium Investable Market		497,997		2,126,945
Emerging Markets Eastern Europe		1,571,188		1,454,439
EMU		19,838,532		23,302,376
France		7,030,942		5,903,364
Germany		104,108,954		103,767,789
Italy		5,993,124		5,563,832
Netherlands Investable Market		2,063,083		3,379,152
Spain		13,337,829		13,343,756
Sweden		20,038,170		21,405,117
Switzerland		18,197,850		15,333,967
United Kingdom		23,008,320		20,885,165

NOTES TO FINANCIAL STATEMENTS 83

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

In-kind transactions (see Note 4) for the six months ended February 28, 2011 were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Austria Investable Market	$	122,437,111	$	63,976,279
Belgium Investable Market		13,178,844		38,391,446
Emerging Markets Eastern Europe		14,258,371		–
EMU		60,804,349		242,954,210
France		53,735,208		45,219,534
Germany		958,491,549		299,979,146
Italy		129,001,568		79,469,216
Netherlands Investable Market		39,876,036		28,492,712
Spain		287,313,016		210,284,966
Sweden		343,361,253		4,653,278
Switzerland		35,278,621		14,676,861
United Kingdom		290,466,161		57,510,376

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) 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 securities, which constitutes an optimized representation of that 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 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 current 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 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 or its affiliates; such reinvestments are subject to investment risk.

As of February 28, 2011, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of the securities on loan as of February 28, 2011 and the value of the related collateral are

84 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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, plus any fees paid by borrowers and less the fees paid to BTC as securities lending agent which are subject to adjustments pursuant to the securities lending agreement.

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 85

Notes:

86 2011 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 Funds’ 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”). BlackRock Fund Advisors (“BFA”) serves as the investment advisor to the Funds. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A., neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor 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.

©2011 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-82-0211

2011 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES^® MSCI SERIES

FEBRUARY 28, 2011

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See inside back cover for details.

iShares MSCI Brazil Index Fund  |  EWZ  |  NYSE Arca

iShares MSCI BRIC Index Fund  |  BKF  |  NYSE Arca

iShares MSCI Canada Index Fund  |  EWC  |  NYSE Arca

iShares MSCI Chile Investable Market Index Fund  |  ECH  |  NYSE Arca

iShares MSCI Israel Capped Investable Market Index Fund  |  EIS  |  NYSE Arca

iShares MSCI Mexico Investable Market Index Fund  |  EWW  |  NYSE Arca

iShares MSCI South Africa Index Fund  |   EZA  |  NYSE Arca

iShares MSCI Turkey Investable Market Index Fund  |  TUR  |  NYSE Arca

iShares MSCI USA Index Fund  |  EUSA  |  NYSE Arca

Table of Contents

Fund Performance Overviews	5
Shareholder Expenses	15
Schedules of Investments	17
iShares MSCI Brazil Index Fund	17
iShares MSCI BRIC Index Fund	20
iShares MSCI Canada Index Fund	25
iShares MSCI Chile Investable Market Index Fund	28
iShares MSCI Israel Capped Investable Market Index Fund	30
iShares MSCI Mexico Investable Market Index Fund	33
iShares MSCI South Africa Index Fund	35
iShares MSCI Turkey Investable Market Index Fund	37
iShares MSCI USA Index Fund	40
Financial Statements	49
Financial Highlights	60
Notes to Financial Statements	69
Supplemental Information	79

Fund Performance Overview

iSHARES^® MSCI BRAZIL INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
11.92%	12.77%	12.92%	15.70%	16.27%	16.54%	19.53%	19.60%	21.60%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
11.92%	12.77%	12.92%	107.32%	112.46%	114.93%	495.53%	498.77%	606.96%

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

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

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 the MSCI Brazil Index^SM (the “Index”). The Index consists of stocks traded primarily on the BM&FBOVESPA (the Brazilian exchange). 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, 2011, the total return for the Fund was 12.32%, while the total return for the Index was 12.87%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Basic Materials		24.30	%
Energy		24.02
Financial		23.63
Consumer Non-Cyclical		11.56
Utilities		5.37
Communications		2.80
Diversified		2.77
Consumer Cyclical		2.74
Industrial		2.00
Technology		0.26
Short-Term and Other Net Assets		0.55
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Petroleo Brasileiro SA Preferred		11.58	%
Vale SA Class A Preferred		9.60
Petroleo Brasileiro SA		9.39
Itau Unibanco Holding SA Preferred		8.19
Vale SA SP ADR		7.04
Banco Bradesco SA Preferred		4.75
Companhia de Bebidas das Americas Preferred		3.26
Itausa – Investimentos Itau SA Preferred		2.77
OGX Petroleo e Gas Participacoes SA		2.37
BM&F Bovespa SA		2.17
TOTAL		61.12	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI BRIC INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/11			Inception to 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
13.35%	14.40%	13.67%	(3.60)%	(3.35)%	(3.89)%	(11.40)%	(10.62)%	(12.27)%

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

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

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, 2011, the total return for the Fund was 12.20%, while the total return for the Index was 11.83%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		27.84	%
Energy		26.58
Basic Materials		11.97
Communications		7.92
Consumer Non-Cyclical		7.84
Industrial		4.37
Technology		4.28
Consumer Cyclical		4.19
Utilities		2.60
Diversified		2.19
Short-Term and Other Net Assets		0.22
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Gazprom OAO SP ADR (Russia)		4.34	%
Petroleo Brasileiro SA Preferred (Brazil)		4.03
Vale SA Class A Preferred (Brazil)		3.37
China Mobile Ltd. (China)		3.14
Petroleo Brasileiro SA (Brazil)		3.12
Infosys Technologies Ltd. SP ADR (India)		2.83
Itau Unibanco Holding SA Preferred (Brazil)		2.79
Vale SA (Brazil)		2.55
Reliance Industries Ltd. SP GDR (India)		2.54
CNOOC Ltd. (China)		2.28
TOTAL		30.99	%

6 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI CANADA INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
32.10%	32.13%	32.50%	9.28%	9.33%	9.55%	12.21%	12.39%	12.56%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
32.10%	32.13%	32.50%	55.88%	56.18%	57.81%	216.53%	221.51%	226.33%

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

Certain sectors and markets performed exceptionally well based on market conditions during the six-month 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 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.

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 the MSCI Canada Index^SM (the “Index”). The Index consists of stocks traded primarily on the Toronto Stock Exchange. 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, 2011, the total return for the Fund was 29.90%, while the total return for the Index was 30.16%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		30.88	%
Energy		27.35
Basic Materials		22.65
Industrial		5.34
Communications		4.17
Consumer Cyclical		2.77
Technology		2.75
Consumer Non-Cyclical		2.42
Utilities		1.05
Diversified		0.43
Short-Term and Other Net Assets		0.19
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Royal Bank of Canada		5.85	%
Suncor Energy Inc.		5.16
Toronto-Dominion Bank (The)		5.14
Bank of Nova Scotia		4.67
Potash Corp. of Saskatchewan Inc.		3.86
Canadian Natural Resources Ltd.		3.85
Barrick Gold Corp.		3.66
Goldcorp Inc.		2.66
Bank of Montreal		2.54
Canadian National Railway Co.		2.37
TOTAL		39.76	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI CHILE INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/11			Inception to 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
24.65%	24.29%	26.32%	12.60%	12.63%	13.02%	47.93%	48.04%	49.76%

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

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

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, 2011, the total return for the Fund was 3.29%, while the total return for the Index was 3.61%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Utilities		22.75	%
Basic Materials		18.69
Consumer Non-Cyclical		13.96
Financial		12.38
Consumer Cyclical		12.35
Diversified		11.95
Industrial		4.18
Communications		2.80
Technology		1.02
Short-Term and Other Net Assets		(0.08	)
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Empresas Copec SA		11.95	%
Cencosud SA		9.59
Empresa Nacional de Electricidad SA		8.69
Enersis SA		8.08
Empresas CMPC SA		7.79
Sociedad Quimica y Minera de Chile SA Series B		5.20
CAP SA		5.07
Banco Santander (Chile) SA		4.82
LAN Airlines SA		4.69
S.A.C.I. Falabella SA		4.61
TOTAL		70.49	%

8 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/11			Inception to 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
6.75%	5.31%	7.56%	6.85%	6.96%	7.80%	21.43%	21.79%	24.63%

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

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

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, 2011, the total return for the Fund was 16.52%, while the total return for the Index was 16.82%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		30.39	%
Consumer Non-Cyclical		28.14
Communications		17.26
Basic Materials		13.24
Industrial		4.33
Technology		2.34
Energy		2.23
Diversified		1.03
Consumer Cyclical		0.86
Short-Term and Other Net Assets		0.18
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Teva Pharmaceutical Industries Ltd.		23.68	%
Israel Chemicals Ltd.		10.65
Bank Leumi le-Israel		8.12
Bezeq The Israel Telecommunication Corp. Ltd.		6.63
Bank Hapoalim Ltd.		4.80
Israel Corp. Ltd. (The)		3.93
NICE Systems Ltd.		3.22
Partner Communications Co. Ltd.		2.56
Israel Discount Bank Ltd. Class A		2.38
Cellcom Israel Ltd.		2.22
TOTAL		68.19	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® MSCI MEXICO INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
26.14%	26.84%	26.95%	11.39%	11.48%	10.56%	17.56%	17.63%	17.37%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
26.14%	26.84%	26.95%	71.47%	72.20%	65.18%	404.29%	407.09%	396.04%

Index performance reflects the performance of the MSCI Mexico Index^SM through November 30, 2007 and the MSCI Mexico Investable Market Index^SM thereafter.

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

Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. 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 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.

10 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview (Continued)

iSHARES^® MSCI MEXICO INVESTABLE MARKET INDEX FUNDS

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 the MSCI Mexico Investable Market Index^SM (the “Index”). The Index consists of stocks traded primarily on the Mexican Stock Exchange. 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, 2011, the total return for the Fund was 27.14%, while the total return for the Index was 26.44%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Communications		33.51	%
Basic Materials		16.05
Consumer Cyclical		15.31
Consumer Non-Cyclical		13.37
Financial		8.90
Industrial		8.73
Diversified		4.07
Short-Term and Other Net Assets		0.06
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
America Movil SAB de CV Series L		23.98	%
Wal-Mart de Mexico SAB de CV Series V		10.38
Grupo Mexico SAB de CV Series B		7.39
Fomento Economico Mexicano SAB de CV BD Units		6.27
Grupo Televisa SA CPO		4.77
Cemex SAB de CV CPO		4.36
Grupo Financiero Banorte SAB de CV Series O		3.95
Telefonos de Mexico SAB de CV Series L		3.60
Grupo Modelo SAB de CV Series C		2.83
Alfa SAB de CV Series A		2.53
TOTAL		70.06	%

FUND PERFORMANCE OVERVIEWS 11

Fund Performance Overview

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
31.97%	32.78%	32.83%	8.79%	8.74%	9.82%	20.41%	20.38%	21.72%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
31.97%	32.78%	32.83%	52.36%	52.03%	59.76%	347.88%	346.77%	388.82%

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

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

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 the MSCI South Africa Index^SM (the “Index”). The Index consists of stocks traded primarily on the Johannesburg Stock Exchange. 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, 2011, the total return for the Fund was 20.75%, while the total return for the Index was 21.18%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Basic Materials		25.14	%
Financial		21.98
Communications		20.06
Energy		11.99
Consumer Cyclical		6.59
Consumer Non-Cyclical		6.12
Diversified		5.71
Industrial		2.34
Short-Term and Other Net Assets		0.07
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Sasol Ltd.		11.03	%
MTN Group Ltd.		10.46
Naspers Ltd. Class N		7.74
AngloGold Ashanti Ltd.		6.49
Standard Bank Group Ltd.		5.96
Impala Platinum Holdings Ltd.		5.21
Gold Fields Ltd.		4.51
FirstRand Ltd.		2.77
Sanlam Ltd.		2.57
Remgro Ltd.		2.43
TOTAL		59.17	%

12 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/11			Inception to 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
20.27%	20.74%	20.59%	7.44%	7.54%	7.78%	23.40%	23.76%	24.55%

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

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

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, 2011, the total return for the Fund was (3.22)%, while the total return for the Index was (2.90)%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		44.63	%
Consumer Non-Cyclical		11.62
Communications		11.14
Diversified		9.86
Consumer Cyclical		6.12
Basic Materials		6.10
Industrial		5.32
Energy		4.66
Utilities		0.53
Short-Term and Other Net Assets		0.02
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Turkiye Garanti Bankasi AS		13.89	%
Akbank TAS		8.39
Turkiye Is Bankasi AS		7.33
Turkcell Iletisim Hizmetleri AS		6.45
Turkiye Petrol Rafinerileri AS		4.66
Anadolu Efes Biracilik ve Malt Sanayii AS		4.09
BIM Birlesik Magazalar AS		3.93
KOC Holding AS		3.78
Haci Omer Sabanci Holding AS		3.67
Yapi ve Kredi Bankasi AS		3.62
TOTAL		59.81	%

FUND PERFORMANCE OVERVIEWS 13

Fund Performance Overview

iSHARES^® MSCI USA INDEX FUND

Performance as of February 28, 2011

Cumulative Total Returns
Inception to 2/28/11
NAV	MARKET	INDEX
15.94%	15.98%	16.17%

“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 5/5/10.

Certain sectors and markets performed exceptionally well based on market conditions during the six-month 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 (5/7/10), 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 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.

The iShares MSCI USA 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 USA Index^SM (the “Index”). The Index is market capitalization weighted index designed to measure the performance of equity securities in the top 85% by market capitalization of equity securities listed on stock exchanges in the United States. 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, 2011, the total return for the Fund was 27.92%, while the total return for the Index was 28.17%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Consumer Non-Cyclical		19.93	%
Financial		15.28
Technology		13.53
Energy		13.26
Communications		11.47
Industrial		11.27
Consumer Cyclical		8.53
Basic Materials		3.47
Utilities		3.06
Diversified		0.05
Short-Term and Other Net Assets		0.15
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Exxon Mobil Corp.		3.43	%
Apple Inc.		2.54
General Electric Co.		1.78
Chevron Corp.		1.65
International Business Machines Corp.		1.62
Microsoft Corp.		1.61
JPMorgan Chase & Co.		1.48
Procter & Gamble Co. (The)		1.40
AT&T Inc.		1.34
Johnson & Johnson		1.30
TOTAL		18.15	%

14 2011 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, 2010 to February 28, 2011.

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 (9/1/10)		Ending Account Value (2/28/11)		Annualized Expense Ratio			Expenses Paid During Perioda (9/1/10 to 2/28/11)
Brazil
Actual		$1,000.00		$1,123.20		0.59	%		$3.11
Hypothetical (5% return before expenses)		1,000.00		1,021.90		0.59			2.96
BRIC
Actual		1,000.00		1,122.00		0.66			3.47
Hypothetical (5% return before expenses)		1,000.00		1,021.50		0.66			3.31
Canada
Actual		1,000.00		1,299.00		0.53			3.02
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
Chile Investable Market
Actual		1,000.00		1,032.90		0.59			2.97
Hypothetical (5% return before expenses)		1,000.00		1,021.90		0.59			2.96

SHAREHOLDER EXPENSES 15

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (9/1/10)		Ending Account Value (2/28/11)		Annualized Expense Ratio			Expenses Paid During Perioda (9/1/10 to 2/28/11)
Israel Capped Investable Market
Actual		$1,000.00		$1,165.20		0.59	%		$3.17
Hypothetical (5% return before expenses)		1,000.00		1,021.90		0.59			2.96
Mexico Investable Market
Actual		1,000.00		1,271.40		0.53			2.98
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
South Africa
Actual		1,000.00		1,207.50		0.59			3.23
Hypothetical (5% return before expenses)		1,000.00		1,021.90		0.59			2.96
Turkey Investable Market
Actual		1,000.00		967.80		0.59			2.88
Hypothetical (5% return before expenses)		1,000.00		1,021.90		0.59			2.96
USA
Actual		1,000.00		1,279.20		0.15			0.85
Hypothetical (5% return before expenses)		1,000.00		1,024.10		0.15			0.75

^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).

16 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 45.98%
AEROSPACE & DEFENSE – 0.78%
Empresa Brasileira de Aeronautica SA		11,679,032	$	98,331,273
				98,331,273
AGRICULTURE – 0.65%
Souza Cruz SA		1,717,500		82,365,685
				82,365,685
BANKS – 3.08%
Banco do Brasil SA		12,366,097		221,088,573
Banco Santander (Brasil) SA		14,083,541		170,035,059
				391,123,632
BUILDING MATERIALS – 0.41%
Duratex SA		5,152,500		51,710,787
				51,710,787
COMMERCIAL SERVICES – 2.59%
Anhanguera Educacional Participacoes SA		2,404,500		53,754,447
Cielo SA		12,709,500		100,285,898
Companhia de Concessoes Rodoviarias		4,122,000		114,940,385
EcoRodovias Infraestrutura e Logistica SA		3,383,600		26,027,692
Localiza Rent A Car SA		2,404,500		33,957,783
				328,966,205
COSMETICS & PERSONAL CARE – 0.69%
Natura Cosmeticos SA		3,435,000		87,134,225
				87,134,225
DIVERSIFIED FINANCIAL SERVICES – 3.31%
BM&F Bovespa SA		40,533,000		275,497,734
CETIP Balcao Organizado de Ativos e Derivativos SA		3,778,500		55,519,426
Redecard SA		6,870,000		88,765,024
				419,782,184
ELECTRIC – 1.61%
Centrais Eletricas Brasileiras SA		5,496,099		77,619,186
CPFL Energia SA		2,061,050		53,594,732
EDP Energias do Brasil SA		1,374,000		30,758,113
Tractebel Energia SA		2,748,000		42,937,500
				204,909,531

Security	Shares		Value
ENGINEERING & CONSTRUCTION – 0.21%
Multiplan Empreendimentos Imobiliarios SA		1,374,000	$	26,802,909
				26,802,909
FOOD – 2.66%
BRF – Brasil Foods SA		13,740,050		238,634,282
Cosan SA Industria e Comercio		2,404,590		37,557,268
JBS SA		9,961,522		37,355,707
Marfrig Alimentos SA		2,748,000		23,962,428
				337,509,685
FOREST PRODUCTS & PAPER – 0.39%
Fibria Celulose SAa		3,435,026		49,543,644
				49,543,644
HEALTH CARE – SERVICES – 0.61%
Amil Participacoes SA		2,357,900		24,089,123
Diagnosticos da America SA		4,465,500		53,940,234
				78,029,357
HOME BUILDERS – 0.93%
Brookfield Incorporacoes SA		4,465,500		20,771,015
Gafisa SA		8,244,000		50,732,308
MRV Engenharia e Participacoes SA		5,839,547		46,358,423
				117,861,746
INSURANCE – 0.74%
Odontoprev SA		1,674,100		22,535,962
Porto Seguro SA		2,748,000		43,763,221
SulAmerica SA		2,404,500		27,527,479
				93,826,662
INTERNET – 0.12%
B2W Companhia Global do Varejo		1,030,530		15,848,115
				15,848,115
IRON & STEEL – 2.56%
Companhia Siderurgica Nacional SA		15,114,054		242,061,021
MMX Mineracao e Metalicos SAa		3,778,500		22,139,648
Usinas Siderurgicas de Minas Gerais SA		3,778,500		60,901,064
				325,101,733
MINING – 7.04%
Vale SA SP ADR		26,095,695		893,255,640
				893,255,640

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2011

Security	Shares		Value
OIL & GAS – 12.45%
HRT Participacoes em Petroleo SAa		77,000	$	86,763,359
OGX Petroleo e Gas Participacoes SAa		25,762,500		301,130,183
Petroleo Brasileiro SA		60,799,544		1,191,144,913
				1,579,038,455
PHARMACEUTICALS – 0.49%
Hypermarcas SAa		5,496,000		62,754,808
				62,754,808
REAL ESTATE – 2.12%
BR Malls Participacoes SA		6,526,500		62,166,482
Cyrela Brazil Realty SA		6,183,000		61,495,583
PDG Realty SA Empreendimentos e Participacoes		21,640,500		118,216,433
Rossi Residencial SA		3,435,000		26,629,507
				268,508,005
RETAIL – 0.58%
Lojas Renner SA		2,404,500		73,695,613
				73,695,613
SOFTWARE – 0.26%
Totvs SA		343,500		32,399,234
				32,399,234
TELECOMMUNICATIONS – 0.24%
Tele Norte Leste Participacoes SA		1,374,038		29,933,220
				29,933,220
TEXTILES – 0.32%
Companhia Hering SA		2,709,400		40,429,328
				40,429,328
TRANSPORTATION – 0.61%
ALL – America Latina Logistica SA		9,278,200		76,890,852
				76,890,852
WATER – 0.53%
Companhia de Saneamento Basico do Estado de Sao Paulo		2,748,000		67,329,303
				67,329,303
TOTAL COMMON STOCKS
(Cost: $3,906,984,783)				5,833,081,831

Security	Shares		Value
PREFERRED STOCKS – 53.47%
AIRLINES – 0.50%
GOL Linhas Aereas Inteligentes SA		2,061,000	$	27,273,570
TAM SA		1,717,500		36,176,908
				63,450,478
BANKS – 13.40%
Banco Bradesco SA		31,821,015		612,028,753
Banco do Estado do Rio Grande do Sul SA		4,465,510		48,841,516
Itau Unibanco Holding SA		46,716,049		1,038,758,301
				1,699,628,570
BEVERAGES – 3.26%
Companhia de Bebidas das Americas		15,556,270		413,213,422
				413,213,422
CHEMICALS – 1.31%
Braskem SA Class A		3,091,536		37,678,095
Ultrapar Participacoes SA		6,526,500		102,721,776
Vale Fertilizantes SA		2,404,580		25,620,915
				166,020,786
ELECTRIC – 3.23%
AES Tiete SA		2,061,000		28,487,380
Centrais Eletricas Brasileiras SA Class B		4,815,551		87,671,289
Companhia de Transmissao de Energia Electrica Paulista		697,276		21,362,458
Companhia Energetica de Minas Gerais		7,900,535		131,279,924
Companhia Energetica de Sao Paulo Class B		3,435,070		56,356,617
Companhia Paranaense de Energia Class B		2,061,000		51,772,716
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA		1,682,620		32,459,196
				409,389,580
FOOD – 0.60%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A		2,061,028		76,545,391
				76,545,391
FOREST PRODUCTS & PAPER – 0.52%
Klabin SA		9,274,500		34,333,486

18 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRAZIL INDEX FUND

February 28, 2011

Security	Shares		Value
Suzano Bahia Sul Papel e Celulose SA		3,778,507	$	32,267,178
				66,600,664
HOLDING COMPANIES – DIVERSIFIED – 2.77%
Itausa – Investimentos Itau SA		48,090,084		350,849,531
				350,849,531
INVESTMENT COMPANIES – 0.98%
Bradespar SA		4,809,000		124,791,238
				124,791,238
IRON & STEEL – 2.87%
Gerdau SA		13,053,046		172,497,886
Metalurgica Gerdau SA		5,496,090		85,347,936
Usinas Siderurgicas de Minas Gerais SA Class A		9,274,500		105,898,738
				363,744,560
MINING – 9.60%
Vale SA Class A		40,876,500		1,218,434,135
				1,218,434,135
OIL & GAS – 11.58%
Petroleo Brasileiro SA		85,531,578		1,469,045,973
				1,469,045,973
RETAIL – 0.41%
Lojas Americanas SA		6,526,500		52,557,151
				52,557,151
TELECOMMUNICATIONS – 2.44%
Brasil Telecom SA		5,496,015		41,451,315
Tele Norte Leste Participacoes SA		5,152,539		80,353,598
Telemar Norte Leste SA Class A		687,000		19,937,037
TIM Participacoes SA		11,679,019		44,287,626
Vivo Participacoes SA		3,435,080		123,241,753
				309,271,329
TOTAL PREFERRED STOCKS
(Cost: $3,909,554,183)				6,783,542,808

Security	Shares		Value
RIGHTS – 0.00%
TELECOMMUNICATIONS – 0.00%
Tele Norte Leste Participacoes SAa		1,327,823	$	31,919
Tele Norte Leste Participacoes SA Preferreda		5,311,185		95,754
Telemar Norte Leste SAa,b		1,292		–
Telemar Norte Leste SA Class A Preferreda		610,617		29,357
				157,030
TOTAL RIGHTS
(Cost: $0)				157,030
SHORT-TERM INVESTMENTS – 0.06%
MONEY MARKET FUNDS – 0.06%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.07%c,d		8,169,947		8,169,947
				8,169,947
TOTAL SHORT-TERM INVESTMENTS
(Cost: $8,169,947)				8,169,947
TOTAL INVESTMENTS IN SECURITIES – 99.51%
(Cost: $7,824,708,913)				12,624,951,616
Other Assets, Less Liabilities – 0.49%				62,085,015
NET ASSETS – 100.00%			$	12,687,036,631

SP ADR – Sponsored American 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 19

Schedule of Investments (Unaudited)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 80.45%
BRAZIL – 14.74%
ALL – America Latina Logistica SA		292,200	$	2,421,537
Anhanguera Educacional Participacoes SA		48,700		1,088,726
B2W Companhia Global do Varejo		48,700		748,938
Banco do Brasil SA		347,189		6,207,255
Banco Santander (Brasil) SA		340,937		4,116,241
BM&F Bovespa SA		1,121,169		7,620,446
BR Malls Participacoes SA		194,800		1,855,517
BRF – Brasil Foods SA		340,900		5,920,679
Centrais Eletricas Brasileiras SA		194,800		2,751,082
CETIP Balcao Organizado de Ativos e Derivativos SA		48,700		715,574
Cielo SA		370,400		2,922,687
Companhia de Concessoes Rodoviarias		146,100		4,073,942
Companhia Hering SA		97,400		1,453,391
Companhia Siderurgica Nacional SA		535,700		8,579,570
Cosan SA Industria e Comercio		97,400		1,521,290
CPFL Energia SA		97,400		2,532,751
Cyrela Brazil Realty SA		194,800		1,937,464
Diagnosticos da America SA		146,100		1,764,790
Duratex SA		194,800		1,955,024
Empresa Brasileira de Aeronautica SA		389,600		3,280,226
Fibria Celulose SAa		97,441		1,405,399
Gafisa SA		194,800		1,198,769
Hypermarcas SAa		146,100		1,668,209
JBS SA		292,252		1,095,945
Lojas Renner SA		48,700		1,492,608
Marfrig Alimentos SA		146,100		1,273,985
MMX Mineracao e Metalicos SAa		97,400		570,703
MRV Engenharia e Participacoes SA		243,500		1,933,074
Multiplan Empreendimentos Imobiliarios SA		48,700		950,001
Natura Cosmeticos SA		97,400		2,470,706
Odontoprev SA		48,700		655,577
OGX Petroleo e Gas Participacoes SAa		779,200		9,107,837
PDG Realty SA Empreendimentos e Participacoes		535,700		2,926,390

Security	Shares		Value
Petroleo Brasileiro SA		1,850,600	$	36,255,745
Redecard SA		243,500		3,146,184
Rossi Residencial SA		146,100		1,132,626
Souza Cruz SA		97,400		4,670,986
SulAmerica SA		48,700		557,533
Tele Norte Leste Participacoes SA		48,700		1,060,922
Tractebel Energia SA		146,100		2,282,812
Usinas Siderurgicas de Minas Gerais SA		146,100		2,354,809
Vale SA		876,600		29,659,002
				171,336,952
CHINA – 36.59%
Agile Property Holdings Ltd.		1,948,000		2,455,898
Agricultural Bank of China Ltd. Class Ha		8,279,000		4,102,751
Air China Ltd. Class Ha		1,948,000		1,818,165
Alibaba.com Ltd.b		974,000		1,815,664
Aluminum Corp. of China Ltd. Class Ha,b		1,948,000		1,923,203
Angang New Steel Co. Ltd. Class H		974,000		1,340,490
Anhui Conch Cement Co. Ltd. Class H		76,000		363,454
Anta Sports Products Ltd.		487,040		779,099
Bank of China Ltd. Class H		40,421,000		21,328,426
Bank of Communications Co. Ltd. Class H		3,896,000		3,756,374
BBMG Corp. Class H		1,217,500		1,622,468
Beijing Capital International Airport Co. Ltd. Class H		974,000		485,177
Belle International Holdings Ltd.		3,409,000		5,917,164
Bosideng International Holdings Ltd.		974,000		258,845
Brilliance China Automotive Holdings Ltd.a		974,000		796,541
BYD Co. Ltd. Class Hb		487,000		1,919,452
Changsha Zoomlion Heavy Industry Science and Technology Development Co. Ltd.a		97,400		223,582
Chaoda Modern Agriculture (Holdings) Ltd.		1,178,556		755,024
China Agri-Industries Holdings Ltd.b		1,461,000		1,483,668
China CITIC Bank Class H		3,896,000		2,555,935
China Coal Energy Co. Class H		1,948,000		2,776,015

20 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2011

Security	Shares		Value
China Communications Construction Co. Ltd. Class H		3,409,000	$	2,551,558
China Construction Bank Corp. Class H		29,639,370		25,913,496
China COSCO Holdings Co. Ltd. Class Ha		1,704,500		1,818,478
China Dongxiang (Group) Co. Ltd.		2,922,000		1,106,655
China Everbright Ltd.b		974,000		2,028,242
China Gas Holdings Ltd.		1,920,000		719,770
China High Speed Transmission Equipment Group Co. Ltd.		974,000		1,355,496
China Life Insurance Co. Ltd. Class H		5,357,000		20,391,834
China Longyuan Power Group Corp. Ltd. Class Ha,b		974,000		876,571
China Mengniu Dairy Co. Ltd.		974,000		2,582,194
China Merchants Bank Co. Ltd. Class H		2,435,297		5,827,842
China Merchants Holdings (International) Co. Ltd.		974,000		4,114,005
China Minsheng Banking Corp. Ltd. Class H		2,034,000		1,773,090
China Mobile Ltd.		3,896,000		36,538,364
China National Building Material Co. Ltd. Class H		974,000		2,390,875
China Oilfield Services Ltd. Class Hb		974,000		1,940,710
China Overseas Land & Investment Ltd.		2,922,800		4,848,100
China Pacific Insurance (Group) Co. Ltd. Class H		194,800		787,788
China Petroleum & Chemical Corp. Class H		11,688,000		11,914,358
China Railway Construction Corp. Ltd. Class H		1,948,000		2,178,297
China Railway Group Ltd. Class H		2,922,000		1,856,929
China Resources Enterprise Ltd.b		974,000		3,551,299
China Resources Land Ltd.		1,948,000		3,161,156
China Resources Power Holdings Co. Ltd.		1,008,200		1,690,440
China Shenhua Energy Co. Ltd. Class H		2,191,500		9,087,699
China Shipping Container Lines Co. Ltd. Class Ha		2,435,000		1,056,636

Security	Shares		Value
China Shipping Development Co. Ltd. Class H		974,000	$	1,064,139
China Southern Airlines Co. Ltd. Class Ha		974,000		460,168
China Taiping Insurance Holdings Co. Ltd.a		487,000		1,328,611
China Telecom Corp. Ltd. Class H		8,766,000		5,154,385
China Unicom (Hong Kong) Ltd.		3,923,900		6,548,943
China Yurun Food Group Ltd.		974,000		3,082,377
China Zhongwang Holdings Ltd.b		904,400		366,908
CITIC Pacific Ltd.		974,000		2,538,428
CNOOC Ltd.		11,688,000		26,529,704
CNPC (Hong Kong) Ltd.		2,922,000		4,336,586
COSCO Pacific Ltd.b		974,000		1,875,686
Country Garden Holdings Co. Ltd.		1,461,000		579,587
CSR Corp Ltd. Class H		1,461,000		1,620,593
Datang International Power Generation Co. Ltd. Class Hb		1,948,000		662,742
Dongfeng Motor Group Co. Ltd. Class H		1,948,000		3,376,235
Evergrande Real Estate Group Ltd.		1,948,000		915,335
Fosun International Ltd.		2,191,500		1,589,644
Franshion Properties (China) Ltd.b		2,922,000		814,048
Fushan International Energy Group Ltd.b		1,948,000		1,433,024
GCL Poly Energy Holdings Ltd.a		2,922,000		1,470,538
Geely Automobile Holdings Ltd.		2,435,000		1,044,132
Golden Eagle Retail Group Ltd.		487,000		1,102,903
GOME Electrical Appliances Holdings Ltd.a,b		5,844,400		1,973,357
Great Wall Motor Co. Ltd. Class H		243,500		378,263
Greentown China Holdings Ltd.		487,000		487,053
Guangdong Investment Ltd.		2,922,000		1,478,041
Guangzhou Automobile Group Co. Ltd. Class H		2,274,454		2,920,029
Guangzhou R&F Properties Co. Ltd. Class H		779,200		1,044,382
Hengan International Group Co. Ltd.		730,500		5,387,908
Hidili Industry International Development Ltd.		487,000		402,022
Hopson Development Holdings Ltd.a		974,000		1,077,894
Huabao International Holdings Ltd.b		974,000		1,229,200

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2011

Security	Shares		Value
Huaneng Power International Inc. Class H		2,922,000	$	1,631,847
Industrial and Commercial Bank of China Ltd. Class H		34,060,050		26,149,079
Jiangsu Expressway Co. Ltd. Class H		1,948,000		2,108,271
Jiangxi Copper Co. Ltd. Class H		1,461,000		4,586,052
Kingboard Chemical Holdings Co. Ltd.		243,500		1,292,660
Lee & Man Paper Manufacturing Ltd.		487,000		316,991
Lenovo Group Ltd.b		2,922,000		1,766,896
Li Ning Co. Ltd.b		730,500		1,369,251
Longfor Properties Co. Ltd.		1,704,500		2,407,130
Maanshan Iron & Steel Co. Ltd. Class Hb		1,948,000		995,364
Metallurgical Corp. of China Ltd. Class Ha		2,922,000		1,181,682
Nine Dragons Paper (Holdings) Ltd.		974,000		1,081,646
Parkson Retail Group Ltd.		730,500		1,033,503
PetroChina Co. Ltd. Class H		14,610,000		19,882,272
PICC Property and Casualty Co. Ltd. Class Ha		1,948,000		2,463,401
Ping An Insurance (Group) Co. of China Ltd. Class H		1,167,000		11,970,921
Poly (Hong Kong) Investments Ltd.b		1,469,984		1,171,964
Renhe Commercial Holdings Co. Ltd.		2,922,000		438,911
Semiconductor Manufacturing International Corp.a		6,331,000		503,934
Shanghai Electric Group Co. Ltd. Class H		2,922,000		1,710,626
Shanghai Industrial Holdings Ltd.b		487,000		1,744,388
Shimao Property Holdings Ltd.		1,461,000		1,995,730
Shui On Land Ltd.		3,165,500		1,487,419
Sino-Ocean Land Holdings Ltd.b		3,165,500		1,934,458
Sinofert Holdings Ltd.a,b		1,948,000		1,040,381
Sinopharm Group Co. Ltd. Class H		389,600		1,415,518
Soho China Ltd.		2,922,000		2,097,017
Tencent Holdings Ltd.		584,400		15,455,653
Tingyi (Cayman Islands) Holding Corp.		1,948,000		4,376,601
Want Want China Holdings Ltd.		3,409,000		2,547,182
Weichai Power Co. Ltd. Class H		487,000		3,238,685
Yanzhou Coal Mining Co. Ltd. Class H		974,000		2,907,313

Security	Shares		Value
Zhaojin Mining Industry Co. Ltd. Class H		243,500	$	1,034,753
Zhejiang Expressway Co. Ltd. Class H		1,948,000		1,745,639
Zijin Mining Group Co. Ltd. Class H		2,438,000		2,000,067
ZTE Corp. Class H		292,200		1,346,743
				425,242,090
INDIA – 13.78%
Dr. Reddy’s Laboratories Ltd. SP ADRb		393,496		13,398,539
HDFC Bank Ltd. SP ADR		159,736		23,498,763
ICICI Bank Ltd. SP ADR		505,019		21,897,624
Infosys Technologies Ltd. SP ADR		493,818		32,937,660
Mahanagar Telephone Nigam Ltd. SP ADRa,b		285,241		524,843
Reliance Industries Ltd. SP GDRc		691,540		29,452,689
Sterlite Industries (India) Ltd. SP ADR		764,103		11,262,878
Tata Communications Ltd. SP ADRa		181,724		1,635,516
Tata Motors Ltd. SP ADR		445,605		10,970,795
Wipro Ltd. SP ADRb		1,104,029		14,529,022
				160,108,329
RUSSIA – 15.34%
Comstar United Telesystems OJSC SP GDRa		136,277		927,365
Federal Grid Co. of Unified Energy System OJSCa		143,908,500		2,099,682
Gazprom OAO SP ADR		1,716,188		50,490,251
LUKOIL OAO SP ADR		308,271		21,945,813
Magnit OJSC SP GDRd		163,632		4,647,149
Mechel OAO SP ADR		90,095		2,741,591
MMC Norilsk Nickel OJSC SP ADR		423,203		10,220,352
Mobile TeleSystems OJSC SP ADR		365,250		6,877,658
NovaTek OAO SP GDRd		64,284		8,350,492
Novolipetsk Steel OJSC SP GDRd		76,459		3,509,468
OGK-4 OJSCa		1,558,400		142,043
Polymetal OJSC SP GDRa		36,525		696,206
Polyus Gold OJSC SP ADR		60,388		2,062,250
Rosneft Oil Co. OJSC SP GDRd		1,021,726		9,645,093
RusHydro OJSCa		28,538,200		1,461,793
Sberbank of Russia OJSC GDRd		51,622		19,964,089
Severstal OAO SP GDRd		199,183		3,798,420
Sistema JSFC OJSC SP GDRd		92,043		2,346,176
Surgutneftegaz OJSC SP ADR		521,090		6,122,808

22 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2011

Security	Shares		Value
Tatneft OAO SP ADRb		155,353	$	6,485,988
TMK OAO SP GDRa,d		47,239		944,780
Uralkali OJSC SP GDRd		117,367		4,796,789
VTB Bank OJSC		690,002,001		2,420,002
VTB Bank OJSC SP GDRd		481,643		3,337,786
Wimm-Bill-Dann Foods OJSC SP ADR		68,667		2,223,437
				178,257,481
TOTAL COMMON STOCKS
(Cost: $809,588,218)				934,944,852
PREFERRED STOCKS – 19.33%
BRAZIL – 19.21%
AES Tiete SA		97,400		1,346,274
Banco Bradesco SA		1,287,762		24,768,656
Banco do Estado do Rio Grande do Sul SA		48,700		532,656
Bradespar SA		194,800		5,054,966
Brasil Telecom SA		176,898		1,334,177
Braskem SA Class A		146,100		1,780,594
Centrais Eletricas Brasileiras SA Class B		170,682		3,107,414
Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A		48,700		1,808,690
Companhia de Bebidas das Americas		497,315		13,209,930
Companhia de Transmissao de Energia Electrica Paulista		48,871		1,497,262
Companhia Energetica de Minas Gerais		243,593		4,047,684
Companhia Energetica de Sao Paulo Class B		97,400		1,597,969
Companhia Paranaense de Energia Class B		97,400		2,446,707
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA		48,200		929,820
Gerdau SA		438,300		5,792,198
GOL Linhas Aereas Inteligentes SA		48,700		644,455
Itau Unibanco Holding SA		1,461,067		32,487,668
Itausa – Investimentos Itau SA		1,655,817		12,080,299
Klabin SA		389,600		1,442,269
Lojas Americanas SA		292,200		2,353,053
Metalurgica Gerdau SA		194,800		3,025,019
Petroleo Brasileiro SA		2,727,214		46,841,212

Security	Shares		Value
Suzano Bahia Sul Papel e Celulose SA		97,400	$	831,763
TAM SA		48,700		1,025,802
Tele Norte Leste Participacoes SA		194,800		3,037,897
Telemar Norte Leste SA Class A		48,700		1,413,295
TIM Participacoes SA		438,457		1,662,658
Usinas Siderurgicas de Minas Gerais SA Class A		292,200		3,336,418
Vale Fertilizantes SA		97,420		1,038,015
Vale SA Class A		1,314,900		39,194,135
Vivo Participacoes SA		99,719		3,577,659
				223,246,614
RUSSIA – 0.12%
Sberbank of Russia		579,530		1,419,974
				1,419,974
TOTAL PREFERRED STOCKS
(Cost: $188,217,211)				224,666,588
RIGHTS – 0.00%
BRAZIL – 0.00%
Tele Norte Leste Participacoes SAa		47,062		1,131
Tele Norte Leste Participacoes SA Preferreda		188,248		3,394
Telemar Norte Leste SAa,e		91		–
Telemar Norte Leste SA Class A Preferreda		43,285		2,081
				6,606
TOTAL RIGHTS
(Cost: $0)				6,606
SHORT-TERM INVESTMENTS – 2.31%
MONEY MARKET FUNDS – 2.31%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%f,g,h		23,403,164		23,403,164
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%f,g,h		3,363,227		3,363,227

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI BRIC INDEX FUND

February 28, 2011

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.07%f,g		104,525	$	104,525
				26,870,916
TOTAL SHORT-TERM INVESTMENTS
(Cost: $26,870,916)				26,870,916
TOTAL INVESTMENTS IN SECURITIES – 102.09%
(Cost: $1,024,676,345)				1,186,488,962
Other Assets, Less Liabilities – (2.09)%				(24,252,226	)
NET ASSETS – 100.00%			$	1,162,236,736

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

^f  Affiliated issuer. See Note 2.

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

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

See notes to financial statements.

24 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.81%
AEROSPACE & DEFENSE – 0.23%
CAE Inc.		1,046,566	$	13,327,058
				13,327,058
APPAREL – 0.26%
Gildan Activewear Inc.		469,907		14,995,750
				14,995,750
AUTO PARTS & EQUIPMENT – 0.75%
Magna International Inc. Class A		888,400		43,620,071
				43,620,071
BANKS – 21.41%
Bank of Montreal		2,309,125		146,809,692
Bank of Nova Scotia		4,386,188		270,043,897
Canadian Imperial Bank of Commerce		1,600,972		135,020,152
National Bank of Canada		662,563		50,894,737
Royal Bank of Canada		5,808,859		338,499,926
Toronto-Dominion Bank (The)		3,568,811		297,721,342
				1,238,989,746
CHEMICALS – 4.91%
Agrium Inc.		642,127		60,697,490
Potash Corp. of Saskatchewan Inc.		3,640,557		223,614,737
				284,312,227
COMMERCIAL SERVICES – 0.17%
Ritchie Bros. Auctioneers Inc.a		387,188		9,817,265
				9,817,265
COMPUTERS – 2.51%
CGI Group Inc. Class Ab		970,699		19,293,458
Research In Motion Ltd.b		1,914,818		126,043,379
				145,336,837
DIVERSIFIED FINANCIAL SERVICES – 0.88%
CI Financial Corp.		645,562		15,248,922
IGM Financial Inc.		479,145		23,206,243
TMX Group Inc.		303,002		12,592,049
				51,047,214
ELECTRIC – 0.74%
Fortis Inc.		708,010		23,967,215
TransAlta Corp.		898,129		18,938,537
				42,905,752

Security	Shares		Value
ENGINEERING & CONSTRUCTION – 0.61%
SNC-Lavalin Group Inc.		616,204	$	35,560,323
				35,560,323
FOOD – 1.44%
Empire Co. Ltd. Class A		116,718		6,258,974
George Weston Ltd.		210,447		14,703,541
Loblaw Companies Ltd.		455,731		18,485,502
Metro Inc. Class A		426,337		19,248,708
Saputo Inc.		588,776		24,866,882
				83,563,607
FOREST PRODUCTS & PAPER – 0.39%
Sino-Forest Corp. Class Ab		1,000,531		22,288,777
				22,288,777
GAS – 0.31%
Canadian Utilities Ltd. Class A		349,952		18,058,680
				18,058,680
HAND & MACHINE TOOLS – 0.34%
Finning International Inc.		697,834		19,798,995
				19,798,995
HOLDING COMPANIES – DIVERSIFIED – 0.43%
Onex Corp.		385,686		13,740,719
Sherritt International Corp.		1,199,541		11,188,577
				24,929,296
INSURANCE – 6.74%
Fairfax Financial Holdings Ltd.		81,221		31,376,617
Great-West Lifeco Inc.		1,159,446		32,634,143
Industrial Alliance Insurance and Financial Services Inc.		341,084		13,810,656
Intact Financial Corp.		460,319		23,380,832
Manulife Financial Corp.		7,224,304		136,102,018
Power Corp. of Canada		1,418,391		42,731,476
Power Financial Corp.		1,010,078		32,783,097
Sun Life Financial Inc.		2,331,268		77,194,621
				390,013,460
MANUFACTURING – 0.65%
Bombardier Inc. Class B		5,856,381		37,558,238
				37,558,238
MEDIA – 1.77%
Shaw Communications Inc. Class B		1,425,838		30,270,985
Thomson Reuters Corp.		1,526,892		60,038,480

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2011

Security	Shares		Value
Yellow Media Inc.		2,070,373	$	11,833,131
				102,142,596
MINING – 17.35%
Agnico-Eagle Mines Ltd.		684,318		47,959,488
Barrick Gold Corp.		4,019,552		211,505,440
Cameco Corp.		1,604,079		65,065,151
Centerra Gold Inc.		672,669		12,893,599
Eldorado Gold Corp.		2,232,701		37,916,168
First Quantum Minerals Ltd.		351,180		45,584,393
Franco-Nevada Corp.		466,389		15,821,477
Goldcorp Inc.		3,226,549		153,654,650
IAMGOLD Corp.		1,443,599		30,499,927
Inmet Mining Corp.		205,838		14,111,166
Ivanhoe Mines Ltd.b		1,245,188		35,162,458
Kinross Gold Corp.		4,611,290		72,868,366
Osisko Mining Corp.b		1,397,404		19,214,215
Pan American Silver Corp.		414,751		16,159,351
Silver Wheaton Corp.b		1,341,273		56,841,183
Teck Resources Ltd. Class B		2,365,592		130,471,059
Yamana Gold Inc.		3,021,190		38,286,077
				1,004,014,168
OIL & GAS – 23.86%
ARC Resources Ltd.		1,153,021		33,600,940
Athabasca Oil Sands Corp.b		810,947		13,730,055
Baytex Energy Corp.		458,795		26,292,854
Bonavista Energy Corp.		542,379		17,069,174
Canadian Natural Resources Ltd.		4,435,944		222,718,937
Canadian Oil Sands Ltd.		1,964,891		60,586,912
Cenovus Energy Inc.		3,065,605		118,748,744
Crescent Point Energy Corp.		974,058		46,956,282
EnCana Corp.		2,997,525		97,133,897
Enerplus Corp.		726,227		23,637,495
Husky Energy Inc.		1,039,358		31,963,018
Imperial Oil Ltd.		1,209,351		62,778,787
MEG Energy Corp.b		191,835		9,645,390
Nexen Inc.		2,140,305		58,221,216
Niko Resources Ltd.		187,436		15,961,535
Pacific Rubiales Energy Corp.		1,035,407		34,593,250
Pengrowth Energy Corp.		1,330,399		17,064,273
Penn West Petroleum Ltd.		1,860,121		53,615,309
PetroBakken Energy Ltd. Class A		305,919		7,000,148
Progress Energy Resources Corp.		744,463		9,869,644

Security	Shares		Value
Suncor Energy Inc.		6,372,665	$	298,574,608
Talisman Energy Inc.		4,157,836		102,863,297
Vermilion Energy Inc.		343,731		18,005,713
				1,380,631,478
PHARMACEUTICALS – 0.80%
Valeant Pharmaceuticals International Inc.		1,161,125		46,454,532
				46,454,532
PIPELINES – 3.49%
Enbridge Inc.		1,480,779		88,204,013
TransCanada Corp.		2,836,736		113,638,267
				201,842,280
REAL ESTATE – 1.64%
Brookfield Asset Management Inc. Class A		2,273,253		76,883,094
Brookfield Properties Corp.		1,023,232		17,891,204
				94,774,298
REAL ESTATE INVESTMENT TRUSTS – 0.22%
RioCan Real Estate Investment Trust		501,993		12,475,779
				12,475,779
RETAIL – 1.76%
Alimentation Couche-Tard Inc. Class B		510,287		13,451,617
Canadian Tire Corp. Ltd. Class A		317,989		20,151,866
Shoppers Drug Mart Corp.		886,429		37,474,603
Tim Hortons Inc.		705,156		30,961,598
				102,039,684
SOFTWARE – 0.24%
Open Text Corp.b		231,852		13,591,611
				13,591,611
TELECOMMUNICATIONS – 2.41%
BCE Inc.		1,016,591		37,573,863
Rogers Communications Inc. Class B		1,755,401		61,782,622
TELUS Corp.		231,158		11,420,920
TELUS Corp. NVS		599,753		28,370,646
				139,148,051
TRANSPORTATION – 3.50%
Canadian National Railway Co.		1,885,694		137,496,707
Canadian Pacific Railway Ltd.		689,369		46,644,084

26 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CANADA INDEX FUND

February 28, 2011

Security	Shares		Value
Viterra Inc.		1,514,774	$	18,496,547
				202,637,338
TOTAL COMMON STOCKS
(Cost: $4,937,503,862)				5,775,875,111
SHORT-TERM INVESTMENTS – 0.23%
MONEY MARKET FUNDS – 0.23%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%c,d,e		8,759,275		8,759,275
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%c,d,e		1,258,780		1,258,780
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		3,427,017		3,427,017
				13,445,072
TOTAL SHORT-TERM INVESTMENTS
(Cost: $13,445,072)				13,445,072
TOTAL INVESTMENTS IN SECURITIES – 100.04%
(Cost: $4,950,948,934)				5,789,320,183
Other Assets, Less Liabilities – (0.04)%				(2,519,975	)
NET ASSETS – 100.00%			$	5,786,800,208

NVS - Non-Voting Shares

^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 CHILE INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 100.08%
AIRLINES – 4.69%
LAN Airlines SA		1,501,888	$	40,904,502
				40,904,502
APPAREL – 0.41%
Forus SA		1,217,852		3,591,349
				3,591,349
BANKS – 10.36%
Banco de Credito e Inversiones		491,458		31,371,532
Banco Santander (Chile) SA		524,719,516		42,065,981
CorpBanca SA		1,132,230,880		16,956,633
				90,394,146
BEVERAGES – 3.58%
Compania Cervecerias Unidas SA		1,674,936		17,992,993
Vina Concha y Toro SA		6,324,485		13,255,108
				31,248,101
BUILDING MATERIALS – 0.93%
SalfaCorp SA		2,458,323		8,129,683
				8,129,683
CHEMICALS – 5.20%
Sociedad Quimica y Minera de Chile SA Series B		862,586		45,423,170
				45,423,170
COMPUTERS – 1.02%
Sonda SA		3,846,895		8,913,290
				8,913,290
ELECTRIC – 21.56%
AES Gener SA		32,315,550		16,949,072
Colbun SA		94,139,558		23,596,856
Empresa Electrica Pilmaiquen SA		332,575		1,294,573
Empresa Nacional de Electricidad SA		43,365,286		75,824,168
Enersis SA		174,291,915		70,524,438
				188,189,107
ENGINEERING & CONSTRUCTION – 1.49%
Besalco SA		4,137,664		7,748,043
Socovesa SA		7,460,179		5,264,160
				13,012,203
FOOD – 10.38%
Cencosud SA		12,272,736		83,757,061
Empresas Iansa SAa		34,099,196		4,438,821

Security	Shares		Value
Multiexport Foods SAa		5,816,800	$	2,450,469
				90,646,351
FOREST PRODUCTS & PAPER – 8.42%
Empresas CMPC SA		1,518,221		67,952,982
Masisa SAa		36,060,919		5,506,933
				73,459,915
HOLDING COMPANIES – DIVERSIFIED – 11.95%
Empresas Copec SA		6,204,720		104,294,188
				104,294,188
INVESTMENT COMPANIES – 0.63%
Norte Grande SA		307,024,722		5,477,619
				5,477,619
IRON & STEEL – 5.07%
CAP SA		921,615		44,260,815
				44,260,815
LODGING – 0.31%
Enjoy SAa		9,197,486		2,712,265
				2,712,265
METAL FABRICATE & HARDWARE – 0.38%
Madeco SA		56,611,042		3,338,829
				3,338,829
REAL ESTATE – 1.39%
Parque Arauco SA		5,814,628		12,174,282
				12,174,282
RETAIL – 6.94%
Empresas Hites SA		1,823,374		2,527,183
La Polar SA		3,066,728		17,860,986
S.A.C.I. Falabella SA		4,134,991		40,230,697
				60,618,866
TELECOMMUNICATIONS – 2.80%
Empresa Nacional de Telecomunicaciones SA		1,427,079		24,438,446
				24,438,446
TRANSPORTATION – 1.38%
Compania SudAmericana de Vapores SAa		15,199,772		12,006,139
				12,006,139

28 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI CHILE INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
WATER – 1.19%
Inversiones Aguas Metropolitanas SA		6,827,677	$	10,426,679
				10,426,679
TOTAL COMMON STOCKS
(Cost: $677,378,704)				873,659,945
SHORT-TERM INVESTMENTS – 0.15%
MONEY MARKET FUNDS – 0.15%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%b,c		1,254,477		1,254,477
				1,254,477
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,254,477)				1,254,477
TOTAL INVESTMENTS IN SECURITIES – 100.23%
(Cost: $678,633,181)				874,914,422
Other Assets, Less Liabilities – (0.23)%				(1,976,509	)
NET ASSETS – 100.00%			$	872,937,913

^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 29

Schedule of Investments (Unaudited)

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.82%
AEROSPACE & DEFENSE – 1.80%
Elbit Systems Ltd.		42,871	$	2,189,409
				2,189,409
BANKS – 17.91%
Bank Hapoalim Ltd.a		1,283,117		5,844,425
Bank Leumi le-Israel		2,138,046		9,886,065
First International Bank of Israel Ltd.		29,670		421,072
Israel Discount Bank Ltd. Class Aa		1,428,266		2,894,382
Mizrahi Tefahot Bank Ltd.		234,866		2,389,182
Union Bank of Israel		77,271		379,904
				21,815,030
BIOTECHNOLOGY – 0.18%
Clal Biotechnology Industries Ltd.a,b		33,368		214,163
				214,163
CHEMICALS – 12.94%
Frutarom		79,722		752,875
Israel Chemicals Ltd.		780,622		12,972,656
Makhteshim-Agan Industries Ltd.a		407,640		2,032,292
				15,757,823
COMMERCIAL SERVICES – 0.69%
AL-ROV (Israel) Ltd.a		8,170		265,906
Nitsba Holdings (1995) Ltd.a		59,899		574,435
				840,341
COMPUTERS – 0.33%
MATRIX IT Ltd.		67,381		398,055
				398,055
DIVERSIFIED FINANCIAL SERVICES – 0.69%
FIBI Holdings Ltd.a		17,630		379,854
Mivtach Shamir Holdings Ltd.c		14,910		464,690
				844,544
ELECTRICAL COMPONENTS & EQUIPMENT – 0.24%
Electra (Israel) Ltd.		2,580		292,079
				292,079
ELECTRONICS – 0.54%
Elron Electronic Industries Ltd.a		31,347		173,328
Ituran Location and Control Ltd.		30,745		484,451
				657,779

Security	Shares		Value
ENGINEERING & CONSTRUCTION – 0.78%
Shikun & Binui Ltd.		359,609	$	954,093
				954,093
FOOD – 3.09%
Blue Square-Israel Ltd.b		29,885		278,432
Osem Investment Ltd.		68,886		1,109,782
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd.		15,093		512,474
Shufersal Ltd.		148,221		860,480
Strauss Group Ltd.		68,600		1,001,778
				3,762,946
FOREST PRODUCTS & PAPER – 0.30%
Hadera Paper Ltd.a		4,816		370,789
				370,789
HEALTH CARE – PRODUCTS – 0.51%
Given Imaging Ltd.a		32,981		621,381
				621,381
HOLDING COMPANIES – DIVERSIFIED – 1.03%
Clal Industries and Investments Ltd.		91,117		675,360
Elco Holdings Ltd.		15,523		211,772
Granite Hacarmel Investments Ltd.b		94,901		196,928
Israel Land Development Co. Ltd. (The)		4,343		34,792
Scailex Corp. Ltd.		7,095		139,197
				1,258,049
HOME BUILDERS – 0.20%
Bayside Land Corp. Ltd.		344		85,058
Property & Building Corp. Ltd.		1,763		158,609
				243,667
INSURANCE – 2.33%
Clal Insurance Enterprises Holdings Ltd.		31,820		846,074
Harel Insurance Investments & Financial Services Ltd.		17,372		982,615
Menorah Mivtachim Holdings Ltd.a		47,214		615,053
Phoenix Holdings Ltd.a,b		116,445		392,167
				2,835,909
INTERNET – 0.45%
Internet Gold-Golden Lines Ltd.a		8,686		254,166
NetVision Ltd.		22,833		288,808
				542,974
INVESTMENT COMPANIES – 6.06%
Delek Group Ltd. (The)		7,525		1,797,068

30 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
Elbit Imaging Ltd.a		24,338	$	292,929
Israel Corp. Ltd. (The)a		4,042		4,792,378
Koor Industries Ltd.		19,995		488,160
Otzar Hityashvuth Hayehudim Ltd.		5		12,690
				7,383,225
MACHINERY – 0.67%
Ormat Industries Ltd.		113,520		813,207
				813,207
MANUFACTURING – 0.30%
FMS Enterprises Migun Ltd.		6,450		180,546
Plasson Industries Ltd.		8,643		190,874
				371,420
MEDIA – 0.44%
Hot Telecommunication Systems Ltd.a		34,056		537,281
				537,281
OIL & GAS – 2.23%
Delek Israeli Fuel Corp. Ltd.b		3,765		123,785
Jerusalem Oil Exploration Ltd.a		12,513		249,293
Naphtha Israel Petroleum Corp. Ltd.a,b		53,235		207,502
Oil Refineries Ltd.b		1,583,690		1,083,336
Paz Oil Co. Ltd.b		6,106		1,046,911
				2,710,827
PHARMACEUTICALS – 23.68%
Teva Pharmaceutical Industries Ltd.		570,825		28,836,708
				28,836,708
REAL ESTATE – 3.39%
Africa Israel Investments Ltd.a		104,791		838,905
Africa Israel Properties Ltd.a		19,179		271,756
Airport City Ltd.a		61,490		283,134
Alony Hetz Properties & Investments Ltd.		121,346		658,903
Amot Investments Ltd.		143,405		404,582
British Israel Investments Ltd.		93,525		323,239
Delek Real Estate Ltd.a		247,261		62,114
Electra Real Estate Ltd.a		15,781		108,172
Gazit Inc.b		10,578		265,406
Jerusalem Economy Ltd.a		32,121		428,280
Melisron Ltd.		20,124		491,198
				4,135,689
RETAIL – 0.66%
Delek Automotive Systems Ltd.		58,222		760,221

Security	Shares		Value
Golf & Co. Ltd.		7,224	$	40,343
				800,564
SEMICONDUCTORS – 1.64%
Mellanox Technologies Ltd.a		56,287		1,494,927
Tower Semiconductor Ltd.a		374,659		506,992
				2,001,919
SOFTWARE – 0.37%
Retalix Ltd.a		31,046		452,942
				452,942
TELECOMMUNICATIONS – 16.37%
012 Smile.Communications Ltd.a		17,673		566,902
Alvarion Ltd.a		96,492		190,054
AudioCodes Ltd.a		61,748		422,563
Bezeq The Israel Telecommunication Corp. Ltd.		2,969,831		8,075,317
Cellcom Israel Ltd.		88,279		2,702,592
Ceragon Networks Ltd.a		50,181		628,769
Gilat Satellite Networks Ltd.a		47,470		244,524
NICE Systems Ltd.a		113,993		3,917,772
Partner Communications Co. Ltd.		167,786		3,114,868
Suny Electronic Inc. Ltd.a,b		6,396		77,494
				19,940,855
TOTAL COMMON STOCKS
(Cost: $131,137,628)				121,583,668
SHORT-TERM INVESTMENTS – 1.13%
MONEY MARKET FUNDS – 1.13%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%d,e,f		1,181,517		1,181,517
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%d,e,f		169,794		169,794
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%d,e		17,665		17,665
				1,368,976
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,368,976)				1,368,976

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND

February 28, 2011

	Value
TOTAL INVESTMENTS IN SECURITIES – 100.95%
(Cost: $132,506,604)	$	122,952,644
Other Assets, Less Liabilities – (0.95)%		(1,153,778	)
NET ASSETS – 100.00%	$	121,798,866

^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.

32 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI MEXICO INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.94%
BANKS – 1.49%
Compartamos SAB de CVa,b		11,469,600	$	22,115,440
				22,115,440
BEVERAGES – 9.83%
Embotelladoras Arca SAB de CVb		1,968,300		10,713,851
Fomento Economico Mexicano SAB de CV BD Units		16,524,008		92,907,001
Grupo Modelo SAB de CV Series C		6,925,556		41,909,931
				145,530,783
BUILDING MATERIALS – 4.36%
Cemex SAB de CV CPOa		71,782,280		64,547,395
				64,547,395
CHEMICALS – 1.92%
Mexichem SAB de CV		7,915,031		28,456,039
				28,456,039
DIVERSIFIED FINANCIAL SERVICES – 6.90%
Bolsa Mexicana de Valores SAB de CVb		3,645,000		7,184,863
Financiera Independencia SAB de CVb		1,094,568		1,108,183
Grupo Financiero Banorte SAB de CV Series O		12,879,000		58,500,751
Grupo Financiero Inbursa SAB de CV Series O		8,432,100		35,423,253
				102,217,050
ENGINEERING & CONSTRUCTION – 3.83%
Carso Infraestructura y Construccion SAB de CV Series B1a,b		8,602,200		5,332,162
Empresas ICA SAB de CVa,b		4,908,674		11,302,588
Grupo Aeroportuario del Centro Norte SAB de CVb		1,944,000		3,452,751
Grupo Aeroportuario del Pacifico SAB de CV Series B		5,516,100		20,975,723
Grupo Aeroportuario del Sureste SAB de CV Series B SP ADRb		287,712		15,732,092
				56,795,316
FOOD – 2.74%
Alsea SAB de CV		3,936,645		4,197,092

Security	Shares		Value
Gruma SAB de CV Series Ba,b		1,482,369	$	3,018,767
Grupo Bimbo SAB de CV Series A		4,276,800		33,300,329
				40,516,188
FOREST PRODUCTS & PAPER – 2.45%
Bio Pappel SAB de CVa,b		413,100		375,561
Kimberly-Clark de Mexico SAB de CV Series A		6,172,200		35,937,972
				36,313,533
HOLDING COMPANIES – DIVERSIFIED – 4.07%
Alfa SAB de CV Series A		3,013,200		37,534,568
Grupo Carso SAB de CV Series A1		7,107,530		22,768,533
				60,303,101
HOME BUILDERS – 2.31%
Consorcio ARA SAB de CV		8,699,400		5,068,868
Corporacion Geo SAB de CV Series Ba,b		4,009,960		11,288,007
Desarrolladora Homex SAB de CVa		1,652,430		7,525,013
Urbi Desarrollos Urbanos SAB de CVa		4,738,500		10,374,219
				34,256,107
IRON & STEEL – 0.22%
Compania Minera Autlan SAB de CV Series Ba,b		388,800		1,136,243
Grupo Simec SAB de CV Series Ba,b		801,900		2,105,571
				3,241,814
MACHINERY – 0.53%
Industrias CH SAB de CV Series Ba,b		2,016,900		7,914,576
				7,914,576
MEDIA – 5.43%
Grupo Televisa SA CPOa		14,968,899		70,703,135
TV Azteca SAB de CV CPOb		13,972,500		9,758,058
				80,461,193
MINING – 11.46%
Grupo Mexico SAB de CV Series B		28,819,810		109,448,347
Industrias Penoles SAB de CV		899,100		31,278,083
Minera Frisco SAB de CVa		6,852,630		29,065,414
				169,791,844
PHARMACEUTICALS – 0.81%
Genomma Lab Internacional SAB de CV Series Ba,b		5,443,200		12,034,018
				12,034,018

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MEXICO INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
REAL ESTATE – 0.51%
Inmuebles Carso SAB de CV Series B-1a,b		7,107,530	$	7,524,894
				7,524,894
RETAIL – 13.00%
Controladora Comercial Mexicana SA de CV BC Unitsa,b		6,513,000		8,984,005
Grupo Elektra SA de CVb		631,820		26,363,648
Grupo Famsa SAB de CV Series Aa,b		1,895,415		3,429,120
Wal-Mart de Mexico SAB de CV Series V		53,727,300		153,728,594
				192,505,367
TELECOMMUNICATIONS – 28.08%
America Movil SAB de CV Series L		123,905,785		355,142,991
Axtel SAB de CV CPOa,b		11,299,500		6,481,138
Maxcom Telecomunicaciones SAB de CVa,b		1,823,000		920,578
Telefonos de Mexico SAB de CV Series L		58,684,500		53,303,249
				415,847,956
TOTAL COMMON STOCKS
(Cost: $1,385,623,088)				1,480,372,614
SHORT-TERM INVESTMENTS – 4.28%
MONEY MARKET FUNDS – 4.28%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%c,d,e		54,912,513		54,912,513
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%c,d,e		7,891,379		7,891,379
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		568,291		568,291
				63,372,183
TOTAL SHORT-TERM INVESTMENTS
(Cost: $63,372,183)				63,372,183

	Value
TOTAL INVESTMENTS IN SECURITIES – 104.22%
(Cost: $1,448,995,271)	$	1,543,744,797
Other Assets, Less Liabilities – (4.22)%		(62,510,481	)
NET ASSETS – 100.00%	$	1,481,234,316

CPO – Certificates of Participation (Ordinary)

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.

34 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.93%
BANKS – 11.99%
Absa Group Ltd.		687,808	$	12,860,995
FirstRand Ltd.		5,999,576		16,937,721
Nedbank Group Ltd.		382,624		7,046,980
Standard Bank Group Ltd.		2,529,032		36,391,703
				73,237,399
BUILDING MATERIALS – 0.74%
Pretoria Portland Cement Co. Ltd.		1,122,792		4,501,491
				4,501,491
COAL – 0.96%
Exxaro Resources Ltd.		266,640		5,858,045
				5,858,045
DIVERSIFIED FINANCIAL SERVICES – 3.37%
African Bank Investments Ltd.		1,540,352		7,946,996
Investec Ltd.		493,592		3,862,495
RMB Holdings Ltd.		1,581,712		8,762,152
				20,571,643
ELECTRONICS – 0.52%
Reunert Ltd.		379,984		3,165,142
				3,165,142
ENGINEERING & CONSTRUCTION – 1.08%
Aveng Ltd.		798,776		4,210,839
Murray & Roberts Holdings Ltd.		671,000		2,417,478
				6,628,317
FOOD – 4.27%
Shoprite Holdings Ltd.		867,504		12,051,705
SPAR Group Ltd. (The)		364,320		4,987,247
Tiger Brands Ltd.		344,080		9,044,494
				26,083,446
FOREST PRODUCTS & PAPER – 1.00%
Sappi Ltd.a		1,143,120		6,088,689
				6,088,689
HEALTH CARE – PRODUCTS – 1.06%
Aspen Pharmacare Holdings Ltd.a		553,168		6,497,027
				6,497,027
HEALTH CARE – SERVICES – 0.79%
Netcare Ltd.		2,297,240		4,830,161
				4,830,161

Security	Shares		Value
HOLDING COMPANIES – DIVERSIFIED – 5.71%
Bidvest Group Ltd.		633,424	$	14,241,211
Imperial Holdings Ltd.		358,072		5,799,600
Remgro Ltd.		921,536		14,867,447
				34,908,258
HOME FURNISHINGS – 1.53%
Steinhoff International Holdings Ltd.a		2,613,952		9,327,134
				9,327,134
INSURANCE – 4.34%
Discovery Holdings Ltd.		566,896		3,227,011
Liberty Holdings Ltd.		213,840		2,355,335
MMI Holdings Ltd.		2,241,360		5,248,860
Sanlam Ltd.		4,022,480		15,680,545
				26,511,751
IRON & STEEL – 2.71%
ArcelorMittal South Africa Ltd.		379,456		4,930,869
Kumba Iron Ore Ltd.		171,248		11,623,507
				16,554,376
MEDIA – 7.74%
Naspers Ltd. Class N		821,040		47,322,753
				47,322,753
MINING – 21.43%
African Rainbow Minerals Ltd.		226,512		6,894,220
Anglo Platinum Ltd.a		140,184		13,676,882
AngloGold Ashanti Ltd.		811,272		39,691,129
Gold Fields Ltd.		1,531,816		27,547,765
Harmony Gold Mining Co. Ltd.		822,712		9,630,842
Impala Platinum Holdings Ltd.		1,075,536		31,852,004
Northam Platinum Ltd.b		231,088		1,648,476
				130,941,318
OIL & GAS – 11.03%
Sasol Ltd.		1,227,864		67,412,592
				67,412,592
REAL ESTATE – 2.28%
Growthpoint Properties Ltd.		3,344,616		8,179,525
Redefine Properties Ltd.		5,439,192		5,761,316
				13,940,841
RETAIL – 5.06%
Foschini Group Ltd. (The)		435,072		4,924,385
Massmart Holdings Ltd.		410,696		8,522,813
Pick’n Pay Stores Ltd.		460,064		3,079,006

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH AFRICA INDEX FUND

February 28, 2011

Security	Shares		Value
Truworths International Ltd.		922,152	$	8,473,265
Woolworths Holdings Ltd.		1,535,248		5,907,310
				30,906,779
TELECOMMUNICATIONS – 12.32%
MTN Group Ltd.		3,606,944		63,883,877
Telkom South Africa Ltd.		554,224		2,831,402
Vodacom Group Ltd.		791,736		8,545,987
				75,261,266
TOTAL COMMON STOCKS
(Cost: $582,870,102)				610,548,428
SHORT-TERM INVESTMENTS – 0.31%
MONEY MARKET FUNDS – 0.31%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%c,d,e		1,546,153		1,546,153
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%c,d,e		222,195		222,195
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		130,504		130,504
				1,898,852
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,898,852)				1,898,852
TOTAL INVESTMENTS IN SECURITIES – 100.24%
(Cost: $584,768,954)				612,447,280
Other Assets, Less Liabilities – (0.24)%				(1,464,923	)
NET ASSETS – 100.00%			$	610,982,357

^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 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.97%
AEROSPACE & DEFENSE – 0.33%
Aselsan Elektronik Sanayi ve TAS		357,072	$	1,678,029
				1,678,029
AIRLINES – 1.67%
Turk Hava Yollari Anonim Ortakligia		3,029,230		8,480,784
				8,480,784
AUTO MANUFACTURERS – 0.18%
Otokar Otomotiv Ve Savunma Sanayi ASb		63,491		902,650
				902,650
BANKS – 41.31%
Akbank TAS		9,086,998		42,476,406
Albaraka Turk Katilim Bankasi ASb		1,421,195		1,953,899
Asya Katilim Bankasi AS		3,400,142		5,482,044
Sekerbank TASb		1,976,871		1,939,562
Tekstil Bankasi ASa		784,036		445,865
Turkiye Garanti Bankasi AS		15,904,928		70,370,510
Turkiye Halk Bankasi AS		2,365,602		17,148,471
Turkiye Is Bankasi ASb		11,924,717		37,111,043
Turkiye Vakiflar Bankasi TAO		5,771,793		13,958,779
Yapi ve Kredi Bankasi ASa		6,580,575		18,341,060
				209,227,639
BEVERAGES – 5.14%
Anadolu Efes Biracilik ve Malt Sanayii AS		1,533,818		20,703,955
Coca-Cola Icecek AS		481,632		5,327,388
				26,031,343
BUILDING MATERIALS – 2.53%
Adana Cimento Sanayii TAS Class A		434,922		1,440,500
Afyon Cimento Sanayi TAS		5,363		658,561
Akcansa Cimento Sanayi ve TASb		361,916		1,546,998
Baticim Bati Anodolu Cimento Sanayii AS		241,681		1,214,295
Bolu Cimento Sanayii AS		540,452		530,252
Bursa Cimento Fabrikasi AS		361,051		1,060,455
Cimsa Cimento Sanayi ve TASb		306,383		1,723,189
Goltas Goller Bolgesi Cimento Sanayi ve TAS		21,798		1,382,638
Konya Cimento Sanayii AS		7,439		1,459,721

Security	Shares		Value
Mardin Cimento Sanayii ve TASb		372,988	$	1,794,780
				12,811,389
CHEMICALS – 1.73%
Aksa Akrilik Kimya Sanayii AS		630,066		1,445,034
Bagfas Bandirma Gubre Fabrikalari ASa		13,667		1,503,182
Gubre Fabrikalari TASa,b		157,949		1,436,172
Petkim Petrokimya Holding ASa,b		3,029,230		4,372,904
				8,757,292
COMMERCIAL SERVICES – 0.82%
Ihlas Holding ASa,b		2,247,097		2,134,475
Koza Anadolu Metal Madencilik Isletmeleri ASa,b		735,769		2,004,720
				4,139,195
DISTRIBUTION & WHOLESALE – 0.71%
Aygaz AS		681,793		3,604,529
				3,604,529
DIVERSIFIED FINANCIAL SERVICES – 1.02%
Is Finansal Fabrikasi ASa		1,000,978		944,555
Is Yatirim Menkul Degerler AS		452,914		761,366
Turkiye Sinai Kalkinma Bankasi ASb		2,115,964		3,477,681
				5,183,602
ELECTRIC – 0.53%
Akenerji Elektrik Uretim ASa,b		853,236		1,519,637
Zorlu Enerji Elektrik Uretim ASa,b		748,571		1,160,140
				2,679,777
ENGINEERING & CONSTRUCTION – 1.41%
Enka Insaat ve Sanayi AS		2,164,750		7,142,782
				7,142,782
ENTERTAINMENT – 0.61%
Besiktas Futbol Yatirimlar Sanayi ve Ticaret ASa		90,825		577,802
Fenerbahce Sportif Hizmetler Sanayi ve TAS		28,372		1,671,079
Galatasaray Sportif Sinai ve Ticari Yatirimlar AS		4,152		869,216
				3,118,097
FOOD – 4.86%
Banvit Bandirma Vitaminli Yem Sanayii ASa,b		188,743		524,876
BIM Birlesik Magazalar AS		632,488		19,881,356
Pinar Sut Mamulleri Sanayii AS		136,497		1,104,635

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
Tat Konserve Sanayii ASa		363,127	$	814,664
Ulker Biskuvi Sanayi AS		711,549		2,294,459
				24,619,990
FOREST PRODUCTS & PAPER – 0.64%
Ipek Matbaacilik Sanayi ve TASa		395,997		772,098
Kartonsan Karton Sanayi ve TAS		14,013		1,887,140
Tire Kutu Ve Kagit Sanayii ASa,b		604,289		566,450
				3,225,688
HOLDING COMPANIES – DIVERSIFIED – 9.86%
Alarko Holding ASb		506,371		1,034,766
Dogan Sirketler Grubu Holdings ASa,b		6,489,750		4,785,593
Eczacibasi Yatirim Holding Ortakligi ASb		240,470		739,353
Haci Omer Sabanci Holding AS		4,633,805		18,590,819
KOC Holding AS		4,573,255		19,148,113
Tekfen Holding ASb		980,737		3,285,058
Yazicilar Holding AS		302,577		2,354,133
				49,937,835
HOME FURNISHINGS – 1.78%
Arcelik AS		1,535,202		7,118,609
Vestel Beyaz Esya Sanayi ve TASb		502,392		960,705
Vestel Elektronik Sanayi ve TASa		632,142		924,393
				9,003,707
HOUSEWARES – 0.24%
Anadolu Cam Sanayii ASa		657,054		1,219,504
				1,219,504
INSURANCE – 1.14%
Aksigorta ASb		923,474		1,102,259
Anadolu Anonim Turk Sigorta Sirketib		1,698,342		1,284,211
Anadolu Hayat Emeklilik ASb		377,313		1,061,060
Gunes Sigorta ASa		281,990		341,870
Yapi Kredi Sigorta ASa,b		211,752		1,965,078
				5,754,478
IRON & STEEL – 2.71%
Eregli Demir ve Celik Fabrikalari TASa		3,029,057		9,351,046
Izmir Demir Celik Sanayi ASa		283,893		867,539
Kardemir Karabuk Demir Celik Sanayi ve TAS Class Aa		1,414,275		910,326
Kardemir Karabuk Demir Celik Sanayi ve TAS Class Ba		697,882		501,540

Security	Shares		Value
Kardemir Karabuk Demir Celik Sanayi ve TAS Class Da,b		4,327,768	$	2,082,478
				13,712,929
LODGING – 0.17%
Net Holding ASa		1,025,890		865,486
				865,486
MACHINERY – 0.31%
Turk Traktor ve Ziraat Makineleri AS		101,205		1,577,968
				1,577,968
MANUFACTURING – 0.49%
Trakya Cam Sanayii ASa		1,371,024		2,476,103
				2,476,103
MEDIA – 0.88%
Dogan Gazetecilik ASa		239,951		449,853
Dogan Yayin Holding ASa,b		1,893,312		2,271,690
Hurriyet Gazetecilik ve Matbaacilik AS		1,462,196		1,745,278
				4,466,821
METAL FABRICATE & HARDWARE – 0.12%
Borusan Mannesmann Boru Sanayi ve TAS		64,529		625,047
				625,047
MINING – 1.02%
Koza Altin Isletmeleri ASb		346,865		4,064,316
Park Elektrik Uretim Madencilik Sanayi ve TASa,b		507,928		1,120,476
				5,184,792
OIL & GAS – 4.66%
Turkiye Petrol Rafinerileri AS		948,386		23,588,153
				23,588,153
PHARMACEUTICALS – 0.80%
Deva Holding ASa		612,247		1,033,038
EIS Eczacibasi Ilac Sanayi ve TASb		1,244,216		1,679,482
Selcuk Ecza Deposu Ticaret ve Sanayi AS		939,390		1,361,945
				4,074,465
REAL ESTATE INVESTMENT TRUSTS – 1.16%
Akmerkez Gayrimenkul Yatirim Ortakligi ASb		57,090		2,443,860
Is Gayrimenkul Yatirim Ortakligi AS		1,699,725		1,848,220

38 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TURKEY INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
Sinpas Gayrimenkul Yatirim
Ortakligi ASa,b		1,348,362	$	1,592,554
				5,884,634
RETAIL – 0.75%
Boyner Buyuk Magazacilik ASa		278,011		672,355
Dogus Otomotiv Servis ve TASa		583,183		1,960,708
Turcas Petrolculuk ASb		512,771		1,172,818
				3,805,881
TELECOMMUNICATIONS – 10.26%
Nortel Networks Netas Telekomunikasyon ASb		17,127		1,642,916
Turk Telekomunikasyon AS		3,976,405		17,692,791
Turkcell Iletisim Hizmetleri ASb		5,832,003		32,655,135
				51,990,842
TRANSPORTATION – 0.13%
Celebi Hava Servisi AS		45,672		645,036
				645,036
TOTAL COMMON STOCKS
(Cost: $557,268,543)				506,416,467
SHORT-TERM INVESTMENTS – 9.05%
MONEY MARKET FUNDS – 9.05%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%c,d,e		38,912,274		38,912,274
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%c,d,e		5,592,013		5,592,013
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		1,320,182		1,320,182
				45,824,469
TOTAL SHORT-TERM INVESTMENTS
(Cost: $45,824,469)				45,824,469
TOTAL INVESTMENTS IN SECURITIES – 109.02%
(Cost: $603,093,012)				552,240,936
Other Assets, Less Liabilities – (9.02)%				(45,706,569)
NET ASSETS – 100.00%			$	506,534,367

^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 39

Schedule of Investments (Unaudited)

iSHARES^® MSCI USA INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.85%
ADVERTISING – 0.18%
Interpublic Group of Companies Inc. (The)a		54	$	713
Omnicom Group Inc.		37		1,883
				2,596
AEROSPACE & DEFENSE – 1.95%
Boeing Co. (The)		78		5,617
General Dynamics Corp.		38		2,893
Goodrich Corp.		14		1,207
L-3 Communications Holdings Inc.		13		1,031
Lockheed Martin Corp.		36		2,850
Northrop Grumman Corp.		33		2,200
Raytheon Co.		44		2,253
Rockwell Collins Inc.		17		1,095
United Technologies Corp.		101		8,438
				27,584
AGRICULTURE – 2.12%
Altria Group Inc.		235		5,962
Archer-Daniels-Midland Co.		73		2,714
Bunge Ltd.		15		1,083
Lorillard Inc.		18		1,382
Monsanto Co.		62		4,457
Philip Morris International Inc.		206		12,933
Reynolds American Inc.		42		1,441
				29,972
AIRLINES – 0.05%
Delta Air Lines Inc.a		22		247
Southwest Airlines Co.		20		237
United Continental Holdings Inc.a		9		216
				700
APPAREL – 0.53%
Coach Inc.		35		1,922
Nike Inc. Class B		43		3,828
Polo Ralph Lauren Corp.		6		760
VF Corp.		10		957
				7,467
AUTO MANUFACTURERS – 0.63%
Ford Motor Co.a		335		5,042
General Motors Co.a		59		1,978
PACCAR Inc.		38		1,905
				8,925

Security	Shares		Value
AUTO PARTS & EQUIPMENT – 0.42%
Autoliv Inc.		10	$	749
BorgWarner Inc.a		13		1,009
Goodyear Tire & Rubber Co. (The)a		25		354
Johnson Controls Inc.		78		3,182
TRW Automotive Holdings Corp.a		12		682
				5,976
BANKS – 4.30%
Bank of America Corp.		1,133		16,191
Bank of New York Mellon Corp. (The)		137		4,163
BB&T Corp.		80		2,208
Comerica Inc.		19		739
Fifth Third Bancorp		91		1,329
KeyCorp		97		887
M&T Bank Corp.		10		880
Marshall & Ilsley Corp.		55		427
Northern Trust Corp.		24		1,238
PNC Financial Services Group Inc. (The)b		59		3,640
Regions Financial Corp.		131		1,001
State Street Corp.		58		2,594
SunTrust Banks Inc.		56		1,689
U.S. Bancorp		217		6,017
Wells Fargo & Co.		556		17,937
				60,940
BEVERAGES – 2.15%
Brown-Forman Corp. Class B NVS		9		622
Coca-Cola Co. (The)		234		14,957
Coca-Cola Enterprises Inc.		32		842
Constellation Brands Inc. Class Aa		22		447
Dr Pepper Snapple Group Inc.		28		1,010
Hansen Natural Corp.a		8		460
Molson Coors Brewing Co. Class B NVS		17		778
PepsiCo Inc.		179		11,352
				30,468
BIOTECHNOLOGY – 1.18%
Alexion Pharmaceuticals Inc.a		10		963
Amgen Inc.a		104		5,338
Biogen Idec Inc.a		30		2,052
Celgene Corp.a		53		2,814
Genzyme Corp.a		25		1,886
Human Genome Sciences Inc.a		22		551
Illumina Inc.a		14		972

40 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI USA INDEX FUND

February 28, 2011

Security	Shares		Value
Life Technologies Corp.a		20	$	1,067
Vertex Pharmaceuticals Inc.a		24		1,120
				16,763
BUILDING MATERIALS – 0.07%
Martin Marietta Materials Inc.		5		444
Masco Corp.		40		544
				988
CHEMICALS – 2.01%
Air Products and Chemicals Inc.		25		2,300
Airgas Inc.		8		501
Celanese Corp. Series A		16		663
CF Industries Holdings Inc.		8		1,130
Dow Chemical Co. (The)		130		4,831
E.I. du Pont de Nemours and Co.		103		5,652
Eastman Chemical Co.		8		747
Ecolab Inc.		26		1,265
FMC Corp.		8		619
International Flavors & Fragrances Inc.		9		513
Lubrizol Corp.		8		871
LyondellBasell Industries NV Class Aa		32		1,219
Mosaic Co. (The)		17		1,459
PPG Industries Inc.		20		1,768
Praxair Inc.		35		3,478
Sherwin-Williams Co. (The)		11		903
Sigma-Aldrich Corp.		9		575
				28,494
COAL – 0.32%
Alpha Natural Resources Inc.a		13		705
Arch Coal Inc.		18		603
CONSOL Energy Inc.		24		1,217
Peabody Energy Corp.		30		1,965
				4,490
COMMERCIAL SERVICES – 1.29%
Alliance Data Systems Corp.a		6		472
Apollo Group Inc. Class Aa		16		724
DeVry Inc.		7		380
Equifax Inc.		14		501
H&R Block Inc.		37		562
Iron Mountain Inc.		20		520
Lender Processing Services Inc.		11		375
Manpower Inc.		9		572

Security	Shares		Value
MasterCard Inc. Class A		11	$	2,646
McKesson Corp.		30		2,378
Moody’s Corp.		22		702
Pharmaceutical Product Development Inc.		12		330
Quanta Services Inc.a		23		525
R.R. Donnelley & Sons Co.		23		428
Robert Half International Inc.		16		510
SAIC Inc.a		44		719
Verisk Analytics Inc. Class Aa		12		388
Visa Inc. Class A		54		3,945
Western Union Co.		76		1,671
				18,348
COMPUTERS – 6.60%
Accenture PLC Class A		72		3,707
Apple Inc.a		102		36,027
Cognizant Technology Solutions Corp. Class Aa		33		2,537
Computer Sciences Corp.		17		818
Dell Inc.a		199		3,150
EMC Corp.a		231		6,286
Hewlett-Packard Co.		266		11,606
IHS Inc. Class Aa		5		418
International Business Machines Corp.		142		22,987
NetApp Inc.a		37		1,911
SanDisk Corp.a		25		1,240
Seagate Technology PLCa		55		698
Synopsys Inc.a		16		444
Teradata Corp.a		19		909
Western Digital Corp.a		25		764
				93,502
COSMETICS & PERSONAL CARE – 1.86%
Avon Products Inc.		48		1,335
Colgate-Palmolive Co.		52		4,083
Estee Lauder Companies Inc. (The) Class A		12		1,133
Procter & Gamble Co. (The)		314		19,798
				26,349
DISTRIBUTION & WHOLESALE – 0.20%
Fastenal Co.c		15		932
Genuine Parts Co.		18		948
W.W. Grainger Inc.		7		933
				2,813
DIVERSIFIED FINANCIAL SERVICES – 5.56%
American Express Co.		121		5,272

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI USA INDEX FUND

February 28, 2011

Security	Shares		Value
Ameriprise Financial Inc.		28	$	1,773
BlackRock Inc.b		10		2,040
Capital One Financial Corp.		53		2,638
Charles Schwab Corp. (The)		115		2,182
CIT Group Inc.a		22		953
Citigroup Inc.a		3,272		15,313
CME Group Inc.		8		2,490
Discover Financial Services		60		1,305
Eaton Vance Corp.		12		376
Franklin Resources Inc.		18		2,261
Goldman Sachs Group Inc. (The)		55		9,008
IntercontinentalExchange Inc.a		7		897
Invesco Ltd.		47		1,261
Jefferies Group Inc.		11		265
JPMorgan Chase & Co.		449		20,964
Legg Mason Inc.		18		652
Morgan Stanley		143		4,244
NASDAQ OMX Group Inc. (The)a		16		458
NYSE Euronext Inc.		29		1,073
SLM Corp.a		52		771
T. Rowe Price Group Inc.		30		2,009
TD Ameritrade Holding Corp.		29		632
				78,837
ELECTRIC – 2.85%
AES Corp. (The)a		74		915
Alliant Energy Corp.		12		473
Ameren Corp.		26		727
American Electric Power Co. Inc.		53		1,896
Calpine Corp.a		39		590
CenterPoint Energy Inc.		41		650
Consolidated Edison Inc.		33		1,649
Constellation Energy Group Inc.		20		621
Dominion Resources Inc.		69		3,149
DTE Energy Co.		18		847
Duke Energy Corp.		150		2,699
Edison International		34		1,262
Entergy Corp.		21		1,495
Exelon Corp.		76		3,174
FirstEnergy Corp.		46		1,762
Integrys Energy Group Inc.		8		392
MDU Resources Group Inc.		20		429
NextEra Energy Inc.		45		2,496
Northeast Utilities		19		647

Security	Shares		Value
NRG Energy Inc.a		28	$	560
NSTAR		12		542
Pepco Holdings Inc.		24		450
PG&E Corp.		41		1,888
Pinnacle West Capital Corp.		12		507
PPL Corp.		52		1,322
Progress Energy Inc.		31		1,417
Public Service Enterprise Group Inc.		56		1,831
SCANA Corp.		13		526
Southern Co.		91		3,468
Wisconsin Energy Corp.		13		770
Xcel Energy Inc.		50		1,197
				40,351
ELECTRICAL COMPONENTS & EQUIPMENT – 0.45%
AMETEK Inc.		18		755
Emerson Electric Co.		86		5,131
Energizer Holdings Inc.a		7		468
				6,354
ELECTRONICS – 0.79%
Agilent Technologies Inc.a		38		1,599
Amphenol Corp. Class A		19		1,092
Arrow Electronics Inc.a		13		510
Avnet Inc.a		17		582
Dolby Laboratories Inc. Class Aa		6		303
Flextronics International Ltd.a		90		728
FLIR Systems Inc.		17		549
Garmin Ltd.		13		441
Thermo Fisher Scientific Inc.a		47		2,624
Tyco Electronics Ltd.		51		1,838
Waters Corp.a		12		997
				11,263
ENERGY – ALTERNATE SOURCES – 0.06%
First Solar Inc.a		6		884
				884
ENGINEERING & CONSTRUCTION – 0.26%
Fluor Corp.		20		1,415
Foster Wheeler AGa		14		506
Jacobs Engineering Group Inc.a		14		701
KBR Inc.		18		590
URS Corp.a		9		419
				3,631

42 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI USA INDEX FUND

February 28, 2011

Security	Shares		Value
ENTERTAINMENT – 0.04%
International Game Technology		33	$	543
				543
ENVIRONMENTAL CONTROL – 0.25%
Republic Services Inc.		42		1,244
Stericycle Inc.a		3		259
Waste Management Inc.		54		2,001
				3,504
FOOD – 1.77%
Campbell Soup Co.		23		774
ConAgra Foods Inc.		49		1,135
General Mills Inc.		76		2,823
H.J. Heinz Co.		35		1,758
Hershey Co. (The)		18		942
Hormel Foods Corp.		16		438
J.M. Smucker Co. (The)		13		895
Kellogg Co.		31		1,660
Kraft Foods Inc. Class A		198		6,304
Kroger Co. (The)		70		1,603
McCormick & Co. Inc. NVS		13		619
Ralcorp Holdings Inc.a		6		389
Safeway Inc.		45		982
Sara Lee Corp.		73		1,250
Sysco Corp.		69		1,918
Tyson Foods Inc. Class A		32		596
Whole Foods Market Inc.		16		937
				25,023
FOREST PRODUCTS & PAPER – 0.32%
International Paper Co.		45		1,250
MeadWestvaco Corp.		19		558
Plum Creek Timber Co. Inc.		18		755
Rayonier Inc.		9		552
Weyerhaeuser Co.		60		1,465
				4,580
GAS – 0.17%
Energen Corp.		8		489
NiSource Inc.		30		575
Sempra Energy		26		1,384
				2,448
HAND & MACHINE TOOLS – 0.09%
Stanley Black & Decker Inc.		17		1,289
				1,289

Security	Shares		Value
HEALTH CARE – PRODUCTS – 3.25%
Baxter International Inc.		68	$	3,614
Beckman Coulter Inc.		8		665
Becton, Dickinson and Co.		26		2,080
Boston Scientific Corp.a		167		1,196
C.R. Bard Inc.		11		1,075
CareFusion Corp.a		21		574
Covidien PLC		58		2,984
DENTSPLY International Inc.		8		299
Edwards Lifesciences Corp.a		14		1,190
Henry Schein Inc.a		6		414
Hologic Inc.a		28		565
Intuitive Surgical Inc.a		4		1,312
Johnson & Johnson		300		18,432
Medtronic Inc.		126		5,030
Patterson Companies Inc.		10		334
St. Jude Medical Inc.a		37		1,771
Stryker Corp.		33		2,088
Varian Medical Systems Inc.a		14		970
Zimmer Holdings Inc.a		24		1,496
				46,089
HEALTH CARE – SERVICES – 1.09%
Aetna Inc.		48		1,793
Covance Inc.a		7		395
Coventry Health Care Inc.a		16		483
DaVita Inc.a		11		873
Humana Inc.a		19		1,235
Laboratory Corp. of America Holdingsa		12		1,082
Quest Diagnostics Inc.		17		965
UnitedHealth Group Inc.		132		5,621
WellPoint Inc.a		45		2,991
				15,438
HOLDING COMPANIES – DIVERSIFIED – 0.05%
Leucadia National Corp.		21		696
				696
HOME BUILDERS – 0.05%
D.R. Horton Inc.		32		379
Toll Brothers Inc.a		15		319
				698
HOME FURNISHINGS – 0.05%
Whirlpool Corp.		9		743
				743

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI USA INDEX FUND

February 28, 2011

Security	Shares		Value
HOUSEHOLD PRODUCTS & WARES – 0.41%
Avery Dennison Corp.		11	$	439
Church & Dwight Co. Inc.		8		604
Clorox Co. (The)		15		1,016
Fortune Brands Inc.		17		1,052
Kimberly-Clark Corp.		41		2,702
				5,813
HOUSEWARES – 0.04%
Newell Rubbermaid Inc.		31		600
				600
INSURANCE – 3.56%
ACE Ltd.		39		2,467
Aflac Inc.		53		3,120
Allstate Corp. (The)		57		1,811
American International Group Inc.a,c		13		482
Aon Corp.		27		1,421
Arch Capital Group Ltd.a		1		91
Assurant Inc.		13		528
Axis Capital Holdings Ltd.		15		545
Berkshire Hathaway Inc. Class Ba		93		8,117
Chubb Corp. (The)		38		2,306
CIGNA Corp.		30		1,262
Cincinnati Financial Corp.		17		579
Everest Re Group Ltd.		7		621
Fidelity National Financial Inc. Class A		24		332
Genworth Financial Inc. Class Aa		54		714
Hartford Financial Services Group Inc. (The)		46		1,362
Lincoln National Corp.		33		1,047
Loews Corp.		38		1,643
Marsh & McLennan Companies Inc.		58		1,766
MetLife Inc.		101		4,783
Old Republic International Corp.		27		337
PartnerRe Ltd.		7		555
Principal Financial Group Inc.		35		1,199
Progressive Corp. (The)		71		1,479
Prudential Financial Inc.		53		3,489
RenaissanceRe Holdings Ltd.		7		469
Torchmark Corp.		9		587
Transatlantic Holdings Inc.		7		357
Travelers Companies Inc. (The)		53		3,176
Unum Group		37		982
Validus Holdings Ltd.		10		309
W.R. Berkley Corp.		16		479

Security	Shares		Value
White Mountains Insurance Group Ltd.		1	$	380
Willis Group Holdings PLCc		19		739
XL Group PLC		38		887
				50,421
INTERNET – 2.83%
Akamai Technologies Inc.a		19		713
Amazon.com Inc.a		40		6,931
eBay Inc.a		134		4,490
Expedia Inc.		22		437
F5 Networks Inc.a		9		1,062
Google Inc. Class Aa		27		16,562
Liberty Media Corp. – Liberty Interactive Group Series Aa		63		1,012
McAfee Inc.a		17		815
Netflix Inc.a		5		1,033
Priceline.com Inc.a		5		2,269
Symantec Corp.a		90		1,623
VeriSign Inc.		21		741
Yahoo! Inc.a		144		2,362
				40,050
IRON & STEEL – 0.33%
Allegheny Technologies Inc.		10		671
Cliffs Natural Resources Inc.		15		1,456
Nucor Corp.		35		1,678
United States Steel Corp.		16		920
				4,725
LEISURE TIME – 0.28%
Carnival Corp.		54		2,304
Harley-Davidson Inc.		26		1,061
Royal Caribbean Cruises Ltd.a		15		657
				4,022
LODGING – 0.42%
Las Vegas Sands Corp.a		36		1,679
Marriott International Inc. Class A		33		1,294
MGM Resorts Internationala		29		404
Starwood Hotels & Resorts Worldwide Inc.		21		1,283
Wynn Resorts Ltd.		10		1,230
				5,890
MACHINERY – 1.30%
AGCO Corp.a		10		548
Bucyrus International Inc.		9		819
Caterpillar Inc.		71		7,308

44 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI USA INDEX FUND

February 28, 2011

Security	Shares		Value
Cummins Inc.		23	$	2,326
Deere & Co.		47		4,237
Flowserve Corp.		6		750
Joy Global Inc.		11		1,071
Rockwell Automation Inc.		16		1,404
				18,463
MANUFACTURING – 4.11%
3M Co.		76		7,009
Cooper Industries PLC		19		1,223
Danaher Corp.		64		3,238
Dover Corp.		21		1,349
Eaton Corp.		19		2,105
General Electric Co.		1,206		25,229
Honeywell International Inc.		83		4,807
Illinois Tool Works Inc.		50		2,705
Ingersoll-Rand PLC		38		1,721
ITT Corp.		19		1,101
Leggett & Platt Inc.		16		369
Pall Corp.		13		707
Parker Hannifin Corp.		18		1,605
Pentair Inc.		10		371
Roper Industries Inc.		10		841
SPX Corp.		5		399
Textron Inc.		30		813
Tyco International Ltd.		59		2,675
				58,267
MEDIA – 3.13%
Cablevision NY Group Class A		27		995
CBS Corp. Class B NVS		71		1,694
Comcast Corp. Class A		222		5,719
Comcast Corp. Class A Special		87		2,116
DIRECTV Class Aa		103		4,735
Discovery Communications Inc. Series Aa		15		647
Discovery Communications Inc. Series Ca		16		609
DISH Network Corp. Class Aa		2		46
Liberty Global Inc. Series Aa		14		589
Liberty Global Inc. Series Ca		13		519
McGraw-Hill Companies Inc. (The)		35		1,354
News Corp. Class A NVS		208		3,613
News Corp. Class B		49		902
Scripps Networks Interactive Inc. Class A		10		519
Time Warner Cable Inc.		41		2,959
Time Warner Inc.		129		4,928

Security	Shares		Value
Viacom Inc. Class B NVS		64	$	2,858
Walt Disney Co. (The)		207		9,054
Washington Post Co. (The) Class B		1		433
				44,289
METAL FABRICATE & HARDWARE – 0.16%
Precision Castparts Corp.		16		2,268
				2,268
MINING – 0.80%
Alcoa Inc.		117		1,971
Freeport-McMoRan Copper & Gold Inc.		108		5,719
Newmont Mining Corp.		55		3,040
Vulcan Materials Co.c		14		642
				11,372
OFFICE & BUSINESS EQUIPMENT – 0.15%
Pitney Bowes Inc.		23		579
Xerox Corp.		148		1,591
				2,170
OIL & GAS – 10.16%
Anadarko Petroleum Corp.		56		4,582
Apache Corp.		43		5,359
Cabot Oil & Gas Corp.		11		502
Chesapeake Energy Corp.		74		2,635
Chevron Corp.		226		23,447
Cimarex Energy Co.		9		1,045
Concho Resources Inc.a		10		1,065
ConocoPhillips		160		12,459
Denbury Resources Inc.a		42		1,018
Devon Energy Corp.		49		4,481
Diamond Offshore Drilling Inc.		8		626
EOG Resources Inc.		29		3,257
EQT Corp.		15		739
Exxon Mobil Corp.		568		48,581
Helmerich & Payne Inc.		12		780
Hess Corp.		33		2,872
Marathon Oil Corp.		82		4,067
Murphy Oil Corp.		20		1,471
Nabors Industries Ltd.a		31		883
Newfield Exploration Co.a		15		1,092
Noble Corp.		29		1,297
Noble Energy Inc.		21		1,946
Occidental Petroleum Corp.		92		9,381
Petrohawk Energy Corp.a		33		713

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI USA INDEX FUND

February 28, 2011

Security	Shares		Value
Pioneer Natural Resources Co.		13	$	1,330
Plains Exploration & Production Co.a		15		588
Pride International Inc.a		19		789
QEP Resources Inc.		19		751
Range Resources Corp.		20		1,086
Rowan Companies Inc.a		13		555
Southwestern Energy Co.a		38		1,500
Sunoco Inc.		13		544
Ultra Petroleum Corp.a		17		771
Valero Energy Corp.		62		1,747
				143,959
OIL & GAS SERVICES – 2.24%
Baker Hughes Inc.		50		3,552
Cameron International Corp.a		27		1,596
FMC Technologies Inc.a		13		1,223
Halliburton Co.		104		4,882
National Oilwell Varco Inc.		49		3,899
Schlumberger Ltd.		156		14,574
Weatherford International Ltd.a		83		2,007
				31,733
PACKAGING & CONTAINERS – 0.18%
Ball Corp.		20		722
Crown Holdings Inc.a		18		693
Owens-Illinois Inc.a		19		579
Sealed Air Corp.		18		495
				2,489
PHARMACEUTICALS – 4.81%
Abbott Laboratories		175		8,418
Allergan Inc.		34		2,522
AmerisourceBergen Corp.		32		1,213
Bristol-Myers Squibb Co.		194		5,007
Cardinal Health Inc.		40		1,666
Cephalon Inc.a		8		450
Eli Lilly and Co.		117		4,044
Express Scripts Inc.a		52		2,923
Forest Laboratories Inc.a		33		1,069
Gilead Sciences Inc.a		94		3,664
Hospira Inc.a		18		951
Mead Johnson Nutrition Co. Class A		23		1,377
Medco Health Solutions Inc.a		53		3,267
Merck & Co. Inc.		346		11,269
Mylan Inc.a		34		778

Security	Shares		Value
Omnicare Inc.		13	$	372
Perrigo Co.		9		688
Pfizer Inc.		914		17,585
Warner Chilcott PLC Class A		12		284
Watson Pharmaceuticals Inc.a		11		616
				68,163
PIPELINES – 0.48%
El Paso Corp.		77		1,432
Kinder Morgan Management LLCa		9		591
ONEOK Inc.		11		710
Spectra Energy Corp.		73		1,953
Williams Companies Inc. (The)		69		2,095
				6,781
REAL ESTATE – 0.06%
CB Richard Ellis Group Inc. Class Aa		33		826
				826
REAL ESTATE INVESTMENT TRUSTS – 1.69%
AMB Property Corp.		18		655
Annaly Capital Management Inc.		75		1,345
AvalonBay Communities Inc.		9		1,089
Boston Properties Inc.		17		1,631
Duke Realty Corp.		25		352
Equity Residential		31		1,708
Federal Realty Investment Trust		7		589
General Growth Properties Inc.a		49		780
HCP Inc.		32		1,216
Health Care REIT Inc.		14		731
Host Hotels & Resorts Inc.		70		1,288
Kimco Realty Corp.		44		853
Liberty Property Trust		12		405
Macerich Co. (The)		15		760
ProLogis		52		846
Public Storage		17		1,908
Regency Centers Corp.		10		452
Simon Property Group Inc.		38		4,182
Ventas Inc.		17		942
Vornado Realty Trust		24		2,240
				23,972
RETAIL – 5.65%
Abercrombie & Fitch Co. Class A		10		574
Advance Auto Parts Inc.		10		627
American Eagle Outfitters Inc.		21		322

46 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI USA INDEX FUND

February 28, 2011

Security	Shares		Value
AutoZone Inc.a		3	$	774
Bed Bath & Beyond Inc.a		29		1,396
Best Buy Co. Inc.		40		1,290
CarMax Inc.a		25		884
Chipotle Mexican Grill Inc.a		3		735
Costco Wholesale Corp.		44		3,291
CVS Caremark Corp.		157		5,190
Darden Restaurants Inc.		15		707
Dollar General Corp.a		10		282
Dollar Tree Inc.a		15		755
Family Dollar Stores Inc.		15		751
GameStop Corp. Class Aa		17		339
Gap Inc. (The)		54		1,217
Home Depot Inc. (The)		193		7,232
J.C. Penney Co. Inc.		23		804
Kohl’s Corp.a		34		1,832
Limited Brands Inc.		30		961
Lowe’s Companies Inc.		165		4,318
Macy’s Inc.		47		1,123
McDonald’s Corp.		122		9,233
Nordstrom Inc.		22		996
O’Reilly Automotive Inc.a		15		834
PetSmart Inc.		14		572
Ross Stores Inc.		14		1,009
Sears Holdings Corp.a,c		5		417
Staples Inc.		82		1,747
Starbucks Corp.		86		2,836
Target Corp.		81		4,256
Tiffany & Co.		14		862
TJX Companies Inc. (The)		47		2,344
Urban Outfitters Inc.a		14		537
Wal-Mart Stores Inc.		223		11,591
Walgreen Co.		112		4,854
Yum! Brands Inc.		52		2,617
				80,109
SAVINGS & LOANS – 0.11%
Hudson City Bancorp Inc.		20		230
New York Community Bancorp Inc.		44		821
People’s United Financial Inc.		41		540
				1,591
SEMICONDUCTORS – 2.64%
Advanced Micro Devices Inc.a		63		580
Altera Corp.		33		1,381

Security	Shares		Value
Analog Devices Inc.		32	$	1,276
Applied Materials Inc.		151		2,481
Avago Technologies Ltd.		18		612
Broadcom Corp. Class A		51		2,102
Cree Inc.a		11		579
Intel Corp.		625		13,419
KLA-Tencor Corp.		19		928
Lam Research Corp.a		14		769
Linear Technology Corp.		25		864
LSI Corp.a		72		453
Marvell Technology Group Ltd.a		58		1,060
Maxim Integrated Products Inc.		34		938
MEMC Electronic Materials Inc.a		25		339
Microchip Technology Inc.		20		738
Micron Technology Inc.a		94		1,046
National Semiconductor Corp.		26		403
NVIDIA Corp.a		61		1,382
Texas Instruments Inc.		142		5,057
Xilinx Inc.		31		1,031
				37,438
SOFTWARE – 4.14%
Activision Blizzard Inc.a		63		700
Adobe Systems Inc.a		58		2,001
Autodesk Inc.a		25		1,051
Automatic Data Processing Inc.		50		2,500
BMC Software Inc.a		20		990
CA Inc.		46		1,140
Cerner Corp.a		8		804
Citrix Systems Inc.a		20		1,403
Dun & Bradstreet Corp. (The)		6		485
Electronic Arts Inc.a		36		677
Fidelity National Information Services Inc.		35		1,134
Fiserv Inc.a		17		1,076
Intuit Inc.a		33		1,735
Microsoft Corp.		859		22,832
Nuance Communications Inc.a		23		429
Oracle Corp.		454		14,937
Paychex Inc.		22		740
Red Hat Inc.a		21		867
Salesforce.com Inc.a		14		1,852
SEI Investments Co.		15		345

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI USA INDEX FUND

February 28, 2011

Security	Shares		Value
Total System Services Inc.		19	$	337
VMware Inc. Class Aa		8		669
				58,704
TELECOMMUNICATIONS – 5.34%
American Tower Corp. Class Aa		47		2,536
AT&T Inc.		668		18,958
CenturyLink Inc.		33		1,359
Cisco Systems Inc.a		647		12,008
Corning Inc.		176		4,059
Crown Castle International Corp.a		32		1,349
Frontier Communications Corp.		110		934
Harris Corp.		15		700
Juniper Networks Inc.a		58		2,552
MetroPCS Communications Inc.a		27		389
Motorola Mobility Holdings Inc.a		32		966
Motorola Solutions Inc.a		37		1,430
NII Holdings Inc.a		18		737
QUALCOMM Inc.		180		10,724
Qwest Communications International Inc.		172		1,173
SBA Communications Corp. Class Aa		12		505
Sprint Nextel Corp.a		333		1,455
Telephone and Data Systems Inc.		6		202
Verizon Communications Inc.		322		11,888
Virgin Media Inc.		36		981
Windstream Corp.		61		765
				75,670
TEXTILES – 0.05%
Cintas Corp.		15		422
Mohawk Industries Inc.a		6		348
				770
TOYS, GAMES & HOBBIES – 0.12%
Hasbro Inc.		14		629
Mattel Inc.		40		1,002
				1,631
TRANSPORTATION – 1.66%
C.H. Robinson Worldwide Inc.		19		1,375
CSX Corp.		45		3,360
Expeditors International of Washington Inc.		26		1,243
FedEx Corp.		34		3,060
J.B. Hunt Transport Services Inc.		10		416
Norfolk Southern Corp.		41		2,689
Union Pacific Corp.		58		5,534

Security	Shares		Value
United Parcel Service Inc. Class B		80	$	5,904
				23,581
WATER – 0.04%
American Water Works Co. Inc.		19		527
				527
TOTAL COMMON STOCKS
(Cost: $1,239,192)				1,415,040
SHORT-TERM INVESTMENTS – 0.35%
MONEY MARKET FUNDS – 0.35%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%b,d,e		2,540		2,540
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%b,d,e		365		365
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%b,d		2,056		2,056
				4,961
TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,961)				4,961
TOTAL INVESTMENTS IN SECURITIES – 100.20%
(Cost: $1,244,153)				1,420,001
Other Assets, Less Liabilities – (0.20)%				(2,883)
NET ASSETS – 100.00%			$	1,417,118

NVS – Non-Voting Shares

^a  Non-income earning security.

^b  Affiliated issuer. See Note 2.

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

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

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

See notes to financial statements.

48 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2011

	iShares MSCI Brazil Index Fund			iShares MSCI BRIC Index Fund			iShares MSCI Canada Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	7,816,538,966		$	997,805,429		$	4,937,503,862
Affiliated issuers (Note 2)		8,169,947			26,870,916			13,445,072
Total cost of investments	$	7,824,708,913		$	1,024,676,345		$	4,950,948,934
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	12,616,781,669		$	1,159,618,046		$	5,775,875,111
Affiliated issuers (Note 2)		8,169,947			26,870,916			13,445,072
Total fair value of investments		12,624,951,616			1,186,488,962			5,789,320,183
Foreign currencies, at valueb		36,066,829			2,038,309			5,265,061
Receivables:
Investment securities sold		135,129,246			13,127,123			64,197,221
Dividends and interest		38,634,387			1,229,397			4,780,703
Capital shares sold		–			–			285,185
Total Assets		12,834,782,078			1,202,883,791			5,863,848,353
LIABILITIES
Payables:
Investment securities purchased		142,156,433			13,279,885			64,907,492
Collateral for securities on loan (Note 5)		–			26,766,391			10,018,055
Investment advisory fees (Note 2)		5,589,014			600,779			2,122,598
Total Liabilities		147,745,447			40,647,055			77,048,145
NET ASSETS	$	12,687,036,631		$	1,162,236,736		$	5,786,800,208
Net assets consist of:
Paid-in capital	$	8,895,783,509		$	1,048,275,022		$	5,163,111,511
Undistributed (distributions in excess of) net investment income		(337,681,853	)		(6,107,749	)		3,756,701
Accumulated net realized loss		(673,766,715	)		(41,830,577	)		(218,539,828	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		4,802,701,690			161,900,040			838,471,824
NET ASSETS	$	12,687,036,631		$	1,162,236,736		$	5,786,800,208
Shares outstandingc		171,750,000			24,350,000			172,500,000
Net asset value per share	$	73.87		$	47.73		$	33.55

^a  Securities on loan with values of $ –, $25,136,695 and $9,529,731, respectively. See Note 5.

^b  Cost of foreign currencies: $35,889,187, $2,027,241 and $5,197,593, respectively.

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

See notes to financial statements.

FINANCIAL STATEMENTS 49

Statements of Assets and Liabilities (Unaudited)(Continued)

iSHARES^®, INC.

February 28, 2011

	iShares MSCI Chile Investable Market Index Fund			iShares MSCI Israel Capped Investable Market Index Fund			iShares MSCI Mexico Investable Market Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	677,378,704		$	131,137,628		$	1,385,623,088
Affiliated issuers (Note 2)		1,254,477			1,368,976			63,372,183
Total cost of investments	$	678,633,181		$	132,506,604		$	1,448,995,271
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	873,659,945		$	121,583,668		$	1,480,372,614
Affiliated issuers (Note 2)		1,254,477			1,368,976			63,372,183
Total fair value of investments		874,914,422			122,952,644			1,543,744,797
Foreign currencies, at valueb		–			272,407			1,360,689
Cash		813,205			–			–
Receivables:
Investment securities sold		3,153,447			3,616,742			6,500,337
Due from custodian (Note 4)		–			316,960			–
Dividends and interest		16,562			7,621			62,307
Total Assets		878,897,636			127,166,374			1,551,668,130
LIABILITIES
Payables:
Investment securities purchased		5,560,549			3,871,065			7,024,895
Collateral for securities on loan (Note 5)		–			1,351,311			62,803,892
Capital shares redeemed		–			83,854			–
Investment advisory fees (Note 2)		399,174			61,278			605,027
Total Liabilities		5,959,723			5,367,508			70,433,814
NET ASSETS	$	872,937,913		$	121,798,866		$	1,481,234,316
Net assets consist of:
Paid-in capital	$	702,872,122		$	147,756,018		$	1,378,471,760
Undistributed (distributions in excess of) net investment income		1,785,804			(330,690	)		(2,105,707	)
Undistributed net realized gain (accumulated net realized loss)		(28,006,146	)		(16,073,821	)		10,123,302
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		196,286,133			(9,552,641	)		94,744,961
NET ASSETS	$	872,937,913		$	121,798,866		$	1,481,234,316
Shares outstandingc		12,550,000			2,150,000			24,300,000
Net asset value per share	$	69.56		$	56.65		$	60.96

^a  Securities on loan with values of $ –, $1,277,307 and $59,570,946, respectively. See Note 5.

^b  Cost of foreign currencies: $ –, $271,000 and $1,365,666, respectively.

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

See notes to financial statements.

50 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)(Continued)

iSHARES^®, INC.

February 28, 2011

	iShares MSCI South Africa Index Fund			iShares MSCI Turkey Investable Market Index Fund			iShares MSCI USA Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	582,870,102		$	557,268,543		$	1,233,498
Affiliated issuers (Note 2)		1,898,852			45,824,469			10,655
Total cost of investments	$	584,768,954		$	603,093,012		$	1,244,153
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	610,548,428		$	506,416,467		$	1,409,360
Affiliated issuers (Note 2)		1,898,852			45,824,469			10,641
Total fair value of investments		612,447,280			552,240,936			1,420,001
Foreign currencies, at valueb		662,640			353,604			–
Receivables:
Investment securities sold		2,014,135			4,911,557			–
Dividends and interest		7,340			49,527			2,843
Capital shares sold		–			202,617			–
Total Assets		615,131,395			557,758,241			1,422,844
LIABILITIES
Payables:
Investment securities purchased		2,097,184			6,457,164			2,659
Collateral for securities on loan (Note 5)		1,768,348			44,504,287			2,905
Capital shares redeemed		3,750			–			–
Investment advisory fees (Note 2)		279,756			262,423			162
Total Liabilities		4,149,038			51,223,874			5,726
NET ASSETS	$	610,982,357		$	506,534,367		$	1,417,118
Net assets consist of:
Paid-in capital	$	607,443,314		$	500,077,019		$	1,220,478
Undistributed (distributions in excess of) net investment income (accumulated net investment loss)		(6,639,512	)		(6,108,359	)		4,228
Undistributed net realized gain (accumulated net realized loss)		(17,505,910	)		63,418,291			16,564
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		27,684,465			(50,852,584	)		175,848
NET ASSETS	$	610,982,357		$	506,534,367		$	1,417,118
Shares outstandingc		8,800,000			8,650,000			50,000
Net asset value per share	$	69.43		$	58.56		$	28.34

^a  Securities on loan with values of $1,682,718, $42,009,584 and $2,844, respectively. See Note 5.

^b  Cost of foreign currencies: $648,422, $354,268 and $ –, respectively.

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

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2011

	iShares MSCI Brazil Index Fund		iShares MSCI BRIC Index Fund			iShares MSCI Canada Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	131,213,835	$	7,551,150		$	50,852,347
Interest from affiliated issuers (Note 2)		10,271		614			1,970
Securities lending income from affiliated issuers (Note 2)		1,392		299,759			68,000
Total investment income		131,225,498		7,851,523			50,922,317
EXPENSES
Investment advisory fees (Note 2)		33,799,907		3,730,035			11,302,817
Total expenses		33,799,907		3,730,035			11,302,817
Less investment advisory fees waived (Note 2)		–		(31,041	)		–
Net expenses		–		3,698,994			–
Net investment income		97,425,591		4,152,529			39,619,500
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		10,855,355		(10,265,698	)		(50,638,624	)
In-kind redemptions		–		–			25,133,226
Foreign currency transactions		3,811,433		(155,805	)		379,522
Net realized gain (loss)		14,666,788		(10,421,503	)		(25,125,876	)
Net change in unrealized appreciation/depreciation on:
Investments		971,766,931		120,515,141			1,123,051,528
Translation of assets and liabilities in foreign currencies		1,204,803		124,579			296,137
Net change in unrealized appreciation/depreciation		972,971,734		120,639,720			1,123,347,665
Net realized and unrealized gain		987,638,522		110,218,217			1,098,221,789
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,085,064,113	$	114,370,746		$	1,137,841,289

^a Net of foreign withholding tax of $16,153,788, $785,343 and $7,754,602, respectively.

See notes to financial statements.

52 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2011

	iShares MSCI Chile Investable Market Index Fund			iShares MSCI Israel Capped Investable Market Index Fund			iShares MSCI Mexico Investable Market Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	4,865,665		$	1,978,171		$	8,215,512
Interest from affiliated issuers (Note 2)		678			57			317
Securities lending income from affiliated issuers (Note 2)		–			31,933			305,787
Total investment income		4,866,343			2,010,161			8,521,616
EXPENSES
Investment advisory fees (Note 2)		2,665,552			404,822			4,179,996
Total expenses		2,665,552			404,822			4,179,996
Net investment income		2,200,791			1,605,339			4,341,620
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(1,499,905	)		(808,000	)		(13,959,574	)
In-kind redemptions		–			4,492,387			84,395,945
Foreign currency transactions		(23,177	)		23,299			106,048
Net realized gain (loss)		(1,523,082	)		3,707,686			70,542,419
Net change in unrealized appreciation/depreciation on:
Investments		12,542,279			14,359,849			304,465,829
Translation of assets and liabilities in foreign currencies		5,369			1,475			61,920
Net change in unrealized appreciation/depreciation		12,547,648			14,361,324			304,527,749
Net realized and unrealized gain		11,024,566			18,069,010			375,070,168
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	13,225,357		$	19,674,349		$	379,411,788

^a Net of foreign withholding tax of $2,348,188, $411,753 and $ –, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 53

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2011

	iShares MSCI South Africa Index Fund			iShares MSCI Turkey Investable Market Index Fund			iShares MSCI USA Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	8,225,230		$	247,868		$	18,624
Dividends from affiliated issuers (Note 2)		–			–			28
Interest from affiliated issuers (Note 2)		196			313			–
Securities lending income from affiliated issuers (Note 2)		49,649			333,114			30
Total investment income		8,275,075			581,295			18,682
EXPENSES
Investment advisory fees (Note 2)		1,905,266			2,323,147			1,371
Total expenses		1,905,266			2,323,147			1,371
Net investment income (loss)		6,369,809			(1,741,852	)		17,311
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(3,181,749	)		(3,010,882	)		(1,613	)
Investments in affiliated issuers (Note 2)		–			–			(662	)
In-kind redemptions		34,998,876			81,076,863			21,273
Foreign currency transactions		49,772			40,595			–
Net realized gain		31,866,899			78,106,576			18,998
Net change in unrealized appreciation/depreciation on:
Investments		63,834,398			(103,417,727	)		422,452
Translation of assets and liabilities in foreign currencies		5,470			(7,165	)		–
Net change in unrealized appreciation/depreciation		63,839,868			(103,424,892	)		422,452
Net realized and unrealized gain (loss)		95,706,767			(25,318,316	)		441,450
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	102,076,576		$	(27,060,168	)	$	458,761

^a Net of foreign withholding tax of $ –, $43,741 and $ –, respectively.

See notes to financial statements.

54 2011 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, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	97,425,591		$	228,419,252		$	4,152,529		$	12,434,508
Net realized gain (loss)		14,666,788			372,816,382			(10,421,503	)		(12,482,457	)
Net change in unrealized appreciation/depreciation		972,971,734			1,246,032,535			120,639,720			63,820,880
Net increase in net assets resulting from operations		1,085,064,113			1,847,268,169			114,370,746			63,772,931
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(391,280,802	)		(384,786,885	)		(10,878,230	)		(12,829,123	)
Total distributions to shareholders		(391,280,802	)		(384,786,885	)		(10,878,230	)		(12,829,123	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		2,752,800,804			6,659,059			111,929,766			398,031,773
Cost of shares redeemed		–			(1,006,054,310	)		–			–
Net increase (decrease) in net assets from capital share transactions		2,752,800,804			(999,395,251	)		111,929,766			398,031,773
INCREASE IN NET ASSETS		3,446,584,115			463,086,033			215,422,282			448,975,581
NET ASSETS
Beginning of period		9,240,452,516			8,777,366,483			946,814,454			497,838,873
End of period	$	12,687,036,631		$	9,240,452,516		$	1,162,236,736		$	946,814,454
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(337,681,853	)	$	(43,826,642	)	$	(6,107,749	)	$	617,952
SHARES ISSUED AND REDEEMED
Shares sold		36,000,000			100,000			2,300,000			8,800,000
Shares redeemed		–			(15,000,000	)		–			–
Net increase (decrease) in shares outstanding		36,000,000			(14,900,000	)		2,300,000			8,800,000

See notes to financial statements.

FINANCIAL STATEMENTS 55

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, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	39,619,500		$	51,900,908		$	2,200,791		$	3,713,462
Net realized gain (loss)		(25,125,876	)		109,004,495			(1,523,082	)		(2,840,935	)
Net change in unrealized appreciation/depreciation		1,123,347,665			93,342,915			12,547,648			149,610,800
Net increase in net assets resulting from operations		1,137,841,289			254,248,318			13,225,357			150,483,327
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(47,100,095	)		(50,623,009	)		(414,987	)		(4,266,725	)
Return of capital		–			–			–			(214,415	)
Total distributions to shareholders		(47,100,095	)		(50,623,009	)		(414,987	)		(4,481,140	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,359,661,556			1,858,101,617			251,058,874			378,631,231
Cost of shares redeemed		(110,845,039	)		(1,008,121,985	)		(61,281,737	)		(117,487,891	)
Net increase in net assets from capital share transactions		1,248,816,517			849,979,632			189,777,137			261,143,340
INCREASE IN NET ASSETS		2,339,557,711			1,053,604,941			202,587,507			407,145,527
NET ASSETS
Beginning of period		3,447,242,497			2,393,637,556			670,350,406			263,204,879
End of period	$	5,786,800,208		$	3,447,242,497		$	872,937,913		$	670,350,406
Undistributed net investment income included in net assets at end of period	$	3,756,701		$	11,237,296		$	1,785,804		$	–
SHARES ISSUED AND REDEEMED
Shares sold		44,200,000			69,800,000			3,450,000			6,350,000
Shares redeemed		(3,800,000	)		(38,700,000	)		(850,000	)		(2,300,000	)
Net increase in shares outstanding		40,400,000			31,100,000			2,600,000			4,050,000

See notes to financial statements.

56 2011 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, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,605,339		$	4,797,060		$	4,341,620		$	17,453,662
Net realized gain		3,707,686			70,349			70,542,419			29,433,811
Net change in unrealized appreciation/depreciation		14,361,324			(1,531,719	)		304,527,749			(1,696,792	)
Net increase in net assets resulting from operations		19,674,349			3,335,690			379,411,788			45,190,681
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,172,730	)		(5,130,542	)		(8,422,387	)		(18,506,573	)
Total distributions to shareholders		(2,172,730	)		(5,130,542	)		(8,422,387	)		(18,506,573	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		26,222,053			136,885,872			145,174,024			1,412,598,195
Cost of shares redeemed		(50,397,510	)		(114,410,341	)		(484,967,680	)		(683,521,351	)
Net increase (decrease) in net assets from capital share transactions		(24,175,457	)		22,475,531			(339,793,656	)		729,076,844
INCREASE (DECREASE) IN NET ASSETS		(6,673,838	)		20,680,679			31,195,745			755,760,952
NET ASSETS
Beginning of period		128,472,704			107,792,025			1,450,038,571			694,277,619
End of period	$	121,798,866		$	128,472,704		$	1,481,234,316		$	1,450,038,571
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(330,690	)	$	236,701		$	(2,105,707	)	$	1,975,060
SHARES ISSUED AND REDEEMED
Shares sold		450,000			2,550,000			2,600,000			28,100,000
Shares redeemed		(900,000	)		(2,250,000	)		(8,400,000	)		(14,300,000	)
Net increase (decrease) in shares outstanding		(450,000	)		300,000			(5,800,000	)		13,800,000

See notes to financial statements.

FINANCIAL STATEMENTS 57

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, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	6,369,809		$	10,783,825		$	(1,741,852	)	$	7,418,467
Net realized gain		31,866,899			30,902,311			78,106,576			25,274,469
Net change in unrealized appreciation/depreciation		63,839,868			23,527,386			(103,424,892	)		46,433,957
Net increase (decrease) in net assets resulting from operations		102,076,576			65,213,522			(27,060,168	)		79,126,893
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(14,254,057	)		(12,009,132	)		(3,808,549	)		(8,702,771	)
Total distributions to shareholders		(14,254,057	)		(12,009,132	)		(3,808,549	)		(8,702,771	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		174,104,575			215,358,696			290,112,506			471,556,198
Cost of shares redeemed		(156,135,475	)		(252,100,617	)		(354,697,561	)		(182,426,990	)
Net increase (decrease) in net assets from capital share transactions		17,969,100			(36,741,921	)		(64,585,055	)		289,129,208
INCREASE (DECREASE) IN NET ASSETS		105,791,619			16,462,469			(95,453,772	)		359,553,330
NET ASSETS
Beginning of period		505,190,738			488,728,269			601,988,139			242,434,809
End of period	$	610,982,357		$	505,190,738		$	506,534,367		$	601,988,139
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	(6,639,512	)	$	1,244,736		$	(6,108,359	)	$	(557,958	)
SHARES ISSUED AND REDEEMED
Shares sold		2,500,000			3,800,000			4,200,000			8,350,000
Shares redeemed		(2,300,000	)		(4,600,000	)		(5,450,000	)		(3,500,000	)
Net increase (decrease) in shares outstanding		200,000			(800,000	)		(1,250,000	)		4,850,000

See notes to financial statements.

58 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI USA Index Fund
	Six months ended February 28, 2011 (Unaudited)			Period from May 5,  2010a to August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	17,311		$	16,601
Net realized gain (loss)		18,998			(2,434	)
Net change in unrealized appreciation/depreciation		422,452			(246,604	)
Net increase (decrease) in net assets resulting from operations		458,761			(232,437	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(23,058	)		(6,626	)
Total distributions to shareholders		(23,058	)		(6,626	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		–			2,482,623
Cost of shares redeemed		(1,262,145	)		–
Net increase (decrease) in net assets from capital share transactions		(1,262,145	)		2,482,623
INCREASE (DECREASE) IN NET ASSETS		(826,442	)		2,243,560
NET ASSETS
Beginning of period		2,243,560			–
End of period	$	1,417,118		$	2,243,560
Undistributed net investment income included in net assets at end of period	$	4,228		$	9,975
SHARES ISSUED AND REDEEMED
Shares sold		–			100,000
Shares redeemed		(50,000	)		–
Net increase (decrease) in shares outstanding		(50,000	)		100,000

^a Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 59

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Brazil Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	68.07		$	58.26		$	73.27		$	61.59		$	39.09		$	28.18
Income from investment operations:
Net investment incomea		0.63			1.56			1.56			1.93			1.09			1.00
Net realized and unrealized gain (loss)b		7.70			10.83			(14.63	)		11.59			22.35			10.49
Total from investment operations		8.33			12.39			(13.07	)		13.52			23.44			11.49
Less distributions from:
Net investment income		(2.53	)		(2.58	)		(1.94	)		(1.41	)		(0.94	)		(0.58	)
Net realized gain		–			–			–			(0.43	)		–			–
Total distributions		(2.53	)		(2.58	)		(1.94	)		(1.84	)		(0.94	)		(0.58	)
Net asset value, end of period	$	73.87		$	68.07		$	58.26		$	73.27		$	61.59		$	39.09
Total return		12.32	%c		21.12	%		(16.05	)%		21.58	%		60.82	%		41.13	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	12,687,037		$	9,240,453		$	8,777,366		$	7,242,260		$	4,434,334		$	2,468,295
Ratio of expenses to average net assetsd,e		0.59	%		0.61	%		0.65	%		0.63	%		0.68	%		0.70	%
Ratio of net investment income to averagenet assetsd		1.70	%		2.24	%		3.38	%		2.37	%		2.17	%		2.65	%
Portfolio turnover ratef		11	%		13	%		30	%		30	%		22	%		15	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Not annualized.

^d  Annualized for periods of less than one year.

^e  Amounts have been adjusted as necessary to be consistent with current period presentation of foreign taxes.

^f  Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2011 and the years ended August 31, 2010, August 31, 2009, August 31, 2008, August 31, 2007 and August 31, 2006 would have been 0%, 13%, 14%, 19%, 6% and 13%, respectively. See Note 4.

See notes to financial statements.

60 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI BRIC Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Period from Nov. 12, 2007a to Aug. 31, 2008
Net asset value, beginning of period	$	42.94		$	37.57		$	44.13		$	56.50
Income from investment operations:
Net investment incomeb		0.18			0.66			0.58			0.72
Net realized and unrealized gain (loss)c		5.06			5.35			(6.60	)		(12.93	)
Total from investment operations		5.24			6.01			(6.02	)		(12.21	)
Less distributions from:
Net investment income		(0.45	)		(0.64	)		(0.54	)		(0.16	)
Total distributions		(0.45	)		(0.64	)		(0.54	)		(0.16	)
Net asset value, end of period	$	47.73		$	42.94		$	37.57		$	44.13
Total return		12.20	%d		15.95	%		(13.08	)%		(21.65	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,162,237		$	946,814		$	497,839		$	161,092
Ratio of expenses to average net assets prior to waived feese		0.67	%		n/a			n/a			n/a
Ratio of expenses to average net assets after waived feese		0.66	%		0.69	%		0.72	%		0.72	%
Ratio of net investment income to average net assetse		0.75	%		1.52	%		1.87	%		1.74	%
Portfolio turnover ratef		7	%		9	%		7	%		9	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

^f  Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2011, the years ended August 31, 2010, August 31, 2009 and the period ended August 31, 2008 would have been 0%, 8%, 6% and 2%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 61

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Canada Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	26.10		$	23.70		$	30.55		$	29.87		$	24.69		$	20.30
Income from investment operations:
Net investment incomea		0.27			0.43			0.41			0.47			0.35			0.25
Net realized and unrealized gain (loss)b		7.50			2.39			(6.84	)		0.72			5.11			4.29
Total from investment operations		7.77			2.82			(6.43	)		1.19			5.46			4.54
Less distributions from:
Net investment income		(0.32	)		(0.42	)		(0.42	)		(0.51	)		(0.28	)		(0.15	)
Total distributions		(0.32	)		(0.42	)		(0.42	)		(0.51	)		(0.28	)		(0.15	)
Net asset value, end of period	$	33.55		$	26.10		$	23.70		$	30.55		$	29.87		$	24.69
Total return		29.90	%c		11.91	%		(20.51	)%		3.88	%		22.33	%		22.46	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	5,786,800		$	3,447,242		$	2,393,638		$	2,071,061		$	1,323,122		$	1,101,161
Ratio of expenses to average net assetsd		0.53	%		0.53	%		0.55	%		0.52	%		0.52	%		0.54	%
Ratio of net investment income to averagenet assetsd		1.84	%		1.63	%		2.00	%		1.46	%		1.32	%		1.09	%
Portfolio turnover ratee		5	%		6	%		6	%		11	%		8	%		20	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

62 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Chile Investable Market Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Period from Nov. 12, 2007a to Aug. 31, 2008
Net asset value, beginning of period	$	67.37		$	44.61		$	44.80		$	48.84
Income from investment operations:
Net investment incomeb		0.18			0.59			0.76			0.92
Net realized and unrealized gain (loss)c		2.04			22.86			(0.42	)		(4.38	)
Total from investment operations		2.22			23.45			0.34			(3.46	)
Less distributions from:
Net investment income		(0.03	)		(0.66	)		(0.53	)		(0.58	)
Return of capital		–			(0.03	)		–			–
Total distributions		(0.03	)		(0.69	)		(0.53	)		(0.58	)
Net asset value, end of period	$	69.56		$	67.37		$	44.61		$	44.80
Total return		3.29	%d		52.88	%		0.89	%		(7.15	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	872,938		$	670,350		$	263,205		$	76,158
Ratio of expenses to average net assetse		0.59	%		0.61	%		0.65	%		0.63	%
Ratio of net investment income to average net assetse		0.49	%		1.05	%		1.98	%		2.38	%
Portfolio turnover ratef		10	%		42	%		53	%		16	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

^f  Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2011, the years ended August 31, 2010, August 31, 2009 and the period ended August 31, 2008 would have been 7%, 9%, 14% and 16%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 63

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, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Period from Mar. 26, 2008a to Aug. 31, 2008
Net asset value, beginning of period	$	49.41		$	46.87		$	48.62		$	50.33
Income from investment operations:
Net investment incomeb		0.66			1.40			0.98			0.21
Net realized and unrealized gain (loss)c		7.52			2.63			(1.75	)		(1.92	)
Total from investment operations		8.18			4.03			(0.77	)		(1.71	)
Less distributions from:
Net investment income		(0.94	)		(1.49	)		(0.98	)		–
Total distributions		(0.94	)		(1.49	)		(0.98	)		–
Net asset value, end of period	$	56.65		$	49.41		$	46.87		$	48.62
Total return		16.52	%d		8.57	%		(0.63	)%		(3.40	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	121,799		$	128,473		$	107,792		$	204,201
Ratio of expenses to average net assetse		0.59	%		0.61	%		0.66	%		0.63	%
Ratio of net investment income to average net assetse		2.34	%		2.64	%		2.66	%		0.93	%
Portfolio turnover ratef		9	%		21	%		27	%		8	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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.

64 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Mexico Investable Market Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	48.17		$	42.59		$	51.94		$	58.35		$	41.30		$	29.04
Income from investment operations:
Net investment incomea		0.16			0.72			0.43			1.40			0.64			0.76
Net realized and unrealized gain (loss)b		12.93			5.61			(9.17	)		(6.21	)		16.87			11.98
Total from investment operations		13.09			6.33			(8.74	)		(4.81	)		17.51			12.74
Less distributions from:
Net investment income		(0.30	)		(0.75	)		(0.61	)		(1.60	)		(0.46	)		(0.48	)
Total distributions		(0.30	)		(0.75	)		(0.61	)		(1.60	)		(0.46	)		(0.48	)
Net asset value, end of period	$	60.96		$	48.17		$	42.59		$	51.94		$	58.35		$	41.30
Total return		27.14	%c		14.83	%		(16.50	)%		(8.44	)%		42.58	%		44.11	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,481,234		$	1,450,039		$	694,278		$	955,684		$	1,382,810		$	764,107
Ratio of expenses to average net assetsd		0.53	%		0.53	%		0.55	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to averagenet assetsd		0.55	%		1.46	%		1.25	%		2.42	%		1.19	%		2.06	%
Portfolio turnover ratee		2	%		11	%		13	%		13	%		14	%		12	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 65

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI South Africa Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a
Net asset value, beginning of period	$	58.74		$	51.99		$	55.80		$	62.26		$	48.84		$	41.50
Income from investment operations:
Net investment incomeb		0.67			1.18			1.94			2.28			1.50			1.44
Net realized and unrealized gain (loss)c		11.57			6.92			(3.84	)		(6.02	)		13.18			6.89
Total from investment operations		12.24			8.10			(1.90	)		(3.74	)		14.68			8.33
Less distributions from:
Net investment income		(1.55	)		(1.35	)		(1.91	)		(2.72	)		(1.26	)		(0.99	)
Total distributions		(1.55	)		(1.35	)		(1.91	)		(2.72	)		(1.26	)		(0.99	)
Net asset value, end of period	$	69.43		$	58.74		$	51.99		$	55.80		$	62.26		$	48.84
Total return		20.75	%d		15.80	%		(2.23	)%		(6.18	)%		30.34	%		20.06	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	610,982		$	505,191		$	488,728		$	429,655		$	466,940		$	297,898
Ratio of expenses to average net assetse		0.59	%		0.61	%		0.66	%		0.63	%		0.68	%		0.70	%
Ratio of net investment income to averagenet assetse		1.97	%		2.09	%		4.81	%		3.61	%		2.58	%		2.79	%
Portfolio turnover ratef		3	%		5	%		16	%		21	%		8	%		7	%

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

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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.

66 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Turkey Investable Market Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Period from Mar. 26, 2008a to Aug. 31, 2008
Net asset value, beginning of period	$	60.81		$	48.01		$	52.42		$	50.30
Income from investment operations:
Net investment income (loss)b		(0.15	)		1.00			0.78			0.83
Net realized and unrealized gain (loss)c		(1.78	)		13.02			(4.22	)		1.29
Total from investment operations		(1.93	)		14.02			(3.44	)		2.12
Less distributions from:
Net investment income		(0.32	)		(1.22	)		(0.97	)		–
Total distributions		(0.32	)		(1.22	)		(0.97	)		–
Net asset value, end of period	$	58.56		$	60.81		$	48.01		$	52.42
Total return		(3.22	)%d		29.55	%		(5.56	)%		4.22	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	506,534		$	601,988		$	242,435		$	152,021
Ratio of expenses to average net assetse		0.59	%		0.61	%		0.65	%		0.63	%
Ratio of net investment income (loss) to average net assetse		(0.44	)%		1.81	%		2.39	%		3.78	%
Portfolio turnover ratef		3	%		13	%		16	%		27	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 67

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI USA Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Period from May 5, 2010a to Aug. 31, 2010
Net asset value, beginning of period	$	22.44		$	24.83
Income from investment operations:
Net investment incomeb		0.24			0.17
Net realized and unrealized gain (loss)c		5.99			(2.49	)
Total from investment operations		6.23			(2.32	)
Less distributions from:
Net investment income		(0.33	)		(0.07	)
Total distributions		(0.33	)		(0.07	)
Net asset value, end of period	$	28.34		$	22.44
Total return		27.92	%d		(9.37	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,417		$	2,244
Ratio of expenses to average net assetse		0.15	%		0.15	%
Ratio of net investment income to average net assetse		1.89	%		2.21	%
Portfolio turnover ratef		1	%		1	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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.

68 2011 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, iShares MSCI Turkey Investable Market and iShares MSCI USA 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 its underlying index. 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 issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

Each Fund, except for the iShares MSCI USA Index 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 69

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”); and

• 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 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.

70 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of February 28, 2011. 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	Level 1		Level 2		Level 3			Total
Brazil
Common Stocks	$	5,833,081,831	$	–	$	–		$	5,833,081,831
Preferred Stocks		6,783,542,808		–		–			6,783,542,808
Rights		157,030		–		0	a		157,030
Short-Term Investments		8,169,947		–		–			8,169,947
	$	12,624,951,616	$	–	$	0	a	$	12,624,951,616
BRIC
Common Stocks	$	934,944,852	$	–	$	–		$	934,944,852
Preferred Stocks		224,666,588		–		–			224,666,588
Rights		6,606		–		0	a		6,606
Short-Term Investments		26,870,916		–		–			26,870,916
	$	1,186,488,962	$	–	$	0	a	$	1,186,488,962
Canada
Common Stocks	$	5,775,875,111	$	–	$	–		$	5,775,875,111
Short-Term Investments		13,445,072		–		–			13,445,072
	$	5,789,320,183	$	–	$	–		$	5,789,320,183
Chile Investable Market
Common Stocks	$	873,659,945	$	–	$	–		$	873,659,945
Short-Term Investments		1,254,477		–		–			1,254,477
	$	874,914,422	$	–	$	–		$	874,914,422
Israel Capped Investable Market
Common Stocks	$	121,118,978	$	–	$	464,690		$	121,583,668
Short-Term Investments		1,368,976		–		–			1,368,976
	$	122,487,954	$	–	$	464,690		$	122,952,644
Mexico Investable Market
Common Stocks	$	1,480,372,614	$	–	$	–		$	1,480,372,614
Short-Term Investments		63,372,183		–		–			63,372,183
	$	1,543,744,797	$	–	$	–		$	1,543,744,797

^a Rounds to less than $1.

NOTES TO FINANCIAL STATEMENTS 71

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

	Investments in Securities
iShares MSCI Index Fund	Level 1		Level 2		Level 3		Total
South Africa
Common Stocks	$	610,548,428	$	–	$	–	$	610,548,428
Short-Term Investments		1,898,852		–		–		1,898,852
	$	612,447,280	$	–	$	–	$	612,447,280
Turkey Investable Market
Common Stocks	$	506,416,467	$	–	$	–	$	506,416,467
Short-Term Investments		45,824,469		–		–		45,824,469
	$	552,240,936	$	–	$	–	$	552,240,936
USA
Common Stocks	$	1,415,040	$	–	$	–	$	1,415,040
Short-Term Investments		4,961		–		–		4,961
	$	1,420,001	$	–	$	–	$	1,420,001

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 (except for the iShares MSCI USA Index 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 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, 2011, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

72 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions to shareholders from net investment income, if any, are generally declared and paid quarterly by the iShares MSCI USA Index Fund and semi-annually by each of the other Funds. Distributions of net realized capital gains, if any, generally are declared and paid 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, 2011.

Certain Funds had tax basis net capital loss carryforwards as of August 31, 2010, the tax year-end of the Funds, as follows:

iShares MSCI Index Fund	Expiring 2011		Expiring 2012		Expiring 2013		Expiring 2014		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Total
Brazil	$	–	$	–	$	–	$	–	$	–	$	–	$	29,287,453	$	215,311,884	$	244,599,337
BRIC		–		–		–		–		–		–		1,540,740		11,268,086		12,808,826
Canada		–		–		2,931,648		–		5,363,291		5,107,471		27,886,883		68,928,677		110,217,970
Chile Investable Market		–		–		–		–		–		–		1,886,881		11,712,090		13,598,971
Israel Capped Investable Market		–		–		–		–		–		–		784,479		10,801,191		11,585,670
Mexico Investable Market		2,329,290		3,136,171		12,912		632,766		–		853,150		8,973,988		2,789,471		18,727,748
South Africa		–		527,613		–		260,738		1,607,845		972,024		15,339,464		14,856,365		33,564,049
Turkey Investable Market		–		–		–		–		–		–		720,636		5,982,737		6,703,373

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

NOTES TO FINANCIAL STATEMENTS 73

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

As of February 28, 2011, 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	$	8,626,266,009	$	4,072,990,356	$	(74,304,749	)	$	3,998,685,607
BRIC		1,048,938,092		179,427,879		(41,877,009	)		137,550,870
Canada		5,065,137,582		808,326,431		(84,143,830	)		724,182,601
Chile Investable Market		695,000,757		183,293,960		(3,380,295	)		179,913,665
Israel Capped Investable Market		134,050,892		3,786,790		(14,885,038	)		(11,098,248	)
Mexico Investable Market		1,470,028,301		156,914,961		(83,198,465	)		73,716,496
South Africa		599,816,910		50,677,714		(38,047,344	)		12,630,370
Turkey Investable Market		613,025,405		12,914,384		(73,698,853	)		(60,784,469	)
USA		1,244,222		204,405		(28,626	)		175,779

Management has reviewed the tax positions as of February 28, 2011, inclusive of the 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

Pursuant to an Investment Advisory Agreement with the Company, BlackRock Fund Advisors (“BFA”) manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for all 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, litigation expenses and any 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

Effective January 1, 2011, 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

74 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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, up to and including $32 billion
0.45	Over $32 billion

Prior to January 1, 2011, 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

Effective January 1, 2011, 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, up to and including $42 billion
0.56	Over $42 billion, up to and including $56 billion
0.50	Over $56 billion, up to and including $70 billion
0.45	Over $70 billion, up to and including $84 billion
0.40	Over $84 billion

NOTES TO FINANCIAL STATEMENTS 75

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Prior to January 1, 2011, 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

BFA has voluntarily waived a portion of its investment advisory fee for the iShares MSCI BRIC Index Fund in the amount of $31,041.

For its investment advisory services to the iShares MSCI USA Index Fund, BFA is entitled to an annual investment advisory fee of 0.15% of the average daily net assets of the Fund.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“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 combined income earned from the investment of cash collateral received for the loan of securities and any fees paid by borrowers. For the six months ended February 28, 2011, BTC earned securities lending agent fees from certain Funds as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees
Brazil	$	749
BRIC		159,871
Canada		36,185
Israel Capped Investable Market		16,489

iShares MSCI Index Fund	Securities Lending Agent Fees
Mexico Investable Market	$	161,289
South Africa		26,640
Turkey Investable Market		176,545
USA		16

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.

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays PLC (“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.

76 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Investments in issuers considered to be affiliates of the Funds (excluding short-term investments) during the six months ended February 28, 2011, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

iShares Index Fund and Name of Affiliated Issuer	Number of Shares Held Beginning of Period		Gross Additions		Gross Reductions			Number of Shares Held End of Period		Value at End of Period		Dividend Income		Net Realized Gain (Loss)
MSCI USA
Blackrock Inc.		8		12		(10	)		10	$	2,040	$	10	$	45
PNC Financial Services Group (The)		118		–		(59	)		59		3,640		18		(707	)
										$	5,680	$	28	$	(662	)

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, 2011 were as follows:

iShares MSCI Index Fund	Purchases		Sales
Brazil	$	3,718,810,152	$	1,229,263,638
BRIC		109,099,005		75,515,210
Canada		258,711,504		237,319,572
Chile Investable Market		280,607,322		88,505,003
Israel Capped Investable Market		11,475,951		12,283,604
Mexico Investable Market		34,436,040		39,666,946
South Africa		20,152,755		25,831,583
Turkey Investable Market		26,645,550		22,754,172
USA		22,643		31,987

In-kind transactions (see Note 4) for the six months ended February 28, 2011 were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
BRIC	$	73,505,568	$	–
Canada		1,320,678,210		109,056,647
Israel Capped Investable Market		26,063,086		50,039,140
Mexico Investable Market		144,943,643		482,897,593
South Africa		172,453,674		155,951,807
Turkey Investable Market		278,607,484		352,270,192
USA		–		1,252,897

NOTES TO FINANCIAL STATEMENTS 77

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) 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 securities of that Fund’s underlying 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 certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) 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 current 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 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 or its affiliates; such reinvestments are subject to investment risk.

As of February 28, 2011, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of the securities on loan as of February 28, 2011 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, plus any fees paid by borrowers and less the fees paid to BTC as securities lending agent which are subject to adjustments pursuant to the securities lending agreement.

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.

78 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® INC.

Section 19(a) Notices

The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report distributions for federal income tax purposes.

	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
iShares MSCI USA Index Fund	$	0.33182	$	–	$	0.00078	$	0.33260		100	%		–	%		0	%a		100	%

^a  Rounds to less than 1%.

SUPPLEMENTAL INFORMATION 79

Notes:

80 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 81

Notes:

82 2011 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 Funds’ 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”). BlackRock Fund Advisors (“BFA”) serves as the investment advisor to the Funds. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A., neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor 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.

^©2011 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-84-0211

2011 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES^® MSCI SERIES

FEBRUARY 28, 2011

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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

Table of Contents

Fund Performance Overviews	5
Shareholder Expenses	14
Schedules of Investments	16
iShares MSCI Australia Index Fund	16
iShares MSCI Hong Kong Index Fund	19
iShares MSCI Japan Small Cap Index Fund	21
iShares MSCI Malaysia Index Fund	31
iShares MSCI Pacific ex-Japan Index Fund	33
iShares MSCI Singapore Index Fund	36
iShares MSCI South Korea Index Fund	38
iShares MSCI Taiwan Index Fund	41
iShares MSCI Thailand Investable Market Index Fund	44
Financial Statements	47
Financial Highlights	58
Notes to Financial Statements	67

Fund Performance Overview

iSHARES^® MSCI AUSTRALIA INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
21.07%	22.01%	21.73%	10.33%	10.48%	10.16%	15.06%	15.04%	14.72%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
21.07%	22.01%	21.73%	63.51%	64.57%	62.22%	306.56%	305.95%	294.77%

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

Certain sectors and markets performed exceptionally well based on market conditions during the six-month period. 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 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.

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 the MSCI Australia Index^SM (the “Index”). The Index consists of stocks traded primarily on the Australian Stock Exchange. 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, 2011, the total return for the Fund was 27.17%, while the total return for the Index was 27.58%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		42.20	%
Basic Materials		27.34
Consumer Non-Cyclical		10.55
Energy		5.86
Consumer Cyclical		5.76
Industrial		4.69
Communications		1.52
Utilities		0.79
Technology		0.44
Short-Term and Other Net Assets		0.85
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
BHP Billiton Ltd.		15.84	%
Commonwealth Bank of Australia		8.42
Westpac Banking Corp.		7.20
Australia and New Zealand Banking Group Ltd.		6.32
National Australia Bank Ltd.		5.63
Rio Tinto Ltd.		3.79
Wesfarmers Ltd.		3.39
Woolworths Ltd.		3.39
Newcrest Mining Ltd.		2.97
Woodside Petroleum Ltd.		2.71
TOTAL		59.66	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MSCI HONG KONG INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
24.04%	24.14%	24.85%	9.94%	10.05%	10.53%	7.15%	7.27%	7.93%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
24.04%	24.14%	24.85%	60.58%	61.41%	64.99%	99.41%	101.69%	114.48%

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

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

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 the MSCI Hong Kong Index^SM (the “Index”). The Index consists of stocks traded primarily on the Stock Exchange of Hong Kong Limited. 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, 2011, the total return for the Fund was 17.22%, while the total return for the Index was 17.49%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		54.80	%
Diversified		15.09
Consumer Cyclical		14.07
Utilities		10.82
Industrial		3.00
Communications		0.98
Technology		0.85
Short-Term and Other Net Assets		0.39
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Hutchison Whampoa Ltd.		8.02	%
Sun Hung Kai Properties Ltd.		7.39
AIA Group Ltd. (Hong Kong)		7.22
Hong Kong Exchanges and Clearing Ltd.		7.13
Cheung Kong (Holdings) Ltd.		6.79
Li & Fung Ltd.		5.43
CLP Holdings Ltd.		4.96
Hang Seng Bank Ltd.		3.88
BOC Hong Kong (Holdings) Ltd.		3.67
Swire Pacific Ltd. Class A		3.50
TOTAL		57.99	%

6 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/11			Inception to 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
20.97%	22.36%	21.28%	1.88%	2.20%	2.15%	6.13%	7.21%	7.02%

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

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

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, which consists of stocks traded primarily on the Tokyo Stock Exchange. 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, 2011, the total return for the Fund was 21.82%, while the total return for the Index was 21.96%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Industrial		26.48	%
Consumer Cyclical		25.16
Financial		18.56
Consumer Non-Cyclical		11.83
Basic Materials		10.89
Communications		3.90
Technology		2.44
Utilities		0.26
Energy		0.10
Short-Term and Other Net Assets		0.38
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Dainippon Screen Manufacturing Co. Ltd.		0.59	%
Ebara Corp.		0.59
Alps Electric Co. Ltd.		0.54
Misumi Group Inc.		0.50
Advance Residence Investment Corp.		0.46
Nippon Paint Co. Ltd.		0.45
DIC Corp.		0.43
DISCO Corp.		0.43
Don Quijote Co. Ltd.		0.43
MORI TRUST Sogo REIT Inc.		0.43
TOTAL		4.85	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MSCI MALAYSIA INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
34.95%	35.30%	35.65%	17.33%	17.28%	17.90%	13.12%	13.46%	14.02%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
34.95%	35.30%	35.65%	122.36%	121.91%	127.80%	243.19%	253.69%	271.42%

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

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 spreads as of the opening 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 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.

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 the MSCI Malaysia Index^SM (the “Index”). The Index consists of stocks traded primarily on the Kuala Lumpur Stock Exchange. 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, 2011, the total return for the Fund was 10.02%, while the total return for the Index was 10.40%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		30.97	%
Consumer Non-Cyclical		14.69
Consumer Cyclical		13.67
Diversified		11.68
Communications		11.31
Utilities		7.70
Industrial		5.00
Basic Materials		3.75
Energy		1.01
Short-Term and Other Net Assets		0.22
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
CIMB Group Holdings Bhd		9.79	%
Malayan Banking Bhd		8.16
Sime Darby Bhd		7.20
Genting Bhd		6.59
IOI Corp. Bhd		5.45
Tenaga Nasional Bhd		4.58
Public Bank Bhd Foreign		4.11
Petronas Chemicals Group Bhd		3.75
Axiata Group Bhd		3.68
Maxis Communications Bhd		3.64
TOTAL		56.95	%

8 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
21.55%	22.25%	22.14%	10.40%	10.56%	10.42%	15.43%	15.46%	15.41%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
21.55%	22.25%	22.14%	63.97%	65.21%	64.17%	282.30%	283.25%	281.89%

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

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

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 the MSCI Pacific ex-Japan Index^SM (the “Index”). The Index consists of stocks from Australia, Hong Kong, New Zealand and Singapore. 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, 2011, the total return for the Fund was 22.47%, while the total return for the Index was 22.83%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		45.07	%
Basic Materials		18.16
Consumer Cyclical		8.37
Consumer Non-Cyclical		7.92
Industrial		5.41
Communications		3.05
Diversified		4.24
Energy		3.90
Utilities		2.91
Technology		0.47
Short-Term and Other Net Assets		0.50
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
BHP Billiton Ltd. (Australia)		10.52	%
Commonwealth Bank of Australia (Australia)		5.59
Westpac Banking Corp. (Australia)		4.78
Australia and New Zealand Banking Group Ltd. (Australia)		4.19
National Australia Bank Ltd. (Australia)		3.74
Rio Tinto Ltd. (Australia)		2.51
Wesfarmers Ltd. (Australia)		2.25
Woolworths Ltd. (Australia)		2.25
Newcrest Mining Ltd. (Australia)		1.97
Woodside Petroleum Ltd. (Australia)		1.81
TOTAL		39.61	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® MSCI SINGAPORE INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
22.33%	22.80%	22.20%	12.77%	12.91%	12.97%	10.48%	10.67%	10.31%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
22.33%	22.80%	22.20%	82.34%	83.52%	83.99%	170.91%	175.65%	166.85%

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

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

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 the MSCI Singapore Index^SM (the “Index”). The Index consists of stocks traded primarily on the Singapore Stock Exchange. 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, 2011, the total return for the Fund was 9.55%, while the total return for the Index was 9.41%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		46.52	%
Communications		13.62
Consumer Cyclical		12.75
Industrial		10.67
Diversified		8.85
Consumer Non-Cyclical		7.39
Short-Term and Other Net Assets		0.20
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
DBS Group Holdings Ltd.		10.28	%
Singapore Telecommunications Ltd.		10.23
Oversea-Chinese Banking Corp. Ltd.		10.01
United Overseas Bank Ltd.		9.82
Keppel Corp. Ltd.		6.12
Genting Singapore PLC		4.73
Wilmar International Ltd.		4.00
CapitaLand Ltd.		3.54
Singapore Airlines Ltd.		3.29
Singapore Exchange Ltd.		2.86
TOTAL		64.88	%

10 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI SOUTH KOREA INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
27.70%	28.55%	28.35%	5.26%	5.09%	5.60%	15.97%	16.34%	17.15%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
27.70%	28.55%	28.35%	29.22%	28.15%	31.31%	339.83%	354.24%	386.91%

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

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

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 the MSCI Korea Index^SM (the “Index”). The Index consists of stocks traded primarily on the Stock Market Division of the Korean Exchange. 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, 2011, the total return for the Fund was 20.99%, while the total return for the Index was 21.28%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Technology		22.53	%
Industrial		17.72
Consumer Cyclical		17.09
Financial		15.49
Basic Materials		12.58
Communications		4.15
Consumer Non-Cyclical		3.25
Energy		3.17
Diversified		1.86
Utilities		1.37
Short-Term and Other Net Assets		0.79
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Samsung Electronics Co. Ltd.		17.31	%
POSCO		5.09
Hyundai Motor Co. Ltd.		4.67
Hyundai Mobis Co. Ltd.		3.05
Shinhan Financial Group Co. Ltd.		3.04
LG Chem Ltd.		2.94
KB Financial Group Inc.		2.91
Hyundai Heavy Industries Co. Ltd.		2.82
Hynix Semiconductor Inc.		2.43
Kia Motors Corp.		2.33
TOTAL		46.59	%

FUND PERFORMANCE OVERVIEWS 11

Fund Performance Overview

iSHARES^® MSCI TAIWAN INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
26.65%	27.83%	27.32%	6.22%	6.40%	6.90%	3.70%	3.94%	4.67%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
26.65%	27.83%	27.32%	35.24%	36.38%	39.63%	43.82%	47.16%	57.85%

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

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

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 the MSCI Taiwan Index^SM (the “Index”). The Index consists of stocks traded primarily on the Taiwan Stock Exchange. 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, 2011, the total return for the Fund was 22.19%, while the total return for the Index was 22.38%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Technology		38.16	%
Industrial		22.24
Financial		14.96
Basic Materials		13.23
Consumer Cyclical		5.13
Communications		4.02
Consumer Non-Cyclical		1.13
Energy		1.12
Short-Term and Other Net Assets		0.01
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd.		13.47	%
Hon Hai Precision Industry Co. Ltd.		7.40
HTC Corp.		6.13
Nan Ya Plastics Corp.		3.26
Formosa Plastics Corp.		3.21
China Steel Corp.		2.62
Chunghwa Telecom Co. Ltd.		2.53
MediaTek Inc.		2.44
Cathay Financial Holding Co. Ltd.		2.40
Formosa Chemicals & Fibre Corp.		2.32
TOTAL		45.78	%

12 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns						Cumulative Total Returns
Year Ended 2/28/11			Inception to 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
50.57%	51.26%	52.00%	10.28%	10.51%	10.67%	33.21%	34.03%	34.58%

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

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

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

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, 2011, the total return for the Fund was 12.41%, while the total return for the Index was 12.53%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Financial		32.64	%
Energy		30.57
Basic Materials		8.76
Industrial		7.42
Consumer Cyclical		7.35
Communications		5.75
Consumer Non-Cyclical		5.09
Utilities		1.62
Technology		0.27
Short-Term and Other Net Assets		0.53
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
PTT PCL NVDR		12.13	%
PTT Exploration & Production PCL NVDR		8.92
Kasikornbank PCL NVDR		8.33
Bangkok Bank PCL NVDR		8.23
Siam Commercial Bank PCL NVDR		6.58
Banpu PCL NVDR		4.72
Siam Cement PCL NVDR		3.95
CP All PCL NVDR		3.62
Charoen Pokphand Foods PCL NVDR		3.02
Advanced Information Service PCL NVDR		2.99
TOTAL		62.49	%

FUND PERFORMANCE OVERVIEWS 13

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, 2010 to February 28, 2011.

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 (9/1/10)		Ending Account Value (2/28/11)		Annualized Expense Ratio			Expenses Paid During Perioda (9/1/10 to 2/28/11)
Australia
Actual		$1,000.00		$1,271.70		0.53	%		$2.99
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
Hong Kong
Actual		1,000.00		1,172.20		0.53			2.85
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
Japan Small Cap
Actual		1,000.00		1,218.20		0.53			2.91
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
Malaysia
Actual		1,000.00		1,100.20		0.53			2.76
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66

14 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Shareholder Expenses (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Index Fund	Beginning Account Value (9/1/10)		Ending Account Value (2/28/11)		Annualized Expense Ratio			Expenses Paid During Perioda (9/1/10 to 2/28/11)
Pacific ex-Japan
Actual		$1,000.00		$1,224.70		0.50	%		$2.76
Hypothetical (5% return before expenses)		1,000.00		1,022.30		0.50			2.51
Singapore
Actual		1,000.00		1,095.50		0.53			2.75
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66
South Korea
Actual		1,000.00		1,209.90		0.59			3.23
Hypothetical (5% return before expenses)		1,000.00		1,021.90		0.59			2.96
Taiwan
Actual		1,000.00		1,221.90		0.59			3.25
Hypothetical (5% return before expenses)		1,000.00		1,021.90		0.59			2.96
Thailand Investable Market
Actual		1,000.00		1,124.10		0.59			3.11
Hypothetical (5% return before expenses)		1,000.00		1,021.90		0.59			2.96

^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 15

Schedule of Investments (Unaudited)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.15%
AIRLINES – 0.26%
Qantas Airways Ltd.a		3,497,764	$	8,298,930
				8,298,930
APPAREL – 0.18%
Billabong International Ltd.		636,616		5,484,330
				5,484,330
BANKS – 29.02%
Australia and New Zealand Banking Group Ltd.		8,062,192		198,100,762
Bendigo and Adelaide Bank Ltd.		1,150,016		10,961,132
Commonwealth Bank of Australia		4,878,508		263,839,011
National Australia Bank Ltd.		6,719,500		176,535,622
Suncorp-Metway Ltd.		4,036,532		34,609,568
Westpac Banking Corp.		9,415,756		225,607,124
				909,653,219
BEVERAGES – 1.82%
Coca-Cola Amatil Ltd.		1,783,008		21,515,296
Foster’s Group Ltd.		6,080,468		35,416,752
				56,932,048
BIOTECHNOLOGY – 2.00%
CSL Ltd.		1,732,272		62,797,415
				62,797,415
BUILDING MATERIALS – 0.70%
Boral Ltd.		2,264,396		12,682,088
James Hardie Industries SEa		1,372,288		9,222,844
				21,904,932
CHEMICALS – 0.73%
Incitec Pivot Ltd.		5,130,376		22,934,507
				22,934,507
COAL – 0.21%
Macarthur Coal Ltd.		553,868		6,660,884
				6,660,884
COMMERCIAL SERVICES – 1.74%
Brambles Ltd.		4,480,472		32,302,245
Transurban Group		4,086,060		22,218,856
				54,521,101
COMPUTERS – 0.44%
Computershare Ltd.		1,400,072		13,643,883
				13,643,883

Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES – 1.99%
ASX Ltd.b		546,620	$	20,272,212
Macquarie Group Ltd.		1,088,408		41,972,295
				62,244,507
ELECTRIC – 0.79%
AGL Energy Ltd.		1,417,588		20,974,486
SP AusNet		4,317,996		3,825,403
				24,799,889
ENGINEERING & CONSTRUCTION – 1.14%
Leighton Holdings Ltd.b		426,424		13,434,999
MAp Group		1,169,948		3,681,296
WorleyParsons Ltd.		604,000		18,543,851
				35,660,146
ENTERTAINMENT – 0.85%
Tabcorp Holdings Ltd.		2,144,200		16,615,968
Tatts Group Ltd.		4,038,948		9,994,250
				26,610,218
FOOD – 3.88%
Goodman Fielder Ltd.		4,356,652		5,523,291
Metcash Ltd.		2,416,604		9,990,960
Woolworths Ltd.		3,878,284		106,156,003
				121,670,254
HEALTH CARE – PRODUCTS – 0.45%
Cochlear Ltd.		178,180		14,032,621
				14,032,621
HEALTH CARE – SERVICES – 0.66%
Ramsay Health Care Ltd.		413,136		7,463,153
Sonic Healthcare Ltd.		1,162,096		13,348,326
				20,811,479
INSURANCE – 4.49%
AMP Ltd.		6,526,220		35,288,396
AXA Asia Pacific Holdings Ltd.		3,255,560		21,017,964
Insurance Australia Group Ltd.		6,548,568		24,339,682
QBE Insurance Group Ltd.		3,260,392		60,225,829
				140,871,871
IRON & STEEL – 1.60%
BlueScope Steel Ltd.		5,743,436		12,164,963
Fortescue Metals Group Ltd.a		3,915,732		26,476,266
OneSteel Ltd.		4,194,176		11,531,508
				50,172,737

16 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2011

Security	Shares		Value
LODGING – 0.39%
Crown Ltd.		1,424,232	$	12,109,965
				12,109,965
MANUFACTURING – 0.18%
CSR Ltd.		1,591,942		5,641,339
				5,641,339
MEDIA – 0.28%
Fairfax Media Ltd.b		6,670,576		8,864,404
				8,864,404
METAL FABRICATE & HARDWARE – 0.31%
Sims Metal Management Ltd.		514,004		9,850,580
				9,850,580
MINING – 25.01%
Alumina Ltd.		7,686,504		18,628,655
BHP Billiton Ltd.		10,578,456		496,698,780
Newcrest Mining Ltd.		2,408,148		93,012,583
Orica Ltd.		1,140,352		29,924,647
OZ Minerals Ltd.		9,831,912		16,219,172
Paladin Energy Ltd.a		2,150,240		10,816,570
Rio Tinto Ltd.		1,372,288		118,681,240
				783,981,647
OIL & GAS – 5.65%
Caltex Australia Ltd.		426,424		6,839,083
Origin Energy Ltd.		2,776,588		47,076,197
Santos Ltd.		2,622,568		38,189,017
Woodside Petroleum Ltd.		1,966,020		85,144,971
				177,249,268
PACKAGING & CONTAINERS – 0.87%
Amcor Ltd.		3,848,688		27,120,300
				27,120,300
REAL ESTATE – 0.50%
BGP Holdings PLCa,c		18,888,372		2,609
Lend Lease Group		1,692,408		15,717,215
				15,719,824
REAL ESTATE INVESTMENT TRUSTS – 6.20%
CFS Retail Property Trust		6,662,724		12,755,144
Dexus Property Group		15,242,544		13,270,866
Goodman Group		20,064,276		14,302,015
GPT Group		5,552,572		17,527,968
Mirvac Group		10,759,656		14,243,523
Stockland Corp. Ltd.		7,506,512		29,046,745

Security	Shares		Value
Westfield Group		6,905,532	$	68,561,047
Westfield Retail Trust		9,093,220		24,723,198
				194,430,506
RETAIL – 4.08%
Harvey Norman Holdings Ltd.		1,668,852		5,166,151
Wesfarmers Ltd.		3,166,168		106,363,338
Wesfarmers Ltd. Partially Protected		478,368		16,221,165
				127,750,654
TELECOMMUNICATIONS – 1.24%
Telstra Corp. Ltd.		13,718,048		38,903,906
				38,903,906
TRANSPORTATION – 1.49%
Asciano Groupa		9,217,040		16,471,922
QR National Ltd.a		5,379,828		17,530,490
Toll Holdings Ltd.		2,103,128		12,849,690
				46,852,102
TOTAL COMMON STOCKS
(Cost: $2,749,236,007)				3,108,179,466
SHORT-TERM INVESTMENTS – 1.00%
MONEY MARKET FUNDS – 1.00%
BlackRock Cash Funds: Institutional,
SL Agency Shares
0.23%d,e,f		27,316,218		27,316,218
BlackRock Cash Funds: Prime,
SL Agency Shares
0.22%d,e,f		3,925,565		3,925,565
BlackRock Cash Funds: Treasury,
SL Agency Shares
0.07%d,e		116,873		116,873
				31,358,656
TOTAL SHORT-TERM INVESTMENTS
(Cost: $31,358,656)				31,358,656
TOTAL INVESTMENTS IN SECURITIES – 100.15%
(Cost: $2,780,594,663)				3,139,538,122
Other Assets, Less Liabilities – (0.15)%				(4,669,519)
NET ASSETS – 100.00%			$	3,134,868,603

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI AUSTRALIA INDEX FUND

February 28, 2011

^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.

18 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.53%
AIRLINES – 0.83%
Cathay Pacific Airways Ltd.		7,155,000	$	16,626,397
				16,626,397
APPAREL – 0.68%
Yue Yuen Industrial (Holdings) Ltd.a		4,293,000		13,503,206
				13,503,206
BANKS – 10.23%
Bank of East Asia Ltd. (The)a		9,730,910		42,163,550
BOC Hong Kong (Holdings) Ltd.		23,611,500		73,206,669
Hang Seng Bank Ltd.		4,865,400		77,580,054
Wing Hang Bank Ltd.		892,500		11,395,226
				204,345,499
DISTRIBUTION & WHOLESALE – 7.22%
Esprit Holdings Ltd.a		7,298,132		35,791,921
Li & Fung Ltd.a		17,811,000		108,386,846
				144,178,767
DIVERSIFIED FINANCIAL SERVICES – 7.13%
Hong Kong Exchanges and Clearing Ltd.a		6,582,600		142,399,119
				142,399,119
ELECTRIC – 7.77%
CLP Holdings Ltd.		12,163,700		99,084,851
Hongkong Electric Holdings Ltd.		8,586,000		56,052,085
				155,136,936
ENGINEERING & CONSTRUCTION – 0.71%
Cheung Kong Infrastructure Holdings Ltd.a		2,862,000		14,109,473
				14,109,473
GAS – 3.05%
Hong Kong and China Gas Co. Ltd. (The)		27,189,883		60,878,473
				60,878,473
HOLDING COMPANIES – DIVERSIFIED – 15.01%
Hutchison Whampoa Ltd.		13,610,800		160,237,042
NWS Holdings Ltd.		8,586,000		13,359,907
Swire Pacific Ltd. Class A		5,008,500		69,959,469
Wharf (Holdings) Ltd. (The)		8,586,500		56,275,823
				299,832,241

Security	Shares		Value
INSURANCE – 7.22%
AIA Group Ltd.b		49,512,600	$	144,295,080
				144,295,080
LODGING – 4.90%
Sands China Ltd.b		15,454,800		36,706,675
Shangri-La Asia Ltd.a		8,586,000		20,128,045
SJM Holdings Ltd.		10,017,000		14,737,785
Wynn Macau Ltd.		9,730,800		26,359,729
				97,932,234
REAL ESTATE – 28.13%
Cheung Kong (Holdings) Ltd.		8,720,000		135,684,125
Hang Lung Group Ltd.		5,724,000		34,685,787
Hang Lung Properties Ltd.		15,741,000		67,093,483
Henderson Land Development Co. Ltd.		7,155,332		45,334,296
Hopewell Holdings Ltd.		3,577,742		11,138,602
Hysan Development Co. Ltd.a		4,293,000		19,290,295
Kerry Properties Ltd.		4,293,000		20,778,403
New World Development Co. Ltd.		15,741,800		28,293,870
Sino Land Co. Ltd.a		17,172,000		31,129,025
Sun Hung Kai Properties Ltd.		9,140,000		147,617,134
Wheelock and Co. Ltd.		5,724,357		20,798,072
				561,843,092
REAL ESTATE INVESTMENT TRUSTS – 2.09%
Link REIT (The)a		13,594,500		41,800,232
				41,800,232
RETAIL – 0.44%
Lifestyle International Holdings Ltd.		3,577,500		8,864,350
				8,864,350
SEMICONDUCTORS – 0.85%
ASM Pacific Technology Ltd.		1,287,900		17,063,644
				17,063,644
TELECOMMUNICATIONS – 0.98%
Foxconn International Holdings Ltd.a,b		12,879,000		9,110,531
PCCW Ltd.		24,327,000		10,493,920
				19,604,451
TRANSPORTATION – 2.29%
MTR Corp. Ltd.a		9,301,583		34,213,021
Orient Overseas International Ltd.a		1,431,200		11,520,672
				45,733,693
TOTAL COMMON STOCKS
(Cost: $1,969,378,882)				1,988,146,887

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI HONG KONG INDEX FUND

February 28, 2011

Security	Shares		Value
RIGHTS – 0.08%
HOLDING COMPANIES – DIVERSIFIED – 0.08%
Wharf (Holdings) Ltd. (The)b,c		855,650	$	1,598,340
				1,598,340
TOTAL RIGHTS
(Cost: $0)				1,598,340
SHORT-TERM INVESTMENTS – 2.09%
MONEY MARKET FUNDS – 2.09%
BlackRock Cash Funds: Institutional,
SL Agency Shares
0.23%d,e,f		35,640,865		35,640,865
BlackRock Cash Funds: Prime,
SL Agency Shares
0.22%d,e,f		5,121,885		5,121,885
BlackRock Cash Funds: Treasury,
SL Agency Shares
0.07%d,e		944,996		944,996
				41,707,746
TOTAL SHORT-TERM INVESTMENTS
(Cost: $41,707,746)				41,707,746
TOTAL INVESTMENTS IN SECURITIES – 101.70%
(Cost: $2,011,086,628)				2,031,452,973
Other Assets, Less Liabilities – (1.70)%				(34,016,716)
NET ASSETS – 100.00%			$	1,997,436,257

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

^b  Non-income earning security.

^c  Security valued using Level 3 inputs 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.

20 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.62%
ADVERTISING – 0.37%
Asatsu-DK Inc.		3,600	$	102,644
Moshi Moshi Hotline Inc.		2,700		59,516
				162,160
AEROSPACE & DEFENSE – 0.17%
Japan Aviation Electronics Industry Ltd.		9,000		75,577
				75,577
AGRICULTURE – 0.30%
Hokuto Corp.		2,700		62,351
Sakata Seed Corp.		4,500		67,997
				130,348
AIRLINES – 0.06%
Skymark Airlines Inc.		1,800		26,188
				26,188
APPAREL – 1.26%
Descente Ltd.		9,000		46,027
Gunze Ltd.		18,000		77,115
Japan Wool Textile Co. Ltd. (The)		9,000		79,421
Katakura Industries Co. Ltd.		3,600		37,657
Onward Holdings Co. Ltd.		9,000		80,630
Sanyo Shokai Ltd.		9,000		33,504
Shikibo Ltd.		9,000		12,303
Tokyo Style Co. Ltd.		9,000		67,118
Wacoal Holdings Corp.		9,000		121,714
				555,489
AUTO MANUFACTURERS – 0.57%
Kanto Auto Works Ltd.		5,400		44,819
Nissan Shatai Co. Ltd.		9,000		75,906
ShinMaywa Industries Ltd.		18,000		78,652
Toyota Auto Body Co. Ltd.		2,700		50,586
				249,963
AUTO PARTS & EQUIPMENT – 4.47%
Aisan Industry Co. Ltd.		2,700		31,175
Akebono Brake Industry Co. Ltd.		7,200		43,940
Calsonic Kansei Corp.a		18,000		89,198
Exedy Corp.		3,600		118,506
FCC Co. Ltd.		4,500		111,278
Futaba Industrial Co. Ltd.a		6,300		43,523
Kayaba Industry Co. Ltd.		18,000		156,646
Keihin Corp.		4,500		99,249

Security	Shares		Value
Musashi Seimitsu Industry Co. Ltd.		2,700	$	71,084
Nifco Inc.		4,500		121,000
Nissin Kogyo Co. Ltd.		4,500		82,552
Press Kogyo Co. Ltd.a		9,000		44,050
Riken Corp.		9,000		44,379
Sanden Corp.		18,000		82,168
Sanoh Industrial Co. Ltd.		900		9,019
Showa Corp.a		6,300		53,827
T.RAD Co. Ltd.		9,000		45,258
Tachi-S Co. Ltd.		1,800		36,470
Takata Corp.		3,600		114,024
Teikoku Piston Ring Co. Ltd.		1,800		19,487
Tokai Rika Co. Ltd.		5,400		104,533
Topre Corp.		6,300		55,749
Toyo Tire & Rubber Co. Ltd.		18,000		49,652
TS Tech Co. Ltd.		5,400		114,024
Unipres Corp.		3,600		90,429
Yokohama Rubber Co. Ltd. (The)		27,000		141,047
				1,972,267
BANKS – 8.55%
Aichi Bank Ltd. (The)		900		61,516
Akita Bank Ltd. (The)		27,000		91,944
Aomori Bank Ltd. (The)		18,000		57,122
Awa Bank Ltd. (The)		27,000		166,752
Bank of Iwate Ltd. (The)		1,800		85,683
Bank of Nagoya Ltd. (The)		18,000		64,811
Bank of Okinawa Ltd. (The)		2,700		114,354
Bank of Saga Ltd. (The)		18,000		51,410
Bank of the Ryukyus Ltd.		4,500		53,991
Chiba Kogyo Bank Ltd. (The)a		4,500		32,351
Daishi Bank Ltd. (The)		36,000		132,259
Ehime Bank Ltd. (The)		18,000		55,584
Eighteenth Bank Ltd. (The)		18,000		57,781
FIDEA Holdings Co. Ltd.		12,600		41,370
Fukui Bank Ltd. (The)		27,000		88,978
Higashi-Nippon Bank Ltd. (The)		18,000		47,016
Higo Bank Ltd. (The)		18,000		109,411
Hokkoku Bank Ltd. (The)		27,000		105,126
Hokuetsu Bank Ltd. (The)		27,000		64,262
Hyakugo Bank Ltd. (The)		27,000		127,865
Hyakujushi Bank Ltd. (The)		27,000		111,058
Juroku Bank Ltd. (The)		36,000		124,350

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2011

Security	Shares		Value
Kagoshima Bank Ltd. (The)		18,000	$	126,547
Kansai Urban Banking Corp.		27,000		47,785
Keiyo Bank Ltd. (The)		27,000		155,877
Kiyo Holdings Inc.		72,000		105,456
Mie Bank Ltd. (The)		18,000		52,508
Minato Bank Ltd. (The)		18,000		36,250
Miyazaki Bank Ltd. (The)		18,000		47,895
Musashino Bank Ltd. (The)		3,600		123,296
Nanto Bank Ltd. (The)		27,000		139,070
Ogaki Kyoritsu Bank Ltd. (The)		27,000		95,899
Oita Bank Ltd. (The)		18,000		70,963
San-in Godo Bank Ltd. (The)		18,000		140,608
Shiga Bank Ltd. (The)		27,000		150,934
Shikoku Bank Ltd. (The)		18,000		59,978
Shimizu Bank Ltd. (The)		900		42,841
Tochigi Bank Ltd. (The)		9,000		46,247
Toho Bank Ltd. (The)		27,000		91,615
Tokyo Tomin Bank Ltd. (The)		3,600		51,102
TOMONY Holdings Inc.a		9,000		37,129
Towa Bank Ltd. (The)		18,000		26,584
Tsukuba Bank Ltd.a		6,300		23,530
Yachiyo Bank Ltd. (The)		1,800		65,624
Yamagata Bank Ltd. (The)		18,000		91,615
Yamanashi Chuo Bank Ltd. (The)		18,000		98,645
				3,772,992
BEVERAGES – 0.58%
Kagome Co. Ltd.		8,100		151,066
Takara Holdings Inc.		18,000		107,213
				258,279
BIOTECHNOLOGY – 0.10%
OncoTherapy Science Inc.a		9		21,201
Takara Bio Inc.a		9		24,464
				45,665
BUILDING MATERIALS – 1.48%
Central Glass Co. Ltd.		18,000		80,190
Chofu Seisakusho Co. Ltd.		2,700		64,460
Nichias Corp.		9,000		55,584
Nichiha Corp.		900		8,909
Sanwa Holdings Corp.		27,000		95,899
Sumitomo Osaka Cement Co. Ltd.		45,000		116,441
Taiheiyo Cement Corp.a		72,000		106,334

Security	Shares		Value
Takara Standard Co. Ltd.		18,000	$	125,229
				653,046
CHEMICALS – 6.76%
Adeka Corp.		10,800		120,615
Aica Kogyo Co. Ltd.		8,100		109,938
Arisawa Manufacturing Co. Ltd.		2,700		15,983
C. Uyemura & Co. Ltd.		900		39,491
Chugoku Marine Paints Ltd.		9,000		78,982
Dai Nippon Toryo Co. Ltd.a		9,000		12,962
Dainichiseika Color & Chemicals
Manufacturing Co. Ltd.		9,000		51,080
Daiso Co. Ltd.		9,000		31,197
DIC Corp.		72,000		190,700
Earth Chemical Co. Ltd.		1,800		60,242
Fujimi Inc.		2,700		41,622
Ishihara Sangyo Kaisha Ltd.a		45,000		59,868
Lintec Corp.		5,400		152,713
Nihon Nohyaku Co. Ltd.		9,000		49,542
Nihon Parkerizing Co. Ltd.		9,000		138,741
Nippon Carbon Co. Ltd.		18,000		55,364
Nippon Kayaku Co. Ltd.		18,000		187,184
Nippon Paint Co. Ltd.		27,000		197,071
Nippon Shokubai Co. Ltd.		9,000		106,005
Nippon Soda Co. Ltd.		18,000		95,130
Nippon Synthetic Chemical Industry Co. Ltd. (The)		9,000		63,933
NOF Corp.		18,000		90,956
Sakai Chemical Industry Co. Ltd.		9,000		51,190
Stella Chemifa Corp.		900		40,645
Sumitomo Bakelite Co. Ltd.		18,000		118,638
T. Hasegawa Co. Ltd.		900		14,544
Taiyo Ink Manufacturing Co. Ltd.		1,800		59,934
Takasago International Corp.		9,000		53,167
Tanaka Chemical Corp.		900		13,116
Toagosei Co. Ltd.		27,000		137,752
Tokai Carbon Co. Ltd.		18,000		106,115
Tokyo Ohka Kogyo Co. Ltd.		5,400		117,649
Toyo Ink Manufacturing Co. Ltd.		27,000		137,093
Zeon Corp.		18,000		183,449
				2,982,611
COMMERCIAL SERVICES – 1.80%
Aeon Delight Co. Ltd.		1,800		33,109

22 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2011

Security	Shares		Value
Daiseki Co. Ltd.		3,660	$	72,548
Future Architect Inc.		18		8,788
Kyodo Printing Co. Ltd.		9,000		20,872
Kyoritsu Maintenance Co. Ltd.		900		15,137
Meitec Corp.a		4,500		99,414
Nichii Gakkan Co.		5,400		49,498
Nishio Rent All Co. Ltd.		2,700		18,883
PARK24 Co. Ltd.		11,700		135,236
Pasona Group Inc.		36		31,373
Pronexus Inc.		1,800		9,623
So-net M3 Inc.		9		47,565
Sohgo Security Services Co. Ltd.		7,200		86,825
Temp Holdings Co. Ltd.		900		8,415
TKC Corp.		2,700		55,200
Toppan Forms Co. Ltd.		7,200		70,128
Zenrin Co. Ltd.		2,700		32,230
				794,844
COMPUTERS – 0.75%
CSK Holdings Corp.a		8,100		29,264
DTS Corp.		3,600		40,908
Ferrotec Corp.		1,800		30,956
Ines Corp.		2,700		22,706
Japan Digital Laboratory Co. Ltd.		900		10,699
Melco Holdings Inc.		900		34,328
Net One Systems Co. Ltd.		54		86,408
NS Solutions Corp.		2,700		60,341
Roland DG Corp.		900		13,863
				329,473
COSMETICS & PERSONAL CARE – 1.04%
Aderans Holdings Co. Ltd.a		3,600		38,096
Dr. Ci:Labo Co. Ltd.		9		34,987
Fancl Corp.		4,500		66,514
Kose Corp.		3,600		97,503
Lion Corp.		18,000		96,009
Mandom Corp.		2,700		72,171
Pigeon Corp.		1,800		53,431
				458,711
DISTRIBUTION & WHOLESALE – 2.34%
Doshisha Co. Ltd.		2,700		61,790
Hakuto Co. Ltd.		900		10,040
Hanwa Co. Ltd.		27,000		125,229
Inaba Denki Sangyo Co. Ltd.		2,700		78,598

Security	Shares		Value
Inabata & Co. Ltd.		1,800	$	12,764
Itochu Enex Co. Ltd.		9,900		57,880
Iwatani Corp.		27,000		87,331
Japan Pulp & Paper Co. Ltd.		18,000		70,524
JFE Shoji Holdings Inc.		18,000		85,463
Kanematsu Corp.a		54,000		63,933
Matsuda Sangyo Co. Ltd.		1,860		32,941
Nagase & Co. Ltd.		9,000		116,441
Nippon Gas Co. Ltd.		5,400		73,094
Paltac Corp.		900		16,730
Ryoyo Electro Corp.		900		10,381
Ship Healthcare Holdings Inc.		3,600		46,928
Sumikin Bussan Corp.		9,000		24,167
Trusco Nakayama Corp.		2,700		48,872
Yuasa Trading Co. Ltd.a		9,000		10,326
				1,033,432
DIVERSIFIED FINANCIAL SERVICES – 2.96%
Acom Co. Ltd.		2,970		53,143
AIFUL Corp.a		13,050		27,397
Cedyna Financial Corp.a		16,200		35,789
Century Tokyo Leasing Corp.		6,380		121,090
Fuyo General Lease Co. Ltd.		1,800		66,569
GCA Savvian Group Corp.		9		19,114
Hitachi Capital Corp.		4,500		70,743
IBJ Leasing Co. Ltd.		2,700		69,930
Ichiyoshi Securities Co. Ltd.		5,400		40,996
Iwai Cosmo Holdings Inc.		900		6,240
Jaccs Co. Ltd.		18,000		66,349
Japan Securities Finance Co. Ltd.		9,900		73,951
Kenedix Inc.a		234		63,177
Marusan Securities Co. Ltd.		8,100		46,467
Mizuho Investors Securities Co. Ltd.a		36,000		40,425
Okasan Securities Group Inc.		18,000		79,531
Orient Corp.a		27,000		38,557
Osaka Securities Exchange Co. Ltd.		27		146,650
Promise Co. Ltd.		7,650		74,698
Ricoh Leasing Co. Ltd.		2,700		73,061
SPARX Group Co. Ltd.a		81		11,656
Tokai Tokyo Financial Holdings Inc.		18,000		66,349
Toyo Securities Co. Ltd.		9,000		16,038
				1,307,920

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2011

Security	Shares		Value
ELECTRIC – 0.20%
Okinawa Electric Power Co. Inc. (The)		1,800	$	89,637
				89,637
ELECTRICAL COMPONENTS & EQUIPMENT – 1.46%
Fujikura Ltd.		36,000		178,396
Funai Electric Co. Ltd.		1,800		58,264
Hitachi Cable Ltd.		18,000		51,630
Icom Inc.		900		25,002
Nippon Signal Co. Ltd. (The)		4,500		35,536
NPC Inc.		900		17,917
Sinfonia Technology Co. Ltd.		18,000		59,539
SWCC Showa Holdings Co. Ltd.a		18,000		20,212
Takaoka Electric Manufacturing Co. Ltd.		9,000		51,080
Tokyo Rope Manufacturing Co. Ltd.		18,000		61,516
Toshiba Tec Corp.		18,000		84,584
				643,676
ELECTRONICS – 6.80%
Alps Electric Co. Ltd.		18,000		240,132
Anritsu Corp.b		18,000		168,070
Chiyoda Integre Co. Ltd.		2,700		42,116
CMK Corp.		5,400		28,144
Cosel Co. Ltd.		3,600		58,484
Dai-ichi Seiko Co. Ltd.		900		53,277
Dainippon Screen Manufacturing Co. Ltd.a		27,000		260,344
Eizo Nanao Corp.		2,700		67,953
Enplas Corp.		900		13,402
FDK Corp.a		9,000		16,038
Fujitsu General Ltd.		9,000		52,618
Furuno Electric Co. Ltd.		3,600		19,773
Futaba Corp.		4,500		89,033
HORIBA Ltd.		3,600		112,091
Hosiden Corp.		7,200		82,256
IDEC Corp.		900		8,821
JEOL Ltd.		9,000		29,220
Kaga Electronics Co. Ltd.		3,600		47,148
Koa Corp.		5,400		66,437
Kuroda Electric Co. Ltd.		3,600		49,872
Macnica Inc.		2,700		70,853
Meiko Electronics Co. Ltd.		900		16,489
Micronics Japan Co. Ltd.		1,800		24,167
Nichicon Corp.		8,100		114,584
Nihon Dempa Kogyo Co. Ltd.		1,800		33,680

Security	Shares		Value
Nippon Ceramic Co. Ltd.		900	$	18,532
Nippon Chemi-Con Corp.a		18,000		126,547
Nissha Printing Co. Ltd.		2,700		68,678
Nitto Kogyo Corp.		3,600		42,842
Ryosan Co. Ltd.		4,500		117,814
Sanshin Electronics Co. Ltd.		3,600		31,900
Sanyo Denki Co. Ltd.		9,000		70,963
SATO Corp.		900		12,149
Shinko Shoji Co. Ltd.		1,800		16,236
Star Micronics Co. Ltd.		5,400		61,230
Taiyo Yuden Co. Ltd.		9,000		146,759
Tamura Corp.		9,000		28,231
TOKO Inc.a		9,000		22,080
Tokyo Seimitsu Co. Ltd.		4,500		89,198
Toyo Corp.		4,500		46,247
ULVAC Inc.		3,600		86,298
Wacom Co. Ltd.		45		67,723
Yamatake Corp.		7,200		181,911
				3,000,340
ENERGY - ALTERNATE SOURCES – 0.01%
Japan Wind Development Co. Ltd.a		9		5,438
				5,438
ENGINEERING & CONSTRUCTION – 3.49%
Chudenko Corp.		3,600		45,258
COMSYS Holdings Corp.		12,600		127,646
Hibiya Engineering Ltd.		900		8,546
Japan Airport Terminal Co. Ltd.		4,500		68,107
Kandenko Co. Ltd.		9,000		56,902
Kyowa Exeo Corp.		9,000		85,683
Maeda Corp.		18,000		58,001
Maeda Road Construction Co. Ltd.		9,000		76,236
MIRAIT Holdings Corp.a		3,600		27,243
Nippo Corp.		9,000		63,273
Nippon Road Co. Ltd. (The)		9,000		22,629
Nishimatsu Construction Co. Ltd.		36,000		50,092
Okumura Corp.		18,000		70,743
Penta-Ocean Construction Co. Ltd.		31,500		52,673
Shinko Plantech Co. Ltd.		4,500		48,059
SHO-BOND Holdings Co. Ltd.		3,600		76,280
Taihei Kogyo Co. Ltd.		9,000		42,402
Taikisha Ltd.		4,500		81,399
Takasago Thermal Engineering Co. Ltd.		8,100		72,567

24 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2011

Security	Shares		Value
Takuma Co. Ltd.a		9,000	$	28,451
Toa Corp.		18,000		22,409
Toda Corp.		27,000		103,149
Tokyu Construction Co. Ltd.		11,340		33,911
Toshiba Plant Systems & Services Corp.		9,000		122,153
Toyo Construction Co. Ltd.		45,000		26,913
Toyo Engineering Corp.		18,000		69,425
				1,540,150
ENTERTAINMENT – 0.72%
Avex Group Holdings Inc.		4,500		66,185
Resorttrust Inc.		4,500		73,819
Shochiku Co. Ltd.		9,000		68,436
Toei Co. Ltd.		9,000		47,565
Tokyotokeiba Co. Ltd.		18,000		26,803
Yomiuri Land Co. Ltd.		9,000		35,262
				318,070
ENVIRONMENTAL CONTROL – 0.13%
Asahi Holdings Inc.		2,700		59,582
				59,582
FOOD – 3.63%
Ariake Japan Co. Ltd.		2,700		47,257
Ezaki Glico Co. Ltd.		9,000		104,687
Fuji Oil Co. Ltd.		7,200		102,380
House Foods Corp.		7,200		121,099
Itoham Foods Inc.		18,000		68,546
J-Oil Mills Inc.		9,000		28,122
Kato Sangyo Co. Ltd.		2,700		47,356
Kewpie Corp.		10,800		136,961
Marudai Food Co. Ltd.		9,000		29,769
Maruha Nichiro Holdings Inc.		45,000		84,035
MEGMILK SNOW BRAND Co. Ltd.		4,500		80,300
Mitsui Sugar Co. Ltd.		9,000		37,569
Morinaga & Co. Ltd.		36,000		87,880
Morinaga Milk Industry Co. Ltd.		27,000		113,365
Nichirei Corp.		36,000		168,729
Nippon Beet Sugar Manufacturing Co. Ltd.		18,000		45,698
Nippon Flour Mills Co. Ltd.		18,000		89,418
Nippon Suisan Kaisha Ltd.		26,100		88,561
Nisshin OilliO Group Ltd. (The)		18,000		93,372
Prima Meat Packers Ltd.		18,000		25,046
				1,600,150

Security	Shares		Value
FOREST PRODUCTS & PAPER – 1.21%
Daio Paper Corp.		9,000	$	66,349
Hokuetsu Kishu Paper Co. Ltd.		13,500		77,939
Mitsubishi Paper Mills Ltd.a		45,000		56,573
Rengo Co. Ltd.		27,000		176,309
Sumitomo Forestry Co. Ltd.		17,100		155,075
				532,245
GAS – 0.06%
Shizuoka Gas Co. Ltd.		4,500		26,584
				26,584
HAND & MACHINE TOOLS – 1.48%
DISCO Corp.		2,700		189,491
Hitachi Koki Co. Ltd.		6,300		65,284
Meidensha Corp.		18,000		82,607
Mori Seiki Co. Ltd.		10,800		138,015
OSG Corp.		9,000		131,271
Union Tool Co.		1,800		44,687
				651,355
HEALTH CARE – PRODUCTS – 1.20%
AS ONE Corp.		900		20,542
Hogy Medical Co. Ltd.		1,800		85,243
Nakanishi Inc.		900		99,744
Nihon Kohden Corp.		4,500		98,316
Nipro Corp.		5,400		113,629
Paramount Bed Co. Ltd.		2,700		72,072
Topcon Corp.		7,200		38,667
				528,213
HEALTH CARE – SERVICES – 0.13%
Ain Pharmaciez Inc.		900		31,384
Message Co. Ltd.		9		25,540
				56,924
HOME BUILDERS – 0.50%
Haseko Corp.a		126,000		116,880
PanaHome Corp.		9,000		62,615
Token Corp.		1,080		43,171
				222,666
HOME FURNISHINGS – 1.61%
Alpine Electronics Inc.		5,400		78,235
Canon Electronics Inc.		2,700		82,453
Clarion Co. Ltd.a		9,000		19,553
Daiwa Industries Ltd.		9,000		45,148

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2011

Security	Shares		Value
Foster Electric Co. Ltd.		2,700	$	72,369
France Bed Holdings Co. Ltd.		18,000		25,046
Hoshizaki Electric Co. Ltd.		1,800		33,131
Juki Corp.a		18,000		42,622
JVC KENWOOD Holdings Inc.a		7,740		42,134
Nidec Sankyo Corp.		9,000		73,819
Noritz Corp.		3,600		60,857
Pioneer Corp.a		25,200		135,028
				710,395
HOUSEHOLD PRODUCTS & WARES – 0.11%
Pilot Corp.		27		49,037
				49,037
HOUSEWARES – 0.38%
Noritake Co. Ltd.		18,000		77,993
Sangetsu Co. Ltd.		3,600		89,198
				167,191
INSURANCE – 0.04%
Fuji Fire & Marine Insurance Co. Ltd. (The)a		9,000		15,928
				15,928
INTERNET – 1.86%
Access Co. Ltd.a		27		38,096
CyberAgent Inc.		54		172,223
Digital Garage Inc.a		9		39,271
Dwango Co. Ltd.		9		25,628
En-Japan Inc.		18		30,099
GMO Internet Inc.		6,300		38,063
Gourmet Navigator Inc.b		18		26,122
Internet Initiative Japan Inc.		18		60,308
kabu.com Securities Co. Ltd.		9,000		39,326
Kakaku.com Inc.		18		104,797
Macromill Inc.		1,800		25,968
Mixi Inc.b		9		45,148
Monex Group Inc.		126		34,849
So-net Entertainment Corp.		18		64,218
Start Today Co. Ltd.		2,700		44,720
VeriSign Japan K.K.		36		16,961
Zappallas Inc.		9		14,478
				820,275
IRON & STEEL – 1.23%
Aichi Steel Corp.		18,000		129,403
Godo Steel Ltd.		18,000		37,569

Security	Shares		Value
Kyoei Steel Ltd.		1,800	$	29,967
Mitsubishi Steel Manufacturing Co. Ltd.		18,000		68,766
Nakayama Steel Works Ltd.a		18,000		24,606
Nippon Metal Industry Co. Ltd.a		18,000		23,069
Nippon Yakin Kogyo Co. Ltd.a		13,500		38,063
Sanyo Special Steel Co. Ltd.		9,000		59,099
TOPY Industries Ltd.		18,000		53,387
Yodogawa Steel Works Ltd.		18,000		80,190
				544,119
LEISURE TIME – 1.51%
Accordia Golf Co. Ltd.		63		52,673
Daiichikosho Co. Ltd.		5,400		104,797
Fields Corp.		18		32,384
GLOBERIDE Inc.		9,000		11,314
H.I.S. Co. Ltd.		2,700		70,128
Heiwa Corp.		5,400		95,701
Mars Engineering Corp.		900		17,499
Mizuno Corp.		9,000		43,061
PGM Holdings K.K.		63		41,293
Roland Corp.		2,700		31,736
Round One Corp.		5,400		35,262
Tokyo Dome Corp.a		18,000		45,038
Universal Entertainment Corp.a		2,700		85,683
				666,569
LODGING – 0.09%
Fujita Kanko Inc.		9,000		40,425
				40,425
MACHINERY – 4.74%
Aida Engineering Ltd.		9,900		53,167
Chugai Ro Co. Ltd.		9,000		43,171
CKD Corp.		8,100		89,572
Daifuku Co. Ltd.		9,000		72,281
Daihen Corp.		18,000		81,728
Ebara Corp.a		45,000		261,443
Fuji Machine Manufacturing Co. Ltd.		4,500		109,685
Furukawa Co. Ltd.a		36,000		42,622
Harmonic Drive Systems Inc.		9		58,660
Iseki & Co. Ltd.a		18,000		48,554
Komori Corp.		7,200		76,631
Makino Milling Machine Co. Ltd.a		9,000		84,035
Max Co. Ltd.		9,000		120,395
Miura Co. Ltd.		3,600		100,491

26 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2011

Security	Shares		Value
Modec Inc.		2,700	$	49,564
Nippon Sharyo Ltd.		9,000		47,785
Nippon Thompson Co. Ltd.		9,000		74,918
Obara Corp.		1,800		23,288
Okuma Corp.a		18,000		168,290
Shima Seiki Manufacturing Ltd.		2,700		66,240
Sintokogio Ltd.		6,300		69,436
Tadano Ltd.		18,000		100,183
Toshiba Machine Co. Ltd.		18,000		107,653
Toyo Kanetsu K.K.		18,000		32,735
Tsubakimoto Chain Co.		18,000		110,948
				2,093,475
MACHINERY – DIVERSIFIED – 0.07%
Torishima Pump Manufacturing Co. Ltd.		1,800		33,131
				33,131
MANUFACTURING – 1.65%
Achilles Corp.		9,000		13,731
Amano Corp.		8,100		78,103
Glory Ltd.		7,200		174,090
Japan Cash Machine Co. Ltd.		900		8,052
JSP Corp.		900		17,005
Kureha Corp.		18,000		96,668
Nikkiso Co. Ltd.		9,000		77,664
Nippon Valqua Industries Ltd.		9,000		29,110
Nitta Corp.		2,700		51,476
Shin-Etsu Polymer Co. Ltd.		900		5,712
Tamron Co. Ltd.		1,800		38,316
Tenma Corp.		3,600		38,799
Tokai Rubber Industries Ltd.		3,600		49,432
Toyo Tanso Co. Ltd.		900		49,872
				728,030
MEDIA – 0.40%
Gakken Holdings Co. Ltd.		9,000		20,762
Kadokawa Group Holdings Inc.		2,700		70,161
SKY Perfect JSAT Holdings Inc.		180		70,853
Tohokushinsha Film Corp.		900		5,866
USEN Corp.a		11,880		9,570
				177,212
METAL FABRICATE & HARDWARE – 1.77%
Kitz Corp.		9,000		40,425
Misumi Group Inc.		9,000		221,238
Mitsui High-Tech Inc.		900		5,284

Security	Shares		Value
Nachi-Fujikoshi Corp.		18,000	$	100,622
Neturen Co. Ltd.		4,500		43,171
Oiles Corp.		4,580		92,517
Onoken Co. Ltd.		1,800		16,192
Ryobi Ltd.a		18,000		77,993
Tocalo Co. Ltd.		1,800		33,218
Toho Zinc Co. Ltd.		18,000		102,380
Yamazen Corp.		8,100		47,554
				780,594
MINING – 1.69%
Nippon Coke & Engineering Co. Ltd.		18,000		35,372
Nippon Denko Co. Ltd.		9,000		65,471
Nippon Light Metal Co. Ltd.a		63,000		134,566
Nittetsu Mining Co. Ltd.		9,000		46,466
OSAKA Titanium technologies Co. Ltd.		1,800		134,456
Pacific Metals Co. Ltd.		18,000		169,169
Sumitomo Light Metal Industries Ltd.a		36,000		47,455
Toho Titanium Co. Ltd.		3,600		112,530
				745,485
OFFICE & BUSINESS EQUIPMENT – 0.07%
Riso Kagaku Corp.		1,800		32,911
				32,911
OFFICE FURNISHINGS – 0.33%
Kokuyo Co. Ltd.		10,800		88,583
Okamura Corp.		9,000		55,254
				143,837
OIL & GAS – 0.09%
AOC Holdings Inc.a		5,400		39,612
				39,612
PACKAGING & CONTAINERS – 0.37%
FP Corp.		1,800		101,611
Fuji Seal International Inc.		2,700		59,846
				161,457
PHARMACEUTICALS – 2.94%
EPS Co. Ltd.		18		41,897
Fuso Pharmaceutical Industries Ltd.		9,000		27,902
Kaken Pharmaceutical Co. Ltd.		9,000		114,573
Kissei Pharmaceutical Co. Ltd.		900		17,917
Kobayashi Pharmaceutical Co. Ltd.		3,600		174,002
KYORIN Holdings Inc.		9,000		163,566
Mochida Pharmaceutical Co. Ltd.		9,000		106,554

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2011

Security	Shares		Value
Nichi-Iko Pharmaceutical Co. Ltd.		2,700	$	75,467
Nippon Shinyaku Co. Ltd.		9,000		118,198
Rohto Pharmaceutical Co. Ltd.		9,000		105,456
Sawai Pharmaceutical Co. Ltd.		1,800		168,510
Seikagaku Corp.		4,500		51,190
Taiko Pharmaceutical Co. Ltd.		900		11,117
Toho Holdings Co. Ltd.		4,500		55,969
Towa Pharmaceutical Co. Ltd.		900		49,707
Vital KSK Holdings Inc.		1,800		14,632
				1,296,657
REAL ESTATE – 1.33%
Airport Facilities Co. Ltd.		1,800		8,239
Arnest One Corp.		4,500		56,518
Daibiru Corp.		6,300		53,673
Daikyo Inc.a		27,000		52,069
Goldcrest Co. Ltd.		2,160		58,660
Heiwa Real Estate Co. Ltd.		22,500		65,361
Hulic Co. Ltd.		6,300		57,671
Iida Home Max Co. Ltd.		900		10,721
Leopalace21 Corp.a		14,400		24,255
Sankei Building Co. Ltd. (The)		3,600		23,200
Shoei Co. Ltd.		3,600		32,559
Sumitomo Real Estate Sales Co. Ltd.		900		46,796
TOC Co. Ltd.		9,000		39,216
Toho Real Estate Co. Ltd.		1,800		12,567
Tokyu Livable Inc.		2,700		32,527
Touei Housing Corp.		900		14,258
				588,290
REAL ESTATE INVESTMENT TRUSTS – 5.48%
Advance Residence Investment Corp.		99		205,057
BLife Investment Corp.		9		63,383
DA Office Investment Corp.		27		96,690
Frontier Real Estate Investment Corp.		18		170,267
Fukuoka REIT Corp.		9		66,349
Global One Real Estate Investment Corp. Ltd.		9		83,596
Hankyu REIT Inc.		9		46,467
Heiwa Real Estate REIT Inc.		36		24,079
Industrial & Infrastructure Fund Investment Corp.		9		46,467
Japan Excellent Inc.		18		106,005
Japan Logistics Fund Inc.		18		166,093

Security	Shares		Value
Japan Rental Housing Investments Inc.		72	$	31,637
Kenedix Realty Investment Corp.		27		127,206
MID REIT Inc.		18		50,333
Mori Hills REIT Investment Corp.		18		62,175
MORI TRUST Sogo REIT Inc.		18		188,283
Nippon Accommodations Fund Inc.		18		131,380
Nomura Real Estate Residential Fund Inc.		9		51,739
ORIX JREIT Inc.		27		155,218
Premier Investment Corp.		18		87,440
Sekisui House SI Investment Corp.		9		41,413
TOKYU REIT Inc.		18		123,032
Top REIT Inc.		18		116,221
United Urban Investment Corp.		135		176,639
				2,417,169
RETAIL – 9.32%
Alpen Co. Ltd.		1,800		36,492
Aoki Holdings Inc.		3,600		64,020
Aoyama Trading Co. Ltd.		6,300		109,421
Arc Land Sakamoto Co. Ltd.		900		11,139
Arcs Co. Ltd.		3,600		57,342
Askul Corp.		2,700		54,376
Autobacs Seven Co. Ltd.		3,600		145,661
Belluna Co. Ltd.		3,150		23,145
Best Denki Co. Ltd.a		9,000		26,693
BIC Camera Inc.		72		30,011
Cawachi Ltd.		1,800		38,557
Chiyoda Co. Ltd.		3,600		50,751
Circle K Sunkus Co. Ltd.		5,400		90,824
cocokara fine HOLDINGS Inc.		900		20,915
Colowide Co. Ltd.		4,500		27,902
Culture Convenience Club Co. Ltd.		10,800		78,696
Daiei Inc. (The)a		8,100		32,823
DCM Holdings Co. Ltd.		9,000		54,815
Don Quijote Co. Ltd.		5,400		187,777
Doutor Nichires Holdings Co. Ltd.		4,500		60,253
Duskin Co. Ltd.		6,300		126,877
EDION Corp.		8,100		83,640
Fuji Co. Ltd.		1,800		36,997
GEO Corp.		45		59,484
Gulliver International Co. Ltd.		450		19,938
H2O Retailing Corp.		9,000		67,997
Heiwado Co. Ltd.		4,500		57,287

28 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2011

Security	Shares		Value
Honeys Co. Ltd.		2,340	$	31,903
Izumi Co. Ltd.		6,300		92,197
Izumiya Co. Ltd.		9,000		41,963
Jipangu Holdings Inc.a		72		1,424
Joshin Denki Co. Ltd.		9,000		93,482
K’s Holdings Corp.		5,400		181,648
Kappa Create Co. Ltd.		450		9,991
Kasumi Co. Ltd.		900		5,009
Keiyo Co. Ltd.b		4,500		23,618
Kisoji Co. Ltd.		2,700		60,077
Kohnan Shoji Co. Ltd.		2,700		36,909
Kojima Co. Ltd.		1,800		12,655
Komeri Co. Ltd.		3,600		90,297
Kura Corp.		900		14,500
Maruetsu Inc. (The)		9,000		36,141
Matsumotokiyoshi Co. Ltd.		4,500		100,622
Matsuya Co. Ltd.a,b		3,600		28,121
Megane Top Co. Ltd.		1,800		17,905
MOS Food Services Inc.		3,600		68,942
Nishimatsuya Chain Co. Ltd.		6,300		57,287
Nissen Holdings Co. Ltd.		6,300		41,677
Pal Co. Ltd.		450		17,741
Parco Co. Ltd.		5,400		53,651
Paris Miki Holdings Inc.		4,500		44,764
Plenus Co. Ltd.		2,700		45,741
Point Inc.		1,620		77,510
Ringer Hut Co. Ltd.		1,800		22,541
Ryohin Keikaku Co. Ltd.		2,700		128,195
Saint Marc Holdings Co. Ltd.		900		40,809
Saizeriya Co. Ltd.		3,600		68,458
San-A & Co. Ltd.		900		34,987
Sankyo-Tateyama Holdings Inc.a		36,000		49,213
Seiko Holdings Corp.a		9,000		35,262
Senshukai Co. Ltd.		5,400		34,669
Shimachu Co. Ltd.		5,400		123,779
Sugi Holdings Co. Ltd.		3,600		86,254
Sundrug Co. Ltd.		3,600		107,389
Toridoll Corp.		9		12,600
Tsuruha Holdings Inc.		1,800		88,319
United Arrows Ltd.		900		15,478
Valor Co. Ltd.		4,500		46,027
Watami Co. Ltd.		2,700		56,353
Xebio Co. Ltd.		2,700		61,692

Security	Shares		Value
Yoshinoya Holdings Co. Ltd.		54	$	70,985
Zensho Co. Ltd.		8,100		88,583
				4,111,201
SEMICONDUCTORS – 0.46%
Megachips Corp.		1,800		38,865
Mimasu Semiconductor Industry Co. Ltd.		2,700		33,054
Sanken Electric Co. Ltd.		9,000		60,088
Shindengen Electric Manufacturing Co. Ltd.a		9,000		48,114
Shinkawa Ltd.		900		9,908
THine Electronics Inc.		9		11,985
				202,014
SHIPBUILDING – 0.48%
Hitachi Zosen Corp.		90,000		137,312
Namura Shipbuilding Co. Ltd.		5,400		29,857
Sasebo Heavy Industries Co. Ltd.		18,000		42,622
				209,791
SOFTWARE – 1.16%
Capcom Co. Ltd.		5,400		103,940
Fuji Soft Inc.		2,700		46,269
NEC Mobiling Ltd.		900		30,396
Nihon Unisys Ltd.		7,200		56,770
NSD Co. Ltd.		4,500		49,432
Obic Business Consultants Co. Ltd.		900		59,099
Simplex Technology Inc.		27		12,836
Sumisho Computer Systems Corp.		2,700		42,018
Tecmo Koei Holdings Co. Ltd.		5,400		45,082
Trans Cosmos Inc.		3,600		37,613
Works Applications Co. Ltd.		45		30,044
				513,499
STORAGE & WAREHOUSING – 0.47%
Mitsui-Soko Co. Ltd.		18,000		76,895
Shibusawa Warehouse Co. Ltd. (The)		9,000		30,758
Sumitomo Warehouse Co. Ltd. (The)		18,000		98,865
				206,518
TELECOMMUNICATIONS – 1.27%
AIPHONE Co. Ltd.		900		14,555
Denki Kogyo Co. Ltd.		9,000		42,402
Hikari Tsushin Inc.		2,700		65,745
Hitachi Kokusai Electric Inc.		9,000		86,452
IT Holdings Corp.		9,048		103,037
Japan Radio Co. Ltd.		9,000		26,364

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN SMALL CAP INDEX FUND

February 28, 2011

Security	Shares		Value
MTI Ltd.		9	$	17,653
Oki Electric Industry Co. Ltd.a		90,000		76,895
Okinawa Cellular Telephone Co.		18		39,985
Telepark Corp.		27		53,091
Uniden Corp.a		9,000		32,625
				558,804
TEXTILES – 0.99%
Daiwabo Holdings Co. Ltd.		18,000		43,720
Kurabo Industries Ltd.		27,000		53,717
Nitto Boseki Co. Ltd.		36,000		108,532
Seiren Co. Ltd.		7,200		53,870
Toyobo Co. Ltd.		72,000		118,638
Unitika Ltd.a		63,000		59,978
				438,455
TOYS, GAMES & HOBBIES – 0.54%
Sanrio Co. Ltd.		5,400		177,825
Tomy Co. Ltd.		7,200		62,395
				240,220
TRANSPORTATION – 2.39%
Daiichi Chuo Kisen Kaishaa		9,000		21,750
Fukuyama Transporting Co. Ltd.		18,000		92,713
Hitachi Transport System Ltd.		5,400		86,606
Iino Kaiun Kaisha Ltd.		10,800		58,528
Inui Steamship Co. Ltd.		2,700		19,345
Kintetsu World Express Inc.		1,800		56,002
Nippon Konpo Unyu Soko Co. Ltd.		9,000		103,808
Nishi-Nippon Railroad Co. Ltd.		36,000		154,229
Sankyu Inc.		27,000		127,206
Seino Holdings Co. Ltd.		18,000		136,653
Shinwa Kaiun Kaisha Ltd.		9,000		21,860
Sotetsu Holdings Inc.		45,000		147,748
Yusen Air & Sea Service Co. Ltd.		1,800		28,891
				1,055,339
VENTURE CAPITAL – 0.20%
JAFCO Co. Ltd.		2,700		87,199
				87,199
TOTAL COMMON STOCKS
(Cost: $41,911,130)				43,958,834

Security	Shares		Value
SHORT-TERM INVESTMENTS – 0.59%
MONEY MARKET FUNDS – 0.59%
BlackRock Cash Funds: Institutional,
SL Agency Shares
0.23%c,d,e		208,035	$	208,035
BlackRock Cash Funds: Prime,
SL Agency Shares
0.22%c,d,e		29,896		29,896
BlackRock Cash Funds: Treasury,
SL Agency Shares
0.07%c,d		23,340		23,340
				261,271
TOTAL SHORT-TERM INVESTMENTS
(Cost: $261,271)				261,271
TOTAL INVESTMENTS IN SECURITIES – 100.21%
(Cost: $42,172,401)				44,220,105
Other Assets, Less Liabilities – (0.21)%				(94,025)
NET ASSETS – 100.00%			$	44,126,080

^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 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI MALAYSIA INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.78%
AGRICULTURE – 10.68%
British American Tobacco (Malaysia) Bhd		1,051,200	$	16,540,764
Genting Plantations Bhd		1,927,200		5,003,581
IOI Corp. Bhd		27,944,430		50,291,731
Kuala Lumpur Kepong Bhd		4,029,600		26,683,468
				98,519,544
AIRLINES – 1.40%
AirAsia Bhda		10,424,400		8,611,535
Malaysian Airline System Bhda		7,008,000		4,341,951
				12,953,486
AUTO MANUFACTURERS – 1.25%
UMW Holdings Bhd		4,818,000		11,513,922
				11,513,922
BANKS – 28.57%
Alliance Financial Group Bhd		7,796,400		7,999,584
AMMB Holdings Bhd		15,154,837		30,851,184
CIMB Group Holdings Bhd		34,164,064		90,267,942
Hong Leong Bank Bhd		3,942,000		12,017,899
Malayan Banking Bhd		26,630,420		75,251,342
Public Bank Bhd Foreign		8,847,600		37,936,931
RHB Capital Bhd		3,591,600		9,254,213
				263,579,095
BUILDING MATERIALS – 0.73%
Lafarge Malayan Cement Bhd		2,803,260		6,754,290
				6,754,290
CHEMICALS – 3.75%
Petronas Chemicals Group Bhda		16,731,600		34,554,689
				34,554,689
COMMERCIAL SERVICES – 1.96%
PLUS Expressways Bhd		12,526,800		18,109,552
				18,109,552
DIVERSIFIED FINANCIAL SERVICES – 1.33%
Bursa Malaysia Bhd		2,715,600		7,228,543
Hong Leong Financial Group Bhd		1,752,000		4,990,946
				12,219,489
ELECTRIC – 6.05%
Tenaga Nasional Bhd		20,479,412		42,294,803
YTL Power International Bhd		18,220,875		13,558,887
				55,853,690

Security	Shares		Value
ENGINEERING & CONSTRUCTION – 1.76%
Gamuda Bhd		13,665,600	$	16,261,638
				16,261,638
ENTERTAINMENT – 0.83%
Berjaya Sports Toto Bhd		5,694,050		7,653,042
				7,653,042
FOOD – 2.05%
PPB Group Bhd		3,504,066		18,953,316
				18,953,316
GAS – 1.65%
Petronas Gas Bhd		4,117,200		15,224,395
				15,224,395
HOLDING COMPANIES – DIVERSIFIED – 11.68%
Berjaya Corp. Bhd		14,016,000		4,778,443
IJM Corp. Bhd		9,022,840		17,894,831
MMC Corp. Bhd		6,394,800		5,681,006
Sime Darby Bhd		22,600,825		66,383,672
YTL Corp. Bhd		5,606,421		13,048,873
				107,786,825
LODGING – 9.50%
Genting Bhd		18,571,200		60,818,321
Genting Malaysia Bhd		24,703,200		26,804,652
				87,622,973
OIL & GAS – 1.01%
Petronas Dagangan Bhd		2,102,400		9,304,180
				9,304,180
REAL ESTATE – 1.07%
SP Setia Bhd		5,080,800		9,843,477
				9,843,477
RETAIL – 0.69%
Parkson Holdings Bhd		3,679,271		6,368,317
				6,368,317
TELECOMMUNICATIONS – 11.31%
Axiata Group Bhda		21,199,200		33,913,161
DiGi.Com Bhd		2,890,800		25,207,435
Maxis Communications Bhd		18,834,000		33,525,199
Telekom Malaysia Bhd		9,022,800		11,653,772
				104,299,567

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI MALAYSIA INDEX FUND

February 28, 2011

Security	Shares		Value
TRANSPORTATION – 2.51%
MISC Bhd		9,285,620	$	23,134,146
				23,134,146
TOTAL COMMON STOCKS
(Cost: $503,252,835)				920,509,633
SHORT-TERM INVESTMENTS – 0.02%
MONEY MARKET FUNDS – 0.02%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%b,c		184,303		184,303
				184,303
TOTAL SHORT-TERM INVESTMENTS
(Cost: $184,303)				184,303
TOTAL INVESTMENTS IN SECURITIES – 99.80%
(Cost: $503,437,138)				920,693,936
Other Assets, Less Liabilities – 0.20%				1,824,646
NET ASSETS – 100.00%			$	922,518,582

^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.

32 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.48%
AUSTRALIA – 65.84%
AGL Energy Ltd.		1,190,604	$	17,616,054
Alumina Ltd.		6,457,518		15,650,142
Amcor Ltd.		3,252,024		22,915,826
AMP Ltd.		5,491,950		29,695,920
Asciano Groupa		7,741,182		13,834,392
ASX Ltd.		463,044		17,172,673
Australia and New Zealand Banking Group Ltd.		6,794,226		166,944,839
AXA Asia Pacific Holdings Ltd.		2,758,242		17,807,269
Bendigo and Adelaide Bank Ltd.		965,568		9,203,105
BGP Holdings PLCa,b		27,004,595		3,730
BHP Billiton Ltd.		8,919,942		418,825,235
Billabong International Ltd.		546,234		4,705,706
BlueScope Steel Ltd.		4,865,910		10,306,307
Boral Ltd.		1,899,552		10,638,724
Brambles Ltd.		3,769,494		27,176,405
Caltex Australia Ltd.		357,576		5,734,884
CFS Retail Property Trust		5,578,524		10,679,547
Coca-Cola Amatil Ltd.		1,495,728		18,048,731
Cochlear Ltd.		152,562		12,015,068
Commonwealth Bank of Australia		4,112,970		222,437,257
Computershare Ltd.		1,181,862		11,517,398
Crown Ltd.		1,191,450		10,130,666
CSL Ltd.		1,465,554		53,128,495
CSR Ltd.		1,325,776		4,698,131
Dexus Property Group		12,798,006		11,142,538
Fairfax Media Ltd.c		5,568,936		7,400,455
Fortescue Metals Group Ltd.a		3,352,980		22,671,212
Foster’s Group Ltd.		5,104,764		29,733,592
Goodman Fielder Ltd.		3,703,506		4,695,243
Goodman Group		16,886,442		12,036,823
GPT Group		4,696,428		14,825,353
Harvey Norman Holdings Ltd.		1,370,802		4,243,498
Incitec Pivot Ltd.		4,309,806		19,266,283
Insurance Australia Group Ltd.		5,505,486		20,462,760
James Hardie Industries SEa		1,146,612		7,706,126
Leighton Holdings Ltd.c		359,268		11,319,169
Lend Lease Group		1,428,048		13,262,132
Macarthur Coal Ltd.		473,478		5,694,104
Macquarie Group Ltd.		919,884		35,473,501

Security	Shares		Value
MAp Group		1,007,022	$	3,168,642
Metcash Ltd.		2,017,146		8,339,482
Mirvac Group		9,063,762		11,998,516
National Australia Bank Ltd.		5,663,406		148,789,776
Newcrest Mining Ltd.		2,032,092		78,487,753
OneSteel Ltd.		3,536,280		9,722,682
Orica Ltd.		957,390		25,123,433
Origin Energy Ltd.		2,337,780		39,636,342
OZ Minerals Ltd.		8,241,450		13,595,473
Paladin Energy Ltd.a		1,841,178		9,261,864
Qantas Airways Ltd.a		2,996,532		7,109,688
QBE Insurance Group Ltd.		2,751,756		50,830,326
QR National Ltd.a		4,538,335		14,788,435
Ramsay Health Care Ltd.		354,192		6,398,351
Rio Tinto Ltd.		1,157,328		100,090,595
Santos Ltd.		2,208,342		32,157,187
Sims Metal Management Ltd.		430,896		8,257,865
Sonic Healthcare Ltd.		968,388		11,123,314
SP AusNet		3,719,016		3,294,754
Stockland Corp. Ltd.		6,297,906		24,369,996
Suncorp-Metway Ltd.		3,405,996		29,203,299
Tabcorp Holdings Ltd.		1,794,648		13,907,198
Tatts Group Ltd.		3,377,232		8,356,855
Telstra Corp. Ltd.		11,543,670		32,737,446
Toll Holdings Ltd.		1,754,322		10,718,555
Transurban Group		3,420,378		18,599,062
Wesfarmers Ltd.		2,669,694		89,684,933
Wesfarmers Ltd. Partially Protected		402,978		13,664,736
Westfield Group		5,914,104		58,717,730
Westfield Retail Trust		7,775,868		21,141,501
Westpac Banking Corp.		7,937,454		190,186,127
Woodside Petroleum Ltd.		1,659,570		71,873,144
Woolworths Ltd.		3,269,226		89,484,928
WorleyParsons Ltd.		508,728		15,618,835
				2,621,258,116
HONG KONG – 20.81%
AIA Group Ltd.a		20,755,200		60,487,093
ASM Pacific Technology Ltd.		535,800		7,098,921
Bank of East Asia Ltd. (The)		4,060,920		17,595,765
BOC Hong Kong (Holdings) Ltd.		9,870,000		30,601,606
Cathay Pacific Airways Ltd.		3,102,000		7,208,258
Cheung Kong (Holdings) Ltd.		3,666,000		57,043,349

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2011

Security	Shares		Value
Cheung Kong Infrastructure Holdings Ltd.c		1,128,000	$	5,560,966
CLP Holdings Ltd.		5,076,000		41,348,825
Esprit Holdings Ltd.		3,102,011		15,213,062
Foxconn International Holdings Ltd.a		5,640,000		3,989,704
Hang Lung Group Ltd.		2,256,000		13,670,709
Hang Lung Properties Ltd.		6,486,736		27,648,670
Hang Seng Bank Ltd.c		2,030,400		32,375,250
Henderson Land Development Co. Ltd.		2,820,056		17,867,131
Hong Kong and China Gas Co. Ltd. (The)		11,562,627		25,888,860
Hong Kong Exchanges and Clearing Ltd.c		2,707,200		58,563,925
Hongkong Electric Holdings Ltd.		3,666,000		23,932,791
Hopewell Holdings Ltd.c		1,551,000		4,828,736
Hutchison Whampoa Ltd.		5,640,000		66,398,516
Hysan Development Co. Ltd.		1,692,000		7,602,883
Kerry Properties Ltd.		1,833,000		8,871,841
Li & Fung Ltd.		7,333,600		44,627,801
Lifestyle International Holdings Ltd.		1,551,000		3,843,077
Link REIT (The)c		5,922,000		18,208,906
MTR Corp. Ltd.		3,807,000		14,002,882
New World Development Co. Ltd.c		6,768,941		12,166,305
NWS Holdings Ltd.c		3,384,000		5,265,540
Orient Overseas International Ltd.c		564,000		4,540,008
PCCW Ltd.		10,716,000		4,622,553
Sands China Ltd.a		6,429,600		15,270,934
Shangri-La Asia Ltd.c		3,691,000		8,652,762
Sino Land Co. Ltd.c		6,768,000		12,268,882
SJM Holdings Ltd.		4,230,000		6,223,503
Sun Hung Kai Properties Ltd.		3,666,000		59,208,360
Swire Pacific Ltd. Class A		2,115,000		29,542,633
Wharf (Holdings) Ltd. (The)		3,666,000		24,026,922
Wheelock and Co. Ltd.		2,538,000		9,221,211
Wing Hang Bank Ltd.		423,000		5,400,763
Wynn Macau Ltd.		4,173,600		11,305,850
Yue Yuen Industrial (Holdings) Ltd.c		1,974,000		6,209,021
				828,404,774
NEW ZEALAND – 0.76%
Auckland International Airport Ltd.		2,474,268		4,127,347
Contact Energy Ltd.a		819,210		3,785,660
Fletcher Building Ltd.		1,594,710		10,508,786

Security	Shares		Value
Sky City Entertainment Group Ltd.		1,551,282	$	3,788,308
Telecom Corp. of New Zealand Ltd.		5,110,122		7,986,671
				30,196,772
SINGAPORE – 12.07%
Ascendas Real Estate Investment Trust		3,948,813		6,214,444
CapitaLand Ltd.		6,768,000		17,361,357
CapitaMall Trust Management Ltd.		5,922,781		8,435,483
CapitaMalls Asia Ltd.		3,666,000		4,961,656
City Developments Ltd.		1,410,000		12,381,949
ComfortDelGro Corp. Ltd.		4,794,000		5,847,031
COSCO Corp. (Singapore) Ltd.c		2,820,104		4,349,375
DBS Group Holdings Ltd.		4,512,000		50,344,384
Fraser and Neave Ltd.		2,538,150		11,204,329
Genting Singapore PLCa,c		16,074,400		24,158,716
Global Logistic Properties Ltd.a		4,230,000		6,324,114
Golden Agri-Resources Ltd.		17,484,987		8,943,024
Jardine Cycle & Carriage Ltd.		282,000		7,473,549
Keppel Corp. Ltd.		3,384,000		29,982,956
Keppel Land Ltd.c		1,974,000		6,554,888
Neptune Orient Lines Ltd.a		2,538,750		4,095,241
Noble Group Ltd.		7,896,708		12,738,129
Olam International Ltd.		3,384,600		7,403,854
Oversea-Chinese Banking Corp. Ltd.		6,486,600		47,009,156
SembCorp Industries Ltd.		2,820,240		10,563,278
SembCorp Marine Ltd.		2,256,200		9,498,108
Singapore Airlines Ltd.		1,410,800		15,119,877
Singapore Exchange Ltd.c		2,256,000		14,024,000
Singapore Press Holdings Ltd.c		3,883,517		11,856,668
Singapore Technologies Engineering Ltd.		4,512,000		11,325,711
Singapore Telecommunications Ltd.c		21,150,328		49,428,708
StarHub Ltd.		1,692,000		3,488,248
United Overseas Bank Ltd.		3,384,000		48,089,893
UOL Group Ltd.		1,128,000		3,958,673
Wilmar International Ltd.c		5,076,000		20,330,362
Yangzijiang Shipbuilding (Holdings) Ltd.		5,076,000		7,149,577
				480,616,738
TOTAL COMMON STOCKS
(Cost: $3,081,596,054)				3,960,476,400

34 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)(Continued)

iSHARES^® MSCI PACIFIC EX-JAPAN INDEX FUND

February 28, 2011

Security	Shares		Value
RIGHTS – 0.02%
HONG KONG – 0.02%
Wharf (Holdings) Ltd. (The)a,b		366,600	$	684,802
				684,802
TOTAL RIGHTS
(Cost: $0)				684,802
SHORT-TERM INVESTMENTS – 2.18%
MONEY MARKET FUNDS – 2.18%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%d,e,f		75,741,833		75,741,833
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%d,e,f		10,884,723		10,884,723
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%d,e		255,529		255,529
				86,882,085
TOTAL SHORT-TERM INVESTMENTS
(Cost: $86,882,085)				86,882,085
TOTAL INVESTMENTS IN SECURITIES – 101.68%
(Cost: $3,168,478,139)				4,048,043,287
Other Assets, Less Liabilities – (1.68)%				(66,818,767	)
NET ASSETS – 100.00%			$	3,981,224,520

^a  Non-income earning security.

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

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

^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 35

Schedule of Investments (Unaudited)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.80%
AGRICULTURE – 5.88%
Golden Agri-Resources Ltd.		69,648,628	$	35,623,094
Wilmar International Ltd.a		18,863,000		75,549,963
				111,173,057
AIRLINES – 3.29%
Singapore Airlines Ltd.		5,804,467		62,207,846
				62,207,846
BANKS – 30.11%
DBS Group Holdings Ltd.		17,412,500		194,286,698
Oversea-Chinese Banking Corp. Ltd.		26,118,000		189,280,229
United Overseas Bank Ltd.		13,059,000		185,580,942
				569,147,869
DISTRIBUTION & WHOLESALE – 2.03%
Jardine Cycle & Carriage Ltd.		1,451,000		38,454,326
				38,454,326
DIVERSIFIED FINANCIAL SERVICES – 2.86%
Singapore Exchange Ltd.a		8,706,000		54,119,212
				54,119,212
ENGINEERING & CONSTRUCTION – 4.32%
SembCorp Industries Ltd.		10,157,000		38,043,294
Singapore Technologies Engineering Ltd.a		17,412,000		43,706,401
				81,749,695
FOOD – 1.51%
Olam International Ltd.a		13,059,000		28,566,723
				28,566,723
HOLDING COMPANIES – DIVERSIFIED – 8.85%
Keppel Corp. Ltd.		13,059,000		115,705,504
Noble Group Ltd.a		31,922,999		51,494,785
				167,200,289
LODGING – 7.43%
City Developments Ltd.a		5,804,000		50,967,966
Genting Singapore PLCa,b		59,491,400		89,411,476
				140,379,442
MEDIA – 2.60%
Singapore Press Holdings Ltd.a		16,115,000		49,200,299
				49,200,299
REAL ESTATE – 10.47%
CapitaLand Ltd.		26,118,000		66,998,214

Security	Shares		Value
CapitaMalls Asia Ltd.		13,059,000	$	17,674,375
Fraser and Neave Ltd.		10,157,000		44,836,739
Global Logistic Properties Ltd.b		15,961,000		23,862,690
Keppel Land Ltd.a		7,255,000		24,091,042
UOL Group Ltd.		5,804,000		20,368,919
				197,831,979
REAL ESTATE INVESTMENT TRUSTS – 3.08%
Ascendas Real Estate Investment Trusta		15,961,335		25,119,149
CapitaMall Trust Management Ltd.		23,216,800		33,066,379
				58,185,528
SHIPBUILDING – 3.34%
SembCorp Marine Ltd.a		8,706,000		36,650,352
Yangzijiang Shipbuilding (Holdings) Ltd.a		18,863,000		26,568,651
				63,219,003
TELECOMMUNICATIONS – 11.02%
Singapore Telecommunications Ltd.a		82,707,568		193,289,119
StarHub Ltd.a		7,255,000		14,956,997
				208,246,116
TRANSPORTATION – 3.01%
ComfortDelGro Corp. Ltd.		20,314,000		24,776,095
COSCO Corp. (Singapore) Ltd.a		10,157,000		15,664,886
Neptune Orient Lines Ltd.b		10,157,499		16,384,996
				56,825,977
TOTAL COMMON STOCKS
(Cost: $1,671,638,154)				1,886,507,361
SHORT-TERM INVESTMENTS – 7.59%
MONEY MARKET FUNDS – 7.59%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%c,d,e		125,079,280		125,079,280
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%c,d,e		17,974,919		17,974,919

36 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SINGAPORE INDEX FUND

February 28, 2011

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		521,440	$	521,440
				143,575,639
TOTAL SHORT-TERM INVESTMENTS
(Cost: $143,575,639)				143,575,639
TOTAL INVESTMENTS IN SECURITIES – 107.39%
(Cost: $1,815,213,793)				2,030,083,000
Other Assets, Less Liabilities – (7.39)%				(139,754,725)
NET ASSETS – 100.00%			$	1,890,328,275

^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 37

Schedule of Investments (Unaudited)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 96.22%
AGRICULTURE – 1.08%
KT&G Corp.		904,665	$	45,928,591
				45,928,591
AIRLINES – 0.38%
Korean Air Lines Co. Ltd.		297,142		16,191,231
				16,191,231
AUTO MANUFACTURERS – 7.00%
Hyundai Motor Co. Ltd.		1,256,234		198,121,341
Kia Motors Corp.		1,941,720		98,750,479
				296,871,820
AUTO PARTS & EQUIPMENT – 3.67%
Hankook Tire Co. Ltd.a		617,820		16,230,331
Hyundai Mobis Co. Ltd.		556,038		129,322,620
Mando Corp.		75,327		9,810,897
				155,363,848
BANKS – 1.60%
Busan Bank		1,265,062		15,187,693
Daegu Bank		1,059,120		14,310,530
Industrial Bank of Koreab		1,382,740		20,704,653
Korea Exchange Bank		2,191,790		17,730,069
				67,932,945
BIOTECHNOLOGY – 0.29%
Celltrion Inc.a		429,532		12,197,316
				12,197,316
CHEMICALS – 5.37%
Hanwha Chemical Corp.		691,370		20,582,140
Honam Petrochemical Corp.		117,680		32,426,775
KCC Corp.		39,717		11,032,011
LG Chem Ltd.		378,047		124,603,273
OCI Co. Ltd.		117,680		38,787,011
				227,431,210
COMMERCIAL SERVICES – 0.15%
S1 Corp.a		147,108		6,530,023
				6,530,023
COMPUTERS – 0.23%
SK C&C Co. Ltd.a		117,680		9,894,858
				9,894,858
COSMETICS & PERSONAL CARE – 1.10%
AmorePacific Corp.		26,478		24,069,843

Security	Shares		Value
LG Household & Health Care Ltd.a		70,608	$	22,396,371
				46,466,214
DISTRIBUTION & WHOLESALE – 2.46%
Daewoo International Corp.a		294,203		8,797,547
Hanwha Corp.		367,750		14,499,513
Hyosung Corp.		186,817		12,910,757
Samsung C&T Corp.		1,014,990		60,522,595
SK Networks Co. Ltd.		720,790		7,376,179
				104,106,591
DIVERSIFIED FINANCIAL SERVICES – 10.99%
Daewoo Securities Co. Ltd.		1,029,700		21,029,181
Hana Financial Group Inc.		1,779,911		70,966,194
Hyundai Securities Co. Ltd.		1,000,287		11,521,491
KB Financial Group Inc.		2,519,910		123,243,727
Korea Investment Holdings Co. Ltd.		323,625		11,985,580
Mirae Asset Securities Co. Ltd.		201,522		8,400,842
Samsung Card Co. Ltd.		353,045		16,422,152
Samsung Securities Co. Ltd.		411,880		27,625,319
Shinhan Financial Group Co. Ltd.		3,084,487		128,719,566
Tong Yang Securities Inc.		632,530		4,315,316
Woori Finance Holdings Co. Ltd.b		2,353,600		28,464,661
Woori Investment & Securities Co. Ltd.		720,790		13,028,056
				465,722,085
ELECTRIC – 1.22%
Korea Electric Power Corp.b		2,118,240		51,799,428
				51,799,428
ELECTRICAL COMPONENTS & EQUIPMENT – 2.47%
LG Electronics Inc.a		769,333		75,662,041
LG Innotek Co. Ltd.a		82,376		9,305,755
LS Corp.		145,629		11,870,702
LS Industrial Systems Co. Ltd.		123,564		7,740,198
				104,578,696
ELECTRONICS – 3.95%
LG Display Co. Ltd.a		1,897,592		60,190,310
Samsung Electro-Mechanics Co. Ltd.a		488,372		55,818,888
Samsung SDI Co. Ltd.a		279,490		41,230,749
Seoul Semiconductor Co. Ltd.a		270,664		10,108,083
				167,348,030
ENGINEERING & CONSTRUCTION – 3.04%
Daelim Industrial Co. Ltd.a		228,005		19,817,738

38 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2011

Security	Shares		Value
Daewoo Engineering & Construction Co. Ltd.a,b		867,894	$	8,266,390
GS Engineering & Construction Corp.		291,258		25,625,233
Hyundai Engineering & Construction Co. Ltd.b		547,212		36,120,404
Samsung Engineering Co. Ltd.a		245,657		38,960,354
				128,790,119
ENVIRONMENTAL CONTROL – 0.28%
Woongjin Coway Co. Ltd.a		411,880		11,933,262
				11,933,262
FOOD – 0.41%
CJ CheilJedang Corp.a		67,666		11,960,632
Lotte Confectionery Co. Ltd.a,b		4,524		5,571,576
				17,532,208
GAS – 0.15%
Korea Gas Corp.b		191,230		6,243,588
				6,243,588
HOLDING COMPANIES – DIVERSIFIED – 1.86%
GS Holdings Corp.		411,880		25,362,743
LG Corp.		776,688		53,400,956
				78,763,699
HOME BUILDERS – 0.29%
Hyundai Development Co.b		456,017		12,363,550
				12,363,550
INSURANCE – 2.90%
Dongbu Insurance Co. Ltd.		353,040		14,326,170
Korea Life Insurance Co. Ltd.		1,500,420		10,090,097
Samsung Fire & Marine Insurance Co. Ltd.		294,205		58,259,706
Samsung Life Insurance Co. Ltd.		426,590		40,253,254
				122,929,227
INTERNET – 2.00%
NCsoft Corp.		116,209		23,269,600
NHN Corp.a,b		333,917		56,064,565
SK Broadband Co. Ltd.b		1,265,063		5,301,686
				84,635,851
IRON & STEEL – 6.55%
Dongkuk Steel Mill Co. Ltd.		308,911		9,771,074
Hyundai Steel Co.		451,597		51,815,719
POSCOa		529,560		215,830,949
				277,417,742

Security	Shares		Value
LODGING – 0.42%
Kangwon Land Inc.a,b		794,342	$	17,630,149
				17,630,149
MACHINERY – 0.87%
Doosan Heavy Industries &
Construction Co. Ltd.a		347,156		21,192,618
Doosan Infracore Co. Ltd.a,b		691,370		15,712,259
				36,904,877
MANUFACTURING – 1.14%
Cheil Industries Inc.		369,221		39,256,209
Doosan Corp.		82,376		9,123,289
				48,379,498
MINING – 0.48%
Korea Zinc Co. Ltd.		69,137		20,459,627
				20,459,627
OIL & GAS – 3.17%
S-Oil Corp.a		367,750		35,026,913
SK Energy Co. Ltd.		485,432		75,267,443
SK Holdings Co. Ltd.		205,994		24,183,055
				134,477,411
PHARMACEUTICALS – 0.22%
Yuhan Corp.		70,608		9,509,074
				9,509,074
RETAIL – 2.23%
Hyundai Department Store Co. Ltd.		122,093		13,143,401
Lotte Shopping Co. Ltd.		83,847		29,121,538
Shinsegae Co. Ltd.a		235,360		52,028,813
				94,293,752
SEMICONDUCTORS – 20.25%
Hynix Semiconductor Inc.a,b		4,104,090		103,088,603
Samsung Electronics Co. Ltd.a		897,310		733,812,191
Samsung Techwin Co. Ltd.		304,497		21,367,264
				858,268,058
SHIPBUILDING – 4.88%
Daewoo Shipbuilding & Marine Engineering Co. Ltd.b		779,630		23,831,334
Hanjin Heavy Industries & Construction Co. Ltd.a,b		252,465		6,822,471
Hyundai Heavy Industries Co. Ltd.		310,381		119,625,867
Hyundai Mipo Dockyard Co. Ltd.		89,731		13,754,010

SCHEDULE OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI SOUTH KOREA INDEX FUND

February 28, 2011

Security	Shares		Value
Samsung Heavy Industries Co. Ltd.		1,323,900	$	42,696,992
				206,730,674
TELECOMMUNICATIONS – 2.15%
KT Corp.		763,282		26,442,499
KT Corp. SP ADRb		503,082		9,955,993
LG Uplus Corp.		1,985,855		9,976,341
SK Telecom Co. Ltd.		175,560		25,354,432
SK Telecom Co. Ltd. SP ADR		1,112,106		19,561,945
				91,291,210
TRANSPORTATION – 0.97%
GLOVIS Co. Ltd.a		94,144		11,802,929
Hanjin Shipping Co. Ltd.a		413,560		12,897,986
Hyundai Merchant Marine Co. Ltd.a,b		353,040		8,836,557
STX Pan Ocean Co. Ltd.a		882,630		7,437,037
				40,974,509
TOTAL COMMON STOCKS
(Cost: $2,272,970,947)				4,077,890,971
PREFERRED STOCKS – 3.00%
AUTO MANUFACTURERS – 0.64%
Hyundai Motor Co. Ltd.a		191,230		10,047,348
Hyundai Motor Co. Ltd. Series 2		308,910		17,188,276
				27,235,624
CHEMICALS – 0.18%
LG Chem Ltd.		59,080		7,380,747
				7,380,747
ELECTRICAL COMPONENTS & EQUIPMENT – 0.13%
LG Electronics Inc.		147,106		5,395,994
				5,395,994
SEMICONDUCTORS – 2.05%
Samsung Electronics Co. Ltd.		161,810		87,023,142
				87,023,142
TOTAL PREFERRED STOCKS
(Cost: $80,207,312)				127,035,507

Security	Shares		Value
SHORT-TERM INVESTMENTS – 5.43%
MONEY MARKET FUNDS – 5.43%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%c,d,e		196,344,260	$	196,344,260
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%c,d,e		28,216,282		28,216,282
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		5,790,172		5,790,172
				230,350,714
TOTAL SHORT-TERM INVESTMENTS
(Cost: $230,350,714)				230,350,714
TOTAL INVESTMENTS IN SECURITIES – 104.65%
(Cost: $2,583,528,973)				4,435,277,192
Other Assets, Less Liabilities – (4.65)%				(196,980,522)
NET ASSETS – 100.00%			$	4,238,296,670

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.

40 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.99%
AIRLINES – 0.59%
China Airlines Ltd.a		16,240,752	$	10,537,080
EVA Airways Corp.a		10,440,193		9,405,895
				19,942,975
APPAREL – 0.70%
Pou Chen Corp.		17,400,103		15,179,100
Ruentex Industries Ltd.		3,480,000		8,563,418
				23,742,518
AUTO MANUFACTURERS – 0.42%
China Motor Co. Ltd.		3,480,000		2,901,268
Yulon Motor Co. Ltd.		5,800,362		11,387,405
				14,288,673
AUTO PARTS & EQUIPMENT – 0.71%
Cheng Shin Rubber Industry Co. Ltd.		9,280,615		18,625,499
Nan Kang Rubber Tire Co. Ltd.a		3,480,000		5,586,109
				24,211,608
BANKS – 1.45%
Chang Hwa Commercial Bank Ltd.		27,840,446		20,449,583
Taiwan Business Bank Ltd.a		17,400,000		6,785,222
Taiwan Cooperative Bank Co. Ltd.		29,000,915		21,838,185
				49,072,990
BUILDING MATERIALS – 1.47%
Asia Cement Corp.		15,080,353		15,132,569
Taiwan Cement Corp.		26,723,504		26,411,773
Taiwan Glass Industrial Corp.		6,960,414		8,435,235
				49,979,577
CHEMICALS – 10.29%
China Petrochemical Development Corp.a		11,600,000		13,180,489
Eternal Chemical Co. Ltd.		4,873,561		5,193,528
Formosa Chemicals & Fibre Corp.		23,200,204		78,771,661
Formosa Plastics Corp.		32,480,768		108,644,113
LCY Chemical Corp.		2,416,903		6,564,889
Nan Ya Plastics Corp.		38,280,860		110,285,733
Taiwan Fertilizer Co. Ltd.		5,800,000		17,976,939
TSRC Corp.		3,480,000		8,013,581
				348,630,933
COMPUTERS – 14.43%
Acer Inc.		19,720,841		47,599,973
Advantech Co. Ltd.		2,320,883		6,382,097

Security	Shares		Value
Chicony Electronics Co. Ltd.		3,480,515	$	6,540,518
Chimei Innolux Corp.a		37,120,008		39,432,287
Clevo Co.		3,685,300		6,330,683
CMC Magnetics Corp.a		18,560,400		4,342,636
Compal Electronics Inc.		33,640,554		39,298,391
Foxconn Technology Co. Ltd.		5,800,742		20,670,274
HTC Corp.		5,800,080		207,654,056
Inotera Memories Inc.a		13,920,024		7,299,976
Inventec Co. Ltd.		13,920,752		7,159,966
Lite-On Technology Corp.		16,322,178		20,301,899
MiTAC International Corp.		8,120,585		3,617,096
Qisda Corp.a		11,600,211		6,941,330
Quanta Computer Inc.		19,720,240		38,516,353
Wistron Corp.		15,080,443		26,818,013
				488,905,548
DIVERSIFIED FINANCIAL SERVICES – 9.09%
Capital Securities Corp.		8,120,200		3,698,817
Chinatrust Financial Holding Co. Ltd.		70,760,596		55,186,938
E.Sun Financial Holding Co. Ltd.		26,680,369		16,323,754
First Financial Holding Co. Ltd.		37,120,386		30,136,058
Fubon Financial Holding Co. Ltd.		39,440,979		49,786,828
Hua Nan Financial Holdings Co. Ltd.		32,480,506		22,929,728
KGI Securities Co. Ltd.		20,880,000		10,002,353
Mega Financial Holding Co. Ltd.		60,320,136		43,495,711
Polaris Securities Co. Ltd.		15,080,991		9,252,297
SinoPac Financial Holdings Co. Ltd.		44,080,193		18,152,498
Taishin Financial Holdings Co. Ltd.a		32,480,117		16,760,339
Yuanta Financial Holding Co. Ltd.		47,560,076		32,376,090
				308,101,411
ELECTRICAL COMPONENTS & EQUIPMENT – 2.75%
Delta Electronics Inc.		13,920,180		57,792,121
Pacific Electric Wire & Cable Co. Ltd.a,b		197		–
Simplo Technology Co. Ltd.		1,427,930		9,360,485
Tatung Co. Ltd.a		37,120,120		8,622,719
Walsin Lihwa Corp.a		22,040,069		11,669,449
Young Fast Optoelectronics Co. Ltd.		653,475		5,733,586
				93,178,360
ELECTRONICS – 15.51%
ASUSTeK Computer Inc.		4,640,670		41,965,248
AU Optronics Corp.a		59,160,830		53,498,717
Cheng Uei Precision Industry Co. Ltd.		2,344,239		4,476,175

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2011

Security	Shares		Value
Chunghwa Picture Tubes Ltd.a		33,640,621	$	4,512,256
Coretronic Corp.		4,640,000		7,432,548
E Ink Holdings Inc.a		5,800,000		10,138,837
HannStar Display Corp.a		35,960,675		6,491,707
Hon Hai Precision Industry Co. Ltd.		68,440,926		250,783,640
Kinsus Interconnect Technology Corp.		2,320,043		7,214,307
Nan Ya Printed Circuit Board Corp.		1,188,453		4,234,915
Pegatron Corp.a		11,600,037		13,648,479
Phison Electronics Corp.		1,160,698		7,296,552
Pixart Imaging Inc.		1,160,682		4,194,484
Synnex Technology International Corp.		9,280,538		21,901,159
TPK Holding Co. Ltd.a		695,000		19,111,507
Tripod Technology Corp.		3,480,488		15,444,395
Unimicron Technology Corp.		10,440,794		19,304,255
Wintek Corp.a		10,440,000		20,039,802
WPG Holdings Co. Ltd.		8,120,243		13,921,820
Ya Hsin Industrial Co. Ltd.a,b		6,845,461		23
				525,610,826
ENERGY – ALTERNATE SOURCES – 0.30%
Motech Industries Inc.		2,343,803		10,242,861
				10,242,861
FOOD – 1.13%
Uni-President Enterprises Co.		30,160,823		38,275,156
				38,275,156
HOME FURNISHINGS – 0.24%
Teco Electric and Machinery Co. Ltd.		13,920,092		8,142,320
				8,142,320
INSURANCE – 3.18%
Cathay Financial Holding Co. Ltd.		51,040,960		81,330,605
China Life Insurance Co. Ltd.		9,360,152		8,889,108
Shin Kong Financial Holding Co. Ltd.a		41,760,411		17,477,968
				107,697,681
INVESTMENT COMPANIES – 0.79%
China Development Financial Holding Corp.		69,600,820		26,673,256
				26,673,256
IRON & STEEL – 2.94%
China Steel Corp.		78,880,467		88,832,341
Feng Hsin Iron & Steel Co. Ltd.		3,480,050		5,843,564

Security	Shares		Value
Tung Ho Steel Enterprise Corp.		4,640,882	$	4,867,567
				99,543,472
LEISURE TIME – 0.27%
Giant Manufacturing Co. Ltd.		2,405,590		9,016,818
				9,016,818
MANUFACTURING – 1.15%
Hiwin Technologies Corp.		1,160,000		7,214,173
Largan Precision Co. Ltd.		1,160,794		31,647,021
				38,861,194
METAL FABRICATE & HARDWARE – 0.43%
Catcher Technology Co. Ltd.		3,480,743		14,509,434
				14,509,434
OIL & GAS – 0.82%
Formosa Petrochemical Corp.		9,280,950		27,986,056
				27,986,056
REAL ESTATE – 0.45%
Farglory Land Development Co. Ltd.		2,320,000		5,038,222
Highwealth Construction Corp.		2,320,000		4,952,432
Ruentex Development Co. Ltd.		3,525,000		5,290,996
				15,281,650
RETAIL – 0.88%
Far Eastern Department Stores Co. Ltd.		6,960,203		10,470,605
President Chain Store Corp.		4,640,215		19,264,684
				29,735,289
SEMICONDUCTORS – 23.73%
Advanced Semiconductor Engineering Inc.		37,120,755		41,554,481
Epistar Corp.		4,640,047		15,832,345
Everlight Electronics Co. Ltd.		2,320,784		6,491,049
Macronix International Co. Ltd.		25,520,527		18,445,266
MediaTek Inc.		7,370,632		82,757,626
MStar Semiconductor Inc.a		2,320,000		20,862,608
Nanya Technology Corp.a		10,290,920		5,483,278
Novatek Microelectronics Corp. Ltd.		3,480,544		10,624,043
Powerchip Technology Corp.a		39,440,018		8,392,622
Powertech Technology Inc.		4,640,760		16,146,793
Realtek Semiconductor Corp.		3,514,621		6,876,355
Richtek Technology Corp.		1,160,416		9,128,226
Siliconware Precision Industries Co. Ltd.		23,200,214		31,898,637

42 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI TAIWAN INDEX FUND

February 28, 2011

Security	Shares		Value
Sino-American Silicon Products Inc.		2,320,000	$	10,645,779
Taiwan Semiconductor Manufacturing Co. Ltd.		192,560,882		456,366,766
Transcend Information Inc.		1,160,905		3,044,024
United Microelectronics Corp.		96,280,501		49,844,345
Vanguard International Semiconductor Corp.		4,640,416		2,542,736
Winbond Electronics Corp.a		22,040,000		7,275,786
				804,212,765
TELECOMMUNICATIONS – 4.02%
Chunghwa Telecom Co. Ltd.		29,000,648		85,889,572
Far EasTone Telecommunications Co. Ltd.		11,600,259		16,573,470
Taiwan Mobile Co. Ltd.		15,080,677		33,713,148
				136,176,190
TEXTILES – 1.32%
Far Eastern New Century Corp.		23,200,201		35,915,193
Formosa Taffeta Co. Ltd.		5,800,515		5,362,361
Tainan Spinning Co. Ltd.		5,800,000		3,431,607
				44,709,161
TRANSPORTATION – 0.93%
Evergreen International Storage & Transport Corp.		2,320,000		1,914,680
Evergreen Marine Corp. Ltd.a		10,440,467		9,195,557
U-Ming Marine Transport Corp.		3,480,800		6,927,198
Wan Hai Lines Ltd.a		8,120,433		5,541,560
Yang Ming Marine Transport Corp.a		9,280,305		7,830,560
				31,409,555
TOTAL COMMON STOCKS
(Cost: $2,170,568,439)				3,388,138,277
SHORT-TERM INVESTMENTS – 0.06%
MONEY MARKET FUNDS – 0.06%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		2,044,565		2,044,565
				2,044,565
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,044,565)				2,044,565

	Value
TOTAL INVESTMENTS IN SECURITIES – 100.05%
(Cost: $2,172,613,004)	$	3,390,182,842
Other Assets, Less Liabilities – (0.05)%		(1,556,235)
NET ASSETS – 100.00%	$	3,388,626,607

^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 43

Schedule of Investments (Unaudited)

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.46%
AGRICULTURE – 3.02%
Charoen Pokphand Foods PCL NVDR		22,152,600	$	17,243,888
				17,243,888
AIRLINES – 1.06%
Thai Airways International PCL NVDR		4,817,466		6,066,147
				6,066,147
AUTO PARTS & EQUIPMENT – 0.13%
Somboon Advance Technology PCL NVDR		1,004,400		771,984
				771,984
BANKS – 28.62%
Bangkok Bank PCL Foreign		860,200		4,599,925
Bangkok Bank PCL NVDR		8,983,800		47,012,527
Bank of Ayudhya PCL NVDR		13,429,200		10,848,773
Kasikornbank PCL Foreign		729,300		2,886,191
Kasikornbank PCL NVDR		12,369,000		47,534,178
Kiatnakin Bank PCL NVDR		1,813,900		1,942,935
Krung Thai Bank PCL NVDR		20,590,200		11,044,294
Siam Commercial Bank PCL NVDR		11,253,000		37,540,670
				163,409,493
BUILDING MATERIALS – 4.47%
Dynasty Ceramic PCL NVDR		1,060,200		1,733,769
Siam Cement PCL NVDR		2,213,400		22,514,061
TPI Polene PCL NVDR		3,515,600		1,264,811
				25,512,641
CHEMICALS – 7.70%
Indorama Ventures PCL NVDR		9,746,710		13,309,081
IRPC PCL NVDR		72,819,000		13,218,167
PTT Chemical PCL NVDR		2,674,100		12,594,289
Siam Gas and Petrochemicals PCL NVDR		2,101,800		1,161,747
Sri Trang Agro-Industry PCL NVDR		2,585,400		2,346,520
Thai Plastic & Chemical PCL NVDR		1,618,200		1,317,847
				43,947,651
COAL – 4.72%
Banpu PCL NVDR		1,134,600		26,940,952
				26,940,952
COMMERCIAL SERVICES – 0.30%
Bangkok Expressway PCL NVDR		2,748,900		1,690,248
				1,690,248

Security	Shares		Value
COMPUTERS – 0.27%
Cal-Comp Electronics (Thailand) PCL NVDR		14,563,800	$	1,562,364
				1,562,364
DIVERSIFIED FINANCIAL SERVICES – 1.61%
Kim Eng Securities (Thailand) PCL NVDR		1,897,200		862,505
Phatra Capital PCL NVDRa		669,600		635,107
Thanachart Capital PCL NVDR		4,817,400		4,687,413
TISCO Financial Group PCL NVDR		2,618,000		3,018,299
				9,203,324
ELECTRIC – 1.31%
Electricity Generating PCL NVDR		967,200		3,147,552
Glow Energy PCL NVDR		3,236,400		4,313,436
				7,460,988
ELECTRONICS – 1.09%
Delta Electronics (Thailand) PCL NVDR		3,217,800		2,894,178
Hana Microelectronics PCL NVDR		3,980,400		3,319,712
				6,213,890
ENGINEERING & CONSTRUCTION – 0.65%
CH. Karnchang PCL NVDR		3,050,400		813,108
Italian-Thai Development PCL NVDRa		9,742,700		1,172,629
Sino-Thai Engineering & Construction PCL NVDR		4,278,000		1,748,978
				3,734,715
ENTERTAINMENT – 0.23%
Major Cineplex Group PCL NVDR		3,180,600		1,341,938
				1,341,938
FOOD – 1.30%
GFPT PCL NVDR		2,771,400		747,802
Khon Kaen Sugar Industry PCL NVDR		3,366,000		1,398,142
Thai Union Frozen Products PCL NVDR		2,473,860		3,378,043
Thai Vegetable Oil PCL NVDR		2,213,480		1,900,371
				7,424,358
HEALTH CARE – SERVICES – 0.47%
Bangkok Chain Hospital PCL NVDR		3,069,000		657,463
Bumrungrad Hospital PCL NVDR		1,851,300		2,013,270
				2,670,733

44 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
HOME BUILDERS – 0.18%
Asian Property Development PCL NVDR		5,030,300	$	1,020,044
				1,020,044
IRON & STEEL – 1.06%
G J Steel PCL NVDRa		115,135,900		1,016,736
G Steel PCL NVDRa		59,501,400		1,362,256
Sahaviriya Steel Industries PCL NVDRa		52,117,240		2,215,942
Tata Steel (Thailand) PCL NVDRa		14,586,000		644,026
Thainox Stainless PCL NVDRa		19,306,800		820,894
				6,059,854
LODGING – 0.67%
Central Plaza Hotel PCL NVDR		3,440,800		519,918
Minor International PCL NVDR		9,374,400		3,280,657
				3,800,575
MEDIA – 1.51%
BEC World PCL NVDR		7,218,200		7,908,739
MCOT PCL NVDR		748,000		721,701
				8,630,440
METAL FABRICATE & HARDWARE – 0.12%
STP & I PCL NVDR		799,800		660,505
				660,505
OIL & GAS – 25.85%
Bangchak Petroleum PCL NVDR		1,664,300		990,687
Esso (Thailand) PCL NVDR		7,592,200		2,085,837
PTT Aromatics & Refining PCL NVDR		8,091,000		9,791,235
PTT Exploration & Production PCL NVDR		8,556,000		50,930,237
PTT PCL NVDR		6,283,200		69,253,913
Thai Oil PCL NVDR		6,007,800		14,491,423
				147,543,332
PACKAGING & CONTAINERS – 0.24%
Polyplex PCL NVDR		1,767,000		1,358,119
				1,358,119
REAL ESTATE – 2.40%
Amata Corp. PCL NVDR		3,814,800		1,746,760
Bangkok Land PCL NVDRa		58,100,900		1,178,170
Hemaraj Land and Development PCL NVDR		32,014,400		1,863,798
LPN Development PCL NVDR		3,255,000		984,751
Pruksa Real Estate PCL NVDR		4,057,900		2,322,592

Security	Shares		Value
Quality Houses PCL NVDR		24,871,000	$	1,691,960
Rojana Industrial Park PCL NVDR		2,083,200		763,102
Sansiri PCL NVDR		3,645,600		727,332
Supalai PCL NVDR		4,426,800		1,505,764
Ticon Industrial Connection PCL NVDR		2,225,383		917,083
				13,701,312
RETAIL – 5.08%
CP All PCL NVDR		16,219,200		20,688,432
Home Product Center PCL NVDR		9,574,433		2,661,739
Robinson Department Store PCL NVDR		3,272,500		2,322,592
Siam Makro PCL NVDR		725,400		3,309,675
				28,982,438
TELECOMMUNICATIONS – 4.24%
Advanced Information Service PCL NVDR		6,565,800		17,072,154
Jasmine International PCL NVDR		26,709,600		1,651,059
Samart Corp. PCL NVDR		2,157,600		592,767
Thaicom PCL NVDRa		3,236,400		603,352
True Corp. PCL NVDRa		20,850,600		4,262,183
				24,181,515
TRANSPORTATION – 0.85%
Bangkok Metro PCL NVDRa		19,623,000		417,169
Precious Shipping PCL NVDR		1,990,200		1,152,135
Regional Container Lines PCL NVDRa		1,477,300		502,499
Tanayong PCL NVDRa		60,905,900		1,414,332
Thoresen Thai Agencies PCL NVDRa		2,343,630		1,395,064
				4,881,199
WATER – 0.31%
Thai Tap Water Supply PCL NVDR		8,732,900		1,770,858
				1,770,858
TOTAL COMMON STOCKS
(Cost: $485,519,796)				567,785,505
WARRANTS – 0.01%
REAL ESTATE – 0.01%
Bangkok Land PCL NVDR (Expires 9/22/15)a		6,189,157		32,388
				32,388
TOTAL WARRANTS
(Cost: $0)				32,388

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI THAILAND INVESTABLE MARKET INDEX FUND

February 28, 2011

Security	Shares		Value
SHORT-TERM INVESTMENTS – 0.09%
MONEY MARKET FUNDS – 0.09%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%b,c		507,235	$	507,235
				507,235
TOTAL SHORT-TERM INVESTMENTS
(Cost: $507,235)				507,235
TOTAL INVESTMENTS IN SECURITIES – 99.56%
(Cost: $486,027,031)				568,325,128
Other Assets, Less Liabilities – 0.44%				2,538,530
NET ASSETS – 100.00%			$	570,863,658

NVDR – Non-Voting Depositary Receipts

^a  Non-income earning security.

^b  Affiliated issuer. See Note 2.

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

See notes to financial statements.

46 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^®, INC.

February 28, 2011

	iShares MSCI Australia Index Fund			iShares MSCI Hong Kong Index Fund			iShares MSCI Japan Small Cap Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	2,749,236,007		$	1,969,378,882		$	41,911,130
Affiliated issuers (Note 2)		31,358,656			41,707,746			261,271
Total cost of investments	$	2,780,594,663		$	2,011,086,628		$	42,172,401
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	3,108,179,466		$	1,989,745,227		$	43,958,834
Affiliated issuers (Note 2)		31,358,656			41,707,746			261,271
Total fair value of investments		3,139,538,122			2,031,452,973			44,220,105
Foreign currencies, at valueb		5,635,327			5,011,057			19,473
Receivables:
Investment securities sold		–			26,626,768			–
Due from custodian (Note 4)		–			853,808			–
Dividends and interest		22,171,534			316,486			116,485
Capital shares sold		–			–			22,585
Total Assets		3,167,344,983			2,064,261,092			44,378,648
LIABILITIES
Payables:
Investment securities purchased		–			25,271,539			–
Collateral for securities on loan (Note 5)		31,241,783			40,762,750			237,931
Investment advisory fees (Note 2)		1,234,597			790,546			14,637
Total Liabilities		32,476,380			66,824,835			252,568
NET ASSETS	$	3,134,868,603		$	1,997,436,257		$	44,126,080
Net assets consist of:
Paid-in capital	$	2,912,764,855		$	2,146,405,640		$	41,248,714
Distributions in excess of net investment income		(4,348,522	)		(2,392,451	)		(290,726	)
Undistributed net realized gain (accumulated net realized loss)		(132,760,280	)		(166,946,119	)		1,119,905
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		359,212,550			20,369,187			2,048,187
NET ASSETS	$	3,134,868,603		$	1,997,436,257		$	44,126,080
Shares outstandingc		120,800,000			107,325,000			900,000
Net asset value per share	$	25.95		$	18.61		$	49.03

^a  Securities on loan with values of $29,678,276, $38,671,569 and $225,911, respectively. See Note 5.

^b  Cost of foreign currencies: $5,600,729, $5,008,381 and $19,302, respectively.

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

See notes to financial statements.

FINANCIAL STATEMENTS 47

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2011

	iShares MSCI Malaysia Index Fund			iShares MSCI Pacific ex-Japan Index Fund			iShares MSCI Singapore Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	503,252,835		$	3,081,596,054		$	1,671,638,154
Affiliated issuers (Note 2)		184,303			86,882,085			143,575,639
Total cost of investments	$	503,437,138		$	3,168,478,139		$	1,815,213,793
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	920,509,633		$	3,961,161,202		$	1,886,507,361
Affiliated issuers (Note 2)		184,303			86,882,085			143,575,639
Total fair value of investments		920,693,936			4,048,043,287			2,030,083,000
Foreign currencies, at valueb		1,999,443			7,406,678			3,030,903
Receivables:
Investment securities sold		458,868			4,426,152			18,913,591
Dividends and interest		1,015,369			19,479,532			63,394
Total Assets		924,167,616			4,079,355,649			2,052,090,888
LIABILITIES
Payables:
Investment securities purchased		1,262,389			9,936,039			17,042,418
Collateral for securities on loan (Note 5)		–			86,626,556			143,054,199
Capital shares redeemed		–			–			850,996
Investment advisory fees (Note 2)		386,645			1,568,534			815,000
Total Liabilities		1,649,034			98,131,129			161,762,613
NET ASSETS	$	922,518,582		$	3,981,224,520		$	1,890,328,275
Net assets consist of:
Paid-in capital	$	581,582,384		$	3,309,874,702		$	1,869,670,287
Undistributed (distributions in excess of) net investment income		775,079			(19,885,050	)		(28,139,976	)
Accumulated net realized loss		(77,106,685	)		(188,564,106	)		(166,087,550	)
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		417,267,804			879,798,974			214,885,514
NET ASSETS	$	922,518,582		$	3,981,224,520		$	1,890,328,275
Shares outstandingc		65,700,000			84,600,000			145,100,000
Net asset value per share	$	14.04		$	47.06		$	13.03

^a  Securities on loan with values of $–, $81,853,621 and $135,200,233, respectively. See Note 5.

^b  Cost of foreign currencies: $1,989,984, $7,378,374 and $3,012,965, respectively.

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

See notes to financial statements.

48 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^®, INC.

February 28, 2011

	iShares MSCI South Korea Index Fund			iShares MSCI Taiwan Index Fund			iShares MSCI Thailand Investable Market Index Fund
ASSETS
Investments, at cost:
Unaffiliated issuers	$	2,353,178,259		$	2,170,568,439		$	485,519,796
Affiliated issuers (Note 2)		230,350,714			2,044,565			507,235
Total cost of investments	$	2,583,528,973		$	2,172,613,004		$	486,027,031
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	4,204,926,478		$	3,388,138,277		$	567,817,893
Affiliated issuers (Note 2)		230,350,714			2,044,565			507,235
Total fair value of investments		4,435,277,192			3,390,182,842			568,325,128
Receivables:
Investment securities sold		8,877,854			47,338,148			3,330,925
Dividends and interest		28,770,915			172			969,419
Capital shares sold		–			–			3,045,211
Total Assets		4,472,925,961			3,437,521,162			575,670,683
LIABILITIES
Payables:
Investment securities purchased		8,087,883			47,089,730			4,318,440
Collateral for securities on loan (Note 5)		224,560,542			–			–
Capital shares redeemed		–			–			234,188
Foreign taxes (Note 1)		–			200,637			–
Investment advisory fees (Note 2)		1,980,866			1,604,188			254,397
Total Liabilities		234,629,291			48,894,555			4,807,025
NET ASSETS	$	4,238,296,670		$	3,388,626,607		$	570,863,658
Net assets consist of:
Paid-in capital	$	3,487,258,753		$	3,223,279,147		$	450,141,384
Undistributed net investment income (accumulated net investment loss)		1,895,065			(8,268,524	)		532,316
Undistributed net realized gain (accumulated net realized loss)		(1,103,050,285	)		(1,043,953,787	)		37,882,364
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		1,852,193,137			1,217,569,771			82,307,594
NET ASSETS	$	4,238,296,670		$	3,388,626,607		$	570,863,658
Shares outstandingb		73,550,000			232,000,000			9,300,000
Net asset value per share	$	57.62		$	14.61		$	61.38

^a  Securities on loan with values of $214,507,625, $– and $–, respectively. See Note 5.

^b  $0.001 par value, number of shares authorized: 200 million, 900 million and 200 million, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 49

Statements of Operations (Unaudited)

iSHARES^®, INC.

Six months ended February 28, 2011

	iShares MSCI Australia Index Fund			iShares MSCI Hong Kong Index Fund			iShares MSCI Japan Small Cap Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	61,386,241		$	19,060,409		$	374,894
Interest from affiliated issuers (Note 2)		749			836			12
Securities lending income from affiliated issuers (Note 2)		80,102			100,558			7,382
Total investment income		61,467,092			19,161,803			382,288
EXPENSES
Investment advisory fees (Note 2)		7,374,965			5,432,592			100,062
Total expenses		7,374,965			5,432,592			100,062
Net investment income		54,092,127			13,729,211			282,226
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(29,798,962	)		(54,186,210	)		(65,540	)
In-kind redemptions		46,983,259			105,236,978			2,064,217
Foreign currency transactions		2,743,634			(193	)		5,840
Net realized gain		19,927,931			51,050,575			2,004,517
Net change in unrealized appreciation/depreciation on:
Investments		559,826,754			267,613,257			5,416,836
Translation of assets and liabilities in foreign currencies		380,577			4,794			(3,242	)
Net change in unrealized appreciation/depreciation		560,207,331			267,618,051			5,413,594
Net realized and unrealized gain		580,135,262			318,668,626			7,418,111
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	634,227,389		$	332,397,837		$	7,700,337

^a  Net of foreign withholding tax of $283,372, $– and $28,299, respectively.

See notes to financial statements.

50 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2011

	iShares MSCI Malaysia Index Fund		iShares MSCI Pacific ex-Japan Index Fund			iShares MSCI Singapore Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	17,109,326	$	70,534,917		$	16,581,543
Interest from affiliated issuers (Note 2)		472		2,183			1,424
Securities lending income from affiliated issuers (Note 2)		–		371,677			912,330
Total investment income		17,109,798		70,908,777			17,495,297
EXPENSES
Investment advisory fees (Note 2)		2,586,310		10,232,658			5,508,338
Total expenses		2,586,310		10,232,658			5,508,338
Net investment income		14,523,488		60,676,119			11,986,959
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		8,822,111		(50,021,149	)		(10,680,553	)
In-kind redemptions		–		231,248,782			73,679,060
Foreign currency transactions		71,554		2,877,010			642,095
Net realized gain		8,893,665		184,104,643			63,640,602
Net change in unrealized appreciation/depreciation on:
Investments		64,456,901		538,603,195			95,469,207
Translation of assets and liabilities in foreign currencies		4,521		380,182			1,383
Net change in unrealized appreciation/depreciation		64,461,422		538,983,377			95,470,590
Net realized and unrealized gain		73,355,087		723,088,020			159,111,192
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	87,878,575	$	783,764,139		$	171,098,151

^a  Net of foreign withholding tax of $1,969,913, $287,571 and $188,171, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Operations (Unaudited) (Continued)

iSHARES^®, INC.

Six months ended February 28, 2011

	iShares MSCI South Korea Index Fund			iShares MSCI Taiwan Index Fund			iShares MSCI Thailand Investable Market Index Fund
NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	28,290,561		$	3,021,442		$	6,308,718
Interest from unaffiliated issuers		189			160			–
Interest from affiliated issuers (Note 2)		3,293			4,269			987
Securities lending income from affiliated issuers (Note 2)		2,109,949			–			–
		30,403,922			3,025,871			6,309,705
Less: Other foreign taxes (Note 1)		–			–			(25,049	)
Total investment income		30,403,992			3,025,871			6,284,656
EXPENSES
Investment advisory fees (Note 2)		11,727,879			9,293,530			1,931,117
Total expenses		11,727,879			9,293,530			1,931,117
Net investment income (loss)		18,676,113			(6,267,659	)		4,353,539
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(1,818,968	)		24,521,836			(235,885	)
In-kind redemptions		–			–			44,072,682
Foreign currency transactions		16,559			87,609			64,777
Net realized gain (loss)		(1,802,409	)		24,609,445			43,901,574
Net change in unrealized appreciation/depreciation on:
Investments		654,017,242			547,273,447			19,450,818
Translation of assets and liabilities in foreign currencies		391,801			96,234			(9,849	)
Net change in unrealized appreciation/depreciation		654,409,043			547,369,681			19,440,969
Net realized and unrealized gain		652,606,634			571,979,126			63,342,543
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	671,282,747		$	565,711,467		$	67,696,082

^a  Net of foreign withholding tax of $5,475,185, $25,776 and $715,919, respectively.

See notes to financial statements.

52 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Australia Index Fund						iShares MSCI Hong Kong Index Fund
	Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	54,092,127		$	74,772,713		$	13,729,211		$	48,983,169
Net realized gain		19,927,931			146,569,966			51,050,575			54,878,193
Net change in unrealized appreciation/depreciation		560,207,331			(209,874,740	)		267,618,051			112,823,832
Net increase in net assets resulting from operations		634,227,389			11,467,939			332,397,837			216,685,194
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(73,011,318	)		(86,675,542	)		(18,864,231	)		(51,090,437	)
Total distributions to shareholders		(73,011,318	)		(86,675,542	)		(18,864,231	)		(51,090,437	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		520,260,598			1,343,260,266			304,280,458			906,802,573
Cost of shares redeemed		(143,425,210	)		(664,911,916	)		(596,694,631	)		(1,047,857,371	)
Net increase (decrease) in net assets from capital share transactions		376,835,388			678,348,350			(292,414,173	)		(141,054,798	)
INCREASE IN NET ASSETS		938,051,459			603,140,747			21,119,433			24,539,959
NET ASSETS
Beginning of period		2,196,817,144			1,593,676,397			1,976,316,824			1,951,776,865
End of period	$	3,134,868,603		$	2,196,817,144		$	1,997,436,257		$	1,976,316,824
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(4,348,522	)	$	14,570,669		$	(2,392,451	)	$	2,742,569
SHARES ISSUED AND REDEEMED
Shares sold		21,600,000			58,000,000			15,900,000			56,325,000
Shares redeemed		(5,800,000	)		(31,400,000	)		(31,950,000	)		(68,625,000	)
Net increase (decrease) in shares outstanding		15,800,000			26,600,000			(16,050,000	)		(12,300,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 53

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, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	282,226		$	485,039		$	14,523,488		$	12,702,745
Net realized gain		2,004,517			731,166			8,893,665			9,173,736
Net change in unrealized appreciation/depreciation		5,413,594			(3,559,226	)		64,461,422			157,413,356
Net increase (decrease) in net assets resulting from operations		7,700,337			(2,343,021	)		87,878,575			179,289,837
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(497,558	)		(721,861	)		(16,278,362	)		(12,611,955	)
Total distributions to shareholders		(497,558	)		(721,861	)		(16,278,362	)		(12,611,955	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		9,742,416			8,487,461			224,250,223			215,972,540
Cost of shares redeemed		(9,483,428	)		(4,314,452	)		(167,474,044	)		(101,507,881	)
Net increase in net assets from capital share transactions		258,988			4,173,009			56,776,179			114,464,659
INCREASE IN NET ASSETS		7,461,767			1,108,127			128,376,392			281,142,541
NET ASSETS
Beginning of period		36,664,313			35,556,186			794,142,190			512,999,649
End of period	$	44,126,080		$	36,664,313		$	922,518,582		$	794,142,190
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(290,726	)	$	(75,394	)	$	775,079		$	2,529,953
SHARES ISSUED AND REDEEMED
Shares sold		200,000			200,000			16,350,000			18,150,000
Shares redeemed		(200,000	)		(100,000	)		(11,850,000	)		(9,375,000	)
Net increase in shares outstanding		–			100,000			4,500,000			8,775,000

See notes to financial statements.

54 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Pacific ex-Japan Index Fund						iShares MSCI Singapore Index Fund
	Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	60,676,119		$	116,593,834		$	11,986,959		$	41,418,493
Net realized gain		184,104,643			157,973,599			63,640,602			10,055,486
Net change in unrealized appreciation/depreciation		538,983,377			44,872,924			95,470,590			241,937,285
Net increase in net assets resulting from operations		783,764,139			319,440,357			171,098,151			293,411,264
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(90,820,271	)		(128,810,457	)		(49,054,490	)		(48,264,119	)
Total distributions to shareholders		(90,820,271	)		(128,810,457	)		(49,054,490	)		(48,264,119	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		329,583,703			357,007,662			265,806,674			360,350,218
Cost of shares redeemed		(479,451,721	)		(492,042,511	)		(227,522,843	)		(169,535,152	)
Net increase (decrease) in net assets from capital share transactions		(149,868,018	)		(135,034,849	)		38,283,831			190,815,066
INCREASE IN NET ASSETS		543,075,850			55,595,051			160,327,492			435,962,211
NET ASSETS
Beginning of period		3,438,148,670			3,382,553,619			1,730,000,783			1,294,038,572
End of period	$	3,981,224,520		$	3,438,148,670		$	1,890,328,275		$	1,730,000,783
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(19,885,050	)	$	10,259,102		$	(28,139,976	)	$	8,927,555
SHARES ISSUED AND REDEEMED
Shares sold		7,200,000			8,700,000			20,000,000			30,800,000
Shares redeemed		(10,200,000	)		(12,900,000	)		(17,000,000	)		(15,000,000	)
Net increase (decrease) in shares outstanding		(3,000,000	)		(4,200,000	)		3,000,000			15,800,000

See notes to financial statements.

FINANCIAL STATEMENTS 55

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, 2011 (Unaudited)			Year ended August 31, 2010			Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	18,676,113		$	20,724,754		$	(6,267,659	)	$	61,190,834
Net realized gain (loss)		(1,802,409	)		(73,908,563	)		24,609,445			(21,282,233	)
Net change in unrealized appreciation/depreciation		654,409,043			389,247,673			547,369,681			349,112,650
Net increase in net assets resulting from operations		671,282,747			336,063,864			565,711,467			389,021,151
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(11,642,397	)		(25,921,316	)		(61,236,384	)		(57,723,897	)
Total distributions to shareholders		(11,642,397	)		(25,921,316	)		(61,236,384	)		(57,723,897	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		418,091,748			828,063,901			411,981,447			147,898,696
Cost of shares redeemed		(94,603,047	)		(281,588,841	)		(249,268,456	)		(793,088,733	)
Net increase (decrease) in net assets from capital share transactions		323,488,701			546,475,060			162,712,991			(645,190,037	)
INCREASE (DECREASE) IN NET ASSETS		983,129,051			856,617,608			667,188,074			(313,892,783	)
NET ASSETS
Beginning of period		3,255,167,619			2,398,550,011			2,721,438,533			3,035,331,316
End of period	$	4,238,296,670		$	3,255,167,619		$	3,388,626,607		$	2,721,438,533
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period	$	1,895,065		$	(5,138,651	)	$	(8,268,524	)	$	59,235,519
SHARES ISSUED AND REDEEMED
Shares sold		7,050,000			17,150,000			27,000,000			12,000,000
Shares redeemed		(1,650,000	)		(6,100,000	)		(18,200,000	)		(66,200,000	)
Net increase (decrease) in shares outstanding		5,400,000			11,050,000			8,800,000			(54,200,000	)

See notes to financial statements.

56 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Thailand Investable Market Index Fund
	Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,353,539		$	8,070,335
Net realized gain		43,901,574			23,735,613
Net change in unrealized appreciation/depreciation		19,440,969			63,106,858
Net increase in net assets resulting from operations		67,696,082			94,912,806
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(5,745,191	)		(6,685,017	)
Total distributions to shareholders		(5,745,191	)		(6,685,017	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		135,807,707			553,374,038
Cost of shares redeemed		(147,198,745	)		(215,318,898	)
Net increase (decrease) in net assets from capital share transactions		(11,391,038	)		338,055,140
INCREASE IN NET ASSETS		50,559,853			426,282,929
NET ASSETS
Beginning of period		520,303,805			94,020,876
End of period	$	570,863,658		$	520,303,805
Undistributed net investment income included in net assets at end of period	$	532,316		$	1,923,968
SHARES ISSUED AND REDEEMED
Shares sold		2,250,000			11,950,000
Shares redeemed		(2,400,000	)		(5,050,000	)
Net increase (decrease) in shares outstanding		(150,000	)		6,900,000

See notes to financial statements.

FINANCIAL STATEMENTS 57

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Australia Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	20.92		$	20.33		$	23.96		$	27.62		$	21.59		$	18.28
Income from investment operations:
Net investment incomea		0.47			0.72			0.78			0.96			0.89			0.75
Net realized and unrealized gain (loss)b		5.19			0.69			(3.47	)		(3.34	)		6.24			3.23
Total from investment operations		5.66			1.41			(2.69	)		(2.38	)		7.13			3.98
Less distributions from:
Net investment income		(0.63	)		(0.82	)		(0.94	)		(1.28	)		(1.10	)		(0.67	)
Total distributions		(0.63	)		(0.82	)		(0.94	)		(1.28	)		(1.10	)		(0.67	)
Net asset value, end of period	$	25.95		$	20.92		$	20.33		$	23.96		$	27.62		$	21.59
Total return		27.17	%c		6.86	%		(8.91	)%		(9.25	)%		33.97	%		22.35	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,134,869		$	2,196,817		$	1,593,676		$	1,059,092		$	1,464,112		$	686,407
Ratio of expenses to average net assetsd		0.53	%		0.53	%		0.55	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to average net assetsd		3.85	%		3.24	%		4.92	%		3.38	%		3.46	%		3.75	%
Portfolio turnover ratee		4	%		8	%		14	%		10	%		10	%		7	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

58 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Hong Kong Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	16.02		$	14.39		$	15.87		$	18.30		$	14.20		$	13.01
Income from investment operations:
Net investment incomea		0.12			0.42			0.52			0.45			0.47			0.38
Net realized and unrealized gain (loss)b		2.64			1.69			(1.46	)		(2.25	)		3.94			1.17
Total from investment operations		2.76			2.11			(0.94	)		(1.80	)		4.41			1.55
Less distributions from:
Net investment income		(0.17	)		(0.48	)		(0.54	)		(0.63	)		(0.31	)		(0.36	)
Total distributions		(0.17	)		(0.48	)		(0.54	)		(0.63	)		(0.31	)		(0.36	)
Net asset value, end of period	$	18.61		$	16.02		$	14.39		$	15.87		$	18.30		$	14.20
Total return		17.22	%c		14.85	%		(4.77	)%		(10.54	)%		31.44	%		12.20	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,997,436		$	1,976,317		$	1,951,777		$	1,675,184		$	1,445,309		$	882,712
Ratio of expenses to average net assetsd		0.53	%		0.53	%		0.55	%		0.52	%		0.52	%		0.54	%
Ratio of net investment income to average net assetsd		1.33	%		2.67	%		4.29	%		2.34	%		2.92	%		2.87	%
Portfolio turnover ratee		12	%		5	%		9	%		17	%		9	%		10	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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 Japan Small Cap Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Period from Dec. 20, 2007a to Aug. 31, 2008
Net asset value, beginning of period	$	40.74		$	44.45		$	43.24		$	48.85
Income from investment operations:
Net investment incomeb		0.33			0.61			0.60			0.29
Net realized and unrealized gain (loss)c		8.51			(3.39	)		1.29			(5.74	)
Total from investment operations		8.84			(2.78	)		1.89			(5.45	)
Less distributions from:
Net investment income		(0.55	)		(0.93	)		(0.68	)		(0.16	)
Total distributions		(0.55	)		(0.93	)		(0.68	)		(0.16	)
Net asset value, end of period	$	49.03		$	40.74		$	44.45		$	43.24
Total return		21.82	%d		(6.25	)%		4.62	%		(11.19	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	44,126		$	36,664		$	35,556		$	34,594
Ratio of expenses to average net assetse		0.53	%		0.53	%		0.56	%		0.53	%
Ratio of net investment income to average net assetse		1.48	%		1.46	%		1.59	%		0.93	%
Portfolio turnover ratef		2	%		7	%		7	%		7	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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.

60 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Malaysia Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	12.98		$	9.79		$	9.39		$	10.97		$	7.75		$	7.19
Income from investment operations:
Net investment incomea		0.21			0.24			0.28			0.34			0.34			0.26
Net realized and unrealized gain (loss)b		1.09			3.20			0.40			(1.31	)		3.08			0.59
Total from investment operations		1.30			3.44			0.68			(0.97	)		3.42			0.85
Less distributions from:
Net investment income		(0.24	)		(0.25	)		(0.28	)		(0.61	)		(0.20	)		(0.29	)
Total distributions		(0.24	)		(0.25	)		(0.28	)		(0.61	)		(0.20	)		(0.29	)
Net asset value, end of period	$	14.04		$	12.98		$	9.79		$	9.39		$	10.97		$	7.75
Total return		10.02	%c		35.76	%		8.00	%		(9.86	)%		44.64	%		12.35	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	922,519		$	794,142		$	513,000		$	473,091		$	741,440		$	374,334
Ratio of expenses to average net assetsd		0.53	%		0.53	%		0.56	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to average netassetsd		2.95	%		2.17	%		3.45	%		2.84	%		3.21	%		3.46	%
Portfolio turnover ratee		28	%		29	%		52	%		92	%		87	%		60	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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, 2011 and the years ended August 31, 2010, August 31, 2009, August 31, 2008, August 31, 2007 and August 31, 2006 would have been 20%, 10%, 12%, 16%, 3% and 9%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 61

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Pacific ex-Japan Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a
Net asset value, beginning of period	$	39.25		$	36.85		$	41.37		$	48.31		$	37.34		$	32.52
Income from investment operations:
Net investment incomeb		0.67			1.25			1.38			1.64			1.52			1.28
Net realized and unrealized gain (loss)c		8.13			2.52			(4.79	)		(6.01	)		11.18			4.77
Total from investment operations		8.80			3.77			(3.41	)		(4.37	)		12.70			6.05
Less distributions from:
Net investment income		(0.99	)		(1.37	)		(1.11	)		(2.51	)		(1.73	)		(1.23	)
Net realized gain		–			–			–			(0.06	)		–			–
Total distributions		(0.99	)		(1.37	)		(1.11	)		(2.57	)		(1.73	)		(1.23	)
Net asset value, end of period	$	47.06		$	39.25		$	36.85		$	41.37		$	48.31		$	37.34
Total return		22.47	%d		10.27	%		(7.23	)%		(9.87	)%		34.86	%		19.17	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,981,225		$	3,438,149		$	3,382,554		$	3,263,971		$	3,536,295		$	2,094,931
Ratio of expenses to average net assetse		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to averagenet assetse		2.96	%		3.09	%		4.83	%		3.35	%		3.43	%		3.67	%
Portfolio turnover ratef		5	%		7	%		10	%		14	%		11	%		8	%

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

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

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

See notes to financial statements.

62 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Singapore Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	12.17		$	10.25		$	11.44		$	13.28		$	9.11		$	7.77
Income from investment operations:
Net investment incomea		0.08			0.32			0.32			0.47			0.47			0.40
Net realized and unrealized gain (loss)b		1.09			1.97			(1.16	)		(1.67	)		4.01			1.23
Total from investment operations		1.17			2.29			(0.84	)		(1.20	)		4.48			1.63
Less distributions from:
Net investment income		(0.31	)		(0.37	)		(0.35	)		(0.64	)		(0.31	)		(0.29	)
Total distributions		(0.31	)		(0.37	)		(0.35	)		(0.64	)		(0.31	)		(0.29	)
Net asset value, end of period	$	13.03		$	12.17		$	10.25		$	11.44		$	13.28		$	9.11
Total return		9.55	%c		22.68	%		(5.87	)%		(9.55	)%		49.92	%		21.61	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,890,328		$	1,730,001		$	1,294,039		$	1,476,968		$	1,669,210		$	574,620
Ratio of expenses to average net assetsd		0.53	%		0.53	%		0.55	%		0.52	%		0.51	%		0.54	%
Ratio of net investment income to averagenet assetsd		1.14	%		2.80	%		3.97	%		3.56	%		3.80	%		4.74	%
Portfolio turnover ratee		4	%		9	%		15	%		16	%		8	%		6	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 63

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI South Korea Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	47.76		$	42.01		$	43.55		$	63.60		$	46.00		$	34.75
Income from investment operations:
Net investment incomea		0.27			0.32			0.30			0.80			0.51			0.31
Net realized and unrealized gain (loss)b		9.76			5.82			(1.45	)		(19.87	)		17.42			11.20
Total from investment operations		10.03			6.14			(1.15	)		(19.07	)		17.93			11.51
Less distributions from:
Net investment income		(0.17	)		(0.39	)		(0.39	)		(0.98	)		(0.33	)		(0.26	)
Total distributions		(0.17	)		(0.39	)		(0.39	)		(0.98	)		(0.33	)		(0.26	)
Net asset value, end of period	$	57.62		$	47.76		$	42.01		$	43.55		$	63.60		$	46.00
Total return		20.99	%c		14.65	%		(2.31	)%		(30.35	)%		39.18	%		33.16	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	4,238,297		$	3,255,168		$	2,398,550		$	1,985,763		$	2,429,453		$	1,621,334
Ratio of expenses to average net assetsd,e		0.59	%		0.61	%		0.65	%		0.63	%		0.68	%		0.70	%
Ratio of net investment income to averagenet assetsd		0.94	%		0.67	%		0.91	%		1.35	%		0.96	%		0.71	%
Portfolio turnover ratef		4	%		14	%		62	%		42	%		20	%		47	%

a Based on average shares outstanding throughout each period.

b The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

c Not annualized.

d Annualized for periods of less than one year.

e Amounts have been adjusted as necessary to be consistent with current period presentation of foreign taxes.

f Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2011 and the years ended August 31, 2010, August 31, 2009, August 31, 2008, August 31, 2007 and August 31, 2006 would have been 2%, 6%, 8%, 15%, 6% and 14%, respectively. See Note 4.

See notes to financial statements.

64 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Taiwan Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	12.19		$	10.94		$	13.13		$	15.99		$	12.57		$	11.57
Income from investment operations:
Net investment income (loss)a		(0.03	)		0.23			0.30			0.54			0.38			0.34
Net realized and unrealized gain (loss)b		2.74			1.23			(1.89	)		(3.01	)		3.34			0.80
Total from investment operations		2.71			1.46			(1.59	)		(2.47	)		3.72			1.14
Less distributions from:
Net investment income		(0.29	)		(0.21	)		(0.60	)		(0.39	)		(0.30	)		(0.14	)
Total distributions		(0.29	)		(0.21	)		(0.60	)		(0.39	)		(0.30	)		(0.14	)
Net asset value, end of period	$	14.61		$	12.19		$	10.94		$	13.13		$	15.99		$	12.57
Total return		22.19	%c		13.30	%		(9.67	)%		(15.69	)%		29.91	%		9.84	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,388,627		$	2,721,439		$	3,035,331		$	2,918,008		$	2,769,764		$	1,893,751
Ratio of expenses to average net assetsd,e		0.59	%		0.61	%		0.65	%		0.63	%		0.68	%		0.70	%
Ratio of net investment income (loss) toaverage net assetsd		(0.40	)%		1.90	%		3.18	%		3.54	%		2.61	%		2.74	%
Portfolio turnover ratef		13	%		9	%		52	%		33	%		35	%		29	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Not annualized.

^d  Annualized for periods of less than one year.

^e  Amounts have been adjusted as necessary to be consistent with current period presentation of foreign taxes.

^f  Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2011 and the years ended August 31, 2010, August 31, 2009, August 31, 2008, August 31, 2007 and August 31, 2006 would have been 8%, 4%, 14%, 11%, 12% and 10%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 65

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Thailand Investable Market Index Fund
	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Period from Mar. 26, 2008a to Aug. 31, 2008
Net asset value, beginning of period	$	55.06		$	36.87		$	38.83		$	50.03
Income from investment operations:
Net investment incomeb		0.41			1.44			1.17			0.32
Net realized and unrealized gain (loss)c		6.43			17.95			(1.88	)		(11.52	)
Total from investment operations		6.84			19.39			(0.71	)		(11.20	)
Less distributions from:
Net investment income		(0.52	)		(1.20	)		(1.25	)		–
Total distributions		(0.52	)		(1.20	)		(1.25	)		–
Net asset value, end of period	$	61.38		$	55.06		$	36.87		$	38.83
Total return		12.41	%d		53.19	%		(0.33	)%		(22.39	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	570,864		$	520,304		$	94,021		$	58,248
Ratio of expenses to average net assetse,f		0.59	%		0.61	%		0.65	%		0.63	%
Ratio of net investment income to average net assetse		1.33	%		3.22	%		4.00	%		1.68	%
Portfolio turnover rateg		9	%		14	%		15	%		19	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

^f  Amounts have been adjusted as necessary to be consistent with current period presentation of foreign taxes.

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

See notes to financial statements.

66 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^®, INC.

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

These financial statements relate only to the iShares MSCI Australia, iShares MSCI Hong Kong, iShares MSCI Japan Small Cap, iShares MSCI Malaysia, iShares MSCI Pacific ex-Japan, iShares MSCI Singapore, iShares MSCI South Korea, iShares MSCI Taiwan and iShares MSCI Thailand Investable Market Index Funds (each, a “Fund”, collectively, the “Funds”).

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. 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 issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

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 67

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”); and

• 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 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.

68 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)(Continued)

iSHARES^®, INC.

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of February 28, 2011. 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	Level 1		Level 2		Level 3		Total
Australia
Common Stocks	$	3,108,176,857	$	–	$	2,609	$	3,108,179,466
Short-Term Investments		31,358,656		–		–		31,358,656
	$	3,139,535,513	$	–	$	2,609	$	3,139,538,122
Hong Kong
Common Stocks	$	1,988,146,887	$	–	$	–	$	1,988,146,887
Rights		–		–		1,598,340		1,598,340
Short-Term Investments		41,707,746		–		–		41,707,746
	$	2,029,854,633	$	–	$	1,598,340	$	2,031,452,973
Japan Small Cap
Common Stocks	$	43,958,834	$	–	$	–	$	43,958,834
Short-Term Investments		261,271		–		–		261,271
	$	44,220,105	$	–	$	–	$	44,220,105
Malaysia
Common Stocks	$	920,509,633	$	–	$	–	$	920,509,633
Short-Term Investments		184,303		–		–		184,303
	$	920,693,936	$	–	$	–	$	920,693,936
Pacific ex-Japan
Common Stocks	$	3,960,472,670	$	–	$	3,730	$	3,960,476,400
Rights		–		–		684,802		684,802
Short-Term Investments		86,882,085		–		–		86,882,085
	$	4,047,354,755	$	–	$	688,532	$	4,048,043,287
Singapore
Common Stocks	$	1,886,507,361	$	–	$	–	$	1,886,507,361
Short-Term Investments		143,575,639		–		–		143,575,639
	$	2,030,083,000	$	–	$	–	$	2,030,083,000

NOTES TO FINANCIAL STATEMENTS 69

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

	Investments in Securities
iShares MSCI Index Fund	Level 1		Level 2		Level 3		Total
South Korea
Common Stocks	$	4,077,890,971	$	–	$	–	$	4,077,890,971
Preferred Stocks		127,035,507		–		–		127,035,507
Short-Term Investments		230,350,714		–		–		230,350,714
	$	4,435,277,192	$	–	$	–	$	4,435,277,192
Taiwan
Common Stocks	$	3,388,138,254	$	–	$	23	$	3,388,138,277
Short-Term Investments		2,044,565		–		–		2,044,565
	$	3,390,182,819	$	–	$	23	$	3,390,182,842
Thailand Investable Market
Common Stocks	$	567,785,505	$	–	$	–	$	567,785,505
Warrants		32,388		–		–		32,388
Short-Term Investments		507,235		–		–		507,235
	$	568,325,128	$	–	$	–	$	568,325,128

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

70 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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, 2011, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions from net investment income, if any, generally are declared and paid semi-annually by each of the Funds. Distributions of net realized capital gains, if any, generally are declared and paid 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, 2011.

Certain Funds had tax basis net capital loss carryforwards as of August 31, 2010, the tax year-end of the Funds, as follows:

iShares MSCI Index Fund	Expiring 2011		Expiring 2012		Expiring 2013		Expiring 2014		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Total
Australia	$	650,082	$	596,240	$	384,424	$	–	$	7,066	$	529,868 $		24,006,125	$	23,348,244	$	49,522,049
Hong Kong		2,870,602		2,330,414		468,716		425,440		2,899,247		3,185,408		29,235,556		114,836,904		156,252,287
Japan Small Cap		–		–		–		–		–		–		131,718		541,322		673,040
Malaysia		2,898,105		775,477		6,820,474		1,543,708		3,357,786		1,127,892		40,223,530		–		56,746,972
Pacific ex-Japan		–		–		–		–		–		–		66,207,828		104,799,503		171,007,331
Singapore		4,428,316		4,256,421		2,558,348		–		–		807,115		15,680,510		132,420,824		160,151,534
South Korea		504,041		3,363,449		11,590,303		3,172,573		38,097,223		–		178,889,302		226,591,665		462,208,556
Taiwan		8,689,663		9,129,874		12,022,719		14,435,986		64,999,586		16,734,578		343,375,145		363,052,013		832,439,564
Thailand Investable
Market		–		–		–		–		–		–		555,444		2,321,428		2,876,872

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 between paid-in capital, accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss) as a result of permanent book and tax differences primarily

NOTES TO FINANCIAL STATEMENTS 71

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

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

As of February 28, 2011, 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	$	2,900,747,666	$	279,254,623	$	(40,464,167	)	$	238,790,456
Hong Kong		2,046,380,045		107,690,510		(122,617,582	)		(14,927,072	)
Japan Small Cap		42,580,239		4,373,566		(2,733,700	)		1,639,866
Malaysia		533,633,646		387,754,146		(693,856	)		387,060,290
Pacific ex-Japan		3,358,083,906		785,521,964		(95,562,583	)		689,959,381
Singapore		1,890,883,066		167,214,084		(28,014,150	)		139,199,934
South Korea		3,165,250,313		1,292,424,127		(22,397,248	)		1,270,026,879
Taiwan		2,381,731,138		1,053,241,115		(44,789,411	)		1,008,451,704
Thailand Investable Market		488,146,906		92,164,255		(11,986,033	)		80,178,222

Management has reviewed the tax positions as of February 28, 2011, inclusive of the 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

Pursuant to an Investment Advisory Agreement with the Company, BlackRock Fund Advisors (“BFA”) manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for all 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, litigation expenses and any extraordinary expenses.

For its investment advisory services to the iShares MSCI Australia, iShares MSCI Hong Kong, iShares MSCI Japan Small Cap, iShares MSCI Malaysia and iShares MSCI Singapore Index Funds, 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

72 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

Effective January 1, 2011, 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, up to and including $32 billion
0.45	Over $32 billion

Prior to January 1, 2011, 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 BlackRock Institutional Trust Company, N.A. (“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 combined income earned from the investment of cash collateral received for the loan of securities and any fees paid by borrowers. For the six months ended February 28, 2011, BTC earned securities lending agent fees from certain Funds as follows:

iShares MSCI Index Fund	Securities Lending Agent Fees
Australia	$	43,046
Hong Kong		53,342
Japan Small Cap		3,831
Pacific ex-Japan		190,884
Singapore		443,568
South Korea		1,119,806

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.

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays PLC (“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.

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, 2011 were as follows:

iShares MSCI Index Fund	Purchases		Sales
Australia	$	97,958,097	$	115,640,093
Hong Kong		245,842,213		276,125,645
Japan Small Cap		931,443		1,195,775
Malaysia		285,868,162		230,889,803
Pacific ex-Japan		212,992,443		230,354,981
Singapore		73,261,723		98,190,828
South Korea		462,620,174		157,333,819
Taiwan		536,355,864		408,157,994
Thailand Investable Market		55,489,451		54,374,520

In-kind transactions (see Note 4) for the six months ended February 28, 2011 were as follows:

iShares MSCI Index Fund	In-kind Purchases		In-kind Sales
Australia	$	516,556,218	$	142,610,211
Hong Kong		299,040,631		565,131,806
Japan Small Cap		9,699,722		9,443,797
Pacific ex-Japan		327,341,094		477,886,051
Singapore		262,078,520		224,957,473
Thailand Investable Market		132,202,189		146,332,084

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) 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 securities of that Fund’s underlying 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

74 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^®, INC.

charge to compensate the relevant Fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) 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 current 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 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 or its affiliates; such reinvestments are subject to investment risk.

As of February 28, 2011, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of the securities on loan as of February 28, 2011 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, plus any fees paid by borrowers and less the fees paid to BTC as securities lending agent which are subject to adjustments pursuant to the securities lending agreement.

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 75

Notes:

76 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 77

Notes:

78 2011 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 Funds’ 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”). BlackRock Fund Advisors (“BFA”) serves as the investment advisor to the Funds. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A., neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor 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.

©2011 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-83-0211

2011 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES^® MSCI SERIES

FEBRUARY 28, 2011

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iShares MSCI Japan Index Fund  |  EWJ  |  NYSE Arca

Table of Contents

Fund Performance Overview	5
Shareholder Expenses	6
Schedule of Investments	7
Financial Statements	13
Financial Highlights	16
Notes to Financial Statements	17

Fund Performance Overview

iSHARES^® MSCI JAPAN INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
16.68%	17.61%	17.29%	(2.80)%	(2.37)%	(2.35)%	1.57%	1.60%	2.05%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Ten Years Ended 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
16.68%	17.61%	17.29%	(13.25)%	(11.31)%	(11.20)%	16.85%	17.21%	22.50%

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

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

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 the MSCI Japan Index^SM (the “Index”). The Index consists of stocks traded primarily on the Tokyo Stock Exchange. 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, 2011, the total return for the Fund was 22.36%, while the total return for the Index was 22.76%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector	Percentage of Net Assets
Consumer Cyclical		26.35	%
Industrial		21.82
Financial		17.90
Consumer Non-Cyclical		9.85
Basic Materials		6.76
Communications		5.46
Utilities		5.33
Technology		4.61
Energy		1.72
Short-Term and Other Net Assets		0.20
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Toyota Motor Corp.		5.02	%
Honda Motor Co. Ltd.		2.77
Mitsubishi UFJ Financial Group Inc.		2.74
Canon Inc.		2.10
Sumitomo Mitsui Financial Group Inc.		1.97
Mizuho Financial Group Inc.		1.63
Mitsubishi Corp.		1.44
Takeda Pharmaceutical Co. Ltd.		1.44
Sony Corp.		1.43
Tokyo Electric Power Co. Inc. (The)		1.43
TOTAL		21.97	%

FUND PERFORMANCE OVERVIEW 5

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, 2010 to February 28, 2011.

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 (9/1/10)		Ending Account Value (2/28/11)		Annualized Expense Ratio			Expenses Paid During Perioda (9/1/10 to 2/28/11)
Actual		$1,000.00		$1,223.60		0.53	%		$2.92
Hypothetical (5% return before expenses)		1,000.00		1,022.20		0.53			2.66

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

6 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 99.80%
ADVERTISING – 0.25%
Dentsu Inc.		359,600	$	11,394,136
Hakuhodo DY Holdings Inc.		62,930		3,978,731
				15,372,867
AGRICULTURE – 0.72%
Japan Tobacco Inc.		10,788		44,373,929
				44,373,929
AIRLINES – 0.16%
All Nippon Airways Co. Ltd.a,b		2,697,000		9,710,912
				9,710,912
APPAREL – 0.19%
ASICS Corp.		899,000		12,004,223
				12,004,223
AUTO MANUFACTURERS – 9.95%
Fuji Heavy Industries Ltd.		1,798,000		15,383,840
Hino Motors Ltd.		899,000		4,948,724
Honda Motor Co. Ltd.		3,955,600		171,153,448
Isuzu Motors Ltd.		2,697,000		12,081,033
Mazda Motor Corp.		3,596,000		9,217,137
Mitsubishi Motors Corp.a		8,990,000		12,728,427
Nissan Motor Co. Ltd.		5,933,400		60,471,000
Suzuki Motor Corp.		809,100		19,069,597
Toyota Motor Corp.		6,652,600		310,178,591
				615,231,797
AUTO PARTS & EQUIPMENT – 2.49%
Aisin Seiki Co. Ltd.		449,700		17,097,712
Bridgestone Corp.		1,528,300		31,226,342
Denso Corp.		1,168,700		43,578,402
JTEKT Corp.		449,500		6,589,155
NGK Spark Plug Co. Ltd.		428,000		6,373,246
NHK Spring Co. Ltd.		899,000		10,489,979
NOK Corp.		269,700		5,332,772
Stanley Electric Co. Ltd.		360,800		6,601,235
Sumitomo Rubber Industries Inc.		359,600		3,871,197
Toyoda Gosei Co. Ltd.		179,800		4,204,770
Toyota Boshoku Corp.		179,800		2,982,402
Toyota Industries Corp.		449,500		15,471,622
				153,818,834
BANKS – 9.59%
77 Bank Ltd. (The)		899,000		5,650,982

Security	Shares		Value
Aozora Bank Ltd.		1,798,000	$	4,037,984
Bank of Kyoto Ltd. (The)		899,000		8,624,606
Bank of Yokohama Ltd. (The)		2,697,000		14,484,072
Chiba Bank Ltd. (The)		1,798,000		12,267,570
Chuo Mitsui Trust Holdings Inc.		2,697,000		11,455,584
Fukuoka Financial Group Inc.		1,804,000		8,146,955
Gunma Bank Ltd. (The)		899,000		5,541,255
Hachijuni Bank Ltd. (The)		899,000		5,683,901
Hiroshima Bank Ltd. (The)		899,000		4,092,848
Hokuhoku Financial Group Inc.		3,601,000		8,263,005
Iyo Bank Ltd. (The)		899,000		8,427,096
Joyo Bank Ltd. (The)		1,798,000		8,427,096
Mitsubishi UFJ Financial Group Inc.		30,655,980		169,500,292
Mizuho Financial Group Inc.		49,175,300		100,835,474
Mizuho Trust & Banking Co. Ltd.a		3,596,000		3,906,310
Nishi-Nippon City Bank Ltd. (The)		1,798,000		5,991,139
Resona Holdings Inc.		4,405,100		23,979,917
Sapporo Hokuyo Holdings Inc.		809,100		4,206,964
Senshu Ikeda Holdings Inc.		1,528,300		2,406,331
Seven Bank Ltd.		1,798		3,833,890
Shinsei Bank Ltd.a,b		1,798,000		2,282,339
Shizuoka Bank Ltd. (The)		1,798,000		16,876,138
Sumitomo Mitsui Financial Group Inc.		3,236,400		121,863,713
Sumitomo Trust and Banking Co. Ltd. (The)		3,596,000		22,779,495
Suruga Bank Ltd.		899,000		8,931,844
				592,496,800
BEVERAGES – 0.84%
Asahi Breweries Ltd.		899,000		17,293,104
Coca-Cola West Co. Ltd.		89,900		1,652,501
ITO EN Ltd.		179,800		3,179,912
Kirin Holdings Co. Ltd.		1,798,000		25,588,527
Sapporo Holdings Ltd.		899,000		4,059,929
				51,773,973
BUILDING MATERIALS – 1.32%
Asahi Glass Co. Ltd.		2,697,000		37,461,076
Daikin Industries Ltd.		539,400		18,184,094
JS Group Corp.		629,300		15,269,723
Nippon Sheet Glass Co. Ltd.		1,798,000		5,135,262
Rinnai Corp.		89,900		5,497,364
				81,547,519

SCHEDULE OF INVESTMENTS 7

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2011

Security	Shares		Value
CHEMICALS – 3.59%
Asahi Kasei Corp.		2,697,000	$	18,565,946
Daicel Chemical Industries Ltd.		899,000		6,144,758
Denki Kagaku Kogyo K.K.		899,000		4,806,078
Hitachi Chemical Co. Ltd.		269,700		6,234,734
JSR Corp.		449,500		9,595,698
Kaneka Corp.		899,000		6,583,669
Mitsubishi Chemical Holdings Corp.		3,146,500		22,927,627
Mitsubishi Gas Chemical Co. Inc.		899,000		6,923,825
Mitsui Chemicals Inc.		1,798,000		6,693,397
Nissan Chemical Industries Ltd.		269,700		3,120,659
Nitto Denko Corp.		359,600		21,616,380
Shin-Etsu Chemical Co. Ltd.		988,900		56,668,931
Showa Denko K.K.		3,596,000		7,856,512
Sumitomo Chemical Co. Ltd.		3,596,000		19,312,096
Taiyo Nippon Sanso Corp.		899,000		7,988,185
Tokuyama Corp.		899,000		4,718,296
Tosoh Corp.		899,000		3,204,052
Ube Industries Ltd.		2,697,000		8,690,443
				221,651,286
COMMERCIAL SERVICES – 0.92%
Benesse Holdings Inc.		179,800		8,152,777
Dai Nippon Printing Co. Ltd.		1,798,000		24,162,065
Kamigumi Co. Ltd.		899,000		7,889,430
Toppan Printing Co. Ltd.		1,800,000		16,455,511
				56,659,783
COMPUTERS – 0.86%
Fujitsu Ltd.		4,495,000		30,284,877
Itochu Techno-Solutions Corp.		89,900		3,170,037
OBIC Co. Ltd.		8,990		1,800,634
TDK Corp.		269,700		18,072,171
				53,327,719
COSMETICS & PERSONAL CARE – 0.98%
Kao Corp.		1,258,600		33,796,167
Shiseido Co. Ltd.		809,100		16,413,087
Unicharm Corp.		269,700		10,385,738
				60,594,992
DISTRIBUTION & WHOLESALE – 4.67%
Canon Marketing Japan Inc.		89,900		1,256,384
Hitachi High-Technologies Corp.		179,800		4,169,657
ITOCHU Corp.		3,596,000		37,131,893
Marubeni Corp.		3,596,000		27,431,954

Security	Shares		Value
Mitsubishi Corp.		3,236,400	$	89,314,053
Mitsui & Co. Ltd.		4,135,400		75,005,546
Sojitz Corp.		2,786,900		6,258,875
Sumitomo Corp.		2,697,000		39,765,361
Toyota Tsusho Corp.		449,500		8,481,960
				288,815,683
DIVERSIFIED FINANCIAL SERVICES – 1.98%
AEON Credit Service Co. Ltd.		179,870		2,733,286
Credit Saison Co. Ltd.		359,600		7,000,635
Daiwa Securities Group Inc.		3,596,000		19,312,096
Matsui Securities Co. Ltd.		269,700		1,915,848
Mitsubishi UFJ Lease & Finance Co. Ltd.		143,840		6,355,435
Mizuho Securities Co. Ltd.		899,000		2,754,168
Nomura Holdings Inc.		8,540,500		53,997,058
ORIX Corp.		251,720		28,112,267
				122,180,793
ELECTRIC – 4.53%
Chubu Electric Power Co. Inc.		1,528,300		40,236,093
Chugoku Electric Power Co. Inc. (The)		719,200		15,379,451
Electric Power Development Co. Ltd.		269,700		8,496,225
Hokkaido Electric Power Co. Inc.		449,500		9,623,130
Hokuriku Electric Power Co.		449,500		11,301,965
Kansai Electric Power Co. Inc. (The)		1,798,000		47,095,179
Kyushu Electric Power Co. Inc.		899,000		20,826,340
Shikoku Electric Power Co. Inc.		449,500		13,567,844
Tohoku Electric Power Co. Inc.		1,078,800		25,057,444
Tokyo Electric Power Co. Inc. (The)		3,416,200		88,146,549
				279,730,220
ELECTRICAL COMPONENTS & EQUIPMENT – 4.79%
Brother Industries Ltd.		539,400		8,479,766
Casio Computer Co. Ltd.b		539,400		4,753,409
Furukawa Electric Co. Ltd.		1,798,000		7,615,111
GS Yuasa Corp.		899,000		6,462,968
Hitachi Ltd.		10,788,000		65,178,323
Mitsubishi Electric Corp.		4,495,000		53,053,399
Nidec Corp.		269,700		25,017,942
Sharp Corp.		2,697,000		29,132,735
Sumitomo Electric Industries Ltd.		1,798,000		26,224,948
Toshiba Corp.		9,889,000		64,574,820
Ushio Inc.		269,700		5,523,698
				296,017,119

8 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2011

Security	Shares		Value
ELECTRONICS – 5.30%
Advantest Corp.		359,600	$	7,435,157
Fanuc Ltd.		449,500		69,567,436
Hamamatsu Photonics K.K.		89,900		3,445,453
Hirose Electric Co. Ltd.		89,900		10,248,578
Hoya Corp.		1,078,800		25,689,476
IBIDEN Co. Ltd.		269,700		9,266,514
Keyence Corp.		89,951		24,417,310
Kyocera Corp.		359,600		37,219,675
Mabuchi Motor Co. Ltd.		89,900		4,476,895
Minebea Co. Ltd.		899,000		5,299,854
Mitsumi Electric Co. Ltd.		179,800		2,964,846
Murata Manufacturing Co. Ltd.		449,500		33,357,256
NEC Corp.		4,817,000		13,228,671
NGK Insulators Ltd.		899,000		16,316,526
Nippon Electric Glass Co. Ltd.		899,500		14,953,241
Omron Corp.		449,500		12,426,675
Secom Co. Ltd.		449,500		22,576,498
Yaskawa Electric Corp.		899,000		10,468,034
Yokogawa Electric Corp.		539,400		4,154,295
				327,512,390
ENGINEERING & CONSTRUCTION – 0.76%
JGC Corp.		899,000		20,244,782
Kajima Corp.		1,798,000		4,784,133
Obayashi Corp.		1,798,000		8,032,076
Shimizu Corp.		1,798,000		7,680,947
Taisei Corp.		2,697,000		6,353,241
				47,095,179
ENTERTAINMENT – 0.36%
Oriental Land Co. Ltd.		89,900		8,975,736
Sankyo Co. Ltd.		179,800		10,149,823
Toho Co. Ltd.		179,800		2,912,176
				22,037,735
ENVIRONMENTAL CONTROL – 0.12%
Kurita Water Industries Ltd.		269,700		7,630,472
				7,630,472
FOOD – 1.15%
Ajinomoto Co. Inc.		1,798,000		20,606,884
Kikkoman Corp.		899,000		9,831,613
Meiji Holdings Co. Ltd.		179,828		8,439,383
Nippon Meat Packers Inc.		899,000		12,552,862
Nisshin Seifun Group Inc.		451,500		5,918,601

Security	Shares		Value
Nissin Foods Holdings Co. Ltd.		179,800	$	6,438,828
Yakult Honsha Co. Ltd.		269,700		7,594,262
				71,382,433
FOREST PRODUCTS & PAPER – 0.26%
Nippon Paper Group Inc.		270,600		7,411,527
Oji Paper Co. Ltd.		1,798,000		8,909,899
				16,321,426
GAS – 0.81%
Osaka Gas Co. Ltd.		4,495,000		17,062,676
Toho Gas Co. Ltd.		899,000		4,817,051
Tokyo Gas Co. Ltd.		6,293,000		28,035,457
				49,915,184
HAND & MACHINE TOOLS – 0.84%
Fuji Electric Holdings Co. Ltd.		899,000		3,028,488
Makita Corp.		269,700		11,340,370
SMC Corp.		179,800		30,614,061
THK Co. Ltd.		270,300		7,093,189
				52,076,108
HEALTH CARE – PRODUCTS – 0.49%
Sysmex Corp.		89,900		5,815,574
Terumo Corp.		449,500		24,524,167
				30,339,741
HOME BUILDERS – 0.24%
Sekisui Chemical Co. Ltd.		710,000		5,572,196
Sekisui House Ltd.		899,000		9,272,000
				14,844,196
HOME FURNISHINGS – 2.47%
Panasonic Corp.		4,764,715		64,029,674
Sony Corp.		2,427,300		88,672,146
				152,701,820
HOUSEWARES – 0.12%
TOTO Ltd.		899,000		7,483,437
				7,483,437
INSURANCE – 2.84%
Dai-ichi Life Insurance Co. Ltd. (The)		18,984		34,107,712
MS&AD Insurance Group Holdings Inc.		1,259,540		32,975,873
NKSJ Holdings Inc.a		3,608,800		27,177,220
Sony Financial Holdings Inc.		1,798		7,626,083
T&D Holdings Inc.		629,300		18,127,035
Tokio Marine Holdings Inc.		1,708,100		55,852,556
				175,866,479

SCHEDULE OF INVESTMENTS 9

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2011

Security	Shares		Value
INTERNET – 2.06%
Dena Co. Ltd.		179,800	$	6,923,825
Gree Inc.		179,800		2,916,565
Rakuten Inc.		17,081		15,156,703
SoftBank Corp.		1,977,800		80,990,101
Trend Micro Inc.		269,700		8,338,217
Yahoo! Japan Corp.		35,061		13,159,109
				127,484,520
IRON & STEEL – 2.13%
Daido Steel Co. Ltd.		899,000		5,991,139
JFE Holdings Inc.		1,078,850		33,907,467
Kobe Steel Ltd.		6,293,000		17,128,512
Nippon Steel Corp.		12,586,000		45,471,207
Nisshin Steel Co. Ltd.		1,798,000		4,016,038
Sumitomo Metal Industries Ltd.		8,091,000		20,442,292
Tokyo Steel Manufacturing Co. Ltd.		179,800		1,997,046
Yamato Kogyo Co. Ltd.		89,900		2,948,387
				131,902,088
LEISURE TIME – 0.56%
Sega Sammy Holdings Inc.		449,500		10,188,228
Shimano Inc.		179,800		8,909,899
Yamaha Corp.		359,600		4,604,179
Yamaha Motor Co. Ltd.a		629,300		11,106,649
				34,808,955
MACHINERY – 0.41%
Hitachi Construction Machinery Co. Ltd.		179,800		4,479,089
IHI Corp.		2,697,000		7,044,526
Japan Steel Works Ltd. (The)		899,000		9,348,810
Nabtesco Corp.		179,800		4,253,050
				25,125,475
MACHINERY – CONSTRUCTION & MINING – 1.11%
Komatsu Ltd.		2,247,500		68,442,725
				68,442,725
MACHINERY – DIVERSIFIED – 0.68%
Amada Co. Ltd.		899,000		8,032,076
Kubota Corp.		2,697,000		27,585,573
Sumitomo Heavy Industries Ltd.		899,000		6,287,404
				41,905,053
MANUFACTURING – 2.11%
FUJIFILM Holdings Corp.		1,168,700		40,796,802

Security	Shares		Value
Kawasaki Heavy Industries Ltd.		3,596,000	$	14,440,181
Konica Minolta Holdings Inc.		1,348,500		12,344,379
Mitsubishi Heavy Industries Ltd.		7,192,000		30,460,442
Nikon Corp.		719,200		16,792,745
Olympus Corp.		539,400		15,721,802
				130,556,351
MEDIA – 0.13%
Fuji Media Holdings Inc.		853		1,435,722
Jupiter Telecommunications Co. Ltd.		6,293		6,759,233
				8,194,955
METAL FABRICATE & HARDWARE – 0.25%
Maruichi Steel Tube Ltd.		89,900		2,076,050
NSK Ltd.		899,000		8,547,797
NTN Corp.		899,000		4,806,079
				15,429,926
MINING – 0.78%
Dowa Holdings Co. Ltd.		931,200		6,523,969
Mitsubishi Materials Corp.a		1,798,000		6,912,852
Mitsui Mining & Smelting Co. Ltd.		1,798,000		7,088,417
Sumitomo Metal Mining Co. Ltd.		1,473,000		27,633,358
				48,158,596
OFFICE & BUSINESS EQUIPMENT – 2.55%
Canon Inc.		2,697,050		129,700,683
Ricoh Co. Ltd.		1,798,000		23,657,317
Seiko Epson Corp.		269,700		4,499,938
				157,857,938
OIL & GAS – 1.72%
Cosmo Oil Co. Ltd.		1,798,000		6,495,887
Idemitsu Kosan Co. Ltd.		89,900		10,566,788
INPEX Corp.		5,394		37,592,750
JX Holdings Inc.		5,304,195		37,096,347
Showa Shell Sekiyu K.K.		449,500		4,054,443
TonenGeneral Sekiyu K.K.		899,000		10,566,789
				106,373,004
PACKAGING & CONTAINERS – 0.08%
Toyo Seikan Kaisha Ltd.		269,700		4,931,168
				4,931,168
PHARMACEUTICALS – 4.75%
Alfresa Holdings Corp.		89,900		3,472,885
Astellas Pharma Inc.		1,078,830		42,202,492
Chugai Pharmaceutical Co. Ltd.		539,400		10,336,360

10 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2011

Security	Shares		Value
Daiichi Sankyo Co. Ltd.		1,618,269	$	34,605,240
Dainippon Sumitomo Pharma Co. Ltd.		359,600		3,480,566
Eisai Co. Ltd.b		629,300		23,465,294
Hisamitsu Pharmaceutical Co. Inc.		89,900		3,621,018
Kyowa Hakko Kirin Co. Ltd.		899,000		9,140,327
Medipal Holdings Corp.		269,700		2,554,464
Miraca Holdings Inc.		179,800		6,934,798
Mitsubishi Tanabe Pharma Corp.		629,300		10,638,112
Ono Pharmaceutical Co. Ltd.		179,800		9,381,728
Otsuka Holdings Co. Ltd.a		629,300		15,722,899
Santen Pharmaceutical Co. Ltd.		179,800		7,011,607
Shionogi & Co. Ltd.		719,200		13,597,471
Suzuken Co. Ltd.		179,800		5,113,316
Takeda Pharmaceutical Co. Ltd.		1,798,000		89,208,715
Tsumura & Co.		90,700		2,932,556
				293,419,848
REAL ESTATE – 2.77%
AEON Mall Co. Ltd.		269,700		7,153,156
Daito Trust Construction Co. Ltd.		179,800		14,637,691
Daiwa House Industry Co. Ltd.		899,000		11,477,530
Mitsubishi Estate Co. Ltd.		2,697,000		54,907,799
Mitsui Fudosan Co. Ltd.		1,904,000		40,297,034
Nomura Real Estate Holdings Inc.		269,700		5,447,986
NTT Urban Development Corp.		3,596		3,726,357
Sumitomo Realty & Development Co. Ltd.		899,000		24,019,419
Tokyo Tatemono Co. Ltd.		899,000		4,213,548
Tokyu Land Corp.		899,000		5,135,262
				171,015,782
REAL ESTATE INVESTMENT TRUSTS – 0.61%
Japan Prime Realty Investment Corp.		1,798		4,992,615
Japan Real Estate Investment Corp.		899		9,239,082
Japan Retail Fund Investment Corp.		4,495		7,702,893
Nippon Building Fund Inc.		899		9,403,674
Nomura Real Estate Office Fund Inc.		899		6,089,894
				37,428,158
RETAIL – 2.87%
ABC-Mart Inc.		89,900		3,571,640
AEON Co. Ltd.		1,438,400		18,083,144
Citizen Holdings Co. Ltd.		539,400		3,469,594
FamilyMart Co. Ltd.		179,800		6,781,179
Fast Retailing Co. Ltd.		89,900		14,001,269

Security	Shares		Value
Isetan Mitsukoshi Holdings Ltd.		899,060	$	10,830,858
J. Front Retailing Co. Ltd.		899,000		4,674,405
Lawson Inc.		179,800		8,833,089
Marui Group Co. Ltd.		539,400		4,819,246
McDonald’s Holdings Co. (Japan) Ltd.		179,800		4,402,280
Nitori Holdings Co. Ltd.		89,900		7,944,294
Seven & I Holdings Co. Ltd.		1,798,080		49,972,271
Shimamura Co. Ltd.		89,900		8,668,498
Takashimaya Co. Ltd.		899,000		7,351,764
UNY Co. Ltd.		449,500		4,449,463
USS Co. Ltd.		53,940		4,351,805
Yamada Denki Co. Ltd.		197,780		15,039,295
				177,244,094
SEMICONDUCTORS – 0.96%
Elpida Memory Inc.a,b		359,600		5,381,052
Rohm Co. Ltd.		270,100		18,989,088
Shinko Electric Industries Co. Ltd.		89,900		1,040,220
Sumco Corp.a		269,700		4,937,752
Tokyo Electron Ltd.		449,552		29,300,716
				59,648,828
SHIPBUILDING – 0.08%
Mitsui Engineering & Shipbuilding Co. Ltd.		1,798,000		4,937,752
				4,937,752
SOFTWARE – 0.22%
Konami Corp.		179,800		3,776,832
Nomura Research Institute Ltd.		179,800		4,198,186
Oracle Corp. Japan		89,900		4,230,007
Square Enix Holdings Co. Ltd.		89,900		1,670,057
				13,875,082
STORAGE & WAREHOUSING – 0.07%
Mitsubishi Logistics Corp.		319,000		4,224,521
				4,224,521
TELECOMMUNICATIONS – 3.02%
KDDI Corp.		7,192		46,524,594
Nippon Telegraph and Telephone Corp.		1,258,600		61,293,958
NTT Data Corp.		2,697		9,566,071
NTT DoCoMo Inc.		36,859		69,057,202
				186,441,825
TEXTILES – 0.83%
Kuraray Co. Ltd.		809,100		11,386,456

SCHEDULE OF INVESTMENTS 11

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2011

Security	Shares		Value
Teijin Ltd.		2,697,000	$	13,002,746
Toray Industries Inc.		3,596,000		27,168,607
				51,557,809
TOYS, GAMES & HOBBIES – 1.36%
Namco Bandai Holdings Inc.		449,598		5,295,521
Nintendo Co. Ltd.		269,700		78,905,273
				84,200,794
TRANSPORTATION – 3.98%
Central Japan Railway Co.		3,596		32,084,413
East Japan Railway Co.		809,100		56,191,615
Hankyu Hanshin Holdings Inc.		2,702,800		12,997,720
Kawasaki Kisen Kaisha Ltd.		1,798,000		7,812,620
Keihin Electric Express Railway Co. Ltd.		903,000		7,439,583
Keio Corp.		1,798,000		11,982,277
Kintetsu Corp.b		4,286,000		13,496,741
Mitsui O.S.K. Lines Ltd.		2,697,000		17,808,825
Nippon Express Co. Ltd.		1,798,000		7,724,838
Nippon Yusen K.K.		3,596,000		15,800,806
Odakyu Electric Railway Co. Ltd.		899,000		8,350,287
Tobu Railway Co. Ltd.b		1,798,000		8,712,389
Tokyu Corp.		2,697,000		12,476,053
West Japan Railway Co.		4,495		18,598,865
Yamato Holdings Co. Ltd.		899,000		14,374,344
				245,851,376
VENTURE CAPITAL – 0.12%
SBI Holdings Inc.		46,748		7,366,248
				7,366,248
TOTAL COMMON STOCKS
(Cost: $6,801,111,059)				6,168,897,920
SHORT-TERM INVESTMENTS – 0.92%
MONEY MARKET FUNDS – 0.92%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%c,d,e		44,862,675		44,862,675
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%c,d,e		6,447,135		6,447,135

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%c,d		5,617,428	$	5,617,428
				56,927,238
TOTAL SHORT-TERM INVESTMENTS
(Cost: $56,927,238)				56,927,238
TOTAL INVESTMENTS IN SECURITIES – 100.72%
(Cost: $6,858,038,297)				6,225,825,158
Other Assets, Less Liabilities – (0.72)%				(44,566,050)
NET ASSETS – 100.00%			$	6,181,259,108

^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.

12 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Assets and Liabilities (Unaudited)

iSHARES^® MSCI JAPAN INDEX FUND

February 28, 2011

ASSETS
Investments, at cost:
Unaffiliated issuers	$	6,801,111,059
Affiliated issuers (Note 2)		56,927,238
Total cost of investments	$	6,858,038,297
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	6,168,897,920
Affiliated issuers (Note 2)		56,927,238
Total fair value of investments		6,225,825,158
Foreign currency, at valueb		3,278,170
Receivables:
Due from custodian (Note 4)		17,716
Dividends and interest		5,708,320
Total Assets		6,234,829,364
LIABILITIES
Payables:
Investment securities purchased		17,716
Collateral for securities on loan (Note 5)		51,309,810
Investment advisory fees (Note 2)		2,242,730
Total Liabilities		53,570,256
NET ASSETS	$	6,181,259,108
Net assets consist of:
Paid-in capital	$	7,498,667,876
Distributions in excess of net investment income		(2,751,759	)
Accumulated net realized loss		(682,498,256	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(632,158,753	)
NET ASSETS	$	6,181,259,108
Shares outstandingc		539,400,000
Net asset value per share	$	11.46

^a  Securities on loan with value of $47,483,129. See Note 5.

^b  Cost of foreign currency: $3,234,242.

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

See notes to financial statements.

FINANCIAL STATEMENTS 13

Statement of Operations (Unaudited)

iSHARES^® MSCI JAPAN INDEX FUND

Six months ended February 28, 2011

NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	37,404,230
Interest from affiliated issuers (Note 2)		1,636
Securities lending income from affiliated issuers (Note 2)		319,679
Total investment income		37,725,545
EXPENSES
Investment advisory fees (Note 2)		11,813,653
Total expenses		11,813,653
Net investment income		25,911,892
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(43,566,711	)
In-kind redemptions		(8,685,886	)
Foreign currency transactions		590,863
Net realized loss		(51,661,734	)
Net change in unrealized appreciation/depreciation on:
Investments		926,716,461
Translation of assets and liabilities in foreign currencies		(110,091	)
Net change in unrealized appreciation/depreciation		926,606,370
Net realized and unrealized gain		874,944,636
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	900,856,528

^a  Net of foreign withholding tax of $2,818,649.

See notes to financial statements.

14 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® MSCI JAPAN INDEX FUND

	Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	25,911,892		$	61,244,311
Net realized loss		(51,661,734	)		(48,426,200	)
Net change in unrealized appreciation/depreciation		926,606,370			(368,908,167	)
Net increase (decrease) in net assets resulting from operations		900,856,528			(356,090,056	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(31,933,699	)		(77,025,449	)
Total distributions to shareholders		(31,933,699	)		(77,025,449	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,809,209,193			1,380,264,536
Cost of shares redeemed		(439,641,585	)		(3,168,550,601	)
Net increase (decrease) in net assets from capital share transactions		1,369,567,608			(1,788,286,065	)
INCREASE (DECREASE) IN NET ASSETS		2,238,490,437			(2,221,401,570	)
NET ASSETS
Beginning of period		3,942,768,671			6,164,170,241
End of period	$	6,181,259,108		$	3,942,768,671
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(2,751,759	)	$	3,270,048
SHARES ISSUED AND REDEEMED
Shares sold		164,400,000			137,400,000
Shares redeemed		(43,200,000	)		(321,000,000	)
Net increase (decrease) in shares outstanding		121,200,000			(183,600,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 15

Financial Highlights

iSHARES^® MSCI JAPAN INDEX FUND

(For a share outstanding throughout each period)

	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008			Year ended Aug. 31, 2007			Year ended Aug. 31, 2006
Net asset value, beginning of period	$	9.43		$	10.24		$	11.62		$	14.07		$	13.80		$	10.99
Income from investment operations:
Net investment incomea		0.06			0.12			0.13			0.14			0.10			0.06
Net realized and unrealized gain (loss)b		2.04			(0.77	)		(1.39	)		(2.39	)		0.27			2.81
Total from investment operations		2.10			(0.65	)		(1.26	)		(2.25	)		0.37			2.87
Less distributions from:
Net investment income		(0.07	)		(0.16	)		(0.12	)		(0.20	)		(0.10	)		(0.06	)
Total distributions		(0.07	)		(0.16	)		(0.12	)		(0.20	)		(0.10	)		(0.06	)
Net asset value, end of period	$	11.46		$	9.43		$	10.24		$	11.62		$	14.07		$	13.80
Total return		22.36	%c		(6.41	)%		(10.68	)%		(16.13	)%		2.68	%		26.10	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	6,181,259		$	3,942,769		$	6,164,170		$	7,499,536		$	11,780,006		$	13,724,590
Ratio of expenses to average net assetsd		0.53	%		0.54	%		0.56	%		0.52	%		0.52	%		0.54	%
Ratio of net investment income to average net assetsd		1.15	%		1.20	%		1.46	%		1.11	%		0.68	%		0.48	%
Portfolio turnover ratee		2	%		5	%		4	%		4	%		3	%		8	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^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.

16 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^® MSCI JAPAN INDEX FUND

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 objective is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or indexing approach to try 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 issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

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 trustees 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”);

NOTES TO FINANCIAL STATEMENTS 17

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

• 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”); and

• 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.

18 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

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, 2011, 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 its 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.

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, 2011, if any, are reflected in the Fund’s Statement of Assets and Liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Distributions from net investment income, if any, generally are declared and paid semi-annually by the Fund. Distributions of net realized capital gains, if any, generally are declared and paid 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

NOTES TO FINANCIAL STATEMENTS 19

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

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, 2011.

As of August 31, 2010, the tax year-end of the Fund, the Fund had tax basis net capital loss carryforwards of $3,621,148, $5,594,562, $8,733,802, $68,122,871, $27,817,841, $44,443,527, $116,295,478 and $173,577,101 expiring in 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018, 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 between paid-in capital, accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss) as a result of permanent book and tax differences primarily attributed to net investment loss, return of capital, passive foreign investment companies, and realized gains (losses) from foreign currency transactions and in-kind redemptions. These reclassifications have no effect on net assets or net asset values per share.

As of February 28, 2011, the cost of investments for federal income tax purposes was $6,942,688,717. Net unrealized depreciation was $716,863,559, of which $312,167,415 represented gross unrealized appreciation on securities and $1,029,030,974 represented gross unrealized depreciation on securities.

Management has reviewed the tax positions as of February 28, 2011, inclusive of the 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

Pursuant to an Investment Advisory Agreement with the Company, BlackRock Fund Advisors (“BFA”) manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for all 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, litigation expenses and any 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
0.59%	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 BlackRock Institutional Trust Company, N.A. (“BTC”) to serve as securities lending agent for the Fund, subject to applicable conditions. BTC is an affiliate of BFA, the Fund’s investment

20 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

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 and any fees paid by borrowers. For the six months ended February 28, 2011, BTC earned securities lending agent fees of $168,263.

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.

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays PLC (“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.

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, 2011, aggregated $75,703,299 and $76,939,469, respectively.

In-kind transactions (see Note 4) for the six months ended February 28, 2011, aggregated $1,788,975,106 and $433,260,064, respectively.

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by the Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) 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 securities, which constitutes an optimized representation of the securities of 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.

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 current 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 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 or its affiliates; such reinvestments are subject to investment risk.

NOTES TO FINANCIAL STATEMENTS 21

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI JAPAN INDEX FUND

As of February 28, 2011, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of the securities on loan as of February 28, 2011 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, plus any fees paid by borrowers and less the fees paid to BTC as securities lending agent which are subject to adjustments pursuant to the securities lending agreement.

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.

22 2011 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”). BlackRock Fund Advisors (“BFA”) serves as the investment advisor to the Funds. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A., neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor 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.

©2011 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-81-0211

2011 SEMI-ANNUAL REPORT TO SHAREHOLDERS

iSHARES^® MSCI SERIES

FEBRUARY 28, 2011

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iShares MSCI Emerging Markets Index Fund  |  EEM  |  NYSE Arca

Table of Contents

Fund Performance Overview	5
Shareholder Expenses	7
Schedule of Investments	8
Financial Statements	21
Financial Highlights	24
Notes to Financial Statements	25

Fund Performance Overview

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

Performance as of February 28, 2011

Average Annual Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
19.25%	19.34%	20.91%	8.87%	9.03%	9.63%	21.15%	21.14%	21.45%
Cumulative Total Returns
Year Ended 2/28/11			Five Years Ended 2/28/11			Inception to 2/28/11
NAV	MARKET	INDEX	NAV	MARKET	INDEX	NAV	MARKET	INDEX
19.25%	19.34%	20.91%	52.96%	54.06%	58.36%	355.17%	354.98%	364.07%

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

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the 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 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 5

Fund Performance Overview (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

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, 2011, the total return for the Fund was 14.90%, while the total return for the Index was 14.95%.

PORTFOLIO ALLOCATION As of 2/28/11
Sector/Investment Type	Percentage of Net Assets
Financial		23.87	%
Energy		15.87
Basic Materials		13.16
Communications		9.48
Industrial		8.39
Technology		8.90
Consumer Cyclical		7.61
Consumer Non-Cyclical		6.63
Utilities		3.18
Diversified		2.70
Exchange-Traded Funds		0.01
Short-Term and Other Net Assets		0.20
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 2/28/11
Security	Percentage of Net Assets
Samsung Electronics Co. Ltd. SP GDR (South Korea)		2.22	%
Petroleo Brasileiro SA Preferred (Brazil)		1.94
Gazprom OAO SP ADR (Russia)		1.87
Petroleo Brasileiro SA (Brazil)		1.69
Vale SA Class A Preferred SP ADR (Brazil)		1.60
America Movil SAB de CV Series L (Mexico)		1.46
China Mobile Ltd. (China)		1.42
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR (Taiwan)		1.37
Itau Unibanco Holding SA SP ADR (Brazil)		1.26
Industrial and Commercial Bank of China Ltd. Class H (China)		1.21
TOTAL		16.04	%

6 2011 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, 2010 to February 28, 2011.

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 (9/1/10)		Ending Account Value (2/28/11)		Annualized Expense Ratio			Expenses Paid During Perioda (9/1/10 to 2/28/11)
Actual		$1,000.00		$1,149.00		0.66	%		$3.52
Hypothetical (5% return before expenses)		1,000.00		1,021.50		0.66			3.31

^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 7

Schedule of Investments (Unaudited)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
COMMON STOCKS – 91.95%
BRAZIL – 9.11%
ALL – America Latina Logistica SA		4,219,700	$	35,092,066
Amil Participacoes SA		1,255,200		12,868,412
Anhanguera Educacional Participacoes SA		1,067,300		23,943,770
B2W Companhia Global do Varejo		462,800		7,142,113
Banco do Brasil SA		5,402,374		96,924,754
Banco Santander (Brasil) SA		848,100		10,275,195
Banco Santander (Brasil) SA SP ADR		4,780,996		58,232,531
BM&F Bovespa SA		19,885,000		135,628,603
BR Malls Participacoes SA		3,335,400		31,881,613
BRF – Brasil Foods SA		4,287,600		74,726,595
BRF – Brasil Foods SA SP ADRa		1,751,275		31,190,208
Brookfield Incorporacoes SA		1,559,700		7,280,230
Centrais Eletricas Brasileiras SA		1,285,400		18,216,681
Centrais Eletricas Brasileiras SA SP ADR		1,060,846		15,148,881
CETIP Balcao Organizado de Ativos e Derivativos SA		1,795,800		26,478,899
Cielo SA		5,406,900		42,813,049
Companhia de Concessoes Rodoviarias		1,623,800		45,437,414
Companhia de Saneamento Basico do Estado de Sao Paulo		62,200		1,529,305
Companhia de Saneamento Basico do Estado de Sao Paulo SP ADR		624,234		31,174,246
Companhia Hering SA		1,265,000		18,942,196
Companhia Siderurgica Nacional SA SP ADR		8,123,480		132,169,020
Cosan SA Industria e Comercio		1,163,300		18,233,125
CPFL Energia SA		392,700		10,247,334
CPFL Energia SA SP ADRa		260,154		20,612,001
Cyrela Brazil Realty SA		3,035,600		30,297,419
Diagnosticos da America SA		2,657,300		32,210,668
Duratex SA		2,259,700		22,757,804
EcoRodovias Infraestrutura e Logistica SA		1,738,900		13,422,941
EDP Energias do Brasil SA		828,700		18,616,014
Embraer SA SP ADR		2,241,398		76,342,016

Security	Shares		Value
Fibria Celulose SA SP ADRa,b		2,521,510	$	36,334,959
Gafisa SA SP ADRa		1,964,565		24,812,456
Gol Linhas Aereas Inteligentes SA SP ADRa		953,603		12,835,496
HRT Participacoes em Petroleo SAb		37,600		42,515,754
Hypermarcas SAb		2,677,900		30,683,934
Itau Unibanco Holding SA SP ADR		20,718,798		460,371,692
JBS SA		6,039,465		22,727,211
Localiza Rent A Car SA		731,600		10,368,231
Lojas Renner SA		952,100		29,283,018
Marfrig Alimentos SA		1,549,300		13,557,076
MMX Mineracao e Metalicos SAb		1,888,300		11,102,958
MRV Engenharia e Participacoes SA		2,705,700		21,554,877
Multiplan Empreendimentos Imobiliarios SA		570,500		11,167,790
Natura Cosmeticos SA		1,663,500		42,344,913
Odontoprev SA		1,019,600		13,773,393
OGX Petroleo e Gas Participacoes SAb		12,126,400		142,237,655
PDG Realty SA Empreendimentose Participacoes		10,522,600		57,683,292
Petroleo Brasileiro SA		31,435,674		618,021,332
Petroleo Brasileiro SA SP ADR		82		3,266
Porto Seguro SA		806,800		12,893,620
Redecard SA		3,056,700		39,632,764
Rossi Residencial SA		1,421,900		11,061,699
Souza Cruz SA		710,200		34,178,000
SulAmerica SA		561,000		6,444,970
TAM SA SP ADRa		696,435		14,924,602
Tele Norte Leste Participacoes SA		256,200		5,600,802
TIM Participacoes SA SP ADR		13,910		538,595
Totvs SA		256,400		24,268,472
Tractebel Energia SA		1,248,600		19,577,614
Usinas Siderurgicas de Minas Gerais SA		1,226,700		19,840,848
Vale SA SP ADR		12,571,463		430,321,179
Vivo Participacoes SA SP ADR		456,940		16,819,961
				3,337,317,532
CHILE – 1.45%
AES Gener SA		3,075,585		1,607,685

8 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
Banco de Credito e Inversiones		17,140	$	1,090,433
Banco Santander (Chile) SA SP ADR		1,519,773		126,369,125
CAP SA		200,862		9,614,052
Cencosud SA		4,395,042		29,893,851
Colbun SA		8,664,502		2,164,534
Compania Cervecerias Unidas SA		123,487		1,322,103
CorpBanca SA		764,580,018		11,412,121
Empresa Nacional de Electricidad SA		9,341,890		16,279,422
Empresa Nacional de Electricidad SA SP ADR		44,127		2,302,988
Empresa Nacional de Telecomunicaciones SA		132,232		2,256,841
Empresas CMPC SA		127,862		5,703,662
Empresas Copec SA		775,182		12,986,150
Enersis SA SP ADR		5,194,720		105,504,763
LAN Airlines SA SP ADRa		2,923,221		79,248,521
S.A.C.I. Falabella SA		654,973		6,351,045
Sociedad Quimica y Minera de Chile SA Series B SP ADRa		2,177,013		115,359,919
Vina Concha y Toro SA		542,279		1,132,713
				530,599,928
CHINA – 17.35%
Agile Property Holdings Ltd.a		28,704,000		36,187,938
Agricultural Bank of China Ltd. Class Hb		153,251,000		75,945,239
Air China Ltd. Class Hb		25,654,000		23,944,151
Alibaba.com Ltd.a		12,255,000		22,844,932
Aluminum Corp. of China Ltd. Class Ha,b		31,492,000		31,091,131
Angang New Steel Co. Ltd. Class Ha		19,519,320		26,863,921
Anhui Conch Cement Co. Ltd. Class H		7,112,000		34,011,670
Anta Sports Products Ltd.		8,323,402		13,314,622
Bank of China Ltd. Class H		591,791,000		312,262,700
Bank of Communications Co. Ltd. Class H		63,935,000		61,643,677
BBMG Corp. Class H		8,390,500		11,181,373
Beijing Capital International Airport Co. Ltd. Class H		25,108,000		12,507,018

Security	Shares		Value
Beijing Enterprises Holdings Ltd.		5,703,000	$	31,629,844
Belle International Holdings Ltd.		34,312,000		59,556,979
Bosideng International Holdings Ltd.		19,094,000		5,074,312
Brilliance China Automotive Holdings Ltd.b		19,756,000		16,156,541
BYD Co. Ltd. Class Ha		3,005,500		11,845,818
Changsha Zoomlion Heavy Industry Science and Technology Development Co. Ltd.b		3,871,600		8,887,261
Chaoda Modern Agriculture (Holdings) Ltd.a		18,145,942		11,624,921
China Agri-Industries Holdings Ltd.a		22,044,000		22,386,016
China BlueChemical Ltd. Class H		4,980,000		3,855,286
China CITIC Bank Class H		30,526,000		20,026,301
China Coal Energy Co. Class H		33,885,000		48,288,132
China Communications Construction Co. Ltd. Class H		42,622,000		31,901,589
China Communications Services Corp. Ltd. Class H		230,000		145,574
China Construction Bank Corp. Class H		455,446,760		398,193,954
China COSCO Holdings Co. Ltd. Class Ha,b		23,764,500		25,353,600
China Dongxiang (Group) Co. Ltd.a		27,770,000		10,517,386
China Everbright Ltd.a		23,084,000		48,069,748
China Gas Holdings Ltd.a		31,102,000		11,659,532
China High Speed Transmission Equipment Group Co. Ltd.a		10,199,000		14,193,739
China Life Insurance Co. Ltd. Class H		71,616,000		272,611,825
China Longyuan Power Group Corp. Ltd. Class Ha,b		10,196,000		9,176,092
China Mengniu Dairy Co. Ltd.		13,029,000		34,541,490
China Merchants Bank Co. Ltd. Class H		36,025,042		86,210,534
China Merchants Holdings (International) Co. Ltd.		10,678,000		45,101,994
China Minsheng Banking Corp. Ltd. Class H		21,226,200		18,503,418
China Mobile Ltd.		55,556,500		521,032,760

SCHEDULE OF INVESTMENTS 9

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
China National Building Material Co. Ltd. Class H		15,782,000	$	38,740,022
China National Materials Co. Ltd. Class H		11,020,000		9,394,196
China Oilfield Services Ltd. Class H		9,074,000		18,080,083
China Overseas Land & Investment Ltd.		45,230,960		75,025,388
China Pacific Insurance (Group) Co. Ltd. Class H		7,319,000		29,598,673
China Petroleum & Chemical Corp. Class H		156,156,000		159,180,224
China Railway Construction Corp. Ltd. Class H		17,565,000		19,641,572
China Railway Group Ltd. Class H		33,385,000		21,216,147
China Resources Cement Holdings Ltd.b		19,702,000		15,024,731
China Resources Enterprise Ltd.a		17,878,000		65,184,930
China Resources Land Ltd.		32,932,000		53,441,066
China Resources Power Holdings Co. Ltd.		19,248,999		32,274,629
China Rongsheng Heavy Industry Group Co. Ltd.a,b		13,751,000		12,181,291
China Shanshui Cement Group		16,654,000		12,593,423
China Shenhua Energy Co. Ltd. Class H		31,043,500		128,730,998
China Shineway Pharmaceutical Group Ltd.		3,148,000		9,032,796
China Shipping Container Lines Co. Ltd. Class Hb		53,635,000		23,274,208
China Shipping Development Co. Ltd. Class H		20,248,000		22,121,859
China Southern Airlines Co. Ltd. Class Ha,b		11,156,000		5,270,675
China Taiping Insurance Holdings Co. Ltd.b		5,169,600		14,103,464
China Telecom Corp. Ltd. Class H		97,844,000		57,532,018
China Travel International Investment Hong Kong Ltd.b		130,644,951		26,668,567
China Unicom (Hong Kong) Ltd.		49,884,000		83,255,811
China Yurun Food Group Ltd.		13,860,000		43,862,167
China Zhongwang Holdings Ltd.		579,600		235,139
CITIC Pacific Ltd.		16,079,000		41,904,919

Security	Shares		Value
CNOOC Ltd.		174,601,000	$	396,313,549
CNPC (Hong Kong) Ltd.		24,732,000		36,705,150
COSCO Pacific Ltd.		11,456,000		22,061,457
Country Garden Holdings Co. Ltd.		25,773,000		10,224,295
CSR Corp Ltd. Class H		13,403,000		14,867,081
Datang International Power Generation Co. Ltd. Class Ha		25,120,000		8,546,247
Dongfang Electric Corp. Ltd. Class H		8,246,600		31,656,001
Dongfeng Motor Group Co. Ltd. Class H		24,380,000		42,254,932
Evergrande Real Estate Group Ltd.a		60,216,388		28,294,741
Fosun International Ltd.		11,545,500		8,374,736
Franshion Properties (China) Ltd.a		21,514,000		5,993,642
Fushan International Energy Group Ltd.		10,714,000		7,881,633
GCL Poly Energy Holdings Ltd.b		76,154,000		38,325,579
Geely Automobile Holdings Ltd.a		29,325,000		12,574,607
Golden Eagle Retail Group Ltd.		5,805,000		13,146,518
GOME Electrical Appliances Holdings Ltd.a,b		85,882,200		28,998,053
Great Wall Motor Co. Ltd. Class Ha		9,271,000		14,401,969
Greentown China Holdings Ltd.		8,029,000		8,029,876
Guangdong Investment Ltd.a		27,166,110		13,741,483
Guangzhou Automobile Group Co. Ltd. Class H		25,424,742		32,641,228
Guangzhou R&F Properties Co. Ltd. Class Ha		15,948,400		21,376,055
Hengan International Group Co. Ltd.		6,709,000		49,483,198
Hengdeli Holdings Ltd.a		18,507,329		10,074,408
Hidili Industry International Development Ltd.		1,222,000		1,008,770
Hopson Development Holdings Ltd.a,b		1,638,000		1,812,722
Huabao International Holdings Ltd.a		13,280,000		16,759,518
Huaneng Power International Inc. Class H		37,184,000		20,766,117
Industrial and Commercial Bankof China Ltd. Class H		575,680,085		441,969,523

10 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
Jiangsu Expressway Co. Ltd. Class H		9,524,000	$	10,307,584
Jiangxi Copper Co. Ltd. Class Ha		17,641,000		55,374,778
Kingboard Chemical Holdings Co. Ltd.		3,896,500		20,685,219
KWG Property Holdings Ltd.		10,098,500		6,521,309
Lee & Man Paper Manufacturing Ltd.a		6,903,000		4,493,200
Lenovo Group Ltd.a		58,416,000		35,323,413
Li Ning Co. Ltd.a		6,225,000		11,668,154
Longfor Properties Co. Ltd.		16,850,500		23,796,627
Lonking Holdings Ltd.		16,013,000		8,963,325
Maanshan Iron & Steel Co. Ltd. Class Ha		41,872,000		21,395,218
Metallurgical Corp. of China Ltd. Class Ha,b		3,153,000		1,275,101
Nine Dragons Paper (Holdings) Ltd.a		16,785,000		18,640,063
Parkson Retail Group Ltd.a		7,729,000		10,934,900
PetroChina Co. Ltd. Class H		196,508,000		267,421,323
PICC Property and Casualty Co. Ltd. Class Hb		25,498,000		32,244,250
Ping An Insurance (Group) Co. of China Ltd. Class H		16,975,500		174,132,280
Poly (Hong Kong) Investments Ltd.a		25,074,458		19,990,934
Renhe Commercial Holdings Co. Ltd.a		127,180,000		19,103,574
Semiconductor Manufacturing International Corp.b		42,671,000		3,396,522
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		5,152,000		12,699,512
Shanghai Electric Group Co. Ltd. Class H		3,118,000		1,825,370
Shanghai Industrial Holdings Ltd.a		6,374,000		22,831,066
Shimao Property Holdings Ltd.		23,286,000		31,808,739
Shui On Land Ltd.a		49,781,450		23,391,526
Sino-Ocean Land Holdings Ltd.a		50,454,000		30,832,766
Sinofert Holdings Ltd.a,b		40,070,000		21,400,435
Sinopec Shanghai Petrochemical Co. Ltd. Class H		30,276,000		16,091,954
Sinopharm Group Co. Ltd. Class H		8,910,000		32,372,338
Sinotruk (Hong Kong) Ltd.		3,037,000		2,908,664

Security	Shares		Value
Skyworth Digital Holdings Ltd.a		7,668,000	$	4,843,476
Soho China Ltd.a		26,845,500		19,266,075
Tencent Holdings Ltd.		9,984,200		264,052,586
Tingyi (Cayman Islands) Holding Corp.		17,784,000		39,955,579
Tsingtao Brewery Co. Ltd. Class Ha		3,922,000		18,000,873
Want Want China Holdings Ltd.		63,287,000		47,287,617
Weichai Power Co. Ltd. Class H		2,162,000		14,377,897
Wumart Stores Inc. Class H		1,610,000		3,360,906
XinAo Gas Holdings Ltd.		7,664,000		22,778,044
Yanzhou Coal Mining Co. Ltd. Class H		22,368,800		66,769,108
Yuexiu Property Co. Ltd.a,b		48,364,000		10,120,914
Zhaojin Mining Industry Co. Ltd. Class Ha		4,546,500		19,320,356
Zhejiang Expressway Co. Ltd. Class H		28,706,000		25,723,972
Zhuzhou CSR Times Electric Co. Ltd.		4,506,000		15,069,847
Zijin Mining Group Co. Ltd. Class H		47,570,000		39,025,093
ZTE Corp. Class H		4,835,000		22,284,396
				6,358,261,985
COLOMBIA – 0.48%
Almacenes Exito SA		134,430		1,797,758
Bancolombia SA		107,981		1,523,332
Bancolombia SA SP ADR		2,385,144		135,786,248
Cementos Argos SA		351,326		2,026,739
Corporacian Financiera Colombiana SA		852,244		15,321,441
Ecopetrol SA		6,263,901		13,025,156
Grupo de Inversiones Suramericana SA		171,382		3,181,730
Interconexion Electrica SA		228,228		1,529,659
Inversiones Argos SA		126,993		1,236,097
				175,428,160
CZECH REPUBLIC – 0.44%
CEZ AS		2,413,308		110,732,616
Komercni Banka AS		212,345		51,122,109
Telefonica O2 Czech Republic AS		31		702
				161,855,427

SCHEDULE OF INVESTMENTS 11

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
EGYPT – 0.29%
Orascom Construction Industries Co. SP GDRa		2,113,488	$	72,281,290
Orascom Telecom Holding SAE SP GDRa,b,c		10,716,927		32,954,550
				105,235,840
HUNGARY – 0.63%
Magyar Telekom Telecommunications PLC		3,545,775		9,966,688
MOL Hungarian Oil and Gas Nyrta,b		664,444		80,672,114
OTP Bank Nyrta,b		2,315,084		69,443,592
Richter Gedeon Nyrta		362,012		70,121,574
				230,203,968
INDIA – 5.52%
Axis Bank Ltd. SP GDRc		1,364,903		38,080,794
Dr. Reddy’s Laboratories Ltd. SP ADRa		2,226,260		75,804,153
HDFC Bank Ltd. SP ADR		2,351,625		345,947,554
ICICI Bank Ltd. SP ADR		6,473,530		280,692,261
Infosys Technologies Ltd. SP ADR		6,307,551		420,713,652
Larsen & Toubro Ltd. SP GDRc		2,288,524		77,626,734
Mahanagar Telephone Nigam Ltd. SP ADRa,b		1,374,047		2,528,246
Reliance Industries Ltd. SP GDRa,d		8,204,249		349,418,965
Sterlite Industries (India) Ltd. SP ADRa		7,191,489		106,002,548
Tata Communications Ltd. SP ADRa,b		5,732,356		51,591,204
Tata Motors Ltd. SP ADRa		4,425,714		108,961,078
Wipro Ltd. SP ADRa		12,699,117		167,120,380
				2,024,487,569
INDONESIA – 2.32%
PT Adaro Energy Tbk		85,217,000		23,667,364
PT Aneka Tambang Tbk		148,410,099		37,012,097
PT Astra Agro Lestari Tbk		3,840,000		9,511,308
PT Astra International Tbk		20,797,500		122,712,676
PT Bank Central Asia Tbk		129,049,500		92,162,540
PT Bank Danamon Indonesia Tbk		30,518,487		22,141,168
PT Bank Mandiri Tbk		88,875,400		58,434,203
PT Bank Negara Indonesia (Persero) Tbk		65,765,276		26,465,650

Security	Shares		Value
PT Bank Rakyat Indonesia Tbk		110,984,122	$	59,131,142
PT Bumi Resources Tbk		174,971,000		59,503,826
PT Charoen Pokphand Indonesia Tbk		77,880,445		13,419,291
PT Gudang Garam Tbk		5,879,000		24,358,380
PT Indo Tambangraya Megah Tbk		3,453,500		17,890,943
PT Indocement Tunggal Prakarsa Tbk		3,659,500		5,973,678
PT Indofood Sukses Makmur Tbk		45,044,000		24,254,265
PT Indosat Tbk		1,884,560		1,078,845
PT International Nickel Indonesia Tbk		14,418,500		8,254,087
PT Kalbe Farma Tbk		27,399,903		9,085,157
PT Perusahaan Gas Negara Tbk		129,434,500		52,087,794
PT Semen Gresik (Persero) Tbk		19,471,000		19,092,462
PT Tambang Batubara Bukit Asam Tbk		4,151,000		9,434,626
PT Telekomunikasi Indonesia Tbk		90,014,500		76,019,727
PT Unilever Indonesia Tbk		3,050,500		5,602,006
PT United Tractors Tbk		27,125,650		71,338,784
				848,632,019
MALAYSIA – 3.28%
AirAsia Bhdb		20,269,100		16,744,184
Alliance Financial Group Bhd		6,930,300		7,110,913
AMMB Holdings Bhd		25,411,075		51,730,135
Axiata Group Bhdb		26,032,300		41,644,853
Berjaya Corp. Bhd		10,334,700		3,523,386
Berjaya Sports Toto Bhd		14,269,800		19,179,210
British American Tobacco (Malaysia) Bhd		1,488,600		23,423,308
Bursa Malaysia Bhd		6,116,500		16,281,259
CIMB Group Holdings Bhd		34,647,800		91,546,064
DiGi.Com Bhd		1,964,800		17,132,824
Gamuda Bhd		33,563,900		39,939,996
Genting Bhd		25,818,300		84,551,653
Genting Malaysia Bhd		49,321,000		53,516,640
Genting Plantations Bhd		3,886,800		10,091,282
Hong Leong Bank Bhd		1,144,900		3,490,434
Hong Leong Financial Group Bhd		589,700		1,679,886
IJM Corp. Bhd		19,099,820		37,880,318
IOI Corp. Bhd		38,604,920		69,477,466
Kuala Lumpur Kepong Bhd		5,746,300		38,051,224

12 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
Lafarge Malayan Cement Bhd		3,201,300	$	7,713,344
Malayan Banking Bhd		26,987,700		76,260,932
Malaysian Airline System Bhdb		9,764,800		6,049,983
Maxis Communications Bhd		16,473,700		29,323,780
MISC Bhd		7,021,900		17,494,325
MMC Corp. Bhd		12,302,700		10,929,460
Parkson Holdings Bhd		7,280,810		12,602,090
Petronas Chemicals Group Bhdb		20,447,200		42,228,277
Petronas Dagangan Bhd		1,081,800		4,787,510
Petronas Gas Bhd		3,174,400		11,738,152
PLUS Expressways Bhd		26,135,020		37,782,474
PPB Group Bhd		4,810,100		26,017,587
Public Bank Bhd Foreign		4,564,900		19,573,477
RHB Capital Bhd		2,903,600		7,481,493
Sime Darby Bhd		29,080,573		85,416,140
SP Setia Bhd		12,372,800		23,970,906
Telekom Malaysia Bhd		13,540,700		17,489,054
Tenaga Nasional Bhd		36,707,250		75,809,105
UMW Holdings Bhd		8,880,700		21,222,850
YTL Corp. Bhd		7,522,108		17,507,611
YTL Power International Bhd		34,202,760		25,451,652
				1,203,845,237
MEXICO – 4.52%
Alfa SAB de CV Series A		5,487,600		68,357,459
America Movil SAB de CV Series L		186,906,200		535,716,932
Cemex SAB de CV CPOb		68,468,269		61,567,401
Coca-Cola FEMSA SAB de CV Class L		3,100		22,669
Compartamos SAB de CVb		9,283,300		17,899,863
Desarrolladora Homex SAB de CVb		1,245,800		5,673,258
Embotelladoras Arca SAB de CVa		3,812,400		20,751,656
Fomento Economico Mexicano SAB de CV BD Units		25,616,400		144,029,397
Grupo Aeroportuario del Pacifico SAB de CV Series B		20,500		77,954
Grupo Bimbo SAB de CV Series A		537,100		4,182,007
Grupo Carso SAB de CV Series A1		1,211,941		3,882,378
Grupo Elektra SA de CV		25,785		1,075,918

Security	Shares		Value
Grupo Financiero Banorte SAB de CV Series Oa		13,460,056	$	61,140,103
Grupo Financiero Inbursa SAB de CV Series O		273,000		1,146,873
Grupo Mexico SAB de CV Series B		38,730,363		147,085,432
Grupo Modelo SAB de CV Series Ca		12,525,298		75,796,712
Grupo Televisa SA CPOb		26,707,700		126,149,432
Industrias Penoles SAB de CV		1,296,488		45,102,502
Kimberly-Clark de Mexico SABde CV Series A		9,478,300		55,187,920
Mexichem SAB de CV		2,100		7,550
Minera Frisco SAB de CVb		1,578,441		6,694,954
Telefonos de Mexico SAB de CV Series L		62,409,900		56,687,037
Urbi Desarrollos Urbanos SAB de CVa,b		4,741,000		10,379,692
Wal-Mart de Mexico SAB de CV Series V		72,054,100		206,166,614
				1,654,781,713
PERU – 0.61%
Compania de Minas Buenaventura SA SP ADR		2,160,278		100,820,174
Credicorp Ltd.		456,703		45,875,816
Southern Copper Corp.		1,778,455		75,264,216
				221,960,206
PHILIPPINE ISLANDS – 0.85%
Aboitiz Equity Ventures Inc.		14,574,800		15,714,971
Aboitiz Power Corp.		3,535,564		2,335,954
Alliance Global Group Inc.		5,021,680		1,313,309
Ayala Corp.		4,503,323		34,195,915
Ayala Land Inc.		47,473,900		15,574,140
Banco de Oro Unibank Inc.		340		366
Bank of the Philippine Islands		34,612,354		44,188,518
Energy Development Corp.		7,000		899
Globe Telecom Inc.		603,460		9,829,241
Jollibee Foods Corp.		36,559,849		57,074,965
Manila Electric Co.		7,661,195		40,599,588
Metropolitan Bank & Trust Co.		237,755		313,080
Philippine Long Distance Telephone Co.		607,295		30,093,076

SCHEDULE OF INVESTMENTS 13

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
SM Investments Corp.		2,418,641	$	25,579,112
SM Prime Holdings Inc.		151,464,620		35,095,037
				311,908,171
POLAND – 1.58%
Asseco Poland SA		514,094		9,179,770
Bank Handlowy w Warszawie SA		275,484		8,974,358
Bank Millennium SAb		3,513,037		6,854,348
Bank Pekao SA		1,176,400		67,383,294
Bank Zachodni WBK SA		199,097		15,635,581
BRE Bank SAb		122,539		13,269,384
Cyfrowy Polsat SAa		2,201,501		12,034,755
ENEA SA		1,075,697		8,207,851
Getin Holding SAa,b		2,753,538		12,548,570
Globe Trade Centre SAb		962,324		7,087,967
Grupa Lotos SAb		549,206		7,705,704
ING Bank Slaski SAb		26,671		7,921,895
Kernel Holding SAa,b		367,379		10,611,194
KGHM Polska Miedz SA		1,270,430		77,682,513
PBG SA		94,212		6,499,304
Polska Grupa Energetyczna SA		2,773,632		21,878,657
Polski Koncern Naftowy Orlen SAb		3,239,735		51,471,845
Polskie Gornictwo Naftowe i Gazownictwo SA		16,090,592		21,864,122
Powszechna Kasa Oszczednosci Bank Polski SA		6,240,437		91,296,953
Powszechny Zaklad Ubezpieczen SA		414,966		50,227,057
Tauron Polska Energia SAb		10,361,390		22,274,019
Telekomunikacja Polska SA		6,721,736		40,492,244
TVN SA		1,179,614		7,110,194
				578,211,579
RUSSIA – 7.24%
Comstar United Telesystems OJSC SP GDRb		788,507		5,365,790
Federal Grid Co. of Unified Energy System OJSCb		1,342,178,500		19,582,914
Gazprom OAO		9,262,235		67,637,241
Gazprom OAO SP ADR		23,235,188		683,579,231
Inter RAO UES OJSCb		7,886,141,700		11,806,829
LUKOIL OAO		327,607		23,139,218
LUKOIL OAO SP ADR		4,103,872		292,154,648
Magnit OJSC SP GDRc		2,161,075		61,374,530

Security	Shares		Value
Mechel OAO SP ADRa		1,579,727	$	48,071,093
MMC Norilsk Nickel OJSC		137,936		33,429,209
MMC Norilsk Nickel OJSC SP ADR		5,462,826		131,927,248
Mobile TeleSystems OJSC SP ADR		4,402,512		82,899,301
NovaTek OAO SP GDRc		963,972		125,219,963
Novolipetsk Steel OJSC SP GDRc		1,080,463		49,593,252
OGK-4 OJSCb		78,952,100		7,196,219
Polymetal OJSC SP GDRa,b,c		956,170		18,171,741
Polyus Gold OJSC SP ADR		874,224		29,854,750
Raspadskaya OAOb		886,500		6,897,007
Rosneft Oil Co. OJSC		3,697,340		34,812,242
Rosneft Oil Co. OJSC SP GDRc		11,831,668		111,690,946
RusHydro OJSCb		130,565,100		6,687,849
RusHydro OJSC SP ADRb		11,050,490		56,578,509
Sberbank of Russia		25,480,083		90,159,506
Sberbank of Russia GDRa,c		515,567		199,388,349
Severstal OAO		2,607,733		49,614,943
Sistema JSFC SP GDRc		955,969		24,367,650
Surgutneftegas OJSC		18,993,900		21,874,062
Surgutneftegas OJSC SP ADR		5,632,584		66,182,862
Tatneft OAO SP ADR		2,652,507		110,742,167
TMK OAO SP GDRb,c		613,745		12,274,900
Uralkali OJSC SP GDRc		1,380,949		56,439,386
VTB Bank OJSC SP GDRc		12,535,253		86,869,303
Wimm-Bill-Dann Foods OJSC SP ADR		836,456		27,084,445
				2,652,667,303
SOUTH AFRICA – 7.58%
Absa Group Ltd.		1,686,762		31,539,961
African Bank Investments Ltd.		13,358,996		68,921,835
African Rainbow Minerals Ltd.		468,558		14,261,239
Anglo Platinum Ltd.b		528,283		51,541,290
AngloGold Ashanti Ltd.		3,532,572		172,829,547
ArcelorMittal South Africa Ltd.		3,595,003		46,715,533
Aspen Pharmacare Holdings Ltd.b		629,610		7,394,847
Aveng Ltd.		2,381,753		12,555,685
Bidvest Group Ltd.		3,063,172		68,869,004
Discovery Holdings Ltd.		197,279		1,122,995
Exxaro Resources Ltd.		2,061,960		45,300,985
FirstRand Ltd.		36,647,648		103,461,918
Foschini Group Ltd. (The)		4,703,718		53,239,278
Gold Fields Ltd.		6,838,466		122,981,125

14 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
Growthpoint Properties Ltd.		2,234,670	$	5,465,064
Harmony Gold Mining Co. Ltd.		3,685,433		43,142,465
Impala Platinum Holdings Ltd.		4,592,744		136,014,136
Imperial Holdings Ltd.		2,839,969		45,998,244
Investec Ltd.		4,928,192		38,564,476
Kumba Iron Ore Ltd.		614,555		41,713,096
Liberty Holdings Ltd.		1,133,987		12,490,273
Massmart Holdings Ltd.		840,969		17,451,890
MMI Holdings Ltd.		6,693,772		15,675,603
MTN Group Ltd.		15,284,681		270,712,460
Murray & Roberts Holdings Ltd.		2,991,363		10,777,279
Naspers Ltd. Class N		3,775,357		217,602,414
Nedbank Group Ltd.		3,481,342		64,117,640
Netcare Ltd.		22,941,981		48,237,655
Northam Platinum Ltd.a		538,311		3,840,064
Pick’n Pay Stores Ltd.a		5,516,363		36,918,584
Pretoria Portland Cement Co. Ltd.		5,337,017		21,397,138
Redefine Properties Ltd.		1,500,251		1,589,100
Remgro Ltd.		2,042,305		32,949,185
Reunert Ltd.		2,135,854		17,790,960
RMB Holdings Ltd.		1,659,503		9,193,088
Sanlam Ltd.		21,759,437		84,823,250
Sappi Ltd.b		1,958,486		10,431,636
Sasol Ltd.		6,006,372		329,763,806
Shoprite Holdings Ltd.		5,544,399		77,024,962
SPAR Group Ltd. (The)		1,688,026		23,107,715
Standard Bank Group Ltd.		11,406,473		164,134,331
Steinhoff International Holdings Ltd.b		4,049,691		14,450,155
Telkom South Africa Ltd.		147,070		751,347
Tiger Brands Ltd.		2,284,257		60,044,023
Truworths International Ltd.		7,099,088		65,230,522
Vodacom Group Ltd.		570,813		6,161,347
Woolworths Holdings Ltd.		12,988,290		49,976,199
				2,778,275,349
SOUTH KOREA – 13.69%
AmorePacific Corp.		42,753		38,864,642
Busan Bank		718,150		8,621,745
Celltrion Inc.		843,004		23,938,580
Cheil Industries Inc.		470,505		50,024,897
CJ CheilJedang Corp.		99,721		17,626,669
Daegu Bank		368,840		4,983,662

Security	Shares		Value
Daelim Industrial Co. Ltd.		164,236	$	14,275,065
Daewoo Engineering & Construction Co. Ltd.a,b		109,320		1,041,235
Daewoo International Corp.a		217,966		6,517,833
Daewoo Securities Co. Ltd.		818,150		16,708,774
Daewoo Shipbuilding & Marine Engineering Co. Ltd.b		923,260		28,221,743
Dongbu Insurance Co. Ltd.		146,550		5,946,919
Dongkuk Steel Mill Co. Ltd.		329,870		10,434,022
Doosan Corp.		211,169		23,387,343
Doosan Heavy Industries & Construction Co. Ltd.a		370,354		22,608,772
Doosan Infracore Co. Ltd.a,b		812,790		18,471,682
GLOVIS Co. Ltd.		98,613		12,363,212
GS Engineering & Construction Corp.a		289,221		25,446,015
GS Holdings Corp.a		336,650		20,730,231
Hana Financial Group Inc.		1,993,210		79,470,562
Hanjin Heavy Industries & Construction Co. Ltd.a,b		743,630		20,095,437
Hanjin Shipping Co. Ltd.a		552,660		17,236,195
Hankook Tire Co. Ltd.		945,960		24,850,675
Hanwha Chemical Corp.		662,820		19,732,204
Hanwha Corp.		331,260		13,060,798
Honam Petrochemical Corp.		84,322		23,234,964
Hynix Semiconductor Inc.a,b		4,697,430		117,992,416
Hyosung Corp.		220,066		15,208,566
Hyundai Department Store Co. Ltd.		85,443		9,198,002
Hyundai Development Co.b		255,300		6,921,703
Hyundai Engineering & Construction Co. Ltd.b		687,896		45,406,682
Hyundai Heavy Industries Co. Ltd.a		378,850		146,014,929
Hyundai Merchant Marine Co. Ltd.a,b		362,482		9,072,889
Hyundai Mipo Dockyard Co. Ltd.		118,953		18,233,171
Hyundai Mobis Co. Ltd.a		699,342		162,652,084
Hyundai Motor Co. Ltd.		1,544,520		243,587,082
Hyundai Securities Co. Ltd.		327,990		3,777,850
Hyundai Steel Co.		534,972		61,382,071
Industrial Bank of Koreab		397,180		5,947,231
Kangwon Land Inc.a,b		436,440		9,686,636

SCHEDULE OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
KB Financial Group Inc. SP ADRb		5,534,040	$	269,784,450
KCC Corp.		14,466		4,018,155
Kia Motors Corp.a		2,347,480		119,386,304
Korea Electric Power Corp. SP ADRb		9,288,673		113,321,811
Korea Exchange Bank		1,698,100		13,736,458
Korea Gas Corp.b		263,080		8,589,464
Korea Investment Holdings Co. Ltd.		181,570		6,724,517
Korea Life Insurance Co. Ltd.		2,071,060		13,927,564
Korea Zinc Co. Ltd.		57,587		17,041,650
Korean Air Lines Co. Ltd.		455,908		24,842,371
KT Corp. SP ADRb		3,875,386		76,693,889
KT&G Corp.		1,413,513		71,762,101
LG Chem Ltd.		490,472		161,658,250
LG Corp.		951,880		65,446,230
LG Display Co. Ltd. SP ADRa,b		6,018,014		96,167,864
LG Electronics Inc.a		925,660		91,036,424
LG Household & Health Care Ltd.a		111,411		35,338,801
LG Innotek Co. Ltd.a		117,921		13,321,160
LG Uplus Corp.		2,166,840		10,885,556
Lotte Confectionery Co. Ltd.b		3,578		4,406,521
Lotte Shopping Co. Ltd.		84,394		29,311,521
LS Corp.		106,533		8,683,858
LS Industrial Systems Co. Ltd.a		155,964		9,769,773
Mando Corp.		99,596		12,971,791
Mirae Asset Securities Co. Ltd.		125,749		5,242,095
NCsoft Corp.		207,618		41,573,267
NHN Corp.b		436,943		73,362,600
OCI Co. Ltd.		132,930		43,813,370
POSCO SP ADR		2,617,221		269,783,141
S-Oil Corp.a		222,050		21,149,493
S1 Corp.a		230,520		10,232,625
Samsung C&T Corp.		1,265,810		75,478,681
Samsung Card Co. Ltd.		254,000		11,815,000
Samsung Electro-Mechanics Co. Ltd.a		627,720		71,745,785
Samsung Electronics Co. Ltd. SP GDRa,c		1,987,318		814,005,453
Samsung Engineering Co. Ltd.a		273,686		43,405,656
Samsung Fire & Marine Insurance Co. Ltd.		384,320		76,104,656

Security	Shares		Value
Samsung Heavy Industries Co. Ltd.		1,748,860	$	56,402,343
Samsung Life Insurance Co. Ltd.		569,970		53,782,665
Samsung SDI Co. Ltd.a		340,136		50,177,330
Samsung Securities Co. Ltd.		406,500		27,264,475
Samsung Techwin Co. Ltd.a		480,598		33,724,681
Seoul Semiconductor Co. Ltd.a		185,729		6,936,143
Shinhan Financial Group Co. Ltd.		3,078,700		128,478,067
Shinhan Financial Group Co. Ltd. SP ADRb		697,230		58,434,846
Shinsegae Co. Ltd.		296,760		65,601,931
SK Broadband Co. Ltd.b		993,700		4,164,445
SK C&C Co. Ltd.		96,440		8,108,941
SK Energy Co. Ltd.		565,890		87,742,657
SK Holdings Co. Ltd.		146,870		17,242,081
SK Networks Co. Ltd.		289,160		2,959,109
SK Telecom Co. Ltd. SP ADR		5,353,778		94,172,955
STX Pan Ocean Co. Ltd.a		1,963,200		16,541,915
Tong Yang Securities Inc.		636,850		4,344,788
Woongjin Coway Co. Ltd.a		634,820		18,392,428
Woori Finance Holdings Co. Ltd.b		1,874,680		22,672,557
Woori Investment & Securities Co. Ltd.		425,710		7,694,577
Yuhan Corp.		101,988		13,735,149
				5,018,087,576
TAIWAN – 11.91%
Acer Inc.		26,549,053		65,215,388
Advanced Semiconductor Engineering Inc.		35,474,645		40,414,657
Advantech Co. Ltd.		1,718,000		4,807,874
Asia Cement Corp.		18,108,753		18,493,090
ASUSTeK Computer Inc.		4,546,400		41,840,467
AU Optronics Corp. SP ADRa,b		9,152,548		82,189,881
Capital Securities Corp.		20,632,916		9,564,814
Catcher Technology Co. Ltd.		3,683,210		15,625,171
Cathay Financial Holding Co. Ltd.		60,804,350		98,602,878
Chang Hwa Commercial Bank Ltd.		13,592,000		10,160,414
Cheng Shin Rubber Industry Co. Ltd.		19,440,893		39,707,006
Cheng Uei Precision Industry Co. Ltd.		3,007,260		5,843,808
Chicony Electronics Co. Ltd.		6,284,600		12,018,937

16 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
Chimei Innolux Corp.b		40,171,487	$	43,429,176
China Airlines Ltd.b		18,824,000		12,429,276
China Development Financial Holding Corp.		7,747,900		3,021,798
China Life Insurance Co. Ltd.		11,159,726		10,785,706
China Motor Co. Ltd.		5,480,000		4,649,528
China Petrochemical Development Corp.b		15,458,000		17,875,023
China Steel Corp.		119,305,412		136,735,585
Chinatrust Financial Holding Co. Ltd.		65,293,720		51,824,605
Chunghwa Picture Tubes Ltd.b		1,904,199		259,933
Chunghwa Telecom Co. Ltd. SP ADR		7,933,030		234,103,715
Clevo Co.		7,412,000		12,957,849
CMC Magnetics Corp.b		25,442,000		6,058,109
Compal Electronics Inc.		40,407,908		48,039,422
Coretronic Corp.		6,526,000		10,638,651
Delta Electronics Inc.		20,210,000		85,390,562
E Ink Holdings Inc.b		8,269,000		14,710,686
E.Sun Financial Holding Co. Ltd.		6,337,000		3,945,769
Epistar Corp.		4,194,345		14,564,876
Eternal Chemical Co. Ltd.		5,188,800		5,627,335
EVA Airways Corp.b		10,784,000		9,887,609
Evergreen International Storage & Transport Corp.		7,524,000		6,319,415
Evergreen Marine Corp. Ltd.b		15,219,000		13,641,559
Everlight Electronics Co. Ltd.		1,971,000		5,610,306
Far Eastern Department Stores Co. Ltd.		13,278,125		20,328,550
Far Eastern New Century Corp.		25,369,842		39,969,066
Far EasTone Telecommunications Co. Ltd.		12,972,000		18,861,337
Farglory Land Development Co. Ltd.		13,948,000		30,826,276
Feng Hsin Iron & Steel Co. Ltd.		5,478,000		9,361,256
First Financial Holding Co. Ltd.		23,946,350		19,784,864
Formosa Chemicals & Fibre Corp.		28,316,000		97,843,027
Formosa International Hotels Corp.		210,300		3,539,818
Formosa Petrochemical Corp.		7,744,000		23,764,812
Formosa Plastics Corp.		43,464,000		147,954,907
Formosa Taffeta Co. Ltd.		9,231,000		8,684,765

Security	Shares		Value
Foxconn Technology Co. Ltd.		2,539,710	$	9,210,148
Fubon Financial Holding Co. Ltd.		60,411,121		77,607,454
Giant Manufacturing Co. Ltd.		4,613,203		17,597,624
HannStar Display Corp.b		15,595,963		2,865,254
Highwealth Construction Corp.		3,830,000		8,320,494
Hiwin Technologies Corp.		1,532,000		9,696,323
Hon Hai Precision Industry Co. Ltd.		92,231,373		343,939,276
HTC Corp.		8,011,389		291,899,955
Hua Nan Financial Holdings Co. Ltd.		2,304,490		1,655,658
Inventec Co. Ltd.		15,386,050		8,053,695
KGI Securities Co. Ltd.		47,770,000		23,288,778
Largan Precision Co. Ltd.		1,189,000		32,989,772
LCY Chemical Corp.		4,040,172		11,168,319
Lite-On Technology Corp.		14,517,114		18,376,323
Macronix International Co. Ltd.		40,855,275		30,051,296
MediaTek Inc.		10,211,176		116,680,647
Mega Financial Holding Co. Ltd.		31,160,000		22,866,587
MiTAC International Corp.		7,106,728		3,221,530
Motech Industries Inc.		3,762,124		16,732,200
MStar Semiconductor Inc.		3,256,000		29,797,840
Nan Kang Rubber Tire Co. Ltd.b		4,364,000		7,129,100
Nan Ya Plastics Corp.		49,587,000		145,386,894
Nan Ya Printed Circuit Board Corp.		909,000		3,296,449
Novatek Microelectronics Corp. Ltd.		602,000		1,870,075
Pegatron Corp.b		9,788,414		11,720,792
Phison Electronics Corp.		1,407,535		9,004,869
Pixart Imaging Inc.		61,000		224,344
Polaris Securities Co. Ltd.		37,910,000		23,669,727
Pou Chen Corp.		29,565,220		26,247,931
Powertech Technology Inc.		2,488,000		8,809,826
President Chain Store Corp.		6,596,000		27,869,181
Qisda Corp.b		13,022,000		7,930,020
Quanta Computer Inc.		18,221,000		36,218,040
Realtek Semiconductor Corp.		643,420		1,281,133
Richtek Technology Corp.		478,150		3,827,865
Ruentex Development Co. Ltd.		10,895,000		16,642,758
Ruentex Industries Ltd.		8,889,000		22,260,791
Shin Kong Financial Holding Co. Ltd.b		17,391,002		7,407,481

SCHEDULE OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
Siliconware Precision Industries Co. Ltd. SP ADRa		12,538,647	$	85,137,413
Simplo Technology Co. Ltd.		2,938,200		19,601,647
Sino-American Silicon Products Inc.		2,890,000		13,496,063
SinoPac Financial Holdings Co. Ltd.		5,344,000		2,239,645
Synnex Technology International Corp.		13,561,985		32,571,441
Tainan Spinning Co. Ltd.		7,681,000		4,624,950
Taishin Financial Holdings Co. Ltd.b		9,711,970		5,100,260
Taiwan Business Bank Ltd.b		16,222,640		6,438,076
Taiwan Cement Corp.		36,555,296		36,768,358
Taiwan Cooperative Bank Co. Ltd.		17,069,000		13,080,752
Taiwan Fertilizer Co. Ltd.		6,191,000		19,528,475
Taiwan Glass Industrial Corp.		3,397,060		4,189,721
Taiwan Mobile Co. Ltd.		24,784,000		56,385,787
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR		40,817,142		501,642,675
Tatung Co. Ltd.b		60,668,000		14,342,152
Teco Electric and Machinery Co. Ltd.		30,806,000		18,338,388
TPK Holding Co. Ltd.b		861,000		24,095,340
Transcend Information Inc.		100,000		266,852
Tripod Technology Corp.		2,275,000		10,273,820
TSRC Corp.		8,053,000		18,872,302
Tung Ho Steel Enterprise Corp.		10,206,000		10,893,985
U-Ming Marine Transport Corp.		4,530,000		9,174,798
Uni-President Enterprises Co.		51,041,513		65,919,985
Unimicron Technology Corp.		8,596,000		16,174,680
United Microelectronics Corp. SP ADRa		44,914,303		125,760,048
Walsin Lihwa Corp.b		18,257,000		9,837,541
Wan Hai Lines Ltd.b		2,289,000		1,589,712
Winbond Electronics Corp.b		1,571,000		527,794
Wintek Corp.b		13,900,000		27,153,606
Wistron Corp.		15,488,059		28,030,398
WPG Holdings Co. Ltd.		9,169,966		15,999,798
Yang Ming Marine Transport Corp.b		27,190,978		23,349,369
Young Fast Optoelectronics Co. Ltd.		1,392,034		12,429,880

Security	Shares		Value
Yuanta Financial Holding Co. Ltd.		43,091,000	$	29,853,015
Yulon Motor Co. Ltd.		23,291,000		46,534,771
				4,364,949,502
THAILAND – 1.64%
Advanced Information Service PCL Foreign		932,900		2,425,693
Advanced Information Service PCL NVDR		1,609,800		4,185,743
Bangkok Bank PCL Foreign		8,868,900		47,426,497
Bank of Ayudhya PCL NVDR		5,824,900		4,705,643
Banpu PCL Foreign		1,791,400		42,536,595
BEC World PCL Foreign		282,000		308,978
BEC World PCL NVDR		1,476,900		1,618,190
Charoen Pokphand Foods PCL Foreign		7,117,000		5,539,971
Charoen Pokphand Foods PCL NVDR		30,356,900		23,630,228
CP All PCL Foreign		2,549,700		3,252,275
CP All PCL NVDR		14,614,700		18,641,809
Glow Energy PCL Foreign		106,600		142,075
Glow Energy PCL NVDR		2,997,800		3,995,433
Indorama Ventures PCL NVDR		9,759,680		13,326,791
IRPC PCL Foreign		88,191,200		16,008,542
Kasikornbank PCL Foreign		14,959,000		59,199,967
Krung Thai Bank PCL Foreign		47,067,800		25,246,506
PTT Aromatics & Refining PCL Foreign		20,193,386		24,436,804
PTT Chemical PCL Foreign		6,522,168		30,717,651
PTT Exploration & Production PCL Foreign		16,819,600		99,019,722
PTT PCL Foreign		9,487,600		104,573,056
Siam Cement PCL Foreign		2,320,800		25,124,605
Siam Cement PCL NVDR		27,800		282,773
Siam Commercial Bank PCL NVDR		9,213,400		30,736,445
Thai Airways International PCL NVDR		6,327,471		7,967,543
Thai Oil PCL NVDR		3,218,700		7,763,831
				602,813,366
TURKEY – 1.46%
Akbank TASa		10,541,075		49,273,366
Anadolu Efes Biracilik ve Malt Sanayii AS		1,273,209		17,186,173

18 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
Arcelik AS		432,636	$	2,006,099
Asya Katilim Bankasi ASa		16,323,843		26,318,907
BIM Birlesik Magazalar AS		803,066		25,243,232
Coca-Cola Icecek AS		127,166		1,406,598
Enka Insaat ve Sanayi AS		840,917		2,774,678
Eregli Demir ve Celik Fabrikalari TASa,b		8,167,064		25,212,657
Haci Omer Sabanci Holding ASa		4,254,412		17,068,695
KOC Holding AS		5,213,050		21,826,918
Migros Ticaret AS		1		13
Turk Hava Yollari Anonim Ortakligib		5,999,777		16,797,276
Turk Telekomunikasyon AS		3,167,038		14,091,558
Turkcell Iletisim Hizmetleri ASa		5,862,811		32,827,638
Turkiye Garanti Bankasi AS		22,249,195		98,440,383
Turkiye Halk Bankasi AS		2,524,666		18,301,541
Turkiye Is Bankasi AS		13,629,712		42,417,176
Turkiye Petrol Rafinerileri AS		1,244,073		30,942,448
Turkiye Vakiflar Bankasi TAO		21,689,575		52,455,103
Yapi ve Kredi Bankasi ASa,b		14,627,043		40,767,787
				535,358,246
TOTAL COMMON STOCKS
(Cost: $31,207,190,333)				33,694,880,676
EXCHANGE-TRADED FUNDS – 0.01%
iShares MSCI Malaysia Index Funde		361,044		5,079,889
iShares MSCI South Korea Index Funde		323		18,753
iShares MSCI Taiwan Index Funda,e		44		649
TOTAL EXCHANGE-TRADED FUNDS
(Cost: $5,021,708)				5,099,291
PREFERRED STOCKS – 7.84%
BRAZIL – 7.33%
AES Tiete SA		988,700		13,713,726
Banco Bradesco SA SP ADR		16,997,285		332,806,840
Banco do Estado do Rio Grandedo Sul SA		738,900		8,109,987
Bradespar SA		1,813,200		47,216,244
Brasil Telecom SA SP ADR		1,181,386		27,230,947

Security	Shares		Value
Braskem SA Class A		915,200	$	11,193,014
Centrais Eletricas Brasileiras SA Class B		1,835,218		33,528,431
Centrais Eletricas Brasileiras SA Class B SP ADR		264,514		4,782,413
Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A		95,400		3,555,494
Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A SP ADRa		567,440		21,398,162
Companhia de Bebidas das Americas SP ADR		7,204,329		194,588,926
Companhia de Transmissao de Energia Electrica Paulista		319,700		9,828,915
Companhia Energetica de Minas Gerais		1,326,700		22,122,334
Companhia Energetica de Minas Gerais SP ADR		2,949,231		49,724,035
Companhia Energetica de Sao Paulo Class B		1,592,100		26,211,754
Companhia Paranaense de Energia Class B		686,700		17,310,373
Companhia Paranaense de Energia Class B SP ADR		503,115		12,839,495
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA		1,381,700		26,747,419
Gerdau SA SP ADRa		6,619,435		89,362,373
Itau Unibanco Holding SA		436,300		9,735,315
Itausa – Investimentos Itau SA		24,311,372		177,988,214
Klabin SA		3,054,400		11,346,704
Lojas Americanas SA		2,574,200		20,802,243
Metalurgica Gerdau SA		1,831,600		28,542,120
Petroleo Brasileiro SA		41,286,627		711,597,998
Petroleo Brasileiro SA SP ADR		3,719		130,797
Suzano Bahia Sul Papel e Celulose SA		1,125,800		9,647,581
Tele Norte Leste Participacoes SA
SP ADR		2,413,526		38,109,576
Telemar Norte Leste SA Class A		89,900		2,618,062
TIM Participacoes SA		2,335,400		8,886,970
Ultrapar Participacoes SA		2,376,000		37,527,102

SCHEDULE OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

Security	Shares		Value
Usinas Siderurgicas de Minas Gerais SA Class A		5,356,000	$	61,370,160
Vale Fertilizantes SA		261,100		2,791,764
Vale SA Class A SP ADR		19,589,599		587,100,282
Vivo Participacoes SA		661,500		23,815,915
				2,684,281,685
RUSSIA – 0.29%
Sberbank of Russia		12,889,280		31,581,519
Surgutneftegas OJSC		83,656,500		49,574,158
Transneft OAO SP ADR		18,736		26,557,374
				107,713,051
SOUTH KOREA – 0.22%
Hyundai Motor Co. Ltd.		45,630		2,397,430
Hyundai Motor Co. Ltd. Series 2		267,390		14,878,033
LG Chem Ltd.		85,564		10,689,340
LG Electronics Inc.		7,410		271,806
Samsung Electronics Co. Ltd.		98,430		52,936,703
				81,173,312
TOTAL PREFERRED STOCKS
(Cost: $2,497,641,192)				2,873,168,048
RIGHTS – 0.00%
BRAZIL – 0.00%
Tele Norte Leste Participacoes SAb		252,608		6,093
Telemar Norte Leste SAb,f		169		–
Telemar Norte Leste SA Class A Preferredb		79,904		3,855
				9,948
TOTAL RIGHTS
(Cost: $0)				9,948
SHORT-TERM INVESTMENTS – 3.01%
MONEY MARKET FUNDS – 3.01%
BlackRock Cash Funds: Institutional, SL Agency Shares 0.23%e,g,h		910,113,108		910,113,108
BlackRock Cash Funds: Prime, SL Agency Shares 0.22%e,g,h		130,790,727		130,790,727

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares 0.07%e,g		61,324,356	$	61,324,356
				1,102,228,191
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,102,228,191)				1,102,228,191
TOTAL INVESTMENTS IN SECURITIES – 102.81%
(Cost: $34,812,081,424)				37,675,386,154
Other Assets, Less Liabilities – (2.81)%				(1,028,352,111)
NET ASSETS – 100.00%			$	36,647,034,043

CPO – Certificates of Participation (Ordinary)

GDR – Global Depositary Receipts

NVDR – Non-Voting Depositary Receipts

SP ADR – Sponsored American Depositary Receipts

SP GDR – Sponsored Global Depositary Receipts

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

^b  Non-income earning security.

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

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

^e  Affiliated issuer. See Note 2.

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

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

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

See notes to financial statements.

20 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Assets and Liabilities (Unaudited)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

February 28, 2011

ASSETS
Investments, at cost:
Unaffiliated issuers	$	33,704,831,525
Affiliated issuers (Note 2)		1,107,249,899
Total cost of investments	$	34,812,081,424
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated issuers	$	36,568,058,672
Affiliated issuers (Note 2)		1,107,327,482
Total fair value of investments		37,675,386,154
Foreign currencies, at valueb		6,223,560
Cash		5,179,224
Receivables:
Investment securities sold		422,313,358
Dividends and interest		57,763,768
Total Assets		38,166,866,064
LIABILITIES
Payables:
Investment securities purchased		256,671,754
Securities related to in-kind transactions (Note 4)		93,680
Collateral for securities on loan (Note 5)		1,040,903,835
Capital shares redeemed		202,304,948
Investment advisory fees (Note 2)		19,857,804
Total Liabilities		1,519,832,021
NET ASSETS	$	36,647,034,043
Net assets consist of:
Paid-in capital	$	33,647,728,557
Distributions in excess of net investment income		(94,686,647	)
Undistributed net realized gain		230,111,764
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		2,863,880,369
NET ASSETS	$	36,647,034,043
Shares outstandingc		800,100,000
Net asset value per share	$	45.80

^a  Securities on loan with a value of $990,189,105. See Note 5.

^b  Cost of foreign currencies: $6,137,279.

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

See notes to financial statements.

FINANCIAL STATEMENTS 21

Statement of Operations (Unaudited)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

Six months ended February 28, 2011

NET INVESTMENT INCOME
Dividends from unaffiliated issuersa	$	297,038,907
Dividends from affiliated issuers (Note 2)b		2,913,276
Interest from unaffiliated issuers		1,000
Interest from affiliated issuers (Note 2)		53,437
Securities lending income from affiliated issuers (Note 2)		11,025,465
Total investment income		311,032,085
EXPENSES
Investment advisory fees (Note 2)		149,543,010
Total expenses		149,543,010
Less investment advisory fees waived (Note 2)		(1,794,047	)
Net expenses		147,748,963
Net investment income		163,283,122
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments in unaffiliated issuers		(462,684,438	)
Investments in affiliated issuers (Note 2)		62,096,246
In-kind redemptions		3,342,916,624
Foreign currency transactions		(18,484,890	)
Net realized gain		2,923,843,542
Net change in unrealized appreciation/depreciation on:
Investments		3,025,424,374
Translation of assets and liabilities in foreign currencies		653,179
Net change in unrealized appreciation/depreciation		3,026,077,553
Net realized and unrealized gain		5,949,921,095
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,113,204,217

^a  Net of foreign withholding tax of $28,907,591.

^b  Net of foreign withholding tax of $309,109.

See notes to financial statements.

22 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

	Six months ended February 28, 2011 (Unaudited)			Year ended August 31, 2010
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	163,283,122		$	520,250,863
Net realized gain		2,923,843,542			1,299,482,089
Net change in unrealized appreciation/depreciation		3,026,077,553			2,361,536,205
Net increase in net assets resulting from operations		6,113,204,217			4,181,269,157
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(387,925,465	)		(551,986,882	)
Total distributions to shareholders		(387,925,465	)		(551,986,882	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		2,933,545,307			13,614,469,565
Cost of shares redeemed		(11,778,744,880	)		(7,744,918,384	)
Net increase (decrease) in net assets from capital share transactions		(8,845,199,573	)		5,869,551,181
INCREASE (DECREASE) IN NET ASSETS		(3,119,920,821	)		9,498,833,456
NET ASSETS
Beginning of period		39,766,954,864			30,268,121,408
End of period	$	36,647,034,043		$	39,766,954,864
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(94,686,647	)	$	129,955,696
SHARES ISSUED AND REDEEMED
Shares sold		64,800,000			337,050,000
Shares redeemed		(254,250,000	)		(200,700,000	)
Net increase (decrease) in shares outstanding		(189,450,000	)		136,350,000

See notes to financial statements.

FINANCIAL STATEMENTS 23

Financial Highlights

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

(For a share outstanding throughout each period)

	Six months ended Feb. 28, 2011 (Unaudited)			Year ended Aug. 31, 2010			Year ended Aug. 31, 2009			Year ended Aug. 31, 2008a			Year ended Aug. 31, 2007a			Year ended Aug. 31, 2006a
Net asset value, beginning of period	$	40.19		$	35.48		$	40.07		$	44.78		$	32.48		$	25.97
Income from investment operations:
Net investment incomeb		0.17			0.58			0.66			1.10			0.63			0.55
Net realized and unrealized gain (loss)c		5.82			4.73			(4.66	)		(4.64	)		12.19			6.29
Total from investment operations		5.99			5.31			(4.00	)		(3.54	)		12.82			6.84
Less distributions from:
Net investment income		(0.38	)		(0.60	)		(0.59	)		(1.17	)		(0.52	)		(0.33	)
Total distributions		(0.38	)		(0.60	)		(0.59	)		(1.17	)		(0.52	)		(0.33	)
Net asset value, end of period	$	45.80		$	40.19		$	35.48		$	40.07		$	44.78		$	32.48
Total return		14.90	%d		14.97	%		(9.47	)%		(8.36	)%		39.86	%		26.44	%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	36,647,034		$	39,766,955		$	30,268,121		$	20,302,756		$	18,198,371		$	11,969,380
Ratio of expenses to average net assets prior to waived feese,f		0.67	%		0.68	%		0.72	%		0.72	%		0.74	%		0.75	%
Ratio of expenses to average net assets after waived feese,f		0.66	%		0.68	%		0.72	%		0.72	%		0.74	%		0.75	%
Ratio of net investment income to average net assetse		0.73	%		1.45	%		2.32	%		2.32	%		1.63	%		1.77	%
Portfolio turnover rateg		9	%		14	%		5	%		11	%		5	%		12	%

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

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

^f  Amounts have been adjusted as necessary to be consistent with current period presentation of foreign taxes.

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

See notes to financial statements.

24 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

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 its underlying index. The investment adviser uses a “passive” or index approach to try 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 issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

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”);

NOTES TO FINANCIAL STATEMENTS 25

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

• 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”); and

• 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.

26 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

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.

The following table summarizes the value of each of the Fund’s investments according to the fair value hierarchy as of February 28, 2011. The breakdown of the Fund’s investments into major categories is disclosed in its Schedule of Investments.

	Investments in Securities
	Level 1		Level 2		Level 3			Total
Common Stocks	$	30,358,764,906	$	3,336,115,770	$	–		$	33,694,880,676
Exchange-Traded Funds		5,099,291		–		–			5,099,291
Preferred Stock		2,873,168,048		–		–			2,873,168,048
Rights		9,948		–		0	a		9,948
Short-Term Investments		1,102,228,191		–		–			1,102,228,191
	$	34,339,270,384	$	3,336,115,770	$	0	a	$	37,675,386,154

^a  Rounds to less than $1.

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.

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, 2011, if any, are reflected in the Fund’s Statement of Assets and Liabilities.

NOTES TO FINANCIAL STATEMENTS 27

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

DISTRIBUTIONS TO SHAREHOLDERS

Distributions from net investment income, if any, generally are declared and paid semi-annually by the Fund. Distributions of net realized capital gains, if any, generally are declared and paid 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, 2011.

As of August 31, 2010, 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, $228,196,854 and $1,201,366,175 expiring in 2012, 2013, 2014, 2015, 2016, 2017 and 2018, 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 between paid-in capital, accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss) as a result of permanent book and tax differences primarily attributed to net investment loss, return of capital, passive foreign investment companies, and realized gains (losses) from foreign currency transactions and in-kind redemptions. These reclassifications have no effect on net assets or net asset values per share.

As of February 28, 2011, the cost of investments for federal income tax purposes was $35,214,414,757. Net unrealized appreciation was $2,460,971,397, of which $4,908,692,655 represented gross unrealized appreciation on securities and $2,447,721,258 represented gross unrealized depreciation on securities.

Management has reviewed the tax positions as of February 28, 2011, inclusive of the 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

Pursuant to an Investment Advisory Agreement with the Company, BlackRock Fund Advisors (“BFA”) manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for all 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, litigation expenses and any extraordinary expenses.

28 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

Effective January 1, 2011, 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, up to and including $42 billion
0.56	Over $42 billion, up to and including $56 billion
0.50	Over $56 billion, up to and including $70 billion
0.45	Over $70 billion, up to and including $84 billion
0.40	Over $84 billion

Prior to January 1, 2011, for its investment advisory services to the Fund, BFA was 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 voluntarily waived a portion of its investment advisory fees for the Fund in the amount of $1,311,265.

BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through June 30, 2012 in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares Funds. In association with this agreement, for the six months ended February 28, 2011, BFA waived its investment advisory fees for the Fund in the amount of $482,782.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“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 combined income earned from investment of cash collateral received for the loan of securities and any fees paid by borrowers. For the six months ended February 28, 2011, BTC earned securities lending agent fees from the Fund of $5,855,396.

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.

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, 2011, the Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays PLC (“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.

NOTES TO FINANCIAL STATEMENTS 29

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

Investments in issuers considered to be affiliates of the Fund (excluding short-term investments) during the six months ended February 28, 2011, 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		Gross Additions		Gross Reductions		Number of Shares Held End of Period		Value at End of Period		Dividend Income			Net Realized Gain
iShares MSCI Malaysia Index Fund		1,314,976		343,038		1,296,970		361,044	$	5,079,889	$	374,778		$	6,642,208
iShares MSCI South Korea Index Fund		1,623,064		48,236		1,670,977		323		18,753		269,616			18,148,528
iShares MSCI Taiwan Index Fund		6,577,720		–		6,577,676		44		649		1,547,628			17,759,154
Jollibee Foods Corp.a		61,761,000		140,450		25,341,601		36,559,849		57,074,965		721,254	b		19,546,356
									$	62,174,256	$	2,913,276		$	62,096,246

^a  Not an affiliate at the end of the period.

^b  Net of foreign withholding tax of $309,109.

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, 2011 aggregated $4,229,985,751 and $3,698,901,837, respectively.

In-kind purchases and sales (see Note 4) for the six months ended February 28, 2011, aggregated $971,200,804 and $10,471,053,723, respectively.

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by the Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) 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 securities, which constitutes an optimized representation of the securities of 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.

30 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS INDEX FUND

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 current 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 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 or its affiliates; such reinvestments are subject to investment risk.

As of February 28, 2011, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of the securities on loan as of February 28, 2011 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, plus any fees paid by borrowers and less the fees paid to BTC as securities lending agent which are subject to adjustments pursuant to the securities lending agreement.

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 31

Notes:

32 2011 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 33

Notes:

34 2011 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”). BlackRock Fund Advisors (“BFA”) serves as the investment advisor to the Funds. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A., neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor 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.

©2011 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-85-0211

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 Latham
	Michael Latham, President (Principal Executive Officer)
	Date: April 20, 2011

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 Latham
	Michael Latham, President (Principal Executive Officer)
	Date: April 20, 2011
By:	/s/ Jack Gee
	Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
	Date: April 20, 2011