Form N-CSR for iShares Inc.

Name (Age)

Position(s)

Principal Occupation(s)

During the Past 5 Years

Other Directorships Held by Director

Robert S. Kapito^a (57)

Director (since 2009).

President and Director, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock, Inc.’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002); President of the Board of Directors, Periwinkle Theatre for Youth (since 1983).

Trustee of iShares Trust (since 2009); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of BlackRock, Inc. (since 2006).

Mark Wiedman^b (43)

Director (since 2013).

Managing Director, BlackRock, Inc. (since 2007); Global Head of iShares (since 2011); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).

Trustee of iShares Trust. (since 2013); Director of iShares MSCI Russia Capped ETF, Inc. (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

N-CSR 1 d794282dncsr.htm FORM N-CSR FOR ISHARES INC. Form N-CSR for iShares Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

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

1 Iron Street, Boston, MA 02210

(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: 415-670-2000

Date of fiscal year end: August 31, 2014

Date of reporting period: August 31, 2014

Item 1. Reports to Stockholders.

AUGUST 31, 2014


2014 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Austria Capped ETF | EWO | NYSE Arca

^Ø

iShares MSCI Belgium Capped ETF | EWK | NYSE Arca

^Ø

iShares MSCI Emerging Markets Eastern Europe ETF | ESR | NYSE Arca

^Ø

iShares MSCI France ETF | EWQ | NYSE Arca

^Ø

iShares MSCI Italy Capped ETF | EWI | NYSE Arca

^Ø

iShares MSCI Netherlands ETF | EWN | NYSE Arca

^Ø

iShares MSCI Spain Capped ETF | EWP | NYSE Arca

^Ø

iShares MSCI Sweden ETF | EWD | NYSE Arca

^Ø

iShares MSCI Switzerland Capped ETF | EWL | NYSE Arca

^Ø

iShares MSCI United Kingdom ETF | EWU | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			26
Shareholder Expenses			26
Schedules of Investments			27
iShares MSCI Austria Capped ETF			27
iShares MSCI Belgium Capped ETF			29
iShares MSCI Emerging Markets Eastern Europe ETF			31
iShares MSCI France ETF			33
iShares MSCI Italy Capped ETF			36
iShares MSCI Netherlands ETF			38
iShares MSCI Spain Capped ETF			40
iShares MSCI Sweden ETF			41
iShares MSCI Switzerland Capped ETF			43
iShares MSCI United Kingdom ETF			45
Financial Statements			48
Financial Highlights			61
Notes to Financial Statements			71
Report of Independent Registered Public Accounting Firm			86
Tax Information			87
Board Review and Approval of Investment Advisory Contract			88
Supplemental Information			95
Director and Officer Information			103

Management’s Discussion of Fund Performance

iSHARES^®, INC.

INTERNATIONAL MARKET OVERVIEW

International equities rose during the 12-month period ended August 31, 2014 (the “reporting period”), as modest economic growth and solid corporate profits offset concerns about global growth, the banking system and geopolitical events. Monetary policy continued to be a driving force for international equities, as several countries took steps to stimulate economic growth (as measured by gross domestic product, or “GDP”). The European Central Bank (“ECB”) cut interest rates several times, the Bank of Japan continued its bond purchasing efforts, and the U.S. Federal Reserve Bank (the “Fed”) reduced its unprecedented stimulus program.

Accommodative monetary policy and improving global growth led to a sustained rally in international equities from September to December 2013. However, events in early 2014 dampened the rally, as slow economic growth in the U.S. and China and the conflict in Ukraine raised concerns for international investors. In the final months of the reporting period, stagnant European growth, a Portuguese bank default and military escalation in Ukraine dampened international markets’ performance, particularly in Europe. Despite these challenges, most international markets finished with a solid return for the reporting period.

North American markets delivered strong gains during the reporting period. The U.S. economy strengthened in the latter half of the reporting period, as the combination of accommodative monetary policy, low inflation, steady job growth and rising corporate profits drove economic growth. Canada and Mexico also generated steady economic growth and rising stock prices during the reporting period.

Asian markets advanced during the reporting period, as investors generally embraced the region’s progress toward economic and political reform. Slow global growth presented new challenges for China and India after rapid economic growth in past decades. China, India and Japan, the three largest economies in the region, pursued dramatic changes to improve their competitive edge in the changing global economy.

China, Asia’s largest economy, continued to transition from an economy based on investment and manufacturing toward one based on consumption and services, which led to slowing economic growth. India underwent substantial political and economic change during the reporting period. The Bank of India made significant progress on curbing inflation, while the Indian government pursued growth-oriented political reform. By contrast, Japan attempted to reignite economic growth with monetary stimulus and political reform after twenty years of economic stagnation.

European equities posted solid gains while trailing developed markets in Asia and North America. Europe took steps toward an economic recovery during the reporting period after enduring a financial crisis and an economic recession. Europe’s uneven path to recovery included an improving credit environment and lower interest rates, as well as declining inflation and stagnant demand. France and Germany were mired in sluggish economic growth, while the United Kingdom expanded at a moderate pace during the reporting period. Spain and Italy experienced dramatically improving credit markets and lower interest rates, helping to revive investors’ interest in Spanish and Italian financial markets. European equity markets declined during the final months of the reporting period, as fear of economic stagnation and declining prices spurred the ECB to consider additional monetary support.

At the highest level, economic crosscurrents rippled across markets, while the ebb and flow of geopolitical risks drove market performance during the reporting period. International markets advanced through the uncertainty, as investors welcomed moderate global growth, low inflation and improving credit conditions.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI AUSTRIA CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		1.56%		1.03%		1.64%		1.56%		1.03%		1.64%
5 Years		0.16%		0.02%		0.19%		0.80%		0.11%		0.97%
10 Years		3.00%		2.86%		2.83%		34.37%		32.64%		32.20%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Index performance through January 31, 2008 reflects the performance of the MSCI Austria Index. Index performance beginning on February 1, 2008 through February 11, 2013 reflects the performance of the MSCI Austria Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Austria Investable Market Index 25/50.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 26 for more information.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	879.20	$	2.27	$	1,000.00	$	1,022.80	$	2.45		0.48%

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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 26 for more information.


6		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI AUSTRIA CAPPED ETF

The iShares MSCI Austria Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Austrian equities, as represented by the MSCI Austria Investable Market Index 25/50 (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 1.56%, net of fees, while the total return for the Index was 1.64%.

The Index posted a modestly positive return for the reporting period. The Index underperformed on local credit concerns while the broad international developed markets, as measured by the MSCI EAFE Index, advanced on improving credit conditions and generally accommodative monetary policy. During the first half of the reporting period, Austrian stocks benefited from the broad rally in international stocks. However, Austrian stocks declined sharply and trailed international stocks in the second half of the reporting period.

The financials sector, the largest sector representation in the Index, weighed on performance during the reporting period. Austrian banks have struggled to rebuild capital since the financial crisis in 2008. During the reporting period, Austria’s banking issues continued to raise concerns for investors. In particular, loans made to emerging European countries, as well as exposures in Russia and Ukraine, became problematic for several Austrian banks.

The Index declined sharply in the last two months of the reporting period as investors’ scrutiny intensified on the Austrian banking sector after a series of negative headlines. Hungarian legislation that required banks to reimburse borrowers for credit costs weighed on the profits of Austrian banks. The continued weakness in the credit quality of Austrian loans also prompted negative views from a major credit agency. Similarly, the Austrian central bank criticized lending practices, stating that lenders should review their business model.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	40.53	%
Industrials	22.91
Materials	16.22
Energy	13.75
Telecommunication Services	2.45
Information Technology	1.95
Utilities	1.62
Consumer Discretionary	0.57

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Erste Group Bank AG	13.88	%
OMV AG	10.65
Voestalpine AG	8.72
Andritz AG	6.86
Raiffeisen International Bank Holding AG	4.96
IMMOFINANZ AG	4.54
Vienna Insurance Group AG	4.48
Wienerberger AG	4.34
Oesterreichische Post AG	3.96
CA Immobilien Anlagen AG	3.92

TOTAL	66.31	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI BELGIUM CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.05%		22.79%		23.12%		23.05%		22.79%		23.12%
5 Years		10.84%		10.80%		12.67%		67.29%		66.98%		81.58%
10 Years		5.14%		5.03%		5.57%		65.12%		63.38%		71.96%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Index performance through November 30, 2007 reflects the performance of the MSCI Belgium Index. Index performance beginning on December 1, 2007 through November 8, 2012 reflects the performance of the MSCI Belgium Investable Market Index. Index performance beginning on November 9, 2012 reflects the performance of the MSCI Belgium Investable Market Index 25/50.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,000.30	$	2.42	$	1,000.00	$	1,022.80	$	2.45		0.48%


8		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI BELGIUM CAPPED ETF

The iShares MSCI Belgium Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Belgian equities, as represented by the MSCI Belgium Investable Market Index 25/50 (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 23.05%, net of fees, while the total return for the Index was 23.12%.

Belgian stocks, as represented by the Index, posted a strong return for the reporting period, outperforming the broad international developed markets, as measured by the MSCI EAFE Index.

The Belgian economy experienced slightly positive growth during the reporting period, as the eurozone’s economy emerged from recession. Low and falling inflation during the reporting period led to concern that the Belgian economy was at risk of a deflationary cycle. Nevertheless, investors found reasons for optimism, as Belgium was well-positioned to benefit from a broader European economic recovery. Belgium’s export-based economy relies heavily on trade with the rest of Europe. Signs of rising demand in Europe boosted industrial production in Belgium, leading investors to Belgian stocks that would benefit from the European recovery. Stock performance was especially strong in the first half of the reporting period, before stagnating in the second half of the reporting period.

Anheuser-Busch InBev NV, the largest constituent in the Index, comprised approximately 20% of the Index as of the end of the reporting period. The stock rallied during the reporting period, contributing to the strong performance of the Index.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Consumer Staples	28.91	%
Financials	26.29
Health Care	12.61
Materials	12.35
Telecommunication Services	4.38
Consumer Discretionary	4.35
Information Technology	3.98
Industrials	3.48
Energy	2.37
Utilities	1.28

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Anheuser-Busch InBev NV	22.33	%
KBC Groep NV	7.72
UCB SA	6.67
Solvay SA	5.15
Groupe Bruxelles Lambert SA	4.43
Delhaize Brothers and Co. “The Lion” (Delhaize Group) SA	4.26
Ageas	4.17
Belgacom SA	3.53
Umicore SA	3.31
Colruyt SA	2.31

TOTAL	63.88	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS EASTERN EUROPE ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(3.21)%		(2.90)%		(2.83)%		(3.21)%		(2.90)%		(2.83)%
Since Inception		0.36%		0.34%		0.85%		1.76%		1.70%		4.25%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 9/30/09. The first day of secondary market trading was 10/2/09.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	961.10	$	3.36	$	1,000.00	$	1,021.80	$	3.47		0.68%


10		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS EASTERN EUROPE ETF

The iShares MSCI Emerging Markets Eastern Europe ETF (the “Fund”) seeks to track the investment results of an index composed of Eastern European emerging market equities, as represented by the MSCI Emerging Markets Eastern Europe Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was -3.21%, net of fees, while the total return for the Index was -2.83%.

As represented by the Index, emerging markets stocks in Eastern Europe declined by approximately 3% for the reporting period, underperforming the gain of the broad MSCI Emerging Markets Index.

The key factor behind the overall decline for the Index was a negative return for Russian stocks, which comprised approximately 72% of the Index on average for the reporting period. The Russian constituents of the Index declined by 6% for the reporting period as persistent weakness in the Russian economy and an armed conflict in neighboring Ukraine weighed on the country’s equity market.

Among the other three countries in the Index, Poland and the Czech Republic (together comprising approximately one-quarter of the Index) posted positive returns, gaining 7% and 18%, respectively, for the reporting period. The economies in both countries began to recover after an extended period of weakness. The remaining country within the Index, Hungary, produced a large decline, falling by 17% amid a softening economy and its close proximity to the conflict in the Ukraine.

Currency fluctuations relative to the U.S. dollar also contributed to the decline in the Index for the reporting period. A stronger U.S. dollar reduces international equity returns for U.S. investors. Although the U.S. dollar declined by 1% against the Polish zloty, it appreciated by 5% versus the Hungarian forint, 8% against the Czech koruna, and 11% versus the Russian ruble during the reporting period.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Energy	42.26	%
Financials	26.29
Materials	10.05
Telecommunication Services	7.64
Utilities	5.91
Consumer Staples	5.72
Consumer Discretionary	1.33
Health Care	0.80

TOTAL	100.00	%

COUNTRY ALLOCATIONS

As of 8/31/14


Country		Percentage of Total Investments*


Russia	69.50	%
Poland	24.26
Czech Republic	3.32
Hungary	2.92

TOTAL	100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI FRANCE ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		14.07%		13.45%		14.11%		14.07%		13.45%		14.11%
5 Years		5.60%		5.48%		5.64%		31.33%		30.60%		31.58%
10 Years		5.95%		5.87%		6.09%		78.31%		76.82%		80.54%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	965.40	$	2.38	$	1,000.00	$	1,022.80	$	2.45		0.48%


12		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI FRANCE ETF

The iShares MSCI France ETF (the “Fund”) seeks to track the investment results of an index composed of French equities, as represented by the MSCI France Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 14.07%, net of fees, while the total return for the Index was 14.11%.

French stocks, as represented by the Index, generated solid performance during the reporting period, but underperformed the broad international developed markets, as measured by the MSCI EAFE Index. A sharp correction in the French stock market during the final months of the reporting period limited Index performance, as geopolitical tension, lingering concerns about the banking system and weak economic output discouraged investors.

France, the second largest economy in Europe, experienced stagnant growth for most of the reporting period. Nevertheless, investors found reasons for optimism. Every economic sector in the Index posted a positive return during the reporting period. Financials and industrials stocks, the two largest sectors in the Index, delivered solid gains. Financials stocks rallied on renewed optimism for a sustained European economic recovery, improving credit markets and generally accommodative monetary policy. Industrials stocks advanced despite relatively weak industrial production, as investors anticipated an economic recovery in Europe. The energy sector also generated a solid contribution to the Index return despite declining oil and volatile natural gas prices. The telecommunication services and health care sectors also rallied during the reporting period.

High unemployment, inconsistent consumer spending and relatively lower consumer confidence weighed on consumer-based stocks, which accounted for approximately 24% of the Index during the reporting period. Information technology stocks also lagged the other sectors in the Index.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Industrials	17.53	%
Financials	17.45
Consumer Discretionary	13.45
Health Care	11.49
Energy	11.40
Consumer Staples	10.40
Materials	6.05
Telecommunication Services	4.95
Utilities	4.27
Information Technology	3.01

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Total SA	10.69	%
Sanofi	9.85
BNP Paribas SA	5.41
LVMH Moet Hennessy Louis Vuitton SA	3.67
AXA SA	3.41
Schneider Electric SE	3.34
L’Air Liquide SA	3.33
L’Oreal SA	3.15
Danone SA	3.06
Societe Generale	2.76

TOTAL	48.67	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI ITALY CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		25.20%		24.88%		24.30%		25.20%		24.88%		24.30%
5 Years		(0.71)%		(0.78)%		(0.69)%		(3.48)%		(3.85)%		(3.39)%
10 Years		0.96%		0.86%		0.90%		9.98%		8.94%		9.33%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Italy Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Italy 25/50 Index.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	976.30	$	2.39	$	1,000.00	$	1,022.80	$	2.45		0.48%


14		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ITALY CAPPED ETF

The iShares MSCI Italy Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Italian equities, as represented by the MSCI Italy 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 25.20%, net of fees, while the total return for the Index was 24.30%.

The Index posted strong performance during the reporting period and outperformed the broad international developed markets, as measured by the MSCI EAFE Index.

The Italian stock market rapidly advanced for most of the reporting period on renewed optimism for Europe’s most beleaguered economies. In the last two months of the reporting period, however, the market declined, as investors shifted their focus to geopolitical tensions in Ukraine and stagnant European growth.

The Italian economy remained mired in a multi-year recession during the reporting period. In addition, Italy’s economy fell into deflation, an extended period of declining prices, for the first time in more than 50 years as the reporting period came to a close. The unemployment rate remained above 12% for the entire reporting period. As a result, consumer spending fell during the first half of the reporting period, before stabilizing during the second half of the reporting period. A bright spot for the Italian economy was declining government bond yields, as the European Union’s lending program, reduced government spending and declining inflation drove bond yields lower.

In that environment, the Index posted a strong gain despite economic weakness, as investors anticipated a recovery in the European economy and better growth prospects for the beleaguered Italian economy. Many of the Index’s individual stocks and several economic sectors advanced during the reporting period.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	36.11	%
Energy	21.98
Utilities	17.00
Industrials	11.23
Consumer Discretionary	9.01
Telecommunication Services	4.67

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Eni SpA	17.18	%
Enel SpA	8.55
Intesa Sanpaolo SpA	8.49
UniCredit SpA	8.34
Snam SpA	4.46
Assicurazioni Generali SpA	4.46
Tenaris SA	4.05
Atlantia SpA	3.93
Luxottica Group SpA	3.58
Fiat SpA	3.43

TOTAL	66.47	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

Management’s Discussion of Fund Performance

iSHARES^® MSCI NETHERLANDS ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.80%		11.48%		12.30%		11.80%		11.48%		12.30%
5 Years		8.27%		8.17%		8.80%		48.76%		48.13%		52.47%
10 Years		7.52%		7.48%		8.10%		106.49%		105.64%		117.98%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Index performance through January 31, 2008 reflects the performance of the MSCI Netherlands Index. Index performance beginning on February 1, 2008 reflects the performance of the MSCI Netherlands Investable Market Index.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	973.00	$	2.39	$	1,000.00	$	1,022.80	$	2.45		0.48%


16		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI NETHERLANDS ETF

The iShares MSCI Netherlands ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Dutch equities, as represented by the MSCI Netherlands Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 11.80%, net of fees, while the total return for the Index was 12.30%.

The Index delivered a solid return for the reporting period. The Dutch stock market rallied sharply in the first few months of the reporting period, but ultimately lagged the MSCI EAFE Index, a broad gauge of international developed market stocks, for the duration of the reporting period.

Consumer-based stocks, which comprised approximately 37% of the Index on average during the reporting period, rallied as consumer spending increased during the second half of the reporting period, aided by rising home prices. As a result, consumer-based stocks posted a solid contribution to the Index’s return. The financials sector was a source of strong performance, as financials stocks rallied on improving credit conditions and lower interest rates in many European countries. The telecommunication services sector also outperformed the overall Index, contributing to the Index’s performance.

The energy sector declined amid volatile oil and natural gas prices, and detracted from the Index’s performance during the reporting period. Other sectors with exposure to the economic cycle, including the industrials and materials sectors, lagged the overall Index, as industrial production declined sharply during the winter of 2013. Information technology stocks also delivered modest results during the reporting period.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Consumer Staples	29.35	%
Financials	21.37
Industrials	15.00
Information Technology	11.56
Consumer Discretionary	8.07
Materials	7.65
Telecommunication Services	4.62
Energy	2.38

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Unilever NV CVA	17.63	%
ING Groep NV CVA	13.81
ASML Holding NV	8.91
Koninklijke Philips NV	7.70
Heineken NV	4.57
Akzo Nobel NV	4.42
Reed Elsevier NV	4.15
Koninklijke Ahold NV	4.14
AEGON NV	3.73
Koninklijke DSM NV	3.00

TOTAL	72.06	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			17

Management’s Discussion of Fund Performance

iSHARES^® MSCI SPAIN CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		37.39%		36.88%		38.55%		37.39%		36.88%		38.55%
5 Years		2.27%		2.20%		1.63%		11.90%		11.51%		8.40%
10 Years		8.40%		8.29%		8.13%		123.92%		121.84%		118.41%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Spain Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Spain 25/50 Index.

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.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,031.70	$	2.46	$	1,000.00	$	1,022.80	$	2.45		0.48%


18		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SPAIN CAPPED ETF

The iShares MSCI Spain Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Spanish equities, as represented by the MSCI Spain 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 37.39%, net of fees, while the total return for the Index was 38.55%.

The Index posted strong performance during the reporting period, significantly outperforming the broad international developed markets, as measured by the MSCI EAFE Index.

The Spanish stock market rapidly advanced for most of the reporting period on renewed optimism for Europe’s most beleaguered economies. In the last two months of the reporting period, however, the market declined, as investors shifted their focus to geopolitical tensions in Ukraine and stagnant European growth.

Spain’s economy began to recover during the reporting period, exiting its second recession since the financial crisis in 2008. The unemployment rate remained stubbornly high, exceeding 25% for most of the reporting period. Nevertheless, consumer spending logged consistent growth during the second half of the reporting period, while manufacturing expanded at a steady pace. Spain, similar to many countries throughout the world, experienced strong economic growth in pre-recession years due in part to a housing boom. Sharply declining home prices and high government debt levels have weighed on the economy since 2008. Housing prices declined at a much slower rate during the reporting period, which led to speculation that housing prices could be stabilizing. Similarly, financial reforms also helped drive lending rates on Spanish government debt dramatically lower.

The broad-based equity market rally meant many companies contributed to positive performance during the reporting period. Banco Santander SA, the Index’s largest weighting at approximately 22% as of the end of the reporting period, experienced strong performance on Spain’s improving financial and economic conditions.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	48.42	%
Utilities	11.68
Industrials	11.50
Telecommunication Services	10.98
Consumer Discretionary	4.70
Energy	4.61
Information Technology	3.81
Health Care	2.32
Consumer Staples	1.98

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Banco Santander SA	22.45	%
Banco Bilbao Vizcaya Argentaria SA	12.16
Telefonica SA	10.98
Iberdrola SA	4.86
Inditex SA	4.70
Repsol SA	4.61
Amadeus IT Holding SA Class A	3.80
Gas Natural SDG SA	3.47
Banco Popular Espanol SA	3.25
CaixaBank SA	3.14

TOTAL	73.42	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			19

Management’s Discussion of Fund Performance

iSHARES^® MSCI SWEDEN ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		10.49%		10.31%		10.41%		10.49%		10.31%		10.41%
5 Years		11.92%		11.84%		11.87%		75.59%		75.02%		75.20%
10 Years		10.68%		10.60%		10.65%		175.90%		173.85%		175.14%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	957.00	$	2.37	$	1,000.00	$	1,022.80	$	2.45		0.48%


20		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SWEDEN ETF

The iShares MSCI Sweden ETF (the “Fund”) seeks to track the investment results of an index composed of Swedish equities, as represented by the MSCI Sweden Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 10.49%, net of fees, while the total return for the Index was 10.41%.

Swedish stocks, as represented by the Index, posted a modest return during the reporting period, underperforming the broad international developed markets, as measured by the MSCI EAFE Index.

Sector performance varied widely during the reporting period, as some economic sectors posted double-digit positive returns, while other sectors delivered negative returns. The financials sector was the largest contributor to Index performance, as financials stocks rallied on improving credit conditions and lower interest rates in many European countries. Financials stocks represented approximately one-third of the Index’s weight on average, and contributed more than half of the Index’s total return. The consumer discretionary sector was another large contributor, as consumer spending increased steadily during the reporting period. The information technology sector also delivered a solid contribution to Index return, as Swedish technology stocks performed in line with the broader Index.

The industrials sector, which represented approximately 26% of the Index on average during the reporting period, posted a modest return, but trailed the broader Index by a wide margin as Swedish industrial production contracted during the reporting period. Several of the Index’s smaller sectors, including health care, energy and consumer staples, detracted from Index performance. The negative impact of these sectors on Index performance was limited, as each sector accounted for approximately 5% or less of the Index on average during the reporting period.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	33.47	%
Industrials	26.34
Consumer Discretionary	12.31
Information Technology	11.49
Telecommunication Services	6.78
Consumer Staples	5.18
Health Care	2.34
Materials	1.08
Energy	1.01

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Hennes & Mauritz AB Class B	10.03	%
Nordea Bank AB	9.84
Telefonaktiebolaget LM Ericsson Class B	9.42
Svenska Handelsbanken AB Class A	5.82
Swedbank AB Class A	5.73
Skandinaviska Enskilda Banken AB Class A	4.86
Atlas Copco AB Class A	4.85
Volvo AB Class B	4.54
TeliaSonera AB	4.32
Investor AB Class B	4.20

TOTAL	63.61	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			21

Management’s Discussion of Fund Performance

iSHARES^® MSCI SWITZERLAND CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		17.21%		17.14%		17.49%		17.21%		17.14%		17.49%
5 Years		12.64%		12.59%		12.46%		81.29%		80.89%		79.86%
10 Years		10.64%		10.63%		10.29%		174.77%		174.66%		166.36%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Switzerland Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Switzerland 25/50 Index.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,003.00	$	2.42	$	1,000.00	$	1,022.80	$	2.45		0.48%


22		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SWITZERLAND CAPPED ETF

The iShares MSCI Switzerland Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Swiss equities, as represented by the MSCI Switzerland 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 17.21%, net of fees, while the total return for the Index was 17.49%.

Swiss stocks, as represented by the Index, posted solid performance during the reporting period. The Swiss stock market reflected the contours of the broader European equity market, while slightly outpacing the broad international developed markets, as measured by the MSCI EAFE Index.

Switzerland’s economy grew at a modest pace during the reporting period, as the eurozone began to recover from its economic recession. Weak consumer spending was a source of weakness for the Swiss economy. The Swiss franc, which is considered a high-quality currency known for its stability, weakened relative to the U.S. dollar and strengthened relative to the euro in the final months of the reporting period. The stronger U.S. dollar also decreased international equity returns for U.S. investors.

The European food giant Nestle SA and the pharmaceutical company Novartis AG accounted for a combined Index weighting of approximately 28% as of the end of the reporting period. Both stocks performed relatively well, helping propel the broader Swiss stock market to solid gains. Health care company Roche Holding AG, which represented approximately 14% of the Index as of August 31, 2014, posted a modest gain, limiting Index performance.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Health Care	31.10	%
Consumer Staples	20.71
Financials	19.70
Industrials	11.12
Materials	7.96
Consumer Discretionary	6.59
Telecommunication Services	1.44
Energy	1.38

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Nestle SA Registered	17.48	%
Novartis AG Registered	13.87
Roche Holding AG Genusschein	13.77
UBS AG Registered	4.52
ABB Ltd. Registered	4.34
Compagnie Financiere Richemont SA Class A Bearer	4.33
Zurich Insurance Group AG	4.00
Credit Suisse Group AG Registered	3.79
Syngenta AG Registered	3.00
Swiss Re AG	2.64

TOTAL	71.74	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			23

Management’s Discussion of Fund Performance

iSHARES^® MSCI UNITED KINGDOM ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		17.56%		16.91%		18.19%		17.56%		16.91%		18.19%
5 Years		10.43%		10.44%		11.05%		64.26%		64.31%		68.90%
10 Years		6.60%		6.44%		7.22%		89.42%		86.60%		100.82%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,015.00	$	2.44	$	1,000.00	$	1,022.80	$	2.45		0.48%


24		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI UNITED KINGDOM ETF

The iShares MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of U.K. equities, as represented by the MSCI United Kingdom Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 17.56%, net of fees, while the total return for the Index was 18.19%.

United Kingdom stocks, as represented by the Index, posted a solid return for the reporting period, outpacing the broad international developed markets, as measured by the MSCI EAFE Index.

The United Kingdom experienced healthy economic growth during the period. The country’s GDP growth improved throughout the reporting period, expanding by 0.9% during the second quarter of 2014, and nominal GDP surpassed its pre-crisis peak from 2008 on the strength of its services and production sectors. On an annual basis, GDP growth for the second quarter of 2014 was 3.2% versus the second quarter of 2013. In addition, the unemployment rate continued to fall, finishing the reporting period at its lowest rate since late 2008.

Every economic sector in the Index delivered a double-digit positive return, as the United Kingdom experienced a broad-based rally during the reporting period. The energy sector generated the largest contribution to the Index’s return, as England’s global, diversified petroleum companies posted solid returns despite volatile oil and gas prices. The health care sector was the third largest contributor to the Index’s performance during the reporting period, reflecting the strong performance of large pharmaceuticals companies. The materials and consumer discretionary sectors performed in line with the Index, which increased the Index’s total return.

The financials sector, the largest sector in the Index with a 22% weighting on average, lagged several other sectors in the Index while generating the second largest contribution to the Index’s return. Similarly, the telecommunication services and consumer staples sectors posted solid returns while trailing the overall Index during the reporting period.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	22.54	%
Energy	17.23
Consumer Staples	15.97
Health Care	9.60
Materials	9.38
Consumer Discretionary	8.10
Industrials	6.79
Telecommunication Services	5.06
Utilities	4.30
Information Technology	1.03

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


HSBC Holdings PLC	7.12	%
Royal Dutch Shell PLC Class A	5.49
BP PLC	5.09
GlaxoSmithKline PLC	4.10
British American Tobacco PLC	3.81
Royal Dutch Shell PLC Class B	3.56
AstraZeneca PLC	3.30
Vodafone Group PLC	3.13
Diageo PLC	2.56
Lloyds Banking Group PLC	2.50

TOTAL	40.66	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			25

About Fund Performance

Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment management fees. Without such waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. 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 a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, 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 at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. 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.

Shareholder Expenses

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 expense example, which is based on an investment of $1,000 invested on March 1, 2014 and held through August 31, 2014, 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.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account 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 for your Fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also 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. 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 hypothetical examples are 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.


26		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI AUSTRIA CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 98.44%

AIR FREIGHT & LOGISTICS — 3.90%
Oesterreichische Post AG		52,488	$	2,463,359

				2,463,359
BUILDING PRODUCTS — 4.27%
Wienerberger AG		179,964		2,697,613

				2,697,613
CHEMICALS — 1.59%
Lenzing AG^a		16,488		1,004,675

				1,004,675
COMMERCIAL BANKS — 18.55%
Erste Group Bank AG		335,484		8,630,300
Raiffeisen International Bank Holding AG		120,132		3,085,639

				11,715,939
CONSTRUCTION MATERIALS — 1.94%
RHI AG		40,788		1,225,489

				1,225,489
CONTAINERS & PACKAGING — 2.78%
Mayr-Melnhof Karton AG		15,048		1,759,332

				1,759,332
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.41%
Telekom Austria AG		162,504		1,524,038

				1,524,038
ELECTRIC UTILITIES — 1.59%
EVN AG		74,160		1,006,141

				1,006,141
ELECTRICAL EQUIPMENT — 1.81%
Zumtobel AG		54,576		1,140,855

				1,140,855
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.92%
Austria Technologie & Systemtechnik AG		65,988		763,152
Kapsch TrafficCom AG		15,336		447,443

				1,210,595
ENERGY EQUIPMENT & SERVICES — 3.06%
Schoeller-Bleckmann Oilfield Equipment AG		18,324		1,930,910

				1,930,910


Security	Shares		Value

HOTELS, RESTAURANTS & LEISURE — 0.56%
DO & Co. AG		5,184	$	352,958

				352,958
INSURANCE — 7.47%
UNIQA Insurance Group AG		161,100		1,937,395
Vienna Insurance Group AG		57,276		2,782,750

				4,720,145
MACHINERY — 10.00%
Andritz AG		79,560		4,267,311
Palfinger AG		28,260		903,056
Semperit AG Holding		20,232		1,148,598

				6,318,965
METALS & MINING — 9.65%
AMAG Austria Metall AG^b		19,224		672,295
Voestalpine AG		126,108		5,423,475

				6,095,770
OIL, GAS & CONSUMABLE FUELS — 10.48%
OMV AG		171,000		6,622,093

				6,622,093
REAL ESTATE MANAGEMENT & DEVELOPMENT — 13.88%
BUWOG AG^c		64,008		1,252,024
CA Immobilien Anlagen AG^c		117,792		2,440,598
conwert Immobilien Invest SE		107,892		1,348,391
IMMOEAST AG Escrow^c,d		998,769		13
IMMOFINANZ AG^c		898,380		2,822,281
IMMOFINANZ AG Escrow^c,d		897,599		12
S IMMO AG		117,252		904,272

				8,767,591
TRANSPORTATION INFRASTRUCTURE — 2.58%
Flughafen Wien AG		18,108		1,626,936

				1,626,936

TOTAL COMMON STOCKS
(Cost: $83,626,133)				62,183,404

SHORT-TERM INVESTMENTS — 0.51%

MONEY MARKET FUNDS — 0.51%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^e,f,g		297,991		297,991
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		18,759		18,759


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI AUSTRIA CAPPED ETF

August 31, 2014


Security	Shares		Value

BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^e,f		5,110	$	5,110

				321,860

TOTAL SHORT-TERM INVESTMENTS
(Cost: $321,860)				321,860

TOTAL INVESTMENTS IN SECURITIES — 98.95%
(Cost: $83,947,993)				62,505,264
Other Assets, Less Liabilities — 1.05%				664,907

NET ASSETS — 100.00%			$	63,170,171

^a	All or a portion of this security represents a security on loan. See Note 1.

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

^c	Non-income earning security.

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

^e	Affiliated issuer. See Note 2.

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

^g	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


28		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI BELGIUM CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.90%

AIR FREIGHT & LOGISTICS — 1.33%
bpost SA		88,693	$	2,189,913

				2,189,913
BEVERAGES — 22.31%
Anheuser-Busch InBev NV		330,088		36,761,664

				36,761,664
BIOTECHNOLOGY — 1.58%
Ablynx NV^a		164,205		1,860,102
ThromboGenics NV^a,b		67,881		743,915

				2,604,017
CAPITAL MARKETS — 1.77%
GIMV NV		33,759		1,653,964
RHJ International SA^a		248,413		1,269,573

				2,923,537
CHEMICALS — 9.37%
Solvay SA		53,724		8,474,140
Tessenderlo Chemie NV^a		50,578		1,518,634
Umicore SA		112,167		5,439,284

				15,432,058
COMMERCIAL BANKS — 7.72%
KBC Groep NV^a		222,519		12,713,303

				12,713,303
COMMUNICATIONS EQUIPMENT — 0.74%
EVS Broadcast Equipment SA^b		28,314		1,225,520

				1,225,520
CONSTRUCTION & ENGINEERING — 1.38%
Compagnie d’Entreprises CFE SA		21,417		2,280,817

				2,280,817
DISTRIBUTORS — 1.03%
SA D’Ieteren NV		40,686		1,693,227

				1,693,227
DIVERSIFIED FINANCIAL SERVICES — 7.73%
Ackermans & van Haaren NV		28,834		3,497,592
Groupe Bruxelles Lambert SA		73,931		7,286,116
KBC Ancora SCA^a		59,290		1,948,516

				12,732,224
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.52%
Belgacom SA		162,382		5,803,895

				5,803,895
ELECTRIC UTILITIES — 1.28%
Elia System Operator SA		43,197		2,112,664

				2,112,664


Security	Shares		Value

ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.91%
Barco NV		21,103	$	1,499,363

				1,499,363
FOOD & STAPLES RETAILING — 6.57%
Colruyt SA		79,618		3,806,884
Delhaize Brothers and Co. “The Lion” (Delhaize Group) SA		100,430		7,017,795

				10,824,679
HEALTH CARE EQUIPMENT & SUPPLIES — 1.15%
Ion Beam Applications SA^a		124,509		1,897,518

				1,897,518
HEALTH CARE PROVIDERS & SERVICES — 1.51%
Arseus NV		45,617		2,489,693

				2,489,693
HEALTH CARE TECHNOLOGY — 1.03%
Agfa-Gevaert NV^a		591,690		1,706,050

				1,706,050
INSURANCE — 4.17%
Ageas		204,127		6,868,441

				6,868,441
IT SERVICES — 0.89%
Econocom Group SA		161,777		1,461,177

				1,461,177
MARINE — 0.76%
Compagnie Maritime Belge SA		52,151		1,251,249

				1,251,249
MEDIA — 3.32%
Kinepolis Group		50,959		1,928,114
Telenet Group Holding NV^a		60,379		3,536,754

				5,464,868
METALS & MINING — 2.97%
Bekaert NV		61,710		2,298,724
Nyrstar NV^a,b		397,969		1,544,832
Viohalco SA^a,b		191,664		1,047,708

				4,891,264
OIL, GAS & CONSUMABLE FUELS — 2.37%
Euronav SA^a		198,440		2,424,086
Exmar NV		94,864		1,474,468

				3,898,554
PHARMACEUTICALS — 7.31%
Galapagos NV^a,b		65,340		1,082,708
UCB SA		113,014		10,971,135

				12,053,843


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI BELGIUM CAPPED ETF

August 31, 2014


Security	Shares		Value

REAL ESTATE INVESTMENT TRUSTS (REITS) — 4.88%
Befimmo SA		29,403	$	2,381,485
Cofinimmo SA		22,264		2,754,312
Intervest Offices & Warehouses NV		38,841		1,196,664
Warehouses De Pauw SCA		22,627		1,706,296

				8,038,757
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.44%
Melexis NV		51,546		2,369,584

				2,369,584
WIRELESS TELECOMMUNICATION SERVICES — 0.86%
Mobistar SA^a		71,269		1,412,358

				1,412,358

TOTAL COMMON STOCKS
(Cost: $156,766,118)				164,600,237

SHORT-TERM INVESTMENTS — 2.47%

MONEY MARKET FUNDS — 2.47%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		3,733,359		3,733,359
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		235,025		235,025
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		108,461		108,461

				4,076,845

TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,076,845)				4,076,845

TOTAL INVESTMENTS IN SECURITIES — 102.37%
(Cost: $160,842,963)				168,677,082
Other Assets, Less Liabilities — (2.37)%				(3,912,026	)

NET ASSETS — 100.00%			$	164,765,056

^a	Non-income earning security.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


30		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS EASTERN EUROPE ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 96.21%

CZECH REPUBLIC — 3.32%
CEZ AS		86,424	$	2,512,409
Komercni Banka AS		8,141		1,893,319
O2 Czech Republic AS		42,118		591,710

				4,997,438
HUNGARY — 2.91%
MOL Hungarian Oil and Gas PLC		22,392		1,103,289
OTP Bank PLC		119,951		2,073,569
Richter Gedeon Nyrt		74,863		1,204,740

				4,381,598
POLAND — 24.20%
Alior Bank SA^a		24,358		580,582
Bank Handlowy w Warszawie SA		17,500		626,691
Bank Millennium SA		227,496		571,346
Bank Pekao SA		70,268		3,958,049
Bank Zachodni WBK SA		15,919		1,844,649
Cyfrowy Polsat SA		102,431		819,807
ENEA SA		118,263		554,817
Energa SA		108,504		707,557
Eurocash SA		44,545		480,649
Getin Noble Bank SA^a		639,019		519,633
Grupa Azoty SA		26,489		619,279
Grupa Lotos SA^a		34,452		324,764
Jastrzebska Spolka Weglowa SA^a		28,329		296,638
KGHM Polska Miedz SA		74,963		3,090,097
LPP SA		445		1,183,011
mBank SA		7,905		1,145,939
Orange Polska SA		351,442		1,180,505
Polska Grupa Energetyczna SA		450,148		3,070,583
Polski Koncern Naftowy Orlen SA		171,776		2,118,357
Polskie Gornictwo Naftowe i Gazownictwo SA		947,915		1,446,768
Powszechna Kasa Oszczednosci Bank Polski SA		468,491		5,604,573
Powszechny Zaklad Ubezpieczen SA		30,053		4,408,293
Synthos SA		281,674		405,242
Tauron Polska Energia SA		565,356		882,333

				36,440,162


Security	Shares		Value

RUSSIA — 65.78%
Alrosa AO		986,100	$	1,155,669
Gazprom OAO		6,337,232		22,581,624
LUKOIL OAO		273,231		15,210,050
Magnit OJSC SP GDR		139,229		8,103,128
MegaFon OAO SP GDR		49,806		1,409,510
MMC Norilsk Nickel OJSC		29,654		5,835,382
Mobile TeleSystems OJSC SP ADR		276,601		5,103,288
Moscow Exchange MICEX-RTS OJSC		730,690		1,226,493
NovaTek OAO SP GDR		48,744		4,903,646
Rosneft Oil Co. OJSC		623,804		3,848,264
Rostelecom OJSC		428,880		1,140,774
RusHydro OJSC		62,061,000		1,150,977
Sberbank of Russia		5,782,285		11,378,514
Severstal OAO		112,169		1,079,602
Sistema JSFC SP GDR		90,428		2,057,237
Surgutneftegas OJSC		3,825,960		2,681,862
Tatneft OAO Class S		758,249		4,702,598
Uralkali OJSC		707,455		2,612,825
VTB Bank OJSC		2,777,430,999		2,861,166

				99,042,609

TOTAL COMMON STOCKS
(Cost: $167,227,947)				144,861,807

PREFERRED STOCKS — 3.56%

RUSSIA — 3.56%
AK Transneft OAO		834		1,834,758
Sberbank of Russia		533,500		795,538
Surgutneftegas OJSC		3,711,800		2,731,732

				5,362,028

TOTAL PREFERRED STOCKS
(Cost: $5,797,495)				5,362,028

SHORT-TERM INVESTMENTS — 0.06%

MONEY MARKET FUNDS — 0.06%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,c		90,457		90,457

				90,457

TOTAL SHORT-TERM INVESTMENTS
(Cost: $90,457)				90,457


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS EASTERN EUROPE ETF

August 31, 2014


	Value

TOTAL INVESTMENTS IN SECURITIES — 99.83%
(Cost: $173,115,899)	$	150,314,292
Other Assets, Less Liabilities — 0.17%		251,695

NET ASSETS — 100.00%	$	150,565,987

SP ADR — Sponsored American Depositary Receipts

SP GDR — Sponsored Global 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.


32		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI FRANCE ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.96%

AEROSPACE & DEFENSE — 4.93%
Airbus Group NV		125,103	$	7,712,795
Safran SA		57,681		3,790,134
Thales SA		19,739		1,104,879
Zodiac Aerospace		39,576		1,294,115

				13,901,923
AIR FREIGHT & LOGISTICS — 0.26%
Bollore		1,173		741,636

				741,636
AUTO COMPONENTS — 2.25%
Compagnie Generale des Etablissements Michelin Class B		39,686		4,398,892
Valeo SA		16,014		1,939,982

				6,338,874
AUTOMOBILES — 1.55%
PSA Peugeot Citroen SA^a		83,283		1,172,697
Renault SA		40,902		3,209,940

				4,382,637
BEVERAGES — 2.04%
Pernod Ricard SA		45,186		5,341,236
Remy Cointreau SA^b		5,151		410,419

				5,751,655
BUILDING PRODUCTS — 1.71%
Compagnie de Saint-Gobain		94,554		4,811,233

				4,811,233
CHEMICALS — 3.65%
Arkema SA		12,140		913,235
L’Air Liquide SA		73,287		9,386,933

				10,300,168
COMMERCIAL BANKS — 9.79%
BNP Paribas SA		225,318		15,249,015
Credit Agricole SA		212,976		3,165,804
Natixis		198,335		1,397,671
Societe Generale		153,255		7,783,003

				27,595,493
COMMERCIAL SERVICES & SUPPLIES — 0.75%
Edenred SA		43,334		1,288,285
Societe BIC SA		6,069		826,589

				2,114,874
COMMUNICATIONS EQUIPMENT — 0.74%
Alcatel-Lucent^a,b		598,689		2,075,578

				2,075,578


Security	Shares		Value

CONSTRUCTION & ENGINEERING — 2.92%
Bouygues SA		40,698	$	1,497,523
Vinci SA		102,918		6,744,290

				8,241,813
CONSTRUCTION MATERIALS — 1.29%
Imerys SA		7,293		584,258
Lafarge SA		39,780		3,054,816

				3,639,074
DIVERSIFIED FINANCIAL SERVICES — 0.51%
Eurazeo		8,058		613,808
Wendel		6,732		814,647

				1,428,455
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.94%
Iliad SA		5,559		1,224,291
Orange		394,740		5,989,843
Vivendi SA		257,754		6,720,673

				13,934,807
ELECTRIC UTILITIES — 0.59%
Electricite de France SA		51,408		1,675,599

				1,675,599
ELECTRICAL EQUIPMENT — 5.03%
ALSTOM^a		46,002		1,632,095
Legrand SA		56,508		3,131,369
Schneider Electric SE		110,976		9,402,145

				14,165,609
ENERGY EQUIPMENT & SERVICES — 0.72%
Technip SA		21,777		2,022,269

				2,022,269
FOOD & STAPLES RETAILING — 2.15%
Carrefour SA		132,957		4,620,831
Casino Guichard-Perrachon SA		11,985		1,433,901

				6,054,732
FOOD PRODUCTS — 3.06%
Danone SA		123,165		8,621,060

				8,621,060
HEALTH CARE EQUIPMENT & SUPPLIES — 1.64%
Essilor International SA		43,401		4,614,586

				4,614,586
HOTELS, RESTAURANTS & LEISURE — 1.33%
Accor SA		36,465		1,776,213
Sodexo		20,043		1,979,256

				3,755,469


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (Continued)

iSHARES^® MSCI FRANCE ETF

August 31, 2014


Security	Shares		Value

INSURANCE — 4.02%
AXA SA		386,631	$	9,599,748
CNP Assurances SA		36,557		723,016
SCOR SE		32,738		1,004,754

				11,327,518
IT SERVICES — 1.23%
Atos SA		16,881		1,291,002
Cap Gemini SA		30,702		2,188,246

				3,479,248
MACHINERY — 0.37%
Vallourec SA		23,154		1,036,642

				1,036,642
MEDIA — 2.69%
Eutelsat Communications SA		32,838		1,098,008
JCDecaux SA		14,229		503,422
Lagardere SCA		25,141		693,940
Publicis Groupe SA		38,607		2,883,374
SES SA Class A FDR		64,668		2,398,689

				7,577,433
METALS & MINING — 1.10%
ArcelorMittal		212,721		3,103,172

				3,103,172
MULTI-UTILITIES — 3.68%
GDF Suez		308,142		7,608,309
Suez Environnement SA		59,793		1,104,994
Veolia Environnement		89,709		1,651,352

				10,364,655
OIL, GAS & CONSUMABLE FUELS — 10.68%
Total SA		455,532		30,115,349

				30,115,349
PERSONAL PRODUCTS — 3.15%
L’Oreal SA		53,499		8,879,081

				8,879,081
PHARMACEUTICALS — 9.85%
Sanofi		252,501		27,771,631

				27,771,631
PROFESSIONAL SERVICES — 0.40%
Bureau Veritas SA		46,920		1,117,399

				1,117,399
REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.12%
Fonciere des Regions		6,018		610,372
Gecina SA		6,018		852,143
Icade		7,803		727,382


Security	Shares		Value

Klepierre		21,267	$	1,015,468
Unibail-Rodamco SE		20,808		5,602,257

				8,807,622
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.40%
STMicroelectronics NV		135,790		1,140,070

				1,140,070
SOFTWARE — 0.63%
Dassault Systemes SA		26,928		1,787,666

				1,787,666
TEXTILES, APPAREL & LUXURY GOODS — 5.63%
Christian Dior SA		11,630		2,073,432
Kering		16,167		3,433,847
LVMH Moet Hennessy Louis Vuitton SA		59,517		10,352,167

				15,859,446
TRADING COMPANIES & DISTRIBUTORS — 0.41%
Rexel SA		57,602		1,149,482

				1,149,482
TRANSPORTATION INFRASTRUCTURE — 0.75%
Aeroports de Paris		6,324		842,577
Groupe Eurotunnel SA Registered		99,450		1,282,708

				2,125,285

TOTAL COMMON STOCKS
(Cost: $323,921,120)				281,809,243

SHORT-TERM INVESTMENTS — 0.79%

MONEY MARKET FUNDS — 0.79%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		2,088,812		2,088,812
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		131,497		131,497
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		1,773		1,773

				2,222,082

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,222,082)				2,222,082


34		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI FRANCE ETF

August 31, 2014


	Value

TOTAL INVESTMENTS IN SECURITIES — 100.75%
(Cost: $326,143,202)	$	284,031,325
Other Assets, Less Liabilities — (0.75)%		(2,108,505	)

NET ASSETS — 100.00%	$	281,922,820

FDR — Fiduciary Depositary Receipts

^a	Non-income earning security.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			35

Schedule of Investments

iSHARES^® MSCI ITALY CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.93%

AEROSPACE & DEFENSE — 2.03%
Finmeccanica SpA^a		3,379,320	$	31,692,837

				31,692,837
AUTO COMPONENTS — 2.00%
Pirelli & C. SpA		2,028,888		31,080,614

				31,080,614
AUTOMOBILES — 3.42%
Fiat SpA^a,b		5,439,312		53,305,094

				53,305,094
CAPITAL MARKETS — 2.31%
Mediobanca SpA^a		4,103,136		35,940,935

				35,940,935
COMMERCIAL BANKS — 25.68%
Banca Monte dei Paschi di Siena SpA^a		29,561,112		44,311,335
Banco Popolare SC^a		2,426,760		37,942,798
Intesa Sanpaolo SpA		44,292,744		132,087,227
Intesa Sanpaolo SpA RNC		4,379,832		11,451,695
UniCredit SpA		16,720,992		129,726,632
Unione di Banche Italiane SpA		5,651,856		44,258,303

				399,777,990
DIVERSIFIED FINANCIAL SERVICES — 2.02%
Exor SpA		789,264		31,479,656

				31,479,656
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.67%
Telecom Italia SpA^a		43,840,440		50,557,183
Telecom Italia SpA RNC		23,996,088		22,125,357

				72,682,540
ELECTRIC UTILITIES — 11.78%
Enel SpA		25,093,152		133,070,196
Terna SpA		9,759,528		50,392,591

				183,462,787
ELECTRICAL EQUIPMENT — 2.03%
Prysmian SpA		1,549,368		31,551,200

				31,551,200
ENERGY EQUIPMENT & SERVICES — 4.80%
Saipem SpA^a		491,184		11,684,598
Tenaris SA		2,848,608		62,999,223

				74,683,821
GAS UTILITIES — 4.46%
Snam SpA		11,901,816		69,386,735

				69,386,735


Security	Shares		Value

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.75%
Enel Green Power SpA		4,203,576	$	11,627,598

				11,627,598
INSURANCE — 6.07%
Assicurazioni Generali SpA		3,382,560		69,327,719
UnipolSai SpA		8,025,480		25,265,083

				94,592,802
MACHINERY — 3.23%
CNH Industrial NV		5,769,144		50,230,170

				50,230,170
OIL, GAS & CONSUMABLE FUELS — 17.17%
Eni SpA		10,693,296		267,337,330

				267,337,330
TEXTILES, APPAREL & LUXURY GOODS — 3.58%
Luxottica Group SpA		1,041,984		55,792,190

				55,792,190
TRANSPORTATION INFRASTRUCTURE — 3.93%
Atlantia SpA		2,402,784		61,146,790

				61,146,790

TOTAL COMMON STOCKS
(Cost: $1,594,016,316)				1,555,771,089

SHORT-TERM INVESTMENTS — 1.27%

MONEY MARKET FUNDS — 1.27%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		18,612,404		18,612,404
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		1,171,702		1,171,702
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		18,982		18,982

				19,803,088

TOTAL SHORT-TERM INVESTMENTS
(Cost: $19,803,088)				19,803,088


36		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ITALY CAPPED ETF

August 31, 2014


	Value

TOTAL INVESTMENTS IN SECURITIES — 101.20%
(Cost: $1,613,819,404)	$	1,575,574,177
Other Assets, Less Liabilities — (1.20)%		(18,713,925	)

NET ASSETS — 100.00%	$	1,556,860,252

^a	Non-income earning security.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			37

Schedule of Investments

iSHARES^® MSCI NETHERLANDS ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.64%

AIR FREIGHT & LOGISTICS — 1.43%
PostNL NV^a		188,136	$	944,415
TNT Express NV		188,270		1,410,563

				2,354,978
BEVERAGES — 6.36%
Heineken Holding NV		43,148		2,985,519
Heineken NV		98,490		7,511,428

				10,496,947
CAPITAL MARKETS — 0.15%
BinckBank NV		22,378		245,449

				245,449
CHEMICALS — 7.56%
Akzo Nobel NV		102,510		7,263,059
Koninklijke DSM NV		73,700		4,933,487
Koninklijke Ten Cate NV		11,524		285,601

				12,482,147
CONSTRUCTION & ENGINEERING — 2.81%
Arcadis NV		25,594		847,530
Grontmij NV^a		29,882		148,744
Koninklijke BAM Groep NV^b		99,160		234,974
OCI NV^a		36,046		1,207,886
Royal Boskalis Westminster NV CVA		36,984		2,133,488
Royal Imtech NV^a,b		146,864		74,284

				4,646,906
DIVERSIFIED FINANCIAL SERVICES — 13.76%
ING Groep NV CVA^a		1,647,530		22,710,378
SNS REAAL NV^a,b,c		68,952		1

				22,710,379
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.61%
Koninklijke KPN NV^a		1,368,676		4,552,122
Ziggo NV		64,052		3,054,169

				7,606,291
ELECTRICAL EQUIPMENT — 0.39%
Kendrion NV		4,690		141,623
TKH Group NV		14,874		503,515

				645,138
ENERGY EQUIPMENT & SERVICES — 1.44%
Fugro NV CVA		31,356		1,140,146
SBM Offshore NV^a,b		80,400		1,234,298

				2,374,444


Security	Shares		Value

FOOD & STAPLES RETAILING — 4.22%
Amsterdam Commodities NV		6,566	$	154,380
Koninklijke Ahold NV		397,578		6,807,968

				6,962,348
FOOD PRODUCTS — 18.66%
Corbion NV		27,872		467,723
Koninklijke Wessanen NV		32,428		180,681
Nutreco NV		30,016		1,157,448
Unilever NV CVA		696,130		29,007,480

				30,813,332
HOUSEHOLD DURABLES — 0.20%
TomTom NV^a,b		42,746		328,709

				328,709
INDUSTRIAL CONGLOMERATES — 7.67%
Koninklijke Philips NV		414,596		12,664,197

				12,664,197
INSURANCE — 4.96%
AEGON NV		774,252		6,135,387
Delta Lloyd NV		84,839		2,048,936

				8,184,323
LEISURE EQUIPMENT & PRODUCTS — 0.10%
Accell Group NV		8,978		162,132

				162,132
MACHINERY — 0.71%
Aalberts Industries NV		42,478		1,180,308

				1,180,308
MEDIA — 7.74%
Altice SA^a		37,118		2,376,144
Reed Elsevier NV		298,418		6,819,873
Wolters Kluwer NV		129,042		3,583,055

				12,779,072
METALS & MINING — 0.06%
AMG Advanced Metallurgical Group NV^a		11,122		105,523

				105,523
OIL, GAS & CONSUMABLE FUELS — 0.93%
Koninklijke Vopak NV		30,016		1,542,737

				1,542,737
PROFESSIONAL SERVICES — 1.93%
Brunel International		8,308		205,406
Randstad Holding NV		53,868		2,621,430
USG People NV		27,336		352,905

				3,179,741


38		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI NETHERLANDS ETF

August 31, 2014


Security	Shares		Value

REAL ESTATE INVESTMENT TRUSTS (REITS) — 2.43%
Corio NV		30,150	$	1,623,690
Eurocommercial Properties NV		17,420		857,937
Nieuwe Steen Investments NV		54,940		313,349
VastNed Retail NV		8,174		398,694
Wereldhave NV		8,844		816,035

				4,009,705
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 9.51%
ASM International NV		21,574		839,731
ASML Holding NV		152,760		14,650,501
BE Semiconductor Industries NV		11,926		210,657

				15,700,889
SOFTWARE — 2.01%
Gemalto NV^b		33,768		3,314,147

				3,314,147

TOTAL COMMON STOCKS
(Cost: $174,723,662)				164,489,842

SHORT-TERM INVESTMENTS — 3.36%

MONEY MARKET FUNDS — 3.36%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^d,e,f		5,198,803		5,198,803
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		327,279		327,279
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^d,e		24,972		24,972

				5,551,054

TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,551,054)				5,551,054

TOTAL INVESTMENTS IN SECURITIES — 103.00%
(Cost: $180,274,716)				170,040,896
Other Assets, Less Liabilities — (3.00)%				(4,949,392	)

NET ASSETS — 100.00%			$	165,091,504

^a	Non-income earning security.

^b	All or a portion of this security represents a security on loan. See Note 1.

^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 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			39

Schedule of Investments

iSHARES^® MSCI SPAIN CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.90%

AIRLINES — 2.09%
International Consolidated Airlines Group SA^a		8,603,952	$	51,633,730

				51,633,730
BIOTECHNOLOGY — 2.32%
Grifols SA		1,228,556		57,334,749

				57,334,749
COMMERCIAL BANKS — 46.78%
Banco Bilbao Vizcaya Argentaria SA		24,765,188		300,436,759
Banco de Sabadell SA		24,423,336		77,080,338
Banco Popular Espanol SA		12,812,847		80,183,033
Banco Santander SA		55,481,524		554,679,315
Bankia SA^a		34,568,464		67,025,444
CaixaBank SA		12,855,641		77,521,351

				1,156,926,240
CONSTRUCTION & ENGINEERING — 5.25%
Actividades de Construcciones y Servicios SA		1,495,135		63,128,868
Ferrovial SA		3,265,680		66,631,080

				129,759,948
DIVERSIFIED TELECOMMUNICATION SERVICES — 10.97%
Telefonica SA		17,062,556		271,270,876

				271,270,876
ELECTRIC UTILITIES — 6.88%
Iberdrola SA		16,330,132		120,133,653
Red Electrica Corporacion SA		591,807		49,959,971

				170,093,624
FOOD & STAPLES RETAILING — 1.98%
Distribuidora Internacional de Alimentacion SA		5,792,808		48,894,887

				48,894,887
GAS UTILITIES — 4.79%
Enagas SA		982,357		32,827,788
Gas Natural SDG SA		2,785,972		85,632,054

				118,459,842
INSURANCE — 1.59%
Mapfre SA		10,476,424		39,370,112

				39,370,112
IT SERVICES — 3.80%
Amadeus IT Holding SA Class A		2,522,072		94,014,691

				94,014,691


Security	Shares		Value

MACHINERY — 1.38%
Zardoya Otis SA		2,265,480	$	32,944,363
Zardoya Otis SA New		89,056		1,295,043

				34,239,406
OIL, GAS & CONSUMABLE FUELS — 4.60%
Repsol SA		4,576,432		113,870,383

				113,870,383
SPECIALTY RETAIL — 4.70%
Inditex SA		3,999,100		116,150,923

				116,150,923
TRANSPORTATION INFRASTRUCTURE — 2.77%
Abertis Infraestructuras SA		3,252,872		68,597,789

				68,597,789

TOTAL COMMON STOCKS
(Cost: $2,374,573,243)				2,470,617,200

SHORT-TERM INVESTMENTS — 0.10%

MONEY MARKET FUNDS — 0.10%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,c		2,538,504		2,538,504

				2,538,504

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,538,504)				2,538,504

TOTAL INVESTMENTS IN SECURITIES — 100.00%
(Cost: $2,377,111,747)				2,473,155,704
Other Assets, Less Liabilities — (0.00)%				(118,056	)

NET ASSETS — 100.00%			$	2,473,037,648

^a	Non-income earning security.

^b	Affiliated issuer. See Note 2.

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

See notes to financial statements.


40		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SWEDEN ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.92%

BUILDING PRODUCTS — 4.19%
Assa Abloy AB Class B		334,486	$	16,942,013

				16,942,013
COMMERCIAL BANKS — 26.23%
Nordea Bank AB		3,041,974		39,752,386
Skandinaviska Enskilda Banken AB Class A		1,499,237		19,624,225
Svenska Handelsbanken AB Class A		500,070		23,499,793
Swedbank AB Class A		906,762		23,152,754

				106,029,158
COMMERCIAL SERVICES & SUPPLIES — 0.85%
Securitas AB Class B		314,104		3,440,106

				3,440,106
COMMUNICATIONS EQUIPMENT — 9.41%
Telefonaktiebolaget LM Ericsson Class B		3,044,028		38,054,444

				38,054,444
CONSTRUCTION & ENGINEERING — 1.95%
Skanska AB Class B		380,780		7,898,266

				7,898,266
DIVERSIFIED FINANCIAL SERVICES — 7.22%
Industrivarden AB Class C		146,870		2,654,562
Investment AB Kinnevik Class B		235,578		9,583,636
Investor AB Class B		456,304		16,952,876

				29,191,074
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.31%
TeliaSonera AB		2,383,904		17,440,072

				17,440,072
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.07%
Hexagon AB Class B		255,170		8,367,490

				8,367,490
HEALTH CARE EQUIPMENT & SUPPLIES — 2.34%
Elekta AB Class B^a		368,614		4,211,599
Getinge AB Class B		200,344		5,250,543

				9,462,142
HOUSEHOLD DURABLES — 2.28%
Electrolux AB Class B		240,634		6,120,051
Husqvarna AB Class B		408,588		3,100,492

				9,220,543


Security	Shares		Value

HOUSEHOLD PRODUCTS — 3.50%
Svenska Cellulosa AB Class B		587,286	$	14,152,992

				14,152,992
MACHINERY — 19.32%
Alfa Laval AB		315,052		7,212,810
Atlas Copco AB Class A		671,342		19,597,360
Atlas Copco AB Class B		390,892		10,446,215
Sandvik AB		1,066,974		13,338,610
SKF AB Class B		396,106		9,159,374
Volvo AB Class B		1,533,713		18,359,455

				78,113,824
METALS & MINING — 1.08%
Boliden AB		273,656		4,345,522

				4,345,522
OIL, GAS & CONSUMABLE FUELS — 1.01%
Lundin Petroleum AB^a,b		217,882		4,069,319

				4,069,319
SPECIALTY RETAIL — 10.02%
Hennes & Mauritz AB Class B		949,738		40,503,082

				40,503,082
TOBACCO — 1.68%
Swedish Match AB		202,240		6,771,069

				6,771,069
WIRELESS TELECOMMUNICATION SERVICES — 2.46%
Millicom International Cellular SA SDR		66,202		5,949,515
Tele2 AB Class B		319,950		3,990,626

				9,940,141

TOTAL COMMON STOCKS
(Cost: $396,607,637)				403,941,257

SHORT-TERM INVESTMENTS — 1.05%

MONEY MARKET FUNDS — 1.05%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		3,956,496		3,956,496
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		249,072		249,072


SCHEDULES OF INVESTMENTS			41

Schedule of Investments (Continued)

iSHARES^® MSCI SWEDEN ETF

August 31, 2014


Security	Shares		Value

BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		16,023	$	16,023

				4,221,591

TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,221,591)				4,221,591

TOTAL INVESTMENTS IN SECURITIES — 100.97%
(Cost: $400,829,228)				408,162,848
Other Assets, Less Liabilities — (0.97)%				(3,906,840	)

NET ASSETS — 100.00%			$	404,256,008

SDR — Swedish Depositary Receipts

^a	All or a portion of this security represents a security on loan. See Note 1.

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


42		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SWITZERLAND CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.17%

BIOTECHNOLOGY — 1.54%
Actelion Ltd. Registered^a		134,130	$	16,505,379

				16,505,379
BUILDING PRODUCTS — 1.42%
Geberit AG Registered		44,880		15,264,639

				15,264,639
CAPITAL MARKETS — 10.00%
Credit Suisse Group AG Registered		1,426,725		40,316,256
Julius Baer Group Ltd.^a		258,570		11,781,543
Partners Group Holding AG		26,775		7,080,750
UBS AG Registered^a		2,673,165		48,043,125

				107,221,674
CHEMICALS — 6.12%
EMS-Chemie Holding AG Registered		15,300		6,665,611
Givaudan SA Registered^a		9,690		16,124,431
Sika AG Bearer		2,862		10,843,632
Syngenta AG Registered		88,740		31,926,440

				65,560,114
CONSTRUCTION MATERIALS — 1.78%
Holcim Ltd. Registered^a		239,700		19,105,858

				19,105,858
DIVERSIFIED FINANCIAL SERVICES — 0.49%
Pargesa Holding SA Bearer		61,200		5,269,007

				5,269,007
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.43%
Swisscom AG Registered		26,265		15,285,522

				15,285,522
ELECTRICAL EQUIPMENT — 4.30%
ABB Ltd. Registered^a		2,029,035		46,148,167

				46,148,167
ENERGY EQUIPMENT & SERVICES — 1.37%
Transocean Ltd.^b		381,735		14,721,712

				14,721,712
FOOD PRODUCTS — 20.54%
Aryzta AG^a		121,125		11,089,514
Barry Callebaut AG Registered^a		4,990		6,129,551
Lindt & Spruengli AG Participation Certificates		1,460		7,672,632
Lindt & Spruengli AG Registered		151		9,484,386
Nestle SA Registered		2,388,585		185,823,750

				220,199,833


Security	Shares		Value

HEALTH CARE EQUIPMENT & SUPPLIES — 0.98%
Sonova Holding AG Registered		65,790	$	10,545,364

				10,545,364
INSURANCE — 8.40%
Baloise Holding AG Registered		67,327		8,799,522
Swiss Life Holding AG Registered^a		42,330		10,695,160
Swiss Re AG^a		341,190		28,033,572
Zurich Insurance Group AG^a		140,760		42,573,041

				90,101,295
LIFE SCIENCES TOOLS & SERVICES — 0.90%
Lonza Group AG Registered^a		83,895		9,627,520

				9,627,520
MACHINERY — 1.85%
Schindler Holding AG Participation Certificates		61,200		8,867,435
Schindler Holding AG Registered		39,270		5,724,240
Sulzer AG Registered		39,780		5,290,390

				19,882,065
MARINE — 0.89%
Kuehne & Nagel International AG Registered		70,380		9,505,930

				9,505,930
PHARMACEUTICALS — 27.42%
Novartis AG Registered		1,640,415		147,500,328
Roche Holding AG Genusschein		501,075		146,462,606

				293,962,934
PROFESSIONAL SERVICES — 2.56%
Adecco SA Registered^a		181,560		13,777,824
SGS SA Registered		6,124		13,620,776

				27,398,600
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.64%
Swiss Prime Site AG Registered^a		85,680		6,857,394

				6,857,394
TEXTILES, APPAREL & LUXURY GOODS — 6.54%
Compagnie Financiere Richemont SA Class A Bearer		481,440		46,022,899
Swatch Group AG (The) Bearer		31,620		17,186,697
Swatch Group AG (The) Registered		67,065		6,883,343

				70,092,939

TOTAL COMMON STOCKS
(Cost: $862,464,710)				1,063,255,946


SCHEDULES OF INVESTMENTS			43

Schedule of Investments (Continued)

iSHARES^® MSCI SWITZERLAND CAPPED ETF

August 31, 2014


Security	Shares		Value

SHORT-TERM INVESTMENTS — 1.31%

MONEY MARKET FUNDS — 1.31%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		13,254,008	$	13,254,008
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		834,376		834,376
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		8,229		8,229

				14,096,613

TOTAL SHORT-TERM INVESTMENTS
(Cost: $14,096,613)				14,096,613

TOTAL INVESTMENTS IN SECURITIES — 100.48%
(Cost: $876,561,323)				1,077,352,559
Other Assets, Less Liabilities — (0.48)%				(5,195,290	)

NET ASSETS — 100.00%			$	1,072,157,269

^a	Non-income earning security.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


44		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI UNITED KINGDOM ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.10%

AEROSPACE & DEFENSE — 2.30%
BAE Systems PLC		4,579,257	$	33,849,837
Cobham PLC		1,647,832		8,130,543
Meggitt PLC		1,166,394		9,135,305
Rolls-Royce Holdings PLC^a		2,723,052		46,172,739

				97,288,424
AIR FREIGHT & LOGISTICS — 0.16%
Royal Mail PLC		942,400		6,986,561

				6,986,561
AIRLINES — 0.12%
easyJet PLC		230,465		5,109,639

				5,109,639
AUTO COMPONENTS — 0.33%
GKN PLC		2,375,311		13,842,286

				13,842,286
BEVERAGES — 4.51%
Coca-Cola HBC AG^a		290,511		6,822,066
Diageo PLC		3,637,536		107,258,555
SABMiller PLC		1,396,486		77,067,433

				191,148,054
CAPITAL MARKETS — 1.06%
3i Group PLC		1,406,381		9,183,759
Aberdeen Asset Management PLC		1,332,289		9,611,523
Hargreaves Lansdown PLC		343,896		6,408,021
ICAP PLC		799,777		5,036,643
Investec PLC		794,235		7,234,852
Schroders PLC		179,916		7,278,653

				44,753,451
CHEMICALS — 0.53%
Croda International PLC		196,517		7,121,293
Johnson Matthey PLC		296,575		15,554,305

				22,675,598
COMMERCIAL BANKS — 13.84%
Barclays PLC		23,748,546		88,523,912
HSBC Holdings PLC		27,617,424		299,043,748
Lloyds Banking Group PLC^a		82,690,943		104,740,744
Royal Bank of Scotland Group PLC^a		3,635,468		21,904,411
Standard Chartered PLC		3,573,905		71,995,901

				586,208,716


Security	Shares		Value

COMMERCIAL SERVICES & SUPPLIES — 0.80%
Aggreko PLC		370,595	$	10,475,218
Babcock International Group PLC		725,564		13,507,821
G4S PLC		2,245,583		9,882,776

				33,865,815
CONTAINERS & PACKAGING — 0.20%
Rexam PLC		1,018,843		8,578,655

				8,578,655
DIVERSIFIED FINANCIAL SERVICES — 0.21%
London Stock Exchange Group PLC		256,388		8,699,014

				8,699,014
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.91%
BT Group PLC		11,466,332		73,695,240
Inmarsat PLC		616,375		7,170,627

				80,865,867
ELECTRIC UTILITIES — 0.84%
SSE PLC		1,411,832		35,592,522

				35,592,522
ENERGY EQUIPMENT & SERVICES — 0.36%
AMEC PLC		431,430		8,060,590
Petrofac Ltd.		376,120		7,052,195

				15,112,785
FOOD & STAPLES RETAILING — 1.48%
J Sainsbury PLC		1,796,163		8,659,578
Tesco PLC		11,755,477		44,892,897
Wm Morrison Supermarkets PLC		3,041,520		8,965,882

				62,518,357
FOOD PRODUCTS — 2.70%
Associated British Foods PLC		515,906		24,529,906
Tate & Lyle PLC		674,989		7,583,479
Unilever PLC		1,858,650		82,076,706

				114,190,091
HEALTH CARE EQUIPMENT & SUPPLIES — 0.53%
Smith & Nephew PLC		1,293,607		22,407,357

				22,407,357
HOTELS, RESTAURANTS & LEISURE — 2.21%
Carnival PLC		265,942		9,919,748
Compass Group PLC		2,434,012		39,594,159
InterContinental Hotels Group PLC		341,947		13,112,536
TUI Travel PLC		726,291		4,493,047
Whitbread PLC		262,774		19,153,667


SCHEDULES OF INVESTMENTS			45

Schedule of Investments (Continued)

iSHARES^® MSCI UNITED KINGDOM ETF

August 31, 2014


Security	Shares		Value

William Hill PLC		1,262,521	$	7,338,556

				93,611,713
HOUSEHOLD DURABLES — 0.23%
Persimmon PLC^a		442,348		9,726,487

				9,726,487
HOUSEHOLD PRODUCTS — 1.94%
Reckitt Benckiser Group PLC		941,923		82,125,621

				82,125,621
INDUSTRIAL CONGLOMERATES — 0.29%
Smiths Group PLC		570,811		12,475,334

				12,475,334
INSURANCE — 5.78%
Admiral Group PLC		280,413		6,217,036
Aviva PLC		4,268,721		36,935,115
Direct Line Insurance Group PLC		2,170,908		10,776,340
Friends Life Group Ltd.		2,052,391		10,453,888
Legal & General Group PLC		8,570,306		34,401,466
Old Mutual PLC		7,093,768		23,432,344
Prudential PLC		3,713,498		89,424,220
RSA Insurance Group PLC		1,465,519		11,151,942
Standard Life PLC		3,462,018		22,101,241

				244,893,592
INTERNET & CATALOG RETAIL — 0.09%
ASOS PLC^a,b		78,258		3,681,962

				3,681,962
MACHINERY — 0.70%
IMI PLC		394,593		8,886,137
Melrose Industries PLC		1,553,699		7,036,489
Weir Group PLC (The)		309,188		13,581,642

				29,504,268
MEDIA — 3.08%
British Sky Broadcasting Group PLC		1,495,205		21,690,403
ITV PLC		5,547,056		19,456,308
Pearson PLC		1,185,373		21,871,222
Reed Elsevier PLC		1,661,955		27,117,883
WPP PLC		1,922,498		40,324,892

				130,460,708
METALS & MINING — 8.56%
Anglo American PLC		2,022,565		51,392,280
Antofagasta PLC		570,720		7,445,146
BHP Billiton PLC		3,058,696		96,895,772
Fresnillo PLC		321,124		5,130,407
Glencore PLC^a		15,383,881		92,588,717


Security	Shares		Value

Randgold Resources Ltd.		127,248	$	10,745,976
Rio Tinto PLC		1,842,721		98,342,638

				362,540,936
MULTI-UTILITIES — 2.82%
Centrica PLC		7,299,847		38,721,541
National Grid PLC		5,408,455		80,748,949

				119,470,490
MULTILINE RETAIL — 1.02%
Marks & Spencer Group PLC		2,365,385		16,887,807
Next PLC		224,497		26,452,511

				43,340,318
OIL, GAS & CONSUMABLE FUELS — 16.71%
BG Group PLC		4,938,733		98,546,973
BP PLC		26,703,253		213,599,238
Royal Dutch Shell PLC Class A		5,692,681		230,491,287
Royal Dutch Shell PLC Class B		3,535,966		149,480,708
Tullow Oil PLC		1,318,285		15,982,184

				708,100,390
PHARMACEUTICALS — 8.98%
AstraZeneca PLC		1,828,279		138,668,381
GlaxoSmithKline PLC		7,033,271		172,228,926
Shire PLC		853,012		69,741,124

				380,638,431
PROFESSIONAL SERVICES — 1.31%
Capita PLC		957,252		19,506,296
Experian PLC		1,438,852		25,042,713
Intertek Group PLC		233,537		10,863,575

				55,412,584
REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.46%
British Land Co. PLC (The)		1,392,149		16,889,232
Hammerson PLC		1,031,768		10,409,558
Intu Properties PLC		1,285,742		7,302,708
Land Securities Group PLC		1,144,457		20,565,094
SEGRO PLC		1,076,314		6,615,490

				61,782,082
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.78%
ARM Holdings PLC		2,039,253		32,884,732

				32,884,732
SOFTWARE — 0.24%
Sage Group PLC (The)		1,588,358		10,385,270

				10,385,270


46		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI UNITED KINGDOM ETF

August 31, 2014


Security	Shares		Value

SPECIALTY RETAIL — 0.71%
Dixons Carphone PLC		1,419,141	$	8,121,660
Kingfisher PLC		3,439,172		17,346,132
Sports Direct International PLC^a		388,770		4,684,186

				30,151,978
TEXTILES, APPAREL & LUXURY GOODS — 0.36%
Burberry Group PLC		642,031		15,151,444

				15,151,444
TOBACCO — 5.21%
British American Tobacco PLC		2,712,762		160,092,865
Imperial Tobacco Group PLC		1,386,069		60,471,242

				220,564,107
TRADING COMPANIES & DISTRIBUTORS — 1.04%
Bunzl PLC		483,894		13,227,691
Travis Perkins PLC		357,348		10,344,100
Wolseley PLC		385,175		20,712,804

				44,284,595
WATER UTILITIES — 0.60%
Severn Trent PLC		346,739		11,200,212
United Utilities Group PLC		986,878		14,373,649

				25,573,861
WIRELESS TELECOMMUNICATION SERVICES — 3.10%
Vodafone Group PLC		38,292,976		131,482,696

				131,482,696

TOTAL COMMON STOCKS
(Cost: $3,856,074,004)				4,198,086,791

SHORT-TERM INVESTMENTS — 0.04%

MONEY MARKET FUNDS — 0.04%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		624,587		624,587
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		39,320		39,320
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		1,222,980		1,222,980

				1,886,887

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,886,887)				1,886,887


	Value

TOTAL INVESTMENTS IN SECURITIES — 99.14%
(Cost: $3,857,960,891)	$	4,199,973,678
Other Assets, Less Liabilities — 0.86%		36,385,837

NET ASSETS — 100.00%	$	4,236,359,515

^a	Non-income earning security.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

Financial futures contracts purchased as of August 31, 2014 were as follows:


Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Unrealized Appreciation (Depreciation)
	331	FTSE 100 Index (Sept. 2014)	NYSE Liffe London	$	37,388,381	$	750,837

See notes to financial statements.


SCHEDULES OF INVESTMENTS			47

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2014


	iShares MSCI Austria Capped ETF			iShares MSCI Belgium Capped ETF			iShares MSCI Emerging Markets Eastern Europe ETF

ASSETS
Investments, at cost:
Unaffiliated	$	83,626,133		$	156,766,118		$	173,025,442
Affiliated (Note 2)		321,860			4,076,845			90,457

Total cost of investments	$	83,947,993		$	160,842,963		$	173,115,899

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	62,183,404		$	164,600,237		$	150,223,835
Affiliated (Note 2)		321,860			4,076,845			90,457

Total fair value of investments		62,505,264			168,677,082			150,314,292
Foreign currency, at value^b		23,987			54,566			134,069
Cash		—			—			24,522
Receivables:
Investment securities sold		978,710			2,365,554			1,872,023
Dividends and interest		941,215			44,417			173,987
Capital shares sold		—			2,778			—

Total Assets		64,449,176			171,144,397			152,518,893


LIABILITIES
Payables:
Investment securities purchased		936,645			2,346,508			1,866,935
Collateral for securities on loan (Note 1)		316,750			3,968,384			—
Investment advisory fees (Note 2)		25,610			64,449			85,971

Total Liabilities		1,279,005			6,379,341			1,952,906


NET ASSETS	$	63,170,171		$	164,765,056		$	150,565,987


Net assets consist of:
Paid-in capital	$	168,982,688		$	213,190,241		$	178,053,096
Undistributed (distributions in excess of) net investment income		(28	)		(626,047	)		2,583,379
Accumulated net realized loss		(84,337,712	)		(55,632,245	)		(7,263,915	)
Net unrealized appreciation (depreciation)		(21,474,777	)		7,833,107			(22,806,573	)

NET ASSETS	$	63,170,171		$	164,765,056		$	150,565,987


Shares outstanding^c		3,600,000			9,680,000			6,600,000


Net asset value per share	$	17.55		$	17.02		$	22.81

^a	Securities on loan with values of $304,668, $3,609,891 and $ —, respectively. See Note 1.

^b	Cost of foreign currency: $24,458, $55,716 and $135,740, respectively.

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

See notes to financial statements.


48		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI France ETF			iShares MSCI Italy Capped ETF			iShares MSCI Netherlands ETF

ASSETS
Investments, at cost:
Unaffiliated	$	323,921,120		$	1,594,016,316		$	174,723,662
Affiliated (Note 2)		2,222,082			19,803,088			5,551,054

Total cost of investments	$	326,143,202		$	1,613,819,404		$	180,274,716

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	281,809,243		$	1,555,771,089		$	164,489,842
Affiliated (Note 2)		2,222,082			19,803,088			5,551,054

Total fair value of investments		284,031,325			1,575,574,177			170,040,896
Foreign currency, at value^b		203,710			1,859,304			195,385
Receivables:
Investment securities sold		822,723			16,115,719			146,248
Due from custodian (Note 4)		—			1,403,408			—
Dividends and interest		10,003			83,896			448,145

Total Assets		285,067,761			1,595,036,504			170,830,674


LIABILITIES
Payables:
Investment securities purchased		802,210			17,719,004			145,649
Collateral for securities on loan (Note 1)		2,220,309			19,784,106			5,526,082
Investment advisory fees (Note 2)		122,422			673,142			67,439

Total Liabilities		3,144,941			38,176,252			5,739,170


NET ASSETS	$	281,922,820		$	1,556,860,252		$	165,091,504


Net assets consist of:
Paid-in capital	$	367,662,837		$	1,683,047,930		$	218,184,946
Undistributed net investment income		275,842			—			401,577
Accumulated net realized loss		(43,898,922	)		(87,911,666	)		(43,254,874	)
Net unrealized depreciation		(42,116,937	)		(38,276,012	)		(10,240,145	)

NET ASSETS	$	281,922,820		$	1,556,860,252		$	165,091,504


Shares outstanding^c		10,200,000			97,200,000			6,700,000


Net asset value per share	$	27.64		$	16.02		$	24.64

^a	Securities on loan with values of $2,142,963, $18,823,655 and $5,196,000, respectively. See Note 1.

^b	Cost of foreign currency: $208,582, $1,890,089 and $196,542, respectively.

^c	$0.001 par value, number of shares authorized: 340.2 million, 295.4 million and 255 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			49

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI Spain Capped ETF			iShares MSCI Sweden ETF			iShares MSCI Switzerland Capped ETF

ASSETS
Investments, at cost:
Unaffiliated	$	2,374,573,243		$	396,607,637		$	862,464,710
Affiliated (Note 2)		2,538,504			4,221,591			14,096,613

Total cost of investments	$	2,377,111,747		$	400,829,228		$	876,561,323

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	2,470,617,200		$	403,941,257		$	1,063,255,946
Affiliated (Note 2)		2,538,504			4,221,591			14,096,613

Total fair value of investments		2,473,155,704			408,162,848			1,077,352,559
Foreign currency, at value^b		794,969			255,555			576,956
Receivables:
Investment securities sold		9,930,187			1,547,781			6,778,984
Due from custodian (Note 4)		988,404			—			—
Dividends and interest		148,159			103,810			8,207,696

Total Assets		2,485,017,423			410,069,994			1,092,916,195


LIABILITIES
Payables:
Investment securities purchased		10,364,960			1,444,307			6,242,460
Collateral for securities on loan (Note 1)		—			4,205,568			14,088,384
Capital shares redeemed		635,800			—			—
Investment advisory fees (Note 2)		979,015			164,111			428,082

Total Liabilities		11,979,775			5,813,986			20,758,926


NET ASSETS	$	2,473,037,648		$	404,256,008		$	1,072,157,269


Net assets consist of:
Paid-in capital	$	2,460,806,923		$	442,209,573		$	929,094,970
Undistributed (distributions in excess of) net investment income		23,027,613			(1,954,836	)		(640,142	)
Accumulated net realized loss		(106,826,339	)		(43,329,250	)		(57,011,080	)
Net unrealized appreciation		96,029,451			7,330,521			200,713,521

NET ASSETS	$	2,473,037,648		$	404,256,008		$	1,072,157,269


Shares outstanding^c		60,900,000			11,850,000			31,875,000


Net asset value per share	$	40.61		$	34.11		$	33.64

^a	Securities on loan with values of $ —, $3,912,959 and $13,463,173, respectively. See Note 1.

^b	Cost of foreign currency: $806,785, $258,654 and $583,489, respectively.

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

See notes to financial statements.


50		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI United Kingdom ETF

ASSETS
Investments, at cost:
Unaffiliated	$	3,856,074,004
Affiliated (Note 2)		1,886,887

Total cost of investments	$	3,857,960,891

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	4,198,086,791
Affiliated (Note 2)		1,886,887

Total fair value of investments		4,199,973,678
Foreign currency, at value^b		19,502,244
Foreign currency pledged to broker, at value^b		1,215,472
Receivables:
Investment securities sold		2,496,443
Dividends and interest		29,529,868
Futures variation margin		750,837

Total Assets		4,253,468,542


LIABILITIES
Payables:
Investment securities purchased		14,752,546
Collateral for securities on loan (Note 1)		663,907
Investment advisory fees (Note 2)		1,692,574

Total Liabilities		17,109,027


NET ASSETS	$	4,236,359,515


Net assets consist of:
Paid-in capital	$	4,105,517,652
Undistributed net investment income		36,730,763
Accumulated net realized loss		(248,227,427	)
Net unrealized appreciation		342,338,527

NET ASSETS	$	4,236,359,515


Shares outstanding^c		206,400,000


Net asset value per share	$	20.52

^a	Securities on loan with a value of $648,053. See Note 1.

^b	Cost of foreign currency including currency pledged to broker: $20,996,716.

^c	$0.001 par value, number of shares authorized: 934.2 million.

See notes to financial statements.


FINANCIAL STATEMENTS			51

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI Austria Capped ETF			iShares MSCI Belgium Capped ETF			iShares MSCI Emerging Markets Eastern Europe ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	2,724,024		$	1,895,823		$	4,873,423
Interest — affiliated (Note 2)		7			13			23
Securities lending income — affiliated (Note 2)		19,440			101,569			4,883

Total investment income		2,743,471			1,997,405			4,878,329


EXPENSES
Investment advisory fees (Note 2)		423,284			402,608			961,380

Total expenses		423,284			402,608			961,380

Net investment income		2,320,187			1,594,797			3,916,949


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(14,957,999	)		(4,165,713	)		(5,274,910	)
In-kind redemptions — unaffiliated		8,838,641			7,388,910			1,780,417
Foreign currency transactions		(41,369	)		(5,570	)		(132,357	)

Net realized gain (loss)		(6,160,727	)		3,217,627			(3,626,850	)

Net change in unrealized appreciation/depreciation on:
Investments		7,660,076			8,277,494			(8,338,103	)
Translation of assets and liabilities in foreign currencies		(7,639	)		(1,040	)		3,760

Net change in unrealized appreciation/depreciation		7,652,437			8,276,454			(8,334,343	)

Net realized and unrealized gain (loss)		1,491,710			11,494,081			(11,961,193	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	3,811,897		$	13,088,878		$	(8,044,244	)

^a	Net of foreign withholding tax of $262,396, $312,028 and $613,266, respectively.

See notes to financial statements.


52		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI France ETF			iShares MSCI Italy Capped ETF			iShares MSCI Netherlands ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	12,599,941		$	34,273,969		$	5,906,829
Interest — affiliated (Note 2)		36			58			11
Securities lending income — affiliated (Note 2)		14,403			1,513,098			77,162

Total investment income		12,614,380			35,787,125			5,984,002


EXPENSES
Investment advisory fees (Note 2)		2,136,157			5,770,615			1,273,241

Total expenses		2,136,157			5,770,615			1,273,241

Net investment income		10,478,223			30,016,510			4,710,761


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(15,075,523	)		(4,569,858	)		(2,851,366	)
In-kind redemptions — unaffiliated		63,049,330			123,103,178			31,396,111
Foreign currency transactions		(23,436	)		135,914			(48,135	)

Net realized gain		47,950,371			118,669,234			28,496,610

Net change in unrealized appreciation/depreciation on:
Investments		9,095,958			(43,077,828	)		(1,266,295	)
Translation of assets and liabilities in foreign currencies		(95	)		(36,316	)		(358	)

Net change in unrealized appreciation/depreciation		9,095,863			(43,114,144	)		(1,266,653	)

Net realized and unrealized gain		57,046,234			75,555,090			27,229,957

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	67,524,457		$	105,571,600		$	31,940,718

^a	Net of foreign withholding tax of $2,088,423, $5,168,847 and $673,335, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			53

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI Spain Capped ETF			iShares MSCI Sweden ETF			iShares MSCI Switzerland Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	74,627,703		$	17,065,404		$	30,518,641
Interest — affiliated (Note 2)		142			24			44
Securities lending income — affiliated (Note 2)		79,954			15,159			3,070

Total investment income		74,707,799			17,080,587			30,521,755


EXPENSES
Investment advisory fees (Note 2)		7,203,889			2,380,666			5,066,631

Total expenses		7,203,889			2,380,666			5,066,631

Net investment income		67,503,910			14,699,921			25,455,124


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(19,709,685	)		(2,027,973	)		(908,172	)
In-kind redemptions — unaffiliated		49,135,263			32,984,675			34,246,014
Foreign currency transactions		(154,142	)		(178,349	)		14,068

Net realized gain		29,271,436			30,778,353			33,351,910

Net change in unrealized appreciation/depreciation on:
Investments		128,785,673			1,734,778			97,471,648
Translation of assets and liabilities in foreign currencies		(12,860	)		(4,742	)		(43,716	)

Net change in unrealized appreciation/depreciation		128,772,813			1,730,036			97,427,932

Net realized and unrealized gain		158,044,249			32,508,389			130,779,842

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	225,548,159		$	47,208,310		$	156,234,966

^a	Net of foreign withholding tax of $4,991,467, $3,000,308 and $4,025,158, respectively.

See notes to financial statements.


54		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI United Kingdom ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	278,817,674	^b
Interest — unaffiliated		831
Interest — affiliated (Note 2)		569
Securities lending income — affiliated (Note 2)		5,409

Total investment income		278,824,483


EXPENSES
Investment advisory fees (Note 2)		18,609,244

Total expenses		18,609,244

Net investment income		260,215,239


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(75,826,273	)
In-kind redemptions — unaffiliated		71,678,724
Futures contracts		1,396,990
Foreign currency transactions		2,560,706

Net realized loss		(189,853	)

Net change in unrealized appreciation/depreciation on:
Investments		293,463,686
Futures contracts		643,745
Translation of assets and liabilities in foreign currencies		(385,492	)

Net change in unrealized appreciation/depreciation		293,721,939

Net realized and unrealized gain		293,532,086

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	553,747,325

^a	Net of foreign withholding tax of $1,708,504.

^b	Includes $125,275,366 related to a one-time special distribution from Vodafone Group PLC.

See notes to financial statements.


FINANCIAL STATEMENTS			55

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Austria Capped ETF						iShares MSCI Belgium Capped ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	2,320,187		$	1,528,895		$	1,594,797		$	1,598,407
Net realized gain (loss)		(6,160,727	)		(11,669,743	)		3,217,627			(8,125,719	)
Net change in unrealized appreciation/depreciation		7,652,437			26,255,911			8,276,454			16,321,817

Net increase in net assets resulting from operations		3,811,897			16,115,063			13,088,878			9,794,505


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,505,599	)		(1,541,991	)		(2,704,438	)		(1,577,907	)

Total distributions to shareholders		(2,505,599	)		(1,541,991	)		(2,704,438	)		(1,577,907	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		99,089,245			81,897,298			110,895,731			43,904,093
Cost of shares redeemed		(119,448,599	)		(68,004,259	)		(27,730,866	)		(6,290,893	)

Net increase (decrease) in net assets from capital share transactions		(20,359,354	)		13,893,039			83,164,865			37,613,200

INCREASE (DECREASE) IN NET ASSETS		(19,053,056	)		28,466,111			93,549,305			45,829,798

NET ASSETS
Beginning of year		82,223,227			53,757,116			71,215,751			25,385,953

End of year	$	63,170,171		$	82,223,227		$	164,765,056		$	71,215,751

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(28	)	$	(273	)	$	(626,047	)	$	70,140


SHARES ISSUED AND REDEEMED
Shares sold		5,000,000			4,700,000			6,520,000			3,280,000
Shares redeemed		(6,000,000	)		(3,800,000	)		(1,800,000	)		(440,000	)

Net increase (decrease) in shares outstanding		(1,000,000	)		900,000			4,720,000			2,840,000

See notes to financial statements.


56		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Emerging Markets Eastern Europe ETF						iShares MSCI France ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	3,916,949		$	1,488,815		$	10,478,223		$	13,818,058
Net realized gain (loss)		(3,626,850	)		(3,516,141	)		47,950,371			17,439,638
Net change in unrealized appreciation/depreciation		(8,334,343	)		(6,591,687	)		9,095,863			64,371,651

Net increase (decrease) in net assets resulting from operations		(8,044,244	)		(8,619,013	)		67,524,457			95,629,347


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,868,858	)		(885,320	)		(10,305,702	)		(13,699,998	)

Total distributions to shareholders		(1,868,858	)		(885,320	)		(10,305,702	)		(13,699,998	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		90,271,091			124,132,179			84,933,809			198,782,962
Cost of shares redeemed		(51,589,448	)		(13,432,406	)		(387,069,111	)		(155,498,446	)

Net increase (decrease) in net assets from capital share transactions		38,681,643			110,699,773			(302,135,302	)		43,284,516

INCREASE (DECREASE) IN NET ASSETS		28,768,541			101,195,440			(244,916,547	)		125,213,865

NET ASSETS
Beginning of year		121,797,446			20,602,006			526,839,367			401,625,502

End of year	$	150,565,987		$	121,797,446		$	281,922,820		$	526,839,367

Undistributed net investment income included in net assets at end of year	$	2,583,379		$	667,494		$	275,842		$	117,337


SHARES ISSUED AND REDEEMED
Shares sold		3,600,000			4,800,000			3,000,000			8,000,000
Shares redeemed		(2,100,000	)		(550,000	)		(14,000,000	)		(6,200,000	)

Net increase (decrease) in shares outstanding		1,500,000			4,250,000			(11,000,000	)		1,800,000

See notes to financial statements.


FINANCIAL STATEMENTS			57

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Italy Capped ETF						iShares MSCI Netherlands ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	30,016,510		$	13,795,086		$	4,710,761		$	3,074,875
Net realized gain (loss)		118,669,234			(42,529,871	)		28,496,610			1,741,733
Net change in unrealized appreciation/depreciation		(43,114,144	)		57,298,873			(1,266,653	)		22,041,313

Net increase in net assets resulting from operations		105,571,600			28,564,088			31,940,718			26,857,921


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(31,039,889	)		(13,839,281	)		(5,077,158	)		(2,491,248	)
Return of capital		—			(452,885	)		—			—

Total distributions to shareholders		(31,039,889	)		(14,292,166	)		(5,077,158	)		(2,491,248	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,348,720,763			687,838,080			53,331,509			192,481,969
Cost of shares redeemed		(583,513,961	)		(181,200,015	)		(168,493,467	)		(41,855,281	)

Net increase (decrease) in net assets from capital share transactions		765,206,802			506,638,065			(115,161,958	)		150,626,688

INCREASE (DECREASE) IN NET ASSETS		839,738,513			520,909,987			(88,298,398	)		174,993,361

NET ASSETS
Beginning of year		717,121,739			196,211,752			253,389,902			78,396,541

End of year	$	1,556,860,252		$	717,121,739		$	165,091,504		$	253,389,902

Undistributed net investment income included in net assets at end of year	$	—		$	—		$	401,577		$	769,772


SHARES ISSUED AND REDEEMED
Shares sold		79,050,000			52,350,000			2,200,000			8,900,000
Shares redeemed		(36,750,000	)		(14,100,000	)		(6,750,000	)		(1,950,000	)

Net increase (decrease) in shares outstanding		42,300,000			38,250,000			(4,550,000	)		6,950,000

See notes to financial statements.


58		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Spain Capped ETF						iShares MSCI Sweden ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	67,503,910		$	11,916,599		$	14,699,921		$	12,162,620
Net realized gain (loss)		29,271,436			(33,347,860	)		30,778,353			2,931,080
Net change in unrealized appreciation/depreciation		128,772,813			54,581,536			1,730,036			56,694,094

Net increase in net assets resulting from operations		225,548,159			33,150,275			47,208,310			71,787,794


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(48,486,263	)		(10,629,551	)		(17,174,445	)		(12,548,817	)

Total distributions to shareholders		(48,486,263	)		(10,629,551	)		(17,174,445	)		(12,548,817	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		2,068,530,441			465,959,787			101,532,730			90,137,660
Cost of shares redeemed		(190,332,570	)		(265,795,649	)		(161,316,482	)		(86,203,125	)

Net increase (decrease) in net assets from capital share transactions		1,878,197,871			200,164,138			(59,783,752	)		3,934,535

INCREASE (DECREASE) IN NET ASSETS		2,055,259,767			222,684,862			(29,749,887	)		63,173,512

NET ASSETS
Beginning of year		417,777,881			195,093,019			434,005,895			370,832,383

End of year	$	2,473,037,648		$	417,777,881		$	404,256,008		$	434,005,895

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	23,027,613		$	4,164,108		$	(1,954,836	)	$	(449,084	)


SHARES ISSUED AND REDEEMED
Shares sold		51,825,000			15,225,000			2,850,000			2,850,000
Shares redeemed		(4,650,000	)		(8,925,000	)		(4,575,000	)		(2,850,000	)

Net increase (decrease) in shares outstanding		47,175,000			6,300,000			(1,725,000	)		—

See notes to financial statements.


FINANCIAL STATEMENTS			59

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Switzerland Capped ETF						iShares MSCI United Kingdom ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	25,455,124		$	18,633,070		$	260,215,239		$	60,304,419
Net realized gain (loss)		33,351,910			36,591,404			(189,853	)		(34,126,101	)
Net change in unrealized appreciation/depreciation		97,427,932			102,892,043			293,721,939			153,873,682

Net increase in net assets resulting from operations		156,234,966			158,116,517			553,747,325			180,052,000


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(26,005,188	)		(19,030,631	)		(244,875,033	)		(51,302,175	)

Total distributions to shareholders		(26,005,188	)		(19,030,631	)		(244,875,033	)		(51,302,175	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		135,490,352			352,868,105			1,488,790,094			1,203,907,210
Cost of shares redeemed		(96,423,300	)		(143,663,266	)		(232,099,021	)		(18,354,984	)

Net increase in net assets from capital share transactions		39,067,052			209,204,839			1,256,691,073			1,185,552,226

INCREASE IN NET ASSETS		169,296,830			348,290,725			1,565,563,365			1,314,302,051

NET ASSETS
Beginning of year		902,860,439			554,569,714			2,670,796,150			1,356,494,099

End of year	$	1,072,157,269		$	902,860,439		$	4,236,359,515		$	2,670,796,150

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(640,142	)	$	(137,987	)	$	36,730,763		$	18,644,893


SHARES ISSUED AND REDEEMED
Shares sold		4,000,000			12,500,000			73,600,000			64,800,000
Shares redeemed		(2,875,000	)		(5,000,000	)		(11,200,000	)		(1,000,000	)

Net increase in shares outstanding		1,125,000			7,500,000			62,400,000			63,800,000

See notes to financial statements.


60		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Austria Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	17.87		$	14.53		$	18.76		$	17.27		$	20.21

Income from investment operations:
Net investment income^a		0.52			0.32			0.35			0.42			0.43
Net realized and unrealized gain (loss)^b		(0.18	)		3.36			(4.09	)		1.53			(2.62	)

Total from investment operations		0.34			3.68			(3.74	)		1.95			(2.19	)

Less distributions from:
Net investment income		(0.66	)		(0.34	)		(0.49	)		(0.46	)		(0.75	)

Total distributions		(0.66	)		(0.34	)		(0.49	)		(0.46	)		(0.75	)

Net asset value, end of year	$	17.55		$	17.87		$	14.53		$	18.76		$	17.27


Total return		1.56	%		25.49	%		(19.81	)%		10.92	%		(11.07	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	63,170		$	82,223		$	53,757		$	136,974		$	110,520
Ratio of expenses to average net assets		0.48	%		0.51	%		0.52	%		0.52	%		0.54	%
Ratio of net investment income to average net assets		2.64	%		1.82	%		2.32	%		1.95	%		2.20	%
Portfolio turnover rate^c		30	%		26	%		13	%		12	%		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	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			61

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Belgium Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	14.36		$	11.97		$	12.60		$	11.78		$	12.06

Income from investment operations:
Net investment income^a		0.32			0.42			0.38			0.35			0.19
Net realized and unrealized gain (loss)^b		2.95			2.36			(0.33	)		0.80			(0.27	)

Total from investment operations		3.27			2.78			0.05			1.15			(0.08	)

Less distributions from:
Net investment income		(0.61	)		(0.39	)		(0.67	)		(0.33	)		(0.20	)
Return of capital		—			—			(0.01	)		—			—

Total distributions		(0.61	)		(0.39	)		(0.68	)		(0.33	)		(0.20	)

Net asset value, end of year	$	17.02		$	14.36		$	11.97		$	12.60		$	11.78


Total return		23.05	%		23.43	%		1.11	%		9.59	%		(0.60	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	164,765		$	71,216		$	25,386		$	31,256		$	58,896
Ratio of expenses to average net assets		0.48	%		0.50	%		0.53	%		0.52	%		0.54	%
Ratio of net investment income to average net assets		1.90	%		3.01	%		3.35	%		2.56	%		1.55	%
Portfolio turnover rate^c		13	%		24	%		19	%		12	%		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	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		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Emerging Markets Eastern Europe ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Period from Sep. 30, 2009^a to Aug. 31, 2010
Net asset value, beginning of period	$	23.88		$	24.24		$	29.28		$	25.66		$	24.65

Income from investment operations:
Net investment income^b		0.67			0.73			1.01			0.67			0.26
Net realized and unrealized gain (loss)^c		(1.41	)		(0.77	)		(4.92	)		3.45			0.89

Total from investment operations		(0.74	)		(0.04	)		(3.91	)		4.12			1.15

Less distributions from:
Net investment income		(0.33	)		(0.32	)		(1.13	)		(0.50	)		(0.13	)
Net realized gain		—			—			—			—			(0.01	)

Total distributions		(0.33	)		(0.32	)		(1.13	)		(0.50	)		(0.14	)

Net asset value, end of period	$	22.81		$	23.88		$	24.24		$	29.28		$	25.66


Total return		(3.21	)%		(0.20	)%		(13.14	)%		15.86	%		4.68	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	150,566		$	121,797		$	20,602		$	32,212		$	12,832
Ratio of expenses to average net assets^e		0.67	%		0.67	%		0.69	%		0.68	%		0.69	%
Ratio of expenses to average net assets prior to waived fees		n/a			n/a			n/a			0.68	%		n/a
Ratio of net investment income to average net assets^e		2.75	%		2.96	%		3.97	%		2.06	%		1.05	%
Portfolio turnover rate^f		8	%		9	%		8	%		24	%		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.


FINANCIAL HIGHLIGHTS			63

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI France ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	24.85		$	20.70		$	22.60		$	21.03		$	24.28

Income from investment operations:
Net investment income^a		0.66			0.69			0.59			0.86			0.65
Net realized and unrealized gain (loss)^b		2.86			4.14			(1.80	)		1.38			(3.30	)

Total from investment operations		3.52			4.83			(1.21	)		2.24			(2.65	)

Less distributions from:
Net investment income		(0.73	)		(0.68	)		(0.69	)		(0.67	)		(0.60	)
Return of capital		—			—			(0.00	)^c		—			—

Total distributions		(0.73	)		(0.68	)		(0.69	)		(0.67	)		(0.60	)

Net asset value, end of year	$	27.64		$	24.85		$	20.70		$	22.60		$	21.03


Total return		14.07	%		23.56	%		(5.05	)%		10.24	%		(10.98	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	281,923		$	526,839		$	401,626		$	357,137		$	239,706
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.52	%		0.53	%
Ratio of net investment income to average net assets		2.36	%		2.94	%		2.91	%		3.38	%		2.71	%
Portfolio turnover rate^d		6	%		5	%		6	%		6	%		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	Rounds to less than $0.01.

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

See notes to financial statements.


64		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Italy Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	13.06		$	11.78		$	13.58		$	15.00		$	19.05

Income from investment operations:
Net investment income^a		0.41			0.36			0.41			0.54			0.39
Net realized and unrealized gain (loss)^b		2.89			1.23			(1.79	)		(1.47	)		(3.99	)

Total from investment operations		3.30			1.59			(1.38	)		(0.93	)		(3.60	)

Less distributions from:
Net investment income		(0.34	)		(0.30	)		(0.42	)		(0.49	)		(0.44	)
Return of capital		—			(0.01	)		(0.00	)^c		—			(0.01	)

Total distributions		(0.34	)		(0.31	)		(0.42	)		(0.49	)		(0.45	)

Net asset value, end of year	$	16.02		$	13.06		$	11.78		$	13.58		$	15.00


Total return		25.20	%		13.58	%		(9.98	)%		(6.80	)%		(19.11	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,556,860		$	717,122		$	196,212		$	144,612		$	76,500
Ratio of expenses to average net assets		0.48	%		0.50	%		0.53	%		0.51	%		0.54	%
Ratio of net investment income to average net assets		2.49	%		2.78	%		3.41	%		3.15	%		2.17	%
Portfolio turnover rate^d		24	%		45	%		14	%		16	%		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	Rounds to less than $0.01.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			65

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Netherlands ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	22.52		$	18.23		$	18.45		$	17.89		$	18.52

Income from investment operations:
Net investment income^a		0.45			0.44			0.39			0.48			0.45
Net realized and unrealized gain (loss)^b		2.22			4.19			(0.08	)		0.55			(0.70	)

Total from investment operations		2.67			4.63			0.31			1.03			(0.25	)

Less distributions from:
Net investment income		(0.55	)		(0.34	)		(0.53	)		(0.47	)		(0.38	)

Total distributions		(0.55	)		(0.34	)		(0.53	)		(0.47	)		(0.38	)

Net asset value, end of year	$	24.64		$	22.52		$	18.23		$	18.45		$	17.89


Total return		11.80	%		25.57	%		1.96	%		5.44	%		(1.44	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	165,092		$	253,390		$	78,397		$	121,740		$	147,611
Ratio of expenses to average net assets		0.48	%		0.50	%		0.53	%		0.52	%		0.53	%
Ratio of net investment income to average net assets		1.78	%		2.09	%		2.21	%		2.26	%		2.31	%
Portfolio turnover rate^c		7	%		11	%		10	%		6	%		9	%

^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	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		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Spain Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	30.44		$	26.28		$	35.89		$	37.02		$	47.65

Income from investment operations:
Net investment income^a		1.80			1.33			2.12			2.14			1.64
Net realized and unrealized gain (loss)^b		9.53			4.07			(8.93	)		(1.36	)		(10.01	)

Total from investment operations		11.33			5.40			(6.81	)		0.78			(8.37	)

Less distributions from:
Net investment income		(1.16	)		(1.24	)		(2.80	)		(1.91	)		(2.26	)

Total distributions		(1.16	)		(1.24	)		(2.80	)		(1.91	)		(2.26	)

Net asset value, end of year	$	40.61		$	30.44		$	26.28		$	35.89		$	37.02


Total return		37.39	%		20.88	%		(19.36	)%		1.78	%		(17.91	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	2,473,038		$	417,778		$	195,093		$	180,360		$	194,362
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.52	%		0.54	%
Ratio of net investment income to average net assets		4.48	%		4.45	%		7.60	%		5.31	%		3.72	%
Portfolio turnover rate^c		15	%		24	%		17	%		14	%		9	%

^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	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 Sweden ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	31.97		$	27.32		$	26.82		$	24.46		$	22.86

Income from investment operations:
Net investment income^a		1.04			0.97			0.83			1.18			0.48
Net realized and unrealized gain^b		2.33			4.70			0.58			2.22			1.73

Total from investment operations		3.37			5.67			1.41			3.40			2.21

Less distributions from:
Net investment income		(1.23	)		(1.02	)		(0.86	)		(1.04	)		(0.61	)
Return of capital		—			—			(0.05	)		—			—

Total distributions		(1.23	)		(1.02	)		(0.91	)		(1.04	)		(0.61	)

Net asset value, end of year	$	34.11		$	31.97		$	27.32		$	26.82		$	24.46


Total return		10.49	%		21.02	%		5.57	%		13.40	%		9.70	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	404,256		$	434,006		$	370,832		$	329,887		$	249,491
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		2.97	%		3.13	%		3.17	%		3.80	%		1.97	%
Portfolio turnover rate^c		7	%		7	%		7	%		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	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		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Switzerland Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	29.36		$	23.85		$	24.67		$	21.64		$	20.71

Income from investment operations:
Net investment income^a		0.80			0.67			0.63			0.59			0.39
Net realized and unrealized gain (loss)^b		4.27			5.44			(0.80	)		2.97			0.90

Total from investment operations		5.07			6.11			(0.17	)		3.56			1.29

Less distributions from:
Net investment income		(0.79	)		(0.60	)		(0.65	)		(0.53	)		(0.36	)

Total distributions		(0.79	)		(0.60	)		(0.65	)		(0.53	)		(0.36	)

Net asset value, end of year	$	33.64		$	29.36		$	23.85		$	24.67		$	21.64


Total return		17.21	%		25.71	%		(0.53	)%		16.30	%		6.35	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,072,157		$	902,860		$	554,570		$	524,159		$	405,755
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.52	%		0.53	%
Ratio of net investment income to average net assets		2.41	%		2.38	%		2.73	%		2.35	%		1.80	%
Portfolio turnover rate^c		5	%		13	%		8	%		7	%		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	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 United Kingdom ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	18.55		$	16.91		$	16.43		$	15.01		$	15.02

Income from investment operations:
Net investment income^a		1.38	^b		0.66			0.64			0.54			0.46
Net realized and unrealized gain (loss)^c		1.85			1.49			0.46			1.35			(0.03	)

Total from investment operations		3.23			2.15			1.10			1.89			0.43

Less distributions from:
Net investment income		(1.26	)		(0.51	)		(0.62	)		(0.47	)		(0.44	)

Total distributions		(1.26	)		(0.51	)		(0.62	)		(0.47	)		(0.44	)

Net asset value, end of year	$	20.52		$	18.55		$	16.91		$	16.43		$	15.01


Total return		17.56	%		12.91	%		6.94	%		12.50	%		2.87	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	4,236,360		$	2,670,796		$	1,356,494		$	1,199,333		$	930,412
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.52	%		0.53	%
Ratio of net investment income to average net assets		6.71	%^b		3.61	%		3.88	%		3.07	%		2.98	%
Portfolio turnover rate^d		10	%		4	%		7	%		4	%		7	%

^a	Based on average shares outstanding throughout each period.

^b	Includes a one-time special distribution from Vodafone Group PLC which represented $0.66 per share and 3.23% of average net assets.

^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	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		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

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 following funds (each, a “Fund,” and collectively, the “Funds”):


iShares ETF	Diversification Classification
MSCI Austria Capped		Non-diversified
MSCI Belgium Capped		Non-diversified
MSCI Emerging Markets Eastern Europe		Non-diversified
MSCI France		Non-diversified
MSCI Italy Capped		Non-diversified


iShares ETF	Diversification Classification
MSCI Netherlands		Non-diversified
MSCI Spain Capped		Non-diversified
MSCI Sweden		Non-diversified
MSCI Switzerland Capped		Non-diversified
MSCI United Kingdom		Non-diversified

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 try to achieve each Fund’s investment objective.

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.

FUND REORGANIZATION

The iShares MSCI United Kingdom ETF, a series of iShares Trust (the “Successor Fund”), previously operated as a series of iShares, Inc. (the “Predecessor Fund”), and is continuing the operations of the Predecessor Fund. Before the Successor Fund commenced operations, all of the assets and liabilities of the Predecessor Fund were transferred to the Successor Fund in a reorganization (the “Reorganization”), which was tax-free for U.S. federal income tax purposes. The Reorganization occurred on September 29, 2014. As a result of the Reorganization, the Successor Fund assumed the performance and accounting history of the Predecessor Fund. The Successor Fund has the same investment objective, investment strategy, index methodology, risks, policies and expenses as the Predecessor Fund.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

The following significant accounting policies are consistently followed by the Funds in the preparation of their 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. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946 (ASC 946).

SECURITY VALUATION


NOTES TO FINANCIAL STATEMENTS			71

Notes to Financial Statements (Continued)

iSHARES^®, INC.

defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

•

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

•

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued based upon other available factors deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.

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.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. 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 is not necessarily an indication of the risk associated with investing in the instrument. The three levels of the fair value hierarchy are as follows:

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

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 (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and


72		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of August 31, 2014. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2		Level 3		Total
MSCI Austria Capped
Assets:
Common Stocks	$	62,183,379	$	—	$	25	$	62,183,404
Money Market Funds		321,860		—		—		321,860

	$	62,505,239	$	—	$	25	$	62,505,264


MSCI Belgium Capped
Assets:
Common Stocks	$	164,600,237	$	—	$	—	$	164,600,237
Money Market Funds		4,076,845		—		—		4,076,845

	$	168,677,082	$	—	$	—	$	168,677,082


MSCI Emerging Markets Eastern Europe
Assets:
Common Stocks	$	144,861,807	$	—	$	—	$	144,861,807
Preferred Stocks		5,362,028		—		—		5,362,028
Money Market Funds		90,457		—		—		90,457

	$	150,314,292	$	—	$	—	$	150,314,292


MSCI France
Assets:
Common Stocks	$	281,809,243	$	—	$	—	$	281,809,243
Money Market Funds		2,222,082		—		—		2,222,082

	$	284,031,325	$	—	$	—	$	284,031,325


MSCI Italy Capped
Assets:
Common Stocks	$	1,555,771,089	$	—	$	—	$	1,555,771,089
Money Market Funds		19,803,088		—		—		19,803,088

	$	1,575,574,177	$	—	$	—	$	1,575,574,177


NOTES TO FINANCIAL STATEMENTS			73

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2		Level 3		Total
MSCI Netherlands
Assets:
Common Stocks	$	164,489,841	$	—	$	1	$	164,489,842
Money Market Funds		5,551,054		—		—		5,551,054

	$	170,040,895	$	—	$	1	$	170,040,896


MSCI Spain Capped
Assets:
Common Stocks	$	2,469,322,157	$	1,295,043	$	—	$	2,470,617,200
Money Market Funds		2,538,504		—		—		2,538,504

	$	2,471,860,661	$	1,295,043	$	—	$	2,473,155,704


MSCI Sweden
Assets:
Common Stocks	$	403,941,257	$	—	$	—	$	403,941,257
Money Market Funds		4,221,591		—		—		4,221,591

	$	408,162,848	$	—	$	—	$	408,162,848


MSCI Switzerland Capped
Assets:
Common Stocks	$	1,063,255,946	$	—	$	—	$	1,063,255,946
Money Market Funds		14,096,613		—		—		14,096,613

	$	1,077,352,559	$	—	$	—	$	1,077,352,559


MSCI United Kingdom
Assets:
Common Stocks	$	4,198,086,791	$	—	$	—	$	4,198,086,791
Money Market Funds		1,886,887		—		—		1,886,887
Futures Contracts^a		750,837		—		—		750,837

	$	4,200,724,515	$	—	$	—	$	4,200,724,515

Shown at the unrealized appreciation (depreciation) on the contracts.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of August 31, 2014 are reflected in dividends receivable. 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. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.


74		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. 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, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2014, if any, are disclosed in the Funds’ statements of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. 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.

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 market value of the loaned securities is determined at the close of each business day of the Funds and any additional required collateral is delivered to the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

Any cash received as collateral for securities on loan 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of August 31, 2014, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. The value of any securities on loan as of August 31, 2014 and the value of the related collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.


NOTES TO FINANCIAL STATEMENTS			75

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities lent. Each Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

The following table is a summary of each Fund’s securities lending agreements which are subject to offset under an MSLA as of August 31, 2014:


iShares ETF	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Austria Capped	$	304,668	$	304,668	$	—
MSCI Belgium Capped		3,609,891		3,609,891		—
MSCI France		2,142,963		2,142,963		—
MSCI Italy Capped		18,823,655		18,823,655		—
MSCI Netherlands		5,196,000		5,196,000		—
MSCI Sweden		3,912,959		3,912,959		—
MSCI Switzerland Capped		13,463,173		13,463,173		—
MSCI United Kingdom		648,053		648,053		—

Collateral received in excess of the market value of securities on loan is not presented for financial reporting purposes. The total collateral received is disclosed in each Fund’s statement of assets and liabilities.

RECENT ACCOUNTING STANDARD

In June 2014, the Financial Accounting Standards Board issued guidance to improve the financial reporting of reverse repurchase agreements and other similar transactions. The guidance will require expanded disclosure for entities that enter into reverse repurchase agreements and similar transactions accounted for as secured borrowings, including securities lending. The guidance is effective for financial statements for fiscal years beginning after December 15, 2014, and interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Funds’ financial statements and disclosures.

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses.


76		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For its investment advisory services to each Fund, except for the iShares MSCI Emerging Markets Eastern Europe ETF, 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 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, up to and including $72 billion
	0.36		Over $72 billion^a

Breakpoint level was added effective July 1, 2014.

For its investment advisory services to the iShares MSCI Emerging Markets Eastern Europe ETF, 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
	0.54	^b	Over $42 billion, up to and including $56 billion
	0.47	^b	Over $56 billion, up to and including $70 billion
	0.41	^b	Over $70 billion, up to and including $84 billion
	0.35	^b	Over $84 billion

Investment advisory fee was reduced effective July 1, 2014. Prior to this date, the investment advisory fee for these breakpoint levels were 0.56%, 0.50%, 0.45% and 0.40%, respectively.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Effective January 1, 2014, each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit a remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to a securities lending agreement effective January 1, 2014, (i) each Fund retains 75% of securities lending income and (ii) these amounts can never be less than 65% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in calendar year 2013 and pursuant to a securities lending agreement, (i) each Fund will receive for the remainder of that calendar year 80% of securities lending income and (ii) these amounts can never be less than 65% of the total of securities lending income plus the collateral investment fees.


NOTES TO FINANCIAL STATEMENTS			77

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2014, each Fund paid to BTC the following amounts in total for securities lending agent services and collateral investment fees:


iShares ETF	Fees Paid to BTC
MSCI Austria Capped	$	7,729
MSCI Belgium Capped		38,558
MSCI Emerging Markets Eastern Europe		2,001
MSCI France		5,665
MSCI Italy Capped		584,333


iShares ETF	Fees Paid to BTC
MSCI Netherlands	$	29,511
MSCI Spain Capped		39,695
MSCI Sweden		6,300
MSCI Switzerland Capped		1,360
MSCI United Kingdom		2,805

Prior to January 1, 2014, each Fund retained 65% of securities lending income and paid no collateral investment fees.

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Cross trades for the year ended August 31, 2014, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Interest – affiliated” in the statements of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

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 year ended August 31, 2014 were as follows:


iShares ETF	Purchases		Sales
MSCI Austria Capped	$	25,556,935	$	26,387,372
MSCI Belgium Capped		10,972,726		11,948,407
MSCI Emerging Markets Eastern Europe		14,401,424		11,161,245
MSCI France		27,399,017		32,515,996
MSCI Italy Capped		303,731,127		288,089,799
MSCI Netherlands		18,454,287		18,294,795
MSCI Spain Capped		312,638,141		228,918,559
MSCI Sweden		34,554,613		37,631,771
MSCI Switzerland Capped		57,017,193		60,702,350
MSCI United Kingdom		401,122,500		385,534,834


78		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

In-kind transactions (see Note 4) for the year ended August 31, 2014 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Austria Capped	$	97,849,647	$	117,788,012
MSCI Belgium Capped		110,625,501		27,662,319
MSCI Emerging Markets Eastern Europe		89,335,816		51,415,550
MSCI France		84,646,740		381,301,594
MSCI Italy Capped		1,327,555,940		581,142,786
MSCI Netherlands		52,735,238		168,183,478
MSCI Spain Capped		1,996,323,021		183,589,344
MSCI Sweden		101,486,107		161,006,548
MSCI Switzerland Capped		133,149,938		94,672,945
MSCI United Kingdom		1,478,171,084		228,721,565

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 in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s 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 may also 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. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

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.	*FINANCIAL FUTURES CONTRACTS*

Each Fund may purchase or sell financial futures contracts in an effort to help such Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform


NOTES TO FINANCIAL STATEMENTS			79

Notes to Financial Statements (Continued)

iSHARES^®, INC.

under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

The following table shows the value of futures contracts held by the iShares MSCI United Kingdom ETF as of August 31, 2014 and the related locations in the statement of assets and liabilities, presented by risk exposure category:


Assets
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation^a	$	750,837

Represents cumulative appreciation of futures contracts as reported in the schedule of investments.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI United Kingdom ETF during the year ended August 31, 2014 and the related locations in the statement of operations, presented by risk exposure category:


	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	1,396,990	$	643,745

For the year ended August 31, 2014, the average quarter-end number of contracts and notional value of open futures contracts for the iShares MSCI United Kingdom ETF were 331 and $36,654,427, respectively.

6.	*MARKET AND CREDIT RISK*

In the normal course of business, each Fund’s investment activities exposes it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and credit risk. Each Fund’s prospectus provides details of these and other types of risk.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss each Fund may suffer through holding market positions in the face of market movements. Each Fund is exposed to market risk by virtue of its investment in equity and financial derivative instruments. The fair value of securities held by the Funds may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of each Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s schedule of investments.


80		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.

Each Fund invests a substantial amount of its assets in securities of non-U.S. issuers that trade in non-U.S. markets. This involves 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. These risks are heightened for investments in issuers from countries with less developed markets.

Each Fund, except for the iShares MSCI Emerging Markets Eastern Europe ETF, invests all or substantially all of its assets in issuers located in a single country. When a fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.

The United States and the European Union, along with the regulatory bodies of a number of countries including Japan, Australia and Canada (collectively, “Sanctioning Bodies”), have imposed sectorial economic sanctions on certain Russian individuals and Russian corporate entities which include prohibitions on transacting in or dealing in new debt of longer than 30 or 90 days maturity or new equity of such issuers. Securities held by the iShares MSCI Emerging Markets Eastern Europe ETF issued prior to the date of the sanctions being imposed are not currently subject to any restrictions under the sanctions. However, compliance with each of these sanctions may impair the ability of a Fund to buy, sell, hold, receive or deliver the affected securities or other securities of such issuers. The Sanctioning Bodies could also institute broader sanctions on Russia. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. Current or future sanctions may result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. These retaliatory measures may include the immediate freeze of Russian assets held by a Fund.

CREDIT RISK

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of each Fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in the statement of assets and liabilities.

7.	*INCOME TAX INFORMATION*

Each Fund is treated as an entity separate from the Company’s other funds 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 is required.


NOTES TO FINANCIAL STATEMENTS			81

Notes to Financial Statements (Continued)

iSHARES^®, INC.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of August 31, 2014, attributable to passive foreign investment companies, the expiration of capital loss carryforwards, distributions paid in excess of taxable income, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI Austria Capped	$	(2,035,562	)	$	185,657		$	1,849,905
MSCI Belgium Capped		5,537,059			413,454			(5,950,513	)
MSCI Emerging Markets Eastern Europe		725,744			(132,206	)		(593,538	)
MSCI France		46,259,081			(14,016	)		(46,245,065	)
MSCI Italy Capped		99,141,596			1,023,379			(100,164,975	)
MSCI Netherlands		26,465,118			(1,798	)		(26,463,320	)
MSCI Spain Capped		38,950,981			(154,142	)		(38,796,839	)
MSCI Sweden		26,919,472			968,772			(27,888,244	)
MSCI Switzerland Capped		33,494,480			47,909			(33,542,389	)
MSCI United Kingdom		55,197,942			2,745,664			(57,943,606	)

The tax character of distributions paid during the years ended August 31, 2014 and August 31, 2013 was as follows:


iShares ETF	2014		2013
MSCI Austria Capped
Ordinary income	$	2,505,599	$	1,541,991


MSCI Belgium Capped
Ordinary income	$	2,704,438	$	1,577,907


MSCI Emerging Markets Eastern Europe
Ordinary income	$	1,868,858	$	885,320


MSCI France
Ordinary income	$	10,305,702	$	13,699,998


MSCI Italy
Ordinary income	$	31,039,889	$	13,839,281
Return of Capital		—		452,885

	$	31,039,889		14,292,166


MSCI Netherlands
Ordinary income	$	5,077,158	$	2,491,248


MSCI Spain Capped
Ordinary income	$	48,486,263	$	10,629,551


82		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF	2014		2013
MSCI Sweden
Ordinary income	$	17,174,445	$	12,548,817


MSCI Switzerland Capped
Ordinary income	$	26,005,188	$	19,030,631


MSCI United Kingdom
Ordinary income	$	244,875,033	$	51,302,175

As of August 31, 2014, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a			Qualified Late-Year Losses ^b			Total
MSCI Austria Capped	$	—	$	(74,605,072	)	$	(26,414,705	)	$	(4,792,740	)	$	(105,812,517	)
MSCI Belgium Capped		305,275		(48,795,778	)		948,084			(882,766	)		(48,425,185	)
MSCI Emerging Markets Eastern Europe		2,763,673		(2,366,476	)		(25,572,090	)		(2,312,216	)		(27,487,109	)
MSCI France		278,322		(28,309,469	)		(48,528,102	)		(9,180,768	)		(85,740,017	)
MSCI Italy Capped		—		(64,013,874	)		(60,540,652	)		(1,633,152	)		(126,187,678	)
MSCI Netherlands		401,577		(38,790,654	)		(12,744,090	)		(1,960,275	)		(53,093,442	)
MSCI Spain Capped		23,027,613		(50,737,031	)		42,265,600			(2,325,457	)		12,230,725
MSCI Sweden		2,547,782		(39,201,715	)		(1,245,221	)		(54,411	)		(37,953,565	)
MSCI Switzerland Capped		—		(43,318,619	)		187,547,430			(1,166,512	)		143,062,299
MSCI United Kingdom		37,787,739		(112,534,842	)		211,999,776			(6,410,810	)		130,841,863

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain futures contracts and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.


NOTES TO FINANCIAL STATEMENTS			83

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2014, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


iShares ETF	Non- Expiring^a		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Expiring 2019		Total
MSCI Austria Capped	$	24,634,925	$	9,795,917	$	2,587,916	$	7,102,366	$	16,657,011	$	13,826,937	$	74,605,072
MSCI Belgium Capped		11,294,523		—		1,698,444		5,953,120		10,826,174		19,023,517		48,795,778
MSCI Emerging Markets Eastern Europe		2,161,562		—		—		—		—		204,914		2,366,476
MSCI France		14,539,484		158,472		335,795		3,408,374		7,008,530		2,858,814		28,309,469
MSCI Italy Capped		33,168,667		—		472,268		2,743,650		18,169,627		9,459,662		64,013,874
MSCI Netherlands		6,930,449		260,715		1,195,162		5,819,153		22,256,170		2,329,005		38,790,654
MSCI Spain Capped		21,049,529		—		—		5,946,927		15,120,672		8,619,903		50,737,031
MSCI Sweden		11,686,467		—		100,015		13,686,746		8,483,510		5,244,977		39,201,715
MSCI Switzerland Capped		10,955,695		—		—		2,837,786		22,569,380		6,955,758		43,318,619
MSCI United Kingdom		50,058,426		—		261,754		16,140,312		23,559,917		22,514,433		112,534,842

Must be utilized prior to losses subject to expiration.

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.

As of August 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI Austria Capped	$	88,887,921	$	463,236	$	(26,845,893	)	$	(26,382,657	)
MSCI Belgium Capped		167,727,986		12,300,246		(11,351,150	)		949,096
MSCI Emerging Markets Eastern Europe		175,881,416		2,581,415		(28,148,539	)		(25,567,124	)
MSCI France		332,554,367		5,783,620		(54,306,662	)		(48,523,042	)
MSCI Italy Capped		1,636,084,044		26,543,907		(87,053,774	)		(60,509,867	)
MSCI Netherlands		182,778,661		5,802,524		(18,540,289	)		(12,737,765	)
MSCI Spain Capped		2,430,875,598		120,520,020		(78,239,914	)		42,280,106
MSCI Sweden		409,404,970		36,934,050		(38,176,172	)		(1,242,122	)
MSCI Switzerland Capped		889,727,414		222,015,219		(34,390,074	)		187,625,145
MSCI United Kingdom		3,987,548,805		521,845,607		(309,420,734	)		212,424,873

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2014, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.


84		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

8.	*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 other than the fund reorganization disclosed on page 71 of this report, has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.


NOTES TO FINANCIAL STATEMENTS			85

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

iShares, Inc.:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI Austria Capped ETF, iShares MSCI Belgium Capped ETF, iShares MSCI Emerging Markets Eastern Europe ETF, iShares MSCI France ETF, iShares MSCI Italy Capped ETF, iShares MSCI Netherlands ETF, iShares MSCI Spain Capped ETF, iShares MSCI Sweden ETF, iShares MSCI Switzerland Capped ETF and iShares MSCI United Kingdom ETF (the “Funds”) at August 31, 2014, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2014


86		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^®, INC.

For corporate shareholders, 33.90% of the income dividends paid by the iShares MSCI United Kingdom ETF during the fiscal year ended August 31, 2014 qualified for the dividends-received deduction.

For the fiscal year ended August 31, 2014, the Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders pursuant to Section 853 of the Internal Revenue Code (the “Code”) as follows:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Austria Capped	$	2,986,420	$	262,396
MSCI Belgium Capped		2,207,851		312,028
MSCI Emerging Markets Eastern Europe		5,486,689		613,266
MSCI France		14,688,364		2,087,857
MSCI Italy Capped		39,442,816		5,155,493
MSCI Netherlands		6,580,164		673,335
MSCI Spain Capped		79,618,857		4,989,673
MSCI Sweden		20,065,712		3,000,308
MSCI Switzerland Capped		34,546,477		4,025,051
MSCI United Kingdom		190,603,140		1,708,504

Under Section 854(b)(2) of the Code, the Funds hereby designate the following maximum amounts as qualified dividend income for purposes of the maximum rate under Section 1(h)(11) of the Code for the fiscal year ended August 31, 2014:


iShares ETF	Qualified Dividend Income
MSCI Austria Capped	$	1,782,481
MSCI Belgium Capped		2,001,842
MSCI Emerging Markets Eastern Europe		2,482,124
MSCI France		12,393,559
MSCI Italy Capped		36,195,382


iShares ETF	Qualified Dividend Income
MSCI Netherlands	$	5,750,493
MSCI Spain Capped		53,475,936
MSCI Sweden		19,214,532
MSCI Switzerland Capped		30,030,239
MSCI United Kingdom		246,583,537

In February 2015, shareholders will receive Form 1099-DIV which will include their share of qualified dividend income distributed during the calendar year 2014. Shareholders are advised to check with their tax advisers for information on the treatment of these amounts on their income tax returns.


TAX INFORMATION			87

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI Austria Capped ETF, iShares MSCI Belgium Capped ETF, iShares MSCI France ETF, iShares MSCI Italy Capped ETF, iShares MSCI Netherlands ETF, iShares MSCI Spain Capped ETF, iShares MSCI Sweden ETF, iShares MSCI Switzerland Capped ETF and iShares MSCI United Kingdom ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of each Fund in comparison with the same information for other exchange traded funds (including funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Lipper’s judgment, pure index institutional mutual funds, objectively selected by Lipper as comprising such Fund’s applicable peer group pursuant to Lipper’s proprietary ETF methodology (the “Lipper Group”). The Board noted that, prior to 2014, Lipper had used a different methodology to determine a Fund’s Lipper group, which included mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g. actively managed funds and funds sponsored by “at cost” service providers), as applicable. The Board further noted that, after consideration by the 15(c) Committee, the Board determined to use instead Lipper’s proprietary ETF methodology to determine a Fund’s Lipper Group. This determination was based on, among other considerations, the increased number and types of ETFs available for comparative purposes than was the case in prior years. The Board was provided with a detailed description of Lipper’s proprietary ETF methodology used by Lipper to determine the applicable Lipper Groups and to prepare this information. At the Board’s request, Lipper provided, and the Board considered, information on the impact to the iShares funds’ comparative fee rankings that were attributable to the change from a pure index group methodology to Lipper’s proprietary ETF methodology. The Board further noted that due to the limitations in providing comparable funds in the various Lipper Groups, the statistical information provided in Lipper’s report may or may not provide meaningful direct comparisons to the Funds in all instances.


88		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

The Board also noted that the investment advisory fee rates and overall expenses for the Funds were lower than the median of the investment advisory fee rates and overall expenses of the funds in their respective Lipper Group, except for iShares MSCI Netherlands ETF, iShares MSCI Switzerland Capped ETF and iShares MSCI United Kingdom ETF, which were at the median of the investment advisory fee rates and overall expenses of the funds in their respective Lipper Group, and iShares MSCI Austria Capped ETF, which were within range of the median of the investment advisory fee rates and overall expenses of the funds in its Lipper Group.

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2013, and a comparison of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Boards, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Funds and their shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			89

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Costs of Services Provided to Funds and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability to BlackRock of the Funds based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Funds to provide for additional breakpoints, as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that the revisions of the Advisory Contract to provide additional breakpoints had been subject to further negotiation after receipt of management’s proposal, and that at the request of the Board, management had modified its initial proposal regarding adding additional breakpoints to the Funds. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rates reflects appropriate sharing of potential economies of scale with the Funds’ shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially similar investment objectives and strategies as the Funds, except for iShares MSCI Sweden ETF, iShares MSCI Switzerland Capped ETF, and iShares MSCI United Kingdom ETF. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to


90		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Based on the considerations described above, the Board determined that each Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that it is in the best interest of each Fund and its shareholders to approve the continuance of the Advisory Contract for the coming year.

II. iShares MSCI Emerging Markets Eastern Europe ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			91

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of the Fund in comparison with the same information for other exchange traded funds (including funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Lipper’s judgment, pure index institutional mutual funds, objectively selected by Lipper as comprising the Fund’s applicable peer group pursuant to Lipper’s proprietary ETF methodology (the “Lipper Group”). The Board noted that, prior to 2014, Lipper had used a different methodology to determine the Fund’s Lipper group, which included mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g. actively managed funds and funds sponsored by “at cost” service providers), as applicable. The Board further noted that, after consideration by the 15(c) Committee, the Board determined to use instead Lipper’s proprietary ETF methodology to determine the Fund’s Lipper Group. This determination was based on, among other considerations, the increased number and types of ETFs available for comparative purposes than was the case in prior years. The Board was provided with a detailed description of Lipper’s proprietary ETF methodology used by Lipper to determine the applicable Lipper Group and to prepare this information. At the Board’s request, Lipper provided, and the Board considered, information on the impact to the iShares funds’ comparative fee rankings that were attributable to the change from a pure index group methodology to Lipper’s proprietary ETF methodology. The Board further noted that due to the limitations in providing comparable funds in the Lipper Group, the statistical information provided in Lipper’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of the Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2013, and a comparison of the Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as the Fund, Lipper also provided, and the Board reviewed, a comparison of the Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Fund generally performed in line with its respective performance benchmark index over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Fund. In addition, the Board noted that the Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Fund’s performance in comparison with its relevant benchmark index. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Boards, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


92		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to the Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following receipt of a proposal from the Board and negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to reduce the advisory fee for certain breakpoint tiers, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rate reflects appropriate sharing of potential economies of scale with the Fund’s shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			93

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that it is in the best interest of the Fund and its shareholders to approve the continuance of the Advisory Contract for the coming year.


94		2014 iSHARES 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								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	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
MSCI Austria Capped	$	0.592935	$	—	$	0.062685	$	0.655620		90	%		—	%		10	%		100	%
MSCI Belgium Capped		0.519807		—		0.090481		0.610288		85			—			15			100
MSCI Italy Capped		0.341997		—		—		0.341997		100			—			—			100
MSCI Spain Capped		1.161520		—		—		1.161520		100			—			—			100
MSCI Sweden		1.213903		—		0.017240		1.231143		99			—			1			100
MSCI United Kingdom		1.256140		—		—		1.256140		100			—			—			100

Premium/Discount Information

The tables that follow present information about the differences between the daily market price on secondary markets for shares of a Fund and that Fund’s net asset value. Net asset value, or “NAV,” is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of each Fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of such Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of each Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.

The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five calendar years (or for each full calendar quarter completed after the inception date of such Fund if less than five years) through the date of the most recent quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.


SUPPLEMENTAL INFORMATION			95

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares MSCI Austria Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		2		0.14	%
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		4		0.29
Greater than 2.0% and Less than 2.5%		12		0.87
Greater than 1.5% and Less than 2.0%		16		1.16
Greater than 1.0% and Less than 1.5%		58		4.20
Greater than 0.5% and Less than 1.0%		197		14.26
Between 0.5% and –0.5%		814		58.91
Less than –0.5% and Greater than –1.0%		148		10.71
Less than –1.0% and Greater than –1.5%		65		4.70
Less than –1.5% and Greater than –2.0%		33		2.39
Less than –2.0% and Greater than –2.5%		17		1.23
Less than –2.5% and Greater than –3.0%		6		0.43
Less than –3.0% and Greater than –3.5%		3		0.22
Less than –3.5% and Greater than –4.0%		1		0.07
Less than –4.0% and Greater than –4.5%		2		0.14
Less than –4.5%		1		0.07

		1,382		100.00	%


96		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Belgium Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		4		0.29	%
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		4		0.29
Greater than 2.0% and Less than 2.5%		9		0.65
Greater than 1.5% and Less than 2.0%		22		1.59
Greater than 1.0% and Less than 1.5%		49		3.55
Greater than 0.5% and Less than 1.0%		176		12.74
Between 0.5% and –0.5%		896		64.84
Less than –0.5% and Greater than –1.0%		132		9.55
Less than –1.0% and Greater than –1.5%		60		4.34
Less than –1.5% and Greater than –2.0%		17		1.23
Less than –2.0% and Greater than –2.5%		7		0.51
Less than –2.5% and Greater than –3.0%		2		0.14
Less than –3.0% and Greater than –3.5%		2		0.14
Less than –3.5% and Greater than –4.0%		1		0.07

		1,382		100.00	%

iShares MSCI Emerging Markets Eastern Europe ETF

Period Covered: October 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		5		0.42	%
Greater than 3.0% and Less than 3.5%		2		0.17
Greater than 2.5% and Less than 3.0%		5		0.42
Greater than 2.0% and Less than 2.5%		6		0.50
Greater than 1.5% and Less than 2.0%		23		1.93
Greater than 1.0% and Less than 1.5%		64		5.36
Greater than 0.5% and Less than 1.0%		217		18.17
Between 0.5% and –0.5%		633		53.01
Less than –0.5% and Greater than –1.0%		121		10.13
Less than –1.0% and Greater than –1.5%		64		5.36
Less than –1.5% and Greater than –2.0%		31		2.60
Less than –2.0% and Greater than –2.5%		13		1.09
Less than –2.5% and Greater than –3.0%		3		0.25
Less than –3.0% and Greater than –3.5%		5		0.42
Less than –3.5% and Greater than –4.0%		2		0.17

		1,194		100.00	%


SUPPLEMENTAL INFORMATION			97

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI France ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		4		0.29	%
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		3		0.22
Greater than 2.0% and Less than 2.5%		10		0.72
Greater than 1.5% and Less than 2.0%		22		1.59
Greater than 1.0% and Less than 1.5%		63		4.56
Greater than 0.5% and Less than 1.0%		217		15.71
Between 0.5% and –0.5%		855		61.87
Less than –0.5% and Greater than –1.0%		120		8.68
Less than –1.0% and Greater than –1.5%		49		3.55
Less than –1.5% and Greater than –2.0%		22		1.59
Less than –2.0% and Greater than –2.5%		9		0.65
Less than –2.5% and Greater than –3.0%		5		0.36
Less than –3.0%		2		0.14

		1,382		100.00	%

iShares MSCI Italy Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		2		0.14	%
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		4		0.29
Greater than 2.0% and Less than 2.5%		10		0.72
Greater than 1.5% and Less than 2.0%		28		2.03
Greater than 1.0% and Less than 1.5%		88		6.37
Greater than 0.5% and Less than 1.0%		235		17.00
Between 0.5% and –0.5%		761		55.07
Less than –0.5% and Greater than –1.0%		140		10.13
Less than –1.0% and Greater than –1.5%		64		4.63
Less than –1.5% and Greater than –2.0%		22		1.59
Less than –2.0% and Greater than –2.5%		12		0.87
Less than –2.5% and Greater than –3.0%		7		0.51
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –3.5%		3		0.22

		1,382		100.00	%


98		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Netherlands ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		3		0.22	%
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		3		0.22
Greater than 2.0% and Less than 2.5%		9		0.65
Greater than 1.5% and Less than 2.0%		19		1.37
Greater than 1.0% and Less than 1.5%		52		3.76
Greater than 0.5% and Less than 1.0%		183		13.25
Between 0.5% and –0.5%		901		65.21
Less than –0.5% and Greater than –1.0%		124		8.97
Less than –1.0% and Greater than –1.5%		56		4.05
Less than –1.5% and Greater than –2.0%		17		1.23
Less than –2.0% and Greater than –2.5%		6		0.43
Less than –2.5% and Greater than –3.0%		6		0.43
Less than –3.0% and Greater than –3.5%		2		0.14

		1,382		100.00	%

iShares MSCI Spain Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		3		0.22	%
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		3		0.22
Greater than 2.0% and Less than 2.5%		16		1.16
Greater than 1.5% and Less than 2.0%		27		1.95
Greater than 1.0% and Less than 1.5%		70		5.07
Greater than 0.5% and Less than 1.0%		224		16.20
Between 0.5% and –0.5%		767		55.49
Less than –0.5% and Greater than –1.0%		148		10.71
Less than –1.0% and Greater than –1.5%		69		4.99
Less than –1.5% and Greater than –2.0%		28		2.03
Less than –2.0% and Greater than –2.5%		12		0.87
Less than –2.5% and Greater than –3.0%		8		0.58
Less than –3.0%		3		0.22

		1,382		100.00	%


SUPPLEMENTAL INFORMATION			99

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Sweden ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		2		0.14	%
Greater than 3.5% and Less than 4.0%		2		0.14
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		7		0.51
Greater than 2.0% and Less than 2.5%		11		0.80
Greater than 1.5% and Less than 2.0%		31		2.25
Greater than 1.0% and Less than 1.5%		78		5.64
Greater than 0.5% and Less than 1.0%		196		14.18
Between 0.5% and –0.5%		772		55.86
Less than –0.5% and Greater than –1.0%		157		11.36
Less than –1.0% and Greater than –1.5%		63		4.56
Less than –1.5% and Greater than –2.0%		28		2.03
Less than –2.0% and Greater than –2.5%		15		1.09
Less than –2.5% and Greater than –3.0%		8		0.58
Less than –3.0% and Greater than –3.5%		5		0.36
Less than –3.5% and Greater than –4.0%		1		0.07
Less than –4.0% and Greater than –4.5%		2		0.14

		1,382		100.00	%

iShares MSCI Switzerland Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		2		0.14	%
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		2		0.14
Greater than 2.0% and Less than 2.5%		3		0.22
Greater than 1.5% and Less than 2.0%		18		1.30
Greater than 1.0% and Less than 1.5%		45		3.26
Greater than 0.5% and Less than 1.0%		190		13.75
Between 0.5% and –0.5%		961		69.54
Less than –0.5% and Greater than –1.0%		89		6.44
Less than –1.0% and Greater than –1.5%		46		3.33
Less than –1.5% and Greater than –2.0%		13		0.94
Less than –2.0% and Greater than –2.5%		8		0.58
Less than –2.5% and Greater than –3.0%		3		0.22

		1,382		100.00	%


100		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI United Kingdom ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		1		0.07	%
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 3.5% and Less than 4.0%		2		0.14
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		6		0.43
Greater than 2.0% and Less than 2.5%		9		0.65
Greater than 1.5% and Less than 2.0%		35		2.53
Greater than 1.0% and Less than 1.5%		132		9.55
Greater than 0.5% and Less than 1.0%		435		31.48
Between 0.5% and –0.5%		646		46.75
Less than –0.5% and Greater than –1.0%		73		5.29
Less than –1.0% and Greater than –1.5%		24		1.74
Less than –1.5% and Greater than –2.0%		8		0.58
Less than –2.0% and Greater than –2.5%		4		0.29
Less than –2.5% and Greater than –3.0%		3		0.22
Less than –3.0% and Greater than –3.5%		2		0.14

		1,382		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (the “Directive”) imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the Directive if such managers market a fund to EU investors.

BFA has registered the iShares MSCI United Kingdom ETF (the “Fund”) for marketing to EU investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

BFA is required under the Directive to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.

Disclosures are provided in relation to both (a) the staff of BFA; and (b) staff who are senior management or who have the ability to materially affect the risk profile of the Fund.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Fund is included in the aggregate figures disclosed.


SUPPLEMENTAL INFORMATION			101

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

BlackRock has a clear and well defined pay-for-performance philosophy, and compensation programs which support that philosophy. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Compensation decisions for employees are made based on full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards. Bonus pools are reviewed by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Operational Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions.

Functions such as Finance, Operational Risk, Legal & Compliance, and Human Resources each have their own organizational structures which are independent of the business units. Functional bonus pools are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent compensation committee. No individual is involved in setting his or her own remuneration.

The figures disclosed are a sum of each individual’s portion of remuneration attributable to the Fund according to an objective apportionment methodology. Accordingly the figures are not representative of any individual’s actual remuneration or their remuneration structure.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI United Kingdom ETF in respect of BFA’s financial year ending December 31, 2013 was USD 835,709. This figure is comprised of fixed remuneration of USD 328,597 and variable remuneration of USD 507,112. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI United Kingdom ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 134,263.


102		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information

iSHARES^®, INC.

The Board of Directors has responsibility for the overall management and operations of the Company, including general supervision of the duties performed by BFA and other service providers. Each Director serves until he or she resigns, is removed, dies, retires or becomes incapacitated. The President, Chief Compliance Officer, Treasurer and Secretary shall each hold office until their successors are chosen and qualify, and all other officers shall hold office until he or she resigns or is removed. Directors who are not “interested persons” (as defined in the 1940 Act) of the Company are referred to as independent directors (“Independent Directors”).

The registered investment companies advised by BFA or its affiliates are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Director also serves as a Trustee of iShares Trust, a Director of iShares MSCI Russia Capped ETF, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees a total of 312 funds (as of August 31, 2014) within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito and Mark Wiedman, the address of each Director and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito and Mr. Wiedman is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52^nd Street, New York, NY 10055. The Board has designated Robert H. Silver as its Independent Chairman. Additional information about the Funds’ Directors and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

Interested Directors

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc.

Mark Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.


DIRECTOR AND OFFICER INFORMATION			103

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert H. Silver (59)	Director (since 2007); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Independent Chairman of iShares, Trust, iShares MSCI Russia Capped ETF, Inc. and iShares U.S. ETF Trust (since 2012).
Cecilia H. Herbert (65)	Director (since 2005); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Forward Funds (34 portfolios) (since 2009).

Charles A. Hurty (70)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (59)	Director (since 2005); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).


104		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
John E. Martinez (53)	Director (since 2003); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).

George G.C. Parker (75)	Director (since 2002).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).

Madhav V. Rajan (50)	Director (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).


DIRECTOR AND OFFICER INFORMATION			105

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (54)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (45)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2007).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (51)	Executive Vice President (since 2007).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2007).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


106		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

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. BlackRock is not 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 daily and monthly basis on the Funds’ website.

iS-AR-82-0814

LOGO

AUGUST 31, 2014


2014 ANNUAL REPORT

iShares, Inc.

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iShares MSCI Australia ETF | EWA | NYSE Arca

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iShares MSCI Hong Kong ETF | EWH | NYSE Arca

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iShares MSCI Japan Small-Cap ETF | SCJ | NYSE Arca

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iShares MSCI Malaysia ETF | EWM | NYSE Arca

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iShares MSCI Pacific ex Japan ETF | EPP | NYSE Arca

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iShares MSCI Singapore ETF | EWS | NYSE Arca

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iShares MSCI South Korea Capped ETF | EWY | NYSE Arca

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iShares MSCI Taiwan ETF | EWT | NYSE Arca

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iShares MSCI Thailand Capped ETF | THD | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			24
Shareholder Expenses			24
Schedules of Investments			25
iShares MSCI Australia ETF			25
iShares MSCI Hong Kong ETF			27
iShares MSCI Japan Small-Cap ETF			29
iShares MSCI Malaysia ETF			40
iShares MSCI Pacific ex Japan ETF			42
iShares MSCI Singapore ETF			45
iShares MSCI South Korea Capped ETF			47
iShares MSCI Taiwan ETF			50
iShares MSCI Thailand Capped ETF			53
Financial Statements			57
Financial Highlights			68
Notes to Financial Statements			77
Report of Independent Registered Public Accounting Firm			91
Tax Information			92
Board Review and Approval of Investment Advisory Contract			93
Supplemental Information			103
Director and Officer Information			114

Management’s Discussion of Fund Performance

iSHARES^®, INC.

INTERNATIONAL MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI AUSTRALIA ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.76%		20.44%		20.25%		19.76%		20.44%		20.25%
5 Years		10.96%		10.97%		11.43%		68.20%		68.31%		71.82%
10 Years		12.27%		12.26%		12.24%		218.11%		218.01%		217.33%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,108.60	$	2.55	$	1,000.00	$	1,022.80	$	2.45		0.48%


6		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI AUSTRALIA ETF

The iShares MSCI Australia ETF (the “Fund”) seeks to track the investment results of an index composed of Australian equities, as represented by the MSCI Australia Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 19.76%, net of fees, while the total return for the Index was 20.25%.

The Index posted strong returns for the reporting period as investors set aside concerns about a slowdown in China’s infrastructure spending.

Despite a cooling of the economy in China, which is Australia’s largest trading partner, Australia’s economy expanded in the second quarter of 2014, as the country reached its 23^rd consecutive year of growth. It was one of the few countries in the world that didn’t contract during the global financial crisis of 2008-2009. GDP in the second quarter of 2014 rose 3.1% versus the same period in 2013.

Although Australia’s economy advanced in the second quarter, it did so at a slower rate than earlier quarters due to a downturn in mining, falling commodity prices and a strengthening Australian dollar. The country’s currency continued to be relatively strong against the U.S. dollar, spurred by a resource investment boom and near-zero interest rates in the United States. Australia’s central bank left short-term interest rates at a record low 2.5% throughout the duration of the reporting period, reflecting concerns that the mining investment boom had cooled towards the end of the reporting period along with China’s infrastructure spending.

The financials sector, which comprised about half of the Index on average, posted the strongest contribution for the reporting period. Banks particularly enjoyed surging profits as the level of bad loans to corporations declined. The second largest sector, materials, produced solid results, helped by a buoyant economy. The industrials sector also generated notable gains during the reporting period. The consumer staples sector lagged on a relative basis. Overall, all sectors produced positive returns during the reporting period.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	51.44	%
Materials	17.37
Consumer Staples	9.01
Energy	6.00
Industrials	5.70
Health Care	4.51
Telecommunication Services	2.20
Consumer Discretionary	1.72
Utilities	1.56
Information Technology	0.49

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Commonwealth Bank of Australia	11.21	%
BHP Billiton Ltd.	10.01
Westpac Banking Corp.	9.26
Australia and New Zealand Banking Group Ltd.	7.80
National Australia Bank Ltd.	7.04
Wesfarmers Ltd.	4.21
Woolworths Ltd.	3.87
CSL Ltd.	3.01
Woodside Petroleum Ltd.	2.69
Rio Tinto Ltd.	2.32

TOTAL	61.42	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI HONG KONG ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.87%		20.25%		20.36%		19.87%		20.25%		20.36%
5 Years		12.12%		12.07%		12.70%		77.22%		76.82%		81.82%
10 Years		10.51%		10.45%		11.09%		171.53%		170.28%		186.17%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,111.60	$	2.55	$	1,000.00	$	1,022.80	$	2.45		0.48%


8		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI HONG KONG ETF

The iShares MSCI Hong Kong ETF (the “Fund”) seeks to track the investment results of an index composed of Hong Kong equities, as represented by the MSCI Hong Kong Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 19.87%, net of fees, while the total return for the Index was 20.36%.

Hong Kong stocks, as represented by the Index, posted a strong return during the reporting period, despite a sluggish Hong Kong economy. During the second quarter of 2014, GDP grew just 1.8% compared to the same period in 2013 — and was down 0.1% from the first quarter of 2014. However, since many companies in the Index have significant operations in China, market performance is also closely linked to China’s overall economic environment. China reported growth of 7.5% in the second quarter of 2014 compared to the same period in 2013, which was also indicative of the overall growth rate throughout the reporting period.

Hong Kong is a key financial center in Asia, with significant exposure to real estate investment, development and management companies. Hong Kong property firms continued to benefit from low interest rates and significant investment from China during the reporting period. Bank stocks benefited from liberalization measures regarding banking and trading services between China and Hong Kong. In general, since Hong Kong was transferred from British control to Chinese control in 1997, the Chinese and Hong Kong governments have strengthened business ties and established free trade agreements covering a broad range of goods and services.

In terms of sector performance for the reporting period, the financials, consumer discretionary and industrials sectors were the largest contributors to Index returns. The financials sector was the largest sector weighting in the Index by far, comprising over 60% of the Index on average during the reporting period. The information technology, telecommunication services and utilities sectors were the smallest contributors to Index performance.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	61.31	%
Consumer Discretionary	15.47
Utilities	11.32
Industrials	9.89
Telecommunication Services	1.37
Information Technology	0.64

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


AIA Group Ltd.	16.12	%
Hutchison Whampoa Ltd.	7.17
Cheung Kong (Holdings) Ltd.	6.70
Hong Kong Exchanges and Clearing Ltd.	6.19
Sun Hung Kai Properties Ltd.	5.86
Galaxy Entertainment Group Ltd.	4.18
CLP Holdings Ltd.	3.89
Sands China Ltd.	3.83
Hong Kong and China Gas Co. Ltd. (The)	3.47
Link REIT (The)	3.27

TOTAL	60.68	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI JAPAN SMALL-CAP ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.94%		17.49%		17.63%		16.94%		17.49%		17.63%
5 Years		7.39%		7.46%		7.81%		42.86%		43.33%		45.66%
Since Inception		4.32%		4.27%		4.70%		32.74%		32.31%		35.99%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 12/20/07. The first day of secondary market trading was 12/21/07.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,084.10	$	2.52	$	1,000.00	$	1,022.80	$	2.45		0.48%


10		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

The iShares MSCI Japan Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Japanese equities, as represented by the MSCI Japan Small Cap Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 16.94%, net of fees, while the total return for the Index was 17.63%.

Japanese small-capitalization equities, as represented by the Index, achieved solid results for the reporting period and performed in line with broad international equity indices, despite volatility along the way.

Japanese small-capitalization stocks delivered gains early in the reporting period, helped by government initiatives aimed at revitalizing the country’s stagnant economy. During the remainder of the reporting period, conflicting economic data revealed uneven economic growth levels, and an increase in the consumption tax rate curbed consumer spending. Although these events created an uneven market environment that persisted throughout the reporting period, equities finished the reporting period with solid gains overall.

Within the Index, the industrials sector was the largest contributing sector to positive performance. Industrials stocks as a group achieved gains early in the reporting period as economic conditions strengthened, but lagged in the final months of the reporting period, as the higher consumption tax placed a crimp on consumer demand. The financials and information technology sectors were also meaningful contributors to Index returns for the reporting period. Consumer discretionary and consumer staples stocks collectively contributed to Index returns. Consumer spending spiked to a record high in the first quarter of 2014 in anticipation of the consumption tax increase in April 2014, and then dropped sharply in the second quarter of 2014. The utilities, energy, and telecommunication services sectors made the slightest contributions to Index gains during the reporting period.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Industrials	25.15	%
Financials	19.76
Consumer Discretionary	17.51
Information Technology	10.83
Materials	10.46
Consumer Staples	9.13
Health Care	5.68
Energy	0.80
Utilities	0.53
Telecommunication Services	0.15

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Minebea Co. Ltd.	0.66	%
Advance Residence Investment Corp.	0.57
Alps Electric Co. Ltd.	0.51
Ebara Corp.	0.50
Mixi Inc.	0.50
Misumi Group Inc.	0.50
Dowa Holdings Co. Ltd.	0.48
ORIX JREIT Inc.	0.47
Frontier Real Estate Investment Corp.	0.47
Nissan Chemical Industries Ltd.	0.45

TOTAL	5.11	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI MALAYSIA ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		14.17%		14.84%		14.37%		14.17%		14.84%		14.37%
5 Years		13.83%		13.98%		14.38%		91.11%		92.38%		95.74%
10 Years		13.01%		13.15%		13.57%		239.79%		243.94%		257.05%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,064.10	$	2.50	$	1,000.00	$	1,022.80	$	2.45		0.48%


12		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI MALAYSIA ETF

The iShares MSCI Malaysia ETF (the “Fund”) seeks to track the investment results of an index composed of Malaysian equities, as represented by the MSCI Malaysia Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 14.17%, net of fees, while the total return for the Index was 14.37%.

The Malaysian equity market posted a solid, double-digit return during the reporting period, boosted by better than expected economic growth in the second quarter of 2014. Malaysia’s GDP rose 6.4% in the second quarter of 2014 from the same period a year ago, beating consensus estimates. However, a major credit rating agency recently cut Malaysia’s credit outlook to negative because of rising budget deficits. In response, the government announced that it will institute a new goods and services tax and cut fuel subsidies.

Exports of electronics and natural gas to the U.S. and Japan surged during the reporting period. Malaysia is the world’s largest exporter of palm oil. Demand from China is a key driver for palm oil prices, and it has remained strong.

Malaysia’s strong economic performance has allowed its central bank to recently raise short-term interest rates from 3% to 3.25% to combat inflation. The government also announced plans to introduce a consumption tax of 6% and gradually reduce its subsidy program that covers essential goods ranging from gasoline to cooking oil.

The Index’s largest sector allocation was financials, which generated modest returns during the reporting period. Banks generally benefited from regional mergers and the country’s strong economy. The utilities, telecommunication services, and industrials sectors were large contributors to Index performance. Lagging sectors included materials and energy.

PORTFOLIO ALLOCATION As of 8/31/14


Sector	Percentage of Total Investments*
Financials		33.76	%
Industrials		12.73
Telecommunication Services		11.86
Utilities		11.67
Consumer Staples		9.52
Consumer Discretionary		9.42
Energy		4.52
Materials		4.20
Health Care		2.32

TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/14


Security	Percentage of Total Investments*
Public Bank Bhd		9.83	%
Malayan Banking Bhd		8.78
Tenaga Nasional Bhd		7.17
CIMB Group Holdings Bhd		7.17
Sime Darby Bhd		5.24
DiGi.Com Bhd		4.13
Genting Bhd		4.04
Axiata Group Bhd		3.63
Petronas Chemicals Group Bhd		3.40
Sapurakencana Petroleum Bhd		3.11

TOTAL		56.50	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI PACIFIC EX JAPAN ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.25%		19.81%		19.80%		19.25%		19.81%		19.80%
5 Years		11.18%		11.11%		11.66%		69.85%		69.31%		73.55%
10 Years		11.77%		11.73%		11.92%		204.21%		203.21%		208.30%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,108.40	$	2.60	$	1,000.00	$	1,022.70	$	2.50		0.49%


14		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI PACIFIC EX JAPAN ETF

The iShares MSCI Pacific ex Japan ETF (the “Fund”) seeks to track the investment results of an index composed of Pacific region developed market equities, excluding Japan, as represented by the MSCI Pacific ex Japan Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 19.25%, net of fees, while the total return for the Index was 19.80%.

The Index posted a strong double-digit return during the reporting period, led by a large positive exposure to Australian stocks.

Australia’s economy expanded by 3.1% in the second quarter of 2014 versus the same period in 2013, as the country reached its 23^rd consecutive year of growth. Banks enjoyed surging profits as the level of bad loans to corporations declined. The materials sector also produced solid results, helped by a buoyant economy.

Although Hong Kong’s economy was sluggish, its stock market performed well because of its links to China, which reported growth in line with expectations of 7.5% in the second quarter of 2014 compared to the same period in 2013. Hong Kong is a key financial center in Asia, with significant exposure to real estate investment, development and management companies. Hong Kong property firms continued to benefit from low interest rates and significant investment from China.

Singapore, the third largest country weighting in the Index, was the weakest performer for the reporting period, as the government restricted lending to cool an overheated real estate market. Singapore’s economy stalled during the second quarter of 2014, as GDP grew just 2.4% compared to the same period in 2013, primarily due to a decline in semiconductor production.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector	Percentage of Total Investments*
Financials		53.19	%
Materials		11.42
Industrials		8.61
Consumer Staples		6.31
Consumer Discretionary		5.65
Energy		3.83
Utilities		3.83
Telecommunication Services		3.57
Health Care		3.04
Information Technology		0.55

TOTAL		100.00	%

COUNTRY ALLOCATION

As of 8/31/14


Country	Percentage of Total Investments*
Australia		63.83	%
Hong Kong		23.49
Singapore		11.61
New Zealand		1.07

TOTAL		100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

Management’s Discussion of Fund Performance

iSHARES^® MSCI SINGAPORE ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.65%		16.48%		16.00%		15.65%		16.48%		16.00%
5 Years		10.48%		10.47%		10.84%		64.62%		64.52%		67.29%
10 Years		12.23%		12.16%		12.32%		216.98%		215.11%		219.67%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,113.80	$	2.56	$	1,000.00	$	1,022.80	$	2.45		0.48%


16		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SINGAPORE ETF

The iShares MSCI Singapore ETF (the “Fund”) seeks to track the investment results of an index composed of Singaporean equities, as represented by the MSCI Singapore Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 15.65%, net of fees, while the total return for the Index was 16.00%.

The Index produced double-digit gains during the reporting period and slightly underperformed the broad international equity market.

During early 2014, the Index declined temporarily after the Fed announced plans to reduce stimulus measures. Such a move would likely cause interest rates to rise, and make investors more cautious about investing in emerging markets. However, as the reporting period progressed, rising expectations that the Fed would be slower to raise rates than originally had been anticipated helped to refuel investors’ appetite for risk, boosting returns for emerging markets equities in the second half of the reporting period. Singapore’s economy stalled during the second quarter of 2014, as GDP grew just 2.4% versus the year ago period, primarily due to a decline in semiconductor production. GDP growth during the quarter was also stagnant compared to the first quarter of 2014.

The Index is heavily weighted towards financials, which comprised more than 53% of the Index on average during the reporting period. As a result, the financials sector contributed the most to Index returns during the reporting period, followed by the industrials and telecommunication services sectors. Consumer discretionary and consumer staples stocks produced the least contribution to Index performance. All sectors produced positive returns.

Within the financials sector, a significant portion of companies are real estate firms. The government has put in place moves to cool the real estate market, which had risen by 60% since the global financial crisis due to low interest rates. Regulators tightened lending rules by increasing processing times for home loans, thus slowing housing sales. The government also sold land to boost housing supply. The moves appeared to be effective, as price declines were reported in the second quarter of 2014 across Singapore’s prime and suburban residential areas.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector	Percentage of Total Investments*
Financials		53.55	%
Industrials		20.09
Telecommunication Services		13.53
Consumer Discretionary		8.51
Consumer Staples		4.32

TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security	Percentage of Total Investments*
DBS Group Holdings Ltd.		12.62	%
Singapore Telecommunications Ltd.		12.56
United Overseas Bank Ltd.		11.55
Oversea-Chinese Banking Corp. Ltd.		10.57
Keppel Corp. Ltd.		4.75
Global Logistic Properties Ltd.		3.51
CapitaLand Ltd.		3.31
Genting Singapore PLC		3.01
Singapore Press Holdings Ltd.		2.86
Jardine Cycle & Carriage Ltd.		2.64

TOTAL		67.38	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			17

Management’s Discussion of Fund Performance

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.83%		17.72%		17.54%		16.83%		17.72%		17.54%
5 Years		10.56%		10.75%		11.28%		65.22%		66.61%		70.66%
10 Years		11.64%		11.62%		12.32%		200.62%		200.09%		219.50%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Korea Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Korea 25/50 Index.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,079.80	$	3.25	$	1,000.00	$	1,022.10	$	3.16		0.62%


18		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

The iShares MSCI South Korea Capped ETF (the “Fund”) seeks to track the investment results of an index composed of South Korean equities, as represented by the MSCI Korea 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 16.83%, net of fees, while the total return for the Index was 17.54%.

The Index produced solid gains during the reporting period, performing in line with the broad international equity market.

The South Korean economy grew just 0.5% during the second quarter of 2014 versus the second quarter of 2013. To combat slow growth, the government announced a $40 billion stimulus package which included a relaxation of limits on mortgage loans in an effort to boost a weak real estate market.

A ferry accident in April 2014 which killed more than 300 people took a heavy toll on travel spending, contributing to an overall decline in consumer spending in the second quarter of 2014. Additionally, a sharp rise in the Korean won has hurt exports as did slowing economic growth in China, Korea’s primary export market. South Korean exports to China fell 7% in July 2014 as compared to July 2013, the third straight monthly drop. Meanwhile, South Korea’s household debt rose to almost $1 trillion, doubling over the past decade, generating fears that the economy could spiral downward into negative growth and deflation.

Many South Korean firms have well-established, globally recognized brand names that may potentially benefit from recently signed free-trade agreements with the European Union and the U.S. In addition, the Japanese yen, which had been rapidly declining, stabilized during the reporting period, reducing the advantage to Japanese exporters of electronics and automobiles. However, high levels of Korean consumer debt have had a negative impact on domestic spending.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Information Technology	34.23	%
Consumer Discretionary	19.02
Financials	14.96
Industrials	11.78
Materials	8.68
Consumer Staples	6.03
Utilities	1.93
Energy	1.58
Telecommunication Services	1.15
Health Care	0.64

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Samsung Electronics Co. Ltd.	22.64	%
Hyundai Motor Co.	5.51
SK Hynix Inc.	3.91
POSCO	3.35
NAVER Corp.	3.30
Shinhan Financial Group Co. Ltd.	3.27
Hyundai Mobis Co. Ltd.	3.09
Kia Motors Corp.	2.49
KB Financial Group Inc.	2.35
LG Chem Ltd.	1.93

TOTAL	51.84	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			19

Management’s Discussion of Fund Performance

iSHARES^® MSCI TAIWAN ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.24%		24.76%		23.93%		23.24%		24.76%		23.93%
5 Years		11.06%		11.30%		11.56%		68.97%		70.77%		72.78%
10 Years		7.21%		7.38%		7.88%		100.68%		103.78%		113.54%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,172.50	$	3.40	$	1,000.00	$	1,022.10	$	3.16		0.62%


20		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI TAIWAN ETF

The iShares MSCI Taiwan ETF (the “Fund”) seeks to track the investment results of an index composed of Taiwanese equities, as represented by the MSCI Taiwan Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 23.24%, net of fees, while the total return for the Index was 23.93%.

Although performance was relatively modest during the first half of the reporting period, the Taiwanese stock market began to rise starting in early 2014. For the full reporting period, the Index posted a strong, double-digit return and outperformed the broad international equity market.

Taiwan’s economy performed well in recent months. During the second quarter of 2014, GDP rose 3.7% from the same period in 2013. A recovering U.S. economy and strong global demand for mobile devices formed a favorable backdrop for Taiwan’s export-reliant economy.

The current Taiwanese government is attempting to improve its economy by reducing tariffs on hundreds of products, as well as improving relations with China, with which it has had a long-term political conflict. During the reporting period, China and Taiwan worked towards stronger trade agreements, although such ties are considered controversial among a large segment of the Taiwanese population.

The Index is highly concentrated in stocks of information technology companies, primarily semiconductor and hardware manufacturers. Taiwan is the world’s largest supplier of contract computer chip manufacturing services. In addition, it is a major producer of LCD panels, DRAM computer memory, networking equipment and consumer electronics.

In terms of sectors, the top performers within the Index during the reporting period were information technology and financials. Laggards included the health care, telecommunication services, and energy sectors.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Information Technology	57.64	%
Financials	17.83
Materials	10.01
Telecommunication Services	4.27
Consumer Discretionary	3.96
Industrials	2.96
Consumer Staples	2.71
Energy	0.55
Health Care	0.07

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Taiwan Semiconductor Manufacturing Co. Ltd.	20.17	%
Hon Hai Precision Industry Co. Ltd.	8.40
MediaTek Inc.	4.63
Cathay Financial Holding Co. Ltd.	2.75
Delta Electronics Inc.	2.53
Chunghwa Telecom Co. Ltd.	2.30
Nan Ya Plastics Corp.	2.18
Fubon Financial Holding Co. Ltd.	2.16
Formosa Plastics Corp.	2.13
China Steel Corp.	2.03

TOTAL	49.28	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			21

Management’s Discussion of Fund Performance

iSHARES^® MSCI THAILAND CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		26.18%		27.96%		25.87%		26.18%		27.96%		25.87%
5 Years		20.77%		20.72%		21.17%		156.89%		156.34%		161.19%
Since Inception		11.26%		11.28%		11.63%		98.72%		98.96%		102.86%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 3/26/08. The first day of secondary market trading was 3/28/08.

Index performance through February 11, 2013 reflects the performance of the MSCI Thailand Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Thailand Investable Market Index 25/50.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,230.80	$	3.49	$	1,000.00	$	1,022.10	$	3.16		0.62%


22		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

The iShares MSCI Thailand Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Thai equities, as represented by the MSCI Thailand Investable Market Index 25/50 (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 26.18%, net of fees, while the total return for the Index was 25.87%.

Despite several obstacles, the Index posted strong returns during the reporting period and outperformed the broad international equity market.

Early in 2014, the Index declined along with other emerging markets after the Fed announced plans to reduce stimulus measures. Such a move would typically cause interest rates to rise, and make investors more cautious about investing in riskier assets. However, when U.S. interest rates remained low, investor appetite towards risk returned and emerging markets such as Thailand rebounded.

However, the reporting period was marked by political unrest. In May 2014, the Thai military seized power after months of street demonstrations led to the ouster of the former prime minister. As the conflict unfolded, businesses deferred new investments while awaiting clarity on government policy. Tourism was down sharply as well during the second quarter, as many countries advised citizens to avoid travel to Thailand.

Despite these setbacks, GDP expanded 0.4% in the second quarter of 2014 versus the same quarter in 2013. In addition, the new military government recently announced measures to revive the economy, including an approval for $75 billion in spending for infrastructure development for rail lines, airports, and seaports. Meanwhile, Thai consumer confidence rose to its highest level in nearly a year as the end of the reporting period approached

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	35.10	%
Energy	16.41
Materials	9.06
Consumer Staples	8.33
Telecommunication Services	8.23
Industrials	8.03
Consumer Discretionary	6.27
Health Care	3.51
Information Technology	2.95
Utilities	2.11

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Siam Commercial Bank PCL NVDR	7.67	%
PTT PCL NVDR	6.65
Kasikornbank PCL Foreign	6.37
PTT Exploration & Production PCL NVDR	5.48
Advanced Information Service PCL NVDR	5.25
CP All PCL NVDR	5.00
Kasikornbank PCL NVDR	3.56
Siam Cement (The) PCL Foreign	3.03
Bangkok Bank PCL NVDR	2.56
Airports of Thailand PCL NVDR	2.46

TOTAL	48.03	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			23

About Fund Performance

Shareholder Expenses


24		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2014


Security	Shares		Value
COMMON STOCKS — 98.91%

AIR FREIGHT & LOGISTICS — 0.34%
Toll Holdings Ltd.		1,253,782	$	7,000,792

				7,000,792
AIRLINES — 0.13%
Qantas Airways Ltd.^a		1,980,577		2,723,077

				2,723,077
BEVERAGES — 0.71%
Coca-Cola Amatil Ltd.		1,053,949		8,871,824
Treasury Wine Estates Ltd.		1,195,167		5,712,159

				14,583,983
BIOTECHNOLOGY — 2.97%
CSL Ltd.		881,362		60,893,820

				60,893,820
CAPITAL MARKETS — 1.42%
Macquarie Group Ltd.		531,883		29,002,502

				29,002,502
CHEMICALS — 1.07%
Incitec Pivot Ltd.		3,027,210		8,777,181
Orica Ltd.		682,627		13,088,447

				21,865,628
COMMERCIAL BANKS — 35.76%
Australia and New Zealand Banking Group Ltd.		5,050,141		157,903,108
Bank of Queensland Ltd.		664,524		7,818,836
Bendigo and Adelaide Bank Ltd.		798,539		9,298,573
Commonwealth Bank of Australia		2,983,778		226,941,894
National Australia Bank Ltd.		4,332,006		142,620,683
Westpac Banking Corp.		5,721,705		187,516,876

				732,099,970
COMMERCIAL SERVICES & SUPPLIES — 1.25%
Brambles Ltd.		2,876,343		25,557,306

				25,557,306
CONSTRUCTION & ENGINEERING — 0.19%
Leighton Holdings Ltd.		186,888		3,922,429

				3,922,429
CONSTRUCTION MATERIALS — 0.84%
Boral Ltd.		1,438,468		7,413,147
James Hardie Industries SE		819,491		9,818,477

				17,231,624
CONTAINERS & PACKAGING — 1.16%
Amcor Ltd.		2,220,710		23,719,676

				23,719,676


Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES — 0.61%
ASX Ltd.		356,281	$	12,492,774

				12,492,774
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.18%
Telstra Corp. Ltd.		8,014,820		41,679,199
TPG Telecom Ltd.		511,307		2,883,698

				44,562,897
ELECTRIC UTILITIES — 0.20%
AusNet Services		3,116,254		4,124,203

				4,124,203
ENERGY EQUIPMENT & SERVICES — 0.29%
WorleyParsons Ltd.		380,874		5,856,443

				5,856,443
FOOD & STAPLES RETAILING — 8.20%
Metcash Ltd.		1,634,844		4,296,684
Wesfarmers Ltd.		2,104,014		85,229,042
Woolworths Ltd.		2,314,140		78,265,227

				167,790,953
GAS UTILITIES — 0.54%
APA Group		1,538,065		11,148,776

				11,148,776
HEALTH CARE EQUIPMENT & SUPPLIES — 0.35%
Cochlear Ltd.		105,014		7,125,829

				7,125,829
HEALTH CARE PROVIDERS & SERVICES — 1.14%
Ramsay Health Care Ltd.		241,734		11,747,830
Sonic Healthcare Ltd.		700,748		11,554,868

				23,302,698
HOTELS, RESTAURANTS & LEISURE — 1.33%
Crown Resorts Ltd.		670,246		9,904,718
Flight Centre Travel Group Ltd.		101,793		4,465,207
Tabcorp Holdings Ltd.		1,404,095		4,714,566
Tatts Group Ltd.		2,639,871		8,197,314

				27,281,805
INSURANCE — 5.60%
AMP Ltd.		5,443,243		29,935,454
Insurance Australia Group Ltd.		4,309,373		26,077,693
QBE Insurance Group Ltd.		2,469,661		26,609,739
Suncorp Group Ltd.		2,367,783		31,956,487

				114,579,373
IT SERVICES — 0.49%
Computershare Ltd.		870,062		10,025,631

				10,025,631


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2014


Security	Shares		Value
MEDIA — 0.21%
REA Group Ltd.		96,960	$	4,345,705

				4,345,705
METALS & MINING — 14.11%
Alumina Ltd.^a		4,647,968		6,738,227
BHP Billiton Ltd.		5,910,603		202,718,554
Fortescue Metals Group Ltd.		2,865,223		11,174,942
Iluka Resources Ltd.		770,553		6,414,212
Newcrest Mining Ltd.^a		1,410,641		14,935,292
Rio Tinto Ltd.		801,944		46,976,132

				288,957,359
MULTI-UTILITIES — 0.80%
AGL Energy Ltd.		1,031,073		13,597,508
AGL Energy Ltd. New^a		205,016		2,703,695

				16,301,203
MULTILINE RETAIL — 0.16%
Harvey Norman Holdings Ltd.		977,512		3,245,647

				3,245,647
OIL, GAS & CONSUMABLE FUELS — 5.65%
Caltex Australia Ltd.		248,446		6,620,263
Origin Energy Ltd.		2,031,083		29,501,896
Santos Ltd.		1,798,384		24,944,476
Woodside Petroleum Ltd.		1,364,648		54,500,353

				115,566,988
PROFESSIONAL SERVICES — 0.72%
ALS Ltd.		725,558		5,048,890
Seek Ltd.		595,103		9,723,796

				14,772,686
REAL ESTATE INVESTMENT TRUSTS (REITS) — 6.83%
BGP Holdings PLC^a,b		18,888,372		249
CFS Retail Property Trust Group		3,887,967		7,818,291
Dexus Property Group		9,998,770		11,268,975
Federation Centres		2,627,345		6,536,564
Goodman Group		3,179,529		16,593,874
GPT Group (The)		3,101,821		11,575,518
Mirvac Group		6,795,049		11,662,173
Scentre Group^a		9,798,371		31,433,938
Stockland Corp. Ltd.		4,282,431		17,022,765
Westfield Corp.		3,633,172		25,893,558

				139,805,905
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.66%
Lend Lease Group		1,009,614		13,503,371

				13,503,371


Security	Shares		Value
ROAD & RAIL — 1.37%
Asciano Ltd.		1,795,041	$	10,543,500
Aurizon Holdings Ltd.		3,933,330		17,548,078

				28,091,578
TRANSPORTATION INFRASTRUCTURE — 1.63%
Sydney Airport		1,998,509		8,280,578
Transurban Group		3,315,492		24,993,888

				33,274,466

TOTAL COMMON STOCKS
(Cost: $1,870,287,468)				2,024,757,097

SHORT-TERM INVESTMENTS — 0.01%

MONEY MARKET FUNDS — 0.01%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		343,395		343,395

				343,395

TOTAL SHORT-TERM INVESTMENTS
(Cost: $343,395)				343,395

TOTAL INVESTMENTS IN SECURITIES — 98.92%
(Cost: $1,870,630,863)				2,025,100,492
Other Assets, Less Liabilities — 1.08%				22,012,092

NET ASSETS — 100.00%			$	2,047,112,584

^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.

Financial futures contracts purchased as of August 31, 2014 were as follows:


Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Unrealized Appreciation (Depreciation)
	151	ASX SPI 200 Index (Sept. 2014)	Sydney Futures	$	19,825,197	$	452,812

See notes to financial statements.


26		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI HONG KONG ETF

August 31, 2014


Security	Shares		Value
COMMON STOCKS — 99.42%

AIRLINES — 0.57%
Cathay Pacific Airways Ltd.		9,810,000	$	18,227,260

				18,227,260
COMMERCIAL BANKS — 7.61%
Bank of East Asia Ltd. (The)		10,202,410		43,441,679
BOC Hong Kong (Holdings) Ltd.		29,430,000		98,920,860
Hang Seng Bank Ltd.^a		6,082,200		102,728,332

				245,090,871
DIVERSIFIED FINANCIAL SERVICES — 6.87%
First Pacific Co. Ltd.		19,620,999		22,861,186
Hong Kong Exchanges and Clearing Ltd.		8,632,800		198,383,474

				221,244,660
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.37%
HKT Trust and HKT Ltd.		20,302,500		24,048,173
PCCW Ltd.		31,392,169		19,969,084

				44,017,257
ELECTRIC UTILITIES — 7.80%
Cheung Kong Infrastructure Holdings Ltd.		3,924,000		28,328,200
CLP Holdings Ltd.^a		14,715,200		124,554,637
Power Assets Holdings Ltd.		10,791,000		98,300,627

				251,183,464
GAS UTILITIES — 3.45%
Hong Kong and China Gas Co. Ltd. (The)		49,050,788		111,264,021

				111,264,021
HOTELS, RESTAURANTS & LEISURE — 11.98%
Galaxy Entertainment Group Ltd.		17,759,000		133,820,068
MGM China Holdings Ltd.		7,063,488		23,377,414
Sands China Ltd.		18,835,200		122,730,218
Shangri-La Asia Ltd.		11,772,000		18,227,260
SJM Holdings Ltd.^a		15,696,000		39,492,397
Wynn Macau Ltd.		12,556,800		48,119,967

				385,767,324
HOUSEHOLD DURABLES — 1.02%
Techtronic Industries Co. Ltd.		10,791,147		32,929,766

				32,929,766
INDUSTRIAL CONGLOMERATES — 7.82%
Hutchison Whampoa Ltd.		17,658,800		229,673,883
NWS Holdings Ltd.		11,772,000		22,237,257

				251,911,140


Security	Shares		Value
INSURANCE — 16.02%
AIA Group Ltd.		94,568,400	$	516,150,438

				516,150,438
REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.25%
Link REIT (The)		17,658,000		104,806,746

				104,806,746
REAL ESTATE MANAGEMENT & DEVELOPMENT — 27.20%
Cheung Kong (Holdings) Ltd.		11,772,000		214,625,988
Hang Lung Properties Ltd.		17,658,000		58,327,232
Henderson Land Development Co. Ltd.		8,335,601		55,229,010
Hysan Development Co. Ltd.		3,924,000		19,239,886
Kerry Properties Ltd.		4,905,000		18,227,260
New World Development Co. Ltd.		41,202,066		52,099,669
Sino Land Co. Ltd.^a		23,544,000		41,618,911
Sun Hung Kai Properties Ltd.		12,357,000		187,503,880
Swire Pacific Ltd. Class A		4,905,000		66,010,529
Swire Properties Ltd.		9,025,200		30,277,504
Wharf (Holdings) Ltd. (The)		11,772,150		92,048,836
Wheelock and Co. Ltd.		7,848,357		41,114,468

				876,323,173
ROAD & RAIL — 1.45%
MTR Corp. Ltd.		11,772,083		46,707,683

				46,707,683
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.63%
ASM Pacific Technology Ltd.^a		1,962,000		20,417,063

				20,417,063
TEXTILES, APPAREL & LUXURY GOODS — 2.38%
Li & Fung Ltd.^a		47,088,000		58,448,747
Yue Yuen Industrial (Holdings) Ltd.^a		5,886,000		18,265,234

				76,713,981

TOTAL COMMON STOCKS
(Cost: $3,006,192,108)				3,202,754,847

SHORT-TERM INVESTMENTS — 1.27%

MONEY MARKET FUNDS — 1.27%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^b,c,d		24,877,555		24,877,555


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI HONG KONG ETF

August 31, 2014


Security	Shares		Value
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^b,c,d		1,566,110	$	1,566,110
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,c		14,365,446		14,365,446

				40,809,111

TOTAL SHORT-TERM INVESTMENTS
(Cost: $40,809,111)				40,809,111

TOTAL INVESTMENTS IN SECURITIES — 100.69%
(Cost: $3,047,001,219)				3,243,563,958
Other Assets, Less Liabilities — (0.69)%				(22,251,740	)

NET ASSETS — 100.00%			$	3,221,312,218

^a	All or a portion of this security represents a security on loan. See Note 1.

^b	Affiliated issuer. See Note 2.

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

^d	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

Financial futures contracts purchased as of August 31, 2014 were as follows:


Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Unrealized Appreciation (Depreciation)
	112	Hang Seng Index (Sept. 2014)	Hong Kong Futures	$	17,835,113	$	(276,020)

See notes to financial statements.


28		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.73%

AEROSPACE & DEFENSE — 0.03%
Jamco Corp.		3,000	$	52,616

				52,616
AIR FREIGHT & LOGISTICS — 0.28%
Kintetsu World Express Inc.		3,000		119,411
Konoike Transport Co. Ltd.		3,000		64,398
Mitsui-Soko Co. Ltd.		30,000		125,620
Shibusawa Warehouse Co. Ltd. (The)		30,000		101,940
Yusen Logistics Co. Ltd.		6,000		66,939

				478,308
AIRLINES — 0.02%
Skymark Airlines Inc.^a,b		15,000		29,167

				29,167
AUTO COMPONENTS — 3.93%
Aisan Industry Co. Ltd.		9,000		74,159
Akebono Brake Industry Co. Ltd.		24,000		106,733
Calsonic Kansei Corp.		60,000		346,537
Eagle Industry Co. Ltd.		6,000		124,002
Exedy Corp.		9,000		249,333
FCC Co. Ltd.		9,000		155,075
Futaba Industrial Co. Ltd.		18,000		100,496
G-Tekt Corp.		6,000		62,839
Kayaba Industry Co. Ltd.		60,000		283,005
Keihin Corp.		12,000		169,688
Mitsuba Corp.		12,000		198,450
Musashi Seimitsu Industry Co. Ltd.		6,000		135,785
Nifco Inc.		15,000		507,532
Nippon Seiki Co. Ltd.		8,000		178,505
Nissan Shatai Co. Ltd.		27,000		431,179
Nissin Kogyo Co. Ltd.		12,000		216,932
Pacific Industrial Co. Ltd.		12,000		90,100
Piolax Inc.		3,000		145,546
Press Kogyo Co. Ltd.		30,000		120,422
Riken Corp.		30,000		131,106
Sanden Corp.		30,000		182,509
Showa Corp.		15,000		168,504
Tachi-S Co. Ltd.		6,000		90,793
Taiho Kogyo Co. Ltd.		6,000		66,824
Takata Corp.		9,000		178,813
Tokai Rika Co. Ltd.		15,000		298,166
Tokai Rubber Industries Ltd.		12,000		114,126
Topre Corp.		12,000		183,549
Toyo Tire & Rubber Co. Ltd.		30,000		490,639


Security	Shares		Value

Toyota Boshoku Corp.		21,000	$	230,043
TPR Co. Ltd.		6,000		157,386
TS Tech Co. Ltd.		15,000		402,560
Unipres Corp.		12,000		237,378
Yorozu Corp.		3,000		48,804

				6,677,518
BEVERAGES — 1.33%
Coca-Cola East Japan Co. Ltd.		24,066		602,548
Coca-Cola West Co. Ltd.		21,000		327,275
ITO EN Ltd.		18,000		419,137
Sapporo Holdings Ltd.		90,000		385,522
Takara Holdings Inc.		60,000		519,806

				2,254,288
BIOTECHNOLOGY — 0.58%
3-D Matrix Ltd.^a,b		6,000		213,120
GNI Group Ltd.^a,b		30,000		103,095
Japan Tissue Engineering Co. Ltd.^b		6,000		98,763
NanoCarrier Co. Ltd.^b		12,000		150,744
PeptiDream Inc.^a,b		1,200		123,598
ReproCELL Inc.^b		9,000		69,134
Takara Bio Inc.^a		15,000		219,185

				977,639
BUILDING PRODUCTS — 1.78%
Aica Kogyo Co. Ltd.		15,000		358,955
Central Glass Co. Ltd.		60,000		223,516
Maeda Kosen Co. Ltd.^a		6,000		75,776
Nichias Corp.		30,000		200,414
Nichiha Corp.		6,000		61,568
Nippon Sheet Glass Co. Ltd.^b		270,000		322,280
Nitto Boseki Co. Ltd.		60,000		248,929
Noritz Corp.		9,000		154,989
Okabe Co. Ltd.		12,000		143,813
Sankyo Tateyama Inc.		9,300		179,939
Sanwa Holdings Corp.		60,000		439,525
Sekisui Jushi Corp.		9,000		123,627
Takara Standard Co. Ltd.		30,000		265,678
Takasago Thermal Engineering Co. Ltd.		18,000		227,328

				3,026,337
CAPITAL MARKETS — 1.61%
Ichigo Group Holdings Co. Ltd.		57,000		164,056
Ichiyoshi Securities Co. Ltd.		12,000		144,968
IwaiCosmo Holdings Inc.		6,000		58,911
JAFCO Co. Ltd.		9,000		363,431


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

kabu.com Securities Co. Ltd.		27,000	$	127,612
Kyokuto Securities Co. Ltd.		6,000		102,748
Marusan Securities Co. Ltd.		18,000		134,803
Matsui Securities Co. Ltd.		33,000		313,847
Mito Securities Co. Ltd.		18,000		68,961
Monex Group Inc.		57,000		179,420
Okasan Securities Group Inc.		60,000		457,429
Sawada Holdings Co. Ltd.		6,000		42,797
SPARX Group Co. Ltd.		30,000		63,532
Tokai Tokyo Financial Holdings Inc.		69,000		504,789

				2,727,304
CHEMICALS — 6.61%
Achilles Corp.		60,000		83,746
Adeka Corp.		27,000		360,745
C. Uyemura & Co. Ltd.		3,000		164,605
Chugoku Marine Paints Ltd.		30,000		224,960
Dainichiseika Color & Chemicals Manufacturing Co. Ltd.		30,000		153,343
Daiso Co. Ltd.		30,000		98,185
Denki Kagaku Kogyo K.K.		120,000		406,603
DIC Corp.		240,000		547,528
Earth Chemical Co. Ltd.		3,000		115,945
Fujimi Inc.		6,000		91,775
Fujimori Kogyo Co. Ltd.		3,000		92,699
Ishihara Sangyo Kaisha Ltd.^b		120,000		106,271
JSP Corp.		6,000		105,001
Konishi Co. Ltd.		6,000		118,862
Kureha Corp.		30,000		148,145
Lintec Corp.		15,000		321,413
Nihon Nohyaku Co. Ltd.		15,000		157,530
Nihon Parkerizing Co. Ltd.		12,000		276,190
Nippon Kayaku Co. Ltd.		60,000		738,124
Nippon Shokubai Co. Ltd.		33,000		400,886
Nippon Soda Co. Ltd.		30,000		158,541
Nippon Synthetic Chemical Industry Co. Ltd. (The)		11,000		84,709
Nippon Valqua Industries Ltd.		30,000		90,677
Nissan Chemical Industries Ltd.		42,000		758,454
NOF Corp.		30,000		205,612
Sakai Chemical Industry Co. Ltd.		30,000		92,410
Sakata INX Corp.		12,000		112,740
Sanyo Chemical Industries Ltd.		6,000		39,736
Shin-Etsu Polymer Co. Ltd.		15,000		83,891
Showa Denko K.K.		450,000		649,757
Sumitomo Bakelite Co. Ltd.		60,000		244,309


Security	Shares		Value

Taiyo Holdings Co. Ltd.		6,000	$	202,435
Takasago International Corp.		30,000		162,295
Tenma Corp.		6,000		93,911
Toagosei Co. Ltd.		60,000		250,662
Tokai Carbon Co. Ltd.		60,000		169,226
Tokuyama Corp.		90,000		298,022
Tokyo Ohka Kogyo Co. Ltd.		12,000		324,821
Tosoh Corp.		150,000		620,879
Toyo Ink SC Holdings Co. Ltd.		60,000		281,273
Toyobo Co. Ltd.		270,000		426,241
Ube Industries Ltd.		330,000		559,080
Zeon Corp.		60,000		608,172

				11,230,409
COMMERCIAL BANKS — 6.06%
77 Bank Ltd. (The)		120,000		648,024
Aichi Bank Ltd. (The)		3,000		150,744
Ashikaga Holdings Co. Ltd.		30,000		119,267
Awa Bank Ltd. (The)		60,000		350,580
Bank of Iwate Ltd. (The)		3,000		140,347
Bank of Nagoya Ltd. (The)		60,000		237,378
Bank of Saga Ltd. (The)		60,000		138,037
Bank of the Ryukyus Ltd.		12,000		194,407
Chiba Kogyo Bank Ltd. (The)		12,000		88,713
Daishi Bank Ltd. (The)		90,000		323,146
Eighteenth Bank Ltd. (The)		60,000		160,562
Higashi-Nippon Bank Ltd. (The)		60,000		159,985
Higo Bank Ltd. (The)		60,000		318,237
Hokkoku Bank Ltd. (The)		90,000		311,017
Hokuetsu Bank Ltd. (The)		60,000		119,555
Hyakugo Bank Ltd. (The)		60,000		240,266
Hyakujushi Bank Ltd. (The)		60,000		202,147
Jimoto Holdings Inc.		51,000		106,040
Juroku Bank Ltd. (The)		90,000		343,938
Kagoshima Bank Ltd. (The)		60,000		386,966
Kansai Urban Banking Corp.		90,000		109,159
Keiyo Bank Ltd. (The)		60,000		308,418
Kiyo Bank Ltd. (The)		21,000		303,220
Mie Bank Ltd. (The)		30,000		71,040
Minato Bank Ltd. (The)		60,000		114,357
Miyazaki Bank Ltd. (The)		60,000		192,328
Musashino Bank Ltd. (The)		9,000		308,418
Nanto Bank Ltd. (The)		60,000		254,127
Nishi-Nippon City Bank Ltd. (The)		210,000		549,839
North Pacific Bank Ltd.		108,000		438,716
Ogaki Kyoritsu Bank Ltd. (The)		90,000		249,507


30		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Oita Bank Ltd. (The)		60,000	$	225,827
San-in Godo Bank Ltd. (The)		60,000		423,353
Senshu Ikeda Holdings Inc.		66,000		349,425
Shiga Bank Ltd. (The)		60,000		347,692
Tochigi Bank Ltd. (The)		30,000		123,309
Toho Bank Ltd. (The)		60,000		213,698
Tokyo Tomin Bank Ltd. (The)		9,000		105,954
TOMONY Holdings Inc.		45,000		190,162
Towa Bank Ltd. (The)		90,000		84,902
Tsukuba Bank Ltd. (The)		24,000		86,865
Yachiyo Bank Ltd. (The)		3,000		95,153
Yamagata Bank Ltd. (The)		30,000		141,791
Yamanashi Chuo Bank Ltd. (The)		60,000		267,989

				10,294,605
COMMERCIAL SERVICES & SUPPLIES — 1.83%
AEON Delight Co. Ltd.		6,000		147,451
Daiseki Co. Ltd.		12,060		216,392
Duskin Co. Ltd.		15,000		266,545
Itoki Corp.		12,000		79,010
Kokuyo Co. Ltd.		27,000		215,719
Kyodo Printing Co. Ltd.		30,000		110,892
Matsuda Sangyo Co. Ltd.		6,060		74,434
Mitsubishi Pencil Co. Ltd.		6,000		190,307
Moshi Moshi Hotline Inc.		12,000		118,631
Nissha Printing Co. Ltd.		9,000		116,956
Okamura Corp.		30,000		245,464
Oyo Corp.		6,000		107,831
Pilot Corp.		6,000		329,210
Pronexus Inc.		6,000		44,530
Sanix Inc.^a,b		9,000		77,278
Sato Holdings Corp.		6,000		173,268
Sohgo Security Services Co. Ltd.		18,000		448,419
Toppan Forms Co. Ltd.		15,000		151,754

				3,114,091
COMMUNICATIONS EQUIPMENT — 0.49%
Denki Kogyo Co. Ltd.		30,000		182,798
Hitachi Kokusai Electric Inc.		30,000		464,937
Icom Inc.		3,000		69,163
Japan Radio Co. Ltd.^b		30,000		119,267

				836,165
COMPUTERS & PERIPHERALS — 0.61%
Eizo Nanao Corp.		6,000		155,942
Elecom Co. Ltd.		3,000		74,390
Japan Digital Laboratory Co. Ltd.		6,000		110,314
Melco Holdings Inc.		3,000		65,322


Security	Shares		Value

Riso Kagaku Corp.		3,000	$	97,319
Roland DG Corp.		3,000		126,631
Toshiba Tec Corp.		30,000		190,018
Wacom Co. Ltd.^a		48,000		216,239

				1,036,175
CONSTRUCTION & ENGINEERING — 4.71%
Chudenko Corp.		9,000		144,766
COMSYS Holdings Corp.		33,000		630,871
Fudo Tetra Corp.^a		51,000		122,241
Hazama Ando Corp.		54,000		398,691
Hibiya Engineering Ltd.		6,000		93,507
Kandenko Co. Ltd.		30,000		161,717
Kinden Corp.		30,000		322,279
Kumagai Gumi Co. Ltd.^b		60,000		213,698
Kyowa Exeo Corp.		24,000		327,824
Maeda Corp.		30,000		274,053
Maeda Road Construction Co. Ltd.		30,000		506,233
MIRAIT Holdings Corp.		18,000		205,323
Nippo Corp.		16,000		314,810
Nippon Densetsu Kogyo Co. Ltd.		12,000		201,223
Nippon Koei Co. Ltd.		30,000		136,593
Nippon Road Co. Ltd. (The)		30,000		168,937
Nippon Steel & Sumikin Texeng Co. Ltd.		8,000		48,823
Nishimatsu Construction Co. Ltd.		90,000		480,820
Okumura Corp.		60,000		351,158
OSJB Holdings Corp.^a		60,000		87,212
Penta-Ocean Construction Co. Ltd.		87,000		319,911
Raito Kogyo Co. Ltd.		15,000		134,572
SHO-BOND Holdings Co. Ltd.		6,000		249,507
Sumitomo Densetsu Co. Ltd.		6,000		83,804
Sumitomo Mitsui Construction Co. Ltd.^b		228,000		278,731
Taihei Dengyo Kaisha Ltd.		1,000		7,595
Taikisha Ltd.		9,000		213,727
Tekken Corp.^a		30,000		142,658
Toa Corp.		60,000		111,469
Toda Corp.		60,000		316,504
Tokyu Construction Co. Ltd.		21,040		108,354
Toshiba Plant Systems & Services Corp.		12,000		203,186
Totetsu Kogyo Co. Ltd.		6,000		148,895
Toyo Construction Co. Ltd.		21,000		103,903
Toyo Engineering Corp.		30,000		145,257
Yahagi Construction Co. Ltd.		9,000		67,835


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Yokogawa Bridge Holdings Corp.		12,000	$	175,925

				8,002,612
CONSTRUCTION MATERIALS — 0.25%
Sumitomo Osaka Cement Co. Ltd.		120,000		423,930

				423,930
CONSUMER FINANCE — 0.91%
AIFUL Corp.^a,b		93,000		411,802
Hitachi Capital Corp.		15,000		395,052
J Trust Co. Ltd.		24,000		264,754
Jaccs Co. Ltd.		30,000		175,001
Orient Corp.^b		111,000		256,438
Pocket Card Co. Ltd.		6,000		39,505

				1,542,552
CONTAINERS & PACKAGING — 0.47%
FP Corp.		6,000		193,195
Fuji Seal International Inc.		6,000		202,435
Pack Corp. (The)		6,000		116,032
Rengo Co. Ltd.		60,000		282,428

				794,090
DISTRIBUTORS — 0.37%
Canon Marketing Japan Inc.		15,000		300,332
Chori Co. Ltd.		6,000		74,332
Doshisha Co. Ltd.		6,000		108,582
Paltac Corp.		12,000		153,516

				636,762
DIVERSIFIED CONSUMER SERVICES — 0.07%
JP-Holdings Inc.^a		18,000		73,119
Tsukada Global Holdings Inc.		6,000		51,865

				124,984
DIVERSIFIED FINANCIAL SERVICES — 0.93%
Century Tokyo Leasing Corp.		12,080		357,568
Financial Products Group Co. Ltd.^a		6,000		57,005
Fuyo General Lease Co. Ltd.		6,000		240,554
IBJ Leasing Co. Ltd.		6,000		147,452
Japan Securities Finance Co. Ltd.		33,000		206,161
Ricoh Leasing Co. Ltd.		6,000		173,557
Zenkoku Hosho Co. Ltd.		15,000		402,272

				1,584,569
ELECTRIC UTILITIES — 0.41%
Hokkaido Electric Power Co. Inc.^b		57,000		492,718
Okinawa Electric Power Co. Inc. (The)		6,000		195,505

				688,223


Security	Shares		Value

ELECTRICAL EQUIPMENT — 1.77%
Chiyoda Integre Co. Ltd.		6,000	$	85,537
Cosel Co. Ltd.		6,000		76,527
Daihen Corp.		30,000		121,288
Denyo Co. Ltd.		3,000		43,288
Fujikura Ltd.		90,000		440,968
Furukawa Electric Co. Ltd.		210,000		452,808
Futaba Corp.		9,000		138,788
GS Yuasa Corp.		120,000		723,107
IDEC Corp.		9,000		77,971
Nitto Kogyo Corp.		9,000		186,177
SWCC Showa Holdings Co. Ltd.^a,b		60,000		67,575
Takaoka Toko Co. Ltd.		6,000		88,252
Tatsuta Electric Wire and Cable Co. Ltd.		12,000		62,839
Toyo Tanso Co. Ltd.		3,000		66,333
Ushio Inc.		33,000		369,755

				3,001,213
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.97%
Ai Holdings Corp.		12,000		243,731
Alps Electric Co. Ltd.		54,000		869,635
Amano Corp.		18,000		194,581
Anritsu Corp.		42,000		358,204
Azbil Corp.		18,000		456,389
Canon Electronics Inc.		6,000		114,357
Daiwabo Holdings Co. Ltd.		60,000		120,710
Enplas Corp.		3,000		169,514
HORIBA Ltd.		9,000		338,307
Hosiden Corp.		18,000		98,243
Iriso Electronics Co. Ltd.		3,000		222,650
Japan Aviation Electronics Industry Ltd.		12,000		276,421
Japan Cash Machine Co. Ltd.^a		6,000		121,519
Kaga Electronics Co. Ltd.		6,000		76,296
Koa Corp.		9,000		93,132
Macnica Inc.		3,000		97,608
MARUWA Co. Ltd.		3,000		98,908
Mitsumi Electric Co. Ltd.		27,000		221,437
Nichicon Corp.		15,000		109,592
Nidec Copal Electronics Corp.		6,000		52,847
Nippon Ceramic Co. Ltd.		6,000		93,045
Nippon Chemi-Con Corp.^b		60,000		177,312
Nippon Signal Co. Ltd. (The)		18,000		185,397
Oki Electric Industry Co. Ltd.		210,000		475,045


32		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Ryosan Co. Ltd.		9,000	$	198,046
Ryoyo Electro Corp.		6,000		66,477
SIIX Corp.		3,000		49,410
Taiyo Yuden Co. Ltd.		30,000		303,220
TOKO Inc.		30,000		91,544
Topcon Corp.		24,000		561,159
Toyo Corp.		9,000		102,575
UKC Holdings Corp.		6,000		105,578

				6,742,889
ENERGY EQUIPMENT & SERVICES — 0.28%
Japan Drilling Co. Ltd.		3,000		144,390
Modec Inc.		6,000		164,085
Shinko Plantech Co. Ltd.		12,000		93,219
Toyo Kanetsu K.K.		30,000		75,372

				477,066
FOOD & STAPLES RETAILING — 2.80%
Ain Pharmaciez Inc.		3,000		145,257
Arcs Co. Ltd.		9,000		190,595
Cawachi Ltd.		6,000		104,712
cocokara fine Inc.		6,000		159,003
Cosmos Pharmaceutical Corp.		3,000		374,549
CREATE HOLDINGS Co. Ltd.		3,000		105,405
Heiwado Co. Ltd.		9,000		146,412
Kasumi Co. Ltd.		12,000		97,261
Kato Sangyo Co. Ltd.		6,000		130,991
Maruetsu Inc. (The)		30,000		129,951
Matsumotokiyoshi Co. Ltd.		12,000		379,458
Ministop Co. Ltd.		6,000		89,522
Mitsubishi Shokuhin Co. Ltd.		3,000		70,896
San-A & Co. Ltd.		6,000		213,698
Sugi Holdings Co. Ltd.		12,000		500,169
Sundrug Co. Ltd.		9,000		400,250
Tsuruha Holdings Inc.		9,000		492,083
UNY Co. Ltd.		66,000		371,661
Valor Co. Ltd.		12,000		192,559
Welcia Holdings Co. Ltd.		6,000		176,445
Yaoko Co. Ltd.		3,000		180,488
Yokohama Reito Co. Ltd.		12,000		95,413

				4,746,778
FOOD PRODUCTS — 3.02%
Ariake Japan Co. Ltd.		6,000		140,174
Dydo Drinco Inc.		3,000		127,352
Ezaki Glico Co. Ltd.		30,000		586,803
Fuji Oil Co. Ltd. New		18,000		296,289
Fujiya Co. Ltd.		30,000		57,179


Security	Shares		Value

Hokuto Corp.		6,000	$	113,549
House Foods Group Inc.		18,000		323,319
Itoham Foods Inc.		60,000		289,936
J-Oil Mills Inc.		30,000		99,629
Kagome Co. Ltd.		24,000		405,448
Kameda Seika Co. Ltd.		3,000		93,998
Kewpie Corp.		30,000		514,608
KEY Coffee Inc.		6,000		95,009
Marudai Food Co. Ltd.		30,000		113,202
Maruha Nichiro Corp.		12,000		187,130
MEGMILK SNOW BRAND Co. Ltd.		12,000		157,790
Mitsui Sugar Co. Ltd.		30,000		112,913
Morinaga & Co. Ltd.		60,000		127,641
Morinaga Milk Industry Co. Ltd.		60,000		209,655
Nichirei Corp.		60,000		283,005
Nippon Beet Sugar Manufacturing Co. Ltd.		30,000		56,024
Nippon Flour Mills Co. Ltd.		30,000		151,032
Nippon Suisan Kaisha Ltd.^b		75,000		218,030
Nisshin OilliO Group Ltd. (The)		30,000		105,983
Prima Meat Packers Ltd.		30,000		82,591
Sakata Seed Corp.		9,000		119,902
Warabeya Nichiyo Co. Ltd.		3,000		57,352

				5,125,543
GAS UTILITIES — 0.07%
Shizuoka Gas Co. Ltd.		18,000		119,382

				119,382
HEALTH CARE EQUIPMENT & SUPPLIES — 1.62%
Asahi Intecc Co. Ltd.		6,000		280,695
Eiken Chemical Co. Ltd.		6,000		105,925
Fukuda Denshi Co. Ltd.		3,000		179,044
Hogy Medical Co. Ltd.		3,000		168,359
JEOL Ltd.		30,000		127,930
Mani Inc.		3,000		168,937
Nagaileben Co. Ltd.		6,000		117,014
Nakanishi Inc.		6,000		240,554
Nihon Kohden Corp.		12,000		665,351
Nikkiso Co. Ltd.		18,000		213,813
Nipro Corp.^a		33,000		291,611
Paramount Bed Holdings Co. Ltd.		6,000		185,109

				2,744,342
HEALTH CARE PROVIDERS & SERVICES — 0.75%
AS ONE Corp.		3,000		98,763
BML Inc.		3,000		99,196
Message Co. Ltd.		3,000		105,838


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Nichii Gakkan Co.		15,000	$	126,342
Ship Healthcare Holdings Inc.		9,000		287,626
Toho Holdings Co. Ltd.		15,000		290,802
Tokai Corp. (GIFU)		3,000		94,287
Tsukui Corp.		9,000		90,619
Vital KSK Holdings Inc.		9,000		79,444

				1,272,917
HOTELS, RESTAURANTS & LEISURE — 3.01%
Accordia Golf Co. Ltd.^a		27,000		323,319
Atom Corp.		15,000		88,078
Colowide Co. Ltd.		18,000		236,512
Doutor Nichires Holdings Co. Ltd.		12,000		196,717
Fuji Kyuko Co. Ltd.		30,000		322,857
Fujita Kanko Inc.		30,000		110,025
H.I.S. Co. Ltd.		12,000		358,666
Hiramatsu Inc.		9,000		55,619
Ichibanya Co. Ltd.		3,000		137,893
Kappa Create Co. Ltd.^b		9,000		93,912
Kisoji Co. Ltd.		6,000		113,606
KNT-CT Holdings Co. Ltd.^b		30,000		51,692
Kura Corp.		3,000		85,479
Kyoritsu Maintenance Co. Ltd.		3,000		133,128
MOS Food Services Inc.		9,000		192,328
Ohsho Food Service Corp.		3,000		115,801
PGM Holdings K.K.		6,000		60,413
Plenus Co. Ltd.		6,000		143,871
Resorttrust Inc.		21,000		461,501
Ringer Hut Co. Ltd.^a		6,000		92,987
Round One Corp.		21,000		136,853
Royal Holdings Co. Ltd.		9,000		147,885
Saint Marc Holdings Co. Ltd.		3,000		169,803
Saizeriya Co. Ltd.		9,000		123,107
Starbucks Coffee Japan Ltd.		12,000		146,470
Tokyo Dome Corp.		60,000		278,385
Tokyotokeiba Co. Ltd.^a		30,000		94,720
Toridoll Corp.		6,000		66,651
Watami Co. Ltd.^a		6,000		76,238
Yomiuri Land Co. Ltd.		6,000		29,225
Yoshinoya Holdings Co. Ltd.		15,000		185,397
Zensho Holdings Co. Ltd.^a		30,000		280,117

				5,109,255
HOUSEHOLD DURABLES — 2.28%
Alpine Electronics Inc.		12,000		191,519
Chofu Seisakusho Co. Ltd.		6,000		159,003
Clarion Co. Ltd.^a,b		30,000		130,818


Security	Shares		Value

Cleanup Corp.		6,000	$	55,504
Corona Corp.		6,000		69,827
Foster Electric Co. Ltd.		6,000		87,443
France Bed Holdings Co. Ltd.		30,000		54,580
Fujitsu General Ltd.		30,000		417,577
Funai Electric Co. Ltd.		6,000		65,322
Haseko Corp.		87,000		721,057
JVC Kenwood Corp.^b		42,000		112,798
Misawa Homes Co. Ltd.		9,000		99,976
PanaHome Corp.		30,000		217,163
Pioneer Corp.^b		87,000		270,501
Sangetsu Co. Ltd.		9,000		244,655
Starts Corp. Inc.		6,000		98,474
Sumitomo Forestry Co. Ltd.		42,000		469,789
Takamatsu Construction Group Co. Ltd.		3,000		53,655
Tama Home Co. Ltd.^a		6,000		39,101
Tamron Co. Ltd.		6,000		126,139
Token Corp.		2,320		105,744
West Holdings Corp.		6,000		82,996

				3,873,641
HOUSEHOLD PRODUCTS — 0.62%
Lion Corp.		60,000		348,847
Pigeon Corp.		12,000		710,401

				1,059,248
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.05%
Eneres Co. Ltd.^b		6,000		84,382

				84,382
INDUSTRIAL CONGLOMERATES — 0.32%
Katakura Industries Co. Ltd.		6,000		78,086
Nisshinbo Holdings Inc.		36,000		335,794
TOKAI Holdings Corp.		27,000		134,370

				548,250
INTERNET & CATALOG RETAIL — 0.47%
Askul Corp.^a		6,000		144,390
Belluna Co. Ltd.		15,000		69,019
Ikyu Corp.		6,000		84,439
Senshukai Co. Ltd.		9,000		74,765
Start Today Co. Ltd.		18,000		428,840

				801,453
INTERNET SOFTWARE & SERVICES — 1.03%
F@N Communications Inc.		12,000		147,625
GMO Internet Inc.		21,000		198,508


34		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Gurunavi Inc.		9,000	$	142,600
Infomart Corp.		6,000		106,272
Internet Initiative Japan Inc.^a		9,000		188,256
Mixi Inc.^a		15,000		843,240
SMS Co. Ltd.		3,000		77,740
UNITED Inc.^a		3,000		49,439

				1,753,680
IT SERVICES — 1.72%
Digital Garage Inc.		9,000		158,281
Future Architect Inc.		9,000		49,122
GMO Payment Gateway Inc.		3,037		146,463
Ines Corp.		12,000		99,110
Information Services International-Dentsu Ltd.		3,000		34,567
IT Holdings Corp.		24,048		443,991
NEC Networks & System Integration Corp.		6,000		141,965
Net One Systems Co. Ltd.		27,000		168,417
Nihon Unisys Ltd.		18,000		166,338
NS Solutions Corp.		6,000		177,311
OBIC Co. Ltd.		21,000		720,653
SCSK Corp.		15,256		436,305
Trans Cosmos Inc.		9,000		182,885

				2,925,408
LEISURE EQUIPMENT & PRODUCTS — 0.51%
Daikoku Denki Co. Ltd.		3,000		59,315
Dunlop Sports Co. Ltd.		3,000		35,549
Fields Corp.		3,000		45,396
Heiwa Corp.		12,000		274,342
Mars Engineering Corp.		3,000		60,702
Mizuno Corp.		30,000		174,424
Tomy Co. Ltd.		21,000		114,415
Universal Entertainment Corp.		6,000		107,022

				871,165
LIFE SCIENCES TOOLS & SERVICES — 0.16%
Chiome Bioscience Inc.^a,b		6,000		83,573
CMIC Holdings Co. Ltd.		6,000		116,206
EPS Co. Ltd.		6,000		75,949

				275,728
MACHINERY — 8.13%
Aichi Corp.		12,000		57,756
Aida Engineering Ltd.		15,000		143,524
Asahi Diamond Industrial Co. Ltd.		18,000		252,972
Bando Chemical Industries Ltd.		30,000		120,710


Security	Shares		Value

CKD Corp.		18,000	$	170,669
Daifuku Co. Ltd.		27,000		320,460
Daiwa Industries Ltd.		8,000		59,912
DMG Mori Seiki Co Ltd.		39,000		491,794
Ebara Corp.		150,000		847,572
Fuji Machine Manufacturing Co. Ltd.		21,000		200,125
Fujitec Co. Ltd.		24,000		281,157
Furukawa Co. Ltd.		90,000		207,922
Glory Ltd.		18,000		544,930
Hitachi Koki Co. Ltd.		15,000		126,342
Hitachi Zosen Corp.		51,000		250,373
Hoshizaki Electric Co. Ltd.		12,000		586,803
Iseki & Co. Ltd.		60,000		161,140
Japan Steel Works Ltd. (The)		90,000		388,988
Juki Corp.^b		30,000		91,255
Kitz Corp.		27,000		144,506
Komori Corp.		15,000		174,279
Kyokuto Kaihatsu Kogyo Co. Ltd.		9,000		131,251
Makino Milling Machine Co. Ltd.		30,000		222,939
Max Co. Ltd.		4,000		46,551
Meidensha Corp.		60,000		241,421
Minebea Co. Ltd.		90,000		1,127,978
Mitsui Engineering & Shipbuilding Co. Ltd.		240,000		524,426
Miura Co. Ltd.		9,000		311,017
Nachi-Fujikoshi Corp.		60,000		399,673
Namura Shipbuilding Co. Ltd.^a		12,000		111,700
Nippon Sharyo Ltd.		30,000		117,534
Nippon Thompson Co. Ltd.		30,000		155,942
Nitta Corp.		6,000		146,470
Nitto Kohki Co. Ltd.		3,000		60,731
Noritake Co. Ltd.		30,000		77,393
NTN Corp.		150,000		630,986
Obara Group Inc.		3,000		114,357
Oiles Corp.		6,080		154,041
Okuma Corp.		30,000		241,132
OSG Corp.		24,000		410,069
Ryobi Ltd.		30,000		89,522
Shibuya Kogyo Co. Ltd.		6,000		168,128
Shima Seiki Manufacturing Ltd.		9,000		145,286
ShinMaywa Industries Ltd.		30,000		294,845
Sintokogio Ltd.		15,000		100,496
Star Micronics Co. Ltd.		12,000		169,226
Tadano Ltd.		32,000		576,022
Takeuchi Manufacturing Co. Ltd.		3,000		137,315


SCHEDULES OF INVESTMENTS			35

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Takuma Co. Ltd.		30,000	$	191,750
Teikoku Sen-I Co. Ltd.		6,000		123,887
Tocalo Co. Ltd.		6,000		118,920
Torishima Pump Manufacturing Co. Ltd.^a		6,000		52,269
Toshiba Machine Co. Ltd.		30,000		132,839
Tsubakimoto Chain Co.		30,000		255,860
Tsugami Corp.		30,000		159,118
Union Tool Co.		3,000		77,855
YAMABIKO Corp.		3,000		98,619
Yushin Precision Equipment Co. Ltd.		3,000		69,510

				13,810,267
MARINE — 0.56%
Daiichi Chuo Kisen Kaisha^a,b		60,000		51,980
Iino Kaiun Kaisha Ltd.		27,000		170,756
Kawasaki Kisen Kaisha Ltd.		270,000		649,757
NS United Kaiwn Kaisha Ltd.		30,000		77,971

				950,464
MEDIA — 1.84%
Adways Inc.^a,b		6,000		90,273
Asatsu-DK Inc.		9,000		237,898
Avex Group Holdings Inc.		12,000		196,717
COOKPAD Inc.^a		3,000		99,629
CyberAgent Inc.		15,000		514,030
Daiichikosho Co. Ltd.		12,000		350,580
Gakken Holdings Co. Ltd.		30,000		80,281
Kadokawa Corp.		6,000		155,999
Next Co. Ltd.		6,000		45,743
Shochiku Co. Ltd.		30,000		279,540
SKY Perfect JSAT Holdings Inc.		54,000		331,116
Toei Co. Ltd.		30,000		165,183
Tohokushinsha Film Corp.		6,000		49,497
Tokyo Broadcasting System Holdings Inc.		12,000		138,384
TV Asahi Holdings Corp.		6,000		103,846
USEN Corp.^b		36,580		133,453
ValueCommerce Co. Ltd.^a		6,000		47,476
Zenrin Co. Ltd.		9,000		105,261

				3,124,906
METALS & MINING — 2.51%
Aichi Steel Corp.		30,000		116,090
Asahi Holdings Inc.		9,000		159,234
Dowa Holdings Co. Ltd.		90,000		808,298
Godo Steel Ltd.		30,000		47,071
Kurimoto Ltd.		30,000		71,040


Security	Shares		Value

Kyoei Steel Ltd.		6,000	$	111,296
Mitsubishi Steel Manufacturing Co. Ltd.		30,000		67,286
Mitsui Mining & Smelting Co. Ltd.		180,000		554,459
Nakayama Steel Works Ltd.^b		60,000		47,938
Neturen Co. Ltd.		9,000		65,409
Nippon Denko Co. Ltd.		30,000		79,415
Nippon Light Metal Holdings Co. Ltd.		156,000		249,276
Nippon Yakin Kogyo Co. Ltd.^a,b		45,000		130,384
Nisshin Steel Co. Ltd.		24,000		255,513
Nittetsu Mining Co. Ltd.		30,000		131,684
Osaka Steel Co. Ltd.		3,000		58,940
OSAKA Titanium Technologies Co. Ltd.		6,000		146,123
Pacific Metals Co. Ltd.^b		30,000		126,775
Sanyo Special Steel Co. Ltd.		30,000		123,598
Toho Zinc Co. Ltd.		30,000		127,641
Tokyo Rope Manufacturing Co. Ltd.^b		30,000		51,403
Tokyo Steel Manufacturing Co. Ltd.		30,000		172,113
TOPY Industries Ltd.		60,000		116,090
UACJ Corp.		73,140		310,485
Yodogawa Steel Works Ltd.		30,000		129,374

				4,256,935
MULTILINE RETAIL — 1.21%
Daiei Inc. (The)^b		72,000		90,793
Fuji Co. Ltd.		6,000		115,685
H2O Retailing Corp.		24,135		396,113
Izumi Co. Ltd.		12,000		375,993
Matsuya Co. Ltd.		9,000		103,441
Parco Co. Ltd.		6,000		50,941
Ryohin Keikaku Co. Ltd.		6,000		674,592
Seria Co. Ltd.		6,000		246,908

				2,054,466
OIL, GAS & CONSUMABLE FUELS — 0.52%
Cosmo Oil Co. Ltd.		180,000		337,873
ITOCHU Enex Co. Ltd.		18,000		129,778
Japan Petroleum Exploration Co. Ltd.		9,000		350,869
Nippon Coke & Engineering Co. Ltd.		57,000		62,550

				881,070
PAPER & FOREST PRODUCTS — 0.59%
Daio Paper Corp.		30,000		267,411
Hokuetsu Kishu Paper Co. Ltd.		39,000		173,442
Mitsubishi Paper Mills Ltd.^b		90,000		77,971
Nippon Paper Industries Co. Ltd.^a		30,000		484,574

				1,003,398


36		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

PERSONAL PRODUCTS — 1.35%
Aderans Co. Ltd.		6,000	$	88,887
Artnature Inc.		3,000		90,966
Dr. Ci:Labo Co. Ltd.		3,000		106,416
Euglena Co. Ltd.^a,b		18,000		231,140
Fancl Corp.		12,000		149,935
Kobayashi Pharmaceutical Co. Ltd.		9,000		577,850
Kose Corp.		9,000		393,320
Mandom Corp.		6,000		231,602
Milbon Co. Ltd.		3,500		116,066
Noevir Holdings Co. Ltd.		3,000		61,597
Pola Orbis Holdings Inc.		6,000		236,800

				2,284,579
PHARMACEUTICALS — 2.56%
Fuso Pharmaceutical Industries Ltd.		30,000		91,543
JCR Pharmaceuticals Co. Ltd.		3,000		72,686
Kaken Pharmaceutical Co. Ltd.		30,000		756,895
Kissei Pharmaceutical Co. Ltd.		6,000		150,224
KYORIN Holdings Inc.		15,000		337,152
Mochida Pharmaceutical Co. Ltd.		3,000		206,478
Nichi-Iko Pharmaceutical Co. Ltd.		13,250		206,495
Nippon Shinyaku Co. Ltd.		12,000		381,768
Rohto Pharmaceutical Co. Ltd.		27,000		382,837
Sawai Pharmaceutical Co. Ltd.		9,000		513,741
Seikagaku Corp.		12,000		219,011
Sosei Group Corp.^a,b		3,000		130,529
Torii Pharmaceutical Co. Ltd.		3,000		97,464
Towa Pharmaceutical Co. Ltd.		3,000		122,443
Tsumura & Co.		18,000		460,721
ZERIA Pharmaceutical Co. Ltd.		9,000		220,398

				4,350,385
PROFESSIONAL SERVICES — 0.90%
Benefit One Inc.		9,000		85,768
En-Japan Inc.		3,000		64,456
Meitec Corp.		9,000		290,225
Nihon M&A Center Inc.		9,000		284,593
Nomura Co. Ltd.		12,000		111,585
Temp Holdings Co. Ltd.		15,000		518,362
Weathernews Inc.		3,000		92,265
Yumeshin Holdings Co. Ltd.^a		9,000		75,978

				1,523,232
REAL ESTATE INVESTMENT TRUSTS (REITS) — 8.83%
Activia Properties Inc.		60		529,624
Advance Residence Investment Corp.		390		961,814


Security	Shares		Value

AEON REIT Investment Corp.		270	$	367,762
Comforia Residential REIT Inc.		120		222,708
Daiwa House REIT Investment Corp.		90		409,780
Daiwa Office Investment Corp.		90		476,488
Daiwahouse Residential Investment Corp.		120		554,459
Frontier Real Estate Investment Corp.		150		799,923
Fukuoka REIT Corp.		210		402,272
Global One Real Estate Investment Corp. Ltd.		60		177,023
GLP J-REIT		600		719,064
Hankyu REIT Inc.		30		178,467
Heiwa Real Estate REIT Inc.		240		206,305
Hulic Reit Inc.		210		356,587
Ichigo Real Estate Investment Corp.		210		151,004
Industrial & Infrastructure Fund Investment Corp.		60		531,357
Japan Excellent Inc.		360		485,498
Japan Hotel REIT Investment Corp.		750		454,108
Japan Logistics Fund Inc.		270		622,207
Japan Rental Housing Investments Inc.		300		223,228
Kenedix Realty Investment Corp.		120		665,351
Kenedix Residential Investment Corp.		60		155,711
MID REIT Inc.		60		144,102
Mori Hills REIT Investment Corp.		360		522,231
MORI TRUST Sogo REIT Inc.		300		552,438
Nippon Accommodations Fund Inc.		150		545,796
Nomura Real Estate Master Fund Inc.		510		641,642
Nomura Real Estate Office Fund Inc.		120		556,769
Nomura Real Estate Residential Fund Inc.		60		331,520
ORIX JREIT Inc.		600		804,543
Premier Investment Corp.		60		265,390
Sekisui House SI Residential Investment Corp.		270		283,554
TOKYU REIT Inc.		300		415,844
Top REIT Inc.		60		277,230

				14,991,799
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.37%
Airport Facilities Co. Ltd.		6,000		41,700
Ardepro Co. Ltd.^b		30,000		52,558
Daibiru Corp.		15,000		150,310
Daikyo Inc.		90,000		172,402
Goldcrest Co. Ltd.		6,000		123,194


SCHEDULES OF INVESTMENTS			37

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Heiwa Real Estate Co. Ltd.		12,000	$	182,972
Kenedix Inc.^b		75,000		334,986
Leopalace21 Corp.^b		75,000		431,727
Open House Co. Ltd.		3,000		57,410
Raysum Co. Ltd.^b		6,000		61,337
Relo Holdings Inc.		3,000		204,168
Sumitomo Real Estate Sales Co. Ltd.		6,000		155,826
Sun Frontier Fudousan Co. Ltd.		6,000		68,903
Takara Leben Co. Ltd.		27,000		91,746
TOC Co. Ltd.		21,000		142,716
Tosei Corp.		9,000		56,832

				2,328,787
ROAD & RAIL — 1.36%
Fukuyama Transporting Co. Ltd.		30,000		162,295
Hitachi Transport System Ltd.		15,000		216,874
Nippon Konpo Unyu Soko Co. Ltd.		18,000		318,987
Sankyu Inc.		90,000		451,365
Seino Holdings Co. Ltd.		45,000		422,775
Senko Co. Ltd.		30,000		148,145
Sotetsu Holdings Inc.		120,000		471,290
Trancom Co. Ltd.		3,000		126,053

				2,317,784
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.51%
Dainippon Screen Manufacturing Co. Ltd.		60,000		332,098
DISCO Corp.		9,000		576,118
Megachips Corp.		6,000		81,725
Micronics Japan Co. Ltd.^a		3,000		185,686
Mimasu Semiconductor Industry Co. Ltd.		6,000		53,944
Mitsui High-Tech Inc.		9,000		62,810
Sanken Electric Co. Ltd.		30,000		249,796
Shindengen Electric Manufacturing Co. Ltd.		30,000		197,526
Shinko Electric Industries Co. Ltd.		21,000		153,631
Sumco Corp.		36,000		310,497
Tokyo Seimitsu Co. Ltd.		12,000		201,569
ULVAC Inc.^b		12,000		161,833

				2,567,233
SOFTWARE — 1.46%
Broadleaf Co. Ltd.		9,000		152,216
Capcom Co. Ltd.		15,000		275,786
Colopl Inc.^a,b		12,000		508,254
DTS Corp.		6,000		130,818


Security	Shares		Value

Dwango Co. Ltd.^a		6,000	$	133,475
Fuji Soft Inc.		6,000		144,102
Justsystems Corp.^b		12,000		97,723
Koei Tecmo Holdings Co. Ltd.		9,000		137,055
Marvelous Inc.		9,000		114,704
NSD Co. Ltd.		9,000		140,954
Obic Business Consultants Co. Ltd.		3,000		88,511
Square Enix Holdings Co. Ltd.		24,000		552,149


				2,475,747
SPECIALTY RETAIL — 2.51%
Adastria Holdings Co. Ltd.		3,000		60,153
Alpen Co. Ltd.		6,000		96,395
Aoki Holdings Inc.		15,000		179,622
Aoyama Trading Co. Ltd.		15,000		371,517
Arc Land Sakamoto Co. Ltd.		3,000		69,538
Asahi Co. Ltd.		6,000		75,083
Autobacs Seven Co. Ltd.		21,000		335,968
BIC Camera Inc.^a		21,000		192,444
Chiyoda Co. Ltd.		6,000		126,313
DCM Holdings Co. Ltd.		27,000		183,491
EDION Corp.		24,000		152,014
Geo Holdings Corp.		12,000		105,463
Gulliver International Co. Ltd.		18,000		162,526
Honeys Co. Ltd.		6,000		60,702
Jin Co. Ltd.^a		3,000		86,779
Joshin Denki Co. Ltd.		7,000		61,318
K’s Holdings Corp.		12,000		335,563
Keiyo Co. Ltd.^a		12,000		56,254
Kohnan Shoji Co. Ltd.		9,000		94,691
Komeri Co. Ltd.		9,000		220,484
Nishimatsuya Chain Co. Ltd.		15,000		118,545
Pal Co. Ltd.		3,000		81,609
Paris Miki Holdings Inc.		12,000		55,792
Shimachu Co. Ltd.		15,000		343,505
T-Gaia Corp.		9,000		79,877
Tsutsumi Jewelry Co. Ltd.		3,000		73,033
United Arrows Ltd.		6,000		220,051
VT Holdings Co. Ltd.		24,000		100,727
Xebio Co. Ltd.		6,000		98,416
Yellow Hat Ltd.		3,000		65,264

				4,263,137
TEXTILES, APPAREL & LUXURY GOODS — 1.25%
Daidoh Ltd.		9,000		47,995
Descente Ltd.		30,000		259,325
Fujibo Holdings Inc.		30,000		97,319


38		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Gunze Ltd.		60,000	$	169,803
Japan Wool Textile Co. Ltd. (The)		30,000		220,917
Kurabo Industries Ltd.		60,000		106,271
Onward Holdings Co. Ltd.		30,000		200,414
Sanyo Shokai Ltd.		30,000		68,730
Seiko Holdings Corp.		30,000		131,107
Seiren Co. Ltd.		15,000		135,005
TSI Holdings Co. Ltd.		27,000		186,350
Unitika Ltd.^b		180,000		79,704
Wacoal Holdings Corp.		30,000		298,311
Yondoshi Holdings Inc.		6,000		121,346

				2,122,597
TRADING COMPANIES & DISTRIBUTORS — 3.04%
Hanwa Co. Ltd.		60,000		236,800
Inaba Denki Sangyo Co. Ltd.		6,000		205,612
Inabata & Co. Ltd.		12,000		119,324
Iwatani Corp.		60,000		468,980
Japan Pulp & Paper Co. Ltd.		30,000		94,720
Kamei Corp.		9,000		66,535
Kanamoto Co. Ltd.		9,000		411,513
Kanematsu Corp.		120,000		200,992
Kuroda Electric Co. Ltd.		9,000		138,615
Misumi Group Inc.		27,000		840,786
MonotaRO Co. Ltd.		9,000		251,066
Nagase & Co. Ltd.		33,000		405,651
NEC Capital Solutions Ltd.		3,000		59,720
Nippon Steel & Sumikin Bussan Corp.		31,440		123,175
Nishio Rent All Co. Ltd.		6,000		274,919
Onoken Co. Ltd.		6,000		67,690
Sojitz Corp.		384,000		635,780
Trusco Nakayama Corp.		6,000		154,498
Wakita & Co. Ltd.		12,000		139,308
Yamazen Corp.		18,000		137,229
Yuasa Trading Co. Ltd.		60,000		125,908

				5,158,821
TRANSPORTATION INFRASTRUCTURE — 0.35%
Japan Airport Terminal Co. Ltd.		12,000		430,284
Sumitomo Warehouse Co. Ltd. (The)		30,000		162,006

				592,290
WIRELESS TELECOMMUNICATION SERVICES — 0.15%
Japan Communications Inc.^a,b		36,000		257,130

				257,130

TOTAL COMMON STOCKS
(Cost: $153,180,710)				169,379,711


Security	Shares		Value

SHORT-TERM INVESTMENTS — 3.78%

MONEY MARKET FUNDS — 3.78%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		6,026,270	$	6,026,270
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		379,370		379,370
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		15,965		15,965

				6,421,605

TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,421,605)				6,421,605

TOTAL INVESTMENTS IN SECURITIES — 103.51%
(Cost: $159,602,315)				175,801,316
Other Assets, Less Liabilities — (3.51)%				(5,964,611	)

NET ASSETS — 100.00%			$	169,836,705

^a	All or a portion of this security represents a security on loan. See Note 1.

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			39

Schedule of Investments

iSHARES^® MSCI MALAYSIA ETF

August 31, 2014


Security	Shares		Value
COMMON STOCKS — 99.62%

AIRLINES — 0.59%
AirAsia Bhd		6,020,700	$	4,603,390

				4,603,390
AUTOMOBILES — 1.34%
UMW Holdings Bhd		2,678,000		10,501,294

				10,501,294
CHEMICALS — 3.39%
Petronas Chemicals Group Bhd		13,342,400		26,667,868

				26,667,868
COMMERCIAL BANKS — 32.54%
Alliance Financial Group Bhd		5,213,200		8,038,119
AMMB Holdings Bhd		8,431,337		17,868,443
CIMB Group Holdings Bhd		23,979,264		56,144,343
Hong Leong Bank Bhd		2,870,540		13,114,142
Hong Leong Financial Group Bhd		1,013,300		5,477,992
Malayan Banking Bhd		21,481,920		68,834,833
Public Bank Bhd		12,586,980		76,991,426
RHB Capital Bhd		3,242,800		9,434,161

				255,903,459
CONSTRUCTION & ENGINEERING — 4.24%
Dialog Group Bhd		17,308,154		9,499,717
Gamuda Bhd		8,302,100		12,721,809
IJM Corp. Bhd		5,392,540		11,120,403

				33,341,929
CONSTRUCTION MATERIALS — 0.80%
Lafarge Malaysia Bhd		1,939,560		6,276,495

				6,276,495
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.40%
Telekom Malaysia Bhd		5,463,700		11,024,471

				11,024,471
ELECTRIC UTILITIES — 7.14%
Tenaga Nasional Bhd		14,303,812		56,180,581

				56,180,581
ENERGY EQUIPMENT & SERVICES — 3.47%
Bumi Armada Bhd^a		3,142,100		2,940,734
Sapurakencana Petroleum Bhd		18,201,200		24,368,358

				27,309,092
FOOD PRODUCTS — 7.58%
Felda Global Ventures Holdings Bhd		4,590,600		5,563,481
Genting Plantations Bhd		1,034,600		3,302,055
IOI Corp. Bhd		14,749,630		22,367,776


Security	Shares		Value
Kuala Lumpur Kepong Bhd		2,443,600	$	17,086,594
PPB Group Bhd		2,413,566		11,317,419

				59,637,325
GAS UTILITIES — 2.78%
Petronas Gas Bhd		3,022,200		21,861,091

				21,861,091
HEALTH CARE PROVIDERS & SERVICES — 2.31%
IHH Healthcare Bhd		11,741,100		18,177,845

				18,177,845
HOTELS, RESTAURANTS & LEISURE — 7.23%
Berjaya Sports Toto Bhd		3,050,076		3,638,416
Genting Bhd		10,407,100		31,630,716
Genting Malaysia Bhd		15,097,800		21,602,499

				56,871,631
INDUSTRIAL CONGLOMERATES — 5.59%
MMC Corp. Bhd		3,662,400		2,869,965
Sime Darby Bhd		13,683,825		41,068,840

				43,938,805
MARINE — 1.37%
MISC Bhd		4,955,320		10,816,181

				10,816,181
MEDIA — 0.82%
Astro Malaysia Holdings Bhd		6,182,300		6,433,358

				6,433,358
MULTI-UTILITIES — 1.71%
YTL Corp. Bhd		21,883,512		11,247,237
YTL Power International Bhd^a		4,592,300		2,170,852

				13,418,089
OIL, GAS & CONSUMABLE FUELS — 1.03%
Petronas Dagangan Bhd		1,264,700		8,064,870

				8,064,870
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.09%
IOI Properties Group Bhd^a		5,700,765		4,449,201
UEM Sunrise Bhd		6,808,600		4,147,371

				8,596,572
TOBACCO — 1.90%
British American Tobacco (Malaysia) Bhd		654,100		14,941,371

				14,941,371
TRANSPORTATION INFRASTRUCTURE — 0.89%
Malaysia Airports Holdings Bhd		2,879,600		7,034,556

				7,034,556


40		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI MALAYSIA ETF

August 31, 2014


Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 10.41%
Axiata Group Bhd		12,920,500	$	28,407,064
DiGi.Com Bhd		17,800,700		32,359,775
Maxis Bhd		10,168,100		21,129,776

				81,896,615

TOTAL COMMON STOCKS
(Cost: $329,295,748)				783,496,888

SHORT-TERM INVESTMENTS — 0.01%

MONEY MARKET FUNDS — 0.01%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,c		49,820		49,820

				49,820

TOTAL SHORT-TERM INVESTMENTS
(Cost: $49,820)				49,820

TOTAL INVESTMENTS IN SECURITIES — 99.63%
(Cost: $329,345,568)				783,546,708
Other Assets, Less Liabilities — 0.37%				2,914,191

NET ASSETS — 100.00%			$	786,460,899

^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			41

Schedule of Investments

iSHARES^® MSCI PACIFIC EX JAPAN ETF

August 31, 2014


Security	Shares		Value
COMMON STOCKS — 99.05%

AUSTRALIA — 63.24%
AGL Energy Ltd.		1,134,068	$	14,955,778
AGL Energy Ltd. New^a		226,814		2,991,161
ALS Ltd.^a		799,588		5,564,037
Alumina Ltd.^b		5,023,528		7,282,682
Amcor Ltd.		2,436,054		26,019,792
AMP Ltd.		6,022,900		33,123,314
APA Group		1,710,820		12,401,003
Asciano Ltd.		1,967,556		11,556,799
ASX Ltd.		409,964		14,375,136
Aurizon Holdings Ltd.		4,344,398		19,382,009
AusNet Services		3,623,684		4,795,761
Australia and New Zealand Banking Group Ltd.		4,848,378		151,594,570
Bank of Queensland Ltd.		796,424		9,370,781
Bendigo and Adelaide Bank Ltd.		964,342		11,229,262
BGP Holdings PLC^b,c		27,004,595		356
BHP Billiton Ltd.		6,398,060		219,437,081
Boral Ltd.		1,571,378		8,098,099
Brambles Ltd.		3,161,514		28,091,150
Caltex Australia Ltd.		269,844		7,190,449
CFS Retail Property Trust Group		4,320,668		8,688,407
Coca-Cola Amatil Ltd.		1,164,352		9,801,163
Cochlear Ltd.		114,356		7,759,740
Commonwealth Bank of Australia		3,235,868		246,115,500
Computershare Ltd.		968,184		11,156,280
Crown Resorts Ltd.		741,506		10,957,779
CSL Ltd.		958,918		66,252,210
Dexus Property Group		11,188,130		12,609,427
Federation Centres		2,913,818		7,249,280
Flight Centre Travel Group Ltd.		110,740		4,857,672
Fortescue Metals Group Ltd.		3,150,440		12,287,345
Goodman Group		3,519,724		18,369,342
GPT Group (The)		3,411,470		12,731,080
Harvey Norman Holdings Ltd.		1,101,976		3,658,906
Iluka Resources Ltd.		837,330		6,970,075
Incitec Pivot Ltd.		3,296,210		9,557,127
Insurance Australia Group Ltd.		4,809,732		29,105,560
James Hardie Industries SE		891,796		10,684,777
Leighton Holdings Ltd.		204,530		4,292,701
Lend Lease Group		1,109,660		14,841,465
Macquarie Group Ltd.		587,148		32,015,990
Metcash Ltd.		1,796,022		4,720,291
Mirvac Group		7,555,406		12,967,154


Security	Shares		Value
National Australia Bank Ltd.		4,794,364	$	157,842,687
Newcrest Mining Ltd.^b		1,520,076		16,093,945
Orica Ltd.		747,382		14,330,036
Origin Energy Ltd.		2,223,840		32,301,731
Qantas Airways Ltd.^b		2,222,710		3,055,983
QBE Insurance Group Ltd.		2,518,318		27,134,002
Ramsay Health Care Ltd.		265,324		12,894,262
REA Group Ltd.		105,316		4,720,217
Rio Tinto Ltd.		876,428		51,339,242
Santos Ltd.		1,957,838		27,156,181
Scentre Group^b		10,820,428		34,712,777
Seek Ltd.		648,620		10,598,247
Sonic Healthcare Ltd.		773,824		12,759,842
Stockland Corp. Ltd.		4,716,394		18,747,778
Suncorp Group Ltd.		2,634,256		35,552,906
Sydney Airport		2,253,220		9,335,941
Tabcorp Holdings Ltd.		1,559,626		5,236,797
Tatts Group Ltd.		2,895,964		8,992,533
Telstra Corp. Ltd.		8,876,376		46,159,520
Toll Holdings Ltd.		1,402,782		7,832,769
TPG Telecom Ltd.		553,926		3,124,064
Transurban Group		3,592,496		27,082,087
Treasury Wine Estates Ltd.		1,288,200		6,156,799
Wesfarmers Ltd.		2,305,200		93,378,650
Westfield Corp.		4,017,376		28,631,774
Westpac Banking Corp.		6,247,770		204,757,552
Woodside Petroleum Ltd.		1,474,424		58,884,510
Woolworths Ltd.		2,530,070		85,568,074
WorleyParsons Ltd.		414,710		6,376,717

				2,195,866,114
HONG KONG — 23.28%
AIA Group Ltd.		24,091,614		131,491,039
ASM Pacific Technology Ltd.^a		474,600		4,938,806
Bank of East Asia Ltd. (The)		2,621,720		11,163,237
BOC Hong Kong (Holdings) Ltd.^a		7,571,000		25,447,837
Cathay Pacific Airways Ltd.		2,260,000		4,199,145
Cheung Kong (Holdings) Ltd.		2,712,000		49,444,927
Cheung Kong Infrastructure Holdings Ltd.		1,130,208		8,159,215
CLP Holdings Ltd.		3,729,000		31,563,570
First Pacific Co. Ltd.		4,972,500		5,793,652
Galaxy Entertainment Group Ltd.^a		4,746,000		35,762,714
Hang Lung Properties Ltd.		4,520,736		14,932,723
Hang Seng Bank Ltd.		1,582,000		26,719,973


42		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI PACIFIC EX JAPAN ETF

August 31, 2014


Security	Shares		Value
Henderson Land Development Co. Ltd.		1,828,687	$	12,116,292
HKT Trust and HKT Ltd.^a		5,198,338		6,157,396
Hong Kong and China Gas Co. Ltd. (The)		12,430,746		28,197,198
Hong Kong Exchanges and Clearing Ltd.		2,192,200		50,377,195
Hutchison Whampoa Ltd.		4,294,000		55,848,622
Hysan Development Co. Ltd.^a		1,356,830		6,652,715
Kerry Properties Ltd.		1,356,000		5,038,973
Li & Fung Ltd.		11,753,200		14,588,851
Link REIT (The)		4,520,086		26,828,378
MGM China Holdings Ltd.		1,898,400		6,282,970
MTR Corp. Ltd.		2,938,286		11,658,135
New World Development Co. Ltd.		10,396,921		13,146,820
NWS Holdings Ltd.		2,938,000		5,549,869
PCCW Ltd.		7,458,867		4,744,710
Power Assets Holdings Ltd.		2,748,000		25,032,909
Sands China Ltd.		4,791,200		31,219,473
Shangri-La Asia Ltd.		2,713,000		4,200,693
Sino Land Co. Ltd.		5,876,800		10,388,465
SJM Holdings Ltd.		3,616,000		9,098,147
Sun Hung Kai Properties Ltd.		3,164,000		48,010,219
Swire Pacific Ltd. Class A		1,243,000		16,728,050
Swire Properties Ltd.		2,350,400		7,885,060
Techtronic Industries Co. Ltd.		2,712,207		8,276,446
Wharf (Holdings) Ltd. (The)		3,164,600		24,744,651
Wheelock and Co. Ltd.		1,808,000		9,471,404
Wynn Macau Ltd.^a		3,073,600		11,778,600
Yue Yuen Industrial (Holdings) Ltd.		1,469,000		4,558,551

				808,197,630
NEW ZEALAND — 1.06%
Auckland International Airport Ltd.		1,954,222		6,003,679
Contact Energy Ltd.		770,660		3,580,414
Fletcher Building Ltd.		1,395,324		10,745,840
Ryman Healthcare Ltd.		736,986		4,972,465
Spark New Zealand Ltd.		3,645,832		8,957,406
Xero Ltd.^a,b		126,786		2,674,542

				36,934,346
SINGAPORE — 11.47%
Ascendas REIT		4,068,813		7,661,934
CapitaCommercial Trust		4,068,000		5,541,568


Security	Shares		Value
CapitaLand Ltd.		5,198,000	$	13,828,567
CapitaMall Trust Management Ltd.		4,746,000		7,606,074
City Developments Ltd.		904,000		7,265,612
ComfortDelGro Corp. Ltd.		3,842,000		7,727,409
DBS Group Holdings Ltd.		3,390,000		48,678,873
Genting Singapore PLC		12,204,400		11,931,061
Global Logistic Properties Ltd.		6,102,000		13,935,414
Golden Agri-Resources Ltd.		14,012,987		5,726,690
Hutchison Port Holdings Trust		11,300,000		8,136,000
Jardine Cycle & Carriage Ltd.		226,000		8,160,231
Keppel Corp. Ltd.		2,938,200		25,663,192
Keppel Land Ltd.		1,356,000		3,770,440
Noble Group Ltd.		8,588,708		9,359,864
Olam International Ltd.^a		904,549		1,920,794
Oversea-Chinese Banking Corp. Ltd.		5,198,600		41,657,118
SembCorp Industries Ltd.		2,034,240		8,345,934
SembCorp Marine Ltd.^a		1,582,200		5,020,643
Singapore Airlines Ltd.		1,130,800		9,151,873
Singapore Exchange Ltd.		1,582,000		9,228,703
Singapore Press Holdings Ltd.^a		3,087,517		10,267,395
Singapore Technologies Engineering Ltd.		3,164,000		9,279,410
Singapore Telecommunications Ltd.		16,046,328		50,018,203
StarHub Ltd.		1,130,000		3,757,763
United Overseas Bank Ltd.^a		2,539,000		46,651,925
UOL Group Ltd.		904,000		4,599,864
Wilmar International Ltd.		3,842,000		9,728,531
Yangzijiang Shipbuilding		3,842,000		3,586,626

				398,207,711

TOTAL COMMON STOCKS
(Cost: $2,996,489,764)				3,439,205,801

RIGHTS — 0.04%

SINGAPORE — 0.04%
Oversea-Chinese Banking Corp. Ltd.^b		649,825		1,223,678

				1,223,678

TOTAL RIGHTS
(Cost: $0)				1,223,678


SCHEDULES OF INVESTMENTS			43

Schedule of Investments (Continued)

iSHARES^® MSCI PACIFIC EX JAPAN ETF

August 31, 2014


Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.08%

MONEY MARKET FUNDS — 1.08%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^d,e,f		34,859,363	$	34,859,363
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		2,194,493		2,194,493
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^d,e		367,813		367,813

				37,421,669

TOTAL SHORT-TERM INVESTMENTS
(Cost: $37,421,669)				37,421,669

TOTAL INVESTMENTS IN SECURITIES — 100.17%
(Cost: $3,033,911,433)				3,477,851,148
Other Assets, Less Liabilities — (0.17)%				(5,802,828	)

NET ASSETS — 100.00%			$	3,472,048,320

^a	All or a portion of this security represents a security on loan. See Note 1.

^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 1.

See notes to financial statements.


44		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SINGAPORE ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 97.46%

AEROSPACE & DEFENSE — 2.10%
Singapore Technologies Engineering Ltd.		7,050,000	$	20,676,309

				20,676,309
AIRLINES — 2.32%
Singapore Airlines Ltd.		2,820,467		22,826,809

				22,826,809
COMMERCIAL BANKS — 33.96%
DBS Group Holdings Ltd.		8,460,500		121,488,970
Oversea-Chinese Banking Corp. Ltd.		12,690,000		101,686,766
United Overseas Bank Ltd.^a		6,048,000		111,126,760

				334,302,496
DISTRIBUTORS — 2.59%
Jardine Cycle & Carriage Ltd.		705,000		25,455,587

				25,455,587
DIVERSIFIED FINANCIAL SERVICES — 2.51%
Singapore Exchange Ltd.		4,230,000		24,675,989

				24,675,989
DIVERSIFIED TELECOMMUNICATION SERVICES — 12.28%
Singapore Telecommunications Ltd.		38,775,568		120,867,791

				120,867,791
FOOD & STAPLES RETAILING — 0.46%
Olam International Ltd.		2,115,941		4,493,164

				4,493,164
FOOD PRODUCTS — 3.76%
Golden Agri-Resources Ltd.		33,840,628		13,829,657
Wilmar International Ltd.		9,165,000		23,207,180

				37,036,837
HOTELS, RESTAURANTS & LEISURE — 2.94%
Genting Singapore PLC		29,610,400		28,947,224

				28,947,224
INDUSTRIAL CONGLOMERATES — 6.70%
Keppel Corp. Ltd.		5,236,100		45,733,795
SembCorp Industries Ltd.		4,935,000		20,246,965

				65,980,760
MACHINERY — 2.23%
SembCorp Marine Ltd.^a		4,230,000		13,422,653
Yangzijiang Shipbuilding		9,165,000		8,555,812

				21,978,465


Security	Shares		Value

MEDIA — 2.79%
Singapore Press Holdings Ltd.^a		8,266,000	$	27,488,201

				27,488,201
REAL ESTATE INVESTMENT TRUSTS (REITS) — 5.09%
Ascendas REIT		9,870,335		18,586,712
CapitaCommercial Trust		9,870,000		13,445,250
CapitaMall Trust Management Ltd.		11,280,800		18,078,930

				50,110,892
REAL ESTATE MANAGEMENT & DEVELOPMENT — 10.49%
CapitaLand Ltd.		11,985,000		31,884,451
City Developments Ltd.		2,115,000		16,998,638
Global Logistic Properties Ltd.		14,805,000		33,810,850
Keppel Land Ltd.		3,525,000		9,801,474
UOL Group Ltd.		2,115,000		10,761,849

				103,257,262
ROAD & RAIL — 2.02%
ComfortDelGro Corp. Ltd.		9,870,000		19,851,516

				19,851,516
TRADING COMPANIES & DISTRIBUTORS — 2.26%
Noble Group Ltd.		20,445,999		22,281,789

				22,281,789
TRANSPORTATION INFRASTRUCTURE — 2.01%
Hutchison Port Holdings Trust^a		27,495,000		19,796,400

				19,796,400
WIRELESS TELECOMMUNICATION SERVICES — 0.95%
StarHub Ltd.		2,820,000		9,377,779

				9,377,779

TOTAL COMMON STOCKS
(Cost: $898,358,449)				959,405,270

RIGHTS — 0.30%

COMMERCIAL BANKS — 0.30%
Oversea-Chinese Banking Corp. Ltd.^b		1,586,250		2,987,049

				2,987,049

TOTAL RIGHTS
(Cost: $0)				2,987,049


SCHEDULES OF INVESTMENTS			45

Schedule of Investments (Continued)

iSHARES^® MSCI SINGAPORE ETF

August 31, 2014


Security	Shares		Value

SHORT-TERM INVESTMENTS — 4.50%

MONEY MARKET FUNDS — 4.50%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		41,437,301	$	41,437,301
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		2,608,592		2,608,592
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		243,417		243,417

				44,289,310

TOTAL SHORT-TERM INVESTMENTS
(Cost: $44,289,310)				44,289,310

TOTAL INVESTMENTS IN SECURITIES — 102.26%
(Cost: $942,647,759)				1,006,681,629
Other Assets, Less Liabilities — (2.26)%				(22,226,687	)

NET ASSETS — 100.00%			$	984,454,942

^a	All or a portion of this security represents a security on loan. See Note 1.

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

Financial futures contracts purchased as of August 31, 2014 were as follows:


Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Unrealized Appreciation (Depreciation)
	195	MSCI Singapore Index (Sept. 2014)	Singapore	$	11,794,223	$	(42,726)

See notes to financial statements.


46		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2014


Security	Shares		Value
COMMON STOCKS — 95.62%

AEROSPACE & DEFENSE — 0.26%
Korea Aerospace Industries Ltd.^a		356,199	$	12,629,177

				12,629,177
AIR FREIGHT & LOGISTICS — 0.62%
Hyundai Glovis Co. Ltd.		102,156		30,477,035

				30,477,035
AIRLINES — 0.18%
Korean Air Lines Co. Ltd.^b		248,318		8,926,664

				8,926,664
AUTO COMPONENTS — 4.56%
Halla Visteon Climate Control Corp.^a		299,372		15,914,149
Hankook Tire Co. Ltd.		579,478		30,061,189
Hyundai Mobis Co. Ltd.		519,740		150,701,277
Hyundai Wia Corp.		120,498		26,501,360

				223,177,975
AUTOMOBILES — 7.98%
Hyundai Motor Co.		1,169,911		268,838,959
Kia Motors Corp.		2,012,575		121,475,014

				390,313,973
BEVERAGES — 0.12%
Hite Jinro Co. Ltd.^a		251,255		5,724,139

				5,724,139
BUILDING PRODUCTS — 0.51%
KCC Corp.		37,101		24,991,354

				24,991,354
CAPITAL MARKETS — 1.58%
Daewoo Securities Co. Ltd.^b		1,465,020		17,049,397
Korea Investment Holdings Co. Ltd.		320,115		16,069,681
Mirae Asset Securities Co. Ltd.		194,795		9,307,972
Samsung Securities Co. Ltd.		479,909		23,452,331
Woori Investment & Securities Co. Ltd.^a		995,682		11,636,502

				77,515,883
CHEMICALS — 3.71%
Hanwha Chemical Corp.		854,506		13,821,094
Hanwha Corp.		372,448		11,111,546
Hyosung Corp.		184,469		14,263,395
Kumho Petro Chemical Co. Ltd.^a		114,066		9,145,979
LG Chem Ltd.		354,870		94,321,678


Security	Shares		Value
Lotte Chemical Corp.		122,144	$	19,695,788
OCI Co. Ltd.^a,b		132,214		18,972,471

				181,331,951
COMMERCIAL BANKS — 9.64%
BS Financial Group Inc.		1,503,845		24,917,004
DGB Financial Group Inc.		1,081,250		18,874,821
Hana Financial Group Inc.		2,176,304		91,327,714
Industrial Bank of Korea		1,694,075		29,405,513
KB Financial Group Inc.		2,797,872		114,652,184
Shinhan Financial Group Co. Ltd.		3,085,623		159,766,465
Woori Finance Holdings Co. Ltd.^b		2,410,192		32,684,195

				471,627,896
COMMERCIAL SERVICES & SUPPLIES — 0.23%
S1 Corp.		154,928		11,306,940

				11,306,940
CONSTRUCTION & ENGINEERING — 2.48%
Daelim Industrial Co. Ltd.		220,106		18,972,597
Daewoo Engineering & Construction Co. Ltd.^a,b		894,892		7,519,582
Doosan Heavy Industries & Construction Co. Ltd.		445,526		12,676,587
GS Engineering & Construction Corp.^a,b		392,990		14,282,441
Hyundai Development Co. Engineering & Construction		448,115		18,208,332
Hyundai Engineering & Construction Co. Ltd.		560,893		35,347,958
Samsung Engineering Co. Ltd.^a,b		226,144		14,251,789

				121,259,286
CONSUMER FINANCE — 0.28%
Samsung Card Co. Ltd.		287,381		13,817,076

				13,817,076
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.73%
KT Corp.		499,179		17,230,894
LG Uplus Corp.		1,707,013		18,434,629

				35,665,523
ELECTRIC UTILITIES — 1.67%
Korea Electric Power Corp.		1,961,851		81,651,080

				81,651,080


SCHEDULES OF INVESTMENTS			47

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2014


Security	Shares		Value
ELECTRICAL EQUIPMENT — 0.37%
LS Corp.		147,269	$	10,167,000
LS Industrial Systems Co. Ltd.		127,169		7,851,255

				18,018,255
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.35%
LG Display Co. Ltd.^b		1,788,281		61,816,903
LG Innotek Co. Ltd.^b		102,371		13,579,466
Samsung Electro-Mechanics Co. Ltd.^a		467,142		25,293,255
Samsung SDI Co. Ltd.		421,687		63,006,638

				163,696,262
FOOD & STAPLES RETAILING — 0.80%
E-Mart Co. Ltd.		162,440		39,090,054

				39,090,054
FOOD PRODUCTS — 1.22%
CJ CheilJedang Corp.		62,105		23,152,710
Lotte Confectionery Co. Ltd.		5,777		12,363,618
ORION Corp.^a		28,111		24,203,267

				59,719,595
GAS UTILITIES — 0.26%
Korea Gas Corp.^b		226,908		12,621,541

				12,621,541
HOTELS, RESTAURANTS & LEISURE — 1.46%
Hotel Shilla Co. Ltd.^a		251,295		29,492,682
Kangwon Land Inc.		886,108		31,504,703
Paradise Co. Ltd.^a		274,154		10,626,019

				71,623,404
HOUSEHOLD DURABLES — 1.96%
Coway Co. Ltd.		417,359		35,028,602
LG Electronics Inc.^a		817,890		60,981,788

				96,010,390
HOUSEHOLD PRODUCTS — 0.75%
LG Household & Health Care Ltd.		72,634		36,748,599

				36,748,599
INDUSTRIAL CONGLOMERATES — 2.53%
CJ Corp.		114,998		20,301,437
Doosan Corp.		64,421		7,655,930
LG Corp.		732,382		51,211,484
Samsung Techwin Co. Ltd.		301,529		12,683,280
SK Holdings Co. Ltd.		201,644		31,918,597

				123,770,728


Security	Shares		Value
INSURANCE — 3.42%
Dongbu Insurance Co. Ltd.		337,344	$	20,361,411
Hanwha Life Insurance Co. Ltd.		1,822,070		12,507,133
Hyundai Marine & Fire Insurance Co. Ltd.		515,770		15,845,195
Samsung Fire & Marine Insurance Co. Ltd.		254,868		69,752,818
Samsung Life Insurance Co. Ltd.		465,665		48,911,014

				167,377,571
INTERNET SOFTWARE & SERVICES — 3.30%
NAVER Corp.		212,981		161,319,008

				161,319,008
IT SERVICES — 0.67%
SK C&C Co. Ltd.		155,532		32,595,838

				32,595,838
MACHINERY — 2.53%
Daewoo Shipbuilding & Marine Engineering Co. Ltd.^a		795,764		19,502,673
Doosan Infracore Co. Ltd.^a,b		1,099,778		12,853,069
Hyundai Heavy Industries Co. Ltd.		323,763		45,980,445
Hyundai Mipo Dockyard Co. Ltd.^a		91,614		11,655,610
Samsung Heavy Industries Co. Ltd.		1,254,548		33,716,094

				123,707,891
MARINE — 0.14%
Hyundai Merchant Marine Co. Ltd.^a,b		581,867		7,058,498

				7,058,498
MEDIA — 0.30%
Cheil Worldwide Inc.^a,b		647,727		14,660,816

				14,660,816
METALS & MINING — 4.74%
Hyundai Steel Co.		541,411		40,420,940
Korea Zinc Co. Ltd.		66,292		27,492,269
POSCO		496,990		163,710,893

				231,624,102
MULTILINE RETAIL — 1.23%
Hyundai Department Store Co. Ltd.		120,976		18,910,889
Lotte Shopping Co. Ltd.		86,652		28,372,665


48		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2014


Security	Shares		Value
Shinsegae Co. Ltd.		56,191	$	12,912,376

				60,195,930
OIL, GAS & CONSUMABLE FUELS — 1.58%
GS Holdings Corp.		408,126		17,328,097
S-Oil Corp.^a		359,290		16,601,151
SK Innovation Co. Ltd.		464,737		43,130,087

				77,059,335
PERSONAL PRODUCTS — 1.52%
AmorePacific Corp.		24,749		51,501,938
AmorePacific Group		21,944		22,897,334

				74,399,272
PHARMACEUTICALS — 0.64%
Celltrion Inc.^a,b		491,729		20,198,740
Yuhan Corp.		65,099		11,107,182

				31,305,922
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 24.01%
Samsung Electronics Co. Ltd.		808,240		983,646,294
SK Hynix Inc.^b		4,264,964		190,965,398

				1,174,611,692
SOFTWARE — 0.36%
NCsoft Corp.^a		121,952		17,439,755

				17,439,755
TOBACCO — 1.61%
KT&G Corp.		839,369		78,560,203

				78,560,203
TRADING COMPANIES & DISTRIBUTORS — 1.90%
Daewoo International Corp.^a		368,411		13,534,503
Samsung C&T Corp.		956,670		70,385,702
SK Networks Co. Ltd.^b		932,586		9,041,196

				92,961,401
WIRELESS TELECOMMUNICATION SERVICES — 0.42%
SK Telecom Co. Ltd.		77,125		20,765,447

				20,765,447

TOTAL COMMON STOCKS
(Cost: $2,607,754,743)				4,677,357,461

PREFERRED STOCKS — 4.19%

AUTOMOBILES — 1.48%
Hyundai Motor Co. Ltd.		186,445		27,581,982
Hyundai Motor Co. Ltd. Series 2		290,430		44,970,176

				72,552,158


Security	Shares		Value
CHEMICALS — 0.22%
LG Chem Ltd.		62,319	$	10,847,974

				10,847,974
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.49%
Samsung Electronics Co. Ltd.		120,950		121,671,680

				121,671,680

TOTAL PREFERRED STOCKS
(Cost: $142,816,435)				205,071,812

SHORT-TERM INVESTMENTS — 3.46%

MONEY MARKET FUNDS — 3.46%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		159,044,523		159,044,523
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		10,012,289		10,012,289

				169,056,812

TOTAL SHORT-TERM INVESTMENTS
(Cost: $169,056,812)				169,056,812

TOTAL INVESTMENTS IN SECURITIES — 103.27%
(Cost: $2,919,627,990)				5,051,486,085
Other Assets, Less Liabilities — (3.27)%				(159,867,178	)

NET ASSETS — 100.00%			$	4,891,618,907

^a	All or a portion of this security represents a security on loan. See Note 1.

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			49

Schedule of Investments

iSHARES^® MSCI TAIWAN ETF

August 31, 2014


Security	Shares		Value
COMMON STOCKS — 98.80%

AIRLINES — 0.34%
China Airlines Ltd.^a		17,059,761	$	5,707,419
EVA Airways Corp.^a		11,033,212		5,536,815

				11,244,234
AUTO COMPONENTS — 0.70%
Cheng Shin Rubber Industry Co. Ltd.		10,030,670		23,155,057

				23,155,057
AUTOMOBILES — 0.36%
China Motor Co. Ltd.		4,012,000		3,838,785
Yulon Motor Co. Ltd.^b		5,015,362		8,053,976

				11,892,761
BUILDING PRODUCTS — 0.16%
Taiwan Glass Industry Corp.^b		6,018,693		5,195,038

				5,195,038
CAPITAL MARKETS — 0.91%
Yuanta Financial Holding Co. Ltd.		55,516,164		29,902,820

				29,902,820
CHEMICALS — 6.29%
Formosa Chemicals & Fibre Corp.		20,786,610		51,739,642
Formosa Plastics Corp.^b		26,815,518		69,527,196
Nan Ya Plastics Corp.		30,090,938		70,972,755
Taiwan Fertilizer Co. Ltd.^b		5,015,000		9,513,073
TSRC Corp.		4,012,556		5,618,021

				207,370,687
COMMERCIAL BANKS — 9.85%
Chang Hwa Commercial Bank Ltd.		30,691,531		19,098,458
China Development Financial Holding Corp.^b		88,264,508		29,824,577
CTBC Financial Holding Co. Ltd.		86,258,193		62,766,287
E.Sun Financial Holding Co. Ltd.		40,120,463		26,375,173
First Financial Holding Co. Ltd.		48,294,524		29,890,724
Hua Nan Financial Holdings Co. Ltd.		39,257,928		24,363,412
Mega Financial Holding Co. Ltd.		64,192,271		55,407,591
SinoPac Financial Holdings Co. Ltd.		46,613,665		21,286,915


Security	Shares		Value
Taishin Financial Holdings Co. Ltd.		52,925,676	$	26,913,912
Taiwan Business Bank Ltd.^a		25,075,770		7,852,301
Taiwan Cooperative Financial Holding Co. Ltd.		37,912,971		21,182,202

				324,961,552
COMPUTERS & PERIPHERALS — 9.55%
Acer Inc.^a,b		17,051,841		14,119,304
Advantech Co. Ltd.		1,947,771		18,278,375
ASUSTeK Computer Inc.		4,495,857		47,078,612
Catcher Technology Co. Ltd.^b		4,012,743		40,677,176
Chicony Electronics Co. Ltd.		3,024,624		9,916,634
Clevo Co.		3,009,991		5,689,584
Compal Electronics Inc.		27,081,554		24,100,277
Foxconn Technology Co. Ltd.		6,018,724		15,101,932
HTC Corp.^b		4,012,884		18,459,763
Inventec Corp.^b		15,045,868		11,829,106
Lite-On Technology Corp.		13,664,565		22,651,986
Pegatron Corp.^b		10,030,037		21,274,463
Quanta Computer Inc.		17,051,240		48,146,557
Wistron Corp.^b		15,045,113		17,616,934

				314,940,703
CONSTRUCTION & ENGINEERING — 0.22%
CTCI Corp.		4,012,000		7,180,944

				7,180,944
CONSTRUCTION MATERIALS — 1.60%
Asia Cement Corp.^b		14,064,136		19,291,400
Taiwan Cement Corp.		21,063,504		33,472,723

				52,764,123
DIVERSIFIED FINANCIAL SERVICES — 2.63%
Chailease Holding Co. Ltd.^b		6,018,940		16,270,399
Fubon Financial Holding Co. Ltd.		43,129,515		70,414,357

				86,684,756
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.50%
Asia Pacific Telecom Co. Ltd.^b		12,036,000		7,771,526
Chunghwa Telecom Co. Ltd.		24,067,648		74,802,513

				82,574,039
ELECTRICAL EQUIPMENT — 0.70%
Teco Electric and Machinery Co. Ltd.^b		12,036,092		15,140,498
Walsin Lihwa Corp.^a		22,066,069		7,899,063
Ya Hsin Industrial Co. Ltd.^a,c		6,845,461		2

				23,039,563


50		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI TAIWAN ETF

August 31, 2014


Security	Shares		Value
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 15.81%
AU Optronics Corp.^b		56,168,830	$	27,905,426
Delta Electronics Inc.		11,713,180		82,292,628
Hon Hai Precision Industry Co. Ltd.		80,240,194		273,816,088
Innolux Corp.^b		50,148,873		25,501,844
Largan Precision Co. Ltd.		645,794		53,473,182
Pacific Electric Wire & Cable Co. Ltd.^a,c		197		—
Simplo Technology Co. Ltd.		1,896,835		10,661,189
Synnex Technology International Corp.^b		8,024,538		12,241,981
TPK Holding Co. Ltd.^b		1,491,466		10,129,225
Unimicron Technology Corp.^b		8,552,794		7,224,973
WPG Holdings Co. Ltd.		9,027,744		11,763,959
Zhen Ding Technology Holding Ltd.^b		2,006,072		6,630,867

				521,641,362
FOOD & STAPLES RETAILING — 0.84%
President Chain Store Corp.		3,652,215		27,675,238

				27,675,238
FOOD PRODUCTS — 1.84%
Standard Foods Corp.^b		2,186,859		5,618,868
Uni-President Enterprises Co.		30,090,528		55,066,054

				60,684,922
HOTELS, RESTAURANTS & LEISURE — 0.08%
Formosa International Hotels Corp.		237,184		2,666,192

				2,666,192
INDUSTRIAL CONGLOMERATES — 0.66%
Far Eastern New Century Corp.		20,461,239		21,939,503

				21,939,503
INSURANCE — 3.71%
Cathay Financial Holding Co. Ltd.		52,558,483		89,676,741
China Life Insurance Co. Ltd.		18,054,253		16,761,363
Shin Kong Financial Holding Co. Ltd.^b		49,147,898		16,031,582

				122,469,686
LEISURE EQUIPMENT & PRODUCTS — 0.79%
Giant Manufacturing Co. Ltd.		1,947,590		16,191,636
Merida Industry Co. Ltd.		1,326,100		9,760,359

				25,951,995
MACHINERY — 0.37%
Hiwin Technologies Corp.^b		1,248,246		12,194,103

				12,194,103


Security	Shares		Value
MARINE — 0.48%
Evergreen Marine Corp. Ltd.^a		11,033,766	$	6,736,797
U-Ming Marine Transport Corp.		3,009,800		4,954,154
Yang Ming Marine Transport Corp.^a		9,027,635		4,062,217

				15,753,168
METALS & MINING — 2.01%
China Steel Corp.^b		76,729,977		66,229,518

				66,229,518
MULTILINE RETAIL — 0.19%
Far Eastern Department Stores Ltd.		6,138,456		6,181,480

				6,181,480
OIL, GAS & CONSUMABLE FUELS — 0.54%
Formosa Petrochemical Corp.^b		7,021,950		17,736,646

				17,736,646
PHARMACEUTICALS — 0.06%
ScinoPharm Taiwan Ltd.^b		1,043,828		2,130,226

				2,130,226
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.52%
Farglory Land Development Co. Ltd.		2,006,270		2,785,507
Highwealth Construction Corp.		4,012,300		7,114,364
Ruentex Development Co. Ltd.^b		4,012,487		7,208,664

				17,108,535
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 31.58%
Advanced Semiconductor Engineering Inc.		40,120,448		49,998,718
Epistar Corp.^b		5,015,047		10,905,741
Hermes Microvision Inc.^b		252,000		10,833,542
Inotera Memories Inc.^a		15,045,000		24,613,188
Kinsus Interconnect Technology Corp.		1,793,043		7,588,362
MediaTek Inc.		9,027,175		150,853,078
Novatek Microelectronics Corp. Ltd.		3,557,544		18,269,450
Phison Electronics Corp.		896,698		6,494,877
Powertech Technology Inc.^b		4,012,036		7,610,526
Radiant Opto-Electronics Corp.^b		2,904,583		12,535,461
Realtek Semiconductor Corp.^b		2,893,063		10,549,970
Siliconware Precision Industries Co. Ltd.		19,057,214		27,797,947


SCHEDULES OF INVESTMENTS			51

Schedule of Investments (Continued)

iSHARES^® MSCI TAIWAN ETF

August 31, 2014


Security	Shares		Value
Taiwan Semiconductor Manufacturing Co. Ltd.^b		158,474,882	$	657,429,129
Transcend Information Inc.		1,003,905		3,375,402
United Microelectronics Corp.^b		78,234,501		35,727,102
Vanguard International Semiconductor Corp.		5,015,000		7,340,334

				1,041,922,827
SPECIALTY RETAIL — 0.68%
Hotai Motor Co. Ltd.		1,600,000		22,508,824

				22,508,824
TEXTILES, APPAREL & LUXURY GOODS — 1.12%
Eclat Textile Co. Ltd.		1,043,080		8,724,177
Formosa Taffeta Co. Ltd.^b		5,015,515		5,327,532
Pou Chen Corp.		13,039,103		15,071,712
Ruentex Industries Ltd.		3,176,262		7,704,086

				36,827,507
WIRELESS TELECOMMUNICATION SERVICES — 1.71%
Far EasTone Telecommunications Co. Ltd.		10,030,259		21,375,604
Taiwan Mobile Co. Ltd.		11,033,609		35,178,500

				56,554,104

TOTAL COMMON STOCKS
(Cost: $1,729,095,690)				3,259,082,113

SHORT-TERM INVESTMENTS — 7.02%

MONEY MARKET FUNDS — 7.02%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^d,e,f		206,882,568		206,882,568
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		13,023,825		13,023,825
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^d,e		11,720,753		11,720,753

				231,627,146

TOTAL SHORT-TERM INVESTMENTS
(Cost: $231,627,146)				231,627,146

TOTAL INVESTMENTS IN SECURITIES — 105.82%
(Cost: $1,960,722,836)				3,490,709,259
Other Assets, Less Liabilities — (5.82)%				(192,045,450	)

NET ASSETS — 100.00%			$	3,298,663,809

^a	Non-income earning security.

^b	All or a portion of this security represents a security on loan. See Note 1.

^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 1.

Financial futures contracts purchased as of August 31, 2014 were as follows:


Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Unrealized Appreciation (Depreciation)
	925	MSCI Taiwan Index (Sept. 2014)	Singapore	$	31,838,500	$	279,225

See notes to financial statements.


52		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2014


Security	Shares		Value
COMMON STOCKS — 99.49%

AIRLINES — 0.43%
Nok Airlines PCL NVDR		700,800	$	351,058
Thai Airways International PCL NVDR^a		4,378,166		2,083,536

				2,434,594
AUTO COMPONENTS — 0.54%
Somboon Advance Technology PCL NVDR		1,843,225		1,027,220
Sri Trang Agro-Industry PCL NVDR		4,679,571		2,065,809

				3,093,029
BUILDING PRODUCTS — 0.42%
Diamond Building Products PCL NVDR		1,746,700		341,793
Dynasty Ceramic PCL NVDR		1,129,000		2,058,994

				2,400,787
CAPITAL MARKETS — 0.06%
Asia Plus Securities PCL NVDR		3,195,100		372,128

				372,128
CHEMICALS — 3.68%
Indorama Ventures PCL NVDR		7,385,310		6,243,061
PTT Global Chemical PCL NVDR		6,932,607		13,457,158
Siam Gas and Petrochemicals PCL NVDR		2,923,100		1,327,018

				21,027,237
COMMERCIAL BANKS — 26.99%
Bangkok Bank PCL Foreign		1,739,200		11,162,680
Bangkok Bank PCL NVDR		2,264,600		14,534,847
Kasikornbank PCL Foreign		5,120,000		36,227,927
Kasikornbank PCL NVDR		2,873,200		20,240,138
Kiatnakin Bank PCL NVDR		2,299,573		3,023,859
Krung Thai Bank PCL NVDR		16,990,300		12,500,690
LH Financial Group PCL NVDR		34,107,561		1,815,368
Siam Commercial Bank PCL NVDR		7,450,400		43,620,063
Thanachart Capital PCL NVDR		3,594,700		3,939,089
TISCO Financial Group PCL NVDR		2,434,810		3,354,153
TMB Bank PCL NVDR		39,917,100		3,799,248

				154,218,062
CONSTRUCTION & ENGINEERING — 1.56%
CH. Karnchang PCL NVDR^b		3,257,100		2,753,340


Security	Shares		Value
Italian-Thai Development PCL NVDR^a		12,079,248	$	2,004,384
Sino-Thai Engineering & Construction PCL NVDR		4,324,828		3,452,821
Sriracha Construction PCL NVDR		317,400		350,293
Toyo-Thai Corp. PCL NVDR^b		353,000		334,322

				8,895,160
CONSTRUCTION MATERIALS — 4.44%
Siam Cement (The) PCL Foreign		1,252,300		17,251,471
Siam Cement (The) PCL NVDR^b		429,300		5,913,964
TPI Polene PCL NVDR		4,285,100		2,186,823

				25,352,258
CONSUMER FINANCE — 0.11%
Krungthai Card PCL NVDR		291,100		649,370

				649,370
CONTAINERS & PACKAGING — 0.24%
Polyplex PCL NVDR^a		3,581,550		1,356,818

				1,356,818
DISTRIBUTORS — 0.31%
Energy Earth PCL NVDR		7,525,300		1,401,864
Jaymart PCL NVDR		837,800		359,357

				1,761,221
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.97%
Jasmine International PCL NVDR^b		18,965,868		3,800,299
Samart Telcoms PCL NVDR		694,400		413,074
Thaicom PCL NVDR		1,411,100		1,745,099
True Corp. PCL NVDR^a		30,554,672		11,001,213

				16,959,685
ELECTRICAL EQUIPMENT — 0.10%
Gunkul Engineering PCL NVDR		914,266		558,177

				558,177
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.85%
Cal-Comp Electronics (Thailand) PCL NVDR		19,416,912		1,811,597
Delta Electronics (Thailand) PCL NVDR		2,838,644		5,776,827
Hana Microelectronics PCL NVDR		3,686,200		4,472,143
KCE Electronics PCL NVDR		483,800		586,952
Loxley PCL NVDR		2,783,805		381,749
Samart Corp. PCL NVDR		3,444,237		2,749,782


SCHEDULES OF INVESTMENTS			53

Schedule of Investments (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2014


Security	Shares		Value
SVI PCL NVDR		3,767,615	$	521,380

				16,300,430
FOOD & STAPLES RETAILING — 4.97%
CP All PCL NVDR		19,100,600		28,405,714

				28,405,714
FOOD PRODUCTS — 3.26%
Charoen Pokphand Foods PCL NVDR		13,090,700		12,090,659
GFPT PCL NVDR		4,579,400		2,595,089
Khon Kaen Sugar Industry PCL NVDR		4,162,500		1,798,450
Thai Vegetable Oil PCL NVDR		3,015,853		2,124,505

				18,608,703
HEALTH CARE PROVIDERS & SERVICES — 3.43%
Bangkok Chain Hospital PCL NVDR		6,740,425		2,099,788
Bangkok Dusit Medical Services PCL NVDR		12,908,100		7,880,649
Bumrungrad Hospital PCL NVDR		1,891,076		7,992,964
Chularat Hospital PCL NVDR		907,700		503,015
Vibhavadi Medical Center PCL NVDR		2,090,360		1,132,224

				19,608,640
HOTELS, RESTAURANTS & LEISURE — 2.04%
Central Plaza Hotel PCL NVDR		3,134,200		3,876,046
Erawan Group PCL (The) NVDR		2,702,800		399,412
Minor International PCL NVDR		6,376,900		7,037,749
MK Restaurants Group PCL NVDR^b		195,900		374,136

				11,687,343
HOUSEHOLD PRODUCTS — 0.06%
DSG International Thailand PCL NVDR		1,360,980		355,798

				355,798
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 1.43%
CK Power PCL NVDR^a		835,800		423,919
Glow Energy PCL NVDR		2,671,700		7,319,153
SPCG PCL NVDR		515,400		427,617

				8,170,689
INSURANCE — 0.07%
Thai Reinsurance PCL NVDR^a		3,448,940		375,777

				375,777


Security	Shares		Value
INTERNET & CATALOG RETAIL — 0.08%
OfficeMate PCL NVDR		289,800	$	453,663

				453,663
MACHINERY — 0.07%
BJC Heavy Industries PCL NVDR		311,400		380,232

				380,232
MARINE — 1.00%
Precious Shipping PCL NVDR^b		2,608,100		2,225,132
Thoresen Thai Agencies PCL NVDR^a		4,779,606		3,501,653

				5,726,785
MEDIA — 2.02%
BEC World PCL NVDR		4,875,900		7,251,260
Major Cineplex Group PCL NVDR		3,386,800		2,300,988
MCOT PCL NVDR		1,241,200		981,224
RS PCL NVDR		1,401,700		340,112
VGI Global Media PCL NVDR^b		1,683,820		701,153

				11,574,737
METALS & MINING — 0.66%
G J Steel PCL NVDR^a		526,252,700		988,577
STP & I PCL NVDR		3,441,200		2,327,174
Univentures PCL NVDR		1,312,800		439,792

				3,755,543
OIL, GAS & CONSUMABLE FUELS — 16.33%
Bangchak Petroleum PCL NVDR		2,406,600		2,580,653
Banpu PCL NVDR		5,845,400		5,902,134
Energy Absolute PCL NVDR		3,046,000		2,355,548
Esso (Thailand) PCL NVDR^a		7,743,700		1,430,427
IRPC PCL NVDR		52,375,000		5,444,114
PTT Exploration & Production PCL NVDR		6,049,884		31,158,607
PTT PCL NVDR		3,765,400		37,842,623
Thai Oil PCL NVDR		4,058,300		6,575,361

				93,289,467
PHARMACEUTICALS — 0.06%
Mega Lifesciences PCL NVDR		573,900		353,971

				353,971
REAL ESTATE MANAGEMENT & DEVELOPMENT — 7.70%
Amata Corp. PCL NVDR		3,971,100		2,076,311
Ananda Development PCL NVDR		5,327,800		567,142
AP (Thailand) PCL NVDR		7,554,960		1,892,288
Asset Corp. PCL NVDR		12,366,037		1,486,712
Bangkok Land PCL NVDR		52,312,800		3,603,261


54		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2014


Security	Shares		Value
Central Pattana PCL NVDR		5,824,300	$	8,798,449
Country Group Development PCL NVDR^a		5,954,400		249,809
Golden Land Property Development PCL NVDR^a		1,634,100		526,964
Hemaraj Land and Development PCL NVDR		27,961,800		3,764,425
LPN Development PCL NVDR		3,440,647		2,337,572
MBK PCL NVDR		729,200		369,851
Natural Park PCL NVDR^a		212,525,300		399,233
Pruksa Real Estate PCL NVDR		4,210,980		4,548,491
Quality Houses PCL NVDR		26,032,141		3,618,745
Rojana Industrial Park PCL NVDR		1,599,900		405,735
Sansiri PCL NVDR		22,140,528		1,441,838
Siam Future Development PCL NVDR		6,364,173		1,315,076
Supalai PCL NVDR		4,015,000		3,268,316
Thai Factory Development PCL NVDR		1,732,300		349,823
Ticon Industrial Connection PCL NVDR		4,296,091		2,367,289
WHA Corp. PCL NVDR		529,803		605,442

				43,992,772
ROAD & RAIL — 1.10%
BTS Group Holdings PCL NVDR		20,784,300		6,279,539

				6,279,539
SOFTWARE — 0.07%
Mono Technology PCL NVDR		3,076,220		402,586

				402,586
SPECIALTY RETAIL — 1.16%
Home Product Center PCL NVDR		13,042,409		4,287,580
Siam Global House PCL NVDR^b		5,036,104		2,333,573

				6,621,153
TEXTILES, APPAREL & LUXURY GOODS — 0.07%
MC Group PLC NVDR		664,400		397,309

				397,309
TRANSPORTATION INFRASTRUCTURE — 3.32%
Airports of Thailand PCL NVDR		1,884,800		13,985,523
Bangkok Aviation Fuel PCL NVDR		714,400		816,393
Bangkok Expressway PCL NVDR		2,450,900		2,992,646
Bangkok Metro PCL NVDR^a		15,043,241		814,803
Namyong Terminal PCL NVDR		692,300		346,800

				18,956,165


Security	Shares		Value
WATER UTILITIES — 0.67%
Eastern Water Resources and Management PCL NVDR		988,700	$	346,695
Thai Tap Water Supply PCL NVDR		8,898,166		3,482,375

				3,829,070
WIRELESS TELECOMMUNICATION SERVICES — 5.22%
Advanced Information Service PCL NVDR		4,562,219		29,852,967

				29,852,967

TOTAL COMMON STOCKS
(Cost: $592,868,917)				568,457,579

WARRANTS — 0.03%

CHEMICALS — 0.00%
Indorama Ventures PCL NVDR
(Expires 8/24/17)^a		726,421		1
Indorama Ventures PCL NVDR
(Expires 8/24/18)^a		558,785		—

				1
DISTRIBUTORS — 0.02%
Energy Earth PCL NVDR
(Expires 9/15/19)^a		3,609,619		89,280

				89,280
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.00%
Loxley PCL NVDR
(Expires 4/21/16)^a		50,876		—

				—
MARINE — 0.00%
Thoresen Thai Agencies PCL NVDR
(Expires 2/28/17)^a		1		—

				—
METALS & MINING — 0.00%
G J Steel PCL NVDR
(Expires 02/07/20)^a		30		—

				—
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.00%
Country Group Development PCL NVDR
(Expires 12/31/14)^a		3,042,533		1

				1


SCHEDULES OF INVESTMENTS			55

Schedule of Investments (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2014


Security	Shares		Value
SOFTWARE — 0.01%
Mono Technology PCL NVDR
(Expires 12/31/14)^a		1,487,250	$	78,227

				78,227

TOTAL WARRANTS
(Cost: $0)				167,509

SHORT-TERM INVESTMENTS — 0.96%

MONEY MARKET FUNDS — 0.96%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		3,695,220		3,695,220
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		232,624		232,624
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		1,586,183		1,586,183

				5,514,027

TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,514,027)				5,514,027

TOTAL INVESTMENTS IN SECURITIES — 100.48%
(Cost: $598,382,944)				574,139,115
Other Assets, Less Liabilities — (0.48)%				(2,769,509	)

NET ASSETS — 100.00%			$	571,369,606

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


56		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2014


	iShares MSCI Australia ETF			iShares MSCI Hong Kong ETF			iShares MSCI Japan Small-Cap ETF

ASSETS
Investments, at cost:
Unaffiliated	$	1,870,287,468		$	3,006,192,108		$	153,180,710
Affiliated (Note 2)		343,395			40,809,111			6,421,605

Total cost of investments	$	1,870,630,863		$	3,047,001,219		$	159,602,315

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	2,024,757,097		$	3,202,754,847		$	169,379,711
Affiliated (Note 2)		343,395			40,809,111			6,421,605

Total fair value of investments		2,025,100,492			3,243,563,958			175,801,316
Foreign currency, at value^b		7,649,119			2,848,579			216,107
Foreign currency pledged to broker, at value^b		149,148			1,633,264			—
Receivables:
Investment securities sold		9,240,472			—			—
Due from custodian (Note 4)		—			1,141,004			—
Dividends and interest		15,802,151			6,669,048			293,469
Futures variation margin		452,812			—			—

Total Assets		2,058,394,194			3,255,855,853			176,310,892


LIABILITIES
Payables:
Investment securities purchased		10,472,563			6,708,674			—
Collateral for securities on loan (Note 1)		—			26,443,665			6,405,640
Futures variation margin		—			276,020			—
Investment advisory fees (Note 2)		809,047			1,115,276			68,547

Total Liabilities		11,281,610			34,543,635			6,474,187


NET ASSETS	$	2,047,112,584		$	3,221,312,218		$	169,836,705


Net assets consist of:
Paid-in capital	$	2,107,981,108		$	3,435,830,184		$	159,482,654
Undistributed (distributions in excess of) net investment income		4,863,922			6,189,736			(1,026,401	)
Accumulated net realized loss		(220,671,505	)		(416,994,632	)		(4,811,465	)
Net unrealized appreciation		154,939,059			196,286,930			16,191,917

NET ASSETS	$	2,047,112,584		$	3,221,312,218		$	169,836,705


Shares outstanding^c		75,400,000			147,150,000			3,000,000


Net asset value per share	$	27.15		$	21.89		$	56.61

^a	Securities on loan with values of $ —, $24,861,103 and $6,083,697, respectively. See Note 1.

^b	Cost of foreign currency including currency pledged to broker, if any: $7,810,918, $4,481,749 and $220,226, respectively.

^c	$0.001 par value, number of shares authorized: 627.8 million, 375 million and 500 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			57

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI Malaysia ETF			iShares MSCI Pacific ex Japan ETF			iShares MSCI Singapore ETF

ASSETS
Investments, at cost:
Unaffiliated	$	329,295,748		$	2,996,489,764		$	898,358,449
Affiliated (Note 2)		49,820			37,421,669			44,289,310

Total cost of investments	$	329,345,568		$	3,033,911,433		$	942,647,759

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	783,496,888		$	3,440,429,479		$	962,392,319
Affiliated (Note 2)		49,820			37,421,669			44,289,310

Total fair value of investments		783,546,708			3,477,851,148			1,006,681,629
Foreign currency, at value^b		1,571,715			13,156,479			16,613,426
Foreign currency pledged to broker, at value^b		—			—			231,665
Receivables:
Investment securities sold		—			6,705,661			—
Dividends		1,658,147			21,447,451			5,417,281

Total Assets		786,776,570			3,519,160,739			1,028,944,001


LIABILITIES
Payables:
Investment securities purchased		—			8,639,407			—
Collateral for securities on loan (Note 1)		—			37,053,856			44,045,893
Futures variation margin		—			—			42,726
Investment advisory fees (Note 2)		315,671			1,419,156			400,440

Total Liabilities		315,671			47,112,419			44,489,059


NET ASSETS	$	786,460,899		$	3,472,048,320		$	984,454,942


Net assets consist of:
Paid-in capital	$	351,176,964		$	3,513,558,498		$	1,137,576,870
Undistributed (distributions in excess of) net investment income		3,466,057			12,734,661			(2,353,314	)
Accumulated net realized loss		(22,393,512	)		(498,220,760	)		(214,768,671	)
Net unrealized appreciation		454,211,390			443,975,921			64,000,057

NET ASSETS	$	786,460,899		$	3,472,048,320		$	984,454,942


Shares outstanding^c		48,750,000			67,800,000			70,500,000


Net asset value per share	$	16.13		$	51.21		$	13.96

^a	Securities on loan with values of $ —, $35,186,830 and $41,676,810, respectively. See Note 1.

^b	Cost of foreign currency including currency at broker, if any: $1,566,113, $13,153,893 and $16,838,141, respectively.

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

See notes to financial statements.


58		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI South Korea Capped ETF			iShares MSCI Taiwan ETF			iShares MSCI Thailand Capped ETF

ASSETS
Investments, at cost:
Unaffiliated	$	2,750,571,178		$	1,729,095,690		$	592,868,917
Affiliated (Note 2)		169,056,812			231,627,146			5,514,027

Total cost of investments	$	2,919,627,990		$	1,960,722,836		$	598,382,944

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	4,882,429,273		$	3,259,082,113		$	568,625,088
Affiliated (Note 2)		169,056,812			231,627,146			5,514,027

Total fair value of investments		5,051,486,085			3,490,709,259			574,139,115
Foreign currency, at value^b		18,440,489			1,583,230			57,106
Cash		—			16,822,038			—
Cash pledged to broker		—			1,514,000			—
Receivables:
Investment securities sold		156,347,739			—			1,500,894
Due from custodian (Note 4)		—			—			2,531,224
Dividends and interest		254,336			25,553,957			1,908,435
Capital shares sold		3,321,553			3,290,615			—

Total Assets		5,229,850,202			3,539,473,099			580,136,774


LIABILITIES
Payables:
Investment securities purchased		162,547,060			16,823,483			4,552,886
Collateral for securities on loan (Note 1)		169,056,812			219,906,393			3,927,844
Futures variation margin		—			155,462			—
Due to custodian		4,183,953			—			—
Foreign taxes (Note 1)		3,061			2,256,529			—
Investment advisory fees (Note 2)		2,440,409			1,667,423			286,438

Total Liabilities		338,231,295			240,809,290			8,767,168


NET ASSETS	$	4,891,618,907		$	3,298,663,809		$	571,369,606


Net assets consist of:
Paid-in capital	$	3,729,265,323		$	2,810,816,089		$	618,707,105
Undistributed (distributions in excess of) net investment income		(61,970,456	)		49,428,800			1,958,625
Accumulated net realized loss		(907,525,383	)		(1,091,908,580	)		(25,052,729	)
Net unrealized appreciation (depreciation)		2,131,849,423			1,530,327,500			(24,243,395	)

NET ASSETS	$	4,891,618,907		$	3,298,663,809		$	571,369,606


Shares outstanding^c		73,650,000			200,600,000			6,850,000


Net asset value per share	$	66.42		$	16.44		$	83.41

^a	Securities on loan with values of $161,526,885, $206,680,307 and $3,802,414, respectively. See Note 1.

^b	Cost of foreign currency: $18,440,489, $1,583,171 and $57,114, respectively.

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

See notes to financial statements.


FINANCIAL STATEMENTS			59

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI Australia ETF			iShares MSCI Hong Kong ETF			iShares MSCI Japan Small-Cap ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	92,186,961		$	81,049,175		$	2,351,806
Interest — unaffiliated		5,898			—			—
Interest — affiliated (Note 2)		291			340			17
Securities lending income — affiliated (Note 2)		25,186			299,900			98,240

Total investment income		92,218,336			81,349,415			2,450,063


EXPENSES
Investment advisory fees (Note 2)		9,309,890			10,514,616			658,384

Total expenses		9,309,890			10,514,616			658,384

Net investment income		82,908,446			70,834,799			1,791,679


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(26,917,297	)		(23,849,229	)		(2,130,216	)
In-kind redemptions — unaffiliated		60,506,338			86,926,510			3,947,204
Futures contracts		937,496			2,720,479			—
Foreign currency transactions		946,335			2,923			(21,169	)

Net realized gain		35,472,872			65,800,683			1,795,819

Net change in unrealized appreciation/depreciation on:
Investments		210,230,385			219,009,218			15,642,272
Futures contracts		(253,562	)		(169,042	)		—
Translation of assets and liabilities in foreign currencies		449,558			(1,608	)		(5,678	)

Net change in unrealized appreciation/depreciation		210,426,381			218,838,568			15,636,594

Net realized and unrealized gain		245,899,253			284,639,251			17,432,413

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	328,807,699		$	355,474,050		$	19,224,092

^a	Net of foreign withholding tax of $1,287,180, $ — and $242,756, respectively.

See notes to financial statements.


60		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI Malaysia ETF			iShares MSCI Pacific ex Japan ETF			iShares MSCI Singapore ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	31,709,421		$	138,841,819		$	35,847,080
Interest — affiliated (Note 2)		121			624			186
Securities lending income — affiliated (Note 2)		—			582,676			1,428,259

Total investment income		31,709,542			139,425,119			37,275,525


EXPENSES
Investment advisory fees (Note 2)		3,846,410			15,652,518			5,164,682

Total expenses		3,846,410			15,652,518			5,164,682

Net investment income		27,863,132			123,772,601			32,110,843


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		41,431,605			(38,755,034	)		(3,636,333	)
In-kind redemptions — unaffiliated		—			164,334,399			35,593,244
Futures contracts		—			—			451,881
Foreign currency transactions		5,859			794,024			121,549

Net realized gain		41,437,464			126,373,389			32,530,341

Net change in unrealized appreciation/depreciation on:
Investments		33,329,346			262,157,402			84,140,820
Futures contracts		—			—			43,054
Translation of assets and liabilities in foreign currencies		(60,443	)		379,118			(13,540	)

Net change in unrealized appreciation/depreciation		33,268,903			262,536,520			84,170,334

Net realized and unrealized gain		74,706,367			388,909,909			116,700,675

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	102,569,499		$	512,682,510		$	148,811,518

^a	Net of foreign withholding tax of $680,391, $1,769,553 and $230,769, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			61

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI South Korea Capped ETF			iShares MSCI Taiwan ETF			iShares MSCI Thailand Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	39,950,623		$	76,571,665		$	15,639,062
Interest — unaffiliated		1,360			84			—
Interest — affiliated (Note 2)		1,289			1,526			156
Securities lending income — affiliated (Note 2)		3,147,503			2,713,398	^b		55,981

		43,100,775			79,286,673			15,695,199
Less: Other foreign taxes (Note 1)		4,693			(3,259,410	)		(12,233	)

Total investment income		43,105,468			76,027,263			15,682,966


EXPENSES
Investment advisory fees (Note 2)		26,444,377			18,110,836			3,396,409

Total expenses		26,444,377			18,110,836			3,396,409

Net investment income		16,661,091			57,916,427			12,286,557


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(38,751,602	)		(22,281,259	)		(12,835,432	)
In-kind redemptions — unaffiliated		—			—			22,212,118
Futures contracts		—			1,553,130			—
Foreign currency transactions		(726,544	)		(142,805	)		(157,302	)

Net realized gain (loss)		(39,478,146	)		(20,870,934	)		9,219,384

Net change in unrealized appreciation/depreciation on:
Investments		623,930,311			581,367,407			95,809,156
Futures contracts		—			(208,856	)		—
Translation of assets and liabilities in foreign currencies		(7,638	)		51,178			44,880

Net change in unrealized appreciation/depreciation		623,922,673			581,209,729			95,854,036

Net realized and unrealized gain		584,444,527			560,338,795			105,073,420

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	601,105,618		$	618,255,222		$	117,359,977

^a	Net of foreign withholding tax of $9,739,208, $17,226,172 and $1,728,103, respectively.

^b	Net of foreign tax paid of $ —, $632,597 and $ —, respectively.

See notes to financial statements.


62		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Australia ETF						iShares MSCI Hong Kong ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	82,908,446		$	95,118,733		$	70,834,799		$	71,264,718
Net realized gain		35,472,872			67,936,094			65,800,683			176,369,407
Net change in unrealized appreciation/depreciation		210,426,381			13,198,281			218,838,568			55,861,708

Net increase in net assets resulting from operations		328,807,699			176,253,108			355,474,050			303,495,833


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(76,457,082	)		(130,032,525	)		(69,523,487	)		(71,372,977	)

Total distributions to shareholders		(76,457,082	)		(130,032,525	)		(69,523,487	)		(71,372,977	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		364,472,393			352,326,670			1,440,373,193			1,549,740,139
Cost of shares redeemed		(486,559,346	)		(975,397,089	)		(629,867,957	)		(1,522,980,733	)

Net increase (decrease) in net assets from capital share transactions		(122,086,953	)		(623,070,419	)		810,505,236			26,759,406

INCREASE (DECREASE) IN NET ASSETS		130,263,664			(576,849,836	)		1,096,455,799			258,882,262

NET ASSETS
Beginning of year		1,916,848,920			2,493,698,756			2,124,856,419			1,865,974,157

End of year	$	2,047,112,584		$	1,916,848,920		$	3,221,312,218		$	2,124,856,419

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	4,863,922		$	(5,060,683	)	$	6,189,736		$	4,875,501


SHARES ISSUED AND REDEEMED
Shares sold		13,800,000			14,000,000			66,525,000			81,300,000
Shares redeemed		(19,600,000	)		(39,400,000	)		(31,725,000	)		(79,125,000	)

Net increase (decrease) in shares outstanding		(5,800,000	)		(25,400,000	)		34,800,000			2,175,000

See notes to financial statements.


FINANCIAL STATEMENTS			63

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Japan Small-Cap ETF						iShares MSCI Malaysia ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	1,791,679		$	836,485		$	27,863,132		$	26,000,206
Net realized gain (loss)		1,795,819			(227,736	)		41,437,464			17,549,880
Net change in unrealized appreciation/depreciation		15,636,594			6,085,205			33,268,903			(15,851,478	)

Net increase in net assets resulting from operations		19,224,092			6,693,954			102,569,499			27,698,608


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,956,269	)		(1,107,270	)		(26,722,876	)		(23,444,016	)

Total distributions to shareholders		(2,956,269	)		(1,107,270	)		(26,722,876	)		(23,444,016	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		80,604,743			49,278,602			52,163,306			93,307,043
Cost of shares redeemed		(16,023,548	)		(8,694,664	)		(150,687,467	)		(225,115,455	)

Net increase (decrease) in net assets from capital share transactions		64,581,195			40,583,938			(98,524,161	)		(131,808,412	)

INCREASE (DECREASE) IN NET ASSETS		80,849,018			46,170,622			(22,677,538	)		(127,553,820	)

NET ASSETS
Beginning of year		88,987,687			42,817,065			809,138,437			936,692,257

End of year	$	169,836,705		$	88,987,687		$	786,460,899		$	809,138,437

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(1,026,401	)	$	(123,338	)	$	3,466,057		$	2,319,942


SHARES ISSUED AND REDEEMED
Shares sold		1,500,000			1,000,000			3,225,000			6,150,000
Shares redeemed		(300,000	)		(200,000	)		(9,900,000	)		(15,225,000	)

Net increase (decrease) in shares outstanding		1,200,000			800,000			(6,675,000	)		(9,075,000	)

See notes to financial statements.


64		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Pacific ex Japan ETF						iShares MSCI Singapore ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	123,772,601		$	136,122,747		$	32,110,843		$	48,795,283
Net realized gain		126,373,389			310,413,133			32,530,341			90,919,970
Net change in unrealized appreciation/depreciation		262,536,520			(214,606,307	)		84,170,334			(131,975,048	)

Net increase in net assets resulting from operations		512,682,510			231,929,573			148,811,518			7,740,205


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(118,670,244	)		(156,573,693	)		(36,850,739	)		(63,036,613	)

Total distributions to shareholders		(118,670,244	)		(156,573,693	)		(36,850,739	)		(63,036,613	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		752,794,621			971,290,034			45,906,815			206,627,419
Cost of shares redeemed		(682,826,053	)		(1,227,160,297	)		(308,890,044	)		(528,540,126	)

Net increase (decrease) in net assets from capital share transactions		69,968,568			(255,870,263	)		(262,983,229	)		(321,912,707	)

INCREASE (DECREASE) IN NET ASSETS		463,980,834			(180,514,383	)		(151,022,450	)		(377,209,115	)

NET ASSETS
Beginning of year		3,008,067,486			3,188,581,869			1,135,477,392			1,512,686,507

End of year	$	3,472,048,320		$	3,008,067,486		$	984,454,942		$	1,135,477,392

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	12,734,661		$	1,949,874		$	(2,353,314	)	$	(1,582,316	)


SHARES ISSUED AND REDEEMED
Shares sold		15,300,000			20,400,000			3,400,000			15,200,000
Shares redeemed		(15,000,000	)		(26,700,000	)		(23,800,000	)		(39,800,000	)

Net increase (decrease) in shares outstanding		300,000			(6,300,000	)		(20,400,000	)		(24,600,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			65

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI South Korea Capped ETF						iShares MSCI Taiwan ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	16,661,091		$	12,511,437		$	57,916,427		$	47,025,597
Net realized gain (loss)		(39,478,146	)		693,348			(20,870,934	)		(46,800,296	)
Net change in unrealized appreciation/depreciation		623,922,673			69,998,753			581,209,729			230,468,377

Net increase in net assets resulting from operations		601,105,618			83,203,538			618,255,222			230,693,678


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(61,830,398	)		(18,847,855	)		(51,978,221	)		(53,961,288	)

Total distributions to shareholders		(61,830,398	)		(18,847,855	)		(51,978,221	)		(53,961,288	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,151,119,199			699,217,627			299,500,305			608,307,506
Cost of shares redeemed		(175,291,957	)		(56,608,080	)		(209,110,415	)		(390,170,968	)

Net increase in net assets from capital share transactions		975,827,242			642,609,547			90,389,890			218,136,538

INCREASE IN NET ASSETS		1,515,102,462			706,965,230			656,666,891			394,868,928

NET ASSETS
Beginning of year		3,376,516,445			2,669,551,215			2,641,996,918			2,247,127,990

End of year	$	4,891,618,907		$	3,376,516,445		$	3,298,663,809		$	2,641,996,918

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(61,970,456	)	$	(16,666,480	)	$	49,428,800		$	43,522,689


SHARES ISSUED AND REDEEMED
Shares sold		18,000,000			11,900,000			21,000,000			45,000,000
Shares redeemed		(2,900,000	)		(1,050,000	)		(14,600,000	)		(29,400,000	)

Net increase in shares outstanding		15,100,000			10,850,000			6,400,000			15,600,000

See notes to financial statements.


66		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Thailand Capped ETF
	Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	12,286,557		$	18,562,467
Net realized gain		9,219,384			93,291,603
Net change in unrealized appreciation/depreciation		95,854,036			(137,693,757	)

Net increase (decrease) in net assets resulting from operations		117,359,977			(25,839,687	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(12,909,951	)		(18,144,635	)

Total distributions to shareholders		(12,909,951	)		(18,144,635	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		341,398,189			476,258,075
Cost of shares redeemed		(416,351,403	)		(486,368,459	)

Net decrease in net assets from capital share transactions		(74,953,214	)		(10,110,384	)

INCREASE (DECREASE) IN NET ASSETS		29,496,812			(54,094,706	)

NET ASSETS
Beginning of year		541,872,794			595,967,500

End of year	$	571,369,606		$	541,872,794

Undistributed net investment income included in net assets at end of year	$	1,958,625		$	2,739,321


SHARES ISSUED AND REDEEMED
Shares sold		4,550,000			5,700,000
Shares redeemed		(5,700,000	)		(6,150,000	)

Net decrease in shares outstanding		(1,150,000	)		(450,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			67

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Australia ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	23.61		$	23.39		$	24.18		$	20.92		$	20.33

Income from investment operations:
Net investment income^a		1.10			1.02			1.04			0.99			0.72
Net realized and unrealized gain (loss)^b		3.43			0.64			(0.72	)		3.33			0.69

Total from investment operations		4.53			1.66			0.32			4.32			1.41

Less distributions from:
Net investment income		(0.99	)		(1.44	)		(1.11	)		(1.06	)		(0.82	)

Total distributions		(0.99	)		(1.44	)		(1.11	)		(1.06	)		(0.82	)

Net asset value, end of year	$	27.15		$	23.61		$	23.39		$	24.18		$	20.92


Total return		19.76	%		7.06	%		1.84	%		20.54	%		6.86	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	2,047,113		$	1,916,849		$	2,493,699		$	3,090,425		$	2,196,817
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.52	%		0.53	%
Ratio of net investment income to average net assets		4.28	%		4.05	%		4.61	%		3.95	%		3.24	%
Portfolio turnover rate^c		6	%		6	%		9	%		9	%		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	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		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Hong Kong ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	18.91		$	16.94		$	17.59		$	16.02		$	14.39

Income from investment operations:
Net investment income^a		0.66			0.48			0.54			0.42			0.42
Net realized and unrealized gain (loss)^b		3.04			2.05			(0.65	)		1.56			1.69

Total from investment operations		3.70			2.53			(0.11	)		1.98			2.11

Less distributions from:
Net investment income		(0.72	)		(0.56	)		(0.54	)		(0.41	)		(0.48	)

Total distributions		(0.72	)		(0.56	)		(0.54	)		(0.41	)		(0.48	)

Net asset value, end of year	$	21.89		$	18.91		$	16.94		$	17.59		$	16.02


Total return		19.87	%		15.04	%		(0.33	)%		12.27	%		14.85	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,221,312		$	2,124,856		$	1,865,974		$	1,607,982		$	1,976,317
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.52	%		0.53	%
Ratio of net investment income to average net assets		3.24	%		2.47	%		3.26	%		2.25	%		2.67	%
Portfolio turnover rate^c		6	%		12	%		11	%		15	%		5	%

^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	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 Japan Small-Cap ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	49.44		$	42.82		$	46.49		$	40.74		$	44.45

Income from investment operations:
Net investment income^a		0.70			0.65			0.82			0.78			0.61
Net realized and unrealized gain (loss)^b		7.61			6.97			(3.25	)		5.87			(3.39	)

Total from investment operations		8.31			7.62			(2.43	)		6.65			(2.78	)

Less distributions from:
Net investment income		(1.14	)		(1.00	)		(1.24	)		(0.90	)		(0.93	)

Total distributions		(1.14	)		(1.00	)		(1.24	)		(0.90	)		(0.93	)

Net asset value, end of year	$	56.61		$	49.44		$	42.82		$	46.49		$	40.74


Total return		16.94	%		18.07	%		(5.18	)%		16.38	%		(6.25	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	169,837		$	88,988		$	42,817		$	74,387		$	36,664
Ratio of expenses to average net assets		0.48	%		0.50	%		0.53	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		1.31	%		1.36	%		1.84	%		1.72	%		1.46	%
Portfolio turnover rate^c		14	%		17	%		7	%		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	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		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Malaysia ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	14.60		$	14.52		$	13.92		$	12.98		$	9.79

Income from investment operations:
Net investment income^a		0.54			0.41			0.38			0.41			0.24
Net realized and unrealized gain^b		1.51			0.04			0.76			0.92			3.20

Total from investment operations		2.05			0.45			1.14			1.33			3.44

Less distributions from:
Net investment income		(0.52	)		(0.37	)		(0.52	)		(0.39	)		(0.25	)
Return of capital		—			—			(0.02	)		—			—

Total distributions		(0.52	)		(0.37	)		(0.54	)		(0.39	)		(0.25	)

Net asset value, end of year	$	16.13		$	14.60		$	14.52		$	13.92		$	12.98


Total return		14.17	%		3.02	%		8.61	%		10.19	%		35.76	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	786,461		$	809,138		$	936,692		$	978,402		$	794,142
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.52	%		0.53	%
Ratio of net investment income to average net assets		3.48	%		2.71	%		2.73	%		2.84	%		2.17	%
Portfolio turnover rate^c		16	%		17	%		24	%		49	%		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.

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 rates for the years ended August 31, 2014, August 31, 2013, August 31, 2012, August 31, 2011, and August 31, 2010 were 10%, 8%, 14%, 14%, and 10%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			71

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Pacific ex Japan ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	44.56		$	43.21		$	44.47		$	39.25		$	36.85

Income from investment operations:
Net investment income^a		1.88			1.69			1.73			1.64			1.25
Net realized and unrealized gain (loss)^b		6.51			1.71			(1.14	)		5.31			2.52

Total from investment operations		8.39			3.40			0.59			6.95			3.77

Less distributions from:
Net investment income		(1.74	)		(2.05	)		(1.85	)		(1.73	)		(1.37	)

Total distributions		(1.74	)		(2.05	)		(1.85	)		(1.73	)		(1.37	)

Net asset value, end of year	$	51.21		$	44.56		$	43.21		$	44.47		$	39.25


Total return		19.25	%		7.87	%		1.82	%		17.61	%		10.27	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,472,048		$	3,008,067		$	3,188,582		$	3,548,867		$	3,438,149
Ratio of expenses to average net assets		0.49	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assets		3.90	%		3.59	%		4.16	%		3.53	%		3.09	%
Portfolio turnover rate^c		8	%		8	%		7	%		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	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		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Singapore ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	12.49		$	13.10		$	13.05		$	12.17		$	10.25

Income from investment operations:
Net investment income^a		0.40			0.44			0.41			0.45			0.32
Net realized and unrealized gain (loss)^b		1.52			(0.47	)		0.11			0.92			1.97

Total from investment operations		1.92			(0.03	)		0.52			1.37			2.29

Less distributions from:
Net investment income		(0.45	)		(0.58	)		(0.47	)		(0.49	)		(0.37	)

Total distributions		(0.45	)		(0.58	)		(0.47	)		(0.49	)		(0.37	)

Net asset value, end of year	$	13.96		$	12.49		$	13.10		$	13.05		$	12.17


Total return		15.65	%		(0.38	)%		4.67	%		11.27	%		22.68	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	984,455		$	1,135,477		$	1,512,687		$	1,713,199		$	1,730,001
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.52	%		0.53	%
Ratio of net investment income to average net assets		2.99	%		3.23	%		3.32	%		3.34	%		2.80	%
Portfolio turnover rate^c		4	%		10	%		3	%		10	%		9	%

^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	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 South Korea Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	57.67		$	55.97		$	56.74		$	47.76		$	42.01

Income from investment operations:
Net investment income^a		0.25			0.23			0.23			0.29			0.32
Net realized and unrealized gain (loss)^b		9.40			1.83			(0.63	)		9.19			5.82

Total from investment operations		9.65			2.06			(0.40	)		9.48			6.14

Less distributions from:
Net investment income		(0.90	)		(0.36	)		(0.37	)		(0.43	)		(0.39	)
Return of capital		—			—			—			(0.07	)		—

Total distributions		(0.90	)		(0.36	)		(0.37	)		(0.50	)		(0.39	)

Net asset value, end of year	$	66.42		$	57.67		$	55.97		$	56.74		$	47.76


Total return		16.83	%		3.65	%		(0.62	)%		19.76	%		14.65	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	4,891,619		$	3,376,516		$	2,669,551		$	4,071,225		$	3,255,168
Ratio of expenses to average net assets		0.62	%		0.61	%		0.61	%		0.59	%		0.61	%
Ratio of net investment income to average net assets		0.39	%		0.40	%		0.42	%		0.49	%		0.67	%
Portfolio turnover rate^c		13	%		13	%		12	%		18	%		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.

See notes to financial statements.


74		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Taiwan ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	13.60		$	12.58		$	13.78		$	12.19		$	10.94

Income from investment operations:
Net investment income^a		0.29			0.24			0.28			0.39			0.23
Net realized and unrealized gain (loss)^b		2.81			1.05			(1.01	)		1.49			1.23

Total from investment operations		3.10			1.29			(0.73	)		1.88			1.46

Less distributions from:
Net investment income		(0.26	)		(0.27	)		(0.47	)		(0.29	)		(0.21	)

Total distributions		(0.26	)		(0.27	)		(0.47	)		(0.29	)		(0.21	)

Net asset value, end of year	$	16.44		$	13.60		$	12.58		$	13.78		$	12.19


Total return		23.24	%		10.30	%		(4.80	)%		15.24	%		13.30	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,298,664		$	2,641,997		$	2,247,128		$	2,857,512		$	2,721,439
Ratio of expenses to average net assets		0.62	%		0.61	%		0.61	%		0.59	%		0.61	%
Ratio of net investment income to average net assets		1.98	%		1.80	%		2.25	%		2.64	%		1.90	%
Portfolio turnover rate^c		11	%		21	%		22	%		23	%		9	%

^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.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			75

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Thailand Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	67.73		$	70.53		$	66.27		$	55.06		$	36.87

Income from investment operations:
Net investment income^a		1.67			1.84			1.76			1.65			1.44
Net realized and unrealized gain (loss)^b		15.84			(2.75	)		4.37			11.10			17.95

Total from investment operations		17.51			(0.91	)		6.13			12.75			19.39

Less distributions from:
Net investment income		(1.83	)		(1.89	)		(1.87	)		(1.54	)		(1.20	)

Total distributions		(1.83	)		(1.89	)		(1.87	)		(1.54	)		(1.20	)

Net asset value, end of year	$	83.41		$	67.73		$	70.53		$	66.27		$	55.06


Total return		26.18	%		(1.65	)%		9.57	%		23.33	%		53.19	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	571,370		$	541,873		$	595,968		$	632,840		$	520,304
Ratio of expenses to average net assets		0.62	%		0.61	%		0.61	%		0.59	%		0.61	%
Ratio of net investment income to average net assets		2.24	%		2.22	%		2.66	%		2.56	%		3.22	%
Portfolio turnover rate^c		9	%		24	%		12	%		22	%		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	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.


76		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

iSHARES^®, INC.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):


iShares ETF	Diversification Classification
MSCI Australia		Non-diversified
MSCI Hong Kong		Non-diversified
MSCI Japan Small-Cap		Diversified
MSCI Malaysia		Non-diversified
MSCI Pacific ex Japan		Diversified


iShares ETF	Diversification Classification
MSCI Singapore		Non-diversified
MSCI South Korea Capped		Non-diversified
MSCI Taiwan		Non-diversified
MSCI Thailand Capped		Non-diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

•


NOTES TO FINANCIAL STATEMENTS			77

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

•

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.


78		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1			Level 2		Level 3		Total
MSCI Australia
Assets:
Common Stocks	$	2,022,053,153		$	2,703,695	$	249	$	2,024,757,097
Money Market Funds		343,395			—		—		343,395
Futures Contracts^a		452,812			—		—		452,812

	$	2,022,849,360		$	2,703,695	$	249	$	2,025,553,304


MSCI Hong Kong
Assets:
Common Stocks	$	3,202,754,847		$	—	$	—	$	3,202,754,847
Money Market Funds		40,809,111			—		—		40,809,111

	$	3,243,563,958		$	—	$	—	$	3,243,563,958

Liabilities:
Futures Contracts^a	$	(276,020	)	$	—	$	—	$	(276,020	)


MSCI Japan Small-Cap
Assets:
Common Stocks	$	169,379,711		$	—	$	—	$	169,379,711
Money Market Funds		6,421,605			—		—		6,421,605

	$	175,801,316		$	—	$	—	$	175,801,316


MSCI Malaysia
Assets:
Common Stocks	$	783,496,888		$	—	$	—	$	783,496,888
Money Market Funds		49,820			—		—		49,820

	$	783,546,708		$	—	$	—	$	783,546,708


MSCI Pacific ex Japan
Assets:
Common Stocks	$	3,436,214,284		$	2,991,161	$	356	$	3,439,205,801
Rights		—			1,223,678		—		1,223,678
Money Market Funds		37,421,669			—		—		37,421,669

	$	3,473,635,953		$	4,214,839	$	356	$	3,477,851,148


MSCI Singapore
Assets:
Common Stocks	$	959,405,270		$	—	$	—	$	959,405,270
Rights		—			2,987,049		—		2,987,049
Money Market Funds		44,289,310			—		—		44,289,310

	$	1,003,694,580		$	2,987,049	$	—	$	1,006,681,629

Liabilities:
Futures Contracts^a	$	(42,726	)	$	—	$	—	$	(42,726	)


NOTES TO FINANCIAL STATEMENTS			79

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2		Level 3		Total
MSCI South Korea Capped
Assets:
Common Stocks	$	4,677,357,461	$	—	$	—	$	4,677,357,461
Preferred Stocks		205,071,812		—		—		205,071,812
Money Market Funds		169,056,812		—		—		169,056,812

	$	5,051,486,085	$	—	$	—	$	5,051,486,085


MSCI Taiwan
Assets:
Common Stocks	$	3,259,082,111	$	—	$	2	$	3,259,082,113
Money Market Funds		231,627,146		—		—		231,627,146
Futures Contracts^a		279,225		—		—		279,225

	$	3,490,988,482	$	—	$	2	$	3,490,988,484


MSCI Thailand Capped
Assets:
Common Stocks	$	567,469,002	$	988,577	$	—	$	568,457,579
Warrants		89,280		78,229		—		167,509
Money Market Funds		5,514,027		—		—		5,514,027

	$	573,072,309	$	1,066,806	$	—	$	574,139,115

Shown at the unrealized appreciation (depreciation) on the contracts.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION


80		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			81

Notes to Financial Statements (Continued)

iSHARES^®, INC.

payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

The following table is a summary of each Fund’s securities lending agreements which are subject to offset under an MSLA as of August 31, 2014:


iShares ETF	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
iShares MSCI Hong Kong	$	24,861,103	$	24,861,103	$	—
iShares MSCI Japan Small-Cap		6,083,697		6,083,697		—
iShares MSCI Pacific ex-Japan		35,186,830		35,186,830		—
iShares MSCI Singapore		41,676,810		41,676,810		—
iShares MSCI South Korea Capped		161,526,885		161,526,885		—
iShares MSCI Taiwan		206,680,307		206,680,307		—
iShares MSCI Thailand Capped		3,802,414		3,802,414		—

RECENT ACCOUNTING STANDARD

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

For its investment advisory services to each of the iShares MSCI Australia, iShares MSCI Hong Kong, iShares MSCI Japan Small-Cap, iShares MSCI Malaysia and iShares MSCI Singapore ETFs, 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 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, up to and including $72 billion
	0.36		Over $72 billion^a

Breakpoint level was added effective July 1, 2014.


82		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For its investment advisory services to each of the iShares MSCI South Korea Capped, iShares MSCI Taiwan and iShares MSCI Thailand Capped ETFs, 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 Fund 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

For its investment advisory services to the iShares MSCI Pacific ex Japan ETF, 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
	0.5000	%	First $46 billion
	0.4750	^a	Over $46 billion, up to and including $81 billion
	0.4513	^a	Over $81 billion, up to and including $141 billion
	0.4287	^a	Over $141 billion

Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level.


NOTES TO FINANCIAL STATEMENTS			83

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2014, each Fund paid to BTC the following amounts in total for securities lending agent services and collateral investment fees:


iShares ETF	Fees Paid to BTC
MSCI Australia	$	11,189
MSCI Hong Kong		139,193
MSCI Japan Small-Cap		37,512
MSCI Pacific ex Japan		250,802


iShares ETF	Fees Paid to BTC
MSCI Singapore	$	615,310
MSCI South Korea Capped		1,270,686
MSCI Taiwan		1,369,436
MSCI Thailand Capped		19,877

Prior to January 1, 2014, each Fund retained 65% of securities lending income and paid no collateral investment fees.

For the year ended August 31, 2014, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares MSCI Taiwan ETF in the amount of $183,013, related to the foreign tax on the securities lending income. Such reimbursement is included in “Securities lending income – affiliated” in the Fund’s statement of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

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 year ended August 31, 2014 were as follows:


iShares ETF	Purchases		Sales
MSCI Australia	$	129,515,625	$	121,004,424
MSCI Hong Kong		133,841,580		124,646,174
MSCI Japan Small-Cap		24,457,951		19,732,876
MSCI Malaysia		129,185,868		227,748,989
MSCI Pacific ex Japan		277,283,405		266,754,935
MSCI Singapore		41,173,860		70,150,811
MSCI South Korea Capped		1,496,224,369		575,550,451
MSCI Taiwan		416,478,872		334,019,726
MSCI Thailand Capped		61,641,216		50,506,818


84		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

In-kind transactions (see Note 4) for the year ended August 31, 2014 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Australia	$	361,043,612	$	483,408,721
MSCI Hong Kong		1,395,402,513		599,272,889
MSCI Japan Small-Cap		74,205,070		15,762,045
MSCI Pacific ex Japan		726,860,576		668,662,178
MSCI Singapore		43,855,862		296,327,492
MSCI Thailand Capped		327,617,329		413,547,619

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FINANCIAL FUTURES CONTRACTS*


NOTES TO FINANCIAL STATEMENTS			85

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the value of futures contracts held by the Funds as of August 31, 2014 and the related locations in the statements of assets and liabilities, presented by risk exposure category:


Assets
	iShares MSCI Australia ETF		iShares MSCI Taiwan ETF
Equity contracts:
Variation margin/Net assets consist of – net unrealized appreciation^a	$	452,812	$	279,225	^b

Represents cumulative appreciation of futures contracts as reported in the schedules of investments.

Only current day’s variation margin is reported separately within the statements of assets and liabilities.


Liabilities
	iShares MSCI Hong Kong ETF		iShares MSCI Singapore ETF
Equity contracts:
Variation margin/Net assets consist of – net unrealized depreciation^c	$	276,020	$	42,726

Represents cumulative depreciation of futures contracts as reported in the schedules of investments.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the Funds during the year ended August 31, 2014 and the related locations in the statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)
	iShares MSCI Australia ETF			iShares MSCI Hong Kong ETF			iShares MSCI Singapore ETF		iShares MSCI Taiwan ETF
Equity contracts:
Futures contracts	$	937,496		$	2,720,479		$	451,881	$	1,553,130


	Net Change in Unrealized Appreciation/Depreciation
	iShares MSCI Australia ETF			iShares MSCI Hong Kong ETF			iShares MSCI Singapore ETF		iShares MSCI Taiwan ETF
Equity contracts:
Futures contracts	$	(253,562	)	$	(169,042	)	$	43,054	$	(208,856	)

The following table shows the average quarter-end balances of open futures contracts for the year ended August 31, 2014:


	iShares MSCI Australia ETF		iShares MSCI Hong Kong ETF		iShares MSCI Singapore ETF		iShares MSCI Taiwan ETF
Average number of contracts purchased		152		81		143		355
Average value of contracts purchased	$	18,568,518	$	12,200,369	$	8,299,242	$	11,250,794


86		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

6.	*MARKET AND CREDIT RISK*

MARKET RISK

The iShares MSCI Australia ETF, iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI Singapore ETF, iShares MSCI South Korea Capped ETF, iShares MSCI Taiwan ETF and iShares MSCI Thailand Capped ETF each invests all or substantially all of its assets in issuers located in a single country. When a fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.

CREDIT RISK


NOTES TO FINANCIAL STATEMENTS			87

Notes to Financial Statements (Continued)

iSHARES^®, INC.

exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in the statement of assets and liabilities.

7.	*INCOME TAX INFORMATION*

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of August 31, 2014, attributable to passive foreign investment companies, the expiration of capital loss carryforwards, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI Australia	$	34,856,876		$	3,473,241		$	(38,330,117	)
MSCI Hong Kong		77,862,871			2,923			(77,865,794	)
MSCI Japan Small-Cap		3,608,713			261,527			(3,870,240	)
MSCI Malaysia		—			5,859			(5,859	)
MSCI Pacific ex Japan		126,553,513			5,682,430			(132,235,943	)
MSCI Singapore		24,568,783			3,968,898			(28,537,681	)
MSCI South Korea Capped		—			(134,669	)		134,669
MSCI Taiwan		(14,435,986	)		(32,095	)		14,468,081
MSCI Thailand Capped		12,444,630			(157,302	)		(12,287,328	)

The tax character of distributions paid during the years ended August 31, 2014 and August 31, 2013 was as follows:


iShares ETF	2014		2013
MSCI Australia
Ordinary income	$	76,457,082	$	130,032,525


MSCI Hong Kong
Ordinary income	$	69,523,487	$	71,372,977


MSCI Japan Small-Cap
Ordinary income	$	2,956,269	$	1,107,270


MSCI Malaysia
Ordinary income	$	26,722,876	$	23,444,016


88		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF	2014		2013
MSCI Pacific ex Japan
Ordinary income	$	118,670,244	$	156,573,693


MSCI Singapore
Ordinary income	$	36,850,739	$	63,036,613


MSCI South Korea Capped
Ordinary income	$	61,830,398	$	18,847,855


MSCI Taiwan
Ordinary income	$	51,978,221	$	53,961,288


MSCI Thailand Capped
Ordinary income	$	12,909,951	$	18,144,635

As of August 31, 2014, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a			Qualified Late-Year Losses^b			Total
MSCI Australia	$	21,764,950	$	—	$	(148,840,859	)	$	89,200,925		$	(22,993,540	)	$	(60,868,524	)
MSCI Hong Kong		6,189,736		—		(364,026,301	)		161,312,654			(17,994,055	)		(214,517,966	)
MSCI Japan Small-Cap		1,769,331		—		(1,737,581	)		12,595,782			(2,273,481	)		10,354,051
MSCI Malaysia		3,466,057		1,987,238		—			429,830,640			—			435,283,935
MSCI Pacific ex Japan		31,649,636		—		(392,888,951	)		350,408,169			(30,679,032	)		(41,510,178	)
MSCI Singapore		2,073,176		—		(195,833,519	)		46,407,715			(5,769,300	)		(153,121,928	)
MSCI South Korea Capped		43,104,100		—		(379,453,081	)		1,516,558,034			(17,855,469	)		1,162,353,584
MSCI Taiwan		60,252,930		—		(855,861,788	)		1,303,058,111			(19,601,533	)		487,847,720
MSCI Thailand Capped		1,962,196		—		(6,238,729	)		(37,565,267	)		(5,495,699	)		(47,337,499	)

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of August 31, 2014, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


iShares ETF	Non- Expiring^a		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Expiring 2019		Total
MSCI Australia	$	88,822,192	$	7,066	$	529,868	$	24,006,125	$	23,348,244	$	12,127,364	$	148,840,859
MSCI Hong Kong		179,303,227		2,899,247		3,185,408		29,235,556		114,836,904		34,565,959		364,026,301
MSCI Japan Small-Cap		860,844		—		—		131,718		541,322		203,697		1,737,581
MSCI Pacific ex Japan		185,280,633		—		—		66,207,828		104,799,503		36,600,987		392,888,951
MSCI Singapore		35,336,542		—		807,115		15,680,510		132,420,824		11,588,528		195,833,519
MSCI South Korea Capped		13,366,759		—		—		60,990,953		226,591,665		78,503,704		379,453,081
MSCI Taiwan		48,030,508		64,999,586		16,734,578		343,375,145		363,052,013		19,669,958		855,861,788
MSCI Thailand Capped		2,056,947		—		—		555,444		2,321,428		1,304,910		6,238,729

Must be utilized prior to losses subject to expiration.


NOTES TO FINANCIAL STATEMENTS			89

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2014, the iShares MSCI Malaysia ETF utilized $29,674,200 of its capital loss carryforwards.

As of August 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI Australia	$	1,936,358,394	$	280,638,608	$	(191,896,510	)	$	88,742,098
MSCI Hong Kong		3,081,927,689		259,998,643		(98,362,374	)		161,636,269
MSCI Japan Small-Cap		163,198,450		21,944,177		(9,341,311	)		12,602,866
MSCI Malaysia		353,726,318		456,443,684		(26,623,294	)		429,820,390
MSCI Pacific ex Japan		3,127,479,185		543,947,244		(193,575,281	)		350,371,963
MSCI Singapore		960,240,101		116,217,167		(69,775,639	)		46,441,528
MSCI South Korea Capped		3,534,919,379		2,144,583,985		(628,017,279	)		1,516,566,706
MSCI Taiwan		2,187,992,225		1,562,391,788		(259,674,754	)		1,302,717,034
MSCI Thailand Capped		611,704,816		37,064,849		(74,630,550	)		(37,565,701	)

8.	*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.


90		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

iShares, Inc.:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI Australia ETF, iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI Pacific ex Japan ETF, iShares MSCI Singapore ETF, iShares MSCI South Korea Capped ETF, iShares MSCI Taiwan ETF and iShares MSCI Thailand Capped ETF (the “Funds”) at August 31, 2014, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2014


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			91

Tax Information (Unaudited)

iSHARES^®, INC.


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Australia	$	93,474,141	$	1,286,424
MSCI Hong Kong		81,049,175		—
MSCI Japan Small-Cap		2,594,562		242,672
MSCI Malaysia		32,389,812		—
MSCI Pacific ex Japan		140,611,372		1,767,747
MSCI Singapore		36,077,849		230,769
MSCI South Korea Capped		49,689,831		9,734,515
MSCI Taiwan		93,797,837		21,107,950
MSCI Thailand Capped		17,367,165		1,737,998


iShares ETF	Qualified Dividend Income
MSCI Australia	$	77,743,506
MSCI Japan Small-Cap		2,016,261
MSCI Pacific ex Japan		92,155,604
MSCI South Korea Capped		48,478,192
MSCI Thailand Capped		14,647,949


92		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI Australia ETF, iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF and iShares MSCI Singapore ETF


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			93

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


94		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with substantially similar investment objectives and strategies as the Funds, except for iShares MSCI Japan Small-Cap ETF. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			95

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

II. iShares MSCI Pacific ex Japan ETF and iShares MSCI Taiwan ETF


96		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

comparable ETFs existed and the comparison group would not otherwise be reasonable in Lipper’s judgment, pure index institutional mutual funds, objectively selected by Lipper as comprising such Fund’s applicable peer group pursuant to Lipper’s proprietary ETF methodology (the “Lipper Group”). The Board noted that, prior to 2014, Lipper had used a different methodology to determine a Fund’s Lipper group, which included mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g. actively managed funds and funds sponsored by “at cost” service providers), as applicable. The Board further noted that, after consideration by the 15(c) Committee, the Board determined to use instead Lipper’s proprietary ETF methodology to determine a Fund’s Lipper Group. This determination was based on, among other considerations, the increased number and types of ETFs available for comparative purposes than was the case in prior years. The Board was provided with a detailed description of Lipper’s proprietary ETF methodology used by Lipper to determine the applicable Lipper Groups and to prepare this information. At the Board’s request, Lipper provided, and the Board considered, information on the impact to the iShares funds’ comparative fee rankings that were attributable to the change from a pure index group methodology to Lipper’s proprietary ETF methodology. The Board further noted that due to the limitations in providing comparable funds in the various Lipper Groups, the statistical information provided in Lipper’s report may or may not provide meaningful direct comparisons to the Funds in all instances.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			97

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rates reflects appropriate sharing of potential economies of scale with the Funds’ shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


98		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

III. iShares MSCI South Korea Capped ETF and iShares MSCI Thailand Capped ETF


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			99

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

The Board also noted that the investment advisory fee rate and overall expenses for iShares MSCI South Korea Capped ETF were within range of the median of the investment advisory fee rates and overall expenses of the funds in its Lipper Group, and the investment advisory fee rate and overall expenses for iShares MSCI Thailand Capped ETF were at the median of the investment advisory fee rates and overall expenses of the funds in its Lipper Group.


100		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			101

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rates reflects appropriate sharing of potential economies of scale with the Funds’ shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with substantially similar investment objectives and strategies as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


102		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^®, INC.

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	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
MSCI Australia	$	0.821693	$	—	$	0.170960	$	0.992653		83	%		—	%		17	%		100	%
MSCI Japan Small-Cap		0.856053		—		0.282602		1.138655		75			—			25			100
MSCI Malaysia		0.519638		—		0.001943		0.521581		100			—			0	^a		100
MSCI Pacific ex Japan		1.596731		—		0.140090		1.736821		92			—			8			100
MSCI Singapore		0.279324		—		0.170261		0.449585		62			—			38			100
MSCI South Korea Capped		0.244213		—		0.653832		0.898045		27			—			73			100
MSCI Taiwan		0.237828		—		0.024159		0.261987		91			—			9			100

Rounds to less than 1%.

Premium/Discount Information

The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five calendar years through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.


SUPPLEMENTAL INFORMATION			103

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Australia ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		1		0.07	%
Greater than 4.0% and Less than 4.5%		2		0.14
Greater than 3.5% and Less than 4.0%		3		0.22
Greater than 3.0% and Less than 3.5%		8		0.58
Greater than 2.5% and Less than 3.0%		11		0.80
Greater than 2.0% and Less than 2.5%		18		1.30
Greater than 1.5% and Less than 2.0%		56		4.05
Greater than 1.0% and Less than 1.5%		92		6.66
Greater than 0.5% and Less than 1.0%		262		18.96
Between 0.5% and –0.5%		620		44.86
Less than –0.5% and Greater than –1.0%		139		10.06
Less than –1.0% and Greater than –1.5%		79		5.72
Less than –1.5% and Greater than –2.0%		35		2.53
Less than –2.0% and Greater than –2.5%		28		2.03
Less than –2.5% and Greater than –3.0%		12		0.87
Less than –3.0% and Greater than –3.5%		7		0.51
Less than –3.5% and Greater than –4.0%		5		0.36
Less than –4.0% and Greater than –4.5%		2		0.14
Less than –4.5% and Greater than –5.0%		1		0.07
Less than –5.0% and Greater than –5.5%		1		0.07

		1,382		100.00	%


104		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Hong Kong ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		2		0.14	%
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		7		0.51
Greater than 2.5% and Less than 3.0%		6		0.43
Greater than 2.0% and Less than 2.5%		21		1.52
Greater than 1.5% and Less than 2.0%		30		2.17
Greater than 1.0% and Less than 1.5%		72		5.21
Greater than 0.5% and Less than 1.0%		219		15.85
Between 0.5% and –0.5%		725		52.46
Less than –0.5% and Greater than –1.0%		154		11.14
Less than –1.0% and Greater than –1.5%		75		5.43
Less than –1.5% and Greater than –2.0%		28		2.03
Less than –2.0% and Greater than –2.5%		17		1.23
Less than –2.5% and Greater than –3.0%		12		0.87
Less than –3.0% and Greater than –3.5%		8		0.58
Less than –3.5%		4		0.29

		1,382		100.00	%


SUPPLEMENTAL INFORMATION			105

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Japan Small-Cap ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0%		4		0.29	%
Greater than 4.5% and Less than 5.0%		1		0.07
Greater than 4.0% and Less than 4.5%		2		0.14
Greater than 3.5% and Less than 4.0%		7		0.51
Greater than 3.0% and Less than 3.5%		2		0.14
Greater than 2.5% and Less than 3.0%		8		0.58
Greater than 2.0% and Less than 2.5%		19		1.37
Greater than 1.5% and Less than 2.0%		46		3.33
Greater than 1.0% and Less than 1.5%		118		8.54
Greater than 0.5% and Less than 1.0%		219		15.85
Between 0.5% and –0.5%		614		44.43
Less than –0.5% and Greater than –1.0%		151		10.93
Less than –1.0% and Greater than –1.5%		87		6.30
Less than –1.5% and Greater than –2.0%		48		3.47
Less than –2.0% and Greater than –2.5%		29		2.10
Less than –2.5% and Greater than –3.0%		14		1.01
Less than –3.0% and Greater than –3.5%		7		0.51
Less than –3.5% and Greater than –4.0%		3		0.22
Less than –4.0% and Greater than –4.5%		2		0.14
Less than –4.5%		1		0.07

		1,382		100.00	%


106		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Malaysia ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		3		0.22	%
Greater than 2.5% and Less than 3.0%		3		0.22
Greater than 2.0% and Less than 2.5%		10		0.72
Greater than 1.5% and Less than 2.0%		24		1.74
Greater than 1.0% and Less than 1.5%		86		6.22
Greater than 0.5% and Less than 1.0%		230		16.64
Between 0.5% and –0.5%		702		50.81
Less than –0.5% and Greater than –1.0%		199		14.40
Less than –1.0% and Greater than –1.5%		69		4.99
Less than –1.5% and Greater than –2.0%		33		2.39
Less than –2.0% and Greater than –2.5%		10		0.72
Less than –2.5% and Greater than –3.0%		7		0.51
Less than –3.0% and Greater than –3.5%		2		0.14
Less than –3.5% and Greater than –4.0%		2		0.14
Less than –4.0% and Greater than –4.5%		2		0.14

		1,382		100.00	%

iShares MSCI Pacific ex Japan ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		3		0.22	%
Greater than 3.5% and Less than 4.0%		2		0.14
Greater than 3.0% and Less than 3.5%		6		0.43
Greater than 2.5% and Less than 3.0%		10		0.72
Greater than 2.0% and Less than 2.5%		17		1.23
Greater than 1.5% and Less than 2.0%		41		2.97
Greater than 1.0% and Less than 1.5%		96		6.95
Greater than 0.5% and Less than 1.0%		225		16.28
Between 0.5% and –0.5%		690		49.94
Less than –0.5% and Greater than –1.0%		136		9.84
Less than –1.0% and Greater than –1.5%		75		5.43
Less than –1.5% and Greater than –2.0%		36		2.60
Less than –2.0% and Greater than –2.5%		19		1.37
Less than –2.5% and Greater than –3.0%		13		0.94
Less than –3.0% and Greater than –3.5%		6		0.43
Less than –3.5% and Greater than –4.0%		3		0.22
Less than –4.0% and Greater than –4.5%		1		0.07
Less than –4.5% and Greater than –5.0%		3		0.22

		1,382		100.00	%


SUPPLEMENTAL INFORMATION			107

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Singapore ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		1		0.07	%
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		3		0.22
Greater than 2.5% and Less than 3.0%		4		0.29
Greater than 2.0% and Less than 2.5%		14		1.01
Greater than 1.5% and Less than 2.0%		20		1.45
Greater than 1.0% and Less than 1.5%		69		4.99
Greater than 0.5% and Less than 1.0%		203		14.69
Between 0.5% and –0.5%		807		58.39
Less than –0.5% and Greater than –1.0%		147		10.64
Less than –1.0% and Greater than –1.5%		60		4.34
Less than –1.5% and Greater than –2.0%		27		1.95
Less than –2.0% and Greater than –2.5%		15		1.09
Less than –2.5% and Greater than –3.0%		4		0.29
Less than –3.0% and Greater than –3.5%		3		0.22
Less than –3.5% and Greater than –4.0%		3		0.22
Less than –4.0%		1		0.07

		1,382		100.00	%


108		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI South Korea Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0% and Less than 5.5%		1		0.07	%
Greater than 4.5% and Less than 5.0%		2		0.14
Greater than 4.0% and Less than 4.5%		5		0.36
Greater than 3.5% and Less than 4.0%		5		0.36
Greater than 3.0% and Less than 3.5%		5		0.36
Greater than 2.5% and Less than 3.0%		19		1.37
Greater than 2.0% and Less than 2.5%		23		1.66
Greater than 1.5% and Less than 2.0%		56		4.05
Greater than 1.0% and Less than 1.5%		73		5.29
Greater than 0.5% and Less than 1.0%		217		15.71
Between 0.5% and –0.5%		563		40.75
Less than –0.5% and Greater than –1.0%		192		13.89
Less than –1.0% and Greater than –1.5%		84		6.09
Less than –1.5% and Greater than –2.0%		54		3.91
Less than –2.0% and Greater than –2.5%		27		1.95
Less than –2.5% and Greater than –3.0%		21		1.52
Less than –3.0% and Greater than –3.5%		8		0.58
Less than –3.5% and Greater than –4.0%		8		0.58
Less than –4.0% and Greater than –4.5%		7		0.51
Less than –4.5% and Greater than –5.0%		6		0.43
Less than –5.0% and Greater than –5.5%		2		0.14
Less than –5.5% and Greater than –6.0%		2		0.14
Less than –6.0%		2		0.14

		1,382		100.00	%


SUPPLEMENTAL INFORMATION			109

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Taiwan ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0%		2		0.14	%
Greater than 4.5% and Less than 5.0%		1		0.07
Greater than 4.0% and Less than 4.5%		2		0.14
Greater than 3.5% and Less than 4.0%		8		0.58
Greater than 3.0% and Less than 3.5%		10		0.72
Greater than 2.5% and Less than 3.0%		7		0.51
Greater than 2.0% and Less than 2.5%		17		1.23
Greater than 1.5% and Less than 2.0%		37		2.68
Greater than 1.0% and Less than 1.5%		85		6.15
Greater than 0.5% and Less than 1.0%		218		15.78
Between 0.5% and –0.5%		632		45.74
Less than –0.5% and Greater than –1.0%		192		13.89
Less than –1.0% and Greater than –1.5%		78		5.64
Less than –1.5% and Greater than –2.0%		43		3.11
Less than –2.0% and Greater than –2.5%		18		1.30
Less than –2.5% and Greater than –3.0%		12		0.87
Less than –3.0% and Greater than –3.5%		12		0.87
Less than –3.5% and Greater than –4.0%		4		0.29
Less than –4.0% and Greater than –4.5%		3		0.22
Less than –4.5% and Greater than –5.0%		1		0.07

		1,382		100.00	%


110		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Thailand Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0%		1		0.07	%
Greater than 4.5% and Less than 5.0%		2		0.14
Greater than 4.0% and Less than 4.5%		3		0.22
Greater than 3.5% and Less than 4.0%		3		0.22
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		16		1.16
Greater than 2.0% and Less than 2.5%		23		1.66
Greater than 1.5% and Less than 2.0%		53		3.84
Greater than 1.0% and Less than 1.5%		139		10.06
Greater than 0.5% and Less than 1.0%		250		18.09
Between 0.5% and –0.5%		548		39.66
Less than –0.5% and Greater than –1.0%		165		11.94
Less than –1.0% and Greater than –1.5%		88		6.37
Less than –1.5% and Greater than –2.0%		36		2.60
Less than –2.0% and Greater than –2.5%		29		2.10
Less than –2.5% and Greater than –3.0%		9		0.65
Less than –3.0% and Greater than –3.5%		9		0.65
Less than –3.5% and Greater than –4.0%		1		0.07
Less than –4.0% and Greater than –4.5%		1		0.07
Less than –4.5% and Greater than –5.0%		1		0.07
Less than –5.0%		1		0.07

		1,382		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI South Korea Capped ETF, iShares MSCI Taiwan ETF, and iShares MSCI Thailand Capped ETF (each a “Fund”, collectively the “Funds”) for marketing to EU investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to both (a) the staff of BFA; and (b) staff who are senior management or who have the ability to materially affect the risk profile of the Funds.


SUPPLEMENTAL INFORMATION			111

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to each Fund is included in the aggregate figures disclosed.

The figures disclosed are a sum of each individual’s portion of remuneration attributable to each Fund according to an objective apportionment methodology. Accordingly the figures are not representative of any individual’s actual remuneration or their remuneration structure.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Hong Kong ETF in respect of BFA’s financial year ending December 31, 2013 was USD 378,785. This figure is comprised of fixed remuneration of USD 148,936 and variable remuneration of USD 229,849. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Hong Kong ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 60,855.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Japan Small-Cap ETF in respect of BFA’s financial year ending December 31, 2013 was USD 31,248. This figure is comprised of fixed remuneration of USD 12,287 and variable remuneration of USD 18,961. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Japan Small-Cap ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 5,020.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Malaysia ETF in respect of BFA’s financial year ending December 31, 2013 was USD 154,805. This figure is comprised of fixed remuneration of USD 60,868 and variable remuneration of USD 93,937. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Malaysia ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 24,871.


112		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI South Korea Capped ETF in respect of BFA’s financial year ending December 31, 2013 was USD 879,760. This figure is comprised of fixed remuneration of USD 345,917 and variable remuneration of USD 533,843. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI South Korea Capped ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 141,340.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Taiwan ETF in respect of BFA’s financial year ending December 31, 2013 was USD 621,848. This figure is comprised of fixed remuneration of USD 244,508 and variable remuneration of USD 377,340. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Taiwan ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 99,905.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Thailand Capped ETF in respect of BFA’s financial year ending December 31, 2013 was USD 104,958. This figure is comprised of fixed remuneration of USD 41,269 and variable remuneration of USD 63,689. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Thailand Capped ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 16,862.


SUPPLEMENTAL INFORMATION			113

Director and Officer Information

iSHARES^®, INC.

Interested Directors

^a	Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc.

^b	Mark Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.


114		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert H. Silver (59)	Director (since 2007); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Independent Chairman of iShares, Trust, iShares MSCI Russia Capped ETF, Inc. and iShares U.S. ETF Trust (since 2012).

Cecilia H. Herbert (65)	Director (since 2005); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Forward Funds (34 portfolios) (since 2009).

Charles A. Hurty (70)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).

John E. Kerrigan (59)	Director (since 2005); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).


DIRECTOR AND OFFICER INFORMATION			115

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
John E. Martinez (53)	Director (since 2003); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).

George G.C. Parker (75)	Director (since 2002).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).

Madhav V. Rajan (50)	Director (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).


116		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (54)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (45)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2007).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (51)	Executive Vice President (since 2007).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2007).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


DIRECTOR AND OFFICER INFORMATION			117

Notes:


118		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-83-0814

LOGO

AUGUST 31, 2014

2014 ANNUAL REPORT

iShares, Inc.

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iShares MSCI Brazil Capped ETF | EWZ | NYSE Arca

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iShares MSCI Canada ETF | EWC | NYSE Arca

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iShares MSCI Chile Capped ETF | ECH | NYSE Arca

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iShares MSCI Colombia Capped ETF | ICOL | NYSE Arca

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iShares MSCI Israel Capped ETF | EIS | NYSE Arca

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iShares MSCI Mexico Capped ETF | EWW | NYSE Arca

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iShares MSCI South Africa ETF | EZA | NYSE Arca

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iShares MSCI Turkey ETF | TUR | NYSE Arca

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iShares MSCI USA ETF | EUSA | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			24
Shareholder Expenses			24
Schedules of Investments			25
iShares MSCI Brazil Capped ETF			25
iShares MSCI Canada ETF			28
iShares MSCI Chile Capped ETF			31
iShares MSCI Colombia Capped ETF			33
iShares MSCI Israel Capped ETF			34
iShares MSCI Mexico Capped ETF			36
iShares MSCI South Africa ETF			39
iShares MSCI Turkey ETF			41
iShares MSCI USA ETF			44
Financial Statements			53
Financial Highlights			64
Notes to Financial Statements			73
Report of Independent Registered Public Accounting Firm			88
Tax Information			89
Board Review and Approval of Investment Advisory Contract			90
Supplemental Information			104
Director and Officer Information			112

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL MARKET OVERVIEW

Global equities advanced for the 12-month period ended August 31, 2014 (the “reporting period”), although sluggish economic recovery in Europe, U.S. Federal Reserve Bank (“Fed”) actions, and slower economic growth in China kept volatility levels elevated.

For U.S. equities, the reporting period began in an environment of volatility, as concern mounted that the Fed would begin to taper its ongoing quantitative easing program, QE3. Market sentiment soon turned positive, though, when the Fed announced that it would delay any tapering of stimulus until the economic recovery appeared more sustainable. When the Fed did, in fact, begin to reduce its bond-buying program at the end of 2013, the effect on markets was positive, as investors had already digested the possibility of tapering and were reassured that the reduction of the stimulus would be gradual. Although gross domestic product (“GDP”) contracted in the first quarter of 2014, it expanded by 4.2% in the second quarter. The housing sector showed signs of improvement, with housing starts and building permits rising in July 2014, and consumer sentiment remained high throughout the second half of the reporting period. Also, in August 2014, the S&P 500^® broke 2,000, reaching a new high.

European equities delivered some of the strongest returns among international equity markets for the reporting period, despite slow and uneven economic recovery in the eurozone. For the third quarter of 2013, the eurozone as a whole experienced GDP growth of 0.1%, representing a decline from the previous quarter. In the fourth quarter of 2013 and first quarter of 2014, GDP growth for the eurozone registered only 0.3% and 0.2%, respectively, before stagnating completely in the second quarter of 2014. Underlying the GDP figures for the entire area, Germany’s GDP grew 0.7% in the first quarter of 2014 over the previous quarter, its largest growth rate in three years, but contracted in the second quarter of 2014. France’s economy demonstrated uneven growth before stagnating in the first and second quarters of 2014 amid weak consumer spending and business investment. Elsewhere in Europe, Spain’s economy gained strength, growing 0.6% in the second quarter of 2014, its largest rate in more than six years. Italy’s economy expanded by 0.1% in the fourth quarter of 2013, but contracted again in the first and second quarters of 2014. Unemployment levels remained stubbornly high among many European markets. The United Kingdom experienced healthy economic growth. GDP growth remained steady in the U.K. throughout the reporting period, exceeding its pre-recession peak from 2008 in the second quarter of 2014 largely on the strength of its services and production sectors.

Japanese equities achieved positive returns in an uneven environment, as conflicting data influenced markets to change direction throughout the reporting period. Early in the reporting period, Japanese equities benefited from the Bank of Japan’s measures to improve economic conditions through quantitative easing. The Nikkei Index rallied and the Japanese yen declined, which in turn helped export levels, although not to the extent that had been expected. Economic growth, as measured by GDP, was uneven during the reporting period. GDP growth was positive for the third and fourth quarters of 2013. The fourth quarter of 2013 figures were revised downward in early 2014, however, and disappointing economic data provided cause for concern that Japan’s growth trajectory might slow in the first quarter of 2014. Stock markets were strengthened when economic data indicated Japan’s economy grew at an annualized 6.7% pace in the first quarter of 2014, surpassing the forecast for the quarter. However, concerns surrounding an increase in the country’s consumption tax — its first increase in 17 years — weighed on markets later in the reporting period. Consumer spending, which had improved in anticipation of the consumption tax increase, slumped in the months following the implementation in April 2014, largely causing GDP to contract in the second quarter of 2014.

Emerging market countries as a group delivered double-digit returns and slightly outperformed broad international indices for the reporting period. Early in the reporting period, concern regarding the Fed tapering its quantitative easing program led investors to abandon emerging market holdings. Political uncertainty among some emerging markets compounded investor aversion to emerging markets. As the reporting period progressed, rising expectations that the Fed would be slower to raise rates than originally had been anticipated, as well as reduced political unrest, helped to refuel investors’ appetite for risk, boosting returns for emerging markets equities.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI BRAZIL CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		30.33%		30.91%		31.32%		30.33%		30.91%		31.32%
5 Years		1.85%		1.88%		2.30%		9.62%		9.76%		12.07%
10 Years		15.73%		15.67%		16.82%		331.06%		328.75%		373.21%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Brazil Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Brazil 25/50 Index.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,333.80	$	3.65	$	1,000.00	$	1,022.10	$	3.16		0.62%


6		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI BRAZIL CAPPED ETF

The iShares MSCI Brazil Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Brazilian equities, as represented by the MSCI Brazil 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 30.33%, net of fees, while the total return for the Index was 31.32%.

Brazilian equities, as represented by the Index, achieved strong results for the reporting period and outpaced broad international equity indices.

Weaker economic activity, combined with concern regarding the Fed tapering of its quantitative easing program, contributed to a decline in Brazilian stocks in late 2013 and early 2014. Such a move would likely cause interest rates to rise, and make investors more cautious about investing in emerging markets, including Brazil.

During the last six months of the reporting period, however, Brazilian stocks benefited from greater investor demand as rising expectations that the Fed would be slower to raise rates than originally had been anticipated helped to refuel investors’ appetite for risk, boosting returns for Brazilian equities. In addition, the Index particularly rallied during the last three months of the reporting period amid optimism about upcoming national elections in Brazil.

Brazil, Latin America’s largest economy, experienced sluggish economic activity during the reporting period. Economic growth, as measured by GDP, contracted in the third quarter of 2013 but expanded by 0.5% for the fourth quarter of 2013. In the first and second quarters of 2014, however, GDP contracted 0.2% and 0.6%, respectively. A key driver of Brazil’s tepid economy was slow growth in China and the European Union, which led to lower levels of foreign direct investment. Reduced demand from neighboring Argentina, which lowered its purchases of Brazilian cars and other durable goods as its own economy slowed, hurt export levels.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	31.87	%
Energy	15.48
Consumer Staples	15.26
Materials	11.74
Utilities	6.56
Consumer Discretionary	6.56
Industrials	5.44
Information Technology	3.35
Telecommunication Services	2.96
Health Care	0.78

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Itau Unibanco Holding SA (Preferred)	9.06	%
Petroleo Brasileiro SA (Preferred)	7.87
Banco Bradesco SA (Preferred)	6.79
AMBEV SA	6.02
Petroleo Brasileiro SA	5.00
Vale SA Class A (Preferred)	3.70
BRF SA	3.66
Cielo SA	2.78
Vale SA	2.59
Banco do Brasil SA	2.58

TOTAL	50.05	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI CANADA ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.00%		22.55%		23.19%		23.00%		22.55%		23.19%
5 Years		8.98%		8.86%		9.23%		53.73%		52.85%		55.48%
10 Years		10.55%		10.45%		10.80%		172.62%		170.09%		178.91%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,138.10	$	2.59	$	1,000.00	$	1,022.80	$	2.45		0.48%


8		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI CANADA ETF

The iShares MSCI Canada ETF (the “Fund”) seeks to track the investment results of an index composed of Canadian equities, as represented by the MSCI Canada Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 23.00%, net of fees, while the total return for the Index was 23.19%.

Canadian stocks, as represented by the Index, posted strong performance during the reporting period. Canadian stocks experienced modest positive returns during the first half of the reporting period, reflecting concerns about consumer credit and sluggish demand for natural resources. Stocks rallied during the second half of the reporting period, as relatively improving global growth lifted Canada’s resources-based economy.

Every economic sector in the Index experienced positive returns. The financials sector, which represented approximately 37% of the Index on average, delivered the largest contribution to Index returns during the reporting period. Canadian financial companies generated solid earnings despite concerns about the housing market and consumer lending. The Index’s 26% weighting on average in the energy sector generated the second largest contribution to Index returns. Improving global growth drove oil prices higher for most of 2014 until the rising U.S. dollar led to lower oil prices in the last two months of the reporting period. Nevertheless, Canadian energy stocks posted strong results on improving demand. Similarly, the industrials sector posted the highest total return of any sector in the Index, as Canadian railroad stocks rallied on increasing demand for shipping oil and lower expenses. Consumer-based stocks also delivered sound results for the reporting period.

The materials sector posted modest returns during the reporting period, as gold and silver miners struggled with weak demand for precious metals. Health care also lagged other sectors in the Index during the reporting period.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	37.14	%
Energy	27.18
Materials	11.43
Industrials	7.78
Consumer Discretionary	5.34
Health Care	3.17
Consumer Staples	3.04
Telecommunication Services	2.42
Information Technology	1.33
Utilities	1.17

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Royal Bank of Canada	7.22	%
Toronto-Dominion Bank (The)	6.54
Bank of Nova Scotia	5.43
Suncor Energy Inc.	4.06
Canadian National Railway Co.	3.99
Bank of Montreal	3.34
Canadian Natural Resources Ltd.	3.21
Enbridge Inc.	2.81
TransCanada Corp.	2.57
Canadian Imperial Bank of Commerce	2.56

TOTAL	41.73	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI CHILE CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(7.40)%		(6.93)%		(7.34)%		(7.40)%		(6.93)%		(7.34)%
5 Years		0.90%		0.92%		1.83%		4.56%		4.70%		9.50%
Since Inception		(0.30)%		(0.35)%		0.34%		(2.05)%		(2.35)%		2.34%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 11/12/07. The first day of secondary market trading was 11/16/07.

Index performance through February 11, 2013 reflects the performance of the MSCI Chile Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Chile Investable Market Index 25/50.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	999.90	$	3.13	$	1,000.00	$	1,022.10	$	3.16		0.62%


10		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI CHILE CAPPED ETF

The iShares MSCI Chile Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Chilean equities, as represented by the MSCI Chile Investable Market Index 25/50 (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was -7.40%, net of fees, while the total return for the Index was -7.34%.

As represented by the Index, Chilean equities declined for the reporting period and lagged the performance of broad international equity indexes.

Chile relies on copper exports for much of its economic livelihood. The Chilean economy was hurt during the reporting period as decreased demand in China for copper sent the metal’s price to its lowest level in four years and the recent investment boom in the mining industry appeared to come to an end.

As export levels and foreign direct investment trended downward, economic growth cooled throughout the reporting period. After healthy year-on-year GDP growth of 5.0% in the third quarter of 2013, GDP growth slowed to 2.7% in the fourth quarter of 2013, 2.4% in the first quarter of 2014, and 1.9% in the second quarter of 2014, its slowest quarterly GDP growth level since 2009. Consumer confidence declined to its lowest level in more than two years by the end of the reporting period, and retail sales grew at their slowest pace since 2009. In response, the country’s central bank cut its benchmark interest rate six times between October 2013 and August 2014 to help support economic growth.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Utilities	26.38	%
Financials	18.24
Consumer Discretionary	12.21
Consumer Staples	12.09
Materials	10.41
Industrials	8.07
Energy	7.96
Telecommunication Services	2.35
Information Technology	1.98
Health Care	0.31

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


S.A.C.I. Falabella SA	10.36	%
Enersis SA	9.30
Empresas Copec SA	7.96
Empresa Nacional de Electricidad SA	6.89
LATAM Airlines Group SA	5.45
Banco Santander (Chile) SA	5.26
Cencosud SA	4.59
Banco de Chile	4.49
Empresas CMPC SA	4.46
Sociedad Quimica y Minera de Chile SA Series B (Preferred)	4.06

TOTAL	62.82	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI COLOMBIA CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.44%		12.31%		13.21%		11.44%		12.31%		13.21%
Since Inception		11.91%		12.46%		13.21%		14.53%		15.20%		16.05%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 6/18/13. The first day of secondary market trading was 6/20/13.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,251.30	$	3.46	$	1,000.00	$	1,022.10	$	3.11		0.61%


12		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI COLOMBIA CAPPED ETF

The iShares MSCI Colombia Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Colombian equities, as represented by the MSCI All Colombia Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 11.44%, net of fees, while the total return for the Index was 13.21%.

As represented by the Index, Colombian equities advanced for the reporting period but lagged the performance of broad international equity indexes.

Colombia’s economy relies heavily on exports of commodities, with oil and coal representing nearly 60% of exports. Prior to the beginning of the reporting period, economic growth had slowed as global demand for Colombia’s exports had softened. In response, the government announced a stimulus package aimed primarily at the construction sector.

During the reporting period, the measures appeared to have an impact, as activity within the construction industry accelerated. As economic growth improved and consumer prices increased, Colombia’s central bank raised its benchmark interest rate for five consecutive months, from April 2014 through August 2014, in an effort to slow inflation.

In addition, in July 2014, credit rating agency Moody’s Investors Service upgraded Colombia’s sovereign debt rating one level, from Baa3 to Baa2. This change marked Colombia’s highest rating on record and placed Colombia at the same level as its neighbor Brazil.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	35.45	%
Energy	24.44
Utilities	16.84
Materials	10.50
Consumer Staples	9.19
Industrials	3.58

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Ecopetrol SA	12.02	%
Bancolombia SA (Preferred)	9.28
Pacific Rubiales Energy Corp.	8.48
Grupo de Inversiones Suramericana SA	6.68
Cemex Latam Holdings SA	5.09
Banco Davivienda SA (Preferred)	4.83
Interconexion Electrica SA ESP	4.77
Grupo Nutresa SA	4.62
Almacenes Exito SA	4.58
Corporacion Financiera Colombiana SA	4.49

TOTAL	64.84	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI ISRAEL CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		20.67%		22.52%		21.31%		20.67%		22.52%		21.31%
5 Years		4.29%		4.35%		4.59%		23.37%		23.71%		25.17%
Since Inception		2.66%		2.72%		3.12%		18.42%		18.84%		21.82%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 3/26/08. The first day of secondary market trading was 3/28/08.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,015.00	$	3.15	$	1,000.00	$	1,022.10	$	3.16		0.62%


14		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ISRAEL CAPPED ETF

The iShares MSCI Israel Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Israeli equities, as represented by the MSCI Israel Capped Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 20.67%, net of fees, while the total return for the Index was 21.31%.

The Israeli equity market posted a strong return during the reporting period, despite a recent conflict in Gaza that had an adverse impact on the economy and weighed on returns late in the period.

The 50-day conflict in the summer of 2014 dampened tourism and caused international airlines to cancel service for several days. The number of foreign visitors declined 31% in July and August compared to the same period last year as hotel cancellations surged. Israeli consumer spending during the conflict also fell, and GDP, which had been growing at a 3% rate through the second quarter of 2014 versus the same quarter a year ago, was expected by economists to decline. Meanwhile, government spending on the conflict prompted officials to approve spending cuts to avoid a growing budget deficit. However, Israel’s technology sector remained steady, with a series of successful initial public offerings during the summer. In addition, many Israeli companies were relatively insulated from the harmful economic effects of the conflict because they generate the bulk of their sales and profits overseas.

In late August 2014, the Bank of Israel cut the benchmark interest rate by 25 basis points to 0.25%, citing lower inflation and sluggish global growth as well as worries caused by the conflict. It was the second rate cut in consecutive months and the rate is the lowest on record in Israel to date. One effect of lower interest rates is a weakening currency, which the bank expects will boost exports.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	37.85	%
Health Care	23.91
Materials	10.30
Telecommunication Services	7.18
Information Technology	5.96
Energy	5.51
Industrials	5.08
Consumer Staples	3.57
Consumer Discretionary	0.64

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Teva Pharmaceutical Industries Ltd.	23.59	%
Bank Hapoalim BM	10.47
Bank Leumi le-Israel BM	9.04
Israel Chemicals Ltd.	5.99
Bezeq The Israel Telecommunication Corp. Ltd.	4.88
NICE Systems Ltd.	3.84
Delek Group Ltd. (The)	3.01
Mizrahi Tefahot Bank Ltd.	2.99
Israel Discount Bank Ltd. Class A	2.78
Israel Corp. Ltd. (The)	2.66

TOTAL	69.25	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

Management’s Discussion of Fund Performance

iSHARES^® MSCI MEXICO CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		17.42%		18.40%		17.05%		17.42%		18.40%		17.05%
5 Years		12.47%		12.62%		11.93%		79.96%		81.19%		75.66%
10 Years		15.68%		15.68%		15.30%		329.06%		329.01%		315.31%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Index performance through November 30, 2007 reflects the performance of the MSCI Mexico Index. Index performance beginning on December 1, 2007 through February 11, 2013 reflects the performance of the MSCI Mexico Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Mexico Investable Market Index 25/50.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,186.40	$	2.65	$	1,000.00	$	1,022.80	$	2.45		0.48%


16		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI MEXICO CAPPED ETF

The iShares MSCI Mexico Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Mexican equities, as represented by the MSCI Mexico Investable Market Index 25/50 (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 17.42%, net of fees, while the total return for the Index was 17.05%.

As represented by the Index, Mexican equities advanced for the reporting period and performed in line with broad international equity indexes.

Mexico continued to recover, although slowly, from the recession it experienced in 2009. After expanding 1.0% in the third quarter of 2013, GDP growth was a relatively muted 0.17% in the fourth quarter of 2013, followed by 0.44% and 1.0% growth rates in the first and second quarters of 2014, respectively.

Mexico’s export-driven economy has benefited from an increase in export levels in the past several years, due in large part to an increase in automobile production. For the first six months of 2014, automobile output rose 7.4%, supported by new plants owned by three key automobile manufacturers. Export growth strengthened overall during the reporting period, and the services sector, which reflects domestic demand, expanded.

Mexico’s central bank cut its benchmark interest rate three times during the reporting period, the latest time in June 2014 to 3%, a record low, in an effort to further stimulate economic growth. In July 2014, the central bank held rates steady, citing indications of improved economic growth levels.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Consumer Staples	22.80	%
Financials	20.99
Telecommunication Services	16.91
Materials	15.80
Industrials	12.17
Consumer Discretionary	10.32
Health Care	1.01

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


America Movil SAB de CV Series L	16.69	%
Grupo Televisa SAB de CV CPO	7.37
Fomento Economico Mexicano SAB de CV BD Units	7.25
Grupo Financiero Banorte SAB de CV Series O	6.70
Cemex SAB de CV CPO	6.10
Wal-Mart de Mexico SAB de CV Series V	4.66
Grupo Mexico SAB de CV Series B	4.59
Alfa SAB de CV Series A	3.93
Fibra Uno Administracion SAB de CV	3.58
Grupo Financiero Inbursa SAB de CV Series O	3.09

TOTAL	63.96	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			17

Management’s Discussion of Fund Performance

iSHARES^® MSCI SOUTH AFRICA ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.13%		24.00%		23.93%		23.13%		24.00%		23.93%
5 Years		9.47%		9.31%		10.16%		57.19%		56.06%		62.23%
10 Years		12.23%		12.11%		13.25%		217.16%		213.60%		246.99%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,142.40	$	3.35	$	1,000.00	$	1,022.10	$	3.16		0.62%


18		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SOUTH AFRICA ETF

The iShares MSCI South Africa ETF (the “Fund”) seeks to track the investment results of an index composed of South African equities, as represented by the MSCI South Africa Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 23.13%, net of fees, while the total return for the Index was 23.93%.

South African stocks, as represented by the Index, produced strong returns for the reporting period. The Index declined in early 2014 before staging a strong recovery during the second half of the reporting period.

During early 2014, the Index declined temporarily after the Fed announced plans to reduce stimulus measures. Such a move would typically cause interest rates to rise, and make investors more cautious about investing in riskier assets. However, when U.S. interest rates subsequently remained low, investor appetite towards risk returned and emerging markets such as South Africa rebounded. In addition, South African companies benefited from their significant operations in other African markets with stronger economic growth trends.

However, South Africa appears to be facing a period of slower growth after a decade of high growth driven by strong demand for commodities and an expanding middle class. Most recently, the economy has been disrupted by labor unrest, a high crime rate and a burdensome regulatory climate.

During the past decade, rising commodity prices resulted in strong appreciation of the South African rand. More recently, however, South Africa’s rising budget deficit and weakening economic fundamentals have depressed the currency. In July 2014, South Africa’s central bank increased short-term interest rates from 5.5% to 5.75% to combat inflation, which hovered around 6% throughout most of the reporting period. This was the second rate increase during the reporting period, as the central bank also increased the rate by 50 basis points at its January 2014 meeting.

In terms of sector performance, consumer discretionary stocks posted the strongest contribution to Index returns for the reporting period, followed by financials and telecommunication services stocks. The consumer staples, materials and industrials sectors lagged the other sectors.

PORTFOLIO ALLOCATION As of 8/31/14


Sector		Percentage of Total Investments*


Financials	27.50	%
Consumer Discretionary	24.68
Telecommunication Services	13.28
Energy	10.64
Materials	9.78
Health Care	6.00
Consumer Staples	4.88
Industrials	3.24

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/14


Security		Percentage of Total Investments*


Naspers Ltd. Class N	15.71	%
MTN Group Ltd.	11.89
Sasol Ltd.	10.00
Standard Bank Group Ltd.	4.91
FirstRand Ltd.	3.92
Sanlam Ltd.	3.56
Remgro Ltd.	3.43
Steinhoff International Holdings Ltd.	3.23
Aspen Pharmacare Holdings Ltd.	2.86
Bidvest Group Ltd.	2.59

TOTAL	62.10	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			19

Management’s Discussion of Fund Performance

iSHARES^® MSCI TURKEY ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.52%		16.36%		16.42%		15.52%		16.36%		16.42%
5 Years		5.16%		4.91%		5.68%		28.61%		27.11%		31.81%
Since Inception		3.73%		3.65%		4.17%		26.57%		25.98%		30.06%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 3/26/08. The first day of secondary market trading was 3/28/08.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,321.30	$	3.63	$	1,000.00	$	1,022.10	$	3.16		0.62%


20		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI TURKEY ETF

The iShares MSCI Turkey ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Turkish equities, as represented by the MSCI Turkey Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 15.52%, net of fees, while the total return for the Index was 16.42%.

The Turkish equity market, as represented by the Index, posted a solid return during the reporting period, slightly underperforming the broad international equity market.

Turkey is the largest national economy in Central and Eastern Europe, representing a mix of modern industry along with traditional agriculture. Although the private sector is growing, the state remains a major participant in basic industry, banking, transportation and communications.

Turkey’s economic growth nearly doubled to 4% during 2013, and continued that level of growth into early 2014. This took place despite the country’s dependence on exports to struggling economies in Europe and despite armed conflicts in neighboring Russia/Ukraine and the Middle East. However, economic growth declined during the second quarter of 2014.

The Turkish stock market declined during the first half of the reporting period, before rebounding sharply in the second half of the reporting period. In general, emerging markets saw investment performance lag after the Fed announced plans to reduce stimulus measures, which would potentially cause interest rates to rise, and make investors more cautious about investing in riskier assets. However, as the reporting period progressed, rising expectations that the Fed would be slower to raise rates than originally had been anticipated, as well as reduced political unrest, helped to refuel investors’ appetite for risk, boosting returns for emerging markets equities.

In May 2013, the country’s credit rating was increased by ratings agency Moody’s Investors Service from non-investment grade status to investment grade status for the first time in 20 years. However, political unrest in the region has caused the country’s bond yields to surge higher, a sign that investors require greater return to compensate for increased risk.

PORTFOLIO ALLOCATION As of 8/31/14


Sector		Percentage of Total Investments*


Financials	46.95	%
Consumer Staples	13.75
Industrials	12.80
Telecommunication Services	8.29
Materials	7.85
Consumer Discretionary	5.53
Energy	3.89
Utilities	0.49
Health Care	0.36
Information Technology	0.09

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/14


Security		Percentage of Total Investments*


Turkiye Garanti Bankasi AS	11.25	%
Akbank TAS	8.53
Turkcell Iletisim Hizmetleri AS	6.40
BIM Birlesik Magazalar AS	6.21
Turkiye Halk Bankasi AS	5.70
Haci Omer Sabanci Holding AS	5.28
Turkiye Is Bankasi AS Class C	5.05
KOC Holding AS	4.03
Turkiye Petrol Rafinerileri AS	3.66
Anadolu Efes Biracilik ve Malt Sanayii AS	3.42

TOTAL	59.53	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			21

Management’s Discussion of Fund Performance

iSHARES^® MSCI USA ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		24.98%		25.01%		25.22%		24.98%		25.01%		25.22%
Since Inception		15.71%		15.71%		15.94%		87.98%		87.98%		89.44%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 5/5/10. The first day of secondary market trading was 5/7/10.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,085.30	$	0.79	$	1,000.00	$	1,024.40	$	0.77		0.15%


22		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI USA ETF

The iShares MSCI USA ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities, as represented by the MSCI USA Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 24.98%, net of fees, while the total return for the Index was 25.22%.

Domestic stocks, as represented by the Index, generated strong performance during the reporting period, and outperformed the broad international developed equity market. This outperformance reflected the overall improvement in the U.S. economy, as the combination of accommodative monetary policy, low inflation, steady job growth, rising corporate profits and healthy consumer sentiment helped drive economic growth in the United States during the majority of the reporting period.

Every sector of the Index posted a positive double-digit return during the reporting period. The information technology sector was the strongest contributor to Index performance, as consumer spending on technology offset slow business spending. Health care was the second largest contributor to performance, as health care stocks gained despite the changing competitive landscape due to the Affordable Care Act. The energy sector also delivered strong results for the reporting period, as energy companies rallied amid rising U.S. production and volatile prices of oil and natural gas. The industrials and materials sectors also added to Index performance during the reporting period, as manufacturing activity continued to expand.

The financials sector posted a solid, positive return while lagging many of the other sectors in the Index on a relative basis. Consumer-based stocks also trailed the overall Index during the reporting period, as retail sales declined sharply during the unusually cold winter. Telecommunication services and utilities underperformed the broader market, although these collectively represented only 6% of the Index on average, which limited their impact on Index performance during the reporting period.

PORTFOLIO ALLOCATION As of 8/31/14


Sector		Percentage of Total Investments*


Information Technology	19.49	%
Financials	15.99
Health Care	13.62
Consumer Discretionary	12.54
Energy	10.45
Industrials	10.03
Consumer Staples	9.15
Materials	3.51
Utilities	2.77
Telecommunication Services	2.45

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/14


Security		Percentage of Total Investments*


Apple Inc.	3.30	%
Exxon Mobil Corp.	2.27
Microsoft Corp.	1.90
Johnson & Johnson	1.56
General Electric Co.	1.39
Wells Fargo & Co.	1.37
Chevron Corp.	1.31
J.P. Morgan Chase & Co.	1.20
Procter & Gamble Co. (The)	1.20
Verizon Communications Inc.	1.10

TOTAL	16.60	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			23

About Fund Performance

Shareholder Expenses


24		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI BRAZIL CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 59.08%

AEROSPACE & DEFENSE — 1.38%
Embraer SA		7,705,732	$	75,109,837

				75,109,837
BEVERAGES — 6.01%
AMBEV SA		44,932,160		327,319,706

				327,319,706
CAPITAL MARKETS — 0.75%
CETIP SA – Mercados Organizados		2,815,683		41,086,032

				41,086,032
COMMERCIAL BANKS — 5.40%
Banco Bradesco SA		4,345,920		77,729,534
Banco do Brasil SA		8,982,197		140,460,357
Banco Santander (Brasil) SA Units		11,002,041		76,016,873

				294,206,764
CONTAINERS & PACKAGING — 0.59%
Klabin SA		6,373,620		32,387,236

				32,387,236
DIVERSIFIED CONSUMER SERVICES — 3.02%
Estacio Participacoes SA		3,637,400		48,329,602
Kroton Educacional SA		3,885,616		116,435,634

				164,765,236
DIVERSIFIED FINANCIAL SERVICES — 2.33%
BM&F Bovespa SA		21,047,200		126,985,855

				126,985,855
ELECTRIC UTILITIES — 1.59%
Centrais Eletricas Brasileiras SA		4,537,899		16,528,738
CPFL Energia SA		3,466,400		34,996,302
EDP Energias do Brasil SA		3,851,800		19,452,231
Transmissora Alianca de Energia Eletrica SA		1,526,000		15,917,785

				86,895,056
FOOD & STAPLES RETAILING — 0.54%
Raia Drogasil SA		3,025,900		29,480,736

				29,480,736
FOOD PRODUCTS — 4.81%
BRF SA		7,424,850		198,765,844
JBS SA		9,187,622		41,553,813
M Dias Branco SA		485,600		21,919,332

				262,238,989


Security	Shares		Value

HEALTH CARE PROVIDERS & SERVICES — 0.77%
Odontoprev SA		2,250,600	$	9,816,923
Qualicorp SA^a		2,590,400		32,415,454

				42,232,377
HOUSEHOLD DURABLES — 0.48%
Cyrela Brazil Realty SA Empreendimentos e Participacoes		4,127,500		26,175,605

				26,175,605
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.69%
Tractebel Energia SA		2,235,400		37,473,958

				37,473,958
INSURANCE — 2.94%
BB Seguridade Participacoes SA		7,289,500		116,433,925
Porto Seguro SA		1,710,800		25,368,972
Sul America SA Units		2,670,850		18,465,755

				160,268,652
INTERNET & CATALOG RETAIL — 0.49%
B2W Companhia Global do Varejo^a		1,567,200		26,545,498

				26,545,498
IT SERVICES — 2.78%
Cielo SA		8,070,464		151,342,615

				151,342,615
MACHINERY — 0.80%
WEG SA		3,486,530		43,613,763

				43,613,763
METALS & MINING — 3.35%
Companhia Siderurgica Nacional SA		9,544,054		41,886,264
Vale SA		10,800,900		140,565,444

				182,451,708
MULTILINE RETAIL — 1.30%
Lojas Americanas SA		2,690,950		15,634,221
Lojas Renner SA		1,604,600		54,946,013

				70,580,234
OIL, GAS & CONSUMABLE FUELS — 7.60%
Cosan SA Industria e Comercio		1,742,490		36,211,832
Petroleo Brasileiro SA		27,483,744		271,944,802
Ultrapar Participacoes SA		4,104,700		105,830,101

				413,986,735


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI BRAZIL CAPPED ETF

August 31, 2014


Security	Shares		Value

PAPER & FOREST PRODUCTS — 0.84%
Duratex SA		2,262,511	$	10,182,336
Fibria Celulose SA^a		3,410,126		35,479,758

				45,662,094
PERSONAL PRODUCTS — 1.51%
Hypermarcas SA^a		4,638,500		40,341,092
Natura Cosmeticos SA		2,274,800		41,692,721

				82,033,813
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.93%
BR Malls Participacoes SA		5,346,500		55,602,357
BR Properties SA		2,758,700		18,370,374
Multiplan Empreendimentos Imobiliarios SA		1,206,800		31,125,306

				105,098,037
ROAD & RAIL — 1.12%
ALL – America Latina Logistica SA		6,756,100		24,910,203
Localiza Rent A Car SA		2,028,340		36,124,042

				61,034,245
SOFTWARE — 0.56%
Totvs SA		1,685,700		30,782,643

				30,782,643
SPECIALTY RETAIL — 0.38%
Via Varejo SA^a		1,865,700		20,845,344

				20,845,344
TOBACCO — 0.83%
Souza Cruz SA		4,849,100		45,423,403

				45,423,403
TRANSPORTATION INFRASTRUCTURE — 2.12%
CCR SA		10,483,000		94,918,809
EcoRodovias Infraestrutura e Logistica SA		3,248,600		20,761,538

				115,680,347
WATER UTILITIES — 1.09%
Companhia de Saneamento Basico do Estado de Sao Paulo		4,434,900		42,395,706
Companhia de Saneamento de Minas Gerais SA		958,600		17,136,600

				59,532,306


Security	Shares		Value

WIRELESS TELECOMMUNICATION SERVICES — 1.08%
TIM Participacoes SA		10,479,690	$	58,778,624

				58,778,624

TOTAL COMMON STOCKS
(Cost: $1,913,040,349)				3,220,017,448

PREFERRED STOCKS — 40.62%

CHEMICALS — 0.34%
Braskem SA Class A		2,730,836		18,611,986

				18,611,986
COMMERCIAL BANKS — 18.42%
Banco Bradesco SA		20,207,436		368,828,266
Banco do Estado do Rio Grande do Sul SA Class B		2,987,010		20,624,927
Itau Unibanco Holding SA		27,278,611		492,040,285
Itausa – Investimentos Itau SA		25,141,529		122,474,432

				1,003,967,910
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.87%
Oi SA		39,300,293		25,467,777
Telefonica Brasil SA		3,583,574		76,634,719

				102,102,496
ELECTRIC UTILITIES — 2.27%
Centrais Eletricas Brasileiras SA Class B		3,434,551		18,956,763
Companhia Energetica de Minas Gerais		8,945,890		76,603,094
Companhia Paranaense de Energia Class B		1,571,800		27,859,752

				123,419,609
FOOD & STAPLES RETAILING — 1.51%
Companhia Brasileira de Distribuicao		1,619,864		82,471,858

				82,471,858
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.91%
AES Tiete SA		1,672,100		15,035,486
Companhia Energetica de Sao Paulo Class B		2,429,270		34,405,294

				49,440,780
METALS & MINING — 6.23%
Bradespar SA		3,196,600		29,215,200
Gerdau SA		10,481,046		60,706,735
Metalurgica Gerdau SA		3,845,590		27,257,964


26		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI BRAZIL CAPPED ETF

August 31, 2014


Security	Shares		Value

Usinas Siderurgicas de Minas Gerais SA Class A		5,898,300	$	21,299,307
Vale SA Class A		17,306,200		200,863,451

				339,342,657
MULTILINE RETAIL — 0.87%
Lojas Americanas SA		6,692,906		47,380,231

				47,380,231
OIL, GAS & CONSUMABLE FUELS — 7.84%
Petroleo Brasileiro SA		40,962,178		427,461,668

				427,461,668
PAPER & FOREST PRODUCTS — 0.36%
Suzano Papel e Celulose SA Class A		4,881,600		19,438,697

				19,438,697

TOTAL PREFERRED STOCKS
(Cost: $1,238,598,121)				2,213,637,892

SHORT-TERM INVESTMENTS — 0.08%

MONEY MARKET FUNDS — 0.08%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,c		4,267,567		4,267,567

				4,267,567

TOTAL SHORT-TERM INVESTMENTS (Cost: $4,267,567)				4,267,567

TOTAL INVESTMENTS IN SECURITIES — 99.78%
(Cost: $3,155,906,037)				5,437,922,907
Other Assets, Less Liabilities — 0.22%				11,762,428

NET ASSETS — 100.00%			$	5,449,685,335

^a	Non-income earning security.

^b	Affiliated issuer. See Note 2.

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Schedule of Investments

iSHARES^® MSCI CANADA ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.76%

AEROSPACE & DEFENSE — 0.54%
Bombardier Inc. Class B		3,657,000	$	12,338,898
CAE Inc.		667,000		8,264,098

				20,602,996
AUTO COMPONENTS — 1.66%
Magna International Inc. Class A		553,150		62,864,560

				62,864,560
CAPITAL MARKETS — 0.83%
CI Financial Corp.		579,600		19,064,419
IGM Financial Inc.		256,450		12,265,154

				31,329,573
CHEMICALS — 3.35%
Agrium Inc.		366,850		34,772,544
Methanex Corp.		244,950		16,416,561
Potash Corp. of Saskatchewan Inc.		2,149,350		75,670,594

				126,859,699
COMMERCIAL BANKS — 26.10%
Bank of Montreal		1,638,750		126,386,564
Bank of Nova Scotia		3,091,200		205,291,586
Canadian Imperial Bank of Commerce		1,009,700		96,720,836
National Bank of Canada		832,600		40,150,547
Royal Bank of Canada		3,662,750		272,726,727
Toronto-Dominion Bank (The)		4,679,350		246,962,699

				988,238,959
COMPUTERS & PERIPHERALS — 0.34%
BlackBerry Ltd.^a,b		1,270,750		12,944,722

				12,944,722
CONSTRUCTION & ENGINEERING — 0.52%
SNC-Lavalin Group Inc.		386,400		19,833,835

				19,833,835

DIVERSIFIED FINANCIAL SERVICES — 0.35%
Onex Corp.		225,400		13,155,173

				13,155,173
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.42%
BCE Inc.		652,050		29,424,151
Bell Aliant Inc.		189,750		5,396,439
TELUS Corp. NVS		523,215		19,124,660

				53,945,250
ELECTRIC UTILITIES — 0.44%
Fortis Inc.		543,950		16,808,669

				16,808,669


Security	Shares		Value

FOOD & STAPLES RETAILING — 2.51%
Alimentation Couche-Tard Inc. Class B		1,060,300	$	31,874,979
Empire Co. Ltd. Class A		140,300		9,776,702
George Weston Ltd.		131,100		10,414,277
Loblaw Companies Ltd.		576,150		28,787,582
Metro Inc. Class A		220,800		14,348,183

				95,201,723
FOOD PRODUCTS — 0.52%
Saputo Inc.		322,000		19,633,169

				19,633,169
HEALTH CARE PROVIDERS & SERVICES — 0.65%
Catamaran Corp.^a		525,550		24,820,398

				24,820,398
HOTELS, RESTAURANTS & LEISURE — 0.73%
Tim Hortons Inc.		341,550		27,519,216

				27,519,216
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.21%
TransAlta Corp.		684,250		7,910,113

				7,910,113
INSURANCE — 7.45%
Fairfax Financial Holdings Ltd.		52,900		24,432,753
Great-West Lifeco Inc.		761,300		22,331,935
Industrial Alliance Insurance and Financial Services Inc.		253,000		10,947,979
Intact Financial Corp.		334,650		22,801,550
Manulife Financial Corp.		4,709,250		95,292,037
Power Corp. of Canada		943,000		27,853,164
Power Financial Corp.		632,500		20,495,391
Sun Life Financial Inc.		1,551,350		57,820,770

				281,975,579
IT SERVICES — 0.53%
CGI Group Inc. Class A^a,b		561,200		19,907,791

				19,907,791
MEDIA — 1.59%
Shaw Communications Inc. Class B		987,850		24,943,269
Thomson Reuters Corp.		925,750		35,161,005

				60,104,274
METALS & MINING — 8.06%
Agnico-Eagle Mines Ltd.		524,400		20,100,993
Barrick Gold Corp.		2,960,100		54,549,342
Eldorado Gold Corp.		1,815,850		15,049,082


28		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CANADA ETF

August 31, 2014


Security	Shares		Value

First Quantum Minerals Ltd.		1,500,750	$	33,771,198
Franco-Nevada Corp.		396,750		22,405,997
Goldcorp Inc.		2,067,700		58,194,866
Kinross Gold Corp.^a		2,898,000		11,487,808
New Gold Inc.^a,b		1,274,200		8,257,779
Silver Wheaton Corp.		909,650		22,775,842
Teck Resources Ltd. Class B		1,440,950		32,797,470
Turquoise Hill Resources Ltd.^a,b		2,036,650		6,871,758
Yamana Gold Inc.		2,205,700		18,829,022

				305,091,157
MULTI-UTILITIES — 0.51%
ATCO Ltd. Class I NVS		193,200		8,333,559
Canadian Utilities Ltd. Class A		308,200		11,120,487

				19,454,046
MULTILINE RETAIL — 0.90%
Canadian Tire Corp. Ltd. Class A NVS		194,350		20,123,892
Dollarama Inc.		163,300		13,935,636

				34,059,528
OIL, GAS & CONSUMABLE FUELS — 27.12%
AltaGas Ltd.		333,500		16,168,486
ARC Resources Ltd.		800,400		23,191,124
Athabasca Oil Corp.^a		813,050		5,936,258
Baytex Energy Corp.		419,750		18,813,777
Cameco Corp.		1,005,100		19,698,941
Canadian Natural Resources Ltd.		2,778,400		121,381,310
Canadian Oil Sands Ltd.		1,231,650		26,591,604
Cenovus Energy Inc.		1,922,800		61,472,878
Crescent Point Energy Corp.		1,045,350		43,365,522
Enbridge Inc.		2,121,750		106,072,830
Encana Corp.		1,882,550		43,508,208
Enerplus Corp.		518,650		11,900,621
Husky Energy Inc.		875,150		26,704,277
Imperial Oil Ltd.		754,400		40,239,303
Inter Pipeline Ltd.		815,350		27,269,784
Keyera Corp.		212,750		18,761,618
MEG Energy Corp.^a		395,600		14,124,534
Pacific Rubiales Energy Corp.		796,950		16,625,931
Pembina Pipeline Corp.		821,100		37,824,722
Pengrowth Energy Corp.		1,331,700		8,507,657
Penn West Petroleum Ltd.		1,247,750		9,719,740
Peyto Exploration & Development Corp.		371,450		13,193,794
Suncor Energy Inc.		3,731,750		153,535,840
Talisman Energy Inc.		2,630,050		26,500,527


Security	Shares		Value

Tourmaline Oil Corp.^a		432,400	$	21,951,849
TransCanada Corp.		1,799,750		96,943,436
Vermilion Energy Inc.		261,050		17,021,495

				1,027,026,066
PHARMACEUTICALS — 2.51%
Valeant Pharmaceuticals International Inc.^a		809,600		95,069,692

				95,069,692
REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.44%
H&R Real Estate Investment Trust		336,950		7,184,746
RioCan Real Estate Investment Trust		378,350		9,448,723

				16,633,469
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.89%
Brookfield Asset Management Inc. Class A		1,408,750		67,466,755
First Capital Realty Inc.		238,050		4,239,803

				71,706,558
ROAD & RAIL — 6.33%
Canadian National Railway Co.		2,091,850		150,590,059
Canadian Pacific Railway Ltd.		443,900		89,123,744

				239,713,803
SOFTWARE — 0.46%
Open Text Corp.		309,350		17,418,850

				17,418,850
TEXTILES, APPAREL & LUXURY GOODS — 0.45%
Gildan Activewear Inc.		295,550		16,985,100

				16,985,100
TRADING COMPANIES & DISTRIBUTORS — 0.36%
Finning International Inc.		437,000		13,656,879

				13,656,879
WIRELESS TELECOMMUNICATION SERVICES — 0.99%
Rogers Communications Inc. Class B		920,000		37,588,753

				37,588,753

TOTAL COMMON STOCKS
(Cost: $3,669,195,894)				3,778,059,600

SHORT-TERM INVESTMENTS — 0.85%

MONEY MARKET FUNDS — 0.85%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		28,348,652		28,348,652


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI CANADA ETF

August 31, 2014


Security	Shares		Value

BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		1,784,625	$	1,784,625
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		1,917,613		1,917,613

				32,050,890

TOTAL SHORT-TERM INVESTMENTS
(Cost: $32,050,890)				32,050,890

TOTAL INVESTMENTS IN SECURITIES — 100.61%
(Cost: $3,701,246,784)				3,810,110,490
Other Assets, Less Liabilities — (0.61)%				(23,204,260	)

NET ASSETS — 100.00%			$	3,786,906,230

NVS — Non-Voting Shares

^a	Non-income earning security.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

Financial futures contracts purchased as of August 31, 2014 were as follows:


Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Unrealized Appreciation (Depreciation)
	134	S&P/TSX 60 Index (Sept. 2014)	Montreal	$	22,168,832	$	893,090

See notes to financial statements.


30		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI CHILE CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 93.57%

AIRLINES — 5.43%
LATAM Airlines Group SA^a		1,548,145	$	19,152,339

				19,152,339
BEVERAGES — 4.30%
Compania Cervecerias Unidas SA		881,943		9,472,760
Vina Concha y Toro SA		2,907,432		5,670,328

				15,143,088
COMMERCIAL BANKS — 15.50%
Banco de Chile		129,407,440		15,791,909
Banco de Credito e Inversiones		190,597		10,387,762
Banco Santander (Chile) SA		312,394,376		18,509,129
CorpBanca SA		809,060,289		9,941,564

				54,630,364
CONSTRUCTION & ENGINEERING — 0.99%
Besalco SA		2,237,657		1,531,399
SalfaCorp SA		2,572,463		1,966,799

				3,498,198
DIVERSIFIED FINANCIAL SERVICES — 0.83%
Inversiones la Construccion SA		221,215		2,913,836

				2,913,836
ELECTRIC UTILITIES — 10.36%
E.CL SA		2,639,867		3,807,854
Enersis SA		97,126,531		32,695,215

				36,503,069
FOOD & STAPLES RETAILING — 4.58%
Cencosud SA		5,383,636		16,153,639

				16,153,639
FOOD PRODUCTS — 1.04%
Empresas Aquachile SA^a		3,320,738		2,154,268
Multiexport Foods SA^a		6,692,098		1,528,750

				3,683,018
HEALTH CARE PROVIDERS & SERVICES — 0.31%
Cruz Blanca Salud SA		1,326,692		1,081,274

				1,081,274
HOUSEHOLD DURABLES — 0.25%
Socovesa SA		4,038,966		870,761

				870,761
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 12.52%
AES Gener SA		15,460,203		7,903,682
Colbun SA		45,853,876		12,000,783


Security	Shares		Value

Empresa Nacional de Electricidad SA		15,854,182	$	24,221,995

				44,126,460
IT SERVICES — 1.97%
Sonda SA		3,001,776		6,956,263

				6,956,263
MARINE — 0.75%
Compania SudAmericana de Vapores SA^a		62,692,134		2,638,497

				2,638,497
METALS & MINING — 1.55%
CAP SA		460,108		5,466,369

				5,466,369
MULTILINE RETAIL — 11.32%
Empresas Hites SA		1,939,973		919,371
Ripley Corp. SA		4,739,100		2,558,665
S.A.C.I. Falabella SA		4,838,522		36,437,818

				39,915,854
OIL, GAS & CONSUMABLE FUELS — 7.94%
Empresas Copec SA		2,228,115		28,006,660

				28,006,660
PAPER & FOREST PRODUCTS — 4.78%
Empresas CMPC SA		6,293,889		15,666,611
Masisa SA		26,247,583		1,197,430

				16,864,041
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.87%
Parque Arauco SA		3,553,974		6,607,363

				6,607,363
TEXTILES, APPAREL & LUXURY GOODS — 0.61%
Forus SA		506,009		2,139,030

				2,139,030
TRANSPORTATION INFRASTRUCTURE — 0.88%
Sociedad Matriz SAAM SA		37,585,561		3,095,693

				3,095,693
WATER UTILITIES — 3.45%
Aguas Andinas SA Series A		13,732,765		8,612,120
Inversiones Aguas Metropolitanas SA		2,204,197		3,532,418

				12,144,538
WIRELESS TELECOMMUNICATION SERVICES — 2.34%
Empresa Nacional de Telecomunicaciones SA		719,394		8,252,595

				8,252,595

TOTAL COMMON STOCKS
(Cost: $284,054,146)				329,842,949


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI CHILE CAPPED ETF

August 31, 2014


Security	Shares		Value

PREFERRED STOCKS — 6.19%

BEVERAGES — 2.14%
Coca-Cola Embonor SA		1,346,556	$	2,265,511
Embotelladora Andina SA Class B		1,609,332		5,275,366

				7,540,877
CHEMICALS — 4.05%
Sociedad Quimica y Minera de Chile SA Series B		521,686		14,281,529

				14,281,529

TOTAL PREFERRED STOCKS (Cost: $22,661,488)				21,822,406

SHORT-TERM INVESTMENTS — 0.09%

MONEY MARKET FUNDS — 0.09%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,c		316,985		316,985

				316,985

TOTAL SHORT-TERM INVESTMENTS (Cost: $316,985)				316,985

TOTAL INVESTMENTS IN SECURITIES — 99.85%
(Cost: $307,032,619)				351,982,340
Other Assets, Less Liabilities — 0.15%				517,113

NET ASSETS — 100.00%			$	352,499,453

^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		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI COLOMBIA CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 78.14%

COMMERCIAL BANKS — 4.62%
Banco de Bogota SA		10,260	$	387,949
Bancolombia SA		46,152		709,679
Grupo Aval Acciones y Valores SA		103,230		76,678

				1,174,306
CONSTRUCTION MATERIALS — 9.45%
Cementos Argos SA		42,588		250,850
Cemex Latam Holdings SA^a		127,890		1,266,601
Grupo Argos SA		71,118		881,538

				2,398,989
DIVERSIFIED FINANCIAL SERVICES — 14.07%
Bolsa de Valores de Colombia		60,729,516		791,388
Corporacion Financiera Colombiana SA NVS		52,398		1,117,088
Grupo de Inversiones Suramericana SA		72,360		1,663,362

				3,571,838
ELECTRIC UTILITIES — 12.46%
Celsia SA ESP		289,890		982,192
Interconexion Electrica SA ESP		234,882		1,187,602
Isagen SA ESP		664,848		994,612

				3,164,406
FOOD & STAPLES RETAILING — 4.49%
Almacenes Exito SA		66,978		1,140,244

				1,140,244
FOOD PRODUCTS — 4.52%
Grupo Nutresa SA		76,914		1,149,029

				1,149,029
GAS UTILITIES — 4.05%
Empresa de Energia de Bogota SA		1,132,956		1,027,571

				1,027,571
METALS & MINING — 0.52%
Mineros SA		87,826		132,761

				132,761
OIL, GAS & CONSUMABLE FUELS — 23.96%
Canacol Energy Ltd.^a		156,060		981,174
Ecopetrol SA		1,726,002		2,991,455
Pacific Rubiales Energy Corp.		101,232		2,111,897

				6,084,526

TOTAL COMMON STOCKS
(Cost: $18,094,904)				19,843,670


Security	Shares		Value

PREFERRED STOCKS — 19.90%

AIRLINES — 3.51%
Avianca Holdings SA		437,976	$	890,358

				890,358
COMMERCIAL BANKS — 14.67%
Banco Davivienda SA		72,378		1,203,502
Bancolombia SA		145,872		2,311,506
Grupo Aval Acciones y Valores SA		282,528		211,331

				3,726,339
CONSTRUCTION MATERIALS — 0.33%
Grupo Argos SA		6,768		82,552

				82,552
DIVERSIFIED FINANCIAL SERVICES — 1.39%
Grupo de Inversiones Suramericana SA		15,570		353,854

				353,854

TOTAL PREFERRED STOCKS
(Cost: $4,337,319)				5,053,103

SHORT-TERM INVESTMENTS — 0.21%

MONEY MARKET FUNDS — 0.21%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,c		53,269		53,269

				53,269

TOTAL SHORT-TERM INVESTMENTS
(Cost: $53,269)				53,269

TOTAL INVESTMENTS IN SECURITIES — 98.25%
(Cost: $22,485,492)				24,950,042
Other Assets, Less Liabilities — 1.75%				445,630

NET ASSETS — 100.00%			$	25,395,672

NVS — Non-Voting Shares

^a	Non-income earning security.

^b	Affiliated issuer. See Note 2.

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			33

Schedule of Investments

iSHARES^® MSCI ISRAEL CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.72%

AEROSPACE & DEFENSE — 2.47%
Elbit Systems Ltd.		50,496	$	3,009,892

				3,009,892
BIOTECHNOLOGY — 0.32%
Kamada Ltd.^a		56,016		384,910

				384,910
CHEMICALS — 10.27%
Frutarom		79,440		1,996,909
Israel Chemicals Ltd.		939,744		7,268,505
Israel Corp. Ltd. (The)^a		5,712		3,223,845

				12,489,259
COMMERCIAL BANKS — 25.81%
Bank Hapoalim BM		2,239,776		12,710,308
Bank Leumi le-Israel BM^a		2,805,264		10,966,661
First International Bank of Israel Ltd.		46,512		729,927
Israel Discount Bank Ltd. Class A^a		2,004,529		3,370,467
Mizrahi Tefahot Bank Ltd.		295,008		3,625,183

				31,402,546
COMMUNICATIONS EQUIPMENT — 0.56%
Ituran Location and Control Ltd.		31,440		683,884

				683,884
CONSTRUCTION & ENGINEERING — 1.26%
Electra (Israel) Ltd.		3,648		547,343
Shikun & Binui Ltd.		418,896		981,736

				1,529,079
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.86%
Bezeq The Israel Telecommunication Corp. Ltd.		3,125,616		5,917,683

				5,917,683
ELECTRICAL EQUIPMENT — 0.73%
Ormat Industries Ltd.		119,184		882,090

				882,090
FOOD & STAPLES RETAILING — 0.92%
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd.		13,344		664,508
Shufersal Ltd.		161,088		459,555

				1,124,063
FOOD PRODUCTS — 2.64%
Osem Investment Ltd.		76,080		1,680,694
Strauss Group Ltd.		83,808		1,531,532

				3,212,226


Security	Shares		Value

INDUSTRIAL CONGLOMERATES — 0.36%
Discount Investment Corp. Ltd. Registered^a		53,280	$	438,675

				438,675
INSURANCE — 3.59%
Clal Insurance Enterprises Holdings Ltd.^a		40,368		740,751
Harel Insurance Investments & Financial Services Ltd.		226,704		1,276,973
Menorah Mivtachim Holdings Ltd.		54,960		622,235
Migdal Insurance & Financial Holdings Ltd.		837,360		1,274,907
Phoenix Holdings Ltd.		131,041		452,055

				4,366,921
IT SERVICES — 0.32%
MATRIX IT Ltd.		72,048		393,716

				393,716
MACHINERY — 0.25%
Plasson Industries Ltd.		7,344		302,536

				302,536
OIL, GAS & CONSUMABLE FUELS — 5.49%
Delek Group Ltd. (The)		10,032		3,654,747
Naphtha Israel Petroleum Corp. Ltd.^a		72,097		517,226
Oil Refineries Ltd.^a		2,325,120		768,872
Paz Oil Co. Ltd.		11,280		1,740,807

				6,681,652
PHARMACEUTICALS — 23.52%
Teva Pharmaceutical Industries Ltd.		548,400		28,615,648

				28,615,648
REAL ESTATE MANAGEMENT & DEVELOPMENT — 8.35%
Africa Israel Investments Ltd.^a		231,888		383,405
Africa Israel Properties Ltd.^a		27,025		477,497
Airport City Ltd.^a		70,080		687,367
AL-ROV (Israel) Ltd.^a		8,640		279,897
Alony Hetz Properties & Investments Ltd.		169,296		1,265,308
Alrov Properties and Lodgings Ltd.^a		9,552		226,192
Amot Investments Ltd.		186,576		599,716
Bayside Land Corp. Ltd.		1,344		364,926
Gazit Globe Ltd.		192,576		2,420,961
Jerusalem Economy Ltd.		42,288		356,587
Jerusalem Oil Exploration Ltd.^a		18,480		793,409
Melisron Ltd.		32,641		863,307


34		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ISRAEL CAPPED ETF

August 31, 2014


Security	Shares		Value

Nitsba Holdings (1995) Ltd.^a		54,576	$	895,784
Norstar Holdings Inc.		19,584		537,292

				10,151,648
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.23%
EZchip Semiconductor Ltd.^a		59,664		1,499,124

				1,499,124
SOFTWARE — 3.83%
NICE Systems Ltd.		120,336		4,657,102

				4,657,102
SPECIALTY RETAIL — 0.64%
Delek Automotive Systems Ltd.		72,720		774,397

				774,397
WIRELESS TELECOMMUNICATION SERVICES — 2.30%
Cellcom Israel Ltd.		122,592		1,437,065
Partner Communications Co. Ltd.^a		187,632		1,356,078

				2,793,143

TOTAL COMMON STOCKS (Cost: $138,192,292)				121,310,194

SHORT-TERM INVESTMENTS — 0.01%

MONEY MARKET FUNDS — 0.01%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,c		11,119		11,119

				11,119

TOTAL SHORT-TERM INVESTMENTS (Cost: $11,119)				11,119

TOTAL INVESTMENTS IN SECURITIES — 99.73% (Cost: $138,203,411)				121,321,313
Other Assets, Less Liabilities — 0.27%				323,995

NET ASSETS — 100.00%			$	121,645,308

^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			35

Schedule of Investments

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.81%

AIRLINES — 0.63%
Controladora Vuela Cia de Aviacion SAB de CV^a,b		9,037,600	$	8,010,844
Grupo Aeromexico SAB de CV^a,b		7,755,536		12,532,941

				20,543,785
BEVERAGES — 10.11%
Arca Continental SAB de CV		5,938,829		43,657,240
Coca-Cola FEMSA SAB de CV Series L		3,898,258		42,499,077
Fomento Economico Mexicano SAB de CV BD Units		24,421,710		237,072,972
Organizacion Cultiba SAB de CV^b		4,568,500		7,854,375

				331,083,664
BUILDING PRODUCTS — 0.00%
Corporacion Geo SAB de CV Series B^a,b,c		15,588,128		12
Urbi Desarrollos Urbanos SAB de CV^a,b,c		29,674,089		23

				35
CAPITAL MARKETS — 0.31%
Grupo Financiero Interacciones SA de CV Series O		1,220,000		10,033,008

				10,033,008
CHEMICALS — 1.83%
Mexichem SAB de CV		13,910,574		59,991,378

				59,991,378
COMMERCIAL BANKS — 12.76%
Banregio Grupo Financiero SAB de CV^b		3,235,900		18,268,834
Grupo Financiero Banorte SAB de CV Series O		31,117,478		219,063,428
Grupo Financiero Inbursa SAB de CV Series O		33,247,292		101,022,134
Grupo Financiero Santander Mexico SAB de CV Series B^b		26,533,650		79,466,004

				417,820,400
CONSTRUCTION & ENGINEERING — 2.22%
Empresas ICA SAB de CV^a,b		10,254,588		19,010,456
Promotora y Operadora Infraestructura SAB de CV^a		3,837,800		53,800,523

				72,810,979


Security	Shares		Value

CONSTRUCTION MATERIALS — 6.09%
Cemex SAB de CV CPO^a		150,050,600	$	199,333,022

				199,333,022
CONSUMER FINANCE — 1.32%
Compartamos SAB de CV^b		16,617,206		35,482,574
Credito Real SAB de CV^b		2,957,900		7,890,448

				43,373,022
CONTAINERS & PACKAGING — 0.20%
Bio Pappel SAB de CV^a,b		3,313,281		6,398,252

				6,398,252
DIVERSIFIED FINANCIAL SERVICES — 0.48%
Bolsa Mexicana de Valores SAB de CV		7,421,787		15,881,733

				15,881,733
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.22%
Axtel SAB de CV CPO^a,b		22,902,877		7,163,991

				7,163,991
FOOD & STAPLES RETAILING — 6.13%
Controladora Comercial Mexicana SAB de CV BC Units		7,214,655		27,787,085
Grupo Comercial Chedraui SAB de CV^b		5,913,700		20,546,778
Wal-Mart de Mexico SAB de CV Series V		55,999,233		152,466,268

				200,800,131
FOOD PRODUCTS — 4.68%
Gruma SAB de CV Series B^a		2,650,800		30,241,278
Grupo Bimbo SAB de CV Series A		23,825,704		75,000,266
Grupo Herdez SAB de CV^b		4,106,044		11,499,624
Grupo Lala SAB de CV		9,608,700		24,941,247
Industrias Bachoco SAB de CV Series B		2,408,400		11,517,514

				153,199,929
HOTELS, RESTAURANTS & LEISURE — 1.06%
Alsea SAB de CV^a,b		8,022,466		27,677,216
Hoteles City Express SAB de CV^a,b		3,536,800		6,883,986

				34,561,202
HOUSEHOLD DURABLES — 0.28%
Consorcio ARA SAB de CV^a,b		20,286,943		9,262,594

				9,262,594


36		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2014


Security	Shares		Value

HOUSEHOLD PRODUCTS — 1.84%
Kimberly-Clark de Mexico SAB de CV Series A		22,632,554	$	60,391,557

				60,391,557
INDUSTRIAL CONGLOMERATES — 5.51%
Alfa SAB de CV Series A		39,882,051		128,319,214
Grupo Carso SAB de CV Series A1		8,545,733		52,220,112

				180,539,326
INSURANCE — 0.29%
Qualitas Controladora SAB de CV		3,472,000		9,498,179

				9,498,179
MEDIA — 7.71%
Grupo Televisa SAB de CV CPO		32,360,697		240,784,078
TV Azteca SAB de CV CPO^b		22,113,439		11,872,306

				252,656,384
METALS & MINING — 7.66%
Grupo Mexico SAB de CV Series B		41,323,886		150,119,275
Grupo Simec SAB de CV Series B^a,b		2,332,454		10,442,572
Industrias CH SAB de CV Series B^a,b		2,893,683		15,989,339
Industrias Penoles SAB de CV		2,065,428		52,411,687
Minera Frisco SAB de CV Series A1^a		10,839,303		21,793,834

				250,756,707
MULTILINE RETAIL — 1.25%
El Puerto de Liverpool SAB de CV Series C1		2,959,595		33,748,279
Grupo Famsa SAB de CV Series A^a,b		6,372,340		7,222,521

				40,970,800
PHARMACEUTICALS — 1.01%
Genomma Lab Internacional SAB de CV Series B^a,b		12,367,193		32,990,531

				32,990,531
REAL ESTATE INVESTMENT TRUSTS (REITS) — 5.33%
Concentradora Fibra Hotelera Mexicana SAB de CV^b		8,333,500		14,537,657


Security	Shares		Value

Fibra Shop Portafolios Inmobiliarios SAPI de CV		5,986,900	$	8,351,578
Fibra Uno Administracion SAB de CV		32,625,600		117,148,248
Macquarie Mexico Real Estate Management SA de CV		9,666,200		19,376,016
TF Administradora Industrial S de RL SAB de CV		6,614,000		15,144,596

				174,558,095
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.45%
Corporacion Inmobiliaria Vesta SAB de CV		6,856,249		14,907,511

				14,907,511
TRANSPORTATION INFRASTRUCTURE — 3.78%
Grupo Aeroportuario del Centro Norte SAB de CV^b		4,037,392		17,263,630
Grupo Aeroportuario del Pacifico SAB de CV Series B		4,870,049		33,807,835
Grupo Aeroportuario del Sureste SAB de CV Series B		3,186,065		40,840,989
OHL Mexico SAB de CV^a,b		10,899,100		32,008,370

				123,920,824
WIRELESS TELECOMMUNICATION SERVICES — 16.66%
America Movil SAB de CV Series L		446,141,118		545,584,985

				545,584,985

TOTAL COMMON STOCKS (Cost: $3,219,226,307)				3,269,032,024

SHORT-TERM INVESTMENTS — 4.25%

MONEY MARKET FUNDS — 4.25%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^d,e,f		129,695,661		129,695,661
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		8,164,698		8,164,698
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^d,e		1,249,544		1,249,544

				139,109,903

TOTAL SHORT-TERM INVESTMENTS (Cost: $139,109,903)				139,109,903


SCHEDULES OF INVESTMENTS			37

Schedule of Investments (Continued)

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2014


	Value

TOTAL INVESTMENTS IN SECURITIES — 104.06% (Cost: $3,358,336,210)	$	3,408,141,927
Other Assets, Less Liabilities — (4.06)%		(132,989,835	)

NET ASSETS — 100.00%	$	3,275,152,092

CPO — Certificates of Participation (Ordinary)

^a	Non-income earning security.

^b	All or a portion of this security represents a security on loan. See Note 1.

^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 1.

See notes to financial statements.


38		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SOUTH AFRICA ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.65%

CAPITAL MARKETS — 2.11%
Brait SE^a		611,999	$	4,558,027
Coronation Fund Managers Ltd.		414,274		3,895,237
Investec Ltd.		438,188		3,963,526

				12,416,790
COMMERCIAL BANKS — 7.91%
Barclays Africa Group Ltd.		617,852		9,677,284
Nedbank Group Ltd.		374,590		8,055,055
Standard Bank Group Ltd.		2,214,434		28,733,465

				46,465,804
CONSTRUCTION MATERIALS — 0.53%
PPC Ltd.		992,719		3,090,521

				3,090,521
CONTAINERS & PACKAGING — 0.74%
Nampak Ltd.		1,085,105		4,351,480

				4,351,480
DISTRIBUTORS — 1.03%
Imperial Holdings Ltd.		339,419		6,070,058

				6,070,058
DIVERSIFIED FINANCIAL SERVICES — 8.48%
African Bank Investments Ltd.^b,c		2,626,522		2,470
FirstRand Ltd.		5,649,880		22,975,846
Remgro Ltd.		876,591		20,069,758
RMB Holdings Ltd.		1,286,084		6,769,372

				49,817,446
FOOD & STAPLES RETAILING — 3.40%
Massmart Holdings Ltd.		197,795		2,432,034
Pick n Pay Stores Ltd.		437,650		2,324,992
Shoprite Holdings Ltd.		831,691		11,530,628
SPAR Group Ltd. (The)		299,842		3,675,499

				19,963,153
FOOD PRODUCTS — 1.46%
Tiger Brands Ltd.		297,181		8,578,386

				8,578,386
HEALTH CARE PROVIDERS & SERVICES — 3.13%
Life Healthcare Group Holdings Ltd.		1,709,045		7,195,877
Mediclinic International Ltd.		678,034		5,895,837
Netcare Ltd.		1,748,485		5,310,197

				18,401,911
HOUSEHOLD DURABLES — 3.23%
Steinhoff International Holdings Ltd.		3,836,621		18,942,491

				18,942,491


Security	Shares		Value

INDUSTRIAL CONGLOMERATES — 2.58%
Bidvest Group Ltd.		573,349	$	15,165,818

				15,165,818
INSURANCE — 6.39%
Discovery Ltd.		593,126		5,473,731
Liberty Holdings Ltd.		208,588		2,561,015
MMI Holdings Ltd.		1,859,151		4,805,466
Rand Merchant Insurance Holdings Ltd.		1,218,137		3,859,866
Sanlam Ltd.		3,355,274		20,821,792

				37,521,870
MEDIA — 15.65%
Naspers Ltd. Class N		721,474		91,954,457

				91,954,457
METALS & MINING — 7.78%
African Rainbow Minerals Ltd.		197,407		3,371,663
Anglo American Platinum Ltd.^a,b		98,274		4,094,365
AngloGold Ashanti Ltd.^a		734,826		12,509,191
Assore Ltd.		63,592		1,881,918
Gold Fields Ltd.		1,411,726		6,691,343
Harmony Gold Mining Co. Ltd.^a		714,669		2,165,765
Impala Platinum Holdings Ltd.		979,127		8,861,065
Kumba Iron Ore Ltd.		117,370		3,514,898
Northam Platinum Ltd.^a		651,973		2,617,602

				45,707,810
MULTILINE RETAIL — 1.77%
Woolworths Holdings Ltd.		1,388,923		10,377,026

				10,377,026
OIL, GAS & CONSUMABLE FUELS — 10.60%
Exxaro Resources Ltd.^b		260,999		3,702,684
Sasol Ltd.		1,007,161		58,550,455

				62,253,139
PAPER & FOREST PRODUCTS — 0.69%
Sappi Ltd.^a		986,532		4,081,408

				4,081,408
PHARMACEUTICALS — 2.85%
Aspen Pharmacare Holdings Ltd.		582,012		16,726,401

				16,726,401
REAL ESTATE INVESTMENT TRUSTS (REITS) — 2.51%
Growthpoint Properties Ltd.		3,955,017		9,371,197
Redefine Properties Ltd.		5,967,051		5,363,692

				14,734,889


SCHEDULES OF INVESTMENTS			39

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH AFRICA ETF

August 31, 2014


Security	Shares		Value

SPECIALTY RETAIL — 2.92%
Foschini Group Ltd. (The)		364,050	$	3,940,560
Mr. Price Group Ltd.		434,782		8,368,268
Truworths International Ltd.		690,645		4,831,411

				17,140,239
TRADING COMPANIES & DISTRIBUTORS — 0.65%
Barloworld Ltd.		400,029		3,812,451

				3,812,451
WIRELESS TELECOMMUNICATION SERVICES — 13.24%
MTN Group Ltd.		3,070,110		69,580,769
Vodacom Group Ltd.		677,775		8,179,516

				77,760,285

TOTAL COMMON STOCKS
(Cost: $612,611,093)				585,333,833

SHORT-TERM INVESTMENTS — 0.63%

MONEY MARKET FUNDS — 0.63%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^d,e,f		3,349,104		3,349,104
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		210,835		210,835
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^d,e		159,767		159,767

				3,719,706

TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,719,706)				3,719,706

TOTAL INVESTMENTS IN SECURITIES — 100.28%
(Cost: $616,330,799)				589,053,539
Other Assets, Less Liabilities — (0.28)%				(1,657,901	)

NET ASSETS — 100.00%			$	587,395,638

^a	Non-income earning security.

^b	All or a portion of this security represents a security on loan. See Note 1.

^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 1.

See notes to financial statements.


40		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI TURKEY ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.92%

AIRLINES — 2.17%
Turk Hava Yollari AO^a		3,526,470	$	11,194,105

				11,194,105
AUTO COMPONENTS — 0.16%
Goodyear Lastikleri Turk AS		22,755		840,415

				840,415
AUTOMOBILES — 2.10%
Ford Otomotiv Sanayi AS^a,b		448,625		5,924,981
Tofas Turk Otomobil Fabrikasi AS		799,015		4,924,535

				10,849,516
BEVERAGES — 5.66%
Anadolu Efes Biracilik ve Malt Sanayii AS^a		1,325,340		17,626,571
Coca-Cola Icecek AS		487,845		11,529,505

				29,156,076
BUILDING PRODUCTS — 0.39%
Trakya Cam Sanayii AS^b		1,652,524		2,029,329

				2,029,329
CHEMICALS — 0.21%
Gubre Fabrikalari TAS^b		533,170		1,074,766

				1,074,766
COMMERCIAL BANKS — 36.88%
Akbank TAS		11,503,670		43,926,060
Albaraka Turk Katilim Bankasi AS^b		1,735,300		1,391,167
Asya Katilim Bankasi AS^a,b		2,949,986		1,695,119
Sekerbank TAS^a,b		2,519,145		2,299,736
Tekstil Bankasi AS^a,b		669,885		620,853
Turkiye Garanti Bankasi AS		14,762,445		57,942,913
Turkiye Halk Bankasi AS		3,994,150		29,336,767
Turkiye Is Bankasi AS Class C^b		10,063,445		26,021,930
Turkiye Sinai Kalkinma Bankasi AS^b		3,833,571		3,375,326
Turkiye Vakiflar Bankasi TAO Class D^b		4,791,870		11,058,418
Yapi ve Kredi Bankasi AS^b		5,554,626		12,381,080

				190,049,369
COMMUNICATIONS EQUIPMENT — 0.09%
Nortel Networks Netas Telekomunikasyon AS^a,b		164,465		480,907

				480,907
CONSTRUCTION & ENGINEERING — 0.35%
Tekfen Holding AS^a,b		708,550		1,782,908

				1,782,908


Security	Shares		Value

CONSTRUCTION MATERIALS — 1.52%
Adana Cimento Sanayii TAS Class A^a,b		367,225	$	842,357
Akcansa Cimento Sanayi ve TAS^b		306,545		1,910,624
Baticim Bati Anodolu Cimento Sanayii AS		334,295		1,093,687
Cimsa Cimento Sanayi ve TAS		345,765		2,459,507
Konya Cimento Sanayii AS		6,256		765,348
Mardin Cimento Sanayii ve TAS^a,b		313,945		744,873

				7,816,396
CONTAINERS & PACKAGING — 0.22%
Anadolu Cam Sanayii AS^b		707,995		574,152
Kartonsan Karton Sanayi ve TAS^b		5,365		585,490

				1,159,642
DISTRIBUTORS — 0.28%
Dogus Otomotiv Servis ve TAS		351,130		1,425,380

				1,425,380
DIVERSIFIED FINANCIAL SERVICES — 5.28%
Haci Omer Sabanci Holding AS		5,868,940		27,196,830

				27,196,830
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.89%
Turk Telekomunikasyon AS		3,353,865		9,729,231

				9,729,231
FOOD & STAPLES RETAILING — 6.44%
BIM Birlesik Magazalar AS		1,358,270		31,974,845
Bizim Toptan Satis Magazalari AS^b		140,230		1,208,683

				33,183,528
FOOD PRODUCTS — 1.65%
Pinar Sut Mamulleri Sanayii AS		115,625		1,186,818
Ulker Biskuvi Sanayi AS		983,645		7,293,181

				8,479,999
GAS UTILITIES — 0.00%
Aygaz AS		1		4

				4
HEALTH CARE PROVIDERS & SERVICES — 0.16%
Selcuk Ecza Deposu Ticaret ve Sanayi AS		797,165		842,251

				842,251
HOTELS, RESTAURANTS & LEISURE — 0.14%
Net Holding AS^a,b		583,490		719,240
				719,240
HOUSEHOLD DURABLES — 1.96%
Arcelik AS^b		1,511,450		9,070,311
Vestel Elektronik Sanayi ve TAS^a,b		535,020		1,033,868

				10,104,179


SCHEDULES OF INVESTMENTS			41

Schedule of Investments (Continued)

iSHARES^® MSCI TURKEY ETF

August 31, 2014


Security	Shares		Value

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.49%
Akenerji Elektrik Uretim AS^a,b		1,395,455	$	743,656
Aksa Enerji Uretim AS^a		980,315		1,222,015
Zorlu Enerji Elektrik Uretim AS^a,b		955,525		580,059

				2,545,730
INDUSTRIAL CONGLOMERATES — 7.91%
Akfen Holding AS^b		560,365		1,308,761
Alarko Holding AS		427,350		871,355
Dogan Sirketler Grubu Holding AS^a,b		5,483,216		1,981,931
Enka Insaat ve Sanayi AS		2,990,526		7,497,276
KOC Holding AS^b		4,052,055		20,748,957
Kombassan Holdings AS^a,b		1,041,365		1,380,154
Turkiye Sise ve Cam Fabrikalari AS		3,803,232		5,146,290
Yazicilar Holding AS^b		204,610		1,848,928

				40,783,652
INSURANCE — 0.54%
Aksigorta AS		587,930		762,855
Anadolu Anonim Turk Sigorta Sirketi^a		1,276,316		857,600
Anadolu Hayat Emeklilik AS^b		486,670		1,150,174

				2,770,629
MACHINERY — 0.28%
Otokar Otomotiv ve Savunma Sanayi AS^b		53,650		1,441,970

				1,441,970
MEDIA — 0.46%
Besiktas Futbol Yatirimlar Sanayi ve Ticaret AS^a,b		688,940		734,291
Dogan Yayin Holding AS^a,b		3,096,160		545,212
Fenerbahce Sportif Hizmetler Sanayi ve Ticaret AS^a,b		39,960		656,448
Galatasaray Sportif Sinai ve Ticari Yatirimlar AS^a,b		41,255		433,971

				2,369,922
METALS & MINING — 5.89%
Borusan Mannesmann Boru Sanayi ve TAS^b		271,765		831,182
Eregli Demir ve Celik Fabrikalari TAS		8,946,600		17,412,693
Izmir Demir Celik Sanayi AS^a,b		599,400		919,398


Security	Shares		Value

Kardemir Karabuk Demir Celik Sanayi ve TAS Class A^a,b		852,665	$	1,185,382
Kardemir Karabuk Demir Celik Sanayi ve TAS Class B^a,b		352,240		483,158
Kardemir Karabuk Demir Celik Sanayi ve TAS Class D^a,b		4,383,945		4,611,578
Koza Altin Isletmeleri AS		292,300		3,149,274
Koza Anadolu Metal Madencilik Isletmeleri AS^a,b		1,116,475		1,169,273
Park Elektrik Uretim Madencilik Sanayi ve TAS^b		332,630		584,197

				30,346,135
MULTILINE RETAIL — 0.11%
Boyner Buyuk Magazacilik AS^a,b		237,233		581,553

				581,553
OIL, GAS & CONSUMABLE FUELS — 3.88%
Ipek Dogal Enerji Kaynaklari ve Uretim AS^a,b		664,150		686,325
Turcas Petrolculuk AS^b		429,939		484,141
Turkiye Petrol Rafinerileri AS		800,310		18,839,986

				20,010,452
PHARMACEUTICALS — 0.20%
EIS Eczacibasi Ilac Sanayi ve TAS^b		1,049,690		1,011,773

				1,011,773
REAL ESTATE INVESTMENT TRUSTS (REITS) — 4.22%
Akmerkez Gayrimenkul Yatirim Ortakligi AS^b		132,090		997,737
Dogus Gayrimenkul Yatirim Ortakligi AS^a,b		363,525		741,217
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		12,140,070		15,302,018
Halk Gayrimenkul Yatrm Ortakligi AS^b		1,108,705		621,670
Is Gayrimenkul Yatirim Ortakligi AS^b		1,955,635		1,241,558
Sinpas Gayrimenkul Yatirim Ortakligi AS^a		1,527,175		601,543
Torunlar Gayrimenkul Yatirim Ortakligi AS		800,125		1,301,438
Vakif Gayrimenkul Yatirim Ortakligi AS^b		678,580		965,380

				21,772,561


42		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI TURKEY ETF

August 31, 2014


Security	Shares		Value

TEXTILES, APPAREL & LUXURY GOODS — 0.30%
Aksa Akrilik Kimya Sanayii AS		473,785	$	1,561,024

				1,561,024
TRANSPORTATION INFRASTRUCTURE — 1.69%
TAV Havalimanlari Holding AS		1,045,065		8,692,934

				8,692,934
WIRELESS TELECOMMUNICATION SERVICES — 6.40%
Turkcell Iletisim Hizmetleri AS^a,b		5,623,445		32,964,888

				32,964,888

TOTAL COMMON STOCKS
(Cost: $598,408,037)				514,967,294

SHORT-TERM INVESTMENTS — 10.65%

MONEY MARKET FUNDS — 10.65%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		51,530,834		51,530,834
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		3,244,007		3,244,007
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		110,246		110,246

				54,885,087

TOTAL SHORT-TERM INVESTMENTS
(Cost: $54,885,087)				54,885,087

TOTAL INVESTMENTS IN SECURITIES — 110.57%
(Cost: $653,293,124)				569,852,381
Other Assets, Less Liabilities — (10.57)%				(54,485,545	)

NET ASSETS — 100.00%			$	515,366,836

^a	Non-income earning security.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			43

Schedule of Investments

iSHARES^® MSCI USA ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.72%

AEROSPACE & DEFENSE — 2.53%
B/E Aerospace Inc.^a		274	$	23,219
Boeing Co. (The)		1,743		221,012
General Dynamics Corp.		735		90,589
Honeywell International Inc.		1,866		177,699
L-3 Communications Holdings Inc.		213		23,419
Lockheed Martin Corp.		690		120,060
Northrop Grumman Corp.		514		65,391
Precision Castparts Corp.		368		89,814
Raytheon Co.		790		76,109
Rockwell Collins Inc.		305		23,479
Textron Inc.		727		27,626
TransDigm Group Inc.		124		23,311
United Technologies Corp.		2,198		237,340

				1,199,068
AIR FREIGHT & LOGISTICS — 0.68%
C.H. Robinson Worldwide Inc.		373		25,461
Expeditors International of Washington Inc.		511		21,104
FedEx Corp.		706		104,403
United Parcel Service Inc. Class B		1,784		173,637

				324,605
AIRLINES — 0.14%
American Airlines Group Inc.		455		17,704
Delta Air Lines Inc.		538		21,294
Southwest Airlines Co.		442		14,148
United Continental Holdings Inc.^a		250		11,903

				65,049
AUTO COMPONENTS — 0.47%
Autoliv Inc.		244		25,300
BorgWarner Inc.		574		35,697
Delphi Automotive PLC		775		53,925
Johnson Controls Inc.		1,668		81,415
TRW Automotive Holdings Corp.^a		295		28,406

				224,743
AUTOMOBILES — 0.78%
Ford Motor Co.		9,342		162,644
General Motors Co.		3,204		111,499
Harley-Davidson Inc.		555		35,276
Tesla Motors Inc.^a		219		59,065

				368,484


Security	Shares		Value

BEVERAGES — 2.01%
Brown-Forman Corp. Class B NVS		323	$	29,929
Coca-Cola Co. (The)		9,934		414,447
Coca-Cola Enterprises Inc.		607		29,002
Constellation Brands Inc. Class A^a		417		36,317
Dr Pepper Snapple Group Inc.		498		31,334
Molson Coors Brewing Co. Class B NVS		382		28,249
Monster Beverage Corp.^a		366		32,358
PepsiCo Inc.		3,818		353,127

				954,763
BIOTECHNOLOGY — 2.82%
Alexion Pharmaceuticals Inc.^a		503		85,153
Amgen Inc.		1,907		265,798
Biogen Idec Inc.^a		598		205,138
BioMarin Pharmaceutical Inc.^a		359		25,568
Celgene Corp.^a		2,015		191,465
Gilead Sciences Inc.^a		3,873		416,657
Pharmacyclics Inc.^a		163		20,276
Regeneron Pharmaceuticals Inc.^a		202		70,805
Vertex Pharmaceuticals Inc.^a		606		56,703

				1,337,563
BUILDING PRODUCTS — 0.05%
Masco Corp.		931		21,851

				21,851
CAPITAL MARKETS — 2.26%
Affiliated Managers Group Inc.^a		134		28,294
Ameriprise Financial Inc.		477		59,987
Bank of New York Mellon Corp. (The)		2,848		111,585
BlackRock Inc.^b		338		111,719
Charles Schwab Corp. (The)		2,941		83,848
Eaton Vance Corp. NVS		312		12,218
Franklin Resources Inc.		1,025		57,933
Goldman Sachs Group Inc. (The)		1,078		193,081
Invesco Ltd.		1,085		44,311
Legg Mason Inc.		279		13,760
Morgan Stanley		3,732		128,045
Northern Trust Corp.		563		39,044
Raymond James Financial Inc.		316		17,266
SEI Investments Co.		378		14,324
State Street Corp.		1,091		78,585
T. Rowe Price Group Inc.		659		53,376
TD Ameritrade Holding Corp.		696		23,045

				1,070,421


44		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA ETF

August 31, 2014


Security	Shares		Value

CHEMICALS — 2.59%
Air Products and Chemicals Inc.		535	$	71,267
Airgas Inc.		161		17,771
Albemarle Corp.		201		12,780
Ashland Inc.		184		19,728
Celanese Corp. Series A		394		24,641
CF Industries Holdings Inc.		131		33,755
Dow Chemical Co. (The)		3,050		163,327
E.I. du Pont de Nemours and Co.		2,323		153,574
Eastman Chemical Co.		381		31,421
Ecolab Inc.		680		78,078
FMC Corp.		337		22,289
International Flavors & Fragrances Inc.		208		21,131
LyondellBasell Industries NV Class A		1,128		128,987
Monsanto Co.		1,313		151,848
Mosaic Co. (The)		812		38,781
PPG Industries Inc.		346		71,228
Praxair Inc.		733		96,426
Sherwin-Williams Co. (The)		211		46,021
Sigma-Aldrich Corp.		298		30,992
Westlake Chemical Corp.		123		11,947

				1,225,992
COMMERCIAL BANKS — 5.63%
Bank of America Corp.		26,460		425,741
BB&T Corp.		1,788		66,746
CIT Group Inc.		486		23,309
Citigroup Inc.		7,647		394,968
Comerica Inc.		447		22,502
Fifth Third Bancorp		2,146		43,789
First Republic Bank		315		15,403
J.P. Morgan Chase & Co.		9,538		567,034
KeyCorp		2,213		30,119
M&T Bank Corp.^c		298		36,842
PNC Financial Services Group Inc. (The)^b		1,343		113,819
Regions Financial Corp.		3,541		35,941
SunTrust Banks Inc.		1,346		51,256
U.S. Bancorp		4,561		192,839
Wells Fargo & Co.		12,597		647,990

				2,668,298
COMMERCIAL SERVICES & SUPPLIES — 0.44%
ADT Corp. (The)		471		17,361
Cintas Corp.		269		17,792
Iron Mountain Inc.		415		14,932
Republic Services Inc.		750		29,497


Security	Shares		Value

Stericycle Inc.^a		213	$	25,315
Tyco International Ltd.		1,151		51,358
Waste Management Inc.		1,114		52,324

				208,579
COMMUNICATIONS EQUIPMENT — 1.57%
Cisco Systems Inc.		12,907		322,546
F5 Networks Inc.^a		183		22,727
Harris Corp.		271		19,346
Juniper Networks Inc.		1,073		24,883
Motorola Solutions Inc.		575		34,155
QUALCOMM Inc.		4,238		322,512

				746,169
COMPUTERS & PERIPHERALS — 4.41%
Apple Inc.		15,190		1,556,975
EMC Corp.		5,157		152,286
Hewlett-Packard Co.		4,765		181,070
NetApp Inc.		831		35,035
SanDisk Corp.		564		55,249
Seagate Technology PLC		844		52,818
Western Digital Corp.		558		57,480

				2,090,913
CONSTRUCTION & ENGINEERING — 0.19%
Chicago Bridge & Iron Co. NV		249		15,792
Fluor Corp.		410		30,295
Jacobs Engineering Group Inc.^a		332		17,898
KBR Inc.		355		7,817
Quanta Services Inc.^a		538		19,551

				91,353
CONSTRUCTION MATERIALS — 0.08%
Martin Marietta Materials Inc.		147		19,251
Vulcan Materials Co.		327		20,725

				39,976
CONSUMER FINANCE — 0.94%
Ally Financial Inc.^a		779		19,164
American Express Co.		2,395		214,472
Capital One Financial Corp.		1,438		118,002
Discover Financial Services		1,181		73,659
Navient Corp.		1,114		19,985

				445,282
CONTAINERS & PACKAGING — 0.26%
Avery Dennison Corp.		241		11,599
Ball Corp.		349		22,371
Crown Holdings Inc.^a		367		17,715
MeadWestvaco Corp.		450		19,350


SCHEDULES OF INVESTMENTS			45

Schedule of Investments (Continued)

iSHARES^® MSCI USA ETF

August 31, 2014


Security	Shares		Value

Owens-Illinois Inc.^a		434	$	13,363
Rock-Tenn Co. Class A		366		17,993
Sealed Air Corp.		514		18,555

				120,946
DISTRIBUTORS — 0.12%
Genuine Parts Co.		388		34,043
LKQ Corp.^a		752		21,357

				55,400
DIVERSIFIED CONSUMER SERVICES — 0.05%
H&R Block Inc.		697		23,370

				23,370
DIVERSIFIED FINANCIAL SERVICES — 1.37%
Berkshire Hathaway Inc. Class B^a		2,826		387,868
CME Group Inc.		805		61,623
Intercontinental Exchange Inc.		291		54,999
Leucadia National Corp.		793		19,769
McGraw Hill Financial Inc.		681		55,250
Moody’s Corp.		483		45,194
NASDAQ OMX Group Inc. (The)		294		12,780
Voya Financial Inc.		352		13,760

				651,243
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.30%
AT&T Inc.		13,077		457,172
CenturyLink Inc.		1,454		59,599
Frontier Communications Corp.		2,582		17,558
Level 3 Communications Inc.^a		446		20,052
Verizon Communications Inc.		10,438		520,021
Windstream Holdings Inc.		1,526		17,244

				1,091,646
ELECTRIC UTILITIES — 1.43%
American Electric Power Co. Inc.		1,223		65,675
Duke Energy Corp.		1,773		131,184
Edison International		793		46,898
Entergy Corp.		456		35,299
Exelon Corp.		98		3,275
FirstEnergy Corp.		49		1,678
NextEra Energy Inc.		1,091		107,409
Northeast Utilities		802		36,804
OGE Energy Corp.		521		19,548
Pepco Holdings Inc.		632		17,418
Pinnacle West Capital Corp.		298		16,971
PPL Corp.		1,587		54,958
Southern Co. (The)		2,236		99,278


Security	Shares		Value

Xcel Energy Inc.		1,252	$	40,127

				676,522
ELECTRICAL EQUIPMENT — 0.61%
AMETEK Inc.		621		32,876
Eaton Corp. PLC		1,201		83,842
Emerson Electric Co.		1,773		113,507
Rockwell Automation Inc.		345		40,230
Sensata Technologies Holding NV^a,c		406		19,963

				290,418
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.54%
Amphenol Corp. Class A		411		42,337
Arrow Electronics Inc.^a		257		15,998
Avnet Inc.		343		15,267
Corning Inc.		3,292		68,671
Flextronics International Ltd.^a		1,481		16,350
FLIR Systems Inc.		366		12,367
TE Connectivity Ltd.		1,030		64,561
Trimble Navigation Ltd.^a		667		22,185

				257,736
ENERGY EQUIPMENT & SERVICES — 2.00%
Baker Hughes Inc.		1,098		75,916
Cameron International Corp.^a		514		38,206
Core Laboratories NV		115		18,169
Diamond Offshore Drilling Inc.^c		166		7,294
Ensco PLC Class A		586		29,581
FMC Technologies Inc.^a		593		36,671
Halliburton Co.		2,133		144,212
Helmerich & Payne Inc.		278		29,204
Nabors Industries Ltd.		674		18,340
National Oilwell Varco Inc.		1,080		93,344
Nobel Corp. PLC		645		18,357
Oceaneering International Inc.		278		19,338
Schlumberger Ltd.		3,269		358,413
Superior Energy Services Inc.		410		14,694
Weatherford International Ltd.^a		1,926		45,627

				947,366
FOOD & STAPLES RETAILING — 2.09%
Costco Wholesale Corp.		1,109		134,278
CVS Caremark Corp.		2,958		235,013
Kroger Co. (The)		1,235		62,960
Safeway Inc.		585		20,346
Sysco Corp.		1,468		55,535
Wal-Mart Stores Inc.		4,055		306,153


46		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA ETF

August 31, 2014


Security	Shares		Value

Walgreen Co.		2,295	$	138,893
Whole Foods Market Inc.		941		36,831

				990,009
FOOD PRODUCTS — 1.61%
Archer-Daniels-Midland Co.		1,658		82,668
Bunge Ltd.		362		30,643
Campbell Soup Co.		516		23,127
ConAgra Foods Inc.		1,058		34,068
General Mills Inc.		1,576		84,127
Hershey Co. (The)		389		35,562
Hormel Foods Corp.		359		18,194
J.M. Smucker Co. (The)		259		26,573
Kellogg Co.		676		43,920
Keurig Green Mountain Inc.		315		41,996
Kraft Foods Group Inc.		1,501		88,409
McCormick & Co. Inc. NVS		294		20,489
Mead Johnson Nutrition Co. Class A		508		48,565
Mondelez International Inc. Class A		4,261		154,205
Tyson Foods Inc. Class A		765		29,116

				761,662
HEALTH CARE EQUIPMENT & SUPPLIES — 2.07%
Abbott Laboratories		3,779		159,625
Baxter International Inc.		1,367		102,498
Becton, Dickinson and Co.		486		56,945
Boston Scientific Corp.^a		3,335		42,288
C.R. Bard Inc.		201		29,836
CareFusion Corp.^a		537		24,654
Covidien PLC		1,129		98,031
DENTSPLY International Inc.		366		17,460
Edwards Lifesciences Corp.^a		271		26,899
Hologic Inc.^a		553		13,753
Intuitive Surgical Inc.^a		101		47,471
Medtronic Inc.		2,509		160,200
ResMed Inc.^c		359		19,045
St. Jude Medical Inc.		712		46,700
Stryker Corp.		853		71,063
Varian Medical Systems Inc.^a,c		273		23,210
Zimmer Holdings Inc.		432		42,902

				982,580
HEALTH CARE PROVIDERS & SERVICES — 2.24%
Aetna Inc.		910		74,738
AmerisourceBergen Corp.		579		44,809
Cardinal Health Inc.		856		63,087
Cigna Corp.		691		65,369


Security	Shares		Value

DaVita HealthCare Partners Inc.^a		425	$	31,739
Express Scripts Holding Co.^a		1,946		143,868
HCA Holdings Inc.^a		779		54,390
Henry Schein Inc.^a		208		24,895
Humana Inc.		397		51,110
Laboratory Corp. of America Holdings^a		207		22,197
McKesson Corp.		584		113,897
Omnicare Inc.		256		16,325
Patterson Companies Inc.		226		9,101
Quest Diagnostics Inc.		360		22,756
UnitedHealth Group Inc.		2,474		214,446
Universal Health Services Inc. Class B		228		26,092
WellPoint Inc.		714		83,188

				1,062,007
HEALTH CARE TECHNOLOGY — 0.10%
Cerner Corp.^a		785		45,263

				45,263
HOTELS, RESTAURANTS & LEISURE — 1.80%
Carnival Corp.		991		37,539
Chipotle Mexican Grill Inc.^a		78		52,935
Darden Restaurants Inc.		342		16,184
Hilton Worldwide Holdings Inc.^a		738		18,686
Las Vegas Sands Corp.		1,020		67,840
Marriott International Inc. Class A		592		41,085
McDonald’s Corp.		2,499		234,206
MGM Resorts International^a		1,011		24,739
Royal Caribbean Cruises Ltd.		417		26,588
Starbucks Corp.		1,897		147,606
Starwood Hotels & Resorts Worldwide Inc.		477		40,326
Wyndham Worldwide Corp.		328		26,548
Wynn Resorts Ltd.		206		39,733
Yum! Brands Inc.		1,107		80,180

				854,195
HOUSEHOLD DURABLES — 0.36%
D.R. Horton Inc.		762		16,520
Garmin Ltd.		293		15,919
Leggett & Platt Inc.		368		12,913
Lennar Corp. Class A		448		17,553
Mohawk Industries Inc.^a		155		22,633
Newell Rubbermaid Inc.		691		23,162
PulteGroup Inc.		885		17,010
Toll Brothers Inc.^a		434		15,446
Whirlpool Corp.		200		30,604

				171,760


SCHEDULES OF INVESTMENTS			47

Schedule of Investments (Continued)

iSHARES^® MSCI USA ETF

August 31, 2014


Security	Shares		Value

HOUSEHOLD PRODUCTS — 1.88%
Church & Dwight Co. Inc.		343	$	23,406
Clorox Co. (The)		320		28,352
Colgate-Palmolive Co.		2,300		148,879
Energizer Holdings Inc.		169		20,537
Kimberly-Clark Corp.		960		103,680
Procter & Gamble Co. (The)		6,810		565,979

				890,833
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.16%
AES Corp. (The)		1,768		26,838
Calpine Corp.^a		916		21,773
NRG Energy Inc.		829		25,517

				74,128
INDUSTRIAL CONGLOMERATES — 2.20%
3M Co.		1,574		226,656
Danaher Corp.		1,579		120,967
General Electric Co.		25,245		655,865
Roper Industries Inc.		250		37,640

				1,041,128
INSURANCE — 2.93%
ACE Ltd.		850		90,381
Aflac Inc.		1,147		70,242
Alleghany Corp.^a		40		17,245
Allstate Corp. (The)		1,125		69,176
American International Group Inc.		3,491		195,706
Aon PLC		711		61,971
Arch Capital Group Ltd.^a		344		19,120
Assurant Inc.		183		12,215
Axis Capital Holdings Ltd.		288		13,887
Chubb Corp. (The)		618		56,825
Cincinnati Financial Corp.		389		18,707
Everest Re Group Ltd.		124		20,316
FNF Group^a		636		18,005
Genworth Financial Inc. Class A^a		1,244		17,653
Hartford Financial Services Group Inc. (The)		1,137		42,126
Lincoln National Corp.		663		36,492
Loews Corp.		890		38,929
Marsh & McLennan Companies Inc.		1,373		72,906
MetLife Inc.		2,403		131,540
PartnerRe Ltd.		122		13,626
Principal Financial Group Inc.		748		40,609
Progressive Corp. (The)		1,416		35,428
Prudential Financial Inc.		1,154		103,514


Security	Shares		Value

RenaissanceRe Holdings Ltd.^c		98	$	10,034
Torchmark Corp.		336		18,329
Travelers Companies Inc. (The)		889		84,197
Unum Group		653		23,684
W.R. Berkley Corp.		271		13,103
Willis Group Holdings PLC		403		16,914
XL Group PLC		712		24,336

				1,387,216
INTERNET & CATALOG RETAIL — 1.38%
Amazon.com Inc.^a		985		333,954
Expedia Inc.		277		23,794
Liberty Interactive Corp. Series A^a		1,173		34,627
Netflix Inc.^a		145		69,258
Priceline Group Inc. (The)^a		133		165,493
TripAdvisor Inc.^a		294		29,133

				656,259
INTERNET SOFTWARE & SERVICES — 3.45%
Akamai Technologies Inc.^a		452		27,310
eBay Inc.^a		2,870		159,285
Equinix Inc.^a		127		27,719
Facebook Inc. Class A^a		5,018		375,447
Google Inc. Class A^a		709		412,893
Google Inc. Class C^a		721		412,124
LinkedIn Corp. Class A^a		266		60,049
Rackspace Hosting Inc.^a		289		9,999
Twitter Inc.^a		814		40,496
VeriSign Inc.^a		315		17,979
Yahoo! Inc.^a		2,413		92,925

				1,636,226
IT SERVICES — 3.24%
Accenture PLC Class A		1,599		129,615
Alliance Data Systems Corp.^a		135		35,726
Automatic Data Processing Inc.		1,212		101,178
Cognizant Technology Solutions Corp. Class A^a		1,525		69,738
Computer Sciences Corp.		360		21,524
Fidelity National Information Services Inc.		727		41,257
Fiserv Inc.^a		641		41,325
FleetCor Technologies Inc.^a		190		27,301
International Business Machines Corp.		2,419		465,174
MasterCard Inc. Class A		2,544		192,861
Paychex Inc.		815		33,945
Teradata Corp.^a,c		401		18,314
Total System Services Inc.		433		13,622


48		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA ETF

August 31, 2014


Security	Shares		Value

Vantiv Inc. Class A^a		369	$	11,542
Visa Inc. Class A		1,261		267,988
Western Union Co.		1,421		24,825
Xerox Corp.		2,825		39,013

				1,534,948
LEISURE EQUIPMENT & PRODUCTS — 0.14%
Hasbro Inc.		295		15,533
Mattel Inc.		866		29,868
Polaris Industries Inc.		159		23,116

				68,517
LIFE SCIENCES TOOLS & SERVICES — 0.59%
Agilent Technologies Inc.		828		47,329
Illumina Inc.^a		328		58,830
Mettler-Toledo International Inc.^a		80		21,638
Quintiles Transnational Holdings Inc.^a		142		7,969
Thermo Fisher Scientific Inc.		1,004		120,691
Waters Corp.^a		216		22,341

				278,798
MACHINERY — 1.56%
AGCO Corp.		226		11,038
Caterpillar Inc.		1,492		162,732
Cummins Inc.		450		65,299
Deere & Co.		885		74,420
Dover Corp.		433		38,048
Flowserve Corp.		340		25,803
Illinois Tool Works Inc.		986		86,975
Ingersoll-Rand PLC		696		41,899
Joy Global Inc.		256		16,166
PACCAR Inc.		887		55,712
Pall Corp.		274		23,117
Parker Hannifin Corp.		375		43,312
Pentair PLC		498		33,899
SPX Corp.		96		9,989
Stanley Black & Decker Inc.		379		34,679
Xylem Inc.		479		17,848

				740,936
MEDIA — 3.80%
Cablevision NY Group Class A		498		9,218
CBS Corp. Class B NVS		1,223		72,512
Charter Communications Inc. Class A^a		196		30,746
Comcast Corp. Class A		5,402		295,651
Comcast Corp. Class A Special NVS^c		1,144		62,462
DIRECTV^a		1,222		105,642
Discovery Communications Inc. Series A^a		397		17,357


Security	Shares		Value

Discovery Communications Inc. Series C NVS^a,c		739	$	31,755
DISH Network Corp. Class A^a		558		36,164
Interpublic Group of Companies Inc. (The)		1,070		20,897
Liberty Global PLC Series A^a		563		24,586
Liberty Global PLC Series C NVS^a		1,352		56,689
Liberty Media Corp. Class A^a		233		11,471
Liberty Media Corp. Class C^a		516		25,011
News Corp. Class A NVS^a		977		17,220
Omnicom Group Inc.		655		47,167
Scripps Networks Interactive Inc. Class A		205		16,341
Sirius XM Holdings Inc.^a		7,664		27,820
Time Warner Cable Inc.		708		104,734
Time Warner Inc.		2,235		172,162
Twenty-First Century Fox Inc. Class A		3,592		127,229
Twenty-First Century Fox Inc. Class B		1,107		38,125
Viacom Inc. Class B NVS		976		79,202
Walt Disney Co. (The)		4,139		372,013

				1,802,174
METALS & MINING — 0.47%
Alcoa Inc.		2,943		48,883
Freeport-McMoRan Inc.		2,606		94,780
Newmont Mining Corp.		1,276		34,567
Nucor Corp.		804		43,674

				221,904
MULTI-UTILITIES — 1.13%
Alliant Energy Corp.		278		16,260
Ameren Corp.		618		24,714
CenterPoint Energy Inc.		1,048		26,032
CMS Energy Corp.		691		21,103
Consolidated Edison Inc.		747		43,244
Dominion Resources Inc.		1,466		102,942
DTE Energy Co.		447		34,978
Integrys Energy Group Inc.		202		13,714
MDU Resources Group Inc.		461		14,434
NiSource Inc.		788		31,260
PG&E Corp.		1,165		54,149
Public Service Enterprise Group Inc.		1,264		47,261
SCANA Corp.		332		17,244
Sempra Energy		579		61,357
Wisconsin Energy Corp.		566		25,657

				534,349


SCHEDULES OF INVESTMENTS			49

Schedule of Investments (Continued)

iSHARES^® MSCI USA ETF

August 31, 2014


Security	Shares		Value

MULTILINE RETAIL — 0.66%
Dollar General Corp.^a		812	$	51,960
Dollar Tree Inc.^a		536		28,743
Family Dollar Stores Inc.		271		21,634
Kohl’s Corp.		536		31,511
Macy’s Inc.		912		56,808
Nordstrom Inc.		367		25,415
Sears Holdings Corp.^a,c		139		4,837
Target Corp.		1,508		90,586

				311,494
OIL, GAS & CONSUMABLE FUELS — 8.42%
Anadarko Petroleum Corp.		1,269		143,004
Antero Resources Corp.^a,c		132		7,636
Apache Corp.		970		98,775
Cabot Oil & Gas Corp.		1,087		36,458
Cheniere Energy Inc.^a		567		45,508
Chesapeake Energy Corp.		1,334		36,285
Chevron Corp.		4,787		619,677
Cimarex Energy Co.		220		31,935
Cobalt International Energy Inc.^a		772		11,850
Concho Resources Inc.^a		285		40,481
ConocoPhillips		3,091		251,051
CONSOL Energy Inc.		587		23,644
Continental Resources Inc.^a		118		19,032
Denbury Resources Inc.		890		15,326
Devon Energy Corp.		976		73,610
Energen Corp.		184		14,808
EOG Resources Inc.		1,373		150,865
EQT Corp.		382		37,841
Exxon Mobil Corp.		10,804		1,074,566
Hess Corp.		711		71,882
HollyFrontier Corp.		486		24,315
Kinder Morgan Inc.		1,686		67,878
Kinder Morgan Management LLC^a		257		25,114
Marathon Oil Corp.		1,746		72,791
Marathon Petroleum Corp.		735		66,892
Murphy Oil Corp.		432		26,987
Noble Energy Inc.		907		65,431
Occidental Petroleum Corp.		1,994		206,838
ONEOK Inc.		532		37,346
Peabody Energy Corp.		680		10,798
Phillips 66		1,424		123,917
Pioneer Natural Resources Co.		366		76,366
QEP Resources Inc.		432		15,366
Range Resources Corp.		406		31,908


Security	Shares		Value

Southwestern Energy Co.^a		881	$	36,280
Spectra Energy Corp.		1,687		70,281
Tesoro Corp.		332		21,494
Valero Energy Corp.		1,337		72,385
Whiting Petroleum Corp.^a		294		27,242
Williams Companies Inc. (The)		1,773		105,387

				3,989,250
PAPER & FOREST PRODUCTS — 0.11%
International Paper Co.		1,042		50,485

				50,485
PERSONAL PRODUCTS — 0.15%
Avon Products Inc.		1,039		14,588
Estee Lauder Companies Inc. (The) Class A		598		45,944
Herbalife Ltd.		207		10,553

				71,085
PHARMACEUTICALS — 5.76%
AbbVie Inc.		4,015		221,949
Actavis PLC^a		662		150,261
Allergan Inc.		752		123,087
Bristol-Myers Squibb Co.		4,175		211,464
Eli Lilly and Co.		2,524		160,425
Endo International PLC^a		360		22,936
Hospira Inc.^a		426		22,893
Johnson & Johnson		7,122		738,765
Mallinckrodt PLC^a		285		23,225
Merck & Co. Inc.		7,360		442,409
Mylan Inc.^a		931		45,247
Perrigo Co. PLC		340		50,572
Pfizer Inc.		16,030		471,122
Zoetis Inc.		1,259		44,619

				2,728,974
PROFESSIONAL SERVICES — 0.36%
Dun & Bradstreet Corp. (The)		102		11,973
Equifax Inc.		305		24,022
IHS Inc. Class A^a		168		23,935
Manpowergroup Inc.		204		15,826
Nielsen NV		757		35,571
Robert Half International Inc.		342		17,172
Towers Watson & Co. Class A		181		19,843
Verisk Analytics Inc. Class A^a		380		24,392

				172,734
REAL ESTATE INVESTMENT TRUSTS (REITS) — 2.63%
American Capital Agency Corp.		848		20,055


50		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA ETF

August 31, 2014


Security	Shares		Value

American Realty Capital Properties Inc.		2,261	$	29,755
American Tower Corp.		995		98,107
Annaly Capital Management Inc.		2,377		28,286
AvalonBay Communities Inc.		327		50,391
Boston Properties Inc.		388		47,111
Camden Property Trust		225		16,839
Crown Castle International Corp.		842		66,947
Digital Realty Trust Inc.		343		22,381
Duke Realty Corp.		839		15,605
Equity Residential		865		57,497
Essex Property Trust Inc.		163		31,532
Federal Realty Investment Trust		162		20,214
General Growth Properties Inc.		1,335		32,801
HCP Inc.		1,153		49,960
Health Care REIT Inc.		771		52,104
Host Hotels & Resorts Inc.		1,922		43,860
Kimco Realty Corp.		1,062		24,946
Liberty Property Trust		389		13,778
Macerich Co. (The)		354		23,113
Plum Creek Timber Co. Inc.		450		18,284
Prologis Inc.		1,258		51,503
Public Storage		364		63,766
Rayonier Inc.		342		11,720
Realty Income Corp.		566		25,312
Regency Centers Corp.		242		13,828
Simon Property Group Inc.		789		134,154
SL Green Realty Corp.		238		26,025
UDR Inc.		633		18,939
Ventas Inc.		722		47,493
Vornado Realty Trust		427		45,206
Weyerhaeuser Co.		1,317		44,712

				1,246,224
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.08%
CBRE Group Inc. Class A^a		762		24,216
Realogy Holdings Corp.^a		361		14,718

				38,934
ROAD & RAIL — 1.02%
CSX Corp.		2,535		78,357
Hertz Global Holdings Inc.^a		1,116		32,978
J.B. Hunt Transport Services Inc.		235		17,754
Kansas City Southern Industries Inc.		271		31,263
Norfolk Southern Corp.		785		83,995
Union Pacific Corp.		2,276		239,594

				483,941


Security	Shares		Value

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.34%
Altera Corp.		816	$	28,837
Analog Devices Inc.		806		41,203
Applied Materials Inc.		3,051		70,493
Avago Technologies Ltd.		635		52,127
Broadcom Corp. Class A		1,333		52,494
Cree Inc.^a		14		638
Intel Corp.		12,531		437,583
KLA-Tencor Corp.		432		33,013
Lam Research Corp.		410		29,483
Linear Technology Corp.		586		26,434
Marvell Technology Group Ltd.		930		12,936
Maxim Integrated Products Inc.		698		21,561
Microchip Technology Inc.		520		25,392
Micron Technology Inc.^a		2,671		87,075
NVIDIA Corp.		1,449		28,183
Texas Instruments Inc.		2,713		130,712
Xilinx Inc.		678		28,646

				1,106,810
SOFTWARE — 3.88%
Activision Blizzard Inc.		1,269		29,872
Adobe Systems Inc.^a		1,196		85,992
ANSYS Inc.^a		234		19,024
Autodesk Inc.^a		558		29,931
CA Inc.		870		24,569
Citrix Systems Inc.^a		412		28,947
Electronic Arts Inc.^a		805		30,461
FireEye Inc.^a		161		5,014
Intuit Inc.		673		55,980
Microsoft Corp.		19,765		897,924
NetSuite Inc.^a		103		9,027
Nuance Communications Inc.^a,c		671		11,414
Oracle Corp.		9,013		374,310
Red Hat Inc.^a		470		28,632
Salesforce.com Inc.^a		1,478		87,335
ServiceNow Inc.^a,c		318		19,439
Symantec Corp.		1,739		42,223
Synopsys Inc.^a		403		16,483
VMware Inc. Class A^a,c		217		21,392
Workday Inc. Class A^a		238		21,675

				1,839,644
SPECIALTY RETAIL — 2.17%
Advance Auto Parts Inc.		183		24,965
AutoNation Inc.^a		193		10,470


SCHEDULES OF INVESTMENTS			51

Schedule of Investments (Continued)

iSHARES^® MSCI USA ETF

August 31, 2014


Security	Shares		Value

AutoZone Inc.^a,c		83	$	44,724
Bed Bath & Beyond Inc.^a		538		34,572
Best Buy Co. Inc.		733		23,375
CarMax Inc.^a,c		563		29,501
Dick’s Sporting Goods Inc.		252		11,358
GameStop Corp. Class A		307		12,955
Gap Inc. (The)		616		28,428
Home Depot Inc. (The)		3,441		321,733
L Brands Inc.		630		40,226
Lowe’s Companies Inc.		2,546		133,690
O’Reilly Automotive Inc.^a		270		42,115
PetSmart Inc.		259		18,537
Ross Stores Inc.		551		41,556
Staples Inc.		1,642		19,179
Tiffany & Co.		316		31,897
TJX Companies Inc. (The)		1,792		106,821
Tractor Supply Co.		344		23,031
Ulta Salon, Cosmetics & Fragrance Inc.^a		154		14,986
Urban Outfitters Inc.^a		318		12,653

				1,026,772
TEXTILES, APPAREL & LUXURY GOODS — 0.77%
Coach Inc.		691		25,450
Fossil Group Inc.^a		122		12,357
Lululemon Athletica Inc.^a		261		10,422
Michael Kors Holdings Ltd.^a		489		39,179
Nike Inc. Class B		1,777		139,583
PVH Corp.		211		24,632
Ralph Lauren Corp.		154		26,057
Under Armour Inc. Class A^a		420		28,711
VF Corp.		889		57,003

				363,394
THRIFTS & MORTGAGE FINANCE — 0.11%
Hudson City Bancorp Inc.		1,247		12,308
New York Community Bancorp Inc.		1,139		18,167
Ocwen Financial Corp.^a,c		275		7,684
People’s United Financial Inc.		837		12,513

				50,672
TOBACCO — 1.39%
Altria Group Inc.		4,993		215,098
Lorillard Inc.		917		54,745
Philip Morris International Inc.		3,968		339,582
Reynolds American Inc.		807		47,185

				656,610


Security	Shares		Value

TRADING COMPANIES & DISTRIBUTORS — 0.21%
Fastenal Co.		711	$	32,194
United Rentals Inc.^a,c		244		28,707
W.W. Grainger Inc.		157		38,653

				99,554
WATER UTILITIES — 0.05%
American Water Works Co. Inc.		466		23,584

				23,584
WIRELESS TELECOMMUNICATION SERVICES — 0.14%
SBA Communications Corp. Class A^a		325		35,844
Sprint Corp.^a,c		1,978		11,097
T-Mobile US Inc.^a		628		18,890

				65,831

TOTAL COMMON STOCKS (Cost: $43,453,288)				47,258,640

SHORT-TERM INVESTMENTS — 0.81%

MONEY MARKET FUNDS — 0.81%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^b,d,e		296,548		296,548
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^b,d,e		18,668		18,668
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,d		67,918		67,918

				383,134


TOTAL SHORT-TERM INVESTMENTS
(Cost: $383,134)				383,134

TOTAL INVESTMENTS IN SECURITIES — 100.53%				47,641,774
(Cost: $43,836,422)
Other Assets, Less Liabilities — (0.53)%				(250,282	)

NET ASSETS — 100.00%			$	47,391,492


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 1.

^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 1.

See notes to financial statements.


52		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2014


	iShares MSCI Brazil Capped ETF			iShares MSCI Canada ETF			iShares MSCI Chile Capped ETF

ASSETS
Investments, at cost:
Unaffiliated	$	3,151,638,470		$	3,669,195,894		$	306,715,634
Affiliated (Note 2)		4,267,567			32,050,890			316,985

Total cost of investments	$	3,155,906,037		$	3,701,246,784		$	307,032,619

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	5,433,655,340		$	3,778,059,600		$	351,665,355
Affiliated (Note 2)		4,267,567			32,050,890			316,985

Total fair value of investments		5,437,922,907			3,810,110,490			351,982,340
Foreign currency, at value^b		96,722,116			14,480,684			—
Cash		—			87,285			—
Receivables:
Investment securities sold		105,791,175			4,610,172			5,654,193
Dividends and interest		8,134,311			9,523,456			45,700
Capital shares sold		1,734,863			262,472			34,969,746
Futures variation margin		—			893,090			—

Total Assets		5,650,305,372			3,839,967,649			392,651,979


LIABILITIES
Payables:
Investment securities purchased		198,077,181			20,818,513			39,978,432
Due to broker for foreign currency pledged for futures, at value^b		—			245,792			—
Collateral for securities on loan (Note 1)		—			30,133,277			—
Capital shares redeemed		—			372,907			—
Investment advisory fees (Note 2)		2,542,856			1,490,930			174,094

Total Liabilities		200,620,037			53,061,419			40,152,526


NET ASSETS	$	5,449,685,335		$	3,786,906,230		$	352,499,453


Net assets consist of:
Paid-in capital	$	4,977,316,433		$	4,020,446,448		$	458,815,504
Undistributed (distributions in excess of) net investment income		(3,286,174	)		3,649,118			21,583
Accumulated net realized loss		(1,805,495,822	)		(346,816,719	)		(151,287,180	)
Net unrealized appreciation		2,281,150,898			109,627,383			44,949,546

NET ASSETS	$	5,449,685,335		$	3,786,906,230		$	352,499,453


Shares outstanding^c		101,650,000			115,000,000			8,100,000


Net asset value per share	$	53.61		$	32.93		$	43.52

^a	Securities on loan with values of $ —, $28,500,223 and $ —, respectively. See Note 1.

^b	Cost of foreign currency including currency at broker, if any: $96,620,589, $14,348,128 and $ —, respectively.

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

See notes to financial statements.


FINANCIAL STATEMENTS			53

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI Colombia Capped ETF			iShares MSCI Israel Capped ETF			iShares MSCI Mexico Capped ETF

ASSETS
Investments, at cost:
Unaffiliated	$	22,432,223		$	138,192,292		$	3,219,226,307
Affiliated (Note 2)		53,269			11,119			139,109,903

Total cost of investments	$	22,485,492		$	138,203,411		$	3,358,336,210

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	24,896,773		$	121,310,194		$	3,269,032,024
Affiliated (Note 2)		53,269			11,119			139,109,903

Total fair value of investments		24,950,042			121,321,313			3,408,141,927
Foreign currency, at value^b		1,323			166,691			6,151,426
Cash		—			15,684			—
Receivables:
Investment securities sold		919,802			—			171,672,731
Due from custodian (Note 4)		—			310,777			—
Dividends and interest		7,446			205,137			683,169

Total Assets		25,878,613			122,019,602			3,586,649,253


LIABILITIES
Payables:
Investment securities purchased		469,964			310,777			172,360,109
Collateral for securities on loan (Note 1)		—			—			137,860,359
Investment advisory fees (Note 2)		12,977			63,517			1,276,693

Total Liabilities		482,941			374,294			311,497,161


NET ASSETS	$	25,395,672		$	121,645,308		$	3,275,152,092


Net assets consist of:
Paid-in capital	$	23,088,890		$	173,096,762		$	3,441,594,592
Undistributed (distributions in excess of) net investment income		—			(29,486	)		5,791,200
Accumulated net realized loss		(157,729	)		(34,537,788	)		(222,041,441	)
Net unrealized appreciation (depreciation)		2,464,511			(16,884,180	)		49,807,741

NET ASSETS	$	25,395,672		$	121,645,308		$	3,275,152,092


Shares outstanding^c		900,000			2,400,000			45,800,000


Net asset value per share	$	28.22		$	50.69		$	71.51

^a	Securities on loan with values of $ —, $ — and $124,185,860, respectively. See Note 1.

^b	Cost of foreign currency: $1,344, $166,162 and $6,152,722, respectively.

^c	$0.001 par value, number of shares authorized: 25 million, 500 million and 255 million, respectively.

See notes to financial statements.


54		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI South Africa ETF			iShares MSCI Turkey ETF			iShares MSCI USA ETF

ASSETS
Investments, at cost:
Unaffiliated	$	612,611,093		$	598,408,037		$	43,245,366
Affiliated (Note 2)		3,719,706			54,885,087			591,056

Total cost of investments	$	616,330,799		$	653,293,124		$	43,836,422

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	585,333,833		$	514,967,294		$	47,033,102
Affiliated (Note 2)		3,719,706			54,885,087			608,672

Total fair value of investments		589,053,539			569,852,381			47,641,774
Foreign currency, at value^b		485,864			489,806			—
Receivables:
Investment securities sold		5,667,530			—			156,788
Dividends and interest		1,125,850			92,652			103,428

Total Assets		596,332,783			570,434,839			47,901,990


LIABILITIES
Payables:
Investment securities purchased		5,071,719			—			188,969
Collateral for securities on loan (Note 1)		3,559,939			54,774,841			315,216
Capital shares redeemed		—			22,923			—
Investment advisory fees (Note 2)		305,487			270,239			6,313

Total Liabilities		8,937,145			55,068,003			510,498


NET ASSETS	$	587,395,638		$	515,366,836		$	47,391,492


Net assets consist of:
Paid-in capital	$	695,618,803		$	655,415,592		$	43,711,522
Undistributed net investment income		836,307			—			133,983
Accumulated net realized loss		(81,787,271	)		(56,602,285	)		(259,365	)
Net unrealized appreciation (depreciation)		(27,272,201	)		(83,446,471	)		3,805,352

NET ASSETS	$	587,395,638		$	515,366,836		$	47,391,492


Shares outstanding^c		8,300,000			9,250,000			1,100,000


Net asset value per share	$	70.77		$	55.72		$	43.08

^a	Securities on loan with values of $3,377,559, $51,535,094 and $309,911, respectively. See Note 1.

^b	Cost of foreign currency: $486,568, $495,528 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			55

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI Brazil Capped ETF			iShares MSCI Canada ETF			iShares MSCI Chile Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	187,425,894		$	81,585,704		$	7,181,222
Interest — unaffiliated		—			2,394			—
Interest — affiliated (Note 2)		537			383			52
Securities lending income — affiliated (Note 2)		—			1,065,225			—

Total investment income		187,426,431			82,653,706			7,181,274


EXPENSES
Investment advisory fees (Note 2)		29,033,197			16,221,385			2,104,233

Total expenses		29,033,197			16,221,385			2,104,233

Net investment income		158,393,234			66,432,321			5,077,041


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(23,777,530	)		(50,773,679	)		(40,704,676	)
In-kind redemptions — unaffiliated		—			53,425,766			—
Futures contracts		—			2,438,399			—
Foreign currency transactions		(679,380	)		1,174,181			(297,290	)

Net realized gain (loss)		(24,456,910	)		6,264,667			(41,001,966	)

Net change in unrealized appreciation/depreciation on:
Investments		1,183,727,046			621,327,362			(2,261,755	)
Futures contracts		—			473,482			—
Translation of assets and liabilities in foreign currencies		1,879,635			117,579			2,418

Net change in unrealized appreciation/depreciation		1,185,606,681			621,918,423			(2,259,337	)

Net realized and unrealized gain (loss)		1,161,149,771			628,183,090			(43,261,303	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	1,319,543,005		$	694,615,411		$	(38,184,262	)

^a	Net of foreign withholding tax of $15,133,581, $13,239,940 and $1,932,229, respectively.

See notes to financial statements.


56		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI Colombia Capped ETF			iShares MSCI Israel Capped ETF			iShares MSCI Mexico Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	667,453		$	2,495,865		$	54,885,193
Interest — affiliated (Note 2)		5			11			228
Securities lending income — affiliated (Note 2)		—			19,882			1,152,843

Total investment income		667,458			2,515,758			56,038,264


EXPENSES
Investment advisory fees (Note 2)		129,378			660,053			12,859,191
Commitment fees (Note 8)		10			—			—
Interest expense (Note 8)		263			—			—

Total expenses		129,651			660,053			12,859,191

Net investment income		537,807			1,855,705			43,179,073


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(96,247	)		(3,484,675	)		(100,816,124	)
Investments — affiliated (Note 2)		—			—			(19,863,537	)
In-kind redemptions — unaffiliated		—			13,880,363			71,202,595
In-kind redemptions — affiliated (Note 2)		—			—			(64,003	)
Foreign currency transactions		(30,039	)		27,237			(264,810	)

Net realized gain (loss)		(126,286	)		10,422,925			(49,805,879	)

Net change in unrealized appreciation/depreciation on:
Investments		2,089,609			4,245,934			416,437,490
Translation of assets and liabilities in foreign currencies		1,550			(759	)		211,625

Net change in unrealized appreciation/depreciation		2,091,159			4,245,175			416,649,115

Net realized and unrealized gain		1,964,873			14,668,100			366,843,236

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,502,680		$	16,523,805		$	410,022,309

^a	Net of foreign withholding tax of $10,006, $595,662 and $612,833, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			57

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI South Africa ETF			iShares MSCI Turkey ETF			iShares MSCI USA ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	16,365,495		$	10,717,821		$	2,568,279
Dividends — affiliated (Note 2)		—			—			14,017
Interest — affiliated (Note 2)		55			16			28
Securities lending income — affiliated (Note 2)		149,288			924,795			5,776

Total investment income		16,514,838			11,642,632			2,588,100


EXPENSES
Investment advisory fees (Note 2)		3,384,634			3,190,075			196,623

Total expenses		3,384,634			3,190,075			196,623

Net investment income		13,130,204			8,452,557			2,391,477


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(12,973,359	)		(20,693,968	)		(201,309	)
Investments — affiliated (Note 2)		—			—			(133	)
In-kind redemptions — unaffiliated		51,033,118			25,122,524			56,817,914
In-kind redemptions — affiliated (Note 2)		—			—			308,322
Foreign currency transactions		1,640			(26,751	)		—

Net realized gain		38,061,399			4,401,805			56,924,794

Net change in unrealized appreciation/depreciation on:
Investments		57,083,194			93,536,186			(29,707,391	)
Short positions (Note 1)		—			—			(7	)
Translation of assets and liabilities in foreign currencies		18,819			19,725			—

Net change in unrealized appreciation/depreciation		57,102,013			93,555,911			(29,707,398	)

Net realized and unrealized gain		95,163,412			97,957,716			27,217,396

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	108,293,616		$	106,410,273		$	29,608,873

^a	Net of foreign withholding tax of $2,652,977, $1,656,844 and $326, respectively.

See notes to financial statements.


58		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.



	iShares MSCI Brazil Capped ETF						iShares MSCI Canada ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	158,393,234		$	234,016,311		$	66,432,321		$	90,664,360
Net realized gain (loss)		(24,456,910	)		(504,905,186	)		6,264,667			(217,797	)
Net change in unrealized appreciation/depreciation		1,185,606,681			(731,631,556	)		621,918,423			(21,929,084	)

Net increase (decrease) in net assets resulting from operations		1,319,543,005			(1,002,520,431	)		694,615,411			68,517,479


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(151,885,117	)		(201,420,612	)		(71,105,660	)		(101,089,405	)

Total distributions to shareholders		(151,885,117	)		(201,420,612	)		(71,105,660	)		(101,089,405	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		2,103,462,834			2,841,464,893			537,013,459			644,392,669
Cost of shares redeemed		(2,805,065,721	)		(4,024,510,606	)		(801,840,234	)		(1,438,141,791	)

Net decrease in net assets from capital share transactions		(701,602,887	)		(1,183,045,713	)		(264,826,775	)		(793,749,122	)

INCREASE (DECREASE) IN NET ASSETS		466,055,001			(2,386,986,756	)		358,682,976			(826,321,048	)

NET ASSETS
Beginning of year		4,983,630,334			7,370,617,090			3,428,223,254			4,254,544,302

End of year	$	5,449,685,335		$	4,983,630,334		$	3,786,906,230		$	3,428,223,254

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(3,286,174	)	$	(11,312,557	)	$	3,649,118		$	5,407,684


SHARES ISSUED AND REDEEMED
Shares sold		45,450,000			56,450,000			17,400,000			22,700,000
Shares redeemed		(61,000,000	)		(79,350,000	)		(27,800,000	)		(51,900,000	)

Net decrease in shares outstanding		(15,550,000	)		(22,900,000	)		(10,400,000	)		(29,200,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			59

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Chile Capped ETF						iShares MSCI Colombia Capped ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Period from June 18, 2013^a to August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	5,077,041		$	5,971,692		$	537,807		$	18,943
Net realized loss		(41,001,966	)		(18,305,706	)		(126,286	)		(39,871	)
Net change in unrealized appreciation/depreciation		(2,259,337	)		(89,351,302	)		2,091,159			373,352

Net increase (decrease) in net assets resulting from operations		(38,184,262	)		(101,685,316	)		2,502,680			352,424


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(4,758,168	)		(5,669,647	)		(523,757	)		—
From net realized gain		—			—			(24,565	)		—
Return of capital		—			(235,875	)		(10,400	)		—

Total distributions to shareholders		(4,758,168	)		(5,905,522	)		(558,722	)		—


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		306,288,062			96,241,277			5,263,753			17,835,537
Cost of shares redeemed		(275,735,795	)		(172,557,468	)		—			—

Net increase (decrease) in net assets from capital share transactions		30,552,267			(76,316,191	)		5,263,753			17,835,537

INCREASE (DECREASE) IN NET ASSETS		(12,390,163	)		(183,907,029	)		7,207,711			18,187,961

NET ASSETS
Beginning of period		364,889,616			548,796,645			18,187,961			—

End of period	$	352,499,453		$	364,889,616		$	25,395,672		$	18,187,961

Undistributed net investment income included in net assets at end of period	$	21,583		$	—		$	—		$	15,989


SHARES ISSUED AND REDEEMED
Shares sold		6,450,000			1,600,000			200,000			700,000
Shares redeemed		(6,000,000	)		(3,050,000	)		—			—

Net increase (decrease) in shares outstanding		450,000			(1,450,000	)		200,000			700,000

^a	Commencement of operations.

See notes to financial statements.


60		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.



	iShares MSCI Israel Capped ETF						iShares MSCI Mexico Capped ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	1,855,705		$	1,746,415		$	43,179,073		$	23,387,350
Net realized gain (loss)		10,422,925			(2,451,315	)		(49,805,879	)		58,110,855
Net change in unrealized appreciation/depreciation		4,245,175			13,324,637			416,649,115			(251,180,438	)

Net increase (decrease) in net assets resulting from operations		16,523,805			12,619,737			410,022,309			(169,682,233	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,015,418	)		(1,885,659	)		(41,504,491	)		(20,571,276	)

Total distributions to shareholders		(2,015,418	)		(1,885,659	)		(41,504,491	)		(20,571,276	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		124,975,600			4,057,008			2,034,431,562			2,551,091,943
Cost of shares redeemed		(88,548,464	)		(12,993,789	)		(1,344,849,484	)		(1,326,485,790	)

Net increase (decrease) in net assets from capital share transactions		36,427,136			(8,936,781	)		689,582,078			1,224,606,153

INCREASE IN NET ASSETS		50,935,523			1,797,297			1,058,099,896			1,034,352,644

NET ASSETS
Beginning of year		70,709,785			68,912,488			2,217,052,196			1,182,699,552

End of year	$	121,645,308		$	70,709,785		$	3,275,152,092		$	2,217,052,196

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(29,486	)	$	(114,132	)	$	5,791,200		$	4,231,855


SHARES ISSUED AND REDEEMED
Shares sold		2,500,000			100,000			31,000,000			36,200,000
Shares redeemed		(1,750,000	)		(300,000	)		(21,000,000	)		(19,800,000	)

Net increase (decrease) in shares outstanding		750,000			(200,000	)		10,000,000			16,400,000

See notes to financial statements.


FINANCIAL STATEMENTS			61

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.



	iShares MSCI South Africa ETF						iShares MSCI Turkey ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	13,130,204		$	10,563,037		$	8,452,557		$	12,304,114
Net realized gain		38,061,399			9,898,524			4,401,805			23,341,248
Net change in unrealized appreciation/depreciation		57,102,013			(55,224,683	)		93,555,911			(125,847,399	)

Net increase (decrease) in net assets resulting from operations		108,293,616			(34,763,122	)		106,410,273			(90,202,037	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(12,294,677	)		(13,575,195	)		(8,703,391	)		(12,901,893	)

Total distributions to shareholders		(12,294,677	)		(13,575,195	)		(8,703,391	)		(12,901,893	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		281,249,453			295,390,025			364,224,026			506,879,433
Cost of shares redeemed		(337,422,079	)		(171,404,561	)		(382,640,118	)		(528,983,742	)

Net increase (decrease) in net assets from capital share transactions		(56,172,626	)		123,985,464			(18,416,092	)		(22,104,309	)

INCREASE (DECREASE) IN NET ASSETS		39,826,313			75,647,147			79,290,790			(125,208,239	)

NET ASSETS
Beginning of year		547,569,325			471,922,178			436,076,046			561,284,285

End of year	$	587,395,638		$	547,569,325		$	515,366,836		$	436,076,046

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	836,307		$	(999,286	)	$	—		$	(53	)


SHARES ISSUED AND REDEEMED
Shares sold		4,300,000			4,800,000			7,500,000			7,950,000
Shares redeemed		(5,300,000	)		(2,800,000	)		(7,150,000	)		(9,050,000	)

Net increase (decrease) in shares outstanding		(1,000,000	)		2,000,000			350,000			(1,100,000	)

See notes to financial statements.


62		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.



	iShares MSCI USA ETF
	Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	2,391,477		$	3,339,631
Net realized gain		56,924,794			4,666,050
Net change in unrealized appreciation/depreciation		(29,707,398	)		18,945,599

Net increase in net assets resulting from operations		29,608,873			26,951,280


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,876,350	)		(3,310,642	)

Total distributions to shareholders		(2,876,350	)		(3,310,642	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		48,587,993			36,217,071
Cost of shares redeemed		(207,759,194	)		(25,497,372	)

Net increase (decrease) in net assets from capital share transactions		(159,171,201	)		10,719,699

INCREASE (DECREASE) IN NET ASSETS		(132,438,678	)		34,360,337

NET ASSETS
Beginning of year		179,830,170			145,469,833

End of year	$	47,391,492		$	179,830,170

Undistributed net investment income included in net assets at end of year	$	133,983		$	618,856


SHARES ISSUED AND REDEEMED
Shares sold		1,250,000			1,100,000
Shares redeemed		(5,250,000	)		(800,000	)

Net increase (decrease) in shares outstanding		(4,000,000	)		300,000

See notes to financial statements.


FINANCIAL STATEMENTS			63

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Brazil Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	42.52		$	52.61		$	65.00		$	68.07		$	58.26

Income from investment operations:
Net investment income^a		1.56			1.59			1.73			2.24			1.56
Net realized and unrealized gain (loss)^b		11.08			(10.32	)		(12.64	)		(1.69	)		10.83

Total from investment operations		12.64			(8.73	)		(10.91	)		0.55			12.39

Less distributions from:
Net investment income		(1.55	)		(1.36	)		(0.56	)		(3.62	)		(2.58	)
Return of capital		—			—			(0.92	)		—			—

Total distributions		(1.55	)		(1.36	)		(1.48	)		(3.62	)		(2.58	)

Net asset value, end of year	$	53.61		$	42.52		$	52.61		$	65.00		$	68.07


Total return		30.33	%		(16.85	)%		(16.79	)%		0.36	%		21.12	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	5,449,685		$	4,983,630		$	7,370,617		$	11,332,121		$	9,240,453
Ratio of expenses to average net assets		0.62	%		0.61	%		0.61	%		0.59	%		0.61	%
Ratio of net investment income to average net assets		3.37	%		3.02	%		2.92	%		3.08	%		2.24	%
Portfolio turnover rate^c		54	%		56	%		7	%		11	%		13	%

^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.

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 rates for the years ended August 31, 2014, August 31, 2013, August 31, 2012, August 31, 2011 and August 31, 2010 were 11%, 20%, 6%, 11% and 13%, respectively. See Note 4.

See notes to financial statements.


64		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Canada ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	27.34		$	27.52		$	29.89		$	26.10		$	23.70

Income from investment operations:
Net investment income^a		0.59			0.60			0.53			0.53			0.43
Net realized and unrealized gain (loss)^b		5.62			(0.10	)		(2.33	)		3.78			2.39

Total from investment operations		6.21			0.50			(1.80	)		4.31			2.82

Less distributions from:
Net investment income		(0.62	)		(0.68	)		(0.57	)		(0.52	)		(0.42	)

Total distributions		(0.62	)		(0.68	)		(0.57	)		(0.52	)		(0.42	)

Net asset value, end of year	$	32.93		$	27.34		$	27.52		$	29.89		$	26.10


Total return		23.00	%		1.84	%		(5.87	)%		16.50	%		11.91	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,786,906		$	3,428,223		$	4,254,544		$	5,092,547		$	3,447,242
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.52	%		0.53	%
Ratio of net investment income to average net assets		1.97	%		2.12	%		1.94	%		1.70	%		1.63	%
Portfolio turnover rate^c		6	%		7	%		5	%		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	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 Chile Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	47.70		$	60.31		$	67.11		$	67.37		$	44.61

Income from investment operations:
Net investment income^a		0.69			0.68			0.97			0.95			0.59
Net realized and unrealized gain (loss)^b		(4.18	)		(12.58	)		(6.80	)		(0.23	)		22.86

Total from investment operations		(3.49	)		(11.90	)		(5.83	)		0.72			23.45

Less distributions from:
Net investment income		(0.69	)		(0.68	)		(0.92	)		(0.98	)		(0.66	)
Return of capital		—			(0.03	)		(0.05	)		(0.00	)^c		(0.03	)

Total distributions		(0.69	)		(0.71	)		(0.97	)		(0.98	)		(0.69	)

Net asset value, end of year	$	43.52		$	47.70		$	60.31		$	67.11		$	67.37


Total return		(7.40	)%		(19.87	)%		(8.68	)%		0.93	%		52.88	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	352,499		$	364,890		$	548,797		$	708,018		$	670,350
Ratio of expenses to average net assets		0.62	%		0.61	%		0.61	%		0.59	%		0.61	%
Ratio of net investment income to average net assets		1.49	%		1.12	%		1.55	%		1.30	%		1.05	%
Portfolio turnover rate^d		91	%		34	%		48	%		38	%		42	%

^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	Rounds to less than $0.01.

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 rates for the years ended August 31, 2014, August 31, 2013, August 31, 2012, August 31, 2011, and August 31, 2010 were 11%, 16%, 20%, 12%, and 9%, respectively. See Note 4.

See notes to financial statements.


66		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI Colombia Capped ETF


	Year ended Aug. 31, 2014			Period from Jun. 18, 2013^a to Aug. 31, 2013
Net asset value, beginning of period	$	25.98		$	25.28

Income from investment operations:
Net investment income^b		0.67			0.03
Net realized and unrealized gain^c		2.24			0.67

Total from investment operations		2.91			0.70

Less distributions from:
Net investment income		(0.63	)		—
Net realized gain		(0.03	)		—
Return of capital		(0.01	)		—

Total distributions		(0.67	)		—

Net asset value, end of period	$	28.22		$	25.98


Total return		11.44	%		2.77	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	25,396		$	18,188
Ratio of expenses to average net assets^e		0.61	%		0.61	%
Ratio of net investment income to average net assets^e		2.54	%		0.61	%
Portfolio turnover rate^f		34	%		2	%

^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.

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 rates for the year ended August 31, 2014 and for the period ended August 31, 2013 were 33% and 2%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			67

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Israel Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	42.85		$	37.25		$	45.89		$	49.41		$	46.87

Income from investment operations:
Net investment income^a		0.87			0.95			1.12			1.39			1.40
Net realized and unrealized gain (loss)^b		7.95			5.68			(8.66	)		(3.18	)		2.63

Total from investment operations		8.82			6.63			(7.54	)		(1.79	)		4.03

Less distributions from:
Net investment income		(0.98	)		(1.03	)		(1.07	)		(1.73	)		(1.49	)
Return of capital		—			—			(0.03	)		—			—

Total distributions		(0.98	)		(1.03	)		(1.10	)		(1.73	)		(1.49	)

Net asset value, end of year	$	50.69		$	42.85		$	37.25		$	45.89		$	49.41


Total return		20.67	%		17.82	%		(16.52	)%		(4.26	)%		8.57	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	121,645		$	70,710		$	68,912		$	78,018		$	128,473
Ratio of expenses to average net assets		0.62	%		0.61	%		0.61	%		0.59	%		0.61	%
Ratio of net investment income to average net assets		1.74	%		2.20	%		2.75	%		2.49	%		2.64	%
Portfolio turnover rate^c		15	%		14	%		20	%		17	%		21	%

^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	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		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Mexico Capped ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	61.93		$	60.96		$	58.39		$	48.17		$	42.59

Income from investment operations:
Net investment income^a		1.06			0.75			0.73			0.80			0.72
Net realized and unrealized gain^b		9.61			0.85			2.76			10.15			5.61

Total from investment operations		10.67			1.60			3.49			10.95			6.33

Less distributions from:
Net investment income		(1.09	)		(0.63	)		(0.92	)		(0.73	)		(0.75	)

Total distributions		(1.09	)		(0.63	)		(0.92	)		(0.73	)		(0.75	)

Net asset value, end of year	$	71.51		$	61.93		$	60.96		$	58.39		$	48.17


Total return		17.42	%		2.53	%		6.13	%		22.67	%		14.83	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,275,152		$	2,217,052		$	1,182,700		$	1,243,731		$	1,450,039
Ratio of expenses to average net assets		0.48	%		0.50	%		0.53	%		0.52	%		0.53	%
Ratio of net investment income to average net assets		1.61	%		1.09	%		1.26	%		1.35	%		1.46	%
Portfolio turnover rate^c		19	%		32	%		10	%		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	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 South Africa ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	58.88		$	64.65		$	69.06		$	58.74		$	51.99

Income from investment operations:
Net investment income^a		1.57			1.32			2.10			1.65			1.18
Net realized and unrealized gain (loss)^b		11.86			(5.31	)		(4.41	)		11.08			6.92

Total from investment operations		13.43			(3.99	)		(2.31	)		12.73			8.10

Less distributions from:
Net investment income		(1.54	)		(1.78	)		(2.10	)		(2.41	)		(1.35	)

Total distributions		(1.54	)		(1.78	)		(2.10	)		(2.41	)		(1.35	)

Net asset value, end of year	$	70.77		$	58.88		$	64.65		$	69.06		$	58.74


Total return		23.13	%		(6.35	)%		(3.17	)%		21.58	%		15.80	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	587,396		$	547,569		$	471,922		$	504,102		$	505,191
Ratio of expenses to average net assets		0.62	%		0.61	%		0.61	%		0.59	%		0.61	%
Ratio of net investment income to average net assets		2.40	%		2.08	%		3.26	%		2.38	%		2.09	%
Portfolio turnover rate^c		6	%		5	%		4	%		4	%		5	%

^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	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		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Turkey ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	49.00		$	56.13		$	47.73		$	60.81		$	48.01

Income from investment operations:
Net investment income^a		0.85			1.07			0.86			0.84			1.00
Net realized and unrealized gain (loss)^b		6.75			(7.08	)		8.70			(12.59	)		13.02

Total from investment operations		7.60			(6.01	)		9.56			(11.75	)		14.02

Less distributions from:
Net investment income		(0.88	)		(1.12	)		(1.16	)		(1.33	)		(1.22	)

Total distributions		(0.88	)		(1.12	)		(1.16	)		(1.33	)		(1.22	)

Net asset value, end of year	$	55.72		$	49.00		$	56.13		$	47.73		$	60.81


Total return		15.52	%		(11.05	)%		20.37	%		(19.74	)%		29.55	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	515,367		$	436,076		$	561,284		$	448,677		$	601,988
Ratio of expenses to average net assets		0.62	%		0.61	%		0.61	%		0.59	%		0.61	%
Ratio of net investment income to average net assets		1.64	%		1.67	%		1.75	%		1.30	%		1.81	%
Portfolio turnover rate^c		8	%		9	%		9	%		12	%		13	%

^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	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 USA ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Period from May 5, 2010^a to Aug. 31, 2010
Net asset value, beginning of period	$	35.26		$	30.31		$	26.17		$	22.44		$	24.83

Income from investment operations:
Net investment income^b		0.71			0.69			0.59			0.51			0.17
Net realized and unrealized gain (loss)^c		8.01			4.96			3.94			3.73			(2.49	)

Total from investment operations		8.72			5.65			4.53			4.24			(2.32	)

Less distributions from:
Net investment income		(0.90	)		(0.70	)		(0.39	)		(0.51	)		(0.07	)

Total distributions		(0.90	)		(0.70	)		(0.39	)		(0.51	)		(0.07	)

Net asset value, end of period	$	43.08		$	35.26		$	30.31		$	26.17		$	22.44


Total return		24.98	%		18.85	%		17.44	%		18.89	%		(9.37	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	47,391		$	179,830		$	145,470		$	5,233		$	2,244
Ratio of expenses to average net assets^e		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Ratio of net investment income to average net assets^e		1.82	%		2.10	%		2.04	%		1.90	%		2.21	%
Portfolio turnover rate^f		6	%		5	%		6	%		8	%		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.


72		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

iSHARES^®, INC.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):


iShares ETF	Diversification Classification
MSCI Brazil Capped		Non-diversified
MSCI Canada		Diversified
MSCI Chile Capped		Non-diversified
MSCI Colombia Capped		Non-diversified
MSCI Israel Capped		Non-diversified


iShares ETF	Diversification Classification
MSCI Mexico Capped		Non-diversified
MSCI South Africa		Non-diversified
MSCI Turkey		Non-diversified
MSCI USA		Diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•


NOTES TO FINANCIAL STATEMENTS			73

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

•

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.


74		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2		Level 3		Total
MSCI Brazil Capped
Assets:
Common Stocks	$	3,220,017,448	$	—	$	—	$	3,220,017,448
Preferred Stocks		2,213,637,892		—		—		2,213,637,892
Money Market Funds		4,267,567		—		—		4,267,567

	$	5,437,922,907	$	—	$	—	$	5,437,922,907


MSCI Canada
Assets:
Common Stocks	$	3,778,059,600	$	—	$	—	$	3,778,059,600
Money Market Funds		32,050,890		—		—		32,050,890
Futures Contracts^a		893,090		—		—		893,090

	$	3,811,003,580	$	—	$	—	$	3,811,003,580


MSCI Chile Capped
Assets:
Common Stocks	$	329,842,949	$	—	$	—	$	329,842,949
Preferred Stocks		21,822,406		—		—		21,822,406
Money Market Funds		316,985		—		—		316,985

	$	351,982,340	$	—	$	—	$	351,982,340


MSCI Colombia Capped
Assets:
Common Stocks	$	19,843,670	$	—	$	—	$	19,843,670
Preferred Stocks		5,053,103		—		—		5,053,103
Money Market Funds		53,269		—		—		53,269

	$	24,950,042	$	—	$	—	$	24,950,042


MSCI Israel Capped
Assets:
Common Stocks	$	121,310,194	$	—	$	—	$	121,310,194
Money Market Funds		11,119		—		—		11,119

	$	121,321,313	$	—	$	—	$	121,321,313


MSCI Mexico Capped
Assets:
Common Stocks	$	3,269,031,989	$	—	$	35	$	3,269,032,024
Money Market Funds		139,109,903		—		—		139,109,903

	$	3,408,141,892	$	—	$	35	$	3,408,141,927


NOTES TO FINANCIAL STATEMENTS			75

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2		Level 3		Total
MSCI South Africa
Assets:
Common Stocks	$	585,331,363	$	—	$	2,470	$	585,333,833
Money Market Funds		3,719,706		—		—		3,719,706

	$	589,051,069	$	—	$	2,470	$	589,053,539


MSCI Turkey
Assets:
Common Stocks	$	513,272,175	$	1,695,119	$	—	$	514,967,294
Money Market Funds		54,885,087		—		—		54,885,087

	$	568,157,262	$	1,695,119	$	—	$	569,852,381


MSCI USA
Assets:
Common Stocks	$	47,258,640	$	—	$	—	$	47,258,640
Money Market Funds		383,134		—		—		383,134

	$	47,641,774	$	—	$	—	$	47,641,774

Shown at the unrealized appreciation (depreciation) on the contracts.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

SHORT POSITIONS

From time to time, in order to track the performance of their respective benchmark index, the Funds may sell non-index securities that will be received through corporate actions occurring on the opening of market trading on the following business day. Such short positions are valued consistent with how securities are valued as described under “Security Valuation.” The obligation to deliver the securities is recorded as a liability in the Funds’ statements of assets and liabilities and is equal to the current fair value of the securities to be delivered. Any market fluctuations between the value of the obligation to sell these securities and the current fair value are reflected as unrealized appreciation (depreciation) in the Funds’ statements of operations. Upon receipt of the securities related to the corporate actions, the Funds record a realized gain (loss). Dividends on securities sold short, if any, are reflected as an expense in the statement of operations. Details of the short position resulting from the non-index securities sold by the Funds, if any, are included in their respective schedule of investments.


76		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			77

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of each Fund’s securities lending agreements which are subject to offset under an MSLA as of August 31, 2014:


iShares ETF	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Canada	$	28,500,223	$	28,500,223	$	—
MSCI Mexico Capped		124,185,860		124,185,860		—
MSCI South Africa		3,377,559		3,377,559		—
MSCI Turkey		51,535,094		51,535,094		—
MSCI USA		309,911		309,911		—

RECENT ACCOUNTING STANDARD

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*


78		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For its investment advisory services to each of the iShares MSCI Canada and iShares MSCI Mexico Capped ETFs, 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 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, up to and including $72 billion
	0.36		Over $72 billion^a

Breakpoint level was added effective July 1, 2014.

For its investment advisory services to each of the iShares MSCI Brazil Capped, iShares MSCI Chile Capped, iShares MSCI Israel Capped, iShares MSCI South Africa and iShares MSCI Turkey ETFs, 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 Fund 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

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows:


iShares ETF	Investment Advisory Fee
MSCI Colombia Capped		0.61	%
MSCI USA		0.15

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Effective January 1, 2014, each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit a remaining portion to BTC as compensation for its services as securities lending agent.


NOTES TO FINANCIAL STATEMENTS			79

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Pursuant to a securities lending agreement effective January 1, 2014, (i) the iShares MSCI USA ETF (the “Group 1 Fund”) retains 70% of securities lending income and (ii) the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.

Pursuant to a securities lending agreement effective January 1, 2014, (i) the iShares MSCI Brazil Capped, iShares MSCI Canada, iShares MSCI Chile Capped, iShares MSCI Colombia Capped, iShares MSCI Israel Capped, iShares MSCI Mexico Capped, iShares MSCI South Africa and iShares MSCI Turkey ETFs (the “Group 2 Funds”) retain 75% of securities lending income and (ii) these amounts can never be less than 65% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in calendar year 2013 and pursuant to a securities lending agreement, each Group 1 Fund will (i) receive for the remainder of that calendar year 75% of securities lending income and (ii) the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. Each Group 2 Fund will (i) receive for the remainder of that calendar year 80% of securities lending income and (ii) these amounts can never be less than 65% of the total of securities lending income plus the collateral investment fees.

For the year ended August 31, 2014, each Fund paid to BTC the following amounts in total for securities lending agent services and collateral investment fees:


iShares ETF	Fees Paid to BTC
MSCI Canada	$	393,308
MSCI Israel Capped		9,376
MSCI Mexico Capped		514,945
MSCI South Africa		59,464
MSCI Turkey		354,188
MSCI USA		2,997

Prior to January 1, 2014, each Fund retained 65% of securities lending income and paid no collateral investment fees.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.


80		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the year ended August 31, 2014, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:


iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Year		Shares Purchased		Shares Sold			Shares Held at End of Year		Value at End of Year		Dividend Income		Net Realized Gain (Loss)
MSCI Mexico Capped
Desarrolladora Homex SAB de CV		28,207,210		5,221,000		(33,428,210	)		—	$	—	$	—	$	(19,927,540	)

MSCI USA
BlackRock Inc.		1,575		404		(1,641	)		338	$	111,719	$	6,372	$	175,180
PNC Financial Services Group Inc. (The)		6,204		1,654		(6,515	)		1,343		113,819		7,645		133,009

										$	225,538	$	14,017	$	308,189

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 year ended August 31, 2014 were as follows:


iShares ETF	Purchases		Sales
MSCI Brazil Capped	$	2,567,009,818	$	3,239,191,320
MSCI Canada		189,981,357		191,623,352
MSCI Chile Capped		341,894,894		311,839,157
MSCI Colombia Capped		11,546,678		7,096,336
MSCI Israel Capped		15,419,833		15,837,959
MSCI Mexico Capped		504,694,694		495,798,020
MSCI South Africa		36,200,812		31,255,319
MSCI Turkey		43,509,653		44,991,678
MSCI USA		7,636,532		8,518,661

In-kind transactions (see Note 4) for the year ended August 31, 2014 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Canada	$	531,561,946	$	792,146,793
MSCI Colombia Capped		327,187		—
MSCI Israel Capped		124,371,328		87,646,524
MSCI Mexico Capped		2,014,187,958		1,339,450,361
MSCI South Africa		274,522,214		336,633,310
MSCI Turkey		363,711,226		380,877,821
MSCI USA		48,383,549		206,769,988


NOTES TO FINANCIAL STATEMENTS			81

Notes to Financial Statements (Continued)

iSHARES^®, INC.

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FINANCIAL FUTURES CONTRACTS*

The following table shows the value of futures contracts held by the iShares MSCI Canada ETF as of August 31, 2014 and the related locations in the statements of assets and liabilities, presented by risk exposure category:


Assets
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation^a	$	893,090

Represents cumulative appreciation of futures contracts as reported in the schedule of investments.


82		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI Canada ETF during the year ended August 31, 2014 and the related locations in the statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	2,438,399	$	473,482

For the year ended August 31, 2014, the average quarter-end number of contracts and notional value of open futures contracts for the iShares MSCI Canada ETF were 82 and $12,427,393, respectively.

6.	*MARKET AND CREDIT RISK*

MARKET RISK

Each Fund, except for the iShares MSCI USA ETF, invests a substantial amount of its assets in securities of non-U.S. issuers that trade in non-U.S. markets. This involves 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. These risks are heightened for investments in issuers from countries with less developed markets.


NOTES TO FINANCIAL STATEMENTS			83

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Each Fund, except for the iShares MSCI USA ETF, invests all or substantially all of its assets in issuers located in a single country other than the U.S. When a fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.

CREDIT RISK

7.	*INCOME TAX INFORMATION*


iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI Brazil Capped	$	—		$	1,518,266		$	(1,518,266	)
MSCI Canada		25,269,848			2,914,773			(28,184,621	)
MSCI Chile Capped		—			(297,290	)		297,290
MSCI Colombia Capped		—			(30,039	)		30,039
MSCI Israel Capped		11,457,880			244,359			(11,702,239	)
MSCI Mexico Capped		(6,252,333	)		(115,237	)		6,367,570
MSCI South Africa		42,288,384			1,000,066			(43,288,450	)
MSCI Turkey		18,732,905			250,887			(18,983,792	)
MSCI USA		56,688,371			—			(56,688,371	)


84		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The tax character of distributions paid during the years ended August 31, 2014 and August 31, 2013 was as follows:


iShares ETF	2014		2013
MSCI Brazil Capped
Ordinary income	$	151,885,117	$	201,420,612


MSCI Canada
Ordinary income	$	71,105,660	$	101,089,405


MSCI Chile Capped
Ordinary income	$	4,758,168	$	5,669,647
Return of Capital		—		235,875

	$	4,758,168	$	5,905,522


MSCI Colombia Capped
Ordinary income	$	548,322	$	—
Return of Capital		10,400		—

	$	558,722	$	—


MSCI Israel Capped
Ordinary income	$	2,015,418	$	1,885,659


MSCI Mexico Capped
Ordinary income	$	41,504,491	$	20,571,276


MSCI South Africa
Ordinary income	$	12,294,677	$	13,575,195


MSCI Turkey
Ordinary income	$	8,703,391	$	12,901,893


MSCI USA
Ordinary income	$	2,876,350	$	3,310,642

As of August 31, 2014, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a			Qualified Late-Year Losses ^b			Total
MSCI Brazil Capped	$	4,341,889	$	(1,187,638,541	)	$	1,703,875,279		$	(48,209,725	)	$	472,368,902
MSCI Canada		7,492,187		(264,812,268	)		55,221,153			(31,441,290	)		(233,540,218	)
MSCI Chile Capped		21,583		(80,566,157	)		(1,409,601	)		(24,361,876	)		(106,316,051	)
MSCI Colombia Capped		—		—			2,347,121			(40,339	)		2,306,782
MSCI Israel Capped		46,719		(32,196,728	)		(18,162,579	)		(1,138,866	)		(51,451,454	)
MSCI Mexico Capped		9,283,283		(77,936,111	)		(35,652,424	)		(62,137,248	)		(166,442,500	)
MSCI South Africa		837,167		(66,190,816	)		(37,193,872	)		(5,675,644	)		(108,223,165	)
MSCI Turkey		—		(32,397,921	)		(99,684,609	)		(7,966,226	)		(140,048,756	)
MSCI USA		133,983		(56,840	)		3,671,622			(68,795	)		3,679,970

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.


NOTES TO FINANCIAL STATEMENTS			85

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2014, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


iShares ETF	Non- Expiring^a		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Expiring 2019		Total
MSCI Brazil Capped	$	989,412,231	$	—	$	—	$	—	$	198,226,310	$	—	$	1,187,638,541
MSCI Canada		142,622,027		5,363,291		5,107,471		27,886,883		68,928,677		14,903,919		264,812,268
MSCI Chile Capped		65,990,195		—		—		1,886,881		11,712,090		976,991		80,566,157
MSCI Israel Capped		13,480,809		—		—		784,479		10,801,191		7,130,249		32,196,728
MSCI Mexico Capped		42,455,837		—		853,150		8,973,988		2,789,471		22,863,665		77,936,111
MSCI South Africa		27,277,976		1,607,845		972,024		15,339,464		14,856,365		6,137,142		66,190,816
MSCI Turkey		21,835,364		—		—		720,636		5,982,737		3,859,184		32,397,921
MSCI USA		56,840		—		—		—		—		—		56,840

Must be utilized prior to losses subject to expiration.

For the year ended August 31, 2014, the Funds utilized their capital loss carryforwards as follows:


iShares ETF	Utilized
MSCI Colombia Capped	$	36,917
MSCI USA		118,640

As of August 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI Brazil Capped	$	3,733,181,656	$	2,307,316,849	$	(602,575,598	)	$	1,704,741,251
MSCI Canada		3,755,644,171		614,936,207		(560,469,888	)		54,466,319
MSCI Chile Capped		353,391,766		53,164,604		(54,574,030	)		(1,409,426	)
MSCI Colombia Capped		22,602,882		2,999,710		(652,550	)		2,347,160
MSCI Israel Capped		139,481,810		1,123,618		(19,284,115	)		(18,160,497	)
MSCI Mexico Capped		3,443,796,375		187,278,849		(222,933,297	)		(35,654,448	)
MSCI South Africa		626,252,470		72,791,371		(109,990,302	)		(37,198,931	)
MSCI Turkey		669,531,262		11,172,988		(110,851,869	)		(99,678,881	)
MSCI USA		43,970,152		4,065,093		(393,471	)		3,671,622


86		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

8.	*LINE OF CREDIT*

The iShares MSCI Colombia Capped ETF, along with certain other iShares funds, are parties to a $150 million credit agreement with State Street Bank and Trust Company, which expires October 28, 2015. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.08% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

For the year ended August 31, 2014, the iShares MSCI Colombia Capped ETF’s maximum amount borrowed, the average borrowings and the weighted average interest rate under the credit agreement were $900,000, $22,192 and 1.17% respectively.

9.	*SUBSEQUENT EVENTS*


NOTES TO FINANCIAL STATEMENTS			87

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

iShares, Inc.:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI Brazil Capped ETF, iShares MSCI Canada ETF, iShares MSCI Chile Capped ETF, iShares MSCI Colombia Capped ETF, iShares MSCI Israel Capped ETF, iShares MSCI Mexico Capped ETF, iShares MSCI South Africa ETF, iShares MSCI Turkey ETF and iShares MSCI USA ETF (the “Funds”) at August 31, 2014, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2014


88		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^®, INC.

For corporate shareholders, 100.00% of the income dividends paid by the iShares MSCI USA ETF during the fiscal year ended August 31, 2014 qualified for the dividends-received deduction.

For the fiscal year ended August 31, 2014, certain Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders pursuant to Section 853 of the Internal Revenue Code (the “Code”) as follows:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Brazil Capped	$	202,559,475	$	15,126,259
MSCI Canada		94,825,644		13,237,727
MSCI Chile Capped		9,113,451		1,927,200
MSCI Colombia Capped		677,459		10,006
MSCI Israel Capped		3,091,527		592,434
MSCI Mexico Capped		55,498,026		612,833
MSCI South Africa		19,018,472		2,652,794
MSCI Turkey		12,374,665		1,652,304

Under Section 871(k)(2)(C) of the Code, the iShares MSCI Colombia Capped ETF hereby designates $24,565 as short-term capital gain dividends for the fiscal year ended August 31, 2014.


iShares ETF	Qualified Dividend Income
MSCI Brazil Capped	$	9,778,920
MSCI Canada		84,343,387
MSCI Colombia Capped		558,328
MSCI Israel Capped		2,607,852


iShares ETF	Qualified Dividend Income
MSCI Mexico Capped	$	42,117,324
MSCI South Africa		14,947,471
MSCI Turkey		10,355,695
MSCI USA		2,516,643


TAX INFORMATION			89

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI Brazil Capped ETF, iShares MSCI Chile Capped ETF, iShares MSCI Israel Capped ETF, iShares MSCI South Africa ETF and iShares MSCI Turkey ETF

The Board also noted that the investment advisory fee rates and overall expenses for iShares MSCI Israel Capped ETF, iShares MSCI South Africa ETF and iShares MSCI Turkey ETF were lower than the median of the investment advisory fee rates and


90		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

overall expenses of the funds in their respective Lipper Group, and the investment advisory fee rates and overall expenses for iShares MSCI Brazil Capped ETF and iShares MSCI Chile Capped ETF were at the median of the investment advisory fee rates and overall expenses of the funds in their respective Lipper Group.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			91

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rates reflects appropriate sharing of potential economies of scale with the Funds’ shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with substantially similar investment objectives and strategies as the Funds, except for iShares MSCI Israel Capped ETF. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


92		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

II. iShares MSCI Canada ETF and iShares MSCI Mexico Capped ETF


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			93

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


94		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			95

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with substantially similar investment objectives and strategies as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

III. iShares MSCI Colombia Capped ETF


96		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			97

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


98		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale exist in the future, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the investment advisory fee rate incorporates potential economies of scale and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			99

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

IV. iShares MSCI USA ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

The Board also noted that the investment advisory fee rate and overall expenses for the Fund were lower than the median of the investment advisory fee rates and overall expenses of the funds in its Lipper Group.


100		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			101

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board further noted management’s assertion that future economies of scale for the Fund had been taken into consideration by fixing the investment advisory fee rate at the low end of the market place, effectively giving Fund shareholders, from inception, the benefits of a lower fee. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the investment advisory fee rate incorporates potential economies of scale and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


102		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			103

Supplemental Information (Unaudited)

iSHARES^®, INC.

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	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
MSCI Brazil Capped	$	1.393764	$	—	$	0.156416	$	1.550180		90	%		—	%		10	%		100	%
MSCI Canada		0.552739		—		0.069719		0.622458		89			—			11			100
MSCI Colombia Capped		0.674415		—		—		0.674415		100			—			—			100
MSCI Israel Capped		0.876068		—		0.108215		0.984283		89			—			11			100
MSCI Mexico Capped		1.093145		—		—		1.093145		100			—			—			100
MSCI South Africa		1.543938		—		—		1.543938		100			—			—			100
MSCI USA		0.895585		—		0.007571		0.903156		99			—			1			100

Premium/Discount Information

The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five calendar years (or for each full calender quarter completed after the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.


104		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Brazil Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		4		0.29	%
Greater than 2.5% and Less than 3.0%		10		0.72
Greater than 2.0% and Less than 2.5%		31		2.25
Greater than 1.5% and Less than 2.0%		64		4.63
Greater than 1.0% and Less than 1.5%		98		7.09
Greater than 0.5% and Less than 1.0%		154		11.14
Between 0.5% and –0.5%		887		64.19
Less than –0.5% and Greater than –1.0%		103		7.46
Less than –1.0% and Greater than –1.5%		23		1.66
Less than –1.5% and Greater than –2.0%		5		0.36
Less than –2.0% and Greater than –2.5%		2		0.14
Less than –2.5%		1		0.07

		1,382		100.00	%

iShares MSCI Canada ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		2		0.14	%
Greater than 2.0% and Less than 2.5%		2		0.14
Greater than 1.5% and Less than 2.0%		2		0.14
Greater than 1.0% and Less than 1.5%		14		1.01
Greater than 0.5% and Less than 1.0%		77		5.58
Between 0.5% and –0.5%		1,193		86.33
Less than –0.5% and Greater than –1.0%		82		5.94
Less than –1.0% and Greater than –1.5%		8		0.58
Less than –1.5% and Greater than –2.0%		1		0.07
Less than –2.0% and Greater than –2.5%		1		0.07

		1,382		100.00	%


SUPPLEMENTAL INFORMATION			105

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Chile Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		4		0.29	%
Greater than 2.5% and Less than 3.0%		2		0.14
Greater than 2.0% and Less than 2.5%		3		0.22
Greater than 1.5% and Less than 2.0%		6		0.43
Greater than 1.0% and Less than 1.5%		32		2.32
Greater than 0.5% and Less than 1.0%		191		13.82
Between 0.5% and –0.5%		873		63.17
Less than –0.5% and Greater than –1.0%		223		16.14
Less than –1.0% and Greater than –1.5%		28		2.03
Less than –1.5% and Greater than –2.0%		13		0.94
Less than –2.0% and Greater than –2.5%		5		0.36
Less than –2.5%		2		0.14

		1,382		100.00	%

iShares MSCI Colombia Capped ETF

Period Covered: July 1, 2013 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.0% and Less than 2.5%		2		0.79	%
Greater than 1.5% and Less than 2.0%		8		3.17
Greater than 1.0% and Less than 1.5%		34		13.49
Greater than 0.5% and Less than 1.0%		79		31.35
Between 0.5% and –0.5%		125		49.61
Less than –0.5% and Greater than –1.0%		4		1.59

		252		100.00	%


106		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Israel Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		2		0.14	%
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		5		0.36
Greater than 2.0% and Less than 2.5%		10		0.72
Greater than 1.5% and Less than 2.0%		24		1.74
Greater than 1.0% and Less than 1.5%		69		4.99
Greater than 0.5% and Less than 1.0%		210		15.20
Between 0.5% and –0.5%		732		52.97
Less than –0.5% and Greater than –1.0%		185		13.39
Less than –1.0% and Greater than –1.5%		75		5.43
Less than –1.5% and Greater than –2.0%		40		2.90
Less than –2.0% and Greater than –2.5%		11		0.80
Less than –2.5% and Greater than –3.0%		10		0.72
Less than –3.0% and Greater than –3.5%		4		0.29
Less than –3.5% and Greater than –4.0%		2		0.14
Less than –4.0%		2		0.14

		1,382		100.00	%

iShares MSCI Mexico Capped ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		2		0.14	%
Greater than 2.0% and Less than 2.5%		3		0.22
Greater than 1.5% and Less than 2.0%		5		0.36
Greater than 1.0% and Less than 1.5%		27		1.95
Greater than 0.5% and Less than 1.0%		103		7.46
Between 0.5% and –0.5%		1,043		75.48
Less than –0.5% and Greater than –1.0%		148		10.71
Less than –1.0% and Greater than –1.5%		40		2.90
Less than –1.5% and Greater than –2.0%		6		0.43
Less than –2.0% and Greater than –2.5%		2		0.14
Less than –2.5% and Greater than –3.0%		2		0.14
Less than –3.0% and Greater than –3.5%		1		0.07

		1,382		100.00	%


SUPPLEMENTAL INFORMATION			107

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI South Africa ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		3		0.22	%
Greater than 4.0% and Less than 4.5%		2		0.14
Greater than 3.5% and Less than 4.0%		4		0.29
Greater than 3.0% and Less than 3.5%		8		0.58
Greater than 2.5% and Less than 3.0%		7		0.51
Greater than 2.0% and Less than 2.5%		24		1.74
Greater than 1.5% and Less than 2.0%		45		3.26
Greater than 1.0% and Less than 1.5%		117		8.46
Greater than 0.5% and Less than 1.0%		257		18.60
Between 0.5% and –0.5%		588		42.54
Less than –0.5% and Greater than –1.0%		164		11.86
Less than –1.0% and Greater than –1.5%		66		4.78
Less than –1.5% and Greater than –2.0%		49		3.55
Less than –2.0% and Greater than –2.5%		29		2.10
Less than –2.5% and Greater than –3.0%		3		0.22
Less than –3.0% and Greater than –3.5%		10		0.72
Less than –3.5% and Greater than –4.0%		4		0.29
Less than –4.0%		2		0.14

		1,382		100.00	%


108		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Turkey ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		1		0.07	%
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		11		0.80
Greater than 2.5% and Less than 3.0%		16		1.16
Greater than 2.0% and Less than 2.5%		20		1.45
Greater than 1.5% and Less than 2.0%		43		3.11
Greater than 1.0% and Less than 1.5%		115		8.32
Greater than 0.5% and Less than 1.0%		249		18.02
Between 0.5% and –0.5%		602		43.57
Less than –0.5% and Greater than –1.0%		151		10.93
Less than –1.0% and Greater than –1.5%		86		6.22
Less than –1.5% and Greater than –2.0%		37		2.68
Less than –2.0% and Greater than –2.5%		23		1.66
Less than –2.5% and Greater than –3.0%		13		0.94
Less than –3.0% and Greater than –3.5%		5		0.36
Less than –3.5% and Greater than –4.0%		2		0.14
Less than –4.0% and Greater than –4.5%		4		0.29
Less than –4.5% and Greater than –5.0%		1		0.07
Less than –5.0%		1		0.07

		1,382		100.00	%

iShares MSCI USA ETF

Period Covered: July 1, 2010 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.5%		1		0.10	%
Greater than 1.0% and Less than 1.5%		3		0.30
Greater than 0.5% and Less than 1.0%		7		0.70
Between 0.5% and –0.5%		983		97.71
Less than –0.5% and Greater than –1.0%		12		1.19

		1,006		100.00	%

Regulation under the Alternative Investment Fund Managers Directive


SUPPLEMENTAL INFORMATION			109

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

BFA has registered the iShares MSCI Brazil Capped ETF, iShares MSCI Canada ETF, iShares MSCI Mexico Capped ETF, and iShares MSCI USA ETF (each a “Fund”, collectively the “Funds”) for marketing to EU investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to both (a) the staff of BFA; and (b) staff who are senior management or who have the ability to materially affect the risk profile of the Funds.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to each Fund is included in the aggregate figures disclosed.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Brazil Capped ETF in respect of BFA’s financial year ending December 31, 2013 was USD 925,434. This figure is comprised of fixed remuneration of USD 363,876 and variable remuneration of USD 561,558. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Brazil Capped ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 148,678.


110		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Canada ETF in respect of BFA’s financial year ending December 31, 2013 was USD 689,165. This figure is comprised of fixed remuneration of USD 270,977 and variable remuneration of USD 418,188. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Canada ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 110,720.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Mexico Capped ETF in respect of BFA’s financial year ending December 31, 2013 was USD 565,663. This figure is comprised of fixed remuneration of USD 222,416 and variable remuneration of USD 343,247. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Mexico Capped ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 90,878.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI USA ETF in respect of BFA’s financial year ending December 31, 2013 was USD 14,049. This figure is comprised of fixed remuneration of USD 5,524 and variable remuneration of USD 8,525. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI USA ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 2,257.


SUPPLEMENTAL INFORMATION			111

Director and Officer Information

iSHARES^®, INC.

Interested Directors

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc.

Mark Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.


112		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert H. Silver (59)	Director (since 2007); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Independent Chairman of iShares, Trust, iShares MSCI Russia Capped ETF, Inc. and iShares U.S. ETF Trust (since 2012).

Cecilia H. Herbert (65)	Director (since 2005); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Forward Funds (34 portfolios) (since 2009).

Charles A. Hurty (70)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).

John E. Kerrigan (59)	Director (since 2005); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).


DIRECTOR AND OFFICER INFORMATION			113

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
John E. Martinez (53)	Director (since 2003); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).
George G.C. Parker (75)	Director (since 2002).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).

Madhav V. Rajan (50)	Director (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).


114		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (54)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (45)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2007).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (51)	Executive Vice President (since 2007).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2007).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


DIRECTOR AND OFFICER INFORMATION			115

Notes:


116		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			117

Notes:


118		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

LOGO

iS-AR-84-0814

AUGUST 31, 2014


2014 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI BRIC ETF | BKF | NYSE Arca

^Ø

iShares MSCI Emerging Markets Asia ETF | EEMA | NASDAQ

^Ø

iShares MSCI Emerging Markets Consumer Discretionary ETF | EMDI | NASDAQ

^Ø

iShares MSCI Emerging Markets Energy Capped ETF | EMEY | NASDAQ

^Ø

iShares MSCI Emerging Markets Growth ETF | EGRW | NASDAQ

^Ø

iShares MSCI Emerging Markets Minimum Volatility ETF | EEMV | NYSE Arca

^Ø

iShares MSCI Emerging Markets Small-Cap ETF | EEMS | NYSE Arca

^Ø

iShares MSCI Emerging Markets Value ETF | EVAL | NASDAQ

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			22
Shareholder Expenses			22
Consolidated Schedules of Investments			23
iShares MSCI BRIC ETF			23
iShares MSCI Emerging Markets Asia ETF			29
iShares MSCI Emerging Markets Consumer Discretionary ETF			37
iShares MSCI Emerging Markets Energy Capped ETF			39
iShares MSCI Emerging Markets Growth ETF			41
iShares MSCI Emerging Markets Minimum Volatility ETF			48
iShares MSCI Emerging Markets Small-Cap ETF			53
iShares MSCI Emerging Markets Value ETF			63
Consolidated Financial Statements			70
Consolidated Financial Highlights			80
Notes to Consolidated Financial Statements			88
Report of Independent Registered Public Accounting Firm			103
Tax Information			104
Board Review and Approval of Investment Advisory Contract			105
Supplemental Information			112
Director and Officer Information			119

Management’s Discussion of Fund Performance

iSHARES^®, INC.

EMERGING MARKETS OVERVIEW

Stocks of companies in emerging markets gained approximately 20% for the 12-month period ended August 31, 2014 (the “reporting period”). Emerging markets stocks experienced substantial volatility in the first six months of the reporting period, rising sharply during the first two months and then falling back over the ensuing three months. However, emerging markets stocks rallied steadily during the remainder of the reporting period.

Uncertainty regarding the pace of growth in many emerging economies helped contribute to the volatility in emerging markets stocks during the first half of the reporting period. Most notably, economic growth slowed in several bellwether emerging economies, including China, Brazil, and India. In contrast, many developed countries saw their economies strengthen as their central banks maintained or expanded accommodative monetary policies. Weaker economic activity contributed to the decline in emerging markets stocks in late 2013 and early 2014.

During the last six months of the reporting period, however, stocks in emerging markets benefited from greater investor demand. This was driven partly by improving economic growth in many emerging markets as central banks in developing countries began to implement economic stimulus efforts. Furthermore, better economic conditions in developed countries led to stronger demand for exports, and many emerging economies are major exporters to developed nations. These developments helped fuel a recovery in emerging markets stocks over the last half of the reporting period.

From a regional perspective, emerging equity markets in Latin America generated the best returns, gaining 24% for the reporting period. Brazil, the largest equity market in Latin America, led the region’s advance, gaining more than 30%. Much of those gains occurred in the last three months of the reporting period amid optimism about upcoming national elections. Peru, one of the worst-performing markets in 2013, rebounded strongly in the first eight months of 2014. Chile was the only market in the region to decline for the reporting period as economic growth slowed markedly.

Emerging markets in Asia also performed well, returning 22% for the reporting period. Although nearly every market in the region posted double-digit gains, India was the best performer, rising by more than 50% for the reporting period. A meaningful increase in economic activity and stronger corporate earnings growth propelled the Indian stock market to record highs by the end of the reporting period. Other top-performing markets in the region included the Philippines and Thailand. The laggards among emerging markets in Asia included South Korea and Malaysia.

In contrast to other regions, emerging markets stocks in Eastern Europe declined for the reporting period, falling by approximately 3%. Hungary was the weakest-performing market in the region, declining by more than 17% amid continued economic weakness and armed conflict between Russia and Ukraine, which shares a border with Hungary. Russia’s stock market, the largest in the region, also declined in response to these events. On the positive side, equity markets in Greece and the Czech Republic posted double-digit gains as the economies in both countries began to recover after an extended period of weakness.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI BRIC ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.73%		22.74%		22.80%		21.73%		22.74%		22.80%
5 Years		3.97%		4.10%		4.90%		21.51%		22.24%		26.99%
Since Inception		(2.75)%		(2.74)%		(2.30)%		(17.25)%		(17.23)%		(14.66)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 11/12/07. The first day of secondary market trading was 11/16/07.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,177.00	$	3.73	$	1,000.00	$	1,021.80	$	3.47		0.68%


6		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI BRIC ETF

The iShares MSCI BRIC ETF (the “Fund”) seeks to track the investment of an index composed of Chinese equities that are available to international investors, and Brazilian, Russian, and Indian equities, as represented by the MSCI BRIC Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 21.73%, net of fees, while the total return for the Index was 22.80%.

As represented by the Index, stocks in Brazil, Russia, India, and China advanced by approximately 23% for the reporting period, outpacing the gain of the broad emerging markets. Three of the four countries in the Index posted positive returns for the reporting period, led by India, which gained more than 50%. The Indian stock market finished the reporting period at an all-time high helped by strong economic growth and improved corporate earnings.

Brazil returned more than 30% for the reporting period, while China, the largest country weighting in the Index, gained 17%. Much of the advance in both markets occurred over the last few months of the reporting period as the Chinese equity market benefited from signs of improvement in the domestic economy and Brazilian stocks rallied amid optimism about upcoming national elections.

The only country in the Index to decline was Russia, which fell by 6% for the reporting period. Persistent weakness in the Russian economy and an armed conflict in neighboring Ukraine weighed on the country’s stock market.

Currency fluctuations relative to the U.S. dollar had a modestly positive impact on Index performance for the reporting period. A weaker U.S. dollar increases international equity returns for U.S. investors. The U.S. dollar was largely unchanged against the Chinese yuan, but it declined by 6% versus the Brazilian real and 8% against the Indian rupee for the reporting period. In contrast, the U.S. dollar appreciated by 11% versus the Russian ruble.

PORTFOLIO ALLOCATION As of 8/31/14


Sector	Percentage of Total Investments*
Financials		29.93	%
Energy		19.41
Information Technology		10.41
Consumer Staples		8.90
Telecommunication Services		7.58
Materials		7.13
Consumer Discretionary		5.14
Industrials		5.10
Utilities		3.86
Health Care		2.54

TOTAL		100.00	%

COUNTRY ALLOCATION As of 8/31/14


Country	Percentage of Total Investments*
China		45.32	%
Brazil		28.05
India		15.85
Russia		10.78

TOTAL		100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.54%		23.10%		21.79%		21.54%		23.10%		21.79%
Since Inception		7.02%		7.11%		7.40%		18.99%		19.25%		20.07%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,131.10	$	2.63	$	1,000.00	$	1,022.70	$	2.50		0.49%


8		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

The iShares MSCI Emerging Markets Asia ETF (the “Fund”) seeks to track the investment results of an index composed of Asian emerging market equities, as represented by the MSCI Emerging Markets Asia Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 21.54%, net of fees, while the total return for the Index was 21.79%.

As represented by the Index, emerging markets in Asia gained nearly 22% for the reporting period, outperforming the gain of the broad emerging markets. All of the countries represented in the Index generated positive returns for the reporting period, led by India (the fourth-largest country weighting in the Index during the reporting period), which gained more than 50%. The Indian stock market finished the reporting period at an all-time high helped by strong economic growth and improved corporate earnings.

Other top-performing markets within the Index included Taiwan (the third-largest country weighting in the Index), the Philippines, and Thailand, each of which gained more than 22% for the reporting period. China and South Korea, the two largest country weightings in the Index, were among the weakest-performing markets, though each gained approximately 17% for the reporting period.

Currency fluctuations relative to the U.S. dollar had a positive impact on Index performance for the reporting period. A weaker U.S. dollar increases international equity returns for U.S. investors. The U.S. dollar was largely unchanged against the Chinese yuan and Taiwan dollar, but it declined by approximately 8% versus both the Indian rupee and the South Korean won for the reporting period, as well as 4% against the Malaysian ringgit.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Information Technology	25.93	%
Financials	25.26
Consumer Discretionary	9.26
Industrials	7.45
Energy	7.36
Telecommunication Services	6.88
Materials	6.50
Consumer Staples	6.16
Utilities	3.16
Health Care	2.04

TOTAL	100.00	%

COUNTRY ALLOCATION

As of 8/31/14


Country		Percentage of Total Investments*


China	30.51	%
South Korea	24.21
Taiwan	19.06
India	10.65
Malaysia	6.09
Indonesia	4.06
Thailand	3.63
Philippines	1.79

TOTAL	100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS CONSUMER DISCRETIONARY ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.16%		24.80%		24.04%		23.16%		24.80%		24.04%
Since Inception		7.95%		8.30%		8.78%		21.66%		22.66%		24.05%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,113.00	$	3.62	$	1,000.00	$	1,021.80	$	3.47		0.68%


10		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS CONSUMER DISCRETIONARY ETF

The iShares MSCI Emerging Markets Consumer Discretionary ETF (the “Fund”) seeks to track the investment results of an index composed of emerging market equities in the consumer discretionary sector, as represented by the MSCI Emerging Markets Consumer Discretionary Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 23.16%, net of fees, while the total return for the Index was 24.04%.

As represented by the Index, consumer discretionary stocks in emerging market countries gained approximately 24% for the reporting period, outperforming the gain of the broad emerging markets. Emerging economies are driven primarily by exports to developed countries, but many emerging markets are also seeing a domestic consumption increase due to greater consumer spending from a rapidly growing middle class. This trend aided consumer discretionary stocks in emerging markets during the reporting period.

All but one of the 15 countries represented in the Index generated positive returns for the reporting period, led by India, Brazil, and Mexico, which produced gains of 72%, 48%, and 44%, respectively. South Africa, the second-largest country weighting in the Index during the period, also gained more than 40% for the reporting period.

The only country to decline within the Index was Chile, which fell sharply during the reporting period. Weaker economic growth, including a meaningful drop in consumer spending, contributed to the large decline in Chilean consumer discretionary stocks.

Currency fluctuations relative to the U.S. dollar had a positive impact on Index performance for the reporting period. A weaker U.S. dollar increases international equity returns for U.S. investors. Although the U.S. dollar appreciated by 4% against the South African rand for the reporting period, it declined by 6% versus the Brazilian real and 8% against both the Indian rupee and the South Korean won.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Automobiles & Components	40.00	%
Media	20.52
Retailing	17.69
Consumer Durables & Apparel	11.02
Consumer Services	10.77

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 8/31/14


Country		Percentage of Total Investments*


South Korea	30.80	%
South Africa	20.08
China	11.15
Brazil	7.11
Mexico	5.42
Indonesia	4.99
Taiwan	4.90
India	4.90
Malaysia	3.86
Chile	1.86

TOTAL	95.07	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS ENERGY CAPPED ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.65%		12.42%		12.19%		11.65%		12.42%		12.19%
Since Inception		(7.14)%		(7.24)%		(6.59)%		(17.29)%		(17.52)%		(16.02)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,157.80	$	3.70	$	1,000.00	$	1,021.80	$	3.47		0.68%


12		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS ENERGY CAPPED ETF

The iShares MSCI Emerging Markets Energy Capped ETF (the “Fund”) seeks to track the investment results of an index composed of emerging market equities in the energy sector, as represented by the MSCI Emerging Markets Energy 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 11.65%, net of fees, while the total return for the Index was 12.19%.

As represented by the Index, energy stocks in emerging market countries advanced by approximately 12% for the reporting period, trailing the gain of the broad emerging markets. One factor behind the underperformance of energy stocks in emerging markets was an abundance of supply, which had a negative impact on global energy prices. Energy production increased around the globe during the reporting period, driven by a shale oil and gas boom in the United States (in particular, domestic natural gas production increased in each of the last eight months of the reporting period), increased offshore drilling in Asia and South America, and growth in alternative energy sources such as wind and solar.

Another contributing factor was reduced demand for energy exports from emerging markets. Two of the primary export centers for energy from emerging markets are the U.S. and Europe. However, increased domestic energy production curtailed demand for foreign energy in the United States, while subdued economic growth dampened energy demand in Europe. Furthermore, major energy consumers among emerging economies, including Russia and Brazil, experienced weaker economic growth during the reporting period.

Currency fluctuations relative to the U.S. dollar also weighed on Index performance. A stronger U.S. dollar lowers international equity returns for U.S. investors. The U.S. dollar appreciated by 11% against the Russian ruble, 4% against the South African rand, and 1% against the Chinese yuan for the reporting period. Together, these three countries comprised more than half of the Index as of the end of the reporting period.

PORTFOLIO ALLOCATION As of 8/31/14


Sector		Percentage of Total Investments*


Integrated Oil & Gas	53.50	%
Oil & Gas Exploration & Production	16.06
Oil & Gas Refining & Marketing	15.57
Coal & Consumable Fuels	8.27
Oil & Gas Storage & Transportation	3.35
Oil & Gas Equipment & Services	1.75
Oil & Gas Drilling	1.50

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS As of 8/31/14


Country		Percentage of Total Investments*


Russia	23.49	%
China	22.77
Brazil	16.90
India	9.00
South Africa	6.67
Thailand	5.57
South Korea	2.98
Poland	2.39
Malaysia	2.37
Colombia	2.18

TOTAL	94.32	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS GROWTH ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.36%		17.28%		20.16%		19.36%		17.28%		20.16%
Since Inception		5.35%		5.20%		6.11%		14.29%		13.87%		16.39%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,112.70	$	2.61	$	1,000.00	$	1,022.70	$	2.50		0.49%


14		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS GROWTH ETF

The iShares MSCI Emerging Markets Growth ETF (the “Fund”) seeks to track the investment results of an index composed of emerging market equities that exhibit growth characteristics, as represented by the MSCI Emerging Markets Growth Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 19.36%, net of fees, while the total return for the Index was 20.16%.

As represented by the Index, growth stocks in emerging market countries advanced by just over 20% for the reporting period, narrowly outperforming the return of the broad emerging markets. Of the 25 countries represented in the Index, 19 generated positive returns for the reporting period, including the three largest countries: China, South Korea, and Taiwan, which together comprised approximately 47% of the Index on average during the reporting period. The major markets with the strongest performance within the Index included India, Brazil, and South Africa, where growth stocks produced returns of 49%, 35%, and 30%, respectively, for the reporting period.

Among the declining countries in the Index, Hungary was the weakest performer, falling substantially for the reporting period. Persistent weakness in the Hungarian economy weighed on growth stocks in the country. Russia and Chile were also notable decliners within the Index.

Currency fluctuations relative to the U.S. dollar had a modestly positive impact on Index performance for the reporting period. A weaker U.S. dollar increases international equity returns for U.S. investors. The U.S. dollar was largely unchanged against the Chinese yuan and Taiwan dollar, but it declined by 6% versus the Brazilian real and 8.5% against the South Korean won for the reporting period.

PORTFOLIO ALLOCATION As of 8/31/14


Sector	Percentage of Total Investments*
Information Technology		23.96	%
Financials		21.98
Consumer Staples		13.74
Consumer Discretionary		10.96
Industrials		7.23
Materials		5.80
Energy		4.95
Telecommunication Services		4.69
Health Care		3.47
Utilities		3.22

TOTAL		100.00	%

TEN LARGEST COUNTRY ALLOCATIONS As of 8/31/14


Country	Percentage of Total Investments*
China		19.15	%
South Korea		15.45
Brazil		11.99
Taiwan		11.55
South Africa		7.73
India		6.54
Mexico		5.24
Russia		4.65
Malaysia		3.66
Indonesia		2.56

TOTAL		88.52	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS MINIMUM VOLATILITY ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.44%		16.73%		15.63%		15.44%		16.73%		15.63%
Since Inception		11.27%		11.34%		11.54%		35.89%		36.14%		36.79%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 10/18/11. The first day of secondary market trading was 10/20/11.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,133.30	$	1.34	$	1,000.00	$	1,023.90	$	1.28		0.25%


16		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS MINIMUM VOLATILITY ETF

The iShares MSCI Emerging Markets Minimum Volatility ETF (the “Fund”) seeks to track the investment results of an index composed of emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader emerging equity markets, as represented by the MSCI Emerging Markets Minimum Volatility (USD) Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 15.44%, net of fees, while the total return for the Index was 15.63%.

As represented by the Index, lower-volatility stocks in emerging market countries advanced by more than 15% for the reporting period but trailed the gain of the broad emerging markets. Of the 22 countries represented in the Index, 17 generated positive returns for the reporting period, including the three largest countries: China, Taiwan, and South Korea, which together comprised more than 45% of the Index on average during the reporting period. The major markets with the strongest performance within the Index included India, Korea, and Thailand, where lower-volatility stocks produced returns of 50%, 39%, and 31%, respectively, for the reporting period.

The five countries within the Index which declined during the reporting period had relatively small weights in the Index: Poland, the United Arab Emirates, Qatar, Morocco, and Russia. Collectively, these five countries comprised less than 3% of the Index on average during the reporting period.

Currency fluctuations relative to the U.S. dollar had a modestly positive impact on Index performance for the reporting period. A weaker U.S. dollar increases international equity returns for U.S. investors. The U.S. dollar was largely unchanged against the Chinese yuan and Taiwan dollar, but it declined by 4% versus the Malaysian ringgit and 8% against the South Korean won for the reporting period.

PORTFOLIO ALLOCATION As of 8/31/14


Sector		Percentage of Total Investments*


Financials	26.42	%
Consumer Staples	13.37
Telecommunication Services	13.16
Information Technology	12.36
Utilities	8.22
Health Care	7.25
Industrials	6.53
Energy	5.38
Consumer Discretionary	3.90
Materials	3.41

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS As of 8/31/14


Country		Percentage of Total Investments*


China	20.60	%
Taiwan	16.29
South Korea	12.00
Malaysia	8.58
South Africa	7.03
Brazil	5.90
Philippines	4.54
Indonesia	4.33
Chile	4.24
Colombia	3.04

TOTAL	86.55	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			17

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.92%		21.48%		21.14%		19.92%		21.48%		21.14%
Since Inception		3.51%		3.63%		4.35%		11.08%		11.46%		13.83%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 8/16/11. The first day of secondary market trading was 8/18/11.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,096.00	$	3.59	$	1,000.00	$	1,021.80	$	3.47		0.68%


18		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

The iShares MSCI Emerging Markets Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization emerging market equities, as represented by the MSCI Emerging Markets Small Cap Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 19.92%, net of fees, while the total return for the Index was 21.14%.

As represented by the Index, small-capitalization stocks in emerging market countries advanced by approximately 21% for the reporting period, slightly outperforming the gain for the broad emerging markets. Of the 25 countries represented in the Index, 20 generated positive returns for the reporting period, including the three largest countries: Taiwan, South Korea, and China, which together comprised over 55% of the Index on average during the reporting period. The major markets with the strongest performance within the Index included India and Thailand, where small-capitalization stocks produced returns of 104% and 39%, respectively, for the reporting period.

Among the countries which declined in the Index, Russia was the weakest performer, declining by 17% for the reporting period. Persistent weakness in the Russian economy and an armed conflict in neighboring Ukraine weighed on small-capitalization stocks in the country. Chile and the Czech Republic also detracted from Index performance.

Currency fluctuations relative to the U.S. dollar had a modestly positive impact on Index performance for the reporting period. A weaker U.S. dollar increases international equity returns for U.S. investors. The U.S. dollar was largely unchanged against the Chinese yuan and Taiwan dollar, but it declined by 8% versus both the Indian rupee and the South Korean won for the reporting period.

PORTFOLIO ALLOCATION As of 8/31/14


Sector	Percentage of Total Investments*
Financials		19.45	%
Information Technology		17.44
Consumer Discretionary		17.28
Industrials		14.51
Materials		11.91
Consumer Staples		6.92
Health Care		4.71
Utilities		3.32
Energy		2.65
Telecommunication Services		1.81

TOTAL		100.00	%

TEN LARGEST COUNTRY ALLOCATIONS As of 8/31/14


Country	Percentage of Total Investments*
Taiwan		19.91	%
China		19.08
South Korea		16.88
South Africa		7.28
India		6.57
Brazil		5.82
Malaysia		4.76
Thailand		4.26
Indonesia		3.57
Mexico		2.66

TOTAL		90.79	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			19

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS VALUE ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.20%		20.62%		19.77%		19.20%		20.62%		19.77%
Since Inception		0.96%		2.07%		1.41%		2.49%		5.38%		3.64%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,168.20	$	2.68	$	1,000.00	$	1,022.70	$	2.50		0.49%


20		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS VALUE ETF

The iShares MSCI Emerging Markets Value ETF (the “Fund”) seeks to track the investment results of an index composed of emerging market equities that exhibit value characteristics, as represented by the MSCI Emerging Markets Value Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 19.20%, net of fees, while the total return for the Index was 19.77%.

As represented by the Index, value stocks in emerging market countries advanced by nearly 20% for the reporting period, narrowly trailing the return of the broad emerging markets. Of the 24 countries represented in the Index, 20 generated positive returns for the reporting period, including the three largest countries: China, South Korea, and Taiwan, which together comprised more than 45% of the Index on average during the reporting period. The markets which provided the strongest performance within the Index included India and Brazil, where value stocks produced returns of 56% and 30%, respectively, for the reporting period.

Among the countries to decline in the Index, Qatar and the United Arab Emirates — newly added to the Index during the reporting period — detracted the most. Lower energy prices and political instability in the Middle East contributed to the decline in value stocks in these two countries. Russia and Hungary were the other two countries in the Index to post negative returns for the reporting period.

Currency fluctuations relative to the U.S. dollar had a modestly positive impact on Index performance for the reporting period. A weaker U.S. dollar increases international equity returns for U.S. investors. The U.S. dollar was largely unchanged against the Chinese yuan and Taiwan dollar, but it declined by 6% versus the Brazilian real and 8.5% against the South Korean won for the reporting period.

PORTFOLIO ALLOCATION As of 8/31/14


Sector		Percentage of Total Investments*


Financials	32.84	%
Energy	16.13
Materials	11.13
Telecommunication Services	10.19
Information Technology	9.16
Consumer Discretionary	7.55
Industrials	5.84
Utilities	3.80
Consumer Staples	3.05
Health Care	0.31

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS As of 8/31/14


Country		Percentage of Total Investments*


China	19.08	%
South Korea	14.99
Taiwan	12.11
Brazil	11.69
South Africa	7.26
India	6.79
Mexico	5.34
Russia	4.48
Malaysia	3.88
Indonesia	2.54

TOTAL	88.16	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			21

About Fund Performance

Shareholder Expenses

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 expense example, which is based on an investment of $1,000 invested on March 1, 2014 and held through August 31, 2014, 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.

Actual Expenses — The table provides information about actual account values and actual expenses. To estimate the expenses that you paid on your account 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 for your Fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also 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. 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.


22		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI BRIC ETF

August 31, 2014


Security	Shares		Value
COMMON STOCKS — 87.45%

BRAZIL — 16.26%
ALL – America Latina Logistica SA		100,000	$	368,707
AMBEV SA		1,080,365		7,870,193
B2W Companhia Global do Varejo^a		40,000		677,527
Banco Bradesco SA		160,090		2,863,312
Banco do Brasil SA		200,089		3,128,920
Banco Santander (Brasil) SA Units		223,337		1,543,112
BB Seguridade Participacoes SA		162,600		2,597,182
BM&F Bovespa SA		440,069		2,655,106
BR Malls Participacoes SA		100,000		1,039,977
BR Properties SA		40,000		266,363
BRF SA		160,000		4,283,256
CCR SA		200,000		1,810,909
Centrais Eletricas Brasileiras SA		80,400		292,847
CETIP SA – Mercados Organizados		40,547		591,656
Cielo SA		160,168		3,003,575
Companhia de Saneamento Basico do Estado de Sao Paulo		80,000		764,765
Companhia de Saneamento de Minas Gerais SA		20,000		357,534
Companhia Siderurgica Nacional SA		160,000		702,197
Cosan SA Industria e Comercio		40,000		831,266
CPFL Energia SA		60,000		605,752
Cyrela Brazil Realty SA Empreendimentos e Participacoes		60,000		380,505
Duratex SA		66,448		299,046
EcoRodovias Infraestrutura e Logistica SA		40,000		255,637
EDP Energias do Brasil SA		60,000		303,010
Embraer SA		160,000		1,559,563
Estacio Participacoes SA		80,000		1,062,948
Fibria Celulose SA^a		60,041		624,681
Hypermarcas SA^a		80,000		695,761
JBS SA		180,052		814,340
Klabin SA		120,000		609,774


Security	Shares		Value
Kroton Educacional SA		70,366	$	2,108,574
Localiza Rent A Car SA		40,060		713,455
Lojas Americanas SA		25,300		146,991
Lojas Renner SA		20,000		684,856
Multiplan Empreendimentos Imobiliarios SA		20,000		515,832
Natura Cosmeticos SA		40,000		733,123
Odontoprev SA		60,000		261,715
Petroleo Brasileiro SA		680,000		6,728,431
Porto Seguro SA		20,000		296,574
Qualicorp SA^a		40,000		500,547
Raia Drogasil SA		60,050		585,055
Souza Cruz SA		100,000		936,739
Sul America SA Units		40,072		277,050
TIM Participacoes SA		200,069		1,122,150
Totvs SA		20,000		365,221
Tractebel Energia SA		40,000		670,555
Transmissora Alianca de Energia Eletrica SA		20,600		214,880
Ultrapar Participacoes SA		80,000		2,062,613
Vale SA		300,000		3,904,270
Via Varejo SA^a		21,300		237,983
WEG SA		72,720		909,670

				66,835,705
CHINA — 45.21%
AAC Technologies Holdings Inc.^b		200,000		1,304,491
Agile Property Holdings Ltd.		400,000		313,800
Agricultural Bank of China Ltd. Class H		4,800,000		2,217,247
Air China Ltd. Class H		408,000		252,692
Alibaba Pictures Group Ltd.^a		1,890,000		392,625
Aluminum Corp. of China Ltd. Class H^a,b		800,000		339,606
Anhui Conch Cement Co. Ltd. Class H^b		300,000		1,083,850
Anta Sports Products Ltd.		200,040		384,069
Bank of China Ltd. Class H		18,000,000		8,361,129
Bank of Communications Co. Ltd. Class H		2,004,200		1,463,684
BBMG Corp. Class H		300,000		223,738
Beijing Capital International Airport Co. Ltd. Class H		400,000		312,768
Beijing Enterprises Holdings Ltd.		100,000		861,919


CONSOLIDATED SCHEDULES OF INVESTMENTS			23

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2014


Security	Shares		Value
Beijing Enterprises Water Group Ltd.		1,200,000	$	817,533
Belle International Holdings Ltd.		1,000,000		1,278,685
Biostime International Holdings Ltd.		56,500		211,051
Brilliance China Automotive Holdings Ltd.		800,000		1,482,294
BYD Co. Ltd. Class H^b		100,000		710,309
China Agri-Industries Holdings Ltd.		415,800		170,072
China BlueChemical Ltd. Class H		400,000		197,157
China Cinda Asset Management Co. Ltd.^a,b		1,000,000		512,248
China CITIC Bank Corp. Ltd. Class H		1,800,000		1,135,720
China Coal Energy Co. Class H^b		800,000		487,216
China Communications Construction Co. Ltd. Class H		1,000,000		729,018
China Communications Services Corp. Ltd. Class H		400,800		193,415
China Construction Bank Corp. Class H		16,200,370		12,040,300
China COSCO Holdings Co. Ltd. Class H^a,b		600,000		258,576
China Everbright Bank Co. Ltd.		426,000		198,979
China Everbright International Ltd.^b		600,000		822,178
China Everbright Ltd.		400,000		758,695
China Gas Holdings Ltd.		400,000		712,244
China Huishan Dairy Holdings Co. Ltd.^a,b		1,278,000		296,820
China International Marine Containers (Group) Co. Ltd. Class H		120,000		258,266
China Life Insurance Co. Ltd. Class H		1,600,000		4,593,459
China Longyuan Power Group Corp. Ltd. Class H		600,000		648,762
China Mengniu Dairy Co. Ltd.		200,000		927,724
China Merchants Bank Co. Ltd. Class H		1,078,456		2,062,246
China Merchants Holdings (International) Co. Ltd.		400,000		1,326,426
China Minsheng Banking Corp. Ltd. Class H		1,439,000		1,351,705


Security	Shares		Value
China Mobile Ltd.		1,400,000	$	17,413,857
China National Building Material Co. Ltd. Class H		800,000		734,954
China Oilfield Services Ltd. Class H		410,000		1,214,106
China Overseas Land & Investment Ltd.		800,800		2,252,529
China Pacific Insurance (Group) Co. Ltd. Class H		600,000		2,252,860
China Petroleum & Chemical Corp. Class H		5,806,600		5,888,902
China Railway Construction Corp. Ltd. Class H		400,000		382,960
China Railway Group Ltd. Class H		800,000		413,927
China Resources Cement Holdings Ltd.^b		400,000		275,091
China Resources Enterprise Ltd.		400,000		1,076,108
China Resources Gas Group Ltd.		211,000		613,930
China Resources Land Ltd.		400,000		915,595
China Resources Power Holdings Co. Ltd.^b		400,200		1,210,904
China Shenhua Energy Co. Ltd. Class H		800,000		2,307,052
China Shipping Container Lines Co. Ltd. Class H^a		800,000		228,125
China State Construction International Holdings Ltd.		400,000		645,149
China Taiping Insurance Holdings Co. Ltd.^a,b		200,000		486,700
China Telecom Corp. Ltd. Class H		3,200,000		1,977,768
China Unicom (Hong Kong) Ltd.		1,077,900		1,922,102
China Vanke Co. Ltd.^a		314,301		588,847
Chongqing Changan Automobile Co. Ltd.		200,000		412,895
Chongqing Rural Commercial Bank Co. Ltd. Class H		600,000		298,059
CITIC 21CN Co. Ltd.^a		826,000		650,129
CITIC Pacific Ltd.^b		403,000		784,145
CITIC Securities Co. Ltd. Class H		200,000		474,830
CNOOC Ltd.		4,000,000		8,041,135
COSCO Pacific Ltd.		400,000		560,505


24		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2014


Security	Shares		Value
Country Garden Holdings Co. Ltd.		1,000,356	$	444,020
CSPC Pharmaceutical Group Ltd.		400,000		334,445
CSR Corp Ltd. Class H		403,000		363,473
Datang International Power Generation Co. Ltd. Class H		800,000		443,862
Dongfeng Motor Group Co. Ltd. Class H		800,000		1,482,294
ENN Energy Holdings Ltd.		124,000		875,983
Evergrande Real Estate Group Ltd.^b		1,400,000		585,279
Far East Horizon Ltd.		400,000		322,574
Fosun International Ltd.^b		400,000		491,345
Franshion Properties (China) Ltd.^b		800,000		216,770
GCL-Poly Energy Holdings Ltd.^a,b		2,400,000		863,983
Geely Automobile Holdings Ltd.		1,000,000		383,218
Golden Eagle Retail Group Ltd.^b		200,000		245,931
GOME Electrical Appliances Holdings Ltd.		2,400,400		427,418
Great Wall Motor Co. Ltd. Class H		255,500		1,084,618
Guangdong Investment Ltd.		400,000		483,604
Guangzhou Automobile Group Co. Ltd. Class H		326,454		339,506
Guangzhou R&F Properties Co. Ltd. Class H		240,000		289,233
Haier Electronics Group Co. Ltd.^b		230,000		664,761
Haitian International Holdings Ltd.		200,000		521,280
Haitong Securities Co. Ltd. Class H		320,000		511,164
Hanergy Solar Group Ltd.^a,b		2,544,000		416,880
Hengan International Group Co. Ltd.		200,000		2,132,862
Huaneng Power International Inc. Class H		800,000		962,046
Industrial and Commercial Bank of China Ltd. Class H		16,603,050		11,011,358
Inner Mongolia Yitai Coal Co. Ltd. Class B		240,970		406,998
Intime Retail Group Co. Ltd.^b		200,000		181,932


Security	Shares		Value
Jiangsu Expressway Co. Ltd. Class H		400,000	$	455,733
Jiangxi Copper Co. Ltd. Class H		400,000		707,083
Kingboard Chemical Holdings Co. Ltd.		100,100		207,946
Kingsoft Corp. Ltd.		200,000		572,892
Kunlun Energy Co. Ltd.		800,000		1,321,265
Lee & Man Paper Manufacturing Ltd.		400,000		235,350
Lenovo Group Ltd.^b		1,600,000		2,444,340
Longfor Properties Co. Ltd.		300,000		383,218
New China Life Insurance Co. Ltd. Class H		180,000		642,181
New World China Land Ltd.		400,000		245,157
Nine Dragons Paper (Holdings) Ltd.^b		400,000		312,252
People’s Insurance Co. Group of China Ltd. Class H		1,200,000		501,668
PetroChina Co. Ltd. Class H		4,800,000		6,812,771
PICC Property and Casualty Co. Ltd. Class H		801,200		1,329,449
Ping An Insurance (Group) Co. of China Ltd. Class H		475,500		3,871,415
Poly Property Group Co. Ltd.		408,984		177,839
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		608,000		615,833
Shanghai Electric Group Co. Ltd. Class H		400,000		175,480
Shanghai Fosun Pharmaceutical (Group) Co. Ltd.		106,500		346,290
Shanghai Industrial Holdings Ltd.		200,000		667,084
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		160,000		328,252
Shenzhou International Group Holdings Ltd.		200,000		623,214
Shimao Property Holdings Ltd.		300,000		660,374
Shui On Land Ltd.		900,333		235,825
Sihuan Pharmaceutical Holdings Group Ltd.		1,008,000		675,022
Sino Biopharmaceutical Ltd.		800,000		737,018
Sino-Ocean Land Holdings Ltd.		700,000		395,605
Sinopec Engineering Group Co. Ltd.		200,000		228,125


CONSOLIDATED SCHEDULES OF INVESTMENTS			25

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2014


Security	Shares		Value
Sinopec Shanghai Petrochemical Co. Ltd. Class H		671,000	$	224,240
Sinopharm Group Co. Ltd. Class H		240,000		837,661
SOHO China Ltd.		500,000		409,024
Sun Art Retail Group Ltd.^b		500,000		596,763
Tencent Holdings Ltd.		1,174,100		19,163,971
Tingyi (Cayman Islands) Holding Corp.		400,000		1,122,559
Tsingtao Brewery Co. Ltd. Class H		40,000		303,736
Uni-President China Holdings Ltd.^b		242,400		218,938
Want Want China Holdings Ltd.^b		1,400,000		1,735,966
Weichai Power Co. Ltd. Class H		111,775		452,860
Yanzhou Coal Mining Co. Ltd. Class H		400,000		338,574
Yingde Gases Group Co. Ltd.^b		283,500		303,248
Yuexiu Property Co. Ltd.^b		1,224,000		262,168
Zhejiang Expressway Co. Ltd. Class H		400,000		397,928
Zhongsheng Group Holdings Ltd.		100,000		110,837
Zhuzhou CSR Times Electric Co. Ltd. Class H		100,000		346,445
Zijin Mining Group Co. Ltd. Class H		1,601,000		417,285
Zoomlion Heavy Industry Science and Technology Co. Ltd. Class H		280,000		174,500
ZTE Corp. Class H^b		160,040		360,548

				185,888,649
INDIA — 15.81%
ACC Ltd.		5,200		127,905
Adani Enterprises Ltd.		29,782		235,046
Adani Ports & Special Economic Zone Ltd.		114,096		531,840
Aditya Birla Nuvo Ltd.		7,800		186,876
Ambuja Cements Ltd.		151,800		516,090
Apollo Hospitals Enterprise Ltd.		18,000		348,016
Asian Paints Ltd.		69,000		709,786
Aurobindo Pharma Ltd.		31,746		427,718
Bajaj Auto Ltd.		19,000		707,240


Security	Shares		Value
Bharat Heavy Electricals Ltd.		131,400	$	521,659
Bharat Petroleum Corp. Ltd.		39,800		455,391
Bharti Airtel Ltd.		138,600		844,665
Cairn India Ltd.		106,600		573,142
Cipla Ltd.		78,800		667,748
Coal India Ltd.		116,000		680,745
Dabur India Ltd.		61,808		236,924
Divi’s Laboratories Ltd.		9,800		252,712
DLF Ltd.		98,800		288,682
Dr. Reddy’s Laboratories Ltd.		26,504		1,287,593
GAIL (India) Ltd.		77,400		565,576
GlaxoSmithKline Consumer Healthcare Ltd.		2,400		210,914
Godrej Consumer Products Ltd.		28,600		464,703
HCL Technologies Ltd.		56,400		1,515,727
HDFC Bank Ltd.		84,122		1,169,432
Hero Motocorp Ltd.		18,400		789,854
Hindalco Industries Ltd.		250,201		701,371
Hindustan Unilever Ltd.		170,871		2,090,692
Housing Development Finance Corp. Ltd.		335,200		5,935,603
ICICI Bank Ltd.		50,200		1,287,926
Idea Cellular Ltd.		234,400		625,401
Infosys Ltd.		104,600		6,203,601
ITC Ltd.		505,000		2,956,930
Jaiprakash Associates Ltd.		235,200		180,237
Jindal Steel & Power Ltd.		80,800		310,257
JSW Steel Ltd.		19,000		389,394
Larsen & Toubro Ltd.		72,405		1,821,461
LIC Housing Finance Ltd.		66,200		330,182
Mahindra & Mahindra Financial Services Ltd.		59,489		273,818
Mahindra & Mahindra Ltd.		74,600		1,730,012
Nestle India Ltd.		5,094		506,088
NTPC Ltd.		366,970		830,944
Oil & Natural Gas Corp. Ltd.		175,800		1,260,267
Oil India Ltd.		27,200		275,855
Piramal Enterprises Ltd.		17,600		199,885
Power Finance Corp. Ltd.		59,583		245,579
Power Grid Corp. of India Ltd.		176,400		375,591
Ranbaxy Laboratories Ltd.^a		29,000		306,201
Reliance Capital Ltd.		21,815		190,108
Reliance Communications Ltd.		177,600		339,512
Reliance Industries Ltd.		294,000		4,838,790
Reliance Infrastructure Ltd.		25,400		292,719


26		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2014


Security	Shares		Value
Reliance Power Ltd.^a		135,401	$	166,350
Rural Electrification Corp. Ltd.		65,209		288,379
Sesa Sterlite Ltd.		269,319		1,230,088
Shriram Transport Finance Co. Ltd.		33,049		492,440
Siemens Ltd.		16,403		214,715
State Bank of India		32,693		1,325,769
Sun Pharmaceuticals Industries Ltd.		163,815		2,308,879
Tata Consultancy Services Ltd.		106,800		4,439,469
Tata Motors Ltd.		171,600		1,484,815
Tata Power Co. Ltd.		277,507		396,047
Tata Steel Ltd.		67,401		569,987
Tech Mahindra Ltd.		13,200		514,034
Ultratech Cement Ltd.		9,001		378,263
United Breweries Ltd.		14,800		172,500
United Spirits Ltd.		16,100		636,266
Wipro Ltd.		142,000		1,322,767
Yes Bank Ltd.		27,000		254,538

				65,009,714
RUSSIA — 10.17%
Alrosa AO		384,000		450,032
Gazprom OAO		2,706,008		9,642,389
LUKOIL OAO		116,600		6,490,815
Magnit OJSC SP GDR^c		59,804		3,480,593
MegaFon OAO SP GDR^c		22,800		645,240
MMC Norilsk Nickel OJSC		12,604		2,480,244
Mobile TeleSystems OJSC SP ADR		123,000		2,269,350
Moscow Exchange MICEX-RTS OJSC		244,000		409,564
NovaTek OAO SP GDR^c		21,000		2,112,600
Rosneft Oil Co. OJSC		266,042		1,641,220
Rostelecom OJSC		186,640		496,442
RusHydro OJSC		26,200,200		485,906
Sberbank of Russia		2,315,330		4,556,160
Severstal OAO		46,000		442,740
Sistema JSFC SP GDR^c		39,600		900,900
Surgutneftegas OJSC		1,580,020		1,107,538
Tatneft OAO Class S		324,003		2,009,440
Uralkali OJSC		308,000		1,137,528
VTB Bank OJSC		1,045,176,001		1,076,686

				41,835,387

TOTAL COMMON STOCKS
(Cost: $338,317,110)				359,569,455


Security	Shares		Value
PREFERRED STOCKS — 12.31%

BRAZIL — 11.73%
AES Tiete SA		20,000	$	179,839
Banco Bradesco SA		460,008		8,396,115
Banco do Estado do Rio Grande do Sul SA Class B		40,000		276,195
Bradespar SA		60,000		548,368
Braskem SA Class A		40,000		272,620
Centrais Eletricas Brasileiras SA Class B		40,082		221,230
Companhia Brasileira de Distribuicao		20,056		1,021,108
Companhia Energetica de Minas Gerais		164,232		1,406,308
Companhia Energetica de Sao Paulo Class B		40,000		566,512
Companhia Paranaense de Energia Class B		20,000		354,495
Gerdau SA		200,000		1,158,410
Itau Unibanco Holding SA		637,627		11,501,252
Itausa-Investimentos Itau SA		740,385		3,606,711
Lojas Americanas SA		125,388		887,640
Metalurgica Gerdau SA		60,000		425,286
Oi SA		620,099		401,843
Petroleo Brasileiro SA		960,014		10,018,246
Suzano Papel e Celulose SA Class A		80,000		318,563
Telefonica Brasil SA		60,064		1,284,468
Usinas Siderurgicas de Minas Gerais SA Class A		80,000		288,887
Vale SA Class A		440,000		5,106,836

				48,240,932
RUSSIA — 0.58%
AK Transneft OAO		400		879,980
Sberbank of Russia		207,930		310,059
Surgutneftegas OJSC		1,620,000		1,192,253

				2,382,292

TOTAL PREFERRED STOCKS
(Cost: $45,031,238)				50,623,224


CONSOLIDATED SCHEDULES OF INVESTMENTS			27

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2014


Security	Shares		Value
SHORT-TERM INVESTMENTS — 2.74%

MONEY MARKET FUNDS — 2.74%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^d,e,f		10,298,252	$	10,298,252
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		648,303		648,303
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^d,e		299,256		299,256

				11,245,811

TOTAL SHORT-TERM INVESTMENTS
(Cost: $11,245,811)				11,245,811

TOTAL INVESTMENTS IN SECURITIES — 102.50%
(Cost: $394,594,159)				421,438,490
Other Assets, Less Liabilities — (2.50)%				(10,273,991	)

NET ASSETS — 100.00%			$	411,164,499

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 1.

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

^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 1.

See notes to consolidated financial statements.


28		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 98.50%

CHINA — 30.41%
AAC Technologies Holdings Inc.		22,500	$	146,755
Agile Property Holdings Ltd.		40,000		31,380
Agricultural Bank of China Ltd. Class H		654,000		302,100
Air China Ltd. Class H		52,000		32,206
Alibaba Pictures Group Ltd.^a		210,000		43,625
Aluminum Corp. of China Ltd. Class H^a,b		118,000		50,092
Anhui Conch Cement Co. Ltd. Class H^b		38,000		137,288
Anta Sports Products Ltd.		32,000		61,439
AviChina Industry & Technology Co. Ltd. Class H		64,000		38,152
Bank of China Ltd. Class H		2,418,000		1,123,178
Bank of Communications Co. Ltd. Class H		269,000		196,453
BBMG Corp. Class H		38,000		28,340
Beijing Capital International Airport Co. Ltd. Class H		48,000		37,532
Beijing Enterprises Holdings Ltd.		15,500		133,597
Beijing Enterprises Water Group Ltd.		130,000		88,566
Belle International Holdings Ltd.		140,000		179,016
Biostime International Holdings Ltd.		5,000		18,677
Brilliance China Automotive Holdings Ltd.		92,000		170,464
BYD Co. Ltd. Class H^b		19,000		134,959
China Agri-Industries Holdings Ltd.		69,800		28,550
China BlueChemical Ltd. Class H		46,000		22,673
China Cinda Asset Management Co. Ltd.^a		153,000		78,374
China CITIC Bank Corp. Ltd. Class H		248,000		156,477
China Coal Energy Co. Class H^b		125,000		76,128
China Communications Construction Co. Ltd. Class H		129,000		94,043
China Communications Services Corp. Ltd. Class H		66,000		31,850
China Construction Bank Corp. Class H		2,182,000		1,621,687
China COSCO Holdings Co. Ltd. Class H^a		85,500		36,847
China Everbright Bank Co. Ltd.		91,000		42,505
China Everbright International Ltd.^b		75,000		102,772


Security	Shares		Value

China Everbright Ltd.^b		26,000	$	49,315
China Gas Holdings Ltd.		60,000		106,837
China Huishan Dairy Holdings Co. Ltd.^a,b		182,000		42,270
China International Marine Containers (Group) Co. Ltd. Class H		15,800		34,005
China Life Insurance Co. Ltd. Class H		224,000		643,084
China Longyuan Power Group Corp. Ltd. Class H		87,000		94,070
China Mengniu Dairy Co. Ltd.		41,000		190,183
China Merchants Bank Co. Ltd. Class H		138,831		265,476
China Merchants Holdings (International) Co. Ltd.^b		36,000		119,378
China Minsheng Banking Corp. Ltd. Class H		188,800		177,347
China Mobile Ltd.		183,500		2,282,459
China National Building Material Co. Ltd. Class H		86,000		79,007
China Oilfield Services Ltd. Class H		54,000		159,907
China Overseas Land & Investment Ltd.^b		122,000		343,168
China Pacific Insurance (Group) Co. Ltd. Class H		79,600		298,879
China Petroleum & Chemical Corp. Class H		766,600		777,466
China Railway Construction Corp. Ltd. Class H		61,000		58,401
China Railway Group Ltd. Class H		120,000		62,089
China Resources Cement Holdings Ltd.^b		60,000		41,264
China Resources Enterprise Ltd.		36,000		96,850
China Resources Gas Group Ltd.		26,000		75,650
China Resources Land Ltd.		62,000		141,917
China Resources Power Holdings Co. Ltd.		58,000		175,493
China Shenhua Energy Co. Ltd. Class H		102,000		294,149
China Shipping Container Lines Co. Ltd. Class H^a		117,000		33,363
China State Construction International Holdings Ltd.		50,000		80,644
China Taiping Insurance Holdings Co. Ltd.^a		25,800		62,784


CONSOLIDATED SCHEDULES OF INVESTMENTS			29

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2014


Security	Shares		Value

China Telecom Corp. Ltd. Class H		416,000	$	257,110
China Unicom (Hong Kong) Ltd.		142,000		253,213
China Vanke Co. Ltd.^a		41,600		77,938
Chongqing Changan Automobile Co. Ltd.		24,900		51,405
Chongqing Rural Commercial Bank Co. Ltd. Class H		68,000		33,780
CITIC 21CN Co. Ltd.^a		74,000		58,244
CITIC Pacific Ltd.^b		66,000		128,421
CITIC Securities Co. Ltd. Class H		31,500		74,786
CNOOC Ltd.		536,000		1,077,512
COSCO Pacific Ltd.		52,000		72,866
Country Garden Holdings Co. Ltd.^b		139,964		62,125
CSPC Pharmaceutical Group Ltd.		50,000		41,806
CSR Corp Ltd. Class H		63,000		56,821
Datang International Power Generation Co. Ltd. Class H		86,000		47,715
Dongfeng Motor Group Co. Ltd. Class H		82,000		151,935
ENN Energy Holdings Ltd.		22,000		155,416
Evergrande Real Estate Group Ltd.^b		177,000		73,996
Far East Horizon Ltd.		45,000		36,290
Fosun International Ltd.		53,000		65,103
Franshion Properties (China) Ltd.		100,000		27,096
GCL-Poly Energy Holdings Ltd.^a		294,000		105,838
Geely Automobile Holdings Ltd.		160,000		61,315
Golden Eagle Retail Group Ltd.^b		14,000		17,215
GOME Electrical Appliances Holdings Ltd.		288,000		51,282
Great Wall Motor Co. Ltd. Class H		31,000		131,597
Guangdong Investment Ltd.		80,000		96,721
Guangzhou Automobile Group Co. Ltd. Class H		68,000		70,719
Guangzhou R&F Properties Co. Ltd. Class H		33,600		40,493
Haier Electronics Group Co. Ltd.		31,000		89,598
Haitian International Holdings Ltd.		19,000		49,522
Haitong Securities Co. Ltd. Class H		40,800		65,173
Hanergy Solar Group Ltd.^a,b		352,000		57,681
Hengan International Group Co. Ltd.		22,000		234,615
Huaneng Power International Inc. Class H		96,000		115,446
Industrial and Commercial Bank of China Ltd. Class H		2,236,000		1,482,944
Inner Mongolia Yitai Coal Co. Ltd. Class B		30,900		52,190


Security	Shares		Value

Intime Retail Group Co. Ltd.^b		40,000	$	36,386
Jiangsu Expressway Co. Ltd. Class H		36,000		41,016
Jiangxi Copper Co. Ltd. Class H		40,000		70,708
Kingboard Chemical Holdings Co. Ltd.		18,200		37,808
Kingsoft Corp. Ltd.^b		20,000		57,289
Kunlun Energy Co. Ltd.		96,000		158,552
Lee & Man Paper Manufacturing Ltd.		43,000		25,300
Lenovo Group Ltd.		186,000		284,154
Longfor Properties Co. Ltd.		42,000		53,651
New China Life Insurance Co. Ltd. Class H		26,600		94,900
New World China Land Ltd.		78,000		47,806
Nine Dragons Paper (Holdings) Ltd.^b		46,000		35,909
People’s Insurance Co. Group of China Ltd. Class H		192,000		80,267
PetroChina Co. Ltd. Class H		634,000		899,854
PICC Property and Casualty Co. Ltd. Class H		98,000		162,614
Ping An Insurance (Group) Co. of China Ltd. Class H		61,000		496,648
Poly Property Group Co. Ltd.^b		66,000		28,699
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		56,000		56,721
Shanghai Electric Group Co. Ltd. Class H		82,000		35,974
Shanghai Fosun Pharmaceutical (Group) Co. Ltd.		13,000		42,270
Shanghai Industrial Holdings Ltd.		15,000		50,031
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		21,800		44,724
Shenzhou International Group Holdings Ltd.		16,000		49,857
Shimao Property Holdings Ltd.^b		42,000		92,452
Shui On Land Ltd.		121,500		31,825
Sihuan Pharmaceutical Holdings Group Ltd.		124,000		83,038
Sino Biopharmaceutical Ltd.		88,000		81,072
Sino-Ocean Land Holdings Ltd.^b		100,000		56,515
Sinopec Engineering Group Co. Ltd.		30,500		34,789
Sinopec Shanghai Petrochemical Co. Ltd. Class H		111,000		37,095
Sinopharm Group Co. Ltd. Class H		30,000		104,708
SOHO China Ltd.		59,000		48,265
Sun Art Retail Group Ltd.^b		73,500		87,724


30		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2014


Security	Shares		Value

Tencent Holdings Ltd.		154,600	$	2,523,422
Tingyi (Cayman Islands) Holding Corp.		60,000		168,384
Tsingtao Brewery Co. Ltd. Class H		10,000		75,934
Uni-President China Holdings Ltd.^b		38,600		34,864
Want Want China Holdings Ltd.		179,000		221,956
Weichai Power Co. Ltd. Class H^b		14,800		59,963
Yanzhou Coal Mining Co. Ltd. Class H^b		60,000		50,786
Yingde Gases Group Co. Ltd.		30,000		32,090
Yuexiu Property Co. Ltd.		158,000		33,842
Zhejiang Expressway Co. Ltd. Class H		46,000		45,762
Zhongsheng Group Holdings Ltd.		21,500		23,830
Zhuzhou CSR Times Electric Co. Ltd. Class H		16,500		57,163
Zijin Mining Group Co. Ltd. Class H		182,000		47,437
Zoomlion Heavy Industry Science and Technology Co. Ltd. Class H^b		38,000		23,682
ZTE Corp. Class H		18,000		40,551

				24,545,394
INDIA — 10.61%
ACC Ltd.		507		12,471
Adani Enterprises Ltd.		3,848		30,369
Adani Ports & Special Economic Zone Ltd.		15,060		70,200
Aditya Birla Nuvo Ltd.		1,040		24,917
Ambuja Cements Ltd.		19,711		67,014
Apollo Hospitals Enterprise Ltd.		2,172		41,994
Asian Paints Ltd.		8,819		90,719
Aurobindo Pharma Ltd.		3,978		53,596
Bajaj Auto Ltd.		2,561		95,328
Bharat Heavy Electricals Ltd.		17,488		69,427
Bharat Petroleum Corp. Ltd.		5,366		61,398
Bharti Airtel Ltd.		18,635		113,567
Cairn India Ltd.		14,166		76,164
Cipla Ltd.		10,085		85,460
Coal India Ltd.		14,872		87,276
Dabur India Ltd.		14,335		54,949
Divi’s Laboratories Ltd.		1,117		28,804
DLF Ltd.		12,948		37,833
Dr. Reddy’s Laboratories Ltd.		3,565		173,192
GAIL (India) Ltd.		9,167		66,985
GlaxoSmithKline Consumer Healthcare Ltd.		316		27,770


Security	Shares		Value

Godrej Consumer Products Ltd.		3,620	$	58,819
HCL Technologies Ltd.		7,390		198,603
HDFC Bank Ltd.		11,856		164,818
Hero Motocorp Ltd.		1,260		54,088
Hindalco Industries Ltd.		32,076		89,916
Hindustan Unilever Ltd.		22,988		281,270
Housing Development Finance Corp. Ltd.		44,846		794,117
ICICI Bank Ltd.		6,716		172,305
Idea Cellular Ltd.		31,125		83,044
Infosys Ltd.		13,881		823,252
ITC Ltd.		67,466		395,034
Jaiprakash Associates Ltd.		33,607		25,754
Jindal Steel & Power Ltd.		11,155		42,833
JSW Steel Ltd.		2,609		53,470
Larsen & Toubro Ltd.		9,480		238,484
LIC Housing Finance Ltd.		8,917		44,475
Mahindra & Mahindra Financial Services Ltd.		7,962		36,648
Mahindra & Mahindra Ltd.		10,247		237,633
Nestle India Ltd.		692		68,750
NTPC Ltd.		50,194		113,656
Oil & Natural Gas Corp. Ltd.		23,355		167,426
Oil India Ltd.		3,836		38,904
Piramal Enterprises Ltd.		1,914		21,738
Power Finance Corp. Ltd.		7,644		31,506
Power Grid Corp. of India Ltd.		24,135		51,388
Ranbaxy Laboratories Ltd.^a		3,738		39,468
Reliance Capital Ltd.		2,646		23,059
Reliance Communications Ltd.		25,961		49,629
Reliance Industries Ltd.		38,998		641,847
Reliance Infrastructure Ltd.		3,265		37,627
Reliance Power Ltd.^a		15,274		18,765
Rural Electrification Corp. Ltd.		9,320		41,217
Sesa Sterlite Ltd.		35,538		162,316
Shriram Transport Finance Co. Ltd.		4,482		66,783
Siemens Ltd.		2,028		26,546
State Bank of India		4,566		185,161
Sun Pharmaceuticals Industries Ltd.		21,947		309,330
Tata Consultancy Services Ltd.		14,203		590,391
Tata Motors Ltd.		22,823		197,482
Tata Power Co. Ltd.		35,410		50,536
Tata Steel Ltd.		8,795		74,376
Tech Mahindra Ltd.		1,715		66,786
Ultratech Cement Ltd.		1,096		46,059


CONSOLIDATED SCHEDULES OF INVESTMENTS			31

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2014


Security	Shares		Value

United Breweries Ltd.		2,054	$	23,940
United Spirits Ltd.		1,349		53,312
Wipro Ltd.		18,672		173,935
Yes Bank Ltd.		3,042		28,678

				8,564,607
INDONESIA — 4.05%
PT Adaro Energy Tbk		447,500		50,307
PT Astra Agro Lestari Tbk		12,600		27,467
PT Astra International Tbk		607,100		393,142
PT Bank Central Asia Tbk		370,100		354,359
PT Bank Danamon Indonesia Tbk		108,400		34,751
PT Bank Mandiri (Persero) Tbk		280,800		249,053
PT Bank Negara Indonesia (Persero) Tbk		236,900		108,349
PT Bank Rakyat Indonesia (Persero) Tbk		333,500		315,040
PT Bukit Asam (Persero) Tbk		21,600		24,651
PT Bumi Serpong Damai Tbk		199,600		27,387
PT Charoen Pokphand Indonesia Tbk		211,100		69,389
PT Global Mediacom Tbk		184,600		30,537
PT Gudang Garam Tbk		14,500		66,937
PT Indo Tambangraya Megah Tbk		12,500		30,108
PT Indocement Tunggal Prakarsa Tbk		46,400		96,192
PT Indofood CBP Sukses Makmur Tbk		39,700		35,636
PT Indofood Sukses Makmur Tbk		124,500		73,173
PT Jasa Marga (Persero) Tbk		55,300		29,311
PT Kalbe Farma Tbk		666,500		94,583
PT Lippo Karawaci Tbk		598,700		54,765
PT Matahari Department Store Tbk		59,400		82,645
PT Media Nusantara Citra Tbk		137,800		33,044
PT Perusahaan Gas Negara (Persero) Tbk		330,000		163,625
PT Semen Gresik (Persero) Tbk		91,000		126,221
PT Surya Citra Media Tbk		136,300		47,890
PT Telekomunikasi Indonesia (Persero) Tbk		1,505,000		342,879
PT Tower Bersama Infrastructure Tbk		60,600		40,797
PT Unilever Indonesia Tbk		47,100		124,922
PT United Tractors Tbk		49,400		93,542
PT XL Axiata Tbk		97,400		49,543

				3,270,245
MALAYSIA — 6.07%
AirAsia Bhd		34,000		25,996
Alliance Financial Group Bhd		31,200		48,107
AMMB Holdings Bhd		61,500		130,336


Security	Shares		Value

Astro Malaysia Holdings Bhd		47,700	$	49,637
Axiata Group Bhd		80,600		177,207
Berjaya Sports Toto Bhd		17,237		20,562
British American Tobacco (Malaysia) Bhd		3,700		84,518
Bumi Armada Bhd^a		29,000		27,141
CIMB Group Holdings Bhd		151,700		355,186
Dialog Group Bhd		106,378		58,386
DiGi.Com Bhd		92,600		168,337
Felda Global Ventures Holdings Bhd		38,800		47,023
Gamuda Bhd		50,000		76,618
Genting Bhd		62,500		189,959
Genting Malaysia Bhd		90,200		129,062
Genting Plantations Bhd		5,300		16,916
Hong Leong Bank Bhd		18,400		84,061
Hong Leong Financial Group Bhd		7,000		37,843
IHH Healthcare Bhd		77,100		119,368
IJM Corp. Bhd		33,000		68,052
IOI Corp. Bhd		89,300		135,423
IOI Properties Group Bhd^a		41,999		32,778
Kuala Lumpur Kepong Bhd		13,700		95,796
Lafarge Malaysia Bhd		10,900		35,273
Malayan Banking Bhd		136,900		438,671
Malaysia Airports Holdings Bhd		21,200		51,789
Maxis Bhd		57,400		119,280
MISC Bhd		33,000		72,030
MMC Corp. Bhd		20,200		15,829
Petronas Chemicals Group Bhd		83,700		167,294
Petronas Dagangan Bhd		7,800		49,740
Petronas Gas Bhd		21,300		154,074
PPB Group Bhd		13,600		63,772
Public Bank Bhd		82,610		505,305
RHB Capital Bhd		14,600		42,475
Sapurakencana Petroleum Bhd		110,700		148,209
Sime Darby Bhd		91,200		273,716
Telekom Malaysia Bhd		31,300		63,156
Tenaga Nasional Bhd		84,700		332,673
UEM Sunrise Bhd		47,400		28,873
UMW Holdings Bhd		17,400		68,231
YTL Corp. Bhd		129,653		66,636
YTL Power International Bhd^a		53,915		25,486

				4,900,824
PHILIPPINES — 1.78%
Aboitiz Equity Ventures Inc.		61,110		76,738
Aboitiz Power Corp.		45,000		38,704


32		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2014


Security	Shares		Value

Alliance Global Group Inc.		65,500	$	36,956
Ayala Corp.		6,110		98,166
Ayala Land Inc.		201,400		152,436
Bank of the Philippine Islands		23,520		51,248
BDO Unibank Inc.		47,840		99,301
DMCI Holdings Inc.		25,000		45,871
Energy Development Corp.		270,600		45,121
Globe Telecom Inc.		1,050		43,349
International Container Terminal Services Inc.		15,640		40,499
JG Summit Holdings Inc.		76,556		90,340
Jollibee Foods Corp.		12,710		52,472
Megaworld Corp.		330,000		33,076
Metro Pacific Investments Corp.		340,000		40,160
Metropolitan Bank & Trust Co.		7,364		14,517
Philippine Long Distance Telephone Co.		2,870		227,099
SM Investments Corp.		4,523		80,086
SM Prime Holdings Inc.		192,950		71,604
Universal Robina Corp.		26,610		99,177

				1,436,920
SOUTH KOREA — 22.96%
AmorePacific Corp.		98		203,935
AmorePacific Group		88		91,823
BS Financial Group Inc.		5,803		96,149
Celltrion Inc.^a,b		1,889		77,594
Cheil Worldwide Inc.^a		2,431		55,024
CJ CheilJedang Corp.		241		89,845
CJ Corp.		448		79,089
Coway Co. Ltd.		1,629		136,721
Daelim Industrial Co. Ltd.		840		72,406
Daewoo Engineering & Construction Co. Ltd.^a		3,276		27,528
Daewoo International Corp.		1,460		53,637
Daewoo Securities Co. Ltd.^a		6,253		72,770
Daewoo Shipbuilding & Marine Engineering Co. Ltd.		3,258		79,847
DGB Financial Group Inc.		1,920		33,516
Dongbu Insurance Co. Ltd.		1,330		80,276
Doosan Corp.		301		35,772
Doosan Heavy Industries & Construction Co. Ltd.		1,904		54,175
Doosan Infracore Co. Ltd.^a		4,415		51,598
E-Mart Co. Ltd.		649		156,177
GS Engineering & Construction Corp.^a		1,480		53,788


Security	Shares		Value

GS Holdings Corp.		1,605	$	68,145
Halla Visteon Climate Control Corp.		1,168		62,089
Hana Financial Group Inc.		8,750		367,190
Hankook Tire Co. Ltd.		2,243		116,359
Hanwha Chemical Corp.		3,454		55,866
Hanwha Corp.		1,505		44,900
Hanwha Life Insurance Co. Ltd.		7,971		54,715
Hite Jinro Co. Ltd.		1,002		22,828
Hotel Shilla Co. Ltd.		1,014		119,006
Hyosung Corp.		736		56,909
Hyundai Department Store Co. Ltd.		476		74,408
Hyundai Development Co. Engineering & Construction		1,700		69,076
Hyundai Engineering & Construction Co. Ltd.		2,307		145,389
Hyundai Glovis Co. Ltd.		410		122,319
Hyundai Heavy Industries Co. Ltd.		1,285		182,494
Hyundai Marine & Fire Insurance Co. Ltd.		840		25,806
Hyundai Merchant Marine Co. Ltd.^a		2,034		24,674
Hyundai Mipo Dockyard Co. Ltd.^b		348		44,274
Hyundai Mobis Co. Ltd.		2,065		598,757
Hyundai Motor Co.		4,648		1,068,084
Hyundai Steel Co.		2,173		162,233
Hyundai Wia Corp.		466		102,488
Industrial Bank of Korea		7,415		128,709
Kangwon Land Inc.		3,716		132,119
KB Financial Group Inc.		9,038		370,362
KCC Corp.		143		96,325
Kia Motors Corp.		8,017		483,890
Korea Aerospace Industries Ltd.		1,477		52,368
Korea Electric Power Corp.		7,750		322,550
Korea Gas Corp.^a		913		50,785
Korea Investment Holdings Co. Ltd.		1,313		65,912
Korea Zinc Co. Ltd.		266		110,314
Korean Air Lines Co. Ltd.^a		843		30,305
KT Corp.		2,065		71,281
KT&G Corp.		3,315		310,265
Kumho Petro Chemical Co. Ltd.		393		31,511
LG Chem Ltd.		1,430		380,083
LG Corp.		2,966		207,396
LG Display Co. Ltd.^a		7,124		246,261
LG Electronics Inc.		3,237		241,350
LG Household & Health Care Ltd.		289		146,217
LG Innotek Co. Ltd.^a		363		48,152


CONSOLIDATED SCHEDULES OF INVESTMENTS			33

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2014


Security	Shares		Value

LG Uplus Corp.		6,893	$	74,440
Lotte Chemical Corp.		471		75,949
Lotte Confectionery Co. Ltd.		23		49,223
Lotte Shopping Co. Ltd.		352		115,256
LS Corp.		600		41,422
LS Industrial Systems Co. Ltd.		467		28,832
Mirae Asset Securities Co. Ltd.		720		34,404
NAVER Corp.		846		640,789
NCsoft Corp.		460		65,782
OCI Co. Ltd.^a		520		74,619
ORION Corp.		108		92,987
Paradise Co. Ltd.		1,313		50,891
POSCO		1,974		650,245
S-Oil Corp.		1,445		66,767
S1 Corp.		558		40,724
Samsung C&T Corp.		3,772		277,520
Samsung Card Co. Ltd.		1,216		58,464
Samsung Electro-Mechanics Co. Ltd.		1,805		97,731
Samsung Electronics Co. Ltd.		3,334		4,057,553
Samsung Engineering Co. Ltd.^a		860		54,198
Samsung Fire & Marine Insurance Co. Ltd.		1,014		277,514
Samsung Heavy Industries Co. Ltd.		4,888		131,365
Samsung Life Insurance Co. Ltd.		1,866		195,995
Samsung SDI Co. Ltd.		1,660		248,030
Samsung Securities Co. Ltd.		1,846		90,211
Samsung Techwin Co. Ltd.		1,018		42,820
Shinhan Financial Group Co. Ltd.		11,855		613,825
Shinsegae Co. Ltd.		230		52,853
SK C&C Co. Ltd.		623		130,566
SK Holdings Co. Ltd.		818		129,483
SK Hynix Inc.^a		17,137		767,316
SK Innovation Co. Ltd.		1,838		170,576
SK Networks Co. Ltd.^a		3,278		31,779
SK Telecom Co. Ltd.		302		81,312
Woori Finance Holdings Co. Ltd.^a		9,764		132,408
Woori Investment & Securities Co. Ltd.		4,156		48,571
Yuhan Corp.		107		18,256

				18,526,510
TAIWAN — 19.00%
Acer Inc.^a		80,000		66,242
Advanced Semiconductor Engineering Inc.		185,434		231,091
Advantech Co. Ltd.		9,000		84,458


Security	Shares		Value

Asia Cement Corp.		63,229	$	86,730
Asia Pacific Telecom Co. Ltd.		63,000		40,678
ASUSTeK Computer Inc.		21,000		219,903
AU Optronics Corp.		266,000		132,152
Catcher Technology Co. Ltd.		19,000		192,603
Cathay Financial Holding Co. Ltd.		245,944		419,636
Chailease Holding Co. Ltd.		27,170		73,446
Chang Hwa Commercial Bank Ltd.		154,655		96,237
Cheng Shin Rubber Industry Co. Ltd.		48,776		112,596
Chicony Electronics Co. Ltd.		15,599		51,143
China Airlines Ltd.^a		73,000		24,422
China Development Financial Holding Corp.		414,200		139,958
China Life Insurance Co. Ltd.		85,388		79,273
China Motor Co. Ltd.		14,000		13,396
China Steel Corp.		347,866		300,261
Chunghwa Telecom Co. Ltd.		113,000		351,205
Clevo Co.		12,322		23,291
Compal Electronics Inc.		128,000		113,909
CTBC Financial Holding Co. Ltd.		400,218		291,221
CTCI Corp.		20,000		35,797
Delta Electronics Inc.		54,000		379,385
E.Sun Financial Holding Co. Ltd.		194,295		127,729
Eclat Textile Co. Ltd.		5,200		43,492
Epistar Corp.		27,000		58,714
EVA Airways Corp.^a		64,000		32,117
Evergreen Marine Corp. Ltd.^a		48,000		29,307
Far Eastern Department Stores Ltd.		34,546		34,788
Far Eastern New Century Corp.		98,589		105,712
Far EasTone Telecommunications Co. Ltd.		48,000		102,293
Farglory Land Development Co. Ltd.		8,530		11,843
First Financial Holding Co. Ltd.		228,885		141,663
Formosa Chemicals & Fibre Corp.		96,950		241,317
Formosa International Hotels Corp.		1,210		13,602
Formosa Petrochemical Corp.		34,000		85,880
Formosa Plastics Corp.		123,400		319,951
Formosa Taffeta Co. Ltd.		25,000		26,555
Foxconn Technology Co. Ltd.		26,370		66,167
Fubon Financial Holding Co. Ltd.		198,396		323,906
Giant Manufacturing Co. Ltd.		9,000		74,823
Hermes Microvision Inc.		1,000		42,990
Highwealth Construction Corp.		16,800		29,789
Hiwin Technologies Corp.		5,348		52,245
Hon Hai Precision Industry Co. Ltd.		374,528		1,278,060


34		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2014


Security	Shares		Value

Hotai Motor Co. Ltd.		7,000	$	98,476
HTC Corp.		20,000		92,003
Hua Nan Financial Holdings Co. Ltd.		188,093		116,730
Innolux Corp.		238,620		121,344
Inotera Memories Inc.^a		68,000		111,246
Inventec Corp.		71,980		56,591
Kinsus Interconnect Technology Corp.		8,000		33,857
Largan Precision Co. Ltd.		3,000		248,407
Lite-On Technology Corp.		65,615		108,771
MediaTek Inc.		42,176		704,803
Mega Financial Holding Co. Ltd.		303,542		262,002
Merida Industry Co. Ltd.		7,350		54,097
Nan Ya Plastics Corp.		142,090		335,135
Novatek Microelectronics Corp. Ltd.		17,000		87,302
Pegatron Corp.		51,000		108,175
Phison Electronics Corp.		4,000		28,972
Pou Chen Corp.		64,000		73,977
Powertech Technology Inc.		23,000		43,629
President Chain Store Corp.		18,000		136,398
Quanta Computer Inc.		80,000		225,891
Radiant Opto-Electronics Corp.		13,363		57,671
Realtek Semiconductor Corp.		14,140		51,564
Ruentex Development Co. Ltd.		18,633		33,475
Ruentex Industries Ltd.		14,855		36,031
ScinoPharm Taiwan Ltd.		9,526		19,441
Shin Kong Financial Holding Co. Ltd.		221,282		72,180
Siliconware Precision Industries Co. Ltd.		90,000		131,279
Simplo Technology Co. Ltd.		9,200		51,709
SinoPac Financial Holdings Co. Ltd.		226,748		103,548
Standard Foods Corp.		9,103		23,389
Synnex Technology International Corp.		40,000		61,023
Taishin Financial Holdings Co. Ltd.		257,067		130,724
Taiwan Business Bank Ltd.^a		145,864		45,676
Taiwan Cement Corp.		102,000		162,092
Taiwan Cooperative Financial Holding Co. Ltd.		188,832		105,502
Taiwan Fertilizer Co. Ltd.		24,000		45,526
Taiwan Glass Industry Corp.		28,450		24,557
Taiwan Mobile Co. Ltd.		50,000		159,415
Taiwan Semiconductor Manufacturing Co. Ltd.		742,000		3,078,169
Teco Electric and Machinery Co. Ltd.		56,000		70,444
TPK Holding Co. Ltd.		8,591		58,345


Security	Shares		Value

Transcend Information Inc.		6,000	$	20,174
TSRC Corp.		16,380		22,934
U-Ming Marine Transport Corp.		15,000		24,690
Uni-President Enterprises Co.		139,241		254,813
Unimicron Technology Corp.		37,000		31,256
United Microelectronics Corp.		370,000		168,967
Vanguard International Semiconductor Corp.		23,000		33,665
Walsin Lihwa Corp.^a		85,000		30,428
Wistron Corp.		70,105		82,089
WPG Holdings Co. Ltd.		44,000		57,336
Yang Ming Marine Transport Corp.^a		34,000		15,299
Yuanta Financial Holding Co. Ltd.		260,350		140,233
Yulon Motor Co. Ltd.		28,000		44,964
Zhen Ding Technology Holding Ltd.		10,455		34,558

				15,332,948
THAILAND — 3.62%
Advanced Information Service PCL NVDR		31,600		206,775
Airports of Thailand PCL NVDR		12,600		93,494
Bangkok Bank PCL Foreign		14,400		92,423
Bangkok Bank PCL NVDR		19,100		122,589
Bangkok Dusit Medical Services PCL NVDR		97,800		59,709
Banpu PCL NVDR		30,000		30,291
BEC World PCL NVDR		28,400		42,236
BTS Group Holdings PCL NVDR		183,000		55,290
Bumrungrad Hospital PCL NVDR		11,000		46,493
Central Pattana PCL NVDR		39,700		59,973
Charoen Pokphand Foods PCL NVDR		79,300		73,242
CP All PCL NVDR		134,000		199,280
Glow Energy PCL NVDR		16,400		44,928
Home Product Center PCL NVDR		89,332		29,367
Indorama Ventures PCL NVDR		34,000		28,741
IRPC PCL NVDR		260,500		27,078
Kasikornbank PCL Foreign		35,400		250,482
Kasikornbank PCL NVDR		19,500		137,367
Krung Thai Bank PCL NVDR		107,250		78,910
Minor International PCL NVDR		43,600		48,118
PTT Exploration & Production PCL NVDR		41,810		215,333
PTT Global Chemical PCL NVDR		48,900		94,922
PTT PCL NVDR		25,900		260,297
Siam Cement (The) PCL Foreign		9,000		123,983


CONSOLIDATED SCHEDULES OF INVESTMENTS			35

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2014


Security	Shares		Value

Siam Cement (The) PCL NVDR		3,500	$	48,215
Siam Commercial Bank PCL NVDR		47,900		280,442
Thai Oil PCL NVDR		26,800		43,422
TMB Bank PCL NVDR		388,000		36,929
True Corp. PCL NVDR^a		243,390		87,633

				2,917,962

TOTAL COMMON STOCKS
(Cost: $73,329,018)				79,495,410

PREFERRED STOCKS — 1.18%

SOUTH KOREA — 1.18%
Hyundai Motor Co. Ltd.		742		109,769
Hyundai Motor Co. Ltd. Series 2		1,154		178,686
LG Chem Ltd.		211		36,729
Samsung Electronics Co. Ltd.		621		624,705

				949,889

TOTAL PREFERRED STOCKS
(Cost: $784,727)				949,889

WARRANTS — 0.00%

THAILAND — 0.00%
Indorama Ventures PCL NVDR (Expires 8/24/17)^a		3,400		—
Indorama Ventures PCL NVDR (Expires 8/24/18)^a		2,615		—

				—

TOTAL WARRANTS
(Cost: $0)				—

SHORT-TERM INVESTMENTS — 2.33%

MONEY MARKET FUNDS — 2.33%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		1,690,830		1,690,830
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		106,442		106,442
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		85,519		85,519

				1,882,791

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,882,791)				1,882,791


	Value

TOTAL INVESTMENTS IN SECURITIES — 102.01%
(Cost: $75,996,536)	$	82,328,090
Other Assets, Less Liabilities — (2.01)%		(1,621,854	)

NET ASSETS — 100.00%	$	80,706,236

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to consolidated financial statements.


36		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS CONSUMER DISCRETIONARY ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 96.45%

BRAZIL — 6.22%
B2W Companhia Global do Varejo^a		1,800	$	30,489
Cyrela Brazil Realty SA Empreendimentos e Participacoes		4,000		25,367
Estacio Participacoes SA		4,600		61,120
Kroton Educacional SA		5,322		159,478
Lojas Americanas SA		2,550		14,815
Lojas Renner SA		2,002		68,554
Via Varejo SA^a		2,000		22,346

				382,169
CHILE — 1.85%
S.A.C.I. Falabella SA		15,126		113,910

				113,910
CHINA — 11.12%
Alibaba Pictures Group Ltd.^a		80,000		16,619
Anta Sports Products Ltd.		16,002		30,723
Belle International Holdings Ltd.		72,001		92,067
Brilliance China Automotive Holdings Ltd.		48,000		88,938
BYD Co. Ltd. Class H^b		10,000		71,031
Chongqing Changan Automobile Co. Ltd.		13,200		27,251
Dongfeng Motor Group Co. Ltd. Class H		44,001		81,528
Geely Automobile Holdings Ltd.^b		80,001		30,658
Golden Eagle Retail Group Ltd.		8,000		9,837
GOME Electrical Appliances Holdings Ltd.		166,000		29,558
Great Wall Motor Co. Ltd. Class H		16,002		67,930
Guangzhou Automobile Group Co. Ltd. Class H		36,001		37,440
Haier Electronics Group Co. Ltd.		16,001		46,247
Intime Retail Group Co. Ltd.^b		19,001		17,284
Shenzhou International Group Holdings Ltd.^b		8,000		24,929
Zhongsheng Group Holdings Ltd.		10,000		11,084

				683,124
GREECE — 1.63%
Folli Follie Group^a		480		19,916
Jumbo SA^a		1,658		24,460
OPAP SA		3,500		55,737

				100,113
INDIA — 4.88%
Bajaj Auto Ltd.		1,304		48,539


Security	Shares		Value

Hero Motocorp Ltd.		620	$	26,615
Mahindra & Mahindra Ltd.		5,272		122,260
Tata Motors Ltd.		11,862		102,639

				300,053
INDONESIA — 4.98%
PT Astra International Tbk		313,600		203,079
PT Global Mediacom Tbk		101,000		16,708
PT Matahari Department Store Tbk		31,000		43,131
PT Media Nusantara Citra Tbk		75,200		18,033
PT Surya Citra Media Tbk		71,000		24,946

				305,897
MALAYSIA — 3.85%
Astro Malaysia Holdings Bhd		24,200		25,182
Berjaya Sports Toto Bhd		10,265		12,245
Genting Bhd		31,800		96,651
Genting Malaysia Bhd		47,001		67,251
UMW Holdings Bhd		9,001		35,296

				236,625
MEXICO — 5.40%
El Puerto de Liverpool SAB de CV Series C1		3,001		34,221
Grupo Televisa SAB de CV CPO		40,002		297,640

				331,861
PHILIPPINES — 0.46%
Jollibee Foods Corp.		6,841		28,243

				28,243
POLAND — 0.93%
Cyfrowy Polsat SA		2,860		22,890
LPP SA		13		34,560

				57,450
SOUTH AFRICA — 20.02%
Foschini Group Ltd. (The)		3,085		33,392
Imperial Holdings Ltd.		2,890		51,684
Mr. Price Group Ltd.		3,753		72,234
Naspers Ltd. Class N		6,142		782,820
Steinhoff International Holdings Ltd.		32,370		159,820
Truworths International Ltd.		6,040		42,253
Woolworths Holdings Ltd.		11,802		88,176

				1,230,379
SOUTH KOREA — 28.33%
Cheil Worldwide Inc.^a		1,272		28,791
Coway Co. Ltd.		829		69,577
Halla Visteon Climate Control Corp.		580		30,832
Hankook Tire Co. Ltd.		1,140		59,139


CONSOLIDATED SCHEDULES OF INVESTMENTS			37

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS CONSUMER DISCRETIONARY ETF

August 31, 2014


Security	Shares		Value

Hotel Shilla Co. Ltd.		526	$	61,733
Hyundai Department Store Co. Ltd.		236		36,891
Hyundai Mobis Co. Ltd.		1,060		307,352
Hyundai Motor Co.		2,394		550,128
Hyundai Wia Corp.		236		51,904
Kangwon Land Inc.		1,842		65,491
Kia Motors Corp.		4,092		246,985
LG Electronics Inc.		1,658		123,620
Lotte Shopping Co. Ltd.		174		56,973
Paradise Co. Ltd.		674		26,124
Shinsegae Co. Ltd.		112		25,737

				1,741,277
TAIWAN — 4.89%
Cheng Shin Rubber Industry Co. Ltd.		24,754		57,143
China Motor Co. Ltd.		10,002		9,570
Eclat Textile Co. Ltd.		2,080		17,397
Far Eastern Department Stores Ltd.		16,900		17,018
Formosa International Hotels Corp.		1		11
Formosa Taffeta Co. Ltd.		12,002		12,749
Giant Manufacturing Co. Ltd.		4,001		33,263
Hotai Motor Co. Ltd.		4,001		56,286
Merida Industry Co. Ltd.		2,200		16,192
Pou Chen Corp.		32,000		36,988
Ruentex Industries Ltd.		8,760		21,248
Yulon Motor Co. Ltd.		14,001		22,484

				300,349
THAILAND — 1.09%
BEC World PCL NVDR		15,801		23,499
Home Product Center PCL NVDR		54,666		17,971
Minor International PCL NVDR		23,400		25,825

				67,295
TURKEY — 0.80%
Arcelik AS		3,758		22,552
Ford Otomotiv Sanayi AS^a		1,002		13,233
Tofas Turk Otomobil Fabrikasi AS		2,128		13,116

				48,901

TOTAL COMMON STOCKS
(Cost: $5,052,698)				5,927,646

PREFERRED STOCKS — 3.25%

BRAZIL — 0.88%
Lojas Americanas SA		7,601		53,810

				53,810


Security	Shares		Value

SOUTH KOREA — 2.37%
Hyundai Motor Co. Ltd.		374	$	55,328
Hyundai Motor Co. Ltd. Series 2		584		90,427

				145,755

TOTAL PREFERRED STOCKS
(Cost: $126,280)				199,565

SHORT-TERM INVESTMENTS — 2.44%

MONEY MARKET FUNDS — 2.44%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		132,756		132,756
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		8,357		8,357
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		8,971		8,971

				150,084

TOTAL SHORT-TERM INVESTMENTS
(Cost: $150,084)				150,084

TOTAL INVESTMENTS IN SECURITIES — 102.14%
(Cost: $5,329,062)				6,277,295
Other Assets, Less Liabilities — (2.14)%				(131,343	)

NET ASSETS — 100.00%			$	6,145,952

CPO — Certificates of Participation (Ordinary)

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to consolidated financial statements.


38		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS ENERGY CAPPED ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 89.02%

BRAZIL — 8.44%
Cosan SA Industria e Comercio		800	$	16,625
Petroleo Brasileiro SA		10,502		103,915
Ultrapar Participacoes SA		1,801		46,435

				166,975
CHILE — 1.52%
Empresas Copec SA		2,399		30,155

				30,155
CHINA — 22.74%
China Coal Energy Co. Class H^a		26,000		15,835
China Oilfield Services Ltd. Class H		10,001		29,615
China Petroleum & Chemical Corp. Class H		86,402		87,627
China Shenhua Energy Co. Ltd. Class H		16,500		47,583
CNOOC Ltd.		66,001		132,681
Inner Mongolia Yitai Coal Co. Ltd. Class B		8,000		13,512
Kunlun Energy Co. Ltd.		2,000		3,303
PetroChina Co. Ltd. Class H		76,000		107,869
Yanzhou Coal Mining Co. Ltd. Class H		14,002		11,852

				449,877
COLOMBIA — 2.17%
Ecopetrol SA		24,804		42,990

				42,990
HUNGARY — 0.71%
MOL Hungarian Oil and Gas PLC		285		14,042

				14,042
INDIA — 8.99%
Bharat Petroleum Corp. Ltd.		1,296		14,829
Cairn India Ltd.		2,926		15,732
Coal India Ltd.		3,119		18,304
Oil & Natural Gas Corp. Ltd.		4,161		29,829
Oil India Ltd.		1,043		10,578
Reliance Industries Ltd.		5,378		88,513

				177,785
INDONESIA — 1.61%
PT Adaro Energy Tbk		116,202		13,063
PT Bukit Asam (Persero) Tbk		8,500		9,701
PT Indo Tambangraya Megah Tbk		3,800		9,153

				31,917
MALAYSIA — 2.36%
Bumi Armada Bhd^b		8,701		8,144


Security	Shares		Value

Petronas Dagangan Bhd		1,901	$	12,122
Sapurakencana Petroleum Bhd		19,801		26,510

				46,776
POLAND — 2.39%
Grupa Lotos SA^b		817		7,701
Polski Koncern Naftowy Orlen SA		1,812		22,346
Polskie Gornictwo Naftowe i Gazownictwo SA		11,287		17,227

				47,274
RUSSIA — 21.06%
Gazprom OAO		45,720		162,915
LUKOIL OAO		1,836		102,205
NovaTek OAO SP GDR^c		446		44,868
Rosneft Oil Co. OJSC		5,942		36,656
Surgutneftegas OJSC		37,802		26,498
Tatneft OAO Class S		7,021		43,544

				416,686
SOUTH AFRICA — 6.67%
Exxaro Resources Ltd.		1,022		14,498
Sasol Ltd.		2,019		117,373

				131,871
SOUTH KOREA — 2.98%
GS Holdings Corp.		354		15,030
S-Oil Corp.		309		14,277
SK Innovation Co. Ltd.		319		29,605

				58,912
TAIWAN — 0.89%
Formosa Petrochemical Corp.		7,000		17,681

				17,681
THAILAND — 5.56%
Banpu PCL NVDR		9,700		9,794
IRPC PCL NVDR		94,100		9,781
PTT Exploration & Production PCL NVDR		7,133		36,737
PTT PCL NVDR		4,302		43,236
Thai Oil PCL NVDR		6,501		10,533

				110,081
TURKEY — 0.93%
Turkiye Petrol Rafinerileri AS		784		18,456

				18,456

TOTAL COMMON STOCKS
(Cost: $2,078,492)				1,761,478


CONSOLIDATED SCHEDULES OF INVESTMENTS			39

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ENERGY CAPPED ETF

August 31, 2014


Security	Shares		Value

PREFERRED STOCKS — 10.83%

BRAZIL — 8.44%
Petroleo Brasileiro SA		16,000	$	166,968

				166,968
RUSSIA — 2.39%
AK Transneft OAO		9		19,800
Surgutneftegas OJSC		37,402		27,526

				47,326

TOTAL PREFERRED STOCKS
(Cost: $263,525)				214,294

SHORT-TERM INVESTMENTS — 0.90%

MONEY MARKET FUNDS — 0.90%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^d,e,f		15,078		15,078
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		949		949
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^d,e		1,758		1,758

				17,785

TOTAL SHORT-TERM INVESTMENTS
(Cost: $17,785)				17,785

TOTAL INVESTMENTS IN SECURITIES — 100.75%
(Cost: $2,359,802)				1,993,557
Other Assets, Less Liabilities — (0.75)%				(14,777	)

NET ASSETS — 100.00%			$	1,978,780

SP GDR — Sponsored Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^a	All or a portion of this security represents a security on loan. See Note 1.

^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	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 1.

See notes to consolidated financial statements.


40		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS GROWTH ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 95.16%

BRAZIL — 8.30%
ALL – America Latina Logistica SA		1,400	$	5,162
AMBEV SA		13,500		98,344
Banco Bradesco SA		880		15,739
BB Seguridade Participacoes SA		2,000		31,946
BR Malls Participacoes SA		1,200		12,480
BR Properties SA		600		3,995
BRF SA		1,800		48,187
CCR SA		2,600		23,542
CETIP SA – Mercados Organizados		600		8,755
Cielo SA		2,160		40,506
Companhia Siderurgica Nacional SA		600		2,633
Cosan SA Industria e Comercio		400		8,313
EcoRodovias Infraestrutura e Logistica SA		400		2,556
Embraer SA		2,000		19,495
Estacio Participacoes SA		1,000		13,287
Fibria Celulose SA^a		400		4,162
Hypermarcas SA^a		1,000		8,697
JBS SA		1,800		8,141
Klabin SA		1,400		7,114
Kroton Educacional SA		971		29,097
Localiza Rent A Car SA		410		7,302
Lojas Americanas SA		500		2,905
Lojas Renner SA		400		13,697
Multiplan Empreendimentos Imobiliarios SA		200		5,158
Natura Cosmeticos SA		400		7,331
Odontoprev SA		800		3,490
Qualicorp SA^a		400		5,005
Raia Drogasil SA		600		5,846
Souza Cruz SA		600		5,620
Totvs SA		400		7,304
Ultrapar Participacoes SA		1,000		25,783
WEG SA		780		9,757

				491,349
CHILE — 1.12%
Cencosud SA		3,256		9,769
Empresas Copec SA		1,190		14,958
Enersis SA		19,774		6,656
LATAM Airlines Group SA^a		932		11,530
S.A.C.I. Falabella SA		2,658		20,017
Vina Concha y Toro SA		1,795		3,501

				66,431


Security	Shares		Value

CHINA — 19.08%
AAC Technologies Holdings Inc.		2,000	$	13,045
Anhui Conch Cement Co. Ltd. Class H^b		4,000		14,451
AviChina Industry & Technology Co. Ltd. Class H		8,000		4,769
Beijing Capital International Airport Co. Ltd. Class H		8,000		6,255
Beijing Enterprises Holdings Ltd.		1,000		8,619
Beijing Enterprises Water Group Ltd.		12,000		8,175
Belle International Holdings Ltd.		8,000		10,229
Biostime International Holdings Ltd.^b		1,000		3,735
Brilliance China Automotive Holdings Ltd.		8,000		14,823
BYD Co. Ltd. Class H		2,000		14,206
China Cinda Asset Management Co. Ltd.^a		10,000		5,122
China Everbright International Ltd.		8,000		10,962
China Gas Holdings Ltd.		4,000		7,122
China Huishan Dairy Holdings Co. Ltd.^a,b		12,000		2,787
China Life Insurance Co. Ltd. Class H		22,000		63,160
China Longyuan Power Group Corp. Ltd. Class H		8,000		8,650
China Mengniu Dairy Co. Ltd.		4,000		18,554
China Minsheng Banking Corp. Ltd. Class H		6,300		5,918
China Oilfield Services Ltd. Class H		4,000		11,845
China Overseas Land & Investment Ltd.^b		12,000		33,754
China Pacific Insurance (Group) Co. Ltd. Class H		7,200		27,034
China Resources Enterprise Ltd.		4,000		10,761
China Resources Gas Group Ltd.		4,000		11,638
China Resources Land Ltd.		4,000		9,156
China Resources Power Holdings Co. Ltd.		4,000		12,103
China Shipping Container Lines Co. Ltd. Class H^a,b		14,000		3,992
China State Construction International Holdings Ltd.		4,000		6,452
China Taiping Insurance Holdings Co. Ltd.^a		2,400		5,840
China Unicom (Hong Kong) Ltd.		12,000		21,398
Chongqing Changan Automobile Co. Ltd.		2,200		4,542


CONSOLIDATED SCHEDULES OF INVESTMENTS			41

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS GROWTH ETF

August 31, 2014


Security	Shares		Value

CITIC 21CN Co. Ltd.^a		8,000	$	6,297
CNOOC Ltd.		52,000		104,535
Country Garden Holdings Co. Ltd.^b		2,000		888
CSPC Pharmaceutical Group Ltd.		4,000		3,344
CSR Corp Ltd. Class H		6,000		5,412
Dongfeng Motor Group Co. Ltd. Class H		8,000		14,823
ENN Energy Holdings Ltd.		4,000		28,258
Evergrande Real Estate Group Ltd.^b		8,000		3,344
GCL-Poly Energy Holdings Ltd.^a		24,000		8,640
Geely Automobile Holdings Ltd.		20,000		7,664
Golden Eagle Retail Group Ltd.		2,000		2,459
Great Wall Motor Co. Ltd. Class H		3,000		12,735
Guangzhou Automobile Group Co. Ltd. Class H		4,000		4,160
Haier Electronics Group Co. Ltd.		2,000		5,781
Haitian International Holdings Ltd.		4,000		10,426
Haitong Securities Co. Ltd. Class H		2,400		3,834
Hanergy Solar Group Ltd.^a,b		32,000		5,244
Hengan International Group Co. Ltd.		2,000		21,329
Huaneng Power International Inc. Class H		8,000		9,620
Intime Retail Group Co. Ltd.^b		3,000		2,729
Kingsoft Corp. Ltd.^b		2,000		5,729
Kunlun Energy Co. Ltd.		8,000		13,213
Lee & Man Paper Manufacturing Ltd.		4,000		2,354
Lenovo Group Ltd.		20,000		30,554
Longfor Properties Co. Ltd.		4,000		5,110
New China Life Insurance Co. Ltd. Class H		2,200		7,849
People’s Insurance Co. Group of China Ltd. Class H		14,000		5,853
PICC Property and Casualty Co. Ltd. Class H		8,000		13,275
Ping An Insurance (Group) Co. of China Ltd. Class H		5,000		40,709
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		8,000		8,103
Shanghai Fosun Pharmaceutical (Group) Co. Ltd.		2,000		6,503
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		1,600		3,283
Shenzhou International Group Holdings Ltd.		2,000		6,232
Shimao Property Holdings Ltd.		4,000		8,805


Security	Shares		Value

Sihuan Pharmaceutical Holdings Group Ltd.		12,000	$	8,036
Sino Biopharmaceutical Ltd.		8,000		7,370
Sinopec Engineering Group Co. Ltd.		2,000		2,281
Sinopharm Group Co. Ltd. Class H		3,200		11,169
Sun Art Retail Group Ltd.^b		7,000		8,355
Tencent Holdings Ltd.		14,200		231,776
Tingyi (Cayman Islands) Holding Corp.		4,000		11,226
Uni-President China Holdings Ltd.		4,800		4,335
Want Want China Holdings Ltd.		18,000		22,320
Weichai Power Co. Ltd. Class H		2,000		8,103
Yingde Gases Group Co. Ltd.		3,000		3,209
Zhongsheng Group Holdings Ltd.		2,000		2,217
Zhuzhou CSR Times Electric Co. Ltd. Class H		2,000		6,929
ZTE Corp. Class H		1,600		3,605

				1,129,122
COLOMBIA — 0.56%
Almacenes Exito SA		404		6,878
Cementos Argos SA		1,006		5,926
Cemex Latam Holdings SA^a		424		4,199
Corporacion Financiera Colombiana SA NVS		176		3,752
Ecopetrol SA		3,926		6,804
Isagen SA ESP		3,778		5,652

				33,211
CZECH REPUBLIC — 0.22%
Komercni Banka AS		56		13,024

				13,024
GREECE — 0.88%
Alpha Bank AE^a		4,027		3,533
Eurobank Ergasias SA^a		22,352		9,510
Folli Follie Group^a		160		6,638
Hellenic Telecommunications Organization SA^a		344		4,930
Jumbo SA^a		288		4,249
National Bank of Greece SA^a		4,334		14,900
Piraeus Bank SA^a		2,200		4,347
Titan Cement Co. SA		140		3,743

				51,850
HUNGARY — 0.18%
OTP Bank PLC		322		5,567
Richter Gedeon Nyrt		306		4,924

				10,491


42		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS GROWTH ETF

August 31, 2014


Security	Shares		Value

INDIA — 6.51%
Adani Enterprises Ltd.		471	$	3,717
Adani Ports & Special Economic Zone Ltd.		1,216		5,668
Apollo Hospitals Enterprise Ltd.		113		2,185
Asian Paints Ltd.		800		8,229
Aurobindo Pharma Ltd.		496		6,683
Bharti Airtel Ltd.		1,708		10,409
Cipla Ltd.		972		8,237
Dabur India Ltd.		1,222		4,684
Divi’s Laboratories Ltd.		190		4,900
Dr. Reddy’s Laboratories Ltd.		290		14,088
GlaxoSmithKline Consumer Healthcare Ltd.		32		2,812
Godrej Consumer Products Ltd.		338		5,492
HCL Technologies Ltd.		624		16,770
HDFC Bank Ltd.		1,147		15,945
Hindustan Unilever Ltd.		1,866		22,831
Housing Development Finance Corp. Ltd.		2,752		48,731
Idea Cellular Ltd.		2,042		5,448
ITC Ltd.		6,298		36,877
Jaiprakash Associates Ltd.		3,153		2,416
Larsen & Toubro Ltd.		934		23,496
Mahindra & Mahindra Financial Services Ltd.		650		2,992
Nestle India Ltd.		36		3,577
Ranbaxy Laboratories Ltd.^a		198		2,091
Siemens Ltd.		251		3,286
Sun Pharmaceuticals Industries Ltd.		1,850		26,075
Tata Consultancy Services Ltd.		1,350		56,117
Tata Motors Ltd.		2,074		17,946
Tech Mahindra Ltd.		194		7,555
Ultratech Cement Ltd.		96		4,034
United Breweries Ltd.		263		3,065
United Spirits Ltd.		232		9,169

				385,525
INDONESIA — 2.55%
PT Astra International Tbk		19,000		12,304
PT Bank Central Asia Tbk		36,000		34,469
PT Bank Rakyat Indonesia (Persero) Tbk		15,000		14,170
PT Bumi Serpong Damai Tbk		24,000		3,293
PT Charoen Pokphand Indonesia Tbk		21,000		6,903
PT Global Mediacom Tbk		18,000		2,978


Security	Shares		Value

PT Gudang Garam Tbk		1,400	$	6,463
PT Indocement Tunggal Prakarsa Tbk		4,000		8,292
PT Indofood CBP Sukses Makmur Tbk		4,000		3,590
PT Jasa Marga (Persero) Tbk		6,000		3,180
PT Kalbe Farma Tbk		70,000		9,934
PT Lippo Karawaci Tbk		61,000		5,580
PT Matahari Department Store Tbk		4,000		5,565
PT Media Nusantara Citra Tbk		16,000		3,837
PT Semen Gresik (Persero) Tbk		8,000		11,096
PT Surya Citra Media Tbk		14,000		4,919
PT Tower Bersama Infrastructure Tbk		6,000		4,039
PT Unilever Indonesia Tbk		4,000		10,609

				151,221
MALAYSIA — 3.65%
Astro Malaysia Holdings Bhd		5,000		5,203
Axiata Group Bhd		2,200		4,837
British American Tobacco (Malaysia) Bhd		200		4,568
Bumi Armada Bhd^a		3,600		3,369
Dialog Group Bhd		10,886		5,975
DiGi.Com Bhd		9,200		16,725
Felda Global Ventures Holdings Bhd		3,400		4,120
Gamuda Bhd		4,500		6,896
Genting Bhd		3,200		9,726
Genting Plantations Bhd		800		2,553
IHH Healthcare Bhd		6,000		9,289
IJM Corp. Bhd		2,600		5,362
IOI Corp. Bhd		7,800		11,829
Kuala Lumpur Kepong Bhd		1,600		11,188
Malaysia Airports Holdings Bhd		1,600		3,909
MMC Corp. Bhd		2,200		1,724
Petronas Dagangan Bhd		600		3,826
Petronas Gas Bhd		1,800		13,020
Public Bank Bhd		7,260		44,407
Sapurakencana Petroleum Bhd		10,400		13,924
Tenaga Nasional Bhd		7,800		30,636
UEM Sunrise Bhd		4,800		2,924

				216,010
MEXICO — 5.22%
Alfa SAB de CV Series A		7,400		23,809
America Movil SAB de CV Series L		45,800		56,009
Cemex SAB de CV CPO^a		10,000		13,284
Compartamos SAB de CV		3,000		6,406


CONSOLIDATED SCHEDULES OF INVESTMENTS			43

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS GROWTH ETF

August 31, 2014


Security	Shares		Value

El Puerto de Liverpool SAB de CV Series C1		600	$	6,842
Genomma Lab Internacional SAB de CV Series B^a,b		2,200		5,869
Gruma SAB de CV Series B^a		600		6,845
Grupo Bimbo SAB de CV Series A		4,800		15,110
Grupo Carso SAB de CV Series A1		1,000		6,111
Grupo Financiero Banorte SAB de CV Series O		4,600		32,383
Grupo Financiero Inbursa SAB de CV Series O		4,200		12,762
Grupo Televisa SAB de CV CPO		7,200		53,573
Mexichem SAB de CV		3,200		13,800
Minera Frisco SAB de CV Series A1^a		1,800		3,619
Promotora y Operadora Infraestructura SAB de CV^a		800		11,215
Wal-Mart de Mexico SAB de CV Series V		15,200		41,384

				309,021
PERU — 0.45%
Credicorp Ltd.		74		11,475
Southern Copper Corp.		458		15,027

				26,502
PHILIPPINES — 0.98%
Alliance Global Group Inc.		5,000		2,821
Ayala Corp.		220		3,535
Ayala Land Inc.		16,000		12,110
Bank of the Philippine Islands		1,722		3,752
DMCI Holdings Inc.		4,000		7,339
International Container Terminal Services Inc.		2,400		6,215
Jollibee Foods Corp.		1,240		5,119
SM Investments Corp.		348		6,162
SM Prime Holdings Inc.		7,200		2,672
Universal Robina Corp.		2,200		8,200

				57,925
POLAND — 1.45%
Alior Bank SA^a		118		2,813
Bank Millennium SA		1,094		2,747
Bank Pekao SA		350		19,715
Bank Zachodni WBK SA		78		9,038
Cyfrowy Polsat SA		644		5,154
Energa SA		888		5,791
Eurocash SA		200		2,158
Grupa Azoty SA		124		2,899


Security	Shares		Value

mBank SA		40	$	5,798
Powszechna Kasa Oszczednosci Bank Polski SA		2,472		29,573

				85,686
QATAR — 0.52%
Barwa Real Estate Co.		29		311
Masraf Al Rayan QSC		1,180		16,852
Qatar Electricity & Water Co. QSC		9		423
Qatar National Bank SAQ		131		7,267
Vodafone Qatar QSC		1,164		6,183

				31,036
RUSSIA — 4.40%
Alrosa AO		5,000		5,860
Magnit OJSC SP GDR^c		748		43,534
MegaFon OAO SP GDR^c		264		7,471
Mobile TeleSystems OJSC SP ADR		1,474		27,195
Moscow Exchange MICEX-RTS OJSC		2,500		4,196
NovaTek OAO SP GDR^c		260		26,156
Rosneft Oil Co. OJSC		780		4,812
Rostelecom OJSC		3,420		9,097
RusHydro OJSC		242,000		4,488
Sberbank of Russia		31,040		61,081
Severstal OAO		380		3,658
Sistema JSFC SP GDR^c		476		10,829
Surgutneftegas OJSC		10,000		7,010
Tatneft OAO Class S		4,100		25,428
Uralkali OJSC		1,140		4,210
VTB Bank OJSC		14,740,000		15,184

				260,209
SOUTH AFRICA — 7.70%
Anglo American Platinum Ltd.^a,b		150		6,249
AngloGold Ashanti Ltd.^a		1,232		20,973
Aspen Pharmacare Holdings Ltd.		810		23,279
Assore Ltd.		80		2,367
Bidvest Group Ltd.		840		22,219
Coronation Fund Managers Ltd.		904		8,500
Discovery Ltd.		1,046		9,653
Life Healthcare Group Holdings Ltd.		2,630		11,074
Massmart Holdings Ltd.		318		3,910
Mr. Price Group Ltd.		692		13,319
MTN Group Ltd.		2,316		52,490
Nampak Ltd.		1,646		6,601
Naspers Ltd. Class N		1,110		141,474
Netcare Ltd.		2,136		6,487


44		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS GROWTH ETF

August 31, 2014


Security	Shares		Value

Northam Platinum Ltd.^a		829	$	3,328
Pick n Pay Stores Ltd.		754		4,006
Rand Merchant Insurance Holdings Ltd.		1,164		3,688
Remgro Ltd.		1,278		29,260
Sanlam Ltd.		5,518		34,243
Sappi Ltd.^a		985		4,075
Shoprite Holdings Ltd.		1,234		17,108
SPAR Group Ltd. (The)		516		6,325
Truworths International Ltd.		1,282		8,968
Woolworths Holdings Ltd.		2,182		16,302

				455,898
SOUTH KOREA — 15.40%
AmorePacific Corp.		12		24,972
AmorePacific Group		8		8,348
Celltrion Inc.^a		179		7,353
Cheil Worldwide Inc.^a		180		4,074
CJ CheilJedang Corp.		24		8,947
CJ Corp.		44		7,768
Coway Co. Ltd.		132		11,079
Daewoo Engineering & Construction Co. Ltd.^a		420		3,529
Daewoo International Corp.		100		3,674
Daewoo Securities Co. Ltd.^a		420		4,888
Daewoo Shipbuilding & Marine Engineering Co. Ltd.		100		2,451
Doosan Corp.		34		4,041
Doosan Infracore Co. Ltd.^a		224		2,618
E-Mart Co. Ltd.		60		14,439
Halla Visteon Climate Control Corp.		80		4,253
Hankook Tire Co. Ltd.		206		10,686
Hotel Shilla Co. Ltd.		104		12,206
Hyundai Glovis Co. Ltd.		36		10,740
Hyundai Mipo Dockyard Co. Ltd.		18		2,290
Hyundai Wia Corp.		44		9,677
Korea Aerospace Industries Ltd.		100		3,545
Korea Electric Power Corp.		710		29,550
Korea Gas Corp.^a		81		4,506
Korean Air Lines Co. Ltd.^a		80		2,876
Kumho Petro Chemical Co. Ltd.		48		3,849
LG Display Co. Ltd.^a		700		24,197
LG Electronics Inc.		302		22,517
LG Household & Health Care Ltd.		26		13,154
LG Innotek Co. Ltd.^a		30		3,979
LG Uplus Corp.		720		7,775


Security	Shares		Value

Lotte Chemical Corp.		46	$	7,417
Lotte Confectionery Co. Ltd.		2		4,280
LS Industrial Systems Co. Ltd.		46		2,840
NAVER Corp.		80		60,595
NCsoft Corp.		44		6,292
OCI Co. Ltd.^a		50		7,175
ORION Corp.		10		8,610
Paradise Co. Ltd.		154		5,969
S1 Corp.		17		1,241
Samsung C&T Corp.		357		26,266
Samsung Electro-Mechanics Co. Ltd.		134		7,255
Samsung Electronics Co. Ltd.		306		372,409
Samsung Engineering Co. Ltd.^a		82		5,168
Samsung Life Insurance Co. Ltd.		164		17,226
Samsung SDI Co. Ltd.		73		10,907
Samsung Securities Co. Ltd.		160		7,819
Samsung Techwin Co. Ltd.		102		4,290
SK C&C Co. Ltd.		52		10,898
SK Hynix Inc.^a		1,574		70,476

				911,114
TAIWAN — 11.51%
Acer Inc.^a		4,000		3,312
Cathay Financial Holding Co. Ltd.		29,920		51,050
Chailease Holding Co. Ltd.		2,420		6,542
Cheng Shin Rubber Industry Co. Ltd.		4,900		11,311
China Airlines Ltd.^a		20,000		6,691
China Steel Corp.		28,560		24,652
Delta Electronics Inc.		6,000		42,154
Epistar Corp.		2,000		4,349
EVA Airways Corp.^a		6,000		3,011
Formosa Chemicals & Fibre Corp.		6,000		14,935
Formosa Petrochemical Corp.		4,000		10,104
Formosa Plastics Corp.		12,000		31,114
Giant Manufacturing Co. Ltd.		2,000		16,627
Hiwin Technologies Corp.		52		508
HTC Corp.		2,000		9,200
MediaTek Inc.		4,000		66,844
Nan Ya Plastics Corp.		14,000		33,021
President Chain Store Corp.		2,000		15,155
Standard Foods Corp.		2,507		6,441
Taiwan Semiconductor Manufacturing Co. Ltd.		70,000		290,393
Uni-President Enterprises Co.		13,483		24,674
Vanguard International Semiconductor Corp.		2,000		2,927


CONSOLIDATED SCHEDULES OF INVESTMENTS			45

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS GROWTH ETF

August 31, 2014


Security	Shares		Value

Yang Ming Marine Transport Corp.^a		6,000	$	2,700
Yulon Motor Co. Ltd.		2,000		3,212

				680,927
THAILAND — 2.34%
Advanced Information Service PCL NVDR		2,800		18,322
Airports of Thailand PCL NVDR		1,400		10,388
Bangkok Dusit Medical Services PCL NVDR		10,000		6,105
BEC World PCL NVDR		3,200		4,759
Central Pattana PCL NVDR		4,400		6,647
Charoen Pokphand Foods PCL NVDR		5,600		5,172
CP All PCL NVDR		12,800		19,036
Glow Energy PCL NVDR		1,400		3,835
Home Product Center PCL NVDR		12,266		4,032
Indorama Ventures PCL NVDR		4,200		3,551
IRPC PCL NVDR		30,000		3,118
Kasikornbank PCL Foreign		1,600		11,321
Minor International PCL NVDR		4,800		5,298
Siam Cement (The) PCL Foreign		1,200		16,531
Siam Commercial Bank PCL NVDR		2,400		14,051
TMB Bank PCL NVDR		34,800		3,312
True Corp. PCL NVDR^a		7,776		2,800

				138,278
TURKEY — 1.60%
Akbank TAS		3,174		12,120
Anadolu Efes Biracilik ve Malt Sanayii AS^a		602		8,006
Arcelik AS		666		3,997
BIM Birlesik Magazalar AS		620		14,595
Coca-Cola Icecek AS		196		4,632
Eregli Demir ve Celik Fabrikalari TAS		3,828		7,451
Haci Omer Sabanci Holding AS		1,049		4,861
TAV Havalimanlari Holding AS		512		4,259
Turk Hava Yollari AO^a		586		1,860
Turkcell Iletisim Hizmetleri AS^a		694		4,068
Turkiye Garanti Bankasi AS		6,594		25,882
Ulker Biskuvi Sanayi AS		386		2,862

				94,593
UNITED ARAB EMIRATES — 0.54%
Abu Dhabi Commercial Bank PJSC		339		739
Aldar Properties PJSC		9,687		10,523
Arabtec Holding Co.^a		3,690		4,732
DP World Ltd.		189		3,549


Security	Shares		Value

Dubai Financial Market PJSC		6,389	$	5,914
Emaar Properties PJSC		2,397		6,689

				32,146

TOTAL COMMON STOCKS
(Cost: $4,935,577)				5,631,569

PREFERRED STOCKS — 4.49%

BRAZIL — 3.65%
Banco Bradesco SA		2,270		41,432
Companhia Brasileira de Distribuicao		400		20,365
Itau Unibanco Holding SA		7,942		143,254
Lojas Americanas SA		1,500		10,619

				215,670
CHILE — 0.16%
Embotelladora Andina SA Class B		632		2,072
Sociedad Quimica y Minera de Chile SA Series B		262		7,172

				9,244
COLOMBIA — 0.45%
Bancolombia SA		1,202		19,047
Grupo Aval Acciones y Valores SA		10,148		7,591

				26,638
RUSSIA — 0.23%
AK Transneft OAO		4		8,800
Sberbank of Russia		3,400		5,070

				13,870

TOTAL PREFERRED STOCKS
(Cost: $248,922)				265,422

WARRANTS — 0.00%

THAILAND — 0.00%
Indorama Ventures PCL NVDR (Expires 8/24/17)^a		420		—
Indorama Ventures PCL NVDR (Expires 8/24/18)^a		323		—

				—

TOTAL WARRANTS
(Cost: $0)				—


46		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS GROWTH ETF

August 31, 2014


Security	Shares		Value

SHORT-TERM INVESTMENTS — 1.71%

MONEY MARKET FUNDS — 1.71%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^d,e,f		92,272	$	92,272
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		5,809		5,809
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^d,e		3,235		3,235

				101,316

TOTAL SHORT-TERM INVESTMENTS
(Cost: $101,316)				101,316

TOTAL INVESTMENTS IN SECURITIES — 101.36%
(Cost: $5,285,815)				5,998,307
Other Assets, Less Liabilities — (1.36)%				(80,594	)

NET ASSETS — 100.00%			$	5,917,713

CPO — Certificates of Participation (Ordinary)

NVDR — Non-Voting Depositary Receipts

NVS — Non-Voting Shares

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 1.

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

^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 1.

See notes to consolidated financial statements.


CONSOLIDATED SCHEDULES OF INVESTMENTS			47

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 96.24%

BRAZIL — 5.44%
AMBEV SA		1,698,300	$	12,371,697
CCR SA		1,032,300		9,347,008
Cielo SA		1,069,240		20,051,087
EcoRodovias Infraestrutura e Logistica SA		1,631,700		10,428,062
Estacio Participacoes SA		133,200		1,769,809
Kroton Educacional SA		99,900		2,993,584
Natura Cosmeticos SA		268,200		4,915,592
Souza Cruz SA		899,100		8,422,219
Totvs SA		569,700		10,403,317
Tractebel Energia SA		1,065,600		17,863,581
Transmissora Alianca de Energia Eletrica SA		569,500		5,940,484
Ultrapar Participacoes SA		333,400		8,595,940

				113,102,380
CHILE — 4.22%
AES Gener SA		5,367,294		2,743,909
Aguas Andinas SA Series A		20,852,127		13,076,829
Banco de Chile		197,750,718		24,132,008
Banco de Credito e Inversiones		130,536		7,114,367
Colbun SA		45,019,602		11,782,438
Compania Cervecerias Unidas SA		163,503		1,756,150
CorpBanca SA		559,842,264		6,879,225
Empresa Nacional de Electricidad SA		7,725,933		11,803,668
Empresa Nacional de Telecomunicaciones SA		154,569		1,773,153
S.A.C.I. Falabella SA		242,091		1,823,133
Vina Concha y Toro SA		2,479,851		4,836,422

				87,721,302
CHINA — 20.49%
AAC Technologies Holdings Inc.^a		1,014,000		6,613,769
Agricultural Bank of China Ltd. Class H		13,986,000		6,460,505
Bank of China Ltd. Class H		38,295,000		17,788,302
Bank of Communications Co. Ltd. Class H		2,345,000		1,712,573
Beijing Enterprises Holdings Ltd.		1,831,500		15,786,043
China BlueChemical Ltd. Class H		2,022,000		996,631


Security	Shares		Value

China CITIC Bank Corp. Ltd. Class H		3,663,000	$	2,311,190
China Communications Services Corp. Ltd. Class H		11,538,000		5,567,908
China Construction Bank Corp. Class H		19,314,000		14,354,385
China Gas Holdings Ltd.^a		6,780,000		12,072,541
China Life Insurance Co. Ltd. Class H		1,340,000		3,847,022
China Mengniu Dairy Co. Ltd.		2,345,000		10,877,564
China Minsheng Banking Corp. Ltd. Class H		999,100		938,491
China Mobile Ltd.		2,679,000		33,322,658
China Pacific Insurance (Group) Co. Ltd. Class H		666,000		2,500,674
China Petroleum & Chemical Corp. Class H		12,450,000		12,626,465
China Resources Enterprise Ltd.^a		670,000		1,802,481
China Resources Gas Group Ltd.		7,326,000		21,315,884
China Resources Power Holdings Co. Ltd.		3,350,000		10,136,255
China Telecom Corp. Ltd. Class H		6,704,000		4,143,424
China Vanke Co. Ltd.^a,b		1,005,576		1,883,959
CSPC Pharmaceutical Group Ltd.		3,330,000		2,784,256
ENN Energy Holdings Ltd.		332,000		2,345,374
Guangdong Investment Ltd.		10,656,000		12,883,198
Haier Electronics Group Co. Ltd.		1,052,000		3,040,561
Hanergy Solar Group Ltd.^a,b		28,638,000		4,692,846
Hengan International Group Co. Ltd.		1,676,000		17,873,383
Huaneng Power International Inc. Class H		666,000		800,903
Industrial and Commercial Bank of China Ltd. Class H		17,316,000		11,484,196
Inner Mongolia Yitai Coal Co. Ltd. Class B		3,896,127		6,580,559
Jiangsu Expressway Co. Ltd. Class H		10,724,000		12,218,205
Kunlun Energy Co. Ltd.^a		3,404,000		5,621,982
Lenovo Group Ltd.		12,216,000		18,662,534


48		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value

PetroChina Co. Ltd. Class H		3,336,000	$	4,734,876
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		1,340,000		1,357,264
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		6,393,600		13,116,938
Shenzhou International Group Holdings Ltd.		2,997,000		9,338,858
Sihuan Pharmaceutical Holdings Group Ltd.		9,657,000		6,466,950
Sino Biopharmaceutical Ltd.		10,704,000		9,861,301
Sinopec Engineering Group Co. Ltd.		1,665,000		1,899,137
Sinopharm Group Co. Ltd. Class H		399,600		1,394,706
SOHO China Ltd.		15,151,500		12,394,665
Sun Art Retail Group Ltd.^a		17,149,500		20,468,362
Tencent Holdings Ltd.		999,000		16,305,943
Tingyi (Cayman Islands) Holding Corp.		5,548,000		15,569,892
Tsingtao Brewery Co. Ltd. Class H		1,020,000		7,745,269
Uni-President China Holdings Ltd.^a		3,330,000		3,007,684
Want Want China Holdings Ltd.		1,665,000		2,064,560
Zhejiang Expressway Co. Ltd. Class H		12,734,000		12,668,031
ZTE Corp. Class H^a		799,200		1,800,485

				426,241,642
COLOMBIA — 1.11%
Almacenes Exito SA		180,486		3,072,623
Corporacion Financiera Colombiana SA NVS		195,138		4,160,204
Ecopetrol SA		6,221,772		10,783,389
Grupo Argos SA		412,254		5,110,063

				23,126,279
CZECH REPUBLIC — 0.51%
O2 Czech Republic AS		757,908		10,647,756

				10,647,756
EGYPT — 0.72%
Commercial International Bank (Egypt) SAE		2,037,866		13,170,508
Telecom Egypt Co.		849,842		1,712,746

				14,883,254


Security	Shares		Value

INDIA — 2.41%
Cipla Ltd.		1,559,772	$	13,217,448
Dabur India Ltd.		2,872,791		11,012,050
Divi’s Laboratories Ltd.		181,152		4,671,351
Dr. Reddy’s Laboratories Ltd.		119,214		5,791,545
Hindustan Unilever Ltd.		101,898		1,246,773
Sun Pharmaceuticals Industries Ltd.		920,412		12,972,682
Tata Consultancy Services Ltd.		27,639		1,148,900

				50,060,749
INDONESIA — 4.31%
PT Astra Agro Lestari Tbk		1,712,300		3,732,733
PT Bank Central Asia Tbk		26,540,100		25,411,337
PT Bank Danamon Indonesia Tbk		14,418,900		4,622,430
PT Bank Mandiri (Persero) Tbk		7,758,900		6,881,692
PT Bank Negara Indonesia (Persero) Tbk		7,559,100		3,457,250
PT Indocement Tunggal Prakarsa Tbk		569,100		1,179,797
PT Indofood Sukses Makmur Tbk		4,861,800		2,857,437
PT Jasa Marga (Persero) Tbk		19,613,700		10,395,806
PT Kalbe Farma Tbk		17,882,100		2,537,661
PT Perusahaan Gas Negara (Persero) Tbk		4,229,100		2,096,925
PT Telekomunikasi Indonesia (Persero) Tbk		57,076,200		13,003,469
PT Unilever Indonesia Tbk		5,094,900		13,513,082

				89,689,619
MALAYSIA — 8.53%
Astro Malaysia Holdings Bhd		971,500		1,010,952
Axiata Group Bhd		2,763,900		6,076,722
Berjaya Sports Toto Bhd		3,463,297		4,131,344
Hong Leong Bank Bhd		3,796,200		17,343,046
IHH Healthcare Bhd		15,817,500		24,489,023
Malayan Banking Bhd		9,324,000		29,877,030
Maxis Bhd		9,856,800		20,482,881
Petronas Chemicals Group Bhd		3,363,300		6,722,332
Petronas Dagangan Bhd		1,964,700		12,528,702
Petronas Gas Bhd		1,665,000		12,043,782
Public Bank Bhd		5,128,280		31,368,413
Sime Darby Bhd		2,412,600		7,240,861
Tenaga Nasional Bhd		1,065,600		4,185,320

				177,500,408


CONSOLIDATED SCHEDULES OF INVESTMENTS			49

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value

MEXICO — 1.73%
Arca Continental SAB de CV		268,000	$	1,970,109
Coca-Cola FEMSA SAB de CV Series L		266,400		2,904,311
El Puerto de Liverpool SAB de CV Series C1		1,565,100		17,846,844
Fibra Uno Administracion SAB de CV		632,700		2,271,826
Grupo Aeroportuario del Pacifico SAB de CV Series B		699,300		4,854,534
Grupo Aeroportuario del Sureste SAB de CV Series B		233,100		2,988,023
Wal-Mart de Mexico SAB de CV Series V		1,132,200		3,082,584

				35,918,231
PERU — 1.25%
Compania de Minas Buenaventura SA SP ADR		180,819		2,632,724
Credicorp Ltd.		150,183		23,288,878

				25,921,602
PHILIPPINES — 4.51%
Aboitiz Power Corp.		3,962,700		3,408,286
Bank of the Philippine Islands		6,360,304		13,858,460
BDO Unibank Inc.		1,072,260		2,225,677
International Container Terminal Services Inc.		2,920,410		7,562,254
Jollibee Foods Corp.		1,641,700		6,777,661
Metropolitan Bank & Trust Co.		2,685,390		5,293,791
Philippine Long Distance Telephone Co.		692,639		54,807,444

				93,933,573
POLAND — 0.22%
Bank Zachodni WBK SA		40,293		4,669,040

				4,669,040
QATAR — 1.48%
Commercial Bank of Qatar QSC (The)		139,527		2,609,521
Ooredoo QSC		92,907		2,916,421
Qatar Electricity & Water Co. QSC		263,070		12,354,435
Qatar Islamic Bank SAQ		295,704		9,664,060
Qatar National Bank SAQ		58,941		3,269,824

				30,814,261


Security	Shares		Value

RUSSIA — 0.83%
LUKOIL OAO		205,128	$	11,418,936
Rosneft Oil Co. OJSC		965,700		5,957,429

				17,376,365
SOUTH AFRICA — 6.99%
Aspen Pharmacare Holdings Ltd.		313,353		9,005,429
Bidvest Group Ltd.		186,147		4,923,827
Discovery Ltd.		495,171		4,569,742
Foschini Group Ltd. (The)		175,491		1,899,555
Growthpoint Properties Ltd.		961,631		2,278,532
Liberty Holdings Ltd.		344,988		4,235,716
Life Healthcare Group Holdings Ltd.		4,128,867		17,384,458
Mediclinic International Ltd.		133,533		1,161,135
Mr. Price Group Ltd.		151,848		2,922,625
MTN Group Ltd.		57,609		1,305,647
Nedbank Group Ltd.		386,613		8,313,594
Pick n Pay Stores Ltd.^a		870,462		4,624,283
PPC Ltd.		1,791,540		5,577,401
Redefine Properties Ltd.		7,291,019		6,553,787
Remgro Ltd.		624,708		14,302,837
Sasol Ltd.		101,232		5,885,037
Shoprite Holdings Ltd.		618,714		8,577,898
SPAR Group Ltd. (The)		399,267		4,894,262
Standard Bank Group Ltd.		1,678,986		21,785,741
Tiger Brands Ltd.		120,546		3,479,664
Truworths International Ltd.		568,431		3,976,462
Vodacom Group Ltd.		645,687		7,792,272

				145,449,904
SOUTH KOREA — 11.44%
AmorePacific Corp.		12,321		25,639,637
AmorePacific Group		5,328		5,559,469
CJ CheilJedang Corp.		11,988		4,469,120
Dongbu Insurance Co. Ltd.		236,763		14,290,543
E-Mart Co. Ltd.		13,611		3,275,392
Hyundai Marine & Fire Insurance Co. Ltd.		458,541		14,087,038
Hyundai Wia Corp.		11,514		2,532,296
Kangwon Land Inc.		360,639		12,822,167
Korea Electric Power Corp.		101,565		4,227,075
KT Corp.		376,623		13,000,449
KT&G Corp.		342,324		32,039,595
LG Household & Health Care Ltd.		2,997		1,516,309


50		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value

Lotte Shopping Co. Ltd.		8,658	$	2,834,909
NAVER Corp.		2,942		2,228,370
ORION Corp.		7,992		6,881,026
S1 Corp.		150,516		10,984,944
Samsung Electro-Mechanics Co. Ltd.		14,985		811,358
Samsung Electronics Co. Ltd.		6,724		8,183,260
Samsung Fire & Marine Insurance Co. Ltd.		46,287		12,667,925
Samsung Life Insurance Co. Ltd.		103,563		10,877,715
Samsung SDI Co. Ltd.		67,599		10,100,349
SK C&C Co. Ltd.		40,293		8,444,462
SK Telecom Co. Ltd.		67,599		18,200,628
Yuhan Corp.		72,576		12,382,906

				238,056,942
TAIWAN — 16.20%
Advanced Semiconductor Engineering Inc.		1,341,000		1,671,175
Advantech Co. Ltd.		2,680,000		25,149,797
Asia Cement Corp.		9,482,125		13,006,377
ASUSTeK Computer Inc.		842,000		8,817,049
Chicony Electronics Co. Ltd.		2,676,960		8,776,771
China Airlines Ltd.^b		17,316,828		5,793,422
China Steel Corp.		16,775,517		14,479,796
Chunghwa Telecom Co. Ltd.		8,991,000		27,944,126
Compal Electronics Inc.		1,332,000		1,185,367
Delta Electronics Inc.		670,000		4,707,181
EVA Airways Corp.^b		2,664,000		1,336,880
Far EasTone Telecommunications Co. Ltd.		9,417,000		20,068,681
First Financial Holding Co. Ltd.		12,321,119		7,625,858
Formosa Chemicals & Fibre Corp.		333,300		829,612
Formosa Petrochemical Corp.		2,997,000		7,570,081
Formosa Plastics Corp.		2,823,840		7,321,644
Formosa Taffeta Co. Ltd.		4,692,000		4,983,891
Foxconn Technology Co. Ltd.		3,146,850		7,895,945
Hua Nan Financial Holdings Co. Ltd.		22,289,474		13,832,814
Kinsus Interconnect Technology Corp.		1,998,000		8,455,764
Lite-On Technology Corp.		11,322,511		18,769,523
MediaTek Inc.		333,000		5,564,761
President Chain Store Corp.		1,340,000		10,154,062


Security	Shares		Value

ScinoPharm Taiwan Ltd.		2,197,814	$	4,485,260
Standard Foods Corp.		737,400		1,894,659
Synnex Technology International Corp.		4,662,000		7,112,199
Taiwan Cement Corp.		4,662,000		7,408,541
Taiwan Cooperative Financial Holding Co. Ltd.		38,808,769		21,682,690
Taiwan Mobile Co. Ltd.		7,372,000		23,504,177
Taiwan Semiconductor Manufacturing Co. Ltd.		7,326,000		30,391,730
Transcend Information Inc.		1,665,000		5,598,183
U-Ming Marine Transport Corp.		4,357,000		7,171,657
United Microelectronics Corp.		3,996,000		1,824,841

				337,014,514
THAILAND — 2.30%
Advanced Information Service PCL NVDR		934,100		6,112,301
Bangkok Bank PCL NVDR		1,528,000		9,807,138
Bangkok Dusit Medical Services PCL NVDR		11,306,500		6,902,841
CP All PCL NVDR		5,825,500		8,663,471
Kasikornbank PCL NVDR		752,300		5,299,546
PTT Exploration & Production PCL NVDR		764,800		3,938,936
PTT PCL NVDR		709,000		7,125,517

				47,849,750
UNITED ARAB EMIRATES — 1.55%
DP World Ltd.		503,496		9,455,655
First Gulf Bank PJSC		934,731		4,644,326
National Bank of Abu Dhabi PJSC		4,775,112		18,200,560

				32,300,541

TOTAL COMMON STOCKS
(Cost: $1,844,307,910)				2,002,278,112

PREFERRED STOCKS — 3.23%

BRAZIL — 0.44%
AES Tiete SA		775,100		6,969,682
Companhia Energetica de Minas Gerais		99,985		856,165
Companhia Paranaense de Energia Class B		68,800		1,219,463

				9,045,310


CONSOLIDATED SCHEDULES OF INVESTMENTS			51

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value

COLOMBIA — 1.91%
Banco Davivienda SA		810,855	$	13,482,903
Grupo Argos SA		444,555		5,422,391
Grupo de Inversiones Suramericana SA		920,079		20,910,341

				39,815,635
RUSSIA — 0.38%
AK Transneft OAO		2,026		4,457,099
Surgutneftegas OJSC		4,662,000		3,431,040

				7,888,139
SOUTH KOREA — 0.50%
Samsung Electronics Co. Ltd.		10,323		10,384,595

				10,384,595

TOTAL PREFERRED STOCKS
(Cost: $59,018,294)				67,133,679

SHORT-TERM INVESTMENTS — 2.14%

MONEY MARKET FUNDS — 2.14%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		41,908,947		41,908,947
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		2,638,283		2,638,283

				44,547,230

TOTAL SHORT-TERM INVESTMENTS
(Cost: $44,547,230)				44,547,230

TOTAL INVESTMENTS IN SECURITIES — 101.61%
(Cost: $1,947,873,434)				2,113,959,021
Other Assets, Less Liabilities — (1.61)%				(33,595,711	)

NET ASSETS — 100.00%			$	2,080,363,310

NVDR — Non-Voting Depositary Receipts

NVS — Non-Voting Shares

SP ADR — Sponsored American Depositary Receipts

^a	All or a portion of this security represents a security on loan. See Note 1.

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to consolidated financial statements.


52		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 98.78%

BRAZIL — 5.08%
Aliansce Shopping Centers SA		12,500	$	116,534
Alupar Investimento SA Units		4,800		39,643
Arezzo Industria e Comercio SA		5,700		81,849
Autometal SA		4,200		36,246
Banco ABC Brasil SA^a		163		1,049
Banco Pan SA^a		14,689		22,977
Brasil Brokers Participacoes SA		14,000		22,650
Brasil Insurance Participacoes e Administracao SA		6,400		22,853
Brazil Pharma SA^a		8,400		15,692
Companhia Hering SA		9,600		120,088
Direcional Engenharia SA		9,200		46,667
Equatorial Energia SA		13,542		159,172
Eternit SA		12,600		47,302
Even Construtora e Incorporadora SA		22,200		67,169
EZ TEC Empreendimentos e Participacoes SA		7,000		77,241
Fleury SA		5,600		40,019
Gafisa SA		37,800		56,931
Helbor Empreendimentos SA		14,040		37,460
Iguatemi Empresa de Shopping Centers SA		5,900		72,512
International Meal Co. Holdings SA		6,200		54,282
Iochpe-Maxion SA		7,000		55,967
Julio Simoes Logistica SA		7,000		37,228
LPS Brasil – Consultoria de Imoveis SA		5,400		26,547
Marfrig Global Foods SA^a		24,900		84,575
Mills Estruturas e Servicos de Engenharia SA		6,600		67,547
MRV Engenharia e Participacoes SA		22,400		91,300
Multiplus SA		5,300		77,692
PDG Realty SA Empreendimentos e Participacoes^a		88,200		58,733
Prumo Logistica SA^a		76,165		36,082
Restoque Comercio e Confeccoes de Roupas SA^a		11,200		45,550
Santos Brasil Participacoes SA Units		4,400		33,685
Sao Martinho SA		5,900		119,685
SLC Agricola SA		4,200		32,492
Smiles SA		4,300		76,101


Security	Shares		Value

Tecnisa SA		16,500	$	46,973
Tegma Gestao Logistica SA		2,700		23,771
TPI – Triunfo Participacoes e Investimentos SA		12,800		35,296
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		5,200		88,311
Vanguarda Agro SA^a		39,310		43,218

				2,219,089
CHILE — 1.15%
Besalco SA		32,595		22,307
Compania SudAmericana de Vapores SA^a		612,458		25,776
E.CL SA		34,912		50,359
Inversiones Aguas Metropolitanas SA		37,310		59,793
Parque Arauco SA		53,937		100,277
SalfaCorp SA		30,432		23,267
Sociedad Matriz SAAM SA		786,147		64,750
Sonda SA		66,935		155,114

				501,643
CHINA — 19.01%
361 Degrees International Ltd.		129,000		37,950
Ajisen (China) Holdings Ltd.^b		42,000		34,683
Anhui Expressway Co. Ltd. Class H		112,000		67,199
Anton Oilfield Services Group^b		106,000		45,545
Anxin-China Holdings Ltd.		224,000		26,301
Asia Cement China Holdings Corp.		119,000		81,993
Asian Citrus Holdings Ltd.		84,000		17,884
Beijing Capital Land Ltd. Class H		126,000		45,522
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.^b		28,000		36,923
Boshiwa International Holding Ltd.^a,c		32,000		3,423
Bosideng International Holdings Ltd.^b		336,000		53,325
BYD Electronic International Co. Ltd.		88,000		81,753
C C Land Holdings Ltd.		159,000		33,441
Carnival Group International Holdings Ltd.^a,b		682,000		96,798
China Datang Corp. Renewable Power Co. Ltd. Class H		210,000		32,245
China Dongxiang Group Co.		320,000		68,954
China High Speed Transmission Equipment Group Co. Ltd.^a		96,000		83,364


CONSOLIDATED SCHEDULES OF INVESTMENTS			53

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

China Huiyuan Juice Group Ltd.^a		63,000	$	27,232
China Lilang Ltd.		106,000		71,532
China LotSynergy Holdings Ltd.^b		640,000		56,154
China Lumena New Materials Corp.^b,c		210,000		30,483
China Medical System Holdings Ltd.		108,000		156,074
China Merchants Land Ltd.		112,000		17,775
China Metal Recycling Holdings Ltd.^a,b,c		12,000		—
China Modern Dairy Holdings Ltd.^a,b		187,000		91,689
China Oil and Gas Group Ltd.		420,000		73,702
China Overseas Grand Oceans Group Ltd.^b		77,000		48,484
China Power International Development Ltd.		239,000		108,859
China Power New Energy Development Co. Ltd.^a		560,000		39,741
China Precious Metal Resources Holdings Co. Ltd.^a,b		408,000		50,012
China Rare Earth Holdings Ltd.^a		448,000		63,586
China Resources and Transportation Group Ltd.^a,b		1,500,000		63,870
China Rongsheng Heavy Industries Group Holdings Ltd.^a,b		320,000		56,154
China Shanshui Cement Group Ltd.^b		126,000		46,335
China Shineway Pharmaceutical Group Ltd.^b		36,000		62,430
China Singyes Solar Technologies Holdings Ltd.^b		54,000		89,603
China South City Holdings Ltd.		280,000		139,817
China Suntien Green Energy Corp. Ltd. Class H		154,000		46,497
China Travel International Investment Hong Kong Ltd.		446,000		140,991
China Vanadium Titano-Magnetite Mining Co. Ltd.^b		195,000		21,890
China Water Affairs Group Ltd.		150,000		53,999
China Yongda Automobiles Services Holdings Ltd.^b		51,000		44,616
China Yurun Food Group Ltd.^a,b		112,000		54,626
China ZhengTong Auto Services Holdings Ltd.		112,000		59,829
Chinasoft International Ltd.^a,b		168,000		61,129
Chongqing Machinery & Electric Co. Ltd. Class H		280,000		41,909


Security	Shares		Value

CIMC Enric Holdings Ltd.		56,000	$	61,996
CITIC Dameng Holdings Ltd.^a		392,000		31,359
CITIC Resources Holdings Ltd.^a,b		336,000		54,193
Comba Telecom Systems Holdings Ltd.^a,b		173,000		75,226
Coolpad Group Ltd.		224,000		48,556
Cosco International Holdings Ltd.		196,000		95,596
Dah Chong Hong Holdings Ltd.		105,000		65,166
Dazhong Transportation Group Co. Ltd. Class B		75,200		48,955
Digital China Holdings Ltd.		82,000		79,459
Dongyue Group Ltd.		166,000		69,397
EverChina International Holdings Co. Ltd.^a		510,000		25,006
Fantasia Holdings Group Co. Ltd.^b		238,500		28,619
FDG Electric Vehicles Ltd.^a,b		640,000		45,418
First Tractor Co. Ltd. Class H		92,000		63,152
Fufeng Group Ltd.		88,400		35,017
Goldin Properties Holdings Ltd.^a,b		126,000		67,307
Greatview Aseptic Packaging Co. Ltd.		118,000		91,353
Hangzhou Steam Turbine Co. Ltd. Class B		39,080		46,441
Harbin Electric Co. Ltd. Class H		108,000		64,241
HC International Inc.^a,b		50,000		96,127
Hengdeli Holdings Ltd.		169,600		30,637
Hi Sun Technology (China) Ltd.^a,b		144,000		34,374
Hisense Kelon Electrical Holdings Co. Ltd. Class H^a		45,000		56,438
Hopewell Highway Infrastructure Ltd.		64,000		32,041
Hopson Development Holdings Ltd.^a		48,000		48,371
Hua Han Bio-Pharmaceutical Holdings Ltd. Class H		232,000		73,640
Huabao International Holdings Ltd.		185,000		134,391
Hunan Nonferrous Metal Corp. Ltd. Class H^a		212,000		75,498
Jiangsu Future Land Co. Ltd. Class B		74,700		37,873
Ju Teng International Holdings Ltd.		98,000		56,776
Kaisa Group Holdings Ltd.^b		154,000		56,631
Kingdee International Software Group Co. Ltd.^a		198,000		63,870
KWG Property Holdings Ltd.^b		124,500		90,441
Labixiaoxin Snacks Group Ltd.^a,b		158,000		27,726


54		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Lao Feng Xiang Co. Ltd. Class B		21,900	$	60,970
Li Ning Co. Ltd.^a,b		77,000		42,920
Lijun International Pharmaceutical (Holding) Co. Ltd.		192,000		97,856
Lonking Holdings Ltd.^b		168,000		29,481
Luthai Textile Co. Ltd. Class B		55,800		76,895
MIE Holdings Corp.		112,000		18,787
Mingfa Group International Co. Ltd.^a		282,000		76,048
Minth Group Ltd.^b		72,000		153,287
MMG Ltd.		128,000		46,575
NetDragon Websoft Inc.		21,000		40,590
New World Department Store China Ltd.		51,000		21,847
North Mining Shares Co. Ltd.^a,b		1,280,000		57,805
NVC Lighting Holdings Ltd.		108,000		24,665
Peak Sport Products Co. Ltd.		186,000		56,159
Phoenix Satellite Television Holdings Ltd.		156,000		52,938
Ports Design Ltd.^b		42,000		17,450
Renhe Commercial Holdings Co. Ltd.^a		812,000		37,194
REXLot Holdings Ltd.^b		700,000		80,386
Semiconductor Manufacturing International Corp.^a,b		1,893,000		178,305
Shenguan Holdings Group Ltd.		144,000		52,396
Shenzhen Expressway Co. Ltd. Class H		144,000		91,043
Shenzhen International Holdings Ltd.		79,500		106,477
Shenzhen Investment Ltd.		204,000		65,016
Shougang Concord International Enterprises Co. Ltd.^a		1,460,000		67,818
Shougang Fushan Resources Group Ltd.^b		128,000		35,179
Shunfeng Photovoltaic International Ltd.^a,b		96,000		121,391
Sino Oil And Gas Holdings Ltd.^a		1,330,000		41,186
Sinopec Kantons Holdings Ltd.^b		84,000		70,342
Sinotrans Ltd. Class H		196,000		132,013
Sinotrans Shipping Ltd.^a,b		231,000		72,428
Skyworth Digital Holdings Ltd.		140,000		75,147
Sparkle Roll Group Ltd.^a,b		432,000		23,132
Springland International Holdings		119,000		46,831
Sunac China Holdings Ltd.		126,000		97,709
Sunny Optical Technology Group Co Ltd.^b		56,000		76,303


Security	Shares		Value

Superb Summit International Group Ltd.^a,b		450,000	$	92,901
TCL Communication Technology Holdings Ltd.		56,000		69,439
Tech Pro Technology Development Ltd.^a,b		188,000		106,006
Texhong Textile Group Ltd.^b		21,000		15,255
Tianjin Development Holdings Ltd.		84,000		70,450
Tianjin Port Development Holdings Ltd.		306,000		50,933
Tianneng Power International Ltd.		84,000		30,781
Tibet 5100 Water Resources Holdings Ltd.^b		126,000		41,457
Tong Ren Tang Technologies Co. Ltd. Class H		56,000		78,615
Towngas China Co. Ltd.		96,000		102,315
Travelsky Technology Ltd. Class H		112,000		110,119
V1 Group Ltd.^a,b		392,000		37,935
Vinda International Holdings Ltd.		32,000		49,217
West China Cement Ltd.		496,000		53,119
Wison Engineering Services Co. Ltd.^a,c		112,000		22,891
Xingda International Holdings Ltd.		72,000		26,849
Xinjiang Xinxin Mining Industry Co. Ltd. Class H^a		266,000		61,779
XTEP International Holdings Ltd.		104,000		48,711
Yanchang Petroleum International Ltd.^a,b		570,000		30,154
Yip’s Chemical Holdings Ltd.		42,000		30,294
Yuexiu Real Estate Investment Trust		168,000		86,708
Yuexiu Transport Infrastructure Ltd.		102,000		62,120

				8,300,229
COLOMBIA — 0.15%
Bolsa de Valores de Colombia		5,125,689		66,795

				66,795
CZECH REPUBLIC — 0.11%
Pegas Nonwovens SA		918		27,449
Philip Morris CR AS		42		20,754

				48,203
EGYPT — 0.62%
Orascom Telecom Media And Technology Holding SAE SP GDR^a,b		379,722		269,603

				269,603


CONSOLIDATED SCHEDULES OF INVESTMENTS			55

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

GREECE — 0.78%
Ellaktor SA^a		12,590	$	57,711
Frigoglass SA^a		3,621		15,262
Hellenic Exchanges – Athens Stock Exchange SA Holding		6,730		62,940
Intralot SA^a		9,520		22,195
Marfin Investment Group Holdings SA^a		54,404		28,593
Metka SA		2,902		43,691
Motor Oil (Hellas) Corinth Refineries SA		3,556		38,362
Mytilineos Holdings SA^a		8,895		72,408

				341,162
INDIA — 6.54%
Amtek Auto Ltd.		19,296		74,729
Andhra Bank		42,882		50,776
Ashok Leyland Ltd.^a		199,824		120,033
Bajaj Finance Ltd.		2,119		86,304
Bharat Forge Ltd.		12,795		166,938
Biocon Ltd.		9,207		70,410
CESC Ltd.		11,994		137,472
Cox & Kings Ltd.		22,366		109,655
EID Parry India Ltd.^a		19,334		66,592
Gujarat Fluorochemicals Ltd.		7,756		66,433
Gujarat Gas Co. Ltd.		6,386		46,969
Gujarat Mineral Development Corp. Ltd.		20,594		49,364
Gujarat State Petronet Ltd.		47,500		66,929
GVK Power & Infrastructure Ltd.^a		218,148		49,073
Havells India Ltd.		17,000		79,621
Hexaware Technologies Ltd.		26,508		69,852
Housing Development & Infrastructure Ltd.^a		30,968		46,136
IIFL Holdings Ltd.		31,083		71,381
Indiabulls Housing Finance Ltd.		14,574		90,667
Indian Hotels Co. Ltd.^a		52,728		83,897
Indraprastha Gas Ltd.		14,042		87,358
Jammu & Kashmir Bank Ltd. (The)		3,864		94,779
Jindal Saw Ltd.		31,094		39,713
Just Dial Ltd.^a		2,296		62,334
Manappuram Finance Ltd.		58,164		24,874
MAX India Ltd.		22,092		118,506
MindTree Ltd.		8,524		158,266
PTC India Ltd.		50,208		72,151
Redington India Ltd.		35,392		61,242


Security	Shares		Value

SE Investments Ltd.		13,709	$	75,198
Syndicate Bank		29,834		58,680
Tata Global Beverages Ltd.		30,940		76,738
Thermax Ltd.		8,521		120,611
Torrent Pharmaceuticals Ltd.		8,540		117,200
Voltas Ltd.		21,622		87,176

				2,858,057
INDONESIA — 3.56%
PT ACE Hardware Indonesia Tbk		714,000		57,071
PT Agung Podomoro Land Tbk		844,500		27,290
PT Alam Sutera Realty Tbk		916,500		39,959
PT Arwana Citramulia Tbk		778,300		67,534
PT Bank Bukopin Tbk		1,082,200		68,461
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk		308,000		22,907
PT Bank Tabungan Negara (Persero) Tbk		724,423		69,052
PT Bumi Resources Tbk^a		1,113,000		18,554
PT Ciputra Development Tbk		916,300		95,175
PT Gajah Tunggal Tbk		161,000		24,362
PT Garuda Indonesia (Persero) Tbk^a		644,409		23,854
PT Hanson International Tbk^a		1,015,000		57,702
PT Japfa Comfeed Indonesia Tbk		429,000		47,310
PT Kawasan Industri Jababeka Tbk		1,971,275		47,691
PT Medco Energi Internasional Tbk		164,900		51,454
PT Mitra Adiperkasa Tbk		77,000		39,660
PT MNC Investama Tbk		1,967,000		63,395
PT MNC Sky Vision Tbk		112,985		15,744
PT Multipolar Tbk		766,152		51,743
PT Pakuwon Jati Tbk		2,088,000		77,647
PT Perusahaan Perkebunan London Sumatra Indonesia Tbk		224,000		35,809
PT Ramayana Lestari Sentosa Tbk		369,000		31,387
PT Sampoerna Agro Tbk		154,000		27,779
PT Sentul City Tbk^a		2,065,000		21,007
PT Sigmagold Inti Perkasa Tbk^a		892,500		33,724
PT Sugih Energy Tbk^a		1,511,300		54,005
PT Summarecon Agung Tbk		1,060,800		121,519
PT Surya Semesta Internusa Tbk		432,450		29,945
PT Timah (Persero) Tbk		721,096		88,153
PT Trada Maritime Tbk^a		483,000		76,182
PT Wijaya Karya (Persero) Tbk		272,000		66,736

				1,552,811


56		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

MALAYSIA — 4.74%
Bursa Malaysia Bhd		32,300	$	82,595
Carlsberg Brewery Malaysia Bhd		22,500		89,229
DRB-Hicom Bhd		125,000		87,643
Eastern & Oriental Bhd		100,000		90,102
Hibiscus Petroleum Bhd^a		56,000		27,360
IGB Corp. Bhd		129,900		118,278
IJM Land Bhd		78,200		81,872
KNM Group Bhd^a		201,600		61,081
KPJ Healthcare Bhd		100,150		121,693
Magnum Bhd		84,800		82,594
Mah Sing Group Bhd		82,620		64,219
Malaysian Airline System Bhd^a		625,600		49,619
Malaysian Pacific Industries Bhd		70,000		126,586
Malaysian Resources Corp. Bhd		154,000		83,058
Media Prima Bhd		95,200		68,863
OSK Holdings Bhd		108,387		78,058
POS Malaysia Bhd		71,800		110,479
QL Resources Bhd		98,700		103,961
Sarawak Oil Palms Bhd		29,400		56,897
Scomi Group Bhd^a		451,800		58,052
Sunway Real Estate Investment Trust Bhd		191,700		88,795
TIME dotCom Bhd^a		58,400		90,416
Top Glove Corp. Bhd		57,700		87,685
Wah Seong Corp. Bhd		109,946		66,275
WCT Holdings Bhd		139,890		94,532

				2,069,942
MEXICO — 2.65%
Alsea SAB de CV^a,b		42,659		147,172
Axtel SAB de CV CPO^a,b		105,000		32,844
Banregio Grupo Financiero SAB de CV		16,800		94,847
Bolsa Mexicana de Valores SAB de CV		37,300		79,817
Concentradora Fibra Hotelera Mexicana SAB de CV		43,300		75,536
Consorcio ARA SAB de CV^a		107,800		49,219
Corporacion Geo SAB de CV Series B^a,c		38,700		—
Corporacion Inmobiliaria Vesta SAB de CV		40,200		87,407
Empresas ICA SAB de CV^a,b		47,700		88,428
Grupo Aeromexico SAB de CV^a,b		46,500		75,144


Security	Shares		Value

Grupo Aeroportuario del Centro Norte SAB de CV^b		20,700	$	88,512
Grupo Herdez SAB de CV		17,900		50,132
Industrias CH SAB de CV Series B^a		9,600		53,046
Macquarie Mexico Real Estate Management SA de CV		47,600		95,415
TF Administradora Industrial S de RL SAB de CV		37,700		86,325
TV Azteca SAB de CV CPO		96,600		51,863
Urbi Desarrollos Urbanos SAB de CV^a,b,c		124,600		—

				1,155,707
PHILIPPINES — 1.18%
Belle Corp.		615,933		67,103
Cebu Air Inc.		24,080		34,463
Cosco Capital Inc.		178,500		33,776
EEI Corp.		239,772		61,263
Filinvest Land Inc.		1,572,000		55,885
First Gen Corp.		139,400		77,054
First Philippine Holdings Corp.		24,370		44,156
Manila Water Co. Inc.		93,500		64,335
Melco Crown Philippines Resorts Corp.^a		124,100		32,847
Philippine National Bank^a		21,303		42,655

				513,537
POLAND — 1.19%
Asseco Poland SA		6,510		86,125
Budimex SA		1,428		54,488
Globe Trade Centre SA^a		21,742		40,120
Lubelski Wegiel Bogdanka SA		3,126		113,900
Netia SA		37,106		63,829
Rovese SA^a		39,452		15,053
TVN SA^a		21,567		94,569
Warsaw Stock Exchange SA		4,521		53,251

				521,335
QATAR — 0.92%
Al Khalij Commercial Bank		7,264		43,290
Qatar Insurance Co. SAQ		5,542		152,202
Qatar National Cement Co.		1,222		47,991
Qatari Investors Group QSC		2,839		46,002
Salam International Investment Co.		9,826		53,189
United Development Co. PSC		7,497		60,018

				402,692


CONSOLIDATED SCHEDULES OF INVESTMENTS			57

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

RUSSIA — 0.63%
Aeroflot – Russian Airlines OJSC		44,056	$	55,824
LSR Group OJSC SP GDR^d		25,743		92,675
M Video OJSC		5,280		27,089
Pharmstandard GDR^a,d		3,822		44,756
TMK OAO SP GDR^d		5,508		53,896

				274,240
SOUTH AFRICA — 7.26%
Acucap Properties Ltd.		14,130		62,430
Adcock Ingram Holdings Ltd.^a		14,580		70,738
Aeci Ltd.		9,453		109,325
African Oxygen Ltd.		7,920		13,404
ArcelorMittal South Africa Ltd.^a		18,217		67,418
Astral Foods Ltd.		7,104		95,518
Aveng Ltd.^a		22,848		49,067
AVI Ltd.		24,248		139,008
Capital Property Fund^a		110,667		124,346
City Lodge Hotels Ltd.		4,600		53,632
Clicks Group Ltd.		17,268		112,274
Clover Industries Ltd.		23,106		39,888
DataTec Ltd.		20,474		103,473
Emira Property Fund		32,457		46,082
Famous Brands Ltd.		5,043		46,872
Fountainhead Property Trust		25,261		18,574
Grindrod Ltd.		29,634		68,990
Group Five Ltd.		15,912		60,968
Hyprop Investments Ltd.		16,254		131,968
Illovo Sugar Ltd.		15,810		43,110
JSE Ltd.		10,063		95,876
Lewis Group Ltd.		4,653		26,250
Mondi Ltd.		10,066		171,594
Murray & Roberts Holdings Ltd.^a		36,657		90,958
Omnia Holdings Ltd.		5,020		106,792
Pick n Pay Holdings Ltd.		27,573		62,818
Pinnacle Holdings Ltd.		23,019		29,219
Resilient Property Income Fund Ltd.		23,866		157,754
Reunert Ltd.		11,152		69,206
Royal Bafokeng Platinum Ltd.^a		7,820		53,676
SA Corporate Real Estate Fund Nominees Pty Ltd.		141,096		56,251
Sibanye Gold Ltd.		65,433		154,240
Sun International Ltd.		9,989		109,889
Super Group Ltd.^a		24,300		71,401
Telkom SA SOC Ltd.^a		20,791		111,722
Tongaat Hulett Ltd.		8,751		140,389


Security	Shares		Value

Trencor Ltd.		11,136	$	76,436
Vukile Property Fund Ltd.		48,907		76,841
Wilson Bayly Holmes-Ovcon Ltd.		3,846		50,041

				3,168,438
SOUTH KOREA — 16.81%
Able C&C Co. Ltd.		1,078		30,194
Ahnlab Inc.		644		23,881
Asiana Airlines Inc.^a		15,120		71,950
Binggrae Co. Ltd.		561		50,293
Chabiotech Co. Ltd.^a		5,024		63,423
Chadiostech Co. Ltd.^a		21,113		60,073
Chong Kun Dang Pharmaceutical Corp.		954		66,049
CJ CGV Co. Ltd.		1,800		91,602
CJ E&M Corp.^a		1,880		87,793
CJ O Shopping Co. Ltd.		266		94,416
Com2uS Corp.^a		688		85,292
Cosmax Inc.^a		910		95,133
CrucialTec Co. Ltd.^a		3,201		26,834
D.I Corp.^a		2,944		25,173
Daesang Corp.		2,337		127,458
Daishin Securities Co. Ltd.		5,760		68,737
Daum Communications Corp.		1,050		170,970
Dong-A Socio Holdings Co. Ltd.		490		58,474
Dong-A ST Co. Ltd.		463		45,891
Dongsuh Companies Inc.		4,116		81,796
Dongyang Mechatronics Corp.		6,510		58,169
Doosan Engine Co. Ltd.^a		8,680		66,687
Duksan Hi-Metal Co. Ltd.^a		3,373		53,226
Fila Korea Ltd.		1,294		128,896
Foosung Co. Ltd.^a		15,181		47,087
GemVax & Kael Co. Ltd.^a		2,588		62,534
Grand Korea Leisure Co. Ltd.		3,050		135,963
Green Cross Corp.		574		67,366
GS Home Shopping Inc.		340		94,896
Hana Tour Service Inc.		1,136		79,658
Handsome Co. Ltd.		1,590		48,612
Hanjin Heavy Industries & Construction Co. Ltd.^a		6,972		42,701
Hanjin Shipping Co. Ltd.^a		11,450		70,126
Hankook Tire Worldwide Co. Ltd.		3,030		65,295
Hanmi Pharm Co. Ltd.^a		590		54,057
Hansol Paper Co.		5,180		59,517
Hanssem Co. Ltd.		1,088		127,154


58		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Hanwha Investment & Securities Co. Ltd.^a		11,370	$	50,966
Huchems Fine Chemical Corp.		3,360		78,039
Hwa Shin Co. Ltd.		3,060		34,102
Hyundai Corp.		2,240		83,065
Hyundai Greenfood Co. Ltd.		4,200		82,637
Hyundai Home Shopping Network Corp.		490		78,771
Hyundai Securities Co. Ltd.^a		9,719		74,957
Ilyang Pharmaceutical Co. Ltd.		2,304		53,513
Interflex Co. Ltd.^a		2,441		33,704
INTOPS Co. Ltd.		1,830		30,682
Jusung Engineering Co. Ltd.^a		7,483		29,004
KEPCO Plant Service & Engineering Co. Ltd.		1,872		144,376
KIWOOM Securities Co. Ltd.		1,047		54,005
Kolao Holdings		2,522		47,383
Kolon Industries Inc.		1,668		98,868
Komipharm International Co. Ltd.^a		6,443		59,540
Korea Petrochemical Industrial Co. Ltd.		812		57,740
Korean Reinsurance Co.		8,434		98,152
KT Skylife Co. Ltd.		2,489		55,355
Kumho Tire Co. Inc.^a		6,740		68,799
LF Corp.		2,490		74,900
LG Hausys Ltd.		778		158,830
LG International Corp.		3,072		84,530
LG Life Sciences Ltd.^a		1,260		41,940
LIG Insurance Co. Ltd.		3,570		106,507
Lock & Lock Co. Ltd.		1,775		21,095
Lotte Chilsung Beverage Co. Ltd.		56		113,883
Lotte Food Co. Ltd.		70		53,642
Lumens Co. Ltd.^a		5,378		43,811
Mando Corp.		952		128,630
Medipost Co. Ltd.^a		880		49,296
Medy-Tox Inc.		500		99,610
MegaStudy Co. Ltd.		713		46,059
Meritz Finance Group Inc.		9,600		73,850
Meritz Fire & Marine Insurance Co. Ltd.		5,790		78,232
Namhae Chemical Corp.		8,250		75,995
Namyang Dairy Products Co. Ltd.		57		46,547
Nexen Tire Corp.		3,094		43,788
NHN Entertainment Corp.^a		848		60,551
NongShim Co. Ltd.		246		61,139


Security	Shares		Value

OCI Materials Co. Ltd.		1,260	$	56,417
Partron Co. Ltd.		3,864		36,127
Poongsan Corp.		2,380		73,939
POSCO Chemtech Co. Ltd.		448		70,119
POSCO ICT Co. Ltd.		6,389		45,998
S&T Dynamics Co. Ltd.		6,110		58,994
S.M. Entertainment Co.^a		1,783		73,152
Samsung Fine Chemicals Co. Ltd.		1,413		55,742
Samyang Holdings Corp.		384		31,661
SeAH Besteel Corp.		1,343		47,418
Seegene Inc.^a		1,098		62,266
Seoul Semiconductor Co. Ltd.		2,976		85,704
SFA Engineering Corp.		912		39,576
SK Broadband Co. Ltd.^a		12,796		45,810
SK Chemicals Co. Ltd.		1,626		108,566
SK Securities Co. Ltd.^a		101,600		103,709
SKC Co. Ltd.		1,961		66,240
Soulbrain Co. Ltd.		843		24,319
Sung Kwang Bend Co. Ltd.		2,007		34,738
Sungwoo Hitech Co. Ltd.		3,247		54,600
Suprema Inc.^a		2,358		57,906
Taekwang Industrial Co. Ltd.		55		70,625
Taewoong Co. Ltd.^a		2,279		50,347
Taihan Electric Wire Co. Ltd.^a		9,521		20,236
TK Corp.^a		3,199		47,956
TONGYANG Life Insurance Co.		2,760		31,031
TONGYANG Securities Inc.^a		10,440		31,044
ViroMed Co. Ltd.^a		1,599		95,093
Wonik IPS Co. Ltd.^a		8,271		106,044
Woongjin Thinkbig Co. Ltd.^a		5,880		39,724
YESCO Co. Ltd.		1,030		40,328
Youngone Corp.		1,960		109,410

				7,338,708
TAIWAN — 19.83%
Ability Enterprise Co. Ltd.		54,000		34,777
ALI Corp.		39,000		37,186
Altek Corp.^a		51,133		44,135
Ambassador Hotel Ltd. (The)		27,000		25,428
AmTRAN Technology Co. Ltd.		78,312		50,565
Asia Optical Co. Inc.^a		30,000		46,169
Asia Polymer Corp.		78,400		56,393
BES Engineering Corp.		248,000		66,044
Career Technology (MFG.) Co. Ltd.		50,000		77,031
Cathay Real Estate Development Co. Ltd.		84,000		47,353


CONSOLIDATED SCHEDULES OF INVESTMENTS			59

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Cheng Loong Corp.		132,000	$	54,760
Cheng Uei Precision Industry Co. Ltd.		32,000		61,879
China Bills Finance Corp.		153,000		57,585
China Man-Made Fibers Corp.^a		93,000		29,465
China Petrochemical Development Corp.^a		144,000		51,307
China Steel Chemical Corp.		18,000		113,213
China Synthetic Rubber Corp.		51,000		52,637
Chipbond Technology Corp.		39,000		68,239
Chong Hong Construction Co.		12,040		32,788
Chroma ATE Inc.		33,000		97,155
Chung Hung Steel Corp.^a		247,000		68,587
Compeq Manufacturing Co. Ltd.		114,000		69,604
Coretronic Corp.		60,000		99,664
CSBC Corp. Taiwan		69,420		40,992
Cyberlink Corp.		21,125		66,010
CyberTAN Technology Inc.		42,000		39,554
D-Link Corp.		126,000		90,631
Dynapack International Technology Corp.		16,000		47,319
Elan Microelectronics Corp.		36,000		61,786
Eternal Materials Co. Ltd.		69,440		75,038
Everlight Electronics Co. Ltd.		43,000		95,522
Faraday Technology Corp.		42,000		50,163
Feng Hsin Iron & Steel Co. Ltd.		32,000		46,035
Feng Tay Enterprise Co. Ltd.		32,240		92,328
Firich Enterprises Co. Ltd.		16,719		96,766
FLEXium Interconnect Inc.		16,610		47,067
Formosan Rubber Group Inc.		84,000		94,144
G Tech Optoelectronics Corp.^a		35,000		36,416
Gallop No. 1 REIT		170,000		110,848
Gemtek Technology Corp.		36,000		33,964
Genesis Photonics Inc.^a		62,899		41,455
Genius Electronic Optical Co. Ltd.^a		6,357		17,418
Gigabyte Technology Co. Ltd.		63,000		84,097
Gigastorage Corp.^a		56,400		53,776
Gintech Energy Corp.^a		56,000		53,489
Global Unichip Corp.		20,000		55,871
Gloria Material Technology Corp.		86,818		72,613
Goldsun Development & Construction Co. Ltd.^a		210,000		74,472
Grand Pacific Petrochemical Corp.		98,000		49,671
Great Wall Enterprise Co. Ltd.		73,128		74,375
Greatek Electronics Inc.		81,000		111,106


Security	Shares		Value

Green Energy Technology Inc.^a		36,125	$	28,825
HannStar Display Corp.		187,320		65,802
HannsTouch Solution Inc.^a		145,000		40,458
Hey Song Corp.		22,500		25,029
Ho Tung Chemical Corp.		151,951		57,190
Holy Stone Enterprise Co. Ltd.		64,500		96,889
Huaku Development Co. Ltd.		22,080		53,186
Huang Hsiang Construction Co.		12,000		16,480
Hung Sheng Construction Ltd.		68,000		47,888
Infortrend Technology Inc.		84,000		48,336
ITEQ Corp.		51,600		46,955
Jih Sun Financial Holdings Co. Ltd.		95,197		26,657
Kenda Rubber Industrial Co. Ltd.		52,198		111,065
Kerry TJ Logistics Co. Ltd.		42,000		56,978
King Yuan Electronics Co. Ltd.		112,000		102,481
King’s Town Bank		73,000		82,304
Kingdom Construction Co.		39,000		36,860
Kinpo Electronics Inc.^a		168,000		81,216
Lealea Enterprise Co. Ltd.		165,590		52,186
Lien Hwa Industrial Corp.		70,000		49,062
Macronix International Co. Ltd.^a		240,000		62,227
Makalot Industrial Co. Ltd.		15,231		75,160
Masterlink Securities Corp.		210,496		72,887
Medigen Biotechnology Corp.^a		10,397		48,349
Mercuries & Associates Ltd.		29,548		19,820
Micro-Star International Co. Ltd.		93,000		127,721
Microbio Co. Ltd.^a		65,727		64,978
MIN AIK Technology Co. Ltd.		14,000		76,814
Mitac Holdings Corp.		69,000		59,673
Motech Industries Inc.		28,000		37,938
Nan Kang Rubber Tire Co. Ltd.		32,000		36,774
Neo Solar Power Corp.		83,854		81,075
Newmax Technology Co. Ltd.		15,939		22,076
Pan-International Industrial Corp.		48,722		35,290
PChome Online Inc.		8,774		88,061
Pixart Imaging Inc.		21,635		50,811
President Securities Corp.		127,510		72,307
Primax Electronics Ltd.		45,000		66,091
Prince Housing & Development Corp.		135,917		58,658
Qisda Corp.^a		153,000		77,804
Radium Life Tech Co. Ltd.		71,968		46,108
Ritek Corp.^a		266,000		36,487
Sanyang Industry Co. Ltd.		76,820		71,833
Senao International Co. Ltd.		9,000		16,259


60		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Shihlin Electric & Engineering Corp.		56,000	$	77,001
Shining Building Business Co. Ltd.^a		98,280		71,350
Shinkong Synthetic Fibers Corp.		126,135		46,419
Shinkong Textile Co. Ltd.		27,000		37,306
Silitech Technology Corp.		32,425		28,910
Sino-American Silicon Products Inc.^a		42,000		68,149
Sinyi Realty Co.		40,879		54,021
Soft-World International Corp.		21,140		69,947
Solar Applied Materials Technology Corp.		56,799		52,732
Solartech Energy Corp.^a		83,744		63,318
Ta Chen Stainless Pipe Co. Ltd.		203,600		149,172
Ta Chong Bank Ltd.^a		104,552		33,929
Taichung Commercial Bank Co. Ltd.		95,694		33,456
Taiflex Scientific Co. Ltd.		31,000		55,901
Taiwan Hon Chuan Enterprise Co. Ltd.		27,000		53,656
Taiwan Life Insurance Co. Ltd.^a		48,599		34,469
Taiwan Paiho Ltd.		56,050		71,819
Taiwan Secom Co. Ltd.		30,450		86,489
Taiwan Surface Mounting Technology Co. Ltd.		41,746		66,270
Taiwan TEA Corp.		91,000		58,149
Taiwan-Sogo Shinkong Security Corp.		64,640		89,746
Ton Yi Industrial Corp.		84,000		64,355
Tong Hsing Electronic Industries Ltd.		16,000		77,081
Tong Yang Industry Co. Ltd.		47,133		59,921
Tripod Technology Corp.		32,000		64,984
Tsann Kuen Enterprise Co. Ltd.		15,000		18,769
TTY Biopharm Co. Ltd.		25,450		58,324
TXC Corp.		47,000		68,793
Union Bank of Taiwan^a		119,546		42,994
Unity Opto Technology Co. Ltd.^a		51,679		60,167
UPC Technology Corp.		115,661		45,660
USI Corp.		64,950		35,093
Visual Photonics Epitaxy Co. Ltd.		69,900		72,612
Wah Lee Industrial Corp.		42,000		80,514
Waterland Financial Holdings Co. Ltd.		172,826		52,789
Weikeng Industrial Co. Ltd.		126,000		98,640
Win Semiconductors Corp.		36,000		36,734
Winbond Electronics Corp.^a		252,000		85,572
Wintek Corp.^a		155,000		52,634


Security	Shares		Value

WT Microelectronics Co. Ltd.		58,063	$	91,493
Yageo Corp.		170,100		142,269
YFY Inc.		202,000		92,247
Yieh Phui Enterprise Co. Ltd.		205,034		66,880
YungShin Global Holding Corp.		35,000		66,978
Yungtay Engineering Co. Ltd.		40,000		99,162
Zinwell Corp.		39,000		36,403

				8,659,215
THAILAND — 4.24%
Amata Corp. PCL NVDR		93,600		48,939
Bangkok Expressway PCL NVDR		30,700		37,486
Bangkok Land PCL NVDR		1,458,400		100,453
Central Plaza Hotel PCL NVDR		75,500		93,370
Delta Electronics (Thailand) PCL NVDR		56,000		113,964
Energy Absolute PCL NVDR		155,200		120,020
Esso (Thailand) PCL NVDR^a		212,300		39,216
G J Steel PCL NVDR^a		10,545,900		19,811
Hana Microelectronics PCL NVDR		81,200		98,513
Hemaraj Land and Development PCL NVDR		596,400		80,292
Jasmine International PCL NVDR		460,800		92,333
Khon Kaen Sugar Industry PCL NVDR		135,500		58,544
Kiatnakin Bank PCL NVDR^b		50,432		66,316
Pruksa Real Estate PCL NVDR		91,700		99,050
Siam Global House PCL NVDR		110,900		51,388
Sino-Thai Engineering & Construction PCL NVDR		86,128		68,762
Sri Trang Agro-Industry PCL NVDR^b		146,500		64,673
Supalai PCL NVDR		110,300		89,787
Thai Airways International PCL NVDR^a,b		66,300		31,552
Thai Tap Water Supply PCL NVDR		224,000		87,664
Thai Vegetable Oil PCL NVDR		101,200		71,290
Thaicom PCL NVDR		66,800		82,611
Thanachart Capital PCL NVDR		77,000		84,377
TISCO Financial Group PCL NVDR		50,740		69,899
VGI Global Media PCL NVDR^b		196,100		81,657

				1,851,967
TURKEY — 1.71%
Akcansa Cimento Sanayi ve TAS		6,512		40,588
Aksa Akrilik Kimya Sanayii AS		6,000		19,769
Asya Katilim Bankasi AS^a		86,928		49,950
Bizim Toptan Satis Magazalari AS^b		6,742		58,111


CONSOLIDATED SCHEDULES OF INVESTMENTS			61

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2014


Security	Shares		Value

Cimsa Cimento Sanayi ve TAS		7,535	$	53,598
Dogan Sirketler Grubu Holding AS^a		70,000		25,302
Kardemir Karabuk Demir Celik Sanayi ve TAS Class D^a		103,152		108,508
Kombassan Holdings AS^a		15,008		19,891
Koza Anadolu Metal Madencilik Isletmeleri AS^a		25,802		27,022
Net Holding AS^a,b		45,555		56,153
Nortel Networks Netas Telekomunikasyon AS^a		7,112		20,796
Sekerbank TAS^a		33,750		30,810
Tekfen Holding AS^a		16,352		41,146
Trakya Cam Sanayii AS		38,096		46,783
Turkiye Sinai Kalkinma Bankasi AS		101,187		89,092
Yazicilar Holding AS		6,356		57,435

				744,954
UNITED ARAB EMIRATES — 0.62%
Air Arabia PJSC		193,264		72,611
Ajman Bank PJSC^a		55,344		39,929
Al Waha Capital PJSC		86,683		70,091
Dana Gas PJSC^a		283,248		53,981
Eshraq Properties Co. PJSC^a		97,728		36,185

				272,797

TOTAL COMMON STOCKS
(Cost: $40,711,154)				43,131,124

PREFERRED STOCKS — 0.82%

BRAZIL — 0.71%
Banco ABC Brasil SA		6,438		43,159
Banco Daycoval SA		6,000		24,294
Banco Industrial e Comercial SA		6,300		21,398
Banco Pan SA		17,711		27,783
Companhia de Ferro Ligas da Bahia – Ferbasa		7,500		34,356
GOL Linhas Aereas Inteligentes SA		8,100		50,210
Marcopolo SA		28,800		55,990
Randon SA Implementos e Participacoes		10,125		32,852
Saraiva Livreiros Editores SA		2,800		21,361

				311,403
COLOMBIA — 0.11%
Avianca Holdings SA		23,977		48,743

				48,743

TOTAL PREFERRED STOCKS
(Cost: $441,168)				360,146


Security	Shares		Value

RIGHTS — 0.01%

BRAZIL — 0.00%
Banco Pan SA^a		1,738	$	8

				8
INDONESIA — 0.00%
PT Bumi Resources Tbk^a		1,725,150		148

				148
SOUTH KOREA — 0.01%
Meritz Financial Group Inc.^a		2,236		4,168

				4,168

TOTAL RIGHTS
(Cost: $0)				4,324

SHORT-TERM INVESTMENTS — 6.29%

MONEY MARKET FUNDS — 6.29%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^e,f,g		2,582,348		2,582,348
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		162,566		162,566

				2,744,914

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,744,914)				2,744,914

TOTAL INVESTMENTS IN SECURITIES — 105.90%
(Cost: $43,897,236)				46,240,508
Other Assets, Less Liabilities — (5.90)%				(2,574,623	)

NET ASSETS — 100.00%			$	43,665,885

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting 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 1.

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

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

^e	Affiliated issuer. See Note 2.

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

^g	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to consolidated financial statements.


62		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS VALUE ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 91.14%

BRAZIL — 5.07%
B2W Companhia Global do Varejo^a		1,000	$	16,938
Banco Bradesco SA		3,000		53,657
Banco do Brasil SA		10,000		156,376
Banco Santander (Brasil) SA Units		11,000		76,003
BM&F Bovespa SA		21,000		126,701
Centrais Eletricas Brasileiras SA		3,000		10,927
Companhia de Saneamento Basico do Estado de Sao Paulo		4,000		38,238
Companhia de Saneamento de Minas Gerais SA		1,000		17,877
Companhia Siderurgica Nacional SA		6,000		26,332
CPFL Energia SA		2,000		20,192
Cyrela Brazil Realty SA Empreendimentos e Participacoes		4,000		25,367
Duratex SA		4,000		18,002
EDP Energias do Brasil SA		3,000		15,151
Fibria Celulose SA^a		1,000		10,404
Petroleo Brasileiro SA		35,000		346,316
Porto Seguro SA		1,000		14,829
Souza Cruz SA		2,000		18,735
Sul America SA Units		2,000		13,828
TIM Participacoes SA		10,000		56,088
Tractebel Energia SA		2,000		33,528
Vale SA		14,000		182,199

				1,277,688
CHILE — 1.47%
AES Gener SA		25,036		12,799
Aguas Andinas SA Series A		33,240		20,846
Banco de Chile		237,634		28,999
Banco de Credito e Inversiones		370		20,166
Banco Santander (Chile) SA		808,230		47,887
CAP SA		720		8,554
Colbun SA		90,590		23,709
Compania Cervecerias Unidas SA		1,700		18,259
CorpBanca SA		1,841,860		22,632
Empresa Nacional de Electricidad SA		40,590		62,013
Empresa Nacional de Telecomunicaciones SA		1,450		16,634
Empresas CMPC SA		14,423		35,902
Enersis SA		152,530		51,345

				369,745
CHINA — 19.01%
Agile Property Holdings Ltd.		20,000		15,690


Security	Shares		Value

Agricultural Bank of China Ltd. Class H		262,000	$	121,025
Air China Ltd. Class H		20,000		12,387
Aluminum Corp. of China Ltd. Class H^a,b		40,000		16,980
Anta Sports Products Ltd.		10,000		19,200
Bank of China Ltd. Class H		940,000		436,637
Bank of Communications Co. Ltd. Class H		110,000		80,334
BBMG Corp. Class H		15,000		11,187
Belle International Holdings Ltd.		20,000		25,574
China Agri-Industries Holdings Ltd.^b		30,800		12,598
China BlueChemical Ltd. Class H		20,000		9,858
China CITIC Bank Corp. Ltd. Class H		100,000		63,095
China Coal Energy Co. Class H^b		50,000		30,451
China Communications Construction Co. Ltd. Class H		50,000		36,451
China Communications Services Corp. Ltd. Class H		40,000		19,303
China Construction Bank Corp. Class H		850,000		631,730
China COSCO Holdings Co. Ltd. Class H^a,b		25,000		10,774
China Everbright Bank Co. Ltd.		30,000		14,013
China Everbright Ltd.^b		20,000		37,935
China International Marine Containers (Group) Co. Ltd. Class H		4,000		8,609
China Merchants Bank Co. Ltd. Class H		55,000		105,172
China Minsheng Banking Corp. Ltd. Class H		47,400		44,525
China Mobile Ltd.		70,000		870,693
China National Building Material Co. Ltd. Class H		40,000		36,748
China Petroleum & Chemical Corp. Class H		300,000		304,252
China Railway Construction Corp. Ltd. Class H		25,000		23,935
China Railway Group Ltd. Class H		50,000		25,870
China Resources Cement Holdings Ltd.^b		20,000		13,755
China Shenhua Energy Co. Ltd. Class H		40,000		115,353
China Telecom Corp. Ltd. Class H		160,000		98,888


CONSOLIDATED SCHEDULES OF INVESTMENTS			63

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS VALUE ETF

August 31, 2014


Security	Shares		Value

Chongqing Rural Commercial Bank Co. Ltd. Class H		30,000	$	14,903
CITIC Pacific Ltd.^b		20,000		38,915
CITIC Securities Co. Ltd. Class H		10,000		23,741
COSCO Pacific Ltd.		20,000		28,025
Country Garden Holdings Co. Ltd.^b		40,000		17,754
Datang International Power Generation Co. Ltd. Class H		40,000		22,193
Evergrande Real Estate Group Ltd.^b		50,000		20,903
Far East Horizon Ltd.		20,000		16,129
Fosun International Ltd.		15,000		18,425
Franshion Properties (China) Ltd.		40,000		10,838
GOME Electrical Appliances Holdings Ltd.		80,000		14,245
Guangdong Investment Ltd.		20,000		24,180
Guangzhou R&F Properties Co. Ltd. Class H		12,000		14,462
Haitong Securities Co. Ltd. Class H		12,000		19,169
Industrial and Commercial Bank of China Ltd. Class H		870,000		576,995
Inner Mongolia Yitai Coal Co. Ltd. Class B		100		169
Jiangsu Expressway Co. Ltd. Class H		20,000		22,787
Jiangxi Copper Co. Ltd. Class H		20,000		35,354
Kingboard Chemical Holdings Co. Ltd.		10,000		20,774
New World China Land Ltd.		40,000		24,516
Nine Dragons Paper (Holdings) Ltd.^b		20,000		15,613
PetroChina Co. Ltd. Class H		240,000		340,639
Poly Property Group Co. Ltd.^b		30,000		13,045
Shanghai Electric Group Co. Ltd. Class H		40,000		17,548
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		6,000		12,309
Shimao Property Holdings Ltd.		5,000		11,006
Shui On Land Ltd.		45,833		12,005
Sino-Ocean Land Holdings Ltd.^b		35,000		19,780
Sinopec Shanghai Petrochemical Co. Ltd. Class H		40,000		13,367
SOHO China Ltd.		25,000		20,451
Yanzhou Coal Mining Co. Ltd. Class H		20,000		16,929
Yuexiu Property Co. Ltd.^b		80,000		17,135
Zhejiang Expressway Co. Ltd. Class H		20,000		19,896
Zijin Mining Group Co. Ltd. Class H		80,000		20,851


Security	Shares		Value

Zoomlion Heavy Industry Science and Technology Co. Ltd. Class H		18,000	$	11,218
ZTE Corp. Class H		4,000		9,011

				4,788,302
COLOMBIA — 0.78%
Almacenes Exito SA		1,040		17,705
Ecopetrol SA		38,430		66,606
Grupo Argos SA		2,190		27,146
Grupo de Inversiones Suramericana SA		2,790		64,134
Interconexion Electrica SA ESP		4,180		21,135

				196,726
CZECH REPUBLIC — 0.22%
CEZ AS		1,890		54,944

				54,944
EGYPT — 0.15%
Global Telecom Holding SAE GDR^a		10,183		36,537

				36,537
GREECE — 0.53%
Alpha Bank AE^a		30,456		26,718
Hellenic Telecommunications Organization SA^a		1,002		14,360
OPAP SA		2,635		41,962
Piraeus Bank SA^a		16,075		31,761
Public Power Corp. SA^a		1,310		19,067

				133,868
HUNGARY — 0.18%
MOL Hungarian Oil and Gas PLC		510		25,129
OTP Bank PLC		1,210		20,917

				46,046
INDIA — 6.77%
ACC Ltd.		280		6,887
Aditya Birla Nuvo Ltd.		520		12,458
Ambuja Cements Ltd.		8,530		29,000
Bajaj Auto Ltd.		980		36,479
Bharat Heavy Electricals Ltd.		7,000		27,790
Bharat Petroleum Corp. Ltd.		1,960		22,426
Cairn India Ltd.		5,460		29,356
Cipla Ltd.		2,020		17,117
Coal India Ltd.		5,750		33,744
DLF Ltd.		5,570		16,275
GAIL (India) Ltd.		3,870		28,279
Hero Motocorp Ltd.		500		21,463
Hindalco Industries Ltd.		12,510		35,068


64		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS VALUE ETF

August 31, 2014


Security	Shares		Value

Housing Development Finance Corp. Ltd.		5,910	$	104,652
ICICI Bank Ltd.		2,470		63,370
Infosys Ltd.		5,360		317,890
Jindal Steel & Power Ltd.		2,920		11,212
JSW Steel Ltd.		1,020		20,904
LIC Housing Finance Ltd.		2,881		14,369
Mahindra & Mahindra Ltd.		3,950		91,602
NTPC Ltd.		19,510		44,177
Oil & Natural Gas Corp. Ltd.		8,940		64,089
Oil India Ltd.		1,550		15,720
Piramal Enterprises Ltd.		850		9,654
Power Finance Corp. Ltd.		2,900		11,953
Power Grid Corp. of India Ltd.		9,960		21,207
Reliance Capital Ltd.		1,210		10,545
Reliance Communications Ltd.		8,720		16,670
Reliance Industries Ltd.		15,190		250,004
Reliance Infrastructure Ltd.		1,190		13,714
Reliance Power Ltd.^a		5,490		6,745
Rural Electrification Corp. Ltd.		3,710		16,407
Sesa Sterlite Ltd.		13,954		63,734
Shriram Transport Finance Co. Ltd.		1,730		25,778
State Bank of India		1,740		70,561
Tata Power Co. Ltd.		13,051		18,626
Tata Steel Ltd.		3,430		29,006
Wipro Ltd.		7,310		68,095
Yes Bank Ltd.		720		6,788

				1,703,814
INDONESIA — 2.53%
PT Adaro Energy Tbk		168,000		18,886
PT Astra Agro Lestari Tbk		5,000		10,900
PT Astra International Tbk		154,000		99,726
PT Bank Danamon Indonesia Tbk		39,000		12,503
PT Bank Mandiri (Persero) Tbk		110,000		97,564
PT Bank Negara Indonesia (Persero) Tbk		87,000		39,791
PT Bank Rakyat Indonesia (Persero) Tbk		65,000		61,402
PT Bukit Asam (Persero) Tbk		10,000		11,413
PT Indo Tambangraya Megah Tbk		5,000		12,043
PT Indofood Sukses Makmur Tbk		51,000		29,974
PT Perusahaan Gas Negara (Persero) Tbk		126,000		62,475
PT Telekomunikasi Indonesia (Persero) Tbk		585,000		133,278


Security	Shares		Value

PT United Tractors Tbk		20,000	$	37,871
PT XL Axiata Tbk		20,000		10,173

				637,999
MALAYSIA — 3.86%
AirAsia Bhd		15,000		11,469
Alliance Financial Group Bhd		14,000		21,586
AMMB Holdings Bhd		18,000		38,147
Axiata Group Bhd		16,000		35,178
Berjaya Sports Toto Bhd		4,221		5,035
British American Tobacco (Malaysia) Bhd		1,000		22,843
CIMB Group Holdings Bhd		57,700		135,097
Genting Bhd		12,000		36,472
Genting Malaysia Bhd		34,000		48,649
Hong Leong Bank Bhd		7,000		31,980
Hong Leong Financial Group Bhd		1,000		5,406
IOI Properties Group Bhd^a		15,600		12,175
Lafarge Malaysia Bhd		6,000		19,416
Malayan Banking Bhd		51,000		163,420
Maxis Bhd		21,000		43,639
MISC Bhd		13,000		28,376
MMC Corp. Bhd		5,000		3,918
Petronas Chemicals Group Bhd		32,000		63,959
PPB Group Bhd		6,000		28,135
RHB Capital Bhd		7,000		20,365
Sime Darby Bhd		35,000		105,044
Telekom Malaysia Bhd		12,000		24,213
UEM Sunrise Bhd		9,000		5,482
UMW Holdings Bhd		7,000		27,449
YTL Corp. Bhd		52,000		26,726
YTL Power International Bhd^a		18,440		8,717

				972,896
MEXICO — 5.32%
America Movil SAB de CV Series L		199,000		243,357
Arca Continental SAB de CV		5,000		36,756
Cemex SAB de CV CPO^a		90,001		119,561
Coca-Cola FEMSA SAB de CV Series L		5,000		54,510
Controladora Comercial Mexicana SAB de CV BC Units		5,000		19,257
Fibra Uno Administracion SAB de CV		27,000		96,948
Fomento Economico Mexicano SAB de CV BD Units		23,000		223,272
Grupo Aeroportuario del Pacifico SAB de CV Series B		4,000		27,768


CONSOLIDATED SCHEDULES OF INVESTMENTS			65

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS VALUE ETF

August 31, 2014


Security	Shares		Value

Grupo Aeroportuario del Sureste SAB de CV Series B		2,000	$	25,637
Grupo Carso SAB de CV Series A1		4,000		24,443
Grupo Comercial Chedraui SAB de CV^b		4,000		13,898
Grupo Financiero Banorte SAB de CV Series O		10,000		70,399
Grupo Financiero Inbursa SAB de CV Series O		10,000		30,385
Grupo Financiero Santander Mexico SAB de CV Series B^b		21,000		62,893
Grupo Lala SAB de CV		4,000		10,383
Grupo Mexico SAB de CV Series B		45,000		163,474
Industrias Penoles SAB de CV		1,650		41,870
Kimberly-Clark de Mexico SAB de CV Series A		18,000		48,030
OHL Mexico SAB de CV^a		9,000		26,431

				1,339,272
PERU — 0.40%
Compania de Minas Buenaventura SA SP ADR		1,544		22,480
Credicorp Ltd.		510		79,086

				101,566
PHILIPPINES — 1.27%
Aboitiz Equity Ventures Inc.		22,120		27,777
Aboitiz Power Corp.		17,000		14,622
Ayala Corp.		1,600		25,706
BDO Unibank Inc.		11,000		22,833
Energy Development Corp.		109,000		18,175
Globe Telecom Inc.		450		18,578
JG Summit Holdings Inc.		27,940		32,970
Megaworld Corp.		120,000		12,027
Metro Pacific Investments Corp.		123,600		14,600
Metropolitan Bank & Trust Co.		3,340		6,584
Philippine Long Distance Telephone Co.		1,200		94,954
SM Investments Corp.		713		12,625
SM Prime Holdings Inc.		49,000		18,184

				319,635
POLAND — 1.60%
Bank Handlowy w Warszawie SA		400		14,324
ENEA SA		2,592		12,160
Getin Noble Bank SA^a		12,400		10,083
Grupa Lotos SA^a		952		8,974
Jastrzebska Spolka Weglowa SA^a		690		7,225


Security	Shares		Value

KGHM Polska Miedz SA		1,650	$	68,016
Orange Polska SA		5,240		17,601
Polska Grupa Energetyczna SA		8,490		57,913
Polski Koncern Naftowy Orlen SA		3,790		46,739
Polskie Gornictwo Naftowe i Gazownictwo SA		21,880		33,395
Powszechny Zaklad Ubezpieczen SA		670		98,278
Synthos SA		6,610		9,510
Tauron Polska Energia SA		12,050		18,806

				403,024
QATAR — 0.53%
Barwa Real Estate Co.		740		7,946
Commercial Bank of Qatar QSC (The)		440		8,229
Doha Bank QSC		410		6,869
Industries Qatar QSC		920		48,890
Ooredoo QSC		940		29,507
Qatar Electricity & Water Co. QSC		190		8,923
Qatar Islamic Bank SAQ		720		23,531

				133,895
RUSSIA — 4.23%
Gazprom OAO		138,440		493,307
LUKOIL OAO		5,970		332,334
MMC Norilsk Nickel OJSC		640		125,941
Rosneft Oil Co. OJSC		8,900		54,904
Surgutneftegas OJSC		30,000		21,029
Uralkali OJSC		10,200		37,671

				1,065,186
SOUTH AFRICA — 7.23%
African Bank Investments Ltd.^b,c		17,203		16
African Rainbow Minerals Ltd.		1,100		18,788
Barclays Africa Group Ltd.		4,030		63,121
Barloworld Ltd.		2,740		26,113
Exxaro Resources Ltd.		1,680		23,834
FirstRand Ltd.		36,100		146,805
Foschini Group Ltd. (The)		2,310		25,004
Gold Fields Ltd.		9,490		44,981
Growthpoint Properties Ltd.		24,690		58,502
Harmony Gold Mining Co. Ltd.^a		4,740		14,364
Impala Platinum Holdings Ltd.		6,030		54,571
Imperial Holdings Ltd.		2,190		39,165
Investec Ltd.		2,790		25,236
Kumba Iron Ore Ltd.		750		22,460
Liberty Holdings Ltd.		1,380		16,944
Mediclinic International Ltd.		4,240		36,869
MMI Holdings Ltd.		12,150		31,405


66		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS VALUE ETF

August 31, 2014


Security	Shares		Value

MTN Group Ltd.		9,940	$	225,280
Nedbank Group Ltd.		2,450		52,684
PPC Ltd.		6,250		19,457
Redefine Properties Ltd.		38,940		35,003
RMB Holdings Ltd.		8,000		42,108
Sappi Ltd.^a		2,260		9,350
Sasol Ltd.		6,540		380,197
Standard Bank Group Ltd.		14,140		183,474
Steinhoff International Holdings Ltd.		24,320		120,075
Tiger Brands Ltd.		1,870		53,979
Vodacom Group Ltd.		4,300		51,893

				1,821,678
SOUTH KOREA — 13.49%
BS Financial Group Inc.		2,185		36,203
CJ Corp.		80		14,123
Coway Co. Ltd.		200		16,786
Daelim Industrial Co. Ltd.		326		28,100
Daewoo Shipbuilding & Marine Engineering Co. Ltd.		800		19,606
DGB Financial Group Inc.		1,030		17,980
Dongbu Insurance Co. Ltd.		510		30,783
Doosan Heavy Industries & Construction Co. Ltd.		706		20,088
GS Engineering & Construction Corp.^a		394		14,319
GS Holdings Corp.		700		29,720
Hana Financial Group Inc.		3,343		140,288
Hanwha Chemical Corp.		900		14,557
Hanwha Corp.		600		17,900
Hanwha Life Insurance Co. Ltd.		3,100		21,279
Hite Jinro Co. Ltd.		300		6,835
Hyosung Corp.		110		8,505
Hyundai Department Store Co. Ltd.		180		28,137
Hyundai Development Co. Engineering & Construction		380		15,441
Hyundai Engineering & Construction Co. Ltd.		920		57,979
Hyundai Heavy Industries Co. Ltd.		490		69,589
Hyundai Marine & Fire Insurance Co. Ltd.		560		17,204
Hyundai Merchant Marine Co. Ltd.^a		527		6,393
Hyundai Mipo Dockyard Co. Ltd.		60		7,633
Hyundai Mobis Co. Ltd.		810		234,864
Hyundai Motor Co.		1,800		413,630
Hyundai Steel Co.		830		61,967
Industrial Bank of Korea		2,524		43,811


Security	Shares		Value

Kangwon Land Inc.		1,500	$	53,331
KB Financial Group Inc.		3,750		153,669
KCC Corp.		60		40,416
Kia Motors Corp.		3,100		187,110
Korea Investment Holdings Co. Ltd.		500		25,100
Korea Zinc Co. Ltd.		103		42,716
KT Corp.		820		28,305
KT&G Corp.		1,260		117,929
LG Chem Ltd.		550		146,186
LG Corp.		1,150		80,413
Lotte Confectionery Co. Ltd.		10		21,401
Lotte Shopping Co. Ltd.		130		42,566
LS Corp.		230		15,878
LS Industrial Systems Co. Ltd.		150		9,261
Mirae Asset Securities Co. Ltd.		300		14,335
OCI Co. Ltd.^a		70		10,045
POSCO		760		250,348
S-Oil Corp.		630		29,109
Samsung Card Co. Ltd.		400		19,232
Samsung Electro-Mechanics Co. Ltd.		240		12,995
Samsung Fire & Marine Insurance Co. Ltd.		390		106,736
Samsung Heavy Industries Co. Ltd.		1,850		49,719
Samsung SDI Co. Ltd.		300		44,825
Shinhan Financial Group Co. Ltd.		4,950		256,300
Shinsegae Co. Ltd.		80		18,383
SK Holdings Co. Ltd.		310		49,070
SK Innovation Co. Ltd.		720		66,820
SK Networks Co. Ltd.^a		600		5,817
SK Telecom Co. Ltd.		110		29,617
Woori Finance Holdings Co. Ltd.^a		3,942		53,457
Woori Investment & Securities Co. Ltd.		1,700		19,868
Yuhan Corp.		16		2,730

				3,397,407
TAIWAN — 12.07%
Acer Inc.^a		24,000		19,873
Advanced Semiconductor Engineering Inc.		70,000		87,235
Asia Cement Corp.		20,706		28,402
Asia Pacific Telecom Co. Ltd.		20,000		12,914
ASUSTeK Computer Inc.		10,000		104,716
AU Optronics Corp.		110,000		54,649
Catcher Technology Co. Ltd.		10,000		101,370
Chang Hwa Commercial Bank Ltd.		31,671		19,708


CONSOLIDATED SCHEDULES OF INVESTMENTS			67

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS VALUE ETF

August 31, 2014


Security	Shares		Value

Chicony Electronics Co. Ltd.		10,095	$	33,098
China Development Financial Holding Corp.		160,000		54,064
China Life Insurance Co. Ltd.		33,000		30,637
China Motor Co. Ltd.		10,000		9,568
China Steel Corp.		51,856		44,760
Chunghwa Telecom Co. Ltd.		50,000		155,401
Clevo Co.		10,000		18,902
Compal Electronics Inc.		50,000		44,496
CTBC Financial Holding Co. Ltd.		150,529		109,533
CTCI Corp.		10,000		17,899
E.Sun Financial Holding Co. Ltd.		76,241		50,121
Far Eastern Department Stores Ltd.		10,200		10,271
Far Eastern New Century Corp.		31,208		33,463
Far EasTone Telecommunications Co. Ltd.		20,000		42,622
First Financial Holding Co. Ltd.		89,355		55,304
Formosa Chemicals & Fibre Corp.		20,720		51,574
Formosa Taffeta Co. Ltd.		10,000		10,622
Foxconn Technology Co. Ltd.		10,500		26,346
Fubon Financial Holding Co. Ltd.		70,000		114,284
Hon Hai Precision Industry Co. Ltd.		145,776		497,454
Hua Nan Financial Holdings Co. Ltd.		74,263		46,088
Innolux Corp.		87,774		44,635
Inotera Memories Inc.^a		30,000		49,079
Inventec Corp.		30,000		23,586
Lite-On Technology Corp.		20,189		33,468
Mega Financial Holding Co. Ltd.		116,130		100,238
Novatek Microelectronics Corp. Ltd.		10,000		51,354
Pegatron Corp.		20,000		42,422
Pou Chen Corp.		20,000		23,118
Powertech Technology Inc.		10,000		18,969
Quanta Computer Inc.		30,000		84,709
Realtek Semiconductor Corp.		10,060		36,685
Ruentex Development Co. Ltd.		10,586		19,018
Ruentex Industries Ltd.		10,000		24,255
Shin Kong Financial Holding Co. Ltd.		90,259		29,442
Siliconware Precision Industries Co. Ltd.		40,000		58,346
SinoPac Financial Holdings Co. Ltd.		44,264		20,214
Synnex Technology International Corp.		20,000		30,511
Taishin Financial Holdings Co. Ltd.		99,023		50,355
Taiwan Cement Corp.		40,000		63,565
Taiwan Cooperative Financial Holding Co. Ltd.		73,660		41,154


Security	Shares		Value

Taiwan Glass Industry Corp.		10,000	$	8,631
Taiwan Mobile Co. Ltd.		20,000		63,766
Teco Electric and Machinery Co. Ltd.		20,000		25,158
U-Ming Marine Transport Corp.		10,000		16,460
Unimicron Technology Corp.		10,000		8,448
United Microelectronics Corp.		140,000		63,933
Walsin Lihwa Corp.^a		50,000		17,899
Wistron Corp.		31,518		36,906
WPG Holdings Co. Ltd.		10,000		13,031
Yuanta Financial Holding Co. Ltd.		102,500		55,210

				3,039,939
THAILAND — 2.21%
Bangkok Bank PCL Foreign		6,000		38,510
Bangkok Bank PCL NVDR		7,000		44,928
Banpu PCL NVDR		12,300		12,419
BTS Group Holdings PCL NVDR		65,000		19,638
Kasikornbank PCL Foreign		6,000		42,455
Kasikornbank PCL NVDR		7,000		49,311
Krung Thai Bank PCL NVDR		46,000		33,845
PTT Exploration & Production PCL NVDR		17,000		87,555
PTT Global Chemical PCL NVDR		18,000		34,940
PTT PCL NVDR		10,000		100,501
Siam Commercial Bank PCL NVDR		9,000		52,693
Thai Oil PCL NVDR		10,000		16,202
True Corp. PCL NVDR^a		62,492		22,500

				555,497
TURKEY — 1.66%
Akbank TAS		7,860		30,013
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		22,280		28,083
Enka Insaat ve Sanayi AS		5,433		13,621
Ford Otomotiv Sanayi AS^a		700		9,245
Haci Omer Sabanci Holding AS		7,360		34,106
KOC Holding AS		7,630		39,070
Koza Altin Isletmeleri AS		530		5,710
Tofas Turk Otomobil Fabrikasi AS		1,420		8,752
Turk Hava Yollari AO^a		3,162		10,037
Turk Telekomunikasyon AS		5,620		16,303
Turkcell Iletisim Hizmetleri AS^a		6,600		38,690
Turkiye Halk Bankasi AS		6,950		51,047
Turkiye Is Bankasi AS Class C		18,100		46,803
Turkiye Petrol Rafinerileri AS		1,520		35,782
Turkiye Sise ve Cam Fabrikalari AS		5,268		7,128


68		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS VALUE ETF

August 31, 2014


Security	Shares		Value

Turkiye Vakiflar Bankasi TAO Class D		9,520	$	21,970
Yapi ve Kredi Bankasi AS		9,970		22,223

				418,583
UNITED ARAB EMIRATES — 0.56%
Abu Dhabi Commercial Bank PJSC		8,530		18,602
DP World Ltd.		970		18,216
Dubai Islamic Bank PJSC		5,940		12,630
Emaar Properties PJSC		13,640		38,064
First Gulf Bank PJSC		5,090		25,290
National Bank of Abu Dhabi PJSC		7,340		27,977

				140,779

TOTAL COMMON STOCKS
(Cost: $21,699,455)				22,955,026

PREFERRED STOCKS — 8.52%

BRAZIL — 6.58%
AES Tiete SA		1,000		8,992
Banco Bradesco SA		16,000		292,034
Banco do Estado do Rio Grande do Sul SA Class B		2,000		13,810
Bradespar SA		3,000		27,418
Braskem SA Class A		2,000		13,631
Centrais Eletricas Brasileiras SA Class B		3,000		16,558
Companhia Energetica de Minas Gerais		8,395		71,886
Companhia Energetica de Sao Paulo Class B		2,000		28,326
Companhia Paranaense de Energia Class B		1,000		17,725
Gerdau SA		10,000		57,920
Itausa – Investimentos Itau SA		38,096		185,581
Metalurgica Gerdau SA		3,000		21,264
Oi SA		40,000		25,921
Petroleo Brasileiro SA		49,000		511,341
Suzano Papel e Celulose SA Class A		4,000		15,928
Telefonica Brasil SA		3,000		64,155
Usinas Siderurgicas de Minas Gerais SA Class A		5,000		18,055
Vale SA Class A		23,000		266,948

				1,657,493
COLOMBIA — 0.25%
Banco Davivienda SA		1,150		19,122
Grupo Argos SA		1,390		16,954


Security	Shares		Value

Grupo de Inversiones Suramericana SA		1,150	$	26,136

				62,212
RUSSIA — 0.24%
Surgutneftegas OJSC		82,000		60,349

				60,349
SOUTH KOREA — 1.45%
Hyundai Motor Co. Ltd.		290		42,901
Hyundai Motor Co. Ltd. Series 2		440		68,130
LG Chem Ltd.		80		13,926
Samsung Electronics Co. Ltd.		240		241,432

				366,389

TOTAL PREFERRED STOCKS
(Cost: $2,032,207)				2,146,443

SHORT-TERM INVESTMENTS — 1.20%

MONEY MARKET FUNDS — 1.20%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^d,e,f		282,936		282,936
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		17,812		17,812

				300,748

TOTAL SHORT-TERM INVESTMENTS
(Cost: $300,748)				300,748

TOTAL INVESTMENTS IN SECURITIES — 100.86%
(Cost: $24,032,410)				25,402,217
Other Assets, Less Liabilities — (0.86)%				(216,316	)

NET ASSETS — 100.00%			$	25,185,901

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

SP ADR — Sponsored American Depositary Receipts

^a	Non-income earning security.

^b	All or a portion of this security represents a security on loan. See Note 1.

^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 1.

See notes to consolidated financial statements.


CONSOLIDATED SCHEDULES OF INVESTMENTS			69

Consolidated Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2014


	iShares MSCI BRIC ETF			iShares MSCI Emerging Markets Asia ETF			iShares MSCI Emerging Markets Consumer Discretionary ETF

ASSETS
Investments, at cost:
Unaffiliated	$	383,348,348		$	74,113,745		$	5,178,978
Affiliated (Note 2)		11,245,811			1,882,791			150,084

Total cost of investments	$	394,594,159		$	75,996,536		$	5,329,062

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	410,192,679		$	80,445,299		$	6,127,211
Affiliated (Note 2)		11,245,811			1,882,791			150,084

Total fair value of investments		421,438,490			82,328,090			6,277,295
Foreign currency, at value^b		579,517			134,004			8,285
Cash		17,368			—			—
Receivables:
Investment securities sold		—			276,862			59,355
Dividends and interest		293,660			147,641			3,802

Total Assets		422,329,035			82,886,597			6,348,737


LIABILITIES
Payables:
Investment securities purchased		—			339,892			55,101
Collateral for securities on loan (Note 1)		10,946,555			1,797,272			141,113
Due to custodian		—			—			3,130
Foreign taxes (Note 1)		—			10,587			41
Investment advisory fees (Note 2)		217,981			32,610			3,400

Total Liabilities		11,164,536			2,180,361			202,785


NET ASSETS	$	411,164,499		$	80,706,236		$	6,145,952


Net assets consist of:
Paid-in capital	$	571,666,633		$	84,370,118		$	6,088,418
Undistributed net investment income		2,756,022			433,762			11,762
Accumulated net realized loss		(190,106,412	)		(10,429,625	)		(902,431	)
Net unrealized appreciation		26,848,256			6,331,981			948,203

NET ASSETS	$	411,164,499		$	80,706,236		$	6,145,952


Shares outstanding^c		10,000,000			1,300,000			100,000


Net asset value per share	$	41.12		$	62.08		$	61.46

^a	Securities on loan with values of $10,299,207, $1,693,860 and $129,957, respectively. See Note 1.

^b	Cost of foreign currency: $575,514, $133,986 and $8,319, respectively.

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

See notes to consolidated financial statements.


70		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI Emerging Markets Energy Capped ETF			iShares MSCI Emerging Markets Growth ETF			iShares MSCI Emerging Markets Minimum Volatility ETF

ASSETS
Investments, at cost:
Unaffiliated	$	2,342,017		$	5,184,499		$	1,903,326,204
Affiliated (Note 2)		17,785			101,316			44,547,230

Total cost of investments	$	2,359,802		$	5,285,815		$	1,947,873,434

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	1,975,772		$	5,896,991		$	2,069,411,791
Affiliated (Note 2)		17,785			101,316			44,547,230

Total fair value of investments		1,993,557			5,998,307			2,113,959,021
Foreign currency, at value^b		1,865			14,419			10,107,131
Cash		—			342			—
Receivables:
Investment securities sold		46,847			—			35,387,142
Due from custodian (Note 4)		—			—			4,686,450
Dividends and interest		549			5,263			6,008,424
Capital shares sold		—			—			4,511,297

Total Assets		2,042,818			6,018,331			2,174,659,465


LIABILITIES
Payables:
Investment securities purchased		46,932			—			45,071,147
Collateral for securities on loan (Note 1)		16,027			98,081			44,547,230
Line of credit (Note 7)		—			—			2,000,258
Due to custodian		—			—			2,102,561
Foreign taxes (Note 1)		—			104			146,345
Investment advisory fees (Note 2)		1,079			2,433			428,614

Total Liabilities		64,038			100,618			94,296,155


NET ASSETS	$	1,978,780		$	5,917,713		$	2,080,363,310


Net assets consist of:
Paid-in capital	$	3,421,694		$	5,931,623		$	2,038,702,260
Undistributed net investment income		20,121			27,387			14,508,908
Accumulated net realized loss		(1,096,750	)		(753,717	)		(138,943,596	)
Net unrealized appreciation (depreciation)		(366,285	)		712,420			166,095,738

NET ASSETS	$	1,978,780		$	5,917,713		$	2,080,363,310


Shares outstanding^c		50,000			100,000			33,300,000


Net asset value per share	$	39.58		$	59.18		$	62.47

^a	Securities on loan with values of $15,043, $91,878 and $41,364,601, respectively. See Note 1.

^b	Cost of foreign currency: $1,861, $14,507 and $10,105,547, respectively.

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

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			71

Consolidated Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI Emerging Markets Small-Cap ETF			iShares MSCI Emerging Markets Value ETF

ASSETS
Investments, at cost:
Unaffiliated	$	41,152,322		$	23,731,662
Affiliated (Note 2)		2,744,914			300,748

Total cost of investments	$	43,897,236		$	24,032,410

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	43,495,594		$	25,101,469
Affiliated (Note 2)		2,744,914			300,748

Total fair value of investments		46,240,508			25,402,217
Foreign currency, at value^b		67,553			28,762
Cash		102,908			31,686
Receivables:
Investment securities sold		492,613			119,607
Dividends and interest		114,724			54,739

Total Assets		47,018,306			25,637,011


LIABILITIES
Payables:
Investment securities purchased		575,992			136,865
Collateral for securities on loan (Note 1)		2,744,914			300,748
Foreign taxes (Note 1)		7,638			3,207
Investment advisory fees (Note 2)		23,877			10,290

Total Liabilities		3,352,421			451,110


NET ASSETS	$	43,665,885		$	25,185,901


Net assets consist of:
Paid-in capital	$	49,236,652		$	24,845,732
Undistributed net investment income		262,193			199,118
Accumulated net realized loss		(8,176,392	)		(1,228,542	)
Net unrealized appreciation		2,343,432			1,369,593

NET ASSETS	$	43,665,885		$	25,185,901


Shares outstanding^c		850,000			500,000


Net asset value per share	$	51.37		$	50.37

^a	Securities on loan with values of $2,467,641 and $281,971, respectively. See Note 1.

^b	Cost of foreign currency: $67,406 and $28,980, respectively.

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

See notes to consolidated financial statements.


72		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI BRIC ETF			iShares MSCI Emerging Markets Asia ETF			iShares MSCI Emerging Markets Consumer Discretionary ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	13,215,356		$	1,186,110		$	74,029
Interest — affiliated (Note 2)		62			7			—
Securities lending income — affiliated (Note 2)		209,092			14,757			1,912
Payment from affiliate (Note 2)		—			56,083			—

		13,424,510			1,256,957			75,941
Less: Other foreign taxes (Note 1)		—			(13,348	)		(79	)

Total investment income		13,424,510			1,243,609			75,862


EXPENSES
Investment advisory fees (Note 2)		2,950,620			296,354			34,904
Mauritius income taxes (Note 1)		29,259			—			—
Commitment fees (Note 7)		2,067			124			6
Interest expense (Note 7)		747			71			—

Total expenses		2,982,693			296,549			34,910
Less investment advisory fees waived (Note 2)		—			(82,805	)		—

Net expenses		2,982,693			213,744			34,910

Net investment income		10,441,817			1,029,865			40,952


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(18,681,878	)		(609,610	)		(85,134	)
In-kind redemptions — unaffiliated		3,406,947			508,260			—
Foreign currency transactions		(179,175	)		(34,303	)		(2,922	)

Net realized loss		(15,454,106	)		(135,653	)		(88,056	)

Net change in unrealized appreciation/depreciation on:
Investments		84,718,499			7,841,847			897,849
Translation of assets and liabilities in foreign currencies		71,119			1,132			86

Net change in unrealized appreciation/depreciation		84,789,618			7,842,979			897,935

Net realized and unrealized gain		69,335,512			7,707,326			809,879

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	79,777,329		$	8,737,191		$	850,831

^a	Net of foreign withholding tax of $1,127,225, $159,300 and $11,752, respectively.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			73

Consolidated Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI Emerging Markets Energy Capped ETF			iShares MSCI Emerging Markets Growth ETF			iShares MSCI Emerging Markets Minimum Volatility ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	64,633		$	106,777		$	62,833,263
Interest — affiliated (Note 2)		—			2			322
Securities lending income — affiliated (Note 2)		403			1,776			473,774

		65,036			108,555			63,307,359
Less: Other foreign taxes (Note 1)		—			(475	)		(150,578	)

Total investment income		65,036			108,080			63,156,781


EXPENSES
Investment advisory fees (Note 2)		12,636			37,510			15,031,499
Mauritius income taxes (Note 1)		—			—			25,329
Commitment fees (Note 7)		4			10			1,304
Interest expense (Note 7)		—			—			2,799

Total expenses		12,640			37,520			15,060,931
Less investment advisory fees waived (Note 2)		—			(10,481	)		(9,452,759	)

Net expenses		12,640			27,039			5,608,172

Net investment income		52,396			81,041			57,548,609


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(92,989	)		(106,192	)		(108,755,712	)
In-kind redemptions — unaffiliated		—			—			30,119,837
Foreign currency transactions		(867	)		(786	)		(1,401,815	)

Net realized loss		(93,856	)		(106,978	)		(80,037,690	)

Net change in unrealized appreciation/depreciation on:
Investments		249,873			992,241			311,471,749
Translation of assets and liabilities in foreign currencies		63			278			134,328

Net change in unrealized appreciation/depreciation		249,936			992,519			311,606,077

Net realized and unrealized gain		156,080			885,541			231,568,387

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	208,476		$	966,582		$	289,116,996

^a	Net of foreign withholding tax of $7,464, $12,434 and $7,625,142, respectively.

See notes to consolidated financial statements.


74		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI Emerging Markets Small-Cap ETF			iShares MSCI Emerging Markets Value ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	847,809		$	624,368
Interest — unaffiliated		1			—
Interest — affiliated (Note 2)		7			3
Securities lending income — affiliated (Note 2)		42,427			2,220
Payment from affiliate (Note 2)		73,193			—

		963,437			626,591
Less: Other foreign taxes (Note 1)		(9,439	)		(3,659	)

Total investment income		953,998			622,932


EXPENSES
Investment advisory fees (Note 2)		247,131			123,624
Commitment fees (Note 7)		52			29
Interest expense (Note 7)		71			44

Total expenses		247,254			123,697
Less investment advisory fees waived (Note 2)		—			(34,542	)

Net expenses		247,254			89,155

Net investment income		706,744			533,777


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		343,767			(252,624	)
Foreign currency transactions		(5,245	)		(6,018	)

Net realized gain (loss)		338,522			(258,642	)

Net change in unrealized appreciation/depreciation on:
Investments		5,680,030			2,859,994
Translation of assets and liabilities in foreign currencies		1,401			903

Net change in unrealized appreciation/depreciation		5,681,431			2,860,897

Net realized and unrealized gain		6,019,953			2,602,255

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,726,697		$	3,136,032

^a	Net of foreign withholding tax of $100,196 and $77,694, respectively.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			75

Consolidated Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI BRIC ETF						iShares MSCI Emerging Markets Asia ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	10,441,817		$	14,531,717		$	1,029,865		$	1,481,906
Net realized loss		(15,454,106	)		(28,282,720	)		(135,653	)		(13,002,316	)
Net change in unrealized appreciation/depreciation		84,789,618			18,953,553			7,842,979			187,713

Net increase (decrease) in net assets resulting from operations		79,777,329			5,202,550			8,737,191			(11,332,697	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(7,905,401	)		(13,252,516	)		(898,216	)		(1,144,738	)

Total distributions to shareholders		(7,905,401	)		(13,252,516	)		(898,216	)		(1,144,738	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		38,350,012			21,679,666			59,268,915			208,872,206
Cost of shares redeemed		(173,918,382	)		(223,917,437	)		(17,742,448	)		(185,124,642	)

Net increase (decrease) in net assets from capital share transactions		(135,568,370	)		(202,237,771	)		41,526,467			23,747,564

INCREASE (DECREASE) IN NET ASSETS		(63,696,442	)		(210,287,737	)		49,365,442			11,270,129

NET ASSETS
Beginning of year		474,860,941			685,148,678			31,340,794			20,070,665

End of year	$	411,164,499		$	474,860,941		$	80,706,236		$	31,340,794

Undistributed net investment income included in net assets at end of year	$	2,756,022		$	275,301		$	433,762		$	336,245


SHARES ISSUED AND REDEEMED
Shares sold		950,000			550,000			1,000,000			3,650,000
Shares redeemed		(4,750,000	)		(5,950,000	)		(300,000	)		(3,450,000	)

Net increase (decrease) in shares outstanding		(3,800,000	)		(5,400,000	)		700,000			200,000

See notes to consolidated financial statements.


76		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Emerging Markets Consumer Discretionary ETF						iShares MSCI Emerging Markets Energy Capped ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	40,952		$	19,267		$	52,396		$	51,980
Net realized loss		(88,056	)		(42,811	)		(93,856	)		(89,021	)
Net change in unrealized appreciation/depreciation		897,935			138,120			249,936			(118,848	)

Net increase (decrease) in net assets resulting from operations		850,831			114,576			208,476			(155,889	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(29,115	)		(30,681	)		(34,812	)		(46,822	)

Total distributions to shareholders		(29,115	)		(30,681	)		(34,812	)		(46,822	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		2,816,123			—			—			—

Net increase in net assets from capital share transactions		2,816,123			—			—			—

INCREASE (DECREASE) IN NET ASSETS		3,637,839			83,895			173,664			(202,711	)

NET ASSETS
Beginning of year		2,508,113			2,424,218			1,805,116			2,007,827

End of year	$	6,145,952		$	2,508,113		$	1,978,780		$	1,805,116

Undistributed net investment income included in net assets at end of year	$	11,762		$	2,847		$	20,121		$	3,193


SHARES ISSUED
Shares sold		50,000			—			—			—

Net increase in shares outstanding		50,000			—			—			—

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			77

Consolidated Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Emerging Markets Growth ETF						iShares MSCI Emerging Markets Minimum Volatility ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	81,041		$	56,453		$	57,548,609		$	44,316,678
Net realized loss		(106,978	)		(488,613	)		(80,037,690	)		(21,497,246	)
Net change in unrealized appreciation/depreciation		992,519			188,328			311,606,077			(153,606,739	)

Net increase (decrease) in net assets resulting from operations		966,582			(243,832	)		289,116,996			(130,787,307	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(75,147	)		(78,638	)		(58,169,702	)		(29,485,424	)

Total distributions to shareholders		(75,147	)		(78,638	)		(58,169,702	)		(29,485,424	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		—			2,836,973			323,291,843			2,246,859,727
Cost of shares redeemed		—			(7,609,183	)		(929,603,299	)		(18,086,598	)

Net increase (decrease) in net assets from capital share transactions		—			(4,772,210	)		(606,311,456	)		2,228,773,129

INCREASE (DECREASE) IN NET ASSETS		891,435			(5,094,680	)		(375,364,162	)		2,068,500,398

NET ASSETS
Beginning of year		5,026,278			10,120,958			2,455,727,472			387,227,074

End of year	$	5,917,713		$	5,026,278		$	2,080,363,310		$	2,455,727,472

Undistributed net investment income included in net assets at end of year	$	27,387		$	20,197		$	14,508,908		$	15,887,809


SHARES ISSUED AND REDEEMED
Shares sold		—			50,000			5,300,000			37,500,000
Shares redeemed		—			(150,000	)		(16,200,000	)		(300,000	)

Net increase (decrease) in shares outstanding		—			(100,000	)		(10,900,000	)		37,200,000

See notes to consolidated financial statements.


78		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Emerging Markets Small-Cap ETF						iShares MSCI Emerging Markets Value ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	706,744		$	452,278		$	533,777		$	287,929
Net realized gain (loss)		338,522			192,570			(258,642	)		(808,943	)
Net change in unrealized appreciation/depreciation		5,681,431			(2,594,104	)		2,860,897			(187,045	)

Net increase (decrease) in net assets resulting from operations		6,726,697			(1,949,256	)		3,136,032			(708,059	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(736,376	)		(514,561	)		(388,580	)		(279,968	)

Total distributions to shareholders		(736,376	)		(514,561	)		(388,580	)		(279,968	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		7,031,811			24,419,011			11,651,839			7,122,017
Cost of shares redeemed		—			—			—			(4,408,081	)

Net increase in net assets from capital share transactions		7,031,811			24,419,011			11,651,839			2,713,936

INCREASE IN NET ASSETS		13,022,132			21,955,194			14,399,291			1,725,909

NET ASSETS
Beginning of year		30,643,753			8,688,559			10,786,610			9,060,701

End of year	$	43,665,885		$	30,643,753		$	25,185,901		$	10,786,610

Undistributed net investment income included in net assets at end of year	$	262,193		$	171,259		$	199,118		$	48,204


SHARES ISSUED AND REDEEMED
Shares sold		150,000			500,000			250,000			150,000
Shares redeemed		—			—			—			(100,000	)

Net increase in shares outstanding		150,000			500,000			250,000			50,000

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			79

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)



		iShares MSCI BRIC ETF


	Year ended Aug. 31, 2014 (Consolidated)			Year ended Aug. 31, 2013 (Consolidated)			Year ended Aug. 31, 2012 (Consolidated)			Year ended Aug. 31, 2011 (Consolidated)			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	34.41		$	35.68		$	42.25		$	42.94		$	37.57

Income from investment operations:
Net investment income^a		0.89			0.84			0.98			0.89			0.66
Net realized and unrealized gain (loss)^b		6.53			(1.25	)		(6.62	)		(0.58	)		5.35

Total from investment operations		7.42			(0.41	)		(5.64	)		0.31			6.01

Less distributions from:
Net investment income		(0.71	)		(0.86	)		(0.93	)		(1.00	)		(0.64	)

Total distributions		(0.71	)		(0.86	)		(0.93	)		(1.00	)		(0.64	)

Net asset value, end of year	$	41.12		$	34.41		$	35.68		$	42.25		$	42.94


Total return		21.73	%		(1.17	)%		(13.33	)%		0.49	%		15.95	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	411,164		$	474,861		$	685,149		$	866,194		$	946,814
Ratio of expenses to average net assets		0.68	%		0.67	%		0.69	%		0.67	%		0.69	%
Ratio of expenses to average net assets prior to waived fees		n/a			n/a			n/a			0.67	%		n/a
Ratio of net investment income to average net assets		2.38	%		2.18	%		2.55	%		1.86	%		1.52	%
Portfolio turnover rate^c		10	%		10	%		32	%		13	%		9	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013, August 31, 2012, August 31, 2011 and August 31, 2010 were 6%, 9%, 20%, 10% and 8%, respectively. See Note 4.

See notes to consolidated financial statements.


80		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI Emerging Markets Asia ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Feb. 8, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	52.23		$	50.18		$	54.71

Income from investment operations:
Net investment income^b		1.36			1.15			0.87
Net realized and unrealized gain (loss)^c		9.75			1.82			(4.99	)

Total from investment operations		11.11			2.97			(4.12	)

Less distributions from:
Net investment income		(1.26	)		(0.92	)		(0.41	)

Total distributions		(1.26	)		(0.92	)		(0.41	)

Net asset value, end of period	$	62.08		$	52.23		$	50.18


Total return		21.54	%^e		5.88	%		(7.52	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	80,706		$	31,341		$	20,071
Ratio of expenses to average net assets^f		0.49	%		0.49	%		0.49	%
Ratio of expenses to average net assets prior to waived fees^f		0.68	%		0.68	%		0.68	%
Ratio of net investment income to average net assets^f		2.36	%		2.09	%		3.05	%
Portfolio turnover rate^g		33	%		174	%		3	%

^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	Includes payment from an affiliate. See Note 2. Not including these proceeds, the Fund’s total return would have been 21.46%.

^f	Annualized for periods of less than one year.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 33%. 21% and 3%, respectively. See Note 4.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL HIGHLIGHTS			81

Consolidated Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

iShares MSCI Emerging Markets Consumer Discretionary ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Feb. 8, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	50.16		$	48.48		$	51.54

Income from investment operations:
Net investment income^b		0.44			0.39			0.26
Net realized and unrealized gain (loss)^c		11.15			1.90			(3.19	)

Total from investment operations		11.59			2.29			(2.93	)

Less distributions from:
Net investment income		(0.29	)		(0.61	)		(0.13	)

Total distributions		(0.29	)		(0.61	)		(0.13	)

Net asset value, end of period	$	61.46		$	50.16		$	48.48


Total return		23.16	%		4.73	%		(5.68	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	6,146		$	2,508		$	2,424
Ratio of expenses to average net assets^e		0.67	%		0.67	%		0.68	%
Ratio of net investment income to average net assets^e		0.79	%		0.76	%		0.94	%
Portfolio turnover rate^f		10	%		10	%		54	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 10%, 10%, and 5%, respectively. See Note 4.

See notes to consolidated financial statements.


82		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

iShares MSCI Emerging Markets Energy Capped ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Feb. 8, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	36.10		$	40.16		$	51.12

Income from investment operations:
Net investment income^b		1.05			1.04			1.05
Net realized and unrealized gain (loss)^c		3.13			(4.16	)		(11.14	)

Total from investment operations		4.18			(3.12	)		(10.09	)

Less distributions from:
Net investment income		(0.70	)		(0.94	)		(0.84	)
Return of capital		—			—			(0.03	)

Total distributions		(0.70	)		(0.94	)		(0.87	)

Net asset value, end of period	$	39.58		$	36.10		$	40.16


Total return		11.65	%		(7.73	)%		(19.71	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,979		$	1,805		$	2,008
Ratio of expenses to average net assets^e		0.67	%		0.67	%		0.68	%
Ratio of net investment income to average net assets^e		2.79	%		2.56	%		4.23	%
Portfolio turnover rate^f		15	%		7	%		29	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 15%, 7% and 3%, respectively. See Note 4.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL HIGHLIGHTS			83

Consolidated Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

iShares MSCI Emerging Markets Growth ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Feb. 8, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	50.26		$	50.60		$	54.24

Income from investment operations:
Net investment income^b		0.81			0.85			0.66
Net realized and unrealized gain (loss)^c		8.86			0.13			(3.87	)

Total from investment operations		9.67			0.98			(3.21	)

Less distributions from:
Net investment income		(0.75	)		(1.32	)		(0.43	)

Total distributions		(0.75	)		(1.32	)		(0.43	)

Net asset value, end of period	$	59.18		$	50.26		$	50.60


Total return		19.36	%		1.76	%		(5.90	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	5,918		$	5,026		$	10,121
Ratio of expenses to average net assets^e		0.49	%		0.49	%		0.49	%
Ratio of expenses to average net assets prior to waived fees^e		0.68	%		0.68	%		0.68	%
Ratio of net investment income to average net assets^e		1.47	%		1.59	%		2.27	%
Portfolio turnover rate^f		26	%		64	%		12	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 26%, 28% and 12%, respectively. See Note 4.

See notes to consolidated financial statements.


84		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

iShares MSCI Emerging Markets Minimum Volatility ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Oct. 18, 2011^a to Aug. 31, 2012
Net asset value, beginning of period	$	55.56		$	55.32		$	49.30

Income from investment operations:
Net investment income^b		1.51			1.85			1.93
Net realized and unrealized gain (loss)^c		6.94			(0.60	)		5.41

Total from investment operations		8.45			1.25			7.34

Less distributions from:
Net investment income		(1.54	)		(1.01	)		(1.32	)

Total distributions		(1.54	)		(1.01	)		(1.32	)

Net asset value, end of period	$	62.47		$	55.56		$	55.32


Total return		15.44	%		2.22	%		15.16	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,080,363		$	2,455,727		$	387,227
Ratio of expenses to average net assets^e		0.25	%		0.25	%		0.25	%
Ratio of expenses to average net assets prior to waived fees^e		0.67	%		0.67	%		0.69	%
Ratio of net investment income to average net assets^e		2.58	%		3.13	%		4.08	%
Portfolio turnover rate^f		34	%		23	%		31	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 26%, 23% and 16%, respectively. See Note 4.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL HIGHLIGHTS			85

Consolidated Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

iShares MSCI Emerging Markets Small-Cap ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Period from Aug. 16, 2011^a to Aug. 31, 2011
Net asset value, beginning of period	$	43.78		$	43.44		$	49.60		$	50.54

Income from investment operations:
Net investment income^b		0.93			1.07			0.50			0.07
Net realized and unrealized gain (loss)^c		7.67			1.13			(5.52	)		(1.01	)

Total from investment operations		8.60			2.20			(5.02	)		(0.94	)

Less distributions from:
Net investment income		(1.01	)		(1.86	)		(1.14	)		—

Total distributions		(1.01	)		(1.86	)		(1.14	)		—

Net asset value, end of period	$	51.37		$	43.78		$	43.44		$	49.60


Total return		19.92	%^e		4.85	%		(9.98	)%		(1.86	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	43,666		$	30,644		$	8,689		$	69,443
Ratio of expenses to average net assets^f		0.67	%		0.67	%		0.69	%		0.69	%
Ratio of net investment income to average net assets^f		1.93	%		2.26	%		1.13	%		3.33	%
Portfolio turnover rate^g		20	%		21	%		32	%		2	%

^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	Includes payment from an affiliate. See Note 2. Not including these proceeds, the Fund’s total return would have been 19.73%.

^f	Annualized for periods of less than one year.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013, August 31, 2012 and the period ended August 31, 2011 were 20%, 21%, 17% and 2%, respectively. See Note 4.

See notes to consolidated financial statements.


86		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

iShares MSCI Emerging Markets Value ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Feb. 8, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	43.15		$	45.30		$	52.58

Income from investment operations:
Net investment income^b		1.36			1.34			1.00
Net realized and unrealized gain (loss)^c		6.83			(2.11	)		(7.54	)

Total from investment operations		8.19			(0.77	)		(6.54	)

Less distributions from:
Net investment income		(0.97	)		(1.38	)		(0.74	)

Total distributions		(0.97	)		(1.38	)		(0.74	)

Net asset value, end of period	$	50.37		$	43.15		$	45.30


Total return		19.20	%		(1.83	)%		(12.41	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	25,186		$	10,787		$	9,061
Ratio of expenses to average net assets^e		0.49	%		0.49	%		0.49	%
Ratio of expenses to average net assets prior to waived fees^e		0.68	%		0.68	%		0.68	%
Ratio of net investment income to average net assets^e		2.94	%		2.84	%		3.73	%
Portfolio turnover rate^f		25	%		47	%		12	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013 and the period ended August 31, 2012, were 25%, 26% and 12%, respectively. See Note 4.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL HIGHLIGHTS			87

Notes to Consolidated Financial Statements

iSHARES^®, INC.

These consolidated financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):


iShares ETF	Diversification Classification
MSCI BRIC		Diversified
MSCI Emerging Markets Asia		Diversified
MSCI Emerging Markets Consumer Discretionary		Non-diversified
MSCI Emerging Markets Energy Capped		Non-diversified


iShares ETF	Diversification Classification
MSCI Emerging Markets Growth		Non-diversified
MSCI Emerging Markets Minimum Volatility		Non-diversified
MSCI Emerging Markets Small-Cap		Non-diversified
MSCI Emerging Markets Value		Non-diversified

Each Fund carries out its investment strategies associated with investment in Indian securities by investing in a wholly-owned subsidiary in the Republic of Mauritius (each, a “Subsidiary”), which in turn invests in Indian securities included in the underlying index. The investment adviser of each Fund also serves as the investment adviser to each Subsidiary. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. The accompanying consolidated financial statements for each Fund include the accounts of its Subsidiary. Intercompany accounts and transactions, if any, have been eliminated.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION


88		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			89

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2			Level 3		Total
MSCI BRIC
Assets:
Common Stocks	$	359,176,830	$	392,625		$	—	$	359,569,455
Preferred Stocks		50,623,224		—			—		50,623,224
Money Market Funds		11,245,811		—			—		11,245,811

	$	421,045,865	$	392,625		$	—	$	421,438,490


MSCI Emerging Markets Asia
Assets:
Common Stocks	$	79,451,785	$	43,625		$	—	$	79,495,410
Preferred Stocks		949,889		—			—		949,889
Warrants		—		0	^a		—		0	^a
Money Market Funds		1,882,791		—			—		1,882,791

	$	82,284,465	$	43,625		$	—	$	82,328,090


MSCI Emerging Markets Consumer Discretionary
Assets:
Common Stocks	$	5,911,027	$	16,619		$	—	$	5,927,646
Preferred Stocks		199,565		—			—		199,565
Money Market Funds		150,084		—			—		150,084

	$	6,260,676	$	16,619		$	—	$	6,277,295


MSCI Emerging Markets Energy Capped
Assets:
Common Stocks	$	1,761,478	$	—		$	—	$	1,761,478
Preferred Stocks		214,294		—			—		214,294
Money Market Funds		17,785		—			—		17,785

	$	1,993,557	$	—		$	—	$	1,993,557

MSCI Emerging Markets Growth
Assets:
Common Stocks	$	5,631,569	$	—		$	—	$	5,631,569
Preferred Stocks		265,422		—			—		265,422
Warrants		—		0	^a		—		0	^a
Money Market Funds		101,316		—			—		101,316

	$	5,998,307	$	0	^a	$	—	$	5,998,307


90		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2		Level 3		Total
MSCI Emerging Markets Minimum Volatility
Assets:
Common Stocks	$	2,002,278,112	$	—	$	—	$	2,002,278,112
Preferred Stocks		67,133,679		—		—		67,133,679
Money Market Funds		44,547,230		—		—		44,547,230

	$	2,113,959,021	$	—	$	—	$	2,113,959,021


MSCI Emerging Markets Small-Cap
Assets:
Common Stocks	$	42,468,929	$	605,398	$	56,797	$	43,131,124
Preferred Stocks		360,146		—		—		360,146
Rights		148		4,176		—		4,324
Money Market Funds		2,744,914		—		—		2,744,914

	$	45,574,137	$	609,574	$	56,797	$	46,240,508


MSCI Emerging Markets Value
Assets:
Common Stocks	$	22,955,010	$	—	$	16	$	22,955,026
Preferred Stocks		2,146,443		—		—		2,146,443
Money Market Funds		300,748		—		—		300,748

	$	25,402,201	$	—	$	16	$	25,402,217

Rounds to less than $1.

The iShares MSCI Emerging Markets Small-Cap ETF had transfers from Level 1 to Level 2 in the amount of $392,890 resulting from a temporary suspension of trading.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			91

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

FOREIGN TAXES

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their consolidated statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2014, if any, are disclosed in the Funds’ consolidated statements of assets and liabilities.

Each Fund conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”). In order to be eligible to claim benefits under the DTAA, each Subsidiary must satisfy certain conditions, including the establishment and maintenance of valid tax residence in Mauritius. Each Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, a system of tax credits effectively reduces the Mauritius income tax rate to a maximum of 3%. These income taxes, if any, are paid by the Funds and are disclosed in the consolidated statements of operations. Further, each Subsidiary is not subject to tax in Mauritius on any gains from the sale of securities. Any dividends paid by a Subsidiary to its Fund will also be exempt from tax in Mauritius. The foregoing is based upon current interpretation and practice and is subject to future changes in the tax laws of India or Mauritius and in the DTAA.

As a result of legislative changes enacted by the 2012 India Finance Act (“the Act”) and its general anti-avoidance rules (“GAAR”), which are effective April 1, 2013 but have been proposed to be deferred until April 1, 2016, the Subsidiaries’ ability to leverage the treaty between Mauritius and India may be adversely impacted, and therefore the Funds may be subject to taxes on capital gains and/or dividends realized on Indian securities. The Act also includes provisions that impose Indian tax on the transfer of shares of an Indian company. However, until more definitive guidance on the legislative changes is available, the impact to the Funds, if any, cannot be determined at this time.

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


92		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

entitled to all distributions made on or in respect of the loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

Any cash received as collateral for securities on loan 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of August 31, 2014, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA and is disclosed in the consolidated schedules of investments. The value of any securities on loan as of August 31, 2014 and the value of the related collateral are disclosed in the consolidated statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the consolidated statements of operations.

The following table is a summary of each Fund’s securities lending agreements which are subject to offset under an MSLA as of August 31, 2014:


iShares ETF	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI BRIC	$	10,299,207	$	10,299,207	$	—
MSCI Emerging Markets Asia		1,693,860		1,693,860		—
MSCI Emerging Markets Consumer Discretionary		129,957		129,957		—
MSCI Emerging Markets Energy Capped		15,043		15,043		—
MSCI Emerging Markets Growth		91,878		91,878		—
MSCI Emerging Markets Minimum Volatility		41,364,601		41,364,601		—
MSCI Emerging Markets Small-Cap		2,467,641		2,467,641		—
MSCI Emerging Markets Value		281,971		281,971		—

RECENT ACCOUNTING STANDARD


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			93

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

repurchase agreements and similar transactions accounted for as secured borrowings, including securities lending. The guidance is effective for financial statements for fiscal years beginning after December 15, 2014, and interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Funds’ financial statements and disclosures.

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

Each Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. Each Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

For its investment advisory services to each of the iShares MSCI BRIC, iShares MSCI Emerging Markets Consumer Discretionary, iShares MSCI Emerging Markets Energy Capped, iShares MSCI Emerging Markets Minimum Volatility and iShares MSCI Emerging Markets Small-Cap ETFs, 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 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
	0.54	^a	Over $42 billion, up to and including $56 billion
	0.47	^a	Over $56 billion, up to and including $70 billion
	0.41	^a	Over $70 billion, up to and including $84 billion
	0.35	^a	Over $84 billion

Investment advisory fee was reduced effective July 1, 2014. Prior to this date, the investment advisory fee for these breakpoint levels were 0.56%, 0.50%, 0.45% and 0.40%, respectively.

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI Emerging Markets Minimum Volatility ETF through December 31, 2015 in order to limit total annual operating expenses to 0.25% of average daily net assets.

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows:


iShares ETF	Investment Advisory Fee
MSCI Emerging Markets Asia		0.68	%
MSCI Emerging Markets Growth		0.68
MSCI Emerging Markets Value		0.68


94		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI Emerging Markets Asia, iShares MSCI Emerging Markets Growth and iShares MSCI Emerging Markets Value ETFs through December 31, 2015 in order to limit total annual operating expenses to 0.49% of average daily net assets.

For the year ended August 31, 2014, each Fund paid to BTC the following amounts in total for securities lending agent services and collateral investment fees:


iShares ETF	Fees Paid to BTC
MSCI BRIC	$	85,817
MSCI Emerging Markets Asia		5,634
MSCI Emerging Markets Consumer Discretionary		750
MSCI Emerging Markets Energy Capped		159


iShares ETF	Fees Paid to BTC
MSCI Emerging Markets Growth	$	712
MSCI Emerging Markets Minimum Volatility		180,207
MSCI Emerging Markets Small-Cap		16,538
MSCI Emerging Markets Value		901

Prior to January 1, 2014, each Fund retained 65% of securities lending income and paid no collateral investment fees.

The iShares MSCI Emerging Markets Asia ETF and iShares MSCI Emerging Markets Small-Cap ETF received payments from BTC to compensate for forgone securities lending revenue. The payments are reported in the consolidated statements of operations under “Payment from affiliate”.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			95

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

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 year ended August 31, 2014 were as follows:


iShares ETF	Purchases		Sales
MSCI BRIC	$	44,449,722	$	98,111,932
MSCI Emerging Markets Asia		61,811,236		14,207,207
MSCI Emerging Markets Consumer Discretionary		2,100,244		522,907
MSCI Emerging Markets Energy Capped		310,499		280,559
MSCI Emerging Markets Growth		1,408,358		1,403,944
MSCI Emerging Markets Minimum Volatility		750,037,910		1,087,073,266
MSCI Emerging Markets Small-Cap		14,325,388		7,382,078
MSCI Emerging Markets Value		10,818,183		4,582,232

In-kind transactions (see Note 4) for the year ended August 31, 2014 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI BRIC	$	20,731,287	$	97,915,716
MSCI Emerging Markets Asia		—		6,079,281
MSCI Emerging Markets Consumer Discretionary		1,235,754		—
MSCI Emerging Markets Minimum Volatility		134,846,964		408,731,720
MSCI Emerging Markets Value		5,537,729		—

4.	*CAPITAL SHARE TRANSACTIONS*


96		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s 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 may also 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. Such variable charges, if any, are included in “Proceeds from shares sold” in the consolidated statements of changes in net assets.

5.	*MARKET AND CREDIT RISK*

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss each Fund may suffer through holding market positions in the face of market movements. Each Fund is exposed to market risk by virtue of its investment in equity instruments. The fair value of securities held by the Funds may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of each Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s consolidated schedule of investments.

The iShares MSCI Emerging Markets Consumer Discretionary ETF and iShares MSCI Emerging Markets Energy Capped ETF each invests its assets in securities within a single or limited number of market sectors. When a fund concentrates its investments


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			97

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

in this manner, it assumes the risk that economic, political and social conditions affecting those market sectors may have a significant impact on its investment performance.

The United States and the European Union, along with the regulatory bodies of a number of countries including Japan, Australia and Canada (collectively, “Sanctioning Bodies”), have imposed sectorial economic sanctions on certain Russian individuals and Russian corporate entities which include prohibitions on transacting in or dealing in new debt of longer than 30 or 90 days maturity or new equity of such issuers. Securities held by the Fund issued prior to the date of the sanctions being imposed are not currently subject to any restrictions under the sanctions. However, compliance with each of these sanctions may impair the ability of a Fund to buy, sell, hold, receive or deliver the affected securities or other securities of such issuers. The Sanctioning Bodies could also institute broader sanctions on Russia. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. Current or future sanctions may result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. These retaliatory measures may include the immediate freeze of Russian assets held by a Fund.

CREDIT RISK

6.	*INCOME TAX INFORMATION*

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of August 31, 2014, attributable to passive foreign investment companies, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


98		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI BRIC	$	2,209,208	$	(55,695	)	$	(2,153,513	)
MSCI Emerging Markets Asia		471,951		(34,132	)		(437,819	)
MSCI Emerging Markets Consumer Discretionary		—		(2,922	)		2,922
MSCI Emerging Markets Energy Capped		—		(656	)		656
MSCI Emerging Markets Growth		—		1,296			(1,296	)
MSCI Emerging Markets Minimum Volatility		28,692,108		(757,808	)		(27,934,300	)
MSCI Emerging Markets Small-Cap		—		120,566			(120,566	)
MSCI Emerging Markets Value		—		5,717			(5,717	)

The tax character of distributions paid during the years ended August 31, 2014 and August 31, 2013 was as follows:


iShares ETF	2014		2013
MSCI BRIC
Ordinary income	$	7,905,401	$	13,252,516


MSCI Emerging Markets Asia
Ordinary income	$	898,216	$	1,144,738


MSCI Emerging Markets Consumer Discretionary
Ordinary income	$	29,115	$	30,681


MSCI Emerging Markets Energy Capped
Ordinary income	$	34,812	$	46,822


MSCI Emerging Markets Growth
Ordinary income	$	75,147	$	78,638


MSCI Emerging Markets Minimum Volatility
Ordinary income	$	58,169,702	$	29,485,424


MSCI Emerging Markets Small-Cap
Ordinary income	$	736,376	$	514,561


MSCI Emerging Markets Value
Ordinary income	$	388,580	$	279,968


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			99

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2014, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a			Qualified Late-Year Losses^b			Total
MSCI BRIC	$	3,292,439	$	(161,689,487	)	$	14,859,237		$	(16,964,323	)	$	(160,502,134	)
MSCI Emerging Markets Asia		572,819		(9,289,694	)		5,102,865			(49,872	)		(3,663,882	)
MSCI Emerging Markets Consumer Discretionary		12,712		(811,736	)		941,670			(85,112	)		57,534
MSCI Emerging Markets Energy Capped		23,066		(996,570	)		(384,982	)		(84,428	)		(1,442,914	)
MSCI Emerging Markets Growth		36,659		(627,663	)		687,774			(110,680	)		(13,910	)
MSCI Emerging Markets Minimum Volatility		16,274,223		(15,978,688	)		137,994,013			(96,628,498	)		41,661,050
MSCI Emerging Markets Small-Cap		639,121		(8,080,278	)		1,870,390			—			(5,570,767	)
MSCI Emerging Markets Value		240,271		(511,452	)		793,655			(182,305	)		340,169

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of August 31, 2014, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


iShares ETF	Non- Expiring^a		Expiring 2017		Expiring 2018		Expiring 2019		Total
MSCI BRIC	$	141,120,103	$	1,540,740	$	11,268,086	$	7,760,558	$	161,689,487
MSCI Emerging Markets Asia		9,289,694		—		—		—		9,289,694
MSCI Emerging Markets Consumer Discretionary		811,736		—		—		—		811,736
MSCI Emerging Markets Energy Capped		996,570		—		—		—		996,570
MSCI Emerging Markets Growth		627,663		—		—		—		627,663
MSCI Emerging Markets Minimum Volatility		15,978,688		—		—		—		15,978,688
MSCI Emerging Markets Small-Cap		8,080,278		—		—		—		8,080,278
MSCI Emerging Markets Value		511,452		—		—		—		511,452

Must be utilized prior to losses subject to expiration.

For the year ended August 31, 2014, the iShares MSCI Emerging Markets Small-Cap ETF utilized $208,303 of its capital loss carryforwards.


100		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI BRIC	$	406,583,178	$	77,419,534	$	(62,564,222	)	$	14,855,312
MSCI Emerging Markets Asia		77,225,652		8,228,088		(3,125,650	)		5,102,438
MSCI Emerging Markets Consumer Discretionary		5,335,598		1,138,380		(196,683	)		941,697
MSCI Emerging Markets Energy Capped		2,378,501		80,424		(465,368	)		(384,944	)
MSCI Emerging Markets Growth		5,310,461		998,908		(311,062	)		687,846
MSCI Emerging Markets Minimum Volatility		1,975,975,968		244,953,186		(106,970,133	)		137,983,053
MSCI Emerging Markets Small-Cap		44,370,310		6,229,690		(4,359,492	)		1,870,198
MSCI Emerging Markets Value		24,608,348		2,425,827		(1,631,958	)		793,869

7.	*LINE OF CREDIT*

The Funds, along with certain other iShares funds, are parties to a $150 million credit agreement with State Street Bank and Trust Company, which expires October 28, 2015. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.08% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

For the year ended August 31, 2014, the maximum amounts borrowed, the average borrowings and the weighted average interest rates under the credit agreement were as follows:


iShares ETF	Maximum Amount Borrowed		Average Borrowings		Weighted Average Interest Rates
MSCI BRIC	$	1,600,000	$	63,521		1.16	%
MSCI Emerging Markets Asia		120,000		6,041		1.16
MSCI Emerging Markets Minimum Volatility		11,365,000		239,877		1.15
MSCI Emerging Markets Small-Cap		200,000		5,959		1.17
MSCI Emerging Markets Value		125,000		3,778		1.16

The iShares MSCI Emerging Markets Consumer Discretionary ETF, the iShares MSCI Emerging Markets Energy Capped ETF, and the iShares MSCI Emerging Markets Growth ETF did not borrow under the credit agreement during the year ended August 31, 2014.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			101

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

8.	*SUBSEQUENT EVENTS*

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


102		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

iShares, Inc.:

In our opinion, the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, and the related consolidated statements of operations and of changes in net assets and the consolidated financial highlights present fairly, in all material respects, the financial position of iShares MSCI BRIC ETF, iShares MSCI Emerging Markets Asia ETF, iShares MSCI Emerging Markets Consumer Discretionary ETF, iShares MSCI Emerging Markets Energy Capped ETF, iShares MSCI Emerging Markets Growth ETF, iShares MSCI Emerging Markets Minimum Volatility ETF, iShares MSCI Emerging Markets Small-Cap ETF and iShares MSCI Emerging Markets Value ETF and their subsidiaries (the “Funds”) at August 31, 2014, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These consolidated financial statements and consolidated financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2014


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			103

Tax Information (Unaudited)

iSHARES^®, INC.


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI BRIC	$	14,342,581	$	1,153,698
MSCI Emerging Markets Asia		1,345,410		168,537
MSCI Emerging Markets Consumer Discretionary		85,781		10,436
MSCI Emerging Markets Energy Capped		72,097		7,443
MSCI Emerging Markets Growth		119,155		12,606
MSCI Emerging Markets Minimum Volatility		70,461,415		7,649,359
MSCI Emerging Markets Small-Cap		948,005		107,130
MSCI Emerging Markets Value		701,544		81,281


iShares ETF	Qualified Dividend Income
MSCI BRIC	$	8,384,985
MSCI Emerging Markets Asia		744,246
MSCI Emerging Markets Consumer Discretionary		39,551
MSCI Emerging Markets Energy		42,255


iShares ETF	Qualified Dividend Income
MSCI Emerging Markets Growth	$	62,726
MSCI Emerging Markets Minimum Volatility		35,573,909
MSCI Emerging Markets Small-Cap		356,410
MSCI Emerging Markets Value		439,985


104		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI BRIC ETF, iShares MSCI Emerging Markets Consumer Discretionary ETF, iShares MSCI Emerging Markets Energy Capped ETF, iShares Emerging Markets Minimum Volatility ETF and iShares MSCI Emerging Markets Small-Cap ETF


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			105

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

The Board also noted that the investment advisory fee rates and overall expenses for the Funds were lower than the median of the investment advisory fee rates and overall expenses of the funds in their respective Lipper Group, except for iShares MSCI Emerging Markets Energy Capped ETF, which were within range of the median of the investment advisory fee rates and overall expenses of the funds in its Lipper Group.


106		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates, and that, following receipt of a proposal from the Board and negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Funds to reduce the advisory fee for certain breakpoint tiers, as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rates reflects appropriate sharing of potential economies of scale with the Funds’ shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with substantially similar investment objectives and strategies as the Funds, except for iShares MSCI Emerging Markets Consumer Discretionary ETF and iShares MSCI Emerging Markets Energy Capped ETF. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			107

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

II. iShares MSCI Emerging Markets Asia ETF, iShares MSCI Emerging Markets Growth ETF and iShares MSCI Emerging Markets Value ETF


108		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Advisory Contract for the Funds, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

The Board also noted that the investment advisory fee rates and overall expenses for the Funds were within range of the median of the investment advisory fee rates and overall expenses of the funds in their respective Lipper Group.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			109

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

committed significant resources over time, including during the past year, to supporting the Funds and their shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds did not provide for any breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that should material economies of scale exist in the future, a breakpoint structure for the Funds may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the investment advisory fee rates incorporate potential economies of scale and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


110		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with substantially similar investment objectives and strategies as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			111

Supplemental Information (Unaudited)

iSHARES^®, INC.

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	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
MSCI BRIC	$	0.706005	$	—	$	—	$	0.706005		100	%		—	%		—	%		100	%
MSCI Emerging Markets Asia		1.262684		—		—		1.262684		100			—			—			100
MSCI Emerging Markets Consumer Discretionary		0.291145		—		—		0.291145		100			—			—			100
MSCI Emerging Markets Energy Capped		0.696232		—		—		0.696232		100			—			—			100
MSCI Emerging Markets Growth		0.726213		—		0.025252		0.751465		97			—			3			100
MSCI Emerging Markets Minimum Volatility		1.543810		—		—		1.543810		100			—			—			100
MSCI Emerging Markets Small-Cap		0.958645		—		0.053946		1.012591		95			—			5			100
MSCI Emerging Markets Value		0.965075		—		—		0.965075		100			—			—			100

Premium/Discount Information

The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five calendar years (or for each full calendar quarter completed after the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.


112		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI BRIC ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		1		0.07	%
Greater than 3.0% and Less than 3.5%		2		0.14
Greater than 2.5% and Less than 3.0%		6		0.43
Greater than 2.0% and Less than 2.5%		14		1.01
Greater than 1.5% and Less than 2.0%		42		3.04
Greater than 1.0% and Less than 1.5%		152		11.00
Greater than 0.5% and Less than 1.0%		195		14.11
Between 0.5% and –0.5%		653		47.26
Less than –0.5% and Greater than –1.0%		198		14.34
Less than –1.0% and Greater than –1.5%		71		5.14
Less than –1.5% and Greater than –2.0%		30		2.17
Less than –2.0% and Greater than –2.5%		10		0.72
Less than –2.5% and Greater than –3.0%		5		0.36
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –3.5%		2		0.14

		1,382		100.00	%

iShares MSCI Emerging Markets Asia ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.18	%
Greater than 2.5% and Less than 3.0%		2		0.35
Greater than 2.0% and Less than 2.5%		3		0.53
Greater than 1.5% and Less than 2.0%		17		3.01
Greater than 1.0% and Less than 1.5%		53		9.41
Greater than 0.5% and Less than 1.0%		112		19.86
Between 0.5% and –0.5%		262		46.46
Less than –0.5% and Greater than –1.0%		70		12.41
Less than –1.0% and Greater than –1.5%		28		4.96
Less than –1.5% and Greater than –2.0%		12		2.13
Less than –2.0% and Greater than –2.5%		2		0.35
Less than –2.5% and Greater than –3.0%		2		0.35

		564		100.00	%


SUPPLEMENTAL INFORMATION			113

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Emerging Markets Consumer Discretionary ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		5		0.89	%
Greater than 2.0% and Less than 2.5%		6		1.06
Greater than 1.5% and Less than 2.0%		9		1.60
Greater than 1.0% and Less than 1.5%		51		9.04
Greater than 0.5% and Less than 1.0%		126		22.34
Between 0.5% and –0.5%		291		51.60
Less than –0.5% and Greater than –1.0%		52		9.22
Less than –1.0% and Greater than –1.5%		17		3.01
Less than –1.5% and Greater than –2.0%		2		0.35
Less than –2.0% and Greater than –2.5%		5		0.89

		564		100.00	%

iShares MSCI Emerging Markets Energy Capped ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		1		0.18	%
Greater than 2.5% and Less than 3.0%		1		0.18
Greater than 2.0% and Less than 2.5%		2		0.35
Greater than 1.5% and Less than 2.0%		12		2.13
Greater than 1.0% and Less than 1.5%		43		7.61
Greater than 0.5% and Less than 1.0%		102		18.09
Between 0.5% and –0.5%		306		54.25
Less than –0.5% and Greater than –1.0%		60		10.64
Less than –1.0% and Greater than –1.5%		27		4.79
Less than –1.5% and Greater than –2.0%		8		1.42
Less than –2.0% and Greater than –2.5%		1		0.18
Less than –2.5% and Greater than –3.0%		1		0.18

		564		100.00	%


114		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Emerging Markets Growth ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		3		0.53	%
Greater than 3.0% and Less than 3.5%		4		0.71
Greater than 2.5% and Less than 3.0%		23		4.08
Greater than 2.0% and Less than 2.5%		41		7.27
Greater than 1.5% and Less than 2.0%		45		7.98
Greater than 1.0% and Less than 1.5%		82		14.54
Greater than 0.5% and Less than 1.0%		93		16.49
Between 0.5% and –0.5%		210		37.23
Less than –0.5% and Greater than –1.0%		46		8.16
Less than –1.0% and Greater than –1.5%		13		2.30
Less than –1.5% and Greater than –2.0%		3		0.53
Less than –2.0% and Greater than –2.5%		1		0.18

		564		100.00	%

iShares MSCI Emerging Markets Minimum Volatility ETF

Period Covered: January 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.16	%
Greater than 2.5% and Less than 3.0%		1		0.16
Greater than 2.0% and Less than 2.5%		1		0.16
Greater than 1.5% and Less than 2.0%		14		2.24
Greater than 1.0% and Less than 1.5%		34		5.43
Greater than 0.5% and Less than 1.0%		127		20.29
Between 0.5% and –0.5%		354		56.55
Less than –0.5% and Greater than –1.0%		65		10.38
Less than –1.0% and Greater than –1.5%		21		3.35
Less than –1.5% and Greater than –2.0%		6		0.96
Less than –2.0% and Greater than –2.5%		1		0.16
Less than –2.5% and Greater than –3.0%		1		0.16

		626		100.00	%


SUPPLEMENTAL INFORMATION			115

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Emerging Markets Small-Cap ETF

Period Covered: October 1, 2011 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.5%		1		0.15	%
Greater than 5.0% and Less than 5.5%		1		0.15
Greater than 4.5% and Less than 5.0%		2		0.29
Greater than 4.0% and Less than 4.5%		3		0.44
Greater than 3.5% and Less than 4.0%		2		0.29
Greater than 3.0% and Less than 3.5%		4		0.58
Greater than 2.5% and Less than 3.0%		5		0.73
Greater than 2.0% and Less than 2.5%		17		2.47
Greater than 1.5% and Less than 2.0%		40		5.81
Greater than 1.0% and Less than 1.5%		65		9.43
Greater than 0.5% and Less than 1.0%		117		16.97
Between 0.5% and –0.5%		278		40.34
Less than –0.5% and Greater than –1.0%		95		13.78
Less than –1.0% and Greater than –1.5%		33		4.79
Less than –1.5% and Greater than –2.0%		16		2.32
Less than –2.0% and Greater than –2.5%		8		1.16
Less than –2.5% and Greater than –3.0%		1		0.15
Less than –3.0%		1		0.15

		689		100.00	%

iShares MSCI Emerging Markets Value ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0% and Less than 5.5%		6		1.06	%
Greater than 4.5% and Less than 5.0%		9		1.60
Greater than 4.0% and Less than 4.5%		6		1.06
Greater than 3.5% and Less than 4.0%		13		2.30
Greater than 3.0% and Less than 3.5%		16		2.84
Greater than 2.5% and Less than 3.0%		22		3.90
Greater than 2.0% and Less than 2.5%		34		6.03
Greater than 1.5% and Less than 2.0%		74		13.12
Greater than 1.0% and Less than 1.5%		109		19.33
Greater than 0.5% and Less than 1.0%		124		21.99
Between 0.5% and –0.5%		130		23.05
Less than –0.5% and Greater than –1.0%		17		3.01
Less than –1.0% and Greater than –1.5%		4		0.71

		564		100.00	%


116		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares MSCI BRIC ETF and iShares MSCI Emerging Markets Minimum Volatility ETF (each a “Fund”, collectively the “Funds”) for marketing to EU investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to both (a) the staff of BFA; and (b) staff who are senior management or who have the ability to materially affect the risk profile of the Funds.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to each Fund is included in the aggregate figures disclosed.

Bonus pools are reviewed by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Operational Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions.


SUPPLEMENTAL INFORMATION			117

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI BRIC ETF in respect of BFA’s financial year ending December 31, 2013 was USD 77,184. This figure is comprised of fixed remuneration of USD 30,349 and variable remuneration of USD 46,835. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI BRIC ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 12,400.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Emerging Markets Minimum Volatility ETF in respect of BFA’s financial year ending December 31, 2013 was USD 376,814. This figure is comprised of fixed remuneration of USD 148,162 and variable remuneration of USD 228,652. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Emerging Markets Minimum Volatility ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 60,538.


118		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information

iSHARES^®, INC.

Interested Directors

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc.

Mark Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.


DIRECTOR AND OFFICER INFORMATION			119

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert H. Silver (59)	Director (since 2007); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Independent Chairman of iShares, Trust, iShares MSCI Russia Capped ETF, Inc. and iShares U.S. ETF Trust (since 2012).

Cecilia H. Herbert (65)	Director (since 2005); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Forward Funds (34 portfolios) (since 2009).

Charles A. Hurty (70)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).

John E. Kerrigan (59)	Director (since 2005); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).


120		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
John E. Martinez (53)	Director (since 2003); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).

George G.C. Parker (75)	Director (since 2002).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).

Madhav V. Rajan (50)	Director (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).


DIRECTOR AND OFFICER INFORMATION			121

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (54)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (45)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2007).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (51)	Executive Vice President (since 2007).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2007).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


122		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-810-0814

LOGO

AUGUST 31, 2014


2014 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Emerging Markets ETF | EEM | NYSE Arca

Table of Contents


Management’s Discussion of Fund Performance			5
About Fund Performance			8
Shareholder Expenses			8
Consolidated Schedule of Investments			9
Consolidated Financial Statements			24
Financial Highlights			27
Notes to Consolidated Financial Statements			28
Report of Independent Registered Public Accounting Firm			40
Tax Information			41
Board Review and Approval of Investment Advisory Contract			42
Supplemental Information			46
Director and Officer Information			49

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS ETF

EMERGING MARKETS OVERVIEW


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.34%		20.48%		19.98%		19.34%		20.48%		19.98%
5 Years		6.84%		6.90%		7.90%		39.21%		39.61%		46.26%
10 Years		11.55%		11.57%		12.16%		198.39%		198.90%		215.01%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,143.30	$	3.67	$	1,000.00	$	1,021.80	$	3.47		0.68%


6		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

The iShares MSCI Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities, as represented by the MSCI Emerging Markets Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 19.34%, net of fees, while the total return for the Index was 19.98%.

As represented by the Index, emerging markets stocks returned approximately 20% for the reporting period. Of the 25 countries represented in the Index, 19 generated positive returns for the reporting period, including the three largest countries: China, South Korea, and Taiwan, which together comprised more than 45% of the Index on average during the reporting period. The markets that provided the strongest results within the Index included India and Brazil, which produced returns of 52% and 33%, respectively, for the reporting period.

Among the countries which declined within the Index, Hungary was the weakest performer, falling by 17% during the reporting period. Russia and Chile were also notable decliners within the Index.

From a sector perspective, information technology stocks (the Index’s second-largest sector weighting as of August 31, 2014) and health care stocks both returned more than 30% for the reporting period. The utilities sector also generated strong returns, gaining more than 25%. Declining demand and lower prices for commodities weighed on the energy and materials sectors, which produced the lowest returns in the Index.

Currency fluctuations relative to the U.S. dollar had a modestly positive impact on Index performance for the reporting period. In local currency terms, the Index returned 17.84% for the reporting period. The U.S. dollar was largely unchanged against the Chinese yuan and Taiwan dollar, but it declined by 6% versus the Brazilian real and 8.5% against the South Korean won for the reporting period. A weaker U.S. dollar increases international equity returns for U.S. investors.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	27.53	%
Information Technology	16.63
Energy	10.58
Consumer Discretionary	9.26
Materials	8.48
Consumer Staples	8.20
Telecommunication Services	7.53
Industrials	6.40
Utilities	3.51
Health Care	1.88

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 8/31/14


Country		Percentage of Total Investments*


China	19.06	%
South Korea	15.13
Taiwan	11.89
Brazil	11.80
South Africa	7.51
India	6.66
Mexico	5.25
Russia	4.55
Malaysia	3.79
Indonesia	2.54

TOTAL	88.18	%

Excludes money market funds.


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE			7

About Fund Performance

Shareholder Expenses


8		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 93.18%

BRAZIL — 6.70%
ALL – America Latina Logistica SA		4,714,900	$	17,384,159
AMBEV SA		49,028,715		357,162,099
B2W Companhia Global do Varejo^a		955,000		16,175,951
Banco Bradesco SA		6,779,440		121,254,581
Banco do Brasil SA		8,868,574		138,683,562
Banco Santander (Brasil) SA Units		10,117,880		69,907,901
BB Seguridade Participacoes SA		7,227,400		115,442,013
BM&F Bovespa SA		19,560,000		118,013,005
BR Malls Participacoes SA		4,493,700		46,733,436
BR Properties SA		1,982,700		13,202,936
BRF SA		6,923,985		185,357,512
CCR SA		9,503,100		86,046,259
Centrais Eletricas Brasileiras SA		2,823,837		10,285,478
CETIP SA – Mercados Organizados		2,193,734		32,010,643
Cielo SA		7,308,724		137,057,969
Companhia de Saneamento Basico do Estado de Sao Paulo		3,622,524		34,629,746
Companhia de Saneamento de Minas Gerais SA		448,700		8,021,273
Companhia Siderurgica Nacional SA		7,562,428		33,189,445
Cosan SA Industria e Comercio		1,328,700		27,612,590
CPFL Energia SA		2,403,136		24,261,734
Cyrela Brazil Realty SA Empreendimentos e Participacoes		2,945,900		18,682,184
Duratex SA		3,573,655		16,083,085
EcoRodovias Infraestrutura e Logistica SA		2,022,200		12,923,716
EDP Energias do Brasil SA		2,852,900		14,407,620
Embraer SA		6,369,200		62,082,301
Estacio Participacoes SA		2,883,600		38,313,972
Fibria Celulose SA^a		2,763,461		28,751,703
Hypermarcas SA^a		3,463,500		30,122,102


Security	Shares		Value

JBS SA		7,169,465	$	32,426,085
Klabin SA		4,843,100		24,609,974
Kroton Educacional SA		3,524,395		105,611,354
Localiza Rent A Car SA		1,369,089		24,383,007
Lojas Americanas SA		1,320,375		7,671,281
Lojas Renner SA		1,320,700		45,224,479
M Dias Branco SA		240,300		10,846,819
Multiplan Empreendimentos Imobiliarios SA		790,900		20,398,578
Natura Cosmeticos SA		1,857,800		34,049,911
Odontoprev SA		3,348,500		14,605,868
Petroleo Brasileiro SA		30,936,074		306,104,748
Porto Seguro SA		1,218,800		18,073,243
Qualicorp SA^a		2,032,600		25,435,320
Raia Drogasil SA		1,986,500		19,354,070
Souza Cruz SA		4,060,200		38,033,471
Sul America SA Units		1,561,065		10,792,910
TIM Participacoes SA		9,084,276		50,952,007
Totvs SA		1,275,400		23,290,136
Tractebel Energia SA		1,699,000		28,481,817
Transmissora Alianca de Energia Eletrica SA		582,500		6,076,088
Ultrapar Participacoes SA		3,533,000		91,090,152
Vale SA		13,614,748		177,185,521
Via Varejo SA^a		682,700		7,627,762
WEG SA		2,902,010		36,301,875

				2,972,425,451
CHILE — 1.29%
AES Gener SA		26,459,574		13,526,864
Aguas Andinas SA Series A		25,681,778		16,105,610
Banco de Chile		250,839,136		30,610,518
Banco de Credito e Inversiones		354,265		19,307,862
Banco Santander (Chile) SA		724,533,055		42,928,032
CAP SA		792,020		9,409,691
Cencosud SA		12,334,771		37,010,570
Colbun SA		72,389,581		18,945,653
Compania Cervecerias Unidas SA		1,352,797		14,530,101
CorpBanca SA		1,559,548,234		19,163,404
Empresa Nacional de Electricidad SA		35,764,185		54,640,466
Empresa Nacional de Telecomunicaciones SA		1,264,698		14,508,101


CONSOLIDATED SCHEDULE OF INVESTMENTS			9

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

Empresas CMPC SA		13,146,940	$	32,725,077
Empresas Copec SA		4,682,573		58,858,375
Enersis SA		215,440,405		72,522,617
LATAM Airlines Group SA^a		3,280,936		40,588,962
S.A.C.I. Falabella SA		9,480,444		71,395,085
Vina Concha y Toro SA		3,330,034		6,494,524

				573,271,512
CHINA — 18.98%
AAC Technologies Holdings Inc.^b		7,291,500		47,558,476
Agile Property Holdings Ltd.		15,620,000		12,253,905
Agricultural Bank of China Ltd. Class H		225,030,000		103,947,330
Air China Ltd. Class H		19,382,000		12,004,103
Alibaba Pictures Group Ltd.^a,b		45,210,000		9,391,831
Aluminum Corp. of China Ltd. Class H^a,b		39,130,000		16,610,995
Anhui Conch Cement Co. Ltd. Class H^b		13,129,500		47,434,695
Anta Sports Products Ltd.^b		10,001,402		19,202,320
AviChina Industry & Technology Co. Ltd. Class H		20,580,000		12,268,098
Bank of China Ltd. Class H		813,508,000		377,880,273
Bank of Communications Co. Ltd. Class H		90,576,600		66,148,856
BBMG Corp. Class H		11,282,500		8,414,398
Beijing Capital International Airport Co. Ltd. Class H		24,294,000		18,995,973
Beijing Enterprises Holdings Ltd.		5,901,500		50,866,138
Beijing Enterprises Water Group Ltd.		37,318,000		25,423,900
Belle International Holdings Ltd.^b		47,484,000		60,717,075
Biostime International Holdings Ltd.^b		1,592,500		5,948,643
Brilliance China Automotive Holdings Ltd.		30,336,000		56,208,584
BYD Co. Ltd. Class H^b		6,389,000		45,381,631
China Agri-Industries Holdings Ltd.^b		29,346,600		12,003,474


Security	Shares		Value

China BlueChemical Ltd. Class H		13,522,000	$	6,664,908
China Cinda Asset Management Co. Ltd.^a,b		42,437,000		21,738,275
China CITIC Bank Corp. Ltd. Class H		85,298,800		53,819,750
China Coal Energy Co. Class H^b		41,247,000		25,120,267
China Communications Construction Co. Ltd. Class H		47,362,000		34,527,758
China Communications Services Corp. Ltd. Class H		19,650,000		9,482,526
China Construction Bank Corp. Class H		750,622,760		557,871,409
China COSCO Holdings Co. Ltd. Class H^a,b		27,692,000		11,934,128
China Everbright Bank Co. Ltd.		12,208,000		5,702,207
China Everbright International Ltd.^b		25,701,000		35,217,979
China Everbright Ltd.^b		12,670,000		24,031,664
China Gas Holdings Ltd.		23,734,000		42,261,014
China Huishan Dairy Holdings Co. Ltd.^a,b		38,329,000		8,902,047
China International Marine Containers (Group) Co. Ltd. Class H		2,694,400		5,798,932
China Life Insurance Co. Ltd. Class H		77,443,000		222,332,052
China Longyuan Power Group Corp. Ltd. Class H		27,857,000		30,120,922
China Mengniu Dairy Co. Ltd.		14,932,000		69,263,872
China Merchants Bank Co. Ltd. Class H		47,271,467		90,393,494
China Merchants Holdings (International) Co. Ltd.^b		12,506,000		41,470,707
China Minsheng Banking Corp. Ltd. Class H^b		64,289,040		60,389,052
China Mobile Ltd.		62,642,000		779,170,571
China National Building Material Co. Ltd. Class H		28,060,000		25,778,495
China Oilfield Services Ltd. Class H		18,034,000		53,402,876


10		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

China Overseas Land & Investment Ltd.^b		42,430,960	$	119,351,874
China Pacific Insurance (Group) Co. Ltd. Class H		27,908,600		104,790,263
China Petroleum & Chemical Corp. Class H		266,136,800		269,909,001
China Railway Construction Corp. Ltd. Class H		20,229,500		19,367,740
China Railway Group Ltd. Class H		39,168,000		20,265,889
China Resources Cement Holdings Ltd.^b		23,330,000		16,044,709
China Resources Enterprise Ltd.^b		13,494,000		36,302,510
China Resources Gas Group Ltd.		9,426,000		27,426,089
China Resources Land Ltd.^b		21,468,000		49,139,993
China Resources Power Holdings Co. Ltd.		21,072,999		63,761,582
China Shenhua Energy Co. Ltd. Class H		34,397,000		99,194,590
China Shipping Container Lines Co. Ltd. Class H^a,b		42,190,000		12,030,722
China State Construction International Holdings Ltd.		17,930,000		28,918,795
China Taiping Insurance Holdings Co. Ltd.^a		8,015,600		19,505,973
China Telecom Corp. Ltd. Class H		141,792,000		87,634,908
China Unicom (Hong Kong) Ltd.		49,152,000		87,647,418
China Vanke Co. Ltd.^a,b		11,502,431		21,549,944
Chongqing Changan Automobile Co. Ltd.		6,936,556		14,320,355
Chongqing Rural Commercial Bank Co. Ltd. Class H		25,853,000		12,842,855
CITIC 21CN Co. Ltd.^a		21,796,000		17,155,229
CITIC Pacific Ltd.^b		22,154,000		43,106,562
CITIC Securities Co. Ltd. Class H^b		11,380,500		27,018,987
CNOOC Ltd.		184,540,000		370,977,749
COSCO Pacific Ltd.		16,088,000		22,543,522


Security	Shares		Value

Country Garden Holdings Co. Ltd.^b		47,600,381	$	21,128,018
CSPC Pharmaceutical Group Ltd.		15,984,000		13,364,428
CSR Corp Ltd. Class H		19,715,000		17,781,314
Datang International Power Generation Co. Ltd. Class H		29,162,000		16,179,893
Dongfeng Motor Group Co. Ltd. Class H		30,784,000		57,038,669
ENN Energy Holdings Ltd.^b		8,280,000		58,493,061
Evergrande Real Estate Group Ltd.^b		68,761,388		28,746,140
Far East Horizon Ltd.		13,728,000		11,070,753
Fosun International Ltd.^b		16,277,500		19,994,684
Franshion Properties (China) Ltd.^b		27,548,000		7,464,475
GCL-Poly Energy Holdings Ltd.^a,b		103,280,000		37,180,080
Geely Automobile Holdings Ltd.^b		48,535,000		18,599,505
Golden Eagle Retail Group Ltd.^b		6,710,000		8,250,976
GOME Electrical Appliances Holdings Ltd.^b		105,372,200		18,762,687
Great Wall Motor Co. Ltd. Class H		10,815,500		45,912,653
Guangdong Investment Ltd.		30,666,110		37,075,599
Guangzhou Automobile Group Co. Ltd. Class H		24,018,742		24,979,008
Guangzhou R&F Properties Co. Ltd. Class H		10,320,400		12,437,506
Haier Electronics Group Co. Ltd.^b		10,104,000		29,203,254
Haitian International Holdings Ltd.^b		3,314,000		8,637,613
Haitong Securities Co. Ltd. Class H		11,796,800		18,844,072
Hanergy Solar Group Ltd.^a,b		120,572,000		19,757,868
Hengan International Group Co. Ltd.		7,793,500		83,112,298
Huaneng Power International Inc. Class H		35,304,000		42,455,085
Industrial and Commercial Bank of China Ltd. Class H		766,193,085		508,149,192


CONSOLIDATED SCHEDULE OF INVESTMENTS			11

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

Inner Mongolia Yitai Coal Co. Ltd. Class B		10,359,754	$	17,497,624
Intime Retail Group Co. Ltd.^b		10,775,500		9,802,039
Jiangsu Expressway Co. Ltd. Class H		10,996,000		12,528,103
Jiangxi Copper Co. Ltd. Class H		15,705,000		27,761,850
Kingboard Chemical Holdings Co. Ltd.		6,464,100		13,428,387
Kingsoft Corp. Ltd.^b		6,220,000		17,816,945
Kunlun Energy Co. Ltd.^b		33,880,000		55,955,562
Lee & Man Paper Manufacturing Ltd.^b		15,114,000		8,892,710
Lenovo Group Ltd.^b		66,620,000		101,776,198
Longfor Properties Co. Ltd.		16,467,500		21,035,496
New China Life Insurance Co. Ltd. Class H		7,548,100		26,929,152
New World China Land Ltd.		15,310,000		9,383,367
Nine Dragons Paper (Holdings) Ltd.^b		17,162,000		13,397,173
People’s Insurance Co. Group of China Ltd. Class H		52,687,000		22,026,139
PetroChina Co. Ltd. Class H		219,010,000		310,846,887
PICC Property and Casualty Co. Ltd. Class H		34,231,200		56,800,608
Ping An Insurance (Group) Co. of China Ltd. Class H		20,484,000		166,776,179
Poly Property Group Co. Ltd.^b		22,657,458		9,852,149
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		17,724,000		17,952,349
Shanghai Electric Group Co. Ltd. Class H		22,670,000		9,945,356
Shanghai Fosun Pharmaceutical (Group) Co. Ltd.		3,046,500		9,905,847
Shanghai Industrial Holdings Ltd.		7,003,000		23,357,941
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		7,018,900		14,399,787


Security	Shares		Value

Shenzhou International Group Holdings Ltd.^b		4,625,000	$	14,411,818
Shimao Property Holdings Ltd.		15,558,500		34,248,113
Shui On Land Ltd.		59,305,600		15,533,940
Sihuan Pharmaceutical Holdings Group Ltd.		49,172,000		32,928,741
Sino Biopharmaceutical Ltd.		31,732,000		29,233,819
Sino-Ocean Land Holdings Ltd.^b		42,704,000		24,134,181
Sinopec Engineering Group Co. Ltd.		8,396,500		9,577,242
Sinopec Shanghai Petrochemical Co. Ltd. Class H		45,481,000		15,199,163
Sinopharm Group Co. Ltd. Class H		10,033,600		35,019,823
SOHO China Ltd.^b		28,523,000		23,333,203
Sun Art Retail Group Ltd.^b		23,811,500		28,419,627
Tencent Holdings Ltd.		53,261,900		869,354,832
Tingyi (Cayman Islands) Holding Corp.^b		21,244,000		59,619,104
Tsingtao Brewery Co. Ltd. Class H		3,954,000		30,024,309
Uni-President China Holdings Ltd.^b		10,492,800		9,477,184
Want Want China Holdings Ltd.^b		64,250,000		79,668,458
Weichai Power Co. Ltd. Class H		4,587,200		18,585,199
Yanzhou Coal Mining Co. Ltd. Class H^b		19,678,800		16,656,830
Yingde Gases Group Co. Ltd.^b		10,379,000		11,101,967
Yuexiu Property Co. Ltd.^b		55,510,000		11,889,654
Zhejiang Expressway Co. Ltd. Class H		23,190,000		23,069,863
Zhongsheng Group Holdings Ltd.^b		6,555,500		7,265,891
Zhuzhou CSR Times Electric Co. Ltd. Class H		5,463,500		18,928,018
Zijin Mining Group Co. Ltd. Class H		68,096,000		17,748,549
Zoomlion Heavy Industry Science and Technology Co. Ltd. Class H^b		11,758,240		7,327,897


12		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

ZTE Corp. Class H^b		6,806,000	$	15,332,963

				8,415,639,929
COLOMBIA — 0.71%
Almacenes Exito SA		2,076,043		35,342,889
Bancolombia SA SP ADR		125,588		7,947,209
Cementos Argos SA		4,262,073		25,104,342
Cemex Latam Holdings SA^a		1,296,716		12,842,453
Corporacion Financiera Colombiana SA NVS		917,095		19,551,818
Ecopetrol SA		53,064,979		91,970,630
Grupo Argos SA		2,811,888		34,854,542
Grupo Inversiones Suramericana SA		2,480,410		57,017,947
Interconexion Electrica SA ESP		3,454,516		17,466,604
Isagen SA ESP		8,464,719		12,663,214

				314,761,648
CZECH REPUBLIC — 0.24%
CEZ AS		1,808,547		52,575,788
Komercni Banka AS		183,908		42,770,723
O2 Czech Republic AS		655,264		9,205,723

				104,552,234
EGYPT — 0.15%
Global Telecom Holding SAE GDR^a		19,076,478		68,446,403

				68,446,403
GREECE — 0.68%
Alpha Bank AE^a		39,479,599		34,633,690
Eurobank Ergasias SA^a		82,540,477		35,117,315
Folli Follie Group^a		337,602		14,007,718
Hellenic Telecommunications Organization SA^a		2,498,563		35,807,253
Jumbo SA^a		1,072,839		15,827,211
National Bank of Greece SA^a		16,274,025		55,948,352
OPAP SA		2,254,483		35,902,532
Piraeus Bank SA^a		21,849,424		43,170,101
Public Power Corp. SA^a		1,204,930		17,537,832
Titan Cement Co. SA		448,750		11,999,200

				299,951,204
HUNGARY — 0.19%
MOL Hungarian Oil and Gas PLC		496,924		24,484,222
OTP Bank PLC		2,355,090		40,711,977


Security	Shares		Value

Richter Gedeon Nyrt		1,151,156	$	18,525,086

				83,721,285
INDIA — 6.63%
ACC Ltd.		465,589		11,452,124
Adani Enterprises Ltd.		1,386,677		10,943,962
Adani Ports & Special Economic Zone Ltd.		4,352,384		20,287,934
Aditya Birla Nuvo Ltd.		321,522		7,703,175
Ambuja Cements Ltd.		7,057,346		23,993,581
Apollo Hospitals Enterprise Ltd.		754,123		14,580,374
Asian Paints Ltd.		3,061,522		31,493,112
Aurobindo Pharma Ltd.		1,233,805		16,623,225
Bajaj Auto Ltd.		844,755		31,444,432
Bharat Heavy Electricals Ltd.		6,028,483		23,933,117
Bharat Petroleum Corp. Ltd.		1,880,787		21,519,947
Bharti Airtel Ltd.		6,295,572		38,366,884
Cairn India Ltd.		4,747,488		25,525,181
Cipla Ltd.		3,698,509		31,341,024
Coal India Ltd.		5,304,742		31,130,828
Dabur India Ltd.		3,774,842		14,469,813
Divi’s Laboratories Ltd.		447,291		11,534,255
DLF Ltd.		4,421,162		12,918,128
Dr. Reddy’s Laboratories Ltd.		1,145,446		55,647,005
GAIL (India) Ltd.		3,640,647		26,602,882
GlaxoSmithKline Consumer Healthcare Ltd.		62,077		5,455,369
Godrej Consumer Products Ltd.		1,202,367		19,536,482
HCL Technologies Ltd.		2,533,859		68,096,417
HDFC Bank Ltd.		4,486,807		62,373,864
Hero Motocorp Ltd.		568,346		24,397,292
Hindalco Industries Ltd.		11,344,858		31,802,247
Hindustan Unilever Ltd.		7,298,082		89,295,665
Housing Development Finance Corp. Ltd.		15,642,460		276,991,155
ICICI Bank Ltd.		2,360,455		60,559,597
Idea Cellular Ltd.		8,846,117		23,602,280
Infosys Ltd.		4,778,679		283,413,151
ITC Ltd.		23,183,272		135,745,164
Jaiprakash Associates Ltd.		10,333,808		7,918,953
Jindal Steel & Power Ltd.		3,734,898		14,341,319


CONSOLIDATED SCHEDULE OF INVESTMENTS			13

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

JSW Steel Ltd.		914,154	$	18,735,035
Larsen & Toubro Ltd.		3,396,372		85,441,032
LIC Housing Finance Ltd.		3,395,004		16,933,058
Mahindra & Mahindra Financial Services Ltd.		2,513,945		11,571,273
Mahindra & Mahindra Ltd.		3,364,106		78,015,326
Nestle India Ltd.		159,654		15,861,604
NTPC Ltd.		14,790,304		33,490,240
Oil & Natural Gas Corp. Ltd.		8,097,881		58,051,718
Oil India Ltd.		807,592		8,190,378
Piramal Enterprises Ltd.		448,420		5,092,759
Power Finance Corp. Ltd.		2,594,309		10,692,760
Power Grid Corp. of India Ltd.		11,140,550		23,720,485
Ranbaxy Laboratories Ltd.^a		1,380,729		14,578,660
Reliance Capital Ltd.		1,030,587		8,981,121
Reliance Communications Ltd.		6,655,923		12,723,913
Reliance Industries Ltd.		13,404,957		220,625,091
Reliance Infrastructure Ltd.		938,789		10,818,971
Reliance Power Ltd.^a		5,295,592		6,506,038
Rural Electrification Corp. Ltd.		3,073,246		13,591,061
Sesa Sterlite Ltd.		11,585,268		52,914,585
Shriram Transport Finance Co. Ltd.		1,424,466		21,224,966
Siemens Ltd.		633,964		8,298,576
State Bank of India		1,505,813		61,063,844
Sun Pharmaceuticals Industries Ltd.		7,177,656		101,164,968
Tata Consultancy Services Ltd.		4,923,026		204,640,650
Tata Motors Ltd.		8,152,201		70,539,109
Tata Power Co. Ltd.		10,922,633		15,588,332
Tata Steel Ltd.		3,107,218		26,276,679
Tech Mahindra Ltd.		766,192		29,837,042
Ultratech Cement Ltd.		546,226		22,954,905
United Breweries Ltd.		693,851		8,087,115
United Spirits Ltd.		587,276		23,208,919
Wipro Ltd.		6,402,766		59,643,432
Yes Bank Ltd.		1,718,905		16,204,674

				2,940,308,257
INDONESIA — 2.53%
PT Adaro Energy Tbk		134,488,400		15,118,807
PT Astra Agro Lestari Tbk		4,458,000		9,718,230


Security	Shares		Value

PT Astra International Tbk		214,256,500	$	138,746,996
PT Bank Central Asia Tbk		133,646,200		127,962,166
PT Bank Danamon Indonesia Tbk		40,519,316		12,989,736
PT Bank Mandiri (Persero) Tbk		101,807,000		90,296,869
PT Bank Negara Indonesia (Persero) Tbk		80,400,776		36,772,315
PT Bank Rakyat Indonesia (Persero) Tbk		120,928,922		114,235,058
PT Bukit Asam (Persero) Tbk		6,722,100		7,671,728
PT Bumi Serpong Damai Tbk		68,856,100		9,447,663
PT Charoen Pokphand Indonesia Tbk		84,286,045		27,705,052
PT Global Mediacom Tbk		59,561,400		9,852,645
PT Gudang Garam Tbk		5,689,100		26,262,996
PT Indo Tambangraya Megah Tbk		3,878,100		9,340,925
PT Indocement Tunggal Prakarsa Tbk		13,793,000		28,594,165
PT Indofood CBP Sukses Makmur Tbk		7,604,900		6,826,369
PT Indofood Sukses Makmur Tbk		51,135,000		30,053,697
PT Jasa Marga (Persero) Tbk		18,690,600		9,906,537
PT Kalbe Farma Tbk		231,877,715		32,905,921
PT Lippo Karawaci Tbk		200,082,400		18,302,045
PT Matahari Department Store Tbk		17,880,100		24,876,993
PT Media Nusantara Citra Tbk		38,071,700		9,129,397
PT Perusahaan Gas Negara (Persero) Tbk		123,897,500		61,432,400
PT Semen Gresik (Persero) Tbk		29,563,400		41,005,870
PT Surya Citra Media Tbk		25,752,900		9,048,465
PT Telekomunikasi Indonesia (Persero) Tbk		503,505,400		114,711,852
PT Tower Bersama Infrastructure Tbk		10,931,600		7,359,380
PT Unilever Indonesia Tbk		15,111,700		40,080,401
PT United Tractors Tbk		21,105,953		39,965,536


14		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

PT XL Axiata Tbk		22,137,300	$	11,260,264

				1,121,580,478
MALAYSIA — 3.78%
AirAsia Bhd		12,885,700		9,852,328
Alliance Financial Group Bhd		9,434,000		14,546,079
AMMB Holdings Bhd		23,181,175		49,127,617
Astro Malaysia Holdings Bhd		8,595,700		8,944,764
Axiata Group Bhd		26,452,100		58,157,695
Berjaya Sports Toto Bhd^b		11,799,763		14,075,859
British American Tobacco (Malaysia) Bhd		1,541,500		35,211,929
Bumi Armada Bhd^b		10,012,400		9,370,742
CIMB Group Holdings Bhd		49,302,800		115,436,124
Dialog Group Bhd		23,234,312		12,752,335
DiGi.Com Bhd		32,174,900		58,490,538
Felda Global Ventures Holdings Bhd		11,885,500		14,404,381
Gamuda Bhd		17,829,000		27,320,454
Genting Bhd		22,774,900		69,220,667
Genting Malaysia Bhd		36,649,300		52,439,195
Genting Plantations Bhd		4,210,400		13,438,015
Hong Leong Bank Bhd		4,435,500		20,263,706
Hong Leong Financial Group Bhd		908,000		4,908,731
IHH Healthcare Bhd		22,664,900		35,090,327
IJM Corp. Bhd		15,042,920		31,021,250
IOI Corp. Bhd		34,059,220		51,650,721
IOI Properties Group Bhd^a		20,015,959		15,621,592
Kuala Lumpur Kepong Bhd		5,937,900		41,520,088
Lafarge Malaysia Bhd		3,931,700		12,723,141
Malayan Banking Bhd		44,929,900		143,969,540
Malaysia Airports Holdings Bhd		5,597,300		13,673,607
Maxis Bhd		19,147,300		39,788,964
MISC Bhd		10,797,900		23,569,020
MMC Corp. Bhd^b		13,292,600		10,416,473
Petronas Chemicals Group Bhd		25,686,000		51,339,404
Petronas Dagangan Bhd^b		1,766,500		11,264,800
Petronas Gas Bhd		6,292,400		45,516,091
PPB Group Bhd		5,416,700		25,399,374
Public Bank Bhd^b		26,940,130		164,786,074
RHB Capital Bhd		4,425,200		12,874,075


Security	Shares		Value

Sapurakencana Petroleum Bhd		36,545,900	$	48,928,838
Sime Darby Bhd		29,437,073		88,348,576
Telekom Malaysia Bhd		11,481,000		23,165,977
Tenaga Nasional Bhd		30,783,350		120,906,686
UEM Sunrise Bhd		11,738,900		7,150,599
UMW Holdings Bhd		7,460,600		29,255,398
YTL Corp. Bhd		46,249,162		23,770,191
YTL Power International Bhd^a		32,782,043		15,496,588

				1,675,208,553
MEXICO — 5.22%
Alfa SAB de CV Series A		31,297,900		100,699,985
America Movil SAB de CV Series L		356,030,900		435,389,399
Arca Continental SAB de CV		4,497,836		33,064,280
Cemex SAB de CV CPO^a		124,508,560		165,401,987
Coca-Cola FEMSA SAB de CV Series L		4,332,193		47,229,866
Compartamos SAB de CV^b		11,590,900		24,749,947
Controladora Comercial Mexicana SAB de CV BC Units		3,933,200		15,148,633
El Puerto de Liverpool SAB de CV Series C1^b		2,197,700		25,060,385
Fibra Uno Administracion SAB de CV		22,017,600		79,058,263
Fomento Economico Mexicano SAB de CV BD Units		20,804,800		201,961,934
Genomma Lab Internacional SAB de CV Series B^a,b		7,563,400		20,176,008
Gruma SAB de CV Series B^a		1,678,200		19,145,508
Grupo Aeroportuario del Pacifico SAB de CV Series B		2,423,000		16,820,444
Grupo Aeroportuario del Sureste SAB de CV Series B		2,218,600		28,439,413
Grupo Bimbo SAB de CV Series A		15,275,500		48,085,318
Grupo Carso SAB de CV Series A1		4,739,741		28,962,969


CONSOLIDATED SCHEDULE OF INVESTMENTS			15

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

Grupo Comercial Chedraui SAB de CV^b		1,327,400	$	4,611,968
Grupo Financiero Banorte SAB de CV Series O		26,062,256		183,475,253
Grupo Financiero Inbursa SAB de CV Series O		23,482,800		71,352,655
Grupo Financiero Santander Mexico SAB de CV Series B		19,440,500		58,222,629
Grupo Lala SAB de CV		3,804,500		9,875,319
Grupo Mexico SAB de CV Series B		40,429,988		146,871,969
Grupo Televisa SAB de CV CPO		27,438,800		204,162,047
Industrias Penoles SAB de CV		1,541,868		39,125,984
Kimberly-Clark de Mexico SAB de CV Series A		18,163,500		48,466,561
Mexichem SAB de CV		10,542,192		45,464,740
Minera Frisco SAB de CV Series A1^a,b		4,681,241		9,412,246
OHL Mexico SAB de CV^a,b		5,980,400		17,563,180
Promotora y Operadora Infraestructura SAB de CV^a		2,478,000		34,738,052
Wal-Mart de Mexico SAB de CV Series V		56,324,500		153,351,857

				2,316,088,799
PERU — 0.45%
Compania de Minas Buenaventura SA SP ADR		2,053,058		29,892,524
Credicorp Ltd.		729,183		113,074,408
Southern Copper Corp.		1,709,336		56,083,314

				199,050,246
PHILIPPINES — 1.12%
Aboitiz Equity Ventures Inc.		20,928,790		26,280,992
Aboitiz Power Corp.		8,364,964		7,194,636
Alliance Global Group Inc.		21,184,080		11,952,486
Ayala Corp.		2,502,906		40,212,974
Ayala Land Inc.		66,961,200		50,681,642
Bank of the Philippine Islands		12,142,132		26,456,480
BDO Unibank Inc.		13,785,106		28,613,580
DMCI Holdings Inc.		4,013,000		7,363,303


Security	Shares		Value

Energy Development Corp.		59,867,700	$	9,982,527
Globe Telecom Inc.		540,945		22,332,592
International Container Terminal Services Inc.		8,264,580		21,400,713
JG Summit Holdings Inc.		18,746,324		22,121,522
Jollibee Foods Corp.		6,276,029		25,910,211
Megaworld Corp.		60,508,000		6,064,678
Metro Pacific Investments Corp.		58,778,300		6,942,850
Metropolitan Bank & Trust Co.		3,053,008		6,018,487
Philippine Long Distance Telephone Co.		965,058		76,363,534
SM Investments Corp.		2,000,795		35,426,921
SM Prime Holdings Inc.		78,632,125		29,180,454
Universal Robina Corp.		9,115,310		33,973,346

				494,473,928
POLAND — 1.57%
Alior Bank SA^a,b		436,994		10,415,911
Bank Handlowy w Warszawie SA		371,157		13,291,468
Bank Millennium SA		4,776,000		11,994,708
Bank Pekao SA		1,425,533		80,297,275
Bank Zachodni WBK SA		310,975		36,034,916
Cyfrowy Polsat SA		2,262,251		18,105,932
ENEA SA		1,460,631		6,852,382
Energa SA		1,108,446		7,228,204
Eurocash SA^b		770,972		8,318,931
Getin Noble Bank SA^a		5,956,056		4,843,306
Grupa Azoty SA		246,446		5,761,596
Grupa Lotos SA^a		718,226		6,770,398
Jastrzebska Spolka Weglowa SA^a,b		446,172		4,671,944
KGHM Polska Miedz SA		1,448,575		59,712,632
LPP SA		6,307		16,766,854
mBank SA^b		165,991		24,062,686
Orange Polska SA		7,395,100		24,840,375
Polska Grupa Energetyczna SA		7,947,457		54,211,781
Polski Koncern Naftowy Orlen SA		3,385,793		41,753,896
Polskie Gornictwo Naftowe i Gazownictwo SA		19,249,068		29,379,158
Powszechna Kasa Oszczednosci Bank Polski SA		9,409,058		112,560,861


16		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

Powszechny Zaklad Ubezpieczen SA		609,262	$	89,368,971
Synthos SA		6,472,617		9,312,099
Tauron Polska Energia SA		11,965,526		18,674,207

				695,230,491
QATAR — 0.55%
Barwa Real Estate Co.		1,705,955		18,318,917
Commercial Bank of Qatar QSC (The)		619,932		11,594,356
Doha Bank QSC		435,272		7,291,989
Industries Qatar QSC		704,667		37,447,288
Masraf Al Rayan QSC		3,684,569		52,619,353
Ooredoo QSC		635,756		19,956,858
Qatar Electricity & Water Co. QSC		281,988		13,242,873
Qatar Islamic Bank SAQ		435,362		14,228,298
Qatar National Bank SAQ		835,514		46,351,156
Vodafone Qatar QSC		3,875,307		20,583,444

				241,634,532
RUSSIA — 4.29%
Alrosa AO		12,951,100		15,178,155
Gazprom OAO		122,292,017		435,766,333
LUKOIL OAO		5,332,613		296,852,516
Magnit OJSC SP GDR^c		2,740,340		159,487,788
MegaFon OAO SP GDR^c		922,853		26,116,740
MMC Norilsk Nickel OJSC		570,086		112,182,836
Mobile TeleSystems OJSC SP ADR		5,404,707		99,716,844
Moscow Exchange MICEX-RTS OJSC		10,185,950		17,097,528
NovaTek OAO SP GDR^c		959,331		96,508,698
Rosneft Oil Co. OJSC		12,050,787		74,341,628
Rostelecom OJSC		10,356,280		27,546,572
RusHydro OJSC		1,242,867,100		23,050,093
Sberbank of Russia		108,558,521		213,623,958
Severstal OAO		2,184,703		21,027,290
Sistema JSFC SP GDR^c		1,475,529		33,568,285
Surgutneftegas OJSC		73,914,910		51,811,728
Tatneft OAO Class S		15,298,100		94,877,565
Uralkali OJSC		13,667,315		50,477,141
VTB Bank OJSC		51,186,902,000		52,730,096

				1,901,961,794
SOUTH AFRICA — 7.48%
African Bank Investments Ltd.^b,d		14,665,413		13,789


Security	Shares		Value

African Rainbow Minerals Ltd.		832,511	$	14,219,082
Anglo American Platinum Ltd.^a,b		689,401		28,722,341
AngloGold Ashanti Ltd.^a		4,159,205		70,803,549
Aspen Pharmacare Holdings Ltd.		3,387,069		97,340,734
Assore Ltd.		234,252		6,932,365
Barclays Africa Group Ltd.		3,184,584		49,879,459
Barloworld Ltd.		2,297,077		21,892,146
Bidvest Group Ltd.		3,432,730		90,800,121
Brait SE^a		2,574,828		19,176,724
Coronation Fund Managers Ltd.		1,781,180		16,747,654
Discovery Ltd.		2,786,998		25,720,128
Exxaro Resources Ltd.^b		1,589,755		22,553,194
FirstRand Ltd.		33,506,256		136,256,800
Foschini Group Ltd. (The)		2,297,100		24,864,335
Gold Fields Ltd.		7,958,240		37,720,714
Growthpoint Properties Ltd.		19,817,853		46,957,321
Harmony Gold Mining Co. Ltd.^a		4,288,064		12,994,744
Impala Platinum Holdings Ltd.		5,582,685		50,523,105
Imperial Holdings Ltd.		1,973,250		35,288,955
Investec Ltd.		3,280,234		29,670,582
Kumba Iron Ore Ltd.		645,762		19,338,736
Liberty Holdings Ltd.		1,338,246		16,430,803
Life Healthcare Group Holdings Ltd.		9,358,258		39,402,636
Massmart Holdings Ltd.		723,765		8,899,219
Mediclinic International Ltd.		3,213,835		27,945,866
MMI Holdings Ltd.		9,412,757		24,329,756
Mr. Price Group Ltd.		2,361,138		45,444,924
MTN Group Ltd.		17,512,687		396,906,376
Nampak Ltd.		4,545,841		18,229,697
Naspers Ltd. Class N		4,115,243		524,502,528
Nedbank Group Ltd.		2,416,220		51,957,568
Netcare Ltd.		12,413,515		37,700,184
Northam Platinum Ltd.^a		2,522,549		10,127,766
Pick n Pay Stores Ltd.^b		3,787,908		20,123,061
PPC Ltd.		6,437,418		20,040,893
Rand Merchant Insurance Holdings Ltd.		5,137,235		16,278,167
Redefine Properties Ltd.		27,071,094		24,333,796


CONSOLIDATED SCHEDULE OF INVESTMENTS			17

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

Remgro Ltd.		4,803,300	$	109,972,690
RMB Holdings Ltd.		6,101,453		32,115,326
Sanlam Ltd.		19,770,202		122,687,753
Sappi Ltd.^a,b		4,327,252		17,902,391
Sasol Ltd.		5,767,409		335,283,453
Shoprite Holdings Ltd.		4,717,923		65,409,646
SPAR Group Ltd. (The)		1,943,283		23,820,994
Standard Bank Group Ltd.		13,114,664		170,169,776
Steinhoff International Holdings Ltd.		21,537,419		106,336,374
Tiger Brands Ltd.		1,827,498		52,752,307
Truworths International Ltd.		4,858,485		33,987,559
Vodacom Group Ltd.^b		3,576,080		43,156,804
Woolworths Holdings Ltd.		8,156,412		60,938,799

				3,315,603,690
SOUTH KOREA — 14.34%
AmorePacific Corp.		36,252		75,439,341
AmorePacific Group		27,207		28,388,980
BS Financial Group Inc.		2,043,075		33,851,432
Celltrion Inc.^a,b		697,770		28,662,282
Cheil Worldwide Inc.^a		1,000,978		22,656,388
CJ CheilJedang Corp.		87,124		32,479,779
CJ Corp.		160,336		28,305,285
Coway Co. Ltd.		613,094		51,456,481
Daelim Industrial Co. Ltd.		300,009		25,860,039
Daewoo Engineering & Construction Co. Ltd.^a		841,431		7,070,361
Daewoo International Corp.		425,263		15,623,104
Daewoo Securities Co. Ltd.^a		1,633,573		19,010,959
Daewoo Shipbuilding & Marine Engineering Co. Ltd.^b		1,047,105		25,662,566
DGB Financial Group Inc.		1,409,590		24,606,483
Dongbu Insurance Co. Ltd.		452,777		27,328,717
Doosan Corp.		112,558		13,376,635
Doosan Heavy Industries & Construction Co. Ltd.^b		502,832		14,307,119
Doosan Infracore Co. Ltd.^a		1,265,982		14,795,490
E-Mart Co. Ltd.		222,899		53,639,091
GS Engineering & Construction Corp.^a,b		481,090		17,484,261
GS Holdings Corp.		517,439		21,969,278
Halla Visteon Climate Control Corp.^b		342,506		18,207,085


Security	Shares		Value

Hana Financial Group Inc.		2,914,276	$	122,296,409
Hankook Tire Co. Ltd.		768,155		39,849,059
Hanwha Chemical Corp.^b		907,788		14,682,897
Hanwha Corp.		425,142		12,683,609
Hanwha Life Insurance Co. Ltd.		2,335,251		16,029,732
Hite Jinro Co. Ltd.^b		136,289		3,104,962
Hotel Shilla Co. Ltd.		334,337		39,238,723
Hyosung Corp.		241,315		18,658,806
Hyundai Department Store Co. Ltd.		147,258		23,019,274
Hyundai Development Co. Engineering & Construction^b		544,360		22,119,071
Hyundai Engineering & Construction Co. Ltd.		762,943		48,081,323
Hyundai Glovis Co. Ltd.		139,558		41,635,480
Hyundai Heavy Industries Co. Ltd.		435,433		61,839,688
Hyundai Marine & Fire Insurance Co. Ltd.		617,900		18,982,775
Hyundai Merchant Marine Co. Ltd.^a,b		654,272		7,936,827
Hyundai Mipo Dockyard Co. Ltd.^b		129,944		16,532,152
Hyundai Mobis Co. Ltd.		714,589		207,198,743
Hyundai Motor Co.		1,598,958		367,431,544
Hyundai Steel Co.		684,887		51,132,645
Hyundai Wia Corp.		161,201		35,453,250
Industrial Bank of Korea		2,428,153		42,147,535
Kangwon Land Inc.		1,109,856		39,459,844
KB Financial Group Inc.		3,636,075		149,000,361
KCC Corp.		45,905		30,921,756
Kia Motors Corp.		2,750,706		166,027,129
Korea Aerospace Industries Ltd.^b		482,681		17,113,647
Korea Electric Power Corp.		2,723,726		113,359,867
Korea Gas Corp.^a		296,540		16,494,754
Korea Investment Holdings Co. Ltd.		335,545		16,844,263
Korea Zinc Co. Ltd.		90,291		37,445,008
Korean Air Lines Co. Ltd.^a		290,146		10,430,319
KT Corp.		557,161		19,232,344
KT Corp. SP ADR		515,745		8,819,239
KT&G Corp.		1,146,353		107,292,174


18		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

Kumho Petro Chemical Co. Ltd.^b		144,924	$	11,620,219
LG Chem Ltd.		478,377		127,148,875
LG Corp.		1,031,991		72,161,509
LG Display Co. Ltd.^a		2,445,697		84,542,315
LG Electronics Inc.^b		1,112,676		82,961,000
LG Household & Health Care Ltd.		99,802		50,494,034
LG Innotek Co. Ltd.^a,b		122,847		16,295,598
LG Uplus Corp.		2,179,870		23,541,177
Lotte Chemical Corp.^b		171,630		27,675,433
Lotte Confectionery Co. Ltd.		5,126		10,970,383
Lotte Shopping Co. Ltd.		106,353		34,823,409
LS Corp.		162,913		11,247,014
LS Industrial Systems Co. Ltd.		181,391		11,198,853
Mirae Asset Securities Co. Ltd.		208,814		9,977,847
NAVER Corp.		294,410		222,996,085
NCsoft Corp.		163,523		23,384,620
OCI Co. Ltd.^a,b		176,908		25,385,980
ORION Corp.^b		37,030		31,882,430
Paradise Co. Ltd.^b		389,758		15,106,750
POSCO		675,740		222,592,002
S-Oil Corp.^b		459,114		21,213,562
S1 Corp.		232,891		16,996,828
Samsung C&T Corp.		1,344,946		98,952,583
Samsung Card Co. Ltd.		369,215		17,751,596
Samsung Electro-Mechanics Co. Ltd.		608,782		32,962,308
Samsung Electronics Co. Ltd.		1,142,508		1,390,457,983
Samsung Engineering Co. Ltd.^a,b		300,728		18,952,137
Samsung Fire & Marine Insurance Co. Ltd.		353,369		96,710,782
Samsung Heavy Industries Co. Ltd.		1,658,623		44,575,646
Samsung Life Insurance Co. Ltd.		638,615		67,076,776
Samsung SDI Co. Ltd.^b		597,118		89,218,775
Samsung Securities Co. Ltd.^b		611,155		29,866,098
Samsung Techwin Co. Ltd.		384,418		16,169,858


Security	Shares		Value

Shinhan Financial Group Co. Ltd.		4,281,288	$	221,675,250
Shinsegae Co. Ltd.		79,007		18,155,364
SK C&C Co. Ltd.		232,441		48,714,150
SK Holdings Co. Ltd.		264,331		41,841,437
SK Hynix Inc.^a		5,883,926		263,455,043
SK Innovation Co. Ltd.		608,180		56,442,367
SK Networks Co. Ltd.^a		1,046,836		10,148,822
SK Telecom Co. Ltd.		83,194		22,399,489
SK Telecom Co. Ltd. SP ADR		209,048		6,254,716
Woori Finance Holdings Co. Ltd.^a		3,066,954		41,590,431
Woori Investment & Securities Co. Ltd.^b		1,180,928		13,801,466
Yuhan Corp.		93,193		15,900,576

				6,359,965,941
TAIWAN — 11.83%
Acer Inc.^a,b		27,067,053		22,412,123
Advanced Semiconductor Engineering Inc.^b		63,147,701		78,695,634
Advantech Co. Ltd.		2,841,800		26,668,169
Asia Cement Corp.^b		24,320,077		33,359,200
Asia Pacific Telecom Co. Ltd.^b		14,414,000		9,306,977
ASUSTeK Computer Inc.^b		7,062,968		73,960,254
AU Optronics Corp.^b		88,289,000		43,863,156
Catcher Technology Co. Ltd.^b		6,839,210		69,329,072
Cathay Financial Holding Co. Ltd.		85,806,644		146,405,676
Chailease Holding Co. Ltd.^b		9,478,820		25,623,146
Chang Hwa Commercial Bank Ltd.		46,139,996		28,711,595
Cheng Shin Rubber Industry Co. Ltd.^b		17,112,128		39,502,077
Chicony Electronics Co. Ltd.		6,884,088		22,570,403
China Airlines Ltd.^a		22,475,347		7,519,228
China Development Financial Holding Corp.		153,754,848		51,953,763
China Life Insurance Co. Ltd.		25,322,803		23,509,402
China Motor Co. Ltd.^b		4,907,000		4,695,144
China Steel Corp.^b		125,158,313		108,030,460


CONSOLIDATED SCHEDULE OF INVESTMENTS			19

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

Chunghwa Telecom Co. Ltd.		40,272,410	$	125,167,089
Clevo Co.		7,110,553		13,440,600
Compal Electronics Inc.		44,509,908		39,610,028
CTBC Financial Holding Co. Ltd.		137,841,755		100,301,372
CTCI Corp.		3,085,000		5,521,738
Delta Electronics Inc.		19,433,000		136,529,332
E.Sun Financial Holding Co. Ltd.		60,105,232		39,513,150
Eclat Textile Co. Ltd.^b		1,699,360		14,213,212
Epistar Corp.^b		8,332,345		18,119,551
EVA Airways Corp.^a		13,635,800		6,842,876
Evergreen Marine Corp. Ltd.^a		18,588,325		11,349,323
Far Eastern Department Stores Ltd.^b		12,458,191		12,545,509
Far Eastern New Century Corp.		31,965,763		34,275,195
Far EasTone Telecommunications Co. Ltd.		15,829,000		33,733,370
Farglory Land Development Co. Ltd.		9,574,727		13,293,561
First Financial Holding Co. Ltd.		73,675,706		45,599,791
Formosa Chemicals & Fibre Corp.		32,836,090		81,731,824
Formosa International Hotels Corp.		265,015		2,979,041
Formosa Petrochemical Corp.^b		9,433,000		23,826,684
Formosa Plastics Corp.		44,922,280		116,474,355
Formosa Taffeta Co. Ltd.		9,638,000		10,237,584
Foxconn Technology Co. Ltd.		8,836,659		22,172,577
Fubon Financial Holding Co. Ltd.		69,644,969		113,704,170
Giant Manufacturing Co. Ltd.		3,670,203		30,512,887
Hermes Microvision Inc.^b		383,000		16,465,265
Highwealth Construction Corp.		5,057,900		8,968,358
Hiwin Technologies Corp.^b		2,099,449		20,509,497
Hon Hai Precision Industry Co. Ltd.^b		129,861,812		443,147,650
Hotai Motor Co. Ltd.^b		2,594,000		36,492,431


Security	Shares		Value

HTC Corp.^b		7,108,708	$	32,700,937
Hua Nan Financial Holdings Co. Ltd.		51,427,636		31,915,915
Innolux Corp.^b		79,171,004		40,260,259
Inotera Memories Inc.^a		23,446,000		38,356,983
Inventec Corp.		25,379,281		19,953,266
Kinsus Interconnect Technology Corp.		2,534,000		10,724,177
Largan Precision Co. Ltd.		1,024,000		84,789,482
Lite-On Technology Corp.		21,388,157		35,455,519
MediaTek Inc.^b		14,642,338		244,688,039
Mega Financial Holding Co. Ltd.		96,734,162		83,496,140
Merida Industry Co. Ltd.		2,131,500		15,688,262
Nan Ya Plastics Corp.		50,648,160		119,459,202
Novatek Microelectronics Corp. Ltd.		5,600,000		28,758,301
Pegatron Corp.^b		15,736,414		33,378,118
Phison Electronics Corp.		1,213,535		8,789,760
Pou Chen Corp.^b		23,502,220		27,165,879
Powertech Technology Inc.^b		5,903,300		11,198,110
President Chain Store Corp.		6,288,000		47,648,316
Quanta Computer Inc.		26,725,000		75,461,769
Radiant Opto-Electronics Corp.^b		4,722,240		20,380,019
Realtek Semiconductor Corp.^b		4,448,637		16,222,594
Ruentex Development Co. Ltd.^b		7,718,337		13,866,436
Ruentex Industries Ltd.		6,217,598		15,080,907
ScinoPharm Taiwan Ltd.^b		3,131,545		6,390,801
Shin Kong Financial Holding Co. Ltd.		62,095,479		20,254,961
Siliconware Precision Industries Co. Ltd.^b		32,476,190		47,371,636
Simplo Technology Co. Ltd.		3,261,202		18,329,634
SinoPac Financial Holdings Co. Ltd.		72,647,278		33,175,602
Standard Foods Corp.^b		3,449,066		8,861,955
Synnex Technology International Corp.^b		13,735,985		20,955,184
Taishin Financial Holdings Co. Ltd.		74,402,025		37,835,124
Taiwan Business Bank Ltd.^a		27,507,723		8,613,850


20		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

Taiwan Cement Corp.		37,268,296	$	59,224,304
Taiwan Cooperative Financial Holding Co. Ltd.		50,577,808		28,258,122
Taiwan Fertilizer Co. Ltd.		6,863,000		13,018,588
Taiwan Glass Industry Corp.		5,548,176		4,788,911
Taiwan Mobile Co. Ltd.		17,630,600		56,211,712
Taiwan Semiconductor Manufacturing Co. Ltd.^b		255,640,000		1,060,516,218
Teco Electric and Machinery Co. Ltd.		25,285,000		31,806,628
TPK Holding Co. Ltd.^b		2,548,827		17,310,245
Transcend Information Inc.		872,000		2,931,901
TSRC Corp.		9,685,992		13,561,458
U-Ming Marine Transport Corp.		4,221,000		6,947,799
Uni-President Enterprises Co.		49,142,576		89,931,547
Unimicron Technology Corp.^b		11,417,000		9,644,511
United Microelectronics Corp.^b		125,911,000		57,499,378
Vanguard International Semiconductor Corp.		7,943,000		11,625,976
Walsin Lihwa Corp.^a		23,964,000		8,578,471
Wistron Corp.^b		21,373,560		25,027,169
WPG Holdings Co. Ltd.		12,366,532		16,114,699
Yang Ming Marine Transport Corp.^a		27,899,075		12,553,907
Yuanta Financial Holding Co. Ltd.		85,158,343		45,869,066
Yulon Motor Co. Ltd.^b		10,513,000		16,882,421
Zhen Ding Technology Holding Ltd.^b		2,490,075		8,230,689

				5,247,154,356
THAILAND — 2.26%
Advanced Information Service PCL NVDR		10,898,600		71,315,197
Airports of Thailand PCL NVDR		4,683,200		34,750,107
Bangkok Bank PCL Foreign		5,999,000		38,503,287
Bangkok Bank PCL NVDR		5,591,700		35,889,120
Bangkok Dusit Medical Services PCL NVDR		33,448,600		20,421,030
Banpu PCL NVDR		12,185,100		12,303,365
BEC World PCL NVDR		10,493,000		15,604,806


Security	Shares		Value

BTS Group Holdings PCL NVDR		49,254,600	$	14,881,243
Bumrungrad Hospital PCL NVDR		1,790,900		7,569,552
Central Pattana PCL NVDR		14,047,500		21,220,785
Charoen Pokphand Foods PCL NVDR		29,338,900		27,097,607
CP All PCL NVDR		47,111,600		70,062,649
Glow Energy PCL NVDR		5,805,800		15,905,056
Home Product Center PCL NVDR^b		22,819,371		7,501,672
Indorama Ventures PCL NVDR		15,598,980		13,186,364
IRPC PCL NVDR^b		102,211,700		10,624,385
Kasikornbank PCL Foreign		12,113,500		85,712,304
Kasikornbank PCL NVDR		6,887,900		48,521,525
Krung Thai Bank PCL NVDR		39,131,500		28,791,179
Minor International PCL NVDR		13,023,900		14,373,590
PTT Exploration & Production PCL NVDR		14,249,839		73,390,686
PTT Global Chemical PCL NVDR		16,225,530		31,496,019
PTT PCL NVDR		8,712,300		87,559,433
Siam Cement (The) PCL Foreign		3,194,200		44,002,755
Siam Cement (The) PCL NVDR		1,168,400		16,095,679
Siam Commercial Bank PCL NVDR		17,211,200		100,766,888
Thai Oil PCL NVDR^b		8,881,900		14,390,680
TMB Bank PCL NVDR		120,598,500		11,478,380
True Corp. PCL NVDR^a		84,177,521		30,308,124

				1,003,723,467
TURKEY — 1.65%
Akbank TAS		19,426,349		74,178,325
Anadolu Efes Biracilik ve Malt Sanayii AS^a		1,805,540		24,013,067
Arcelik AS^b		1,904,832		11,431,022
BIM Birlesik Magazalar AS		2,163,651		50,934,206
Coca-Cola Icecek AS		573,270		13,548,400
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		22,321,286		28,134,988
Enka Insaat ve Sanayi AS		3,937,520		9,871,397


CONSOLIDATED SCHEDULE OF INVESTMENTS			21

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

Eregli Demir ve Celik Fabrikalari TAS^b		16,848,984	$	32,793,036
Ford Otomotiv Sanayi AS^a,b		790,984		10,446,509
Haci Omer Sabanci Holding AS^b		9,310,475		43,144,999
KOC Holding AS^b		6,449,156		33,023,552
Koza Altin Isletmeleri AS^b		549,303		5,918,253
Migros Ticaret AS^a		1		5
TAV Havalimanlari Holding AS		1,845,772		15,353,278
Tofas Turk Otomobil Fabrikasi AS		1,124,006		6,927,538
Turk Hava Yollari AO^a		6,233,759		19,787,877
Turk Telekomunikasyon AS		4,396,000		12,752,362
Turkcell Iletisim Hizmetleri AS^a		8,415,551		49,332,339
Turkiye Garanti Bankasi AS		24,717,705		97,017,522
Turkiye Halk Bankasi AS		6,789,127		49,865,689
Turkiye Is Bankasi AS Class C		17,016,453		44,000,930
Turkiye Petrol Rafinerileri AS		1,438,872		33,872,285
Turkiye Sise ve Cam Fabrikalari AS		5,572,107		7,539,819
Turkiye Vakiflar Bankasi TAO Class D		9,502,047		21,928,309
Ulker Biskuvi Sanayi AS		1,157,705		8,583,739
Yapi ve Kredi Bankasi AS^b		11,304,720		25,197,852

				729,597,298
UNITED ARAB EMIRATES — 0.54%
Abu Dhabi Commercial Bank PJSC		9,584,051		20,900,409
Aldar Properties PJSC		33,110,250		35,967,356
Arabtec Holding Co.^a		14,915,775		19,126,693
DP World Ltd.		1,470,898		27,623,465
Dubai Financial Market PJSC		17,274,086		15,989,952
Dubai Islamic Bank PJSC		8,456,984		17,982,071
Emaar Properties PJSC		18,914,676		52,783,226
First Gulf Bank PJSC		5,454,806		27,102,874
National Bank of Abu Dhabi PJSC		5,340,984		20,357,408

				237,833,454

TOTAL COMMON STOCKS
(Cost: $37,699,853,887)				41,312,184,950


Security	Shares		Value

PREFERRED STOCKS — 6.39%

BRAZIL — 5.05%
AES Tiete SA		1,148,600	$	10,328,186
Banco Bradesco SA		21,867,758		399,132,639
Banco do Estado do Rio Grande do Sul SA Class B		1,990,800		13,746,223
Bradespar SA		2,382,500		21,774,765
Braskem SA Class A		1,684,900		11,483,419
Centrais Eletricas Brasileiras SA Class B		2,514,737		13,879,914
Companhia Brasileira de Distribuicao		1,344,286		68,441,403
Companhia Energetica de Minas Gerais		7,614,602		65,203,358
Companhia Energetica de Sao Paulo Class B		1,879,900		26,624,670
Companhia Paranaense de Energia Class B		1,095,375		19,415,241
Gerdau SA		8,990,185		52,071,595
Itau Unibanco Holding SA		28,966,852		522,492,077
Itausa – Investimentos Itau SA		34,180,465		166,506,701
Lojas Americanas SA		5,188,170		36,727,945
Metalurgica Gerdau SA		2,975,600		21,091,379
Oi SA		24,933,268		16,157,511
Petroleo Brasileiro SA		43,278,927		451,638,151
Suzano Papel e Celulose SA Class A		3,141,100		12,507,967
Telefonica Brasil SA		3,152,967		67,426,190
Usinas Siderurgicas de Minas Gerais SA Class A^a		4,045,800		14,609,758
Vale SA Class A		19,618,851		227,705,106

				2,238,964,198
CHILE — 0.08%
Embotelladora Andina SA Class B		2,311,266		7,576,294
Sociedad Quimica y Minera de Chile SA Series B		1,012,934		27,729,796

				35,306,090
COLOMBIA — 0.30%
Banco Davivienda SA		1,013,555		16,853,399
Bancolombia SA		4,591,374		72,755,490
Grupo Argos SA		1,130,982		13,794,980


22		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value

Grupo Aval Acciones y Valores SA		17,400,983	$	13,015,930
Grupo de Inversiones Suramericana SA		809,505		18,397,361

				134,817,160
RUSSIA — 0.24%
AK Transneft OAO		16,535		36,376,176
Sberbank of Russia		10,334,738		15,410,822
Surgutneftegas OJSC		75,498,900		55,564,080

				107,351,078
SOUTH KOREA — 0.72%
Hyundai Motor Co. Ltd.		210,091		31,080,083
Hyundai Motor Co. Ltd. Series 2		370,515		57,370,536
LG Chem Ltd.		79,510		13,840,441
Samsung Electronics Co. Ltd.		215,447		216,732,521

				319,023,581

TOTAL PREFERRED STOCKS
(Cost: $2,534,046,945)				2,835,462,107

WARRANTS — 0.00%

THAILAND — 0.00%
Indorama Ventures PCL NVDR (Expires 8/24/17)^a		1,536,398		—
Indorama Ventures PCL NVDR (Expires 8/24/18)^a		1,181,844		—

				—

TOTAL WARRANTS
(Cost: $0)				—

SHORT-TERM INVESTMENTS — 3.23%

MONEY MARKET FUNDS — 3.23%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^e,f,g		1,288,620,844		1,288,620,844
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		81,122,217		81,122,217
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^e,f		60,786,501		60,786,501

				1,430,529,562

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,430,529,562)				1,430,529,562


	Value

TOTAL INVESTMENTS IN SECURITIES — 102.80%
(Cost: $41,664,430,394)	$	45,578,176,619
Other Assets, Less Liabilities — (2.80)%		(1,241,775,976	)

NET ASSETS — 100.00%	$	44,336,400,643

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

NVS — Non-Voting Shares

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 1.

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

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

^e	Affiliated issuer. See Note 2.

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

^g	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

Financial futures contracts purchased as of August 31, 2014 were as follows:


Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Unrealized Appreciation (Depreciation)
	2,800	MSCI Emerging Markets E-Mini (Sept. 2014)	NYSE Liffe	$	152,012,000	$	6,299,526

See notes to consolidated financial statements.


CONSOLIDATED SCHEDULE OF INVESTMENTS			23

Consolidated Statement of Assets and Liabilities

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2014



ASSETS
Investments, at cost:
Unaffiliated	$	40,233,900,832
Affiliated (Note 2)		1,430,529,562

Total cost of investments	$	41,664,430,394

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	44,147,647,057
Affiliated (Note 2)		1,430,529,562

Total fair value of investments		45,578,176,619
Foreign currency, at value^b		66,224,001
Cash		34,357,462
Cash pledged to broker		5,983,010
Receivables:
Investment securities sold		109,173,594
Due from custodian (Note 4)		95,942
Dividends and interest		71,968,868
Capital shares sold		58,109,170

Total Assets		45,924,088,666


LIABILITIES
Payables:
Investment securities purchased		190,003,812
Collateral for securities on loan (Note 1)		1,369,743,061
Futures variation margin		243,135
Foreign taxes (Note 1)		3,472,462
Investment advisory fees (Note 2)		24,225,553

Total Liabilities		1,587,688,023


NET ASSETS	$	44,336,400,643


Net assets consist of:
Paid-in capital	$	48,142,717,237
Undistributed net investment income		173,862,959
Accumulated net realized loss		(7,900,251,692	)
Net unrealized appreciation		3,920,072,139

NET ASSETS	$	44,336,400,643


Shares outstanding^c		982,800,000


Net asset value per share	$	45.11

^a	Securities on loan with a value of $1,288,540,140. See Note 1.

^b	Cost of foreign currency: $66,214,437.

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

See notes to consolidated financial statements.


24		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statement of Operations

iSHARES^® MSCI EMERGING MARKETS ETF

Year ended August 31, 2014



NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	1,002,192,423
Interest — affiliated (Note 2)		10,782
Securities lending income — affiliated (Note 2)^b		20,304,239

		1,022,507,444
Less: Other foreign taxes (Note 1)		(4,977,501	)

Total investment income		1,017,529,943


EXPENSES
Investment advisory fees (Note 2)		258,410,222
Mauritius income taxes (Note 1)		1,047,435
Commitment fees (Note 8)		68,560
Interest expense (Note 8)		5,367

Total expenses		259,531,584
Less investment advisory fees waived (Note 2)		(784,811	)

Net expenses		258,746,773

Net investment income		758,783,170


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(1,503,688,768	)
In-kind redemptions — unaffiliated		523,811,253
Futures contracts		28,111,882
Foreign currency transactions		(18,733,713	)

Net realized loss		(970,499,346	)

Net change in unrealized appreciation/depreciation on:
Investments		6,253,004,868
Futures contracts		10,980,560
Translation of assets and liabilities in foreign currencies		3,281,195

Net change in unrealized appreciation/depreciation		6,267,266,623

Net realized and unrealized gain		5,296,767,277

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,055,550,447

^a	Net of foreign withholding tax of $118,489,281.

^b	Net of securities lending income tax paid $1,145,038.

See notes to consolidated financial statements.


FINANCIAL STATEMENTS			25

Consolidated Statements of Changes in Net Assets

iSHARES^® MSCI EMERGING MARKETS ETF


	Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	758,783,170		$	751,988,177
Net realized loss		(970,499,346	)		(879,811,483	)
Net change in unrealized appreciation/depreciation		6,267,266,623			(306,437,138	)

Net increase (decrease) in net assets resulting from operations		6,055,550,447			(434,260,444	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(673,353,625	)		(729,020,568	)

Total distributions to shareholders		(673,353,625	)		(729,020,568	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		16,425,662,994			15,077,037,675
Cost of shares redeemed		(12,275,651,505	)		(13,366,192,611	)

Net increase in net assets from capital share transactions		4,150,011,489			1,710,845,064

INCREASE IN NET ASSETS		9,532,208,311			547,564,052

NET ASSETS
Beginning of year		34,804,192,332			34,256,628,280

End of year	$	44,336,400,643		$	34,804,192,332

Undistributed net investment income included in net assets at end of year	$	173,862,959		$	99,170,750


SHARES ISSUED AND REDEEMED
Shares sold		388,800,000			355,500,000
Shares redeemed		(311,400,000	)		(323,550,000	)

Net increase in shares outstanding		77,400,000			31,950,000

See notes to consolidated financial statements.


26		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® MSCI EMERGING MARKETS ETF

(For a share outstanding throughout each period)


	Year ended Aug. 31, 2014 (Consolidated)			Year ended Aug. 31, 2013 (Consolidated)			Year ended Aug. 31, 2012 (Consolidated)			Year ended Aug. 31, 2011 (Consolidated)			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	38.44		$	39.22		$	42.71		$	40.19		$	35.48

Income from investment operations:
Net investment income^a		0.83			0.75			0.86			0.81			0.58
Net realized and unrealized gain (loss)^b		6.55			(0.76	)		(3.53	)		2.56			4.73

Total from investment operations		7.38			(0.01	)		(2.67	)		3.37			5.31

Less distributions from:
Net investment income		(0.71	)		(0.77	)		(0.82	)		(0.85	)		(0.60	)

Total distributions		(0.71	)		(0.77	)		(0.82	)		(0.85	)		(0.60	)

Net asset value, end of year	$	45.11		$	38.44		$	39.22		$	42.71		$	40.19


Total return		19.34	%		(0.08	)%		(6.18	)%		8.23	%		14.97	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	44,336,401		$	34,804,192		$	34,256,628		$	33,496,549		$	39,766,955
Ratio of expenses to average net assets		0.67	%		0.67	%		0.68	%		0.67	%		0.68	%
Ratio of expenses to average net assets prior to waived fees		0.68	%		0.67	%		0.69	%		0.67	%		0.68	%
Ratio of net investment income to average net assets		1.98	%		1.78	%		2.13	%		1.76	%		1.45	%
Portfolio turnover rate^c		22	%		24	%		15	%		17	%		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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013, August 31, 2012 and August 31, 2011 were 7%, 9%, 10% and 15%, respectively. See Note 4.

See notes to consolidated financial statements.


FINANCIAL HIGHLIGHTS			27

Notes to Consolidated Financial Statements

iSHARES^® MSCI EMERGING MARKETS ETF

These consolidated financial statements relate only to the following fund (the “Fund”):

iShares ETF

Diversification

Classification

MSCI Emerging Markets

Diversified

The investment objective of the 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 try to achieve the Fund’s investment objective.

The Fund carries out its investment strategies associated with investment in Indian securities by investing in a wholly-owned subsidiary in the Republic of Mauritius (the “Subsidiary”), which in turn invests in Indian securities included in the underlying index. The investment adviser of the Fund also serves as the investment adviser to the Subsidiary. Through this investment structure, the Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. The accompanying consolidated financial statements for the Fund include the accounts of the Subsidiary. Intercompany accounts and transactions, if any, have been eliminated.

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 Fund 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. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946 (ASC 946).

SECURITY VALUATION

The Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Fund. The investments of the Fund are valued pursuant to


28		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

•

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

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.

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			29

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

The following table summarizes the value of each of the Fund’s investments according to the fair value hierarchy as of August 31, 2014. The breakdown of the Fund’s investments into major categories is disclosed in its consolidated schedule of investments.


	Investments
Investment Type	Level 1		Level 2			Level 3		Total
Assets:
Common Stocks	$	41,302,779,330	$	9,391,831		$	13,789	$	41,312,184,950
Preferred Stocks		2,835,462,107		—			—		2,835,462,107
Warrants		—		0	^a		—		0	^a
Money Market Funds		1,430,529,562		—			—		1,430,529,562
Futures Contracts^b		6,299,526		—			—		6,299,526

	$	45,575,070,525	$	9,391,831		$	13,789	$	45,584,476,145

Rounds to less than $1.

Shown at the unrealized appreciation (depreciation) on the contracts.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of August 31, 2014 are reflected in dividends receivable. 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. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Fund are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. 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, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the


30		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

Fund and are reflected in its consolidated statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2014, if any, are disclosed in the Fund’s consolidated statement of assets and liabilities.

The Fund conducts its investment activities in India through the Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”). In order to be eligible to claim benefits under the DTAA, the Subsidiary must satisfy certain conditions, including the establishment and maintenance of valid tax residence in Mauritius. The Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, a system of tax credits effectively reduces the Mauritius income tax rate to a maximum of 3%. These income taxes, if any, are paid by the Fund and are disclosed in the consolidated statement of operations. Further, the Subsidiary is not subject to tax in Mauritius on any gains from the sale of securities. Any dividends paid by the Subsidiary to the Fund will also be exempt from tax in Mauritius. The foregoing is based upon current interpretation and practice and is subject to future changes in the tax laws of India or Mauritius and in the DTAA.

As a result of legislative changes enacted by the 2012 India Finance Act (“the Act”) and its general anti-avoidance rules (“GAAR”), which are effective April 1, 2013 but have been proposed to be deferred until April 1, 2016, the Subsidiary’s ability to leverage the treaty between Mauritius and India may be adversely impacted, and therefore the Fund may be subject to taxes on capital gains and/or dividends realized on Indian securities. The Act also includes provisions that impose Indian tax on the transfer of shares of an Indian company. However, until more definitive guidance on the legislative changes is available, the impact to the Fund, if any, cannot be determined at this time.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. 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.

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 market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

Any cash received as collateral for securities on loan 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 BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, or its affiliates. As of August 31, 2014, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA and is disclosed in the consolidated schedule of investments. The value of any securities on loan as of August 31, 2014 and the value of the related collateral are disclosed in the consolidated statement of assets and liabilities. Income earned by the Fund from securities lending is disclosed in the consolidated statement of operations.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			31

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

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. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities lent. The Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and the Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

The following table is a summary of the Fund’s securities lending agreements which are subject to offset under an MSLA as of August 31, 2014:

Market Value of

Securities on Loan

Cash Collateral
Received^a

Net
Amount

$1,288,540,140

1,288,540,140

—

Collateral received in excess of the market value of securities on loan is not presented for financial reporting purposes. The total collateral received is disclosed in the Fund’s statement of assets and liabilities.

RECENT ACCOUNTING STANDARD

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Fund, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses.

The Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. The Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.


32		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

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
	0.54	^a	Over $42 billion, up to and including $56 billion
	0.47	^a	Over $56 billion, up to and including $70 billion
	0.41	^a	Over $70 billion, up to and including $84 billion
	0.35	^a	Over $84 billion

Investment advisory fee was reduced effective July 1, 2014. Prior to this date, the investment advisory fee for these breakpoint levels were 0.56%, 0.50%, 0.45% and 0.40%, respectively.

For the year ended August 31, 2014, BFA has voluntarily waived a portion of its investment advisory fees for the Fund in the amount of $784,811.

BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through December 31, 2015 in an amount equal to the Fund’s pro rata share of the fees and expenses attributable to the Fund’s investment in other iShares funds. The Fund did not hold any iShares Funds during the year ended August 31, 2014.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Effective January 1, 2014, the Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Fund retains a portion of securities lending income and remits a remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to a securities lending agreement effective January 1, 2014, (i) the Fund retains 75% of securities lending income and (ii) these amounts can never be less than 65% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in calendar year 2013 and pursuant to a securities lending agreement, (i) the Fund will receive for the remainder of that calendar year 80% of securities lending income and (ii) these amounts can never be less than 65% of the total of securities lending income plus the collateral investment fees.

For the year ended August 31, 2014, the Fund paid to BTC securities lending agent services and collateral investment fees in the amount of $8,714,344.

Prior to January 1, 2014, the Fund retained 65% of securities lending income and paid no collateral investment fees.

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for the Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Fund.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			33

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

Cross trades for the year ended August 31, 2014, if any, were executed by the Fund pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

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 – affiliated” in the consolidated statement of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Fund for 1940 Act purposes.

The Fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the Fund’s underlying index.

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 year ended August 31, 2014, were $ 11,064,753,979 and $ 8,451,267,337, respectively.

In-kind purchases and sales (see Note 4) for the year ended August 31, 2014, were $7,515,819,648 and $5,791,343,761, 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 consolidated statements of changes in net assets.

5.	*FINANCIAL FUTURES CONTRACTS*


34		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

The following table shows the value of futures contracts held by the Fund as of August 31, 2014 and the related locations in the consolidated statement of assets and liabilities, presented by risk exposure category:


Assets
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation^a	$	6,299,526

Represents cumulative appreciation of futures contracts as reported in the consolidated schedule of investments. Only current day’s variation margin is reported separately within the consolidated statement of assets and liabilities.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the Fund during the year ended August 31, 2014 and the related locations in the consolidated statement of operations, presented by risk exposure category:


	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	28,111,882	$	10,980,560

The following table shows the average quarter-end balances of open futures contracts for the year ended August 31, 2014:


Average number of contracts purchased		2,974
Average number of contracts sold		(196	)
Average value of contracts purchased	$	147,191,295
Average value of contracts sold	$	(9,936,220	)

6.	*MARKET AND CREDIT RISK*

In the normal course of business, the Fund’s investment activities exposes it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks the Fund is exposed to include market risk and credit risk. The Fund’s prospectus provides details of these and other types of risk.

BFA uses a “passive” or index approach to try to achieve the Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			35

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss the Fund may suffer through holding market positions in the face of market movements. The Fund is exposed to market risk by virtue of its investment in equity and financial derivative instruments. The fair value of securities held by the Fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of the Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s consolidated schedule of investments.

A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its consolidated schedule of investments.

The Fund invests a substantial amount of its assets in securities of non-U.S. issuers that trade in non-U.S. markets. This involves 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. These risks are heightened for investments in issuers from countries with less developed markets.

The United States and the European Union, along with the regulatory bodies of a number of countries including Japan, Australia and Canada (collectively, “Sanctioning Bodies”), have imposed sectorial economic sanctions on certain Russian individuals and Russian corporate entities which include prohibitions on transacting in or dealing in new debt of longer than 30 or 90 days maturity or new equity of such issuers. Securities held by the Fund issued prior to the date of the sanctions being imposed are not currently subject to any restrictions under the sanctions. However, compliance with each of these sanctions may impair the ability of a Fund to buy, sell, hold, receive or deliver the affected securities or other securities of such issuers. The Sanctioning Bodies could also institute broader sanctions on Russia. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. Current or future sanctions may result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. These retaliatory measures may include the immediate freeze of Russian assets held by a Fund.

CREDIT RISK

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in the consolidated statement of assets and liabilities.


36		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

7.	*INCOME TAX INFORMATION*

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 is required.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of August 31, 2014, attributable to passive foreign investment companies, the expiration of capital loss carryforwards, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:

Paid-in

Capital

Undistributed

Net Investment

Income/Distributions
in Excess of Net

Investment Income

Undistributed

Net Realized

Gain/Accumulated

Net Realized Loss

$456,390,241

(10,737,336

)

(445,652,905

)

The tax character of distributions paid during the years ended August 31, 2014 and August 31, 2013 was as follows:


	2014		2013
Ordinary income	$	673,353,625	$	729,020,568

As of August 31, 2014, the tax components of accumulated net earnings (losses) were as follows:

Undistributed
Ordinary
Income

Capital
Loss
Carryforwards

Net

Unrealized
Gains (Losses)^a

Qualified
Late-Year
Losses ^b

Total

$264,497,248

(5,790,591,468

)

2,696,435,746

(976,658,120

)

(3,806,316,594

)

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain futures contracts and the realization for tax purpose of unrealized gains on investments in passive foreign investment companies.

The Fund has elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of August 31, 2014, the Fund had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Non-

Expiring^a

Expiring
2015

Expiring
2016

Expiring
2017

Expiring
2018

Expiring
2019

Total

$3,444,042,588

29,973,301

13,844,901

228,196,854

1,201,366,175

873,167,649

5,790,591,468

Must be utilized prior to losses subject to expiration.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			37

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

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.

As of August 31, 2014, the cost of investments for federal income tax purposes was $42,881,767,261. Net unrealized appreciation was $2,696,409,358, of which $7,609,310,065 represented gross unrealized appreciation on securities and $4,912,900,707 represented gross unrealized depreciation on securities.

Management has analyzed tax laws and regulations and their application to the Fund as of August 31, 2014, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Fund’s consolidated financial statements.

8.	*LINE OF CREDIT*

The Fund, along with certain other iShares funds, is a party to a $150 million credit agreement with State Street Bank and Trust Company, which expires October 28, 2015. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.08% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

For the year ended August 31, 2014, the Fund’s maximum amount borrowed, the average borrowings and the average interest rate under the credit agreement were $24,000,000, $460,274 and 1.15%, respectively.

9.	*LEGAL PROCEEDINGS*

On January 18, 2013, a lawsuit was filed in the United States District Court for the Middle District of Tennessee by Laborers’ Local 265 Pension Fund and Plumbers and Pipefitters Local No. 572 Pension Fund (the “Plaintiffs”) against BFA, BTC, and the current members of the iShares Trust Board of Trustees and the Board of Directors of iShares, Inc. (collectively, “Defendants”) for alleged violations of, among other things, Sections 36(a) and 36(b) of the 1940 Act. The complaint purports to be brought derivatively on behalf of iShares Trust and iShares, Inc., as well as the following eight funds: iShares Russell Mid-Cap ETF; iShares MSCI EAFE ETF; iShares MSCI Emerging Markets ETF; iShares Russell 2000 Growth ETF; iShares Russell 2000 Value ETF; iShares Core S&P Mid-Cap ETF; iShares Core S&P Small-Cap ETF; and iShares U.S. Real Estate ETF. The complaint alleges, among other things, that BFA and BTC breached their fiduciary duties under the 1940 Act by charging allegedly excessive fees in connection with the provision of securities lending services to the above eight funds, that the individual defendants breached their fiduciary duties under the 1940 Act by approving those fee arrangements, and that the securities lending contracts are unenforceable under Section 47(b) of the 1940 Act. Plaintiffs seek injunctive relief, rescission of the securities lending contracts, and monetary damages of an unspecified amount. Defendants believe the claims are without merit and intend to vigorously defend themselves against the allegations in the lawsuit. On March 11, 2013, the Defendants filed a motion to dismiss the lawsuit. On August 28, 2013, the court dismissed the claims without prejudice. The deadline for the Plaintiffs’ request to amend the complaint was September 17, 2013. The Plaintiffs submitted a motion to extend the time to file and the court granted the 30-day extension until October 17, 2013. The Plaintiffs did not amend their complaint prior to this deadline. The Court dismissed the complaint with prejudice on October 24, 2013. The Plaintiffs filed a notice of appeal on November 8, 2013. On February 13, 2014, the Plaintiffs filed an appeal brief with the United States Court of Appeals for the Sixth Circuit (“the Sixth Circuit”). The Defendants filed a response on March 17, 2014. The Plaintiffs filed their response on


38		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

April 3, 2014. Oral argument of the Plaintiff’s appeal was heard by the Sixth Circuit on July 30, 2014. On September 30, 2014, the Sixth Circuit affirmed the dismissal of the lawsuit.

10.

SUBSEQUENT EVENTS

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


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			39

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

iShares, Inc.:

In our opinion, the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, and the related consolidated statements of operations and of changes in net assets and the consolidated financial highlights present fairly, in all material respects, the financial position of iShares MSCI Emerging Markets ETF and its subsidiary (the “Fund”) at August 31, 2014, the results of its operations, the changes in its net assets and its financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These consolidated financial statements and consolidated financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2014


40		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^® MSCI EMERGING MARKETS ETF

For the fiscal year ended August 31, 2014, the Fund earned foreign source income of $1,119,908,950 and paid foreign taxes of $124,221,501 which it intends to pass through to its shareholders pursuant to Section 853 of the Internal Revenue Code (the “Code”).

Under Section 854(b)(2) of the Code, the Fund hereby designates the maximum amount of $653,311,329 as qualified dividend income for purposes of the maximum rate under Section 1(h)(11) of the Code for the fiscal year ended August 31, 2014.


TAX INFORMATION			41

Board Review and Approval of Investment Advisory

Contract

iSHARES^® MSCI EMERGING MARKETS ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of the Fund in comparison with the same information for other exchange traded funds (including funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Lipper’s judgment, pure index institutional mutual funds, objectively selected by Lipper as comprising the Fund’s applicable peer group pursuant to Lipper’s proprietary ETF methodology (the “Lipper Group”). The Board noted that, prior to 2014, Lipper had used a different methodology to determine the Fund’s Lipper group, which included mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g. actively managed funds and funds sponsored by “at cost” service providers), as applicable. The Board further noted that, after consideration by the 15(c) Committee, the Board determined to use instead Lipper’s proprietary ETF methodology to determine the Fund’s Lipper Group. This determination was based on, among other considerations, the increased number and types of ETFs available for comparative purposes than was the case in prior years. The Board was provided with a detailed description of Lipper’s proprietary ETF methodology used by Lipper to determine the applicable Lipper Group and to prepare this information. At the Board’s request, Lipper provided, and the Board considered, information on the impact to the iShares funds’ comparative fee rankings that were attributable to the change from a pure index group methodology to Lipper’s proprietary ETF methodology. The Board further noted that due to the limitations in providing comparable funds in the Lipper Group, the statistical information provided in Lipper’s report may or may not provide meaningful direct comparisons to the Fund in all instances.


42		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

comparison of the Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as the Fund, Lipper also provided, and the Board reviewed, a comparison of the Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Fund generally performed in line with its respective performance benchmark index over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Fund. In addition, the Board noted that the Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Fund’s performance in comparison with its relevant benchmark index. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Boards, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to the Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			43

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following receipt of a proposal from the Board and negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to reduce the advisory fee for certain breakpoint tiers, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rate reflects appropriate sharing of potential economies of scale with the Fund’s shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services


44		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			45

Supplemental Information (Unaudited)

iSHARES^® MSCI EMERGING MARKETS ETF

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 the 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								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
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
$	0.644808	$	—	$	0.061600	$	0.706408		91	%		—	%		9	%		100	%

Premium/Discount Information

The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five calendar years (or for each full calendar quarter completed after the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.


46		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0% and Less than 4.5%		1		0.07	%
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		4		0.29
Greater than 2.0% and Less than 2.5%		10		0.72
Greater than 1.5% and Less than 2.0%		22		1.59
Greater than 1.0% and Less than 1.5%		54		3.91
Greater than 0.5% and Less than 1.0%		258		18.68
Between 0.5% and –0.5%		737		53.34
Less than –0.5% and Greater than –1.0%		181		13.10
Less than –1.0% and Greater than –1.5%		69		4.99
Less than –1.5% and Greater than –2.0%		23		1.66
Less than –2.0% and Greater than –2.5%		11		0.80
Less than –2.5% and Greater than –3.0%		6		0.43
Less than –3.0% and Greater than –3.5%		2		0.14
Less than –3.5% and Greater than –4.0%		1		0.07
Less than –4.0% and Greater than –4.5%		1		0.07

		1,382		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares MSCI Emerging Markets ETF (the “Fund”) for marketing to EU investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration


SUPPLEMENTAL INFORMATION			47

Supplemental Information (Unaudited) (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

Disclosures are provided in relation to both (a) the staff of BFA; and (b) staff who are senior management or who have the ability to materially affect the risk profile of the Fund.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2013 is USD 7,774,980. This figure is comprised of fixed remuneration of USD 3,057,085 and variable remuneration of USD 4,717,895. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Emerging Markets ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 1,249,110.


48		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information

iSHARES^®, INC.

Interested Directors

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc.

Mark Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.


DIRECTOR AND OFFICER INFORMATION			49

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert H. Silver (59)	Director (since 2007); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Independent Chairman of iShares, Trust, iShares MSCI Russia Capped ETF, Inc. and iShares U.S. ETF Trust (since 2012).

Cecilia H. Herbert (65)	Director (since 2005); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Forward Funds (34 portfolios) (since 2009).

Charles A. Hurty (70)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).

John E. Kerrigan (59)	Director (since 2005); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).


50		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
John E. Martinez (53)	Director (since 2003); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).

George G.C. Parker (75)	Director (since 2002).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).
Madhav V. Rajan (50)	Director (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).


DIRECTOR AND OFFICER INFORMATION			51

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (54)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (45)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2007).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (51)	Executive Vice President (since 2007).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2007).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


52		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			53

Notes:


54		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

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 daily and monthly basis on the Fund’s website.

LOGO

iS-AR-85-0814

AUGUST 31, 2014

2014 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI All Country World Minimum Volatility ETF | ACWV | NYSE Arca

^Ø

iShares MSCI Emerging Markets EMEA ETF | EEME | NASDAQ

^Ø

iShares MSCI Frontier 100 ETF | FM | NYSE Arca

^Ø

iShares MSCI World ETF | URTH | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			14
Shareholder Expenses			14
Schedules of Investments			15
iShares MSCI All Country World Minimum Volatility ETF			15
iShares MSCI Emerging Markets EMEA ETF			21
iShares MSCI Frontier 100 ETF			24
iShares MSCI World ETF			27
Financial Statements			42
Financial Highlights			48
Notes to Financial Statements			52
Report of Independent Registered Public Accounting Firm			64
Tax Information			65
Board Review and Approval of Investment Advisory Contracts			66
Supplemental Information			80
Director and Officer Information			84

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.70%		16.83%		16.53%		16.70%		16.83%		16.53%
Since Inception		13.87%		13.80%		13.58%		45.20%		44.92%		44.09%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 10/18/11. The first day of secondary market trading was 10/20/11.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,084.30	$	1.05	$	1,000.00	$	1,024.20	$	1.02		0.20%


6		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY ETF

The iShares MSCI All Country World Minimum Volatility ETF (the “Fund”) seeks to track the investment results of an index composed of developed and emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed and emerging equity markets, as represented by the MSCI ACWI Minimum Volatility (USD) Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 16.70%, net of fees, while the total return for the Index was 16.53%.

Lower volatility stocks worldwide, as represented by the Index, achieved double-digit gains for the reporting period.

The United States, the largest country weighting at an average of 51% of the Index, produced positive absolute returns and was the largest contributor by far to Index performance. The continued low-interest-rate environment, improving economic growth (as measured by GDP growth), and improving consumer sentiment all contributed to stock market strength.

Canada was also a notable contributor to Index returns. Representing 9% of the Index on average during the reporting period, the Canadian market generated strong absolute gains amid resurgence among energy and gold mining stocks.

Japan, which accounted for an average of 13% of the Index, achieved solid results and contributed meaningfully to Index results, despite volatility during the reporting period. Japan’s Nikkei Index delivered outsized gains early in the reporting period, helped by government initiatives aimed at revitalizing the country’s stagnant economy. During the remainder of the reporting period, however, Japanese stocks experienced considerable volatility amid conflicting economic data and the negative effects of an increased consumption tax.

Switzerland comprised an average of 6% of the Index during the reporting period. Despite uneven GDP growth throughout the reporting period, Switzerland benefited from a widening trade surplus and increasing foreign investment. The Swiss equity market achieved healthy gains and contributed meaningfully to Index returns.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector	Percentage of Total Investments*
Financials		16.77	%
Health Care		15.76
Consumer Staples		14.04
Consumer Discretionary		11.50
Industrials		9.17
Telecommunication Services		8.81
Utilities		8.24
Information Technology		7.54
Energy		5.20
Materials		2.97

TOTAL		100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 8/31/14


Country	Percentage of Total Investments*
United States		50.02	%
Japan		12.31
Canada		9.13
Switzerland		5.91
China		4.93
Taiwan		3.83
Hong Kong		3.19
United Kingdom		2.80
Singapore		1.46
Malaysia		1.32

TOTAL		94.90	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS EMEA ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		9.61%		9.67%		9.98%		9.61%		9.67%		9.98%
Since Inception		3.11%		3.59%		3.55%		8.35%		9.67%		9.55%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/18/12. The first day of secondary market trading was 1/19/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,060.10	$	2.54	$	1,000.00	$	1,022.70	$	2.50		0.49%


8		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS EMEA ETF

The iShares MSCI Emerging Markets EMEA ETF (the “Fund”) seeks to track the investment results of an index composed of European, Middle Eastern and African emerging market equities, as represented by the MSCI Emerging Markets EMEA Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 9.61%, net of fees, while the total return for the Index was 9.98%.

As represented by the Index, equities of emerging market countries in Europe, the Middle East, and Africa advanced modestly for the reporting period, although the group underperformed the broad emerging markets.

The key drivers of underperformance in these emerging markets were expectations of Fed policy and geopolitical conflict. In the past several years, emerging markets have benefited from investors seeking higher yielding alternatives in a low-interest rate environment. During the reporting period, expectations of the Fed tapering its quantitative easing program drove many investors away from emerging market holdings, particularly in early 2014. In addition, political unrest among some emerging markets compounded investor aversion to certain emerging markets.

South African equities, which comprised an average of 42% of the Index during the reporting period, generated strong returns despite uneven economic activity. Following healthy GDP growth of 3.8% in the fourth quarter of 2013, GDP contracted in the first quarter of 2014 and then gained only 0.6% in the second quarter of 2014. A five-month strike in the country’s platinum mines helped curb economic growth.

During the reporting period, Russian equities accounted for an average of 31% of the Index. Russian equities as a group declined during the reporting period, which contributed to the Index’s relative underperformance. Western countries imposed sanctions on Russia beginning in the spring of 2014, including restricting access to western financial markets, due to Russia’s role in the Ukraine crisis. Russia, in turn, imposed bans on food imports from a number of western countries. As a result, economic conditions slowed to near-recession levels in Russia, with the country’s GDP shrinking 0.3% during the second quarter of 2014.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector	Percentage of Total Investments*
Financials		33.37	%
Energy		20.52
Consumer Discretionary		12.21
Telecommunication Services		10.73
Materials		8.49
Consumer Staples		5.61
Industrials		3.64
Health Care		2.84
Utilities		2.59

TOTAL		100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 8/31/14


Country	Percentage of Total Investments*
South Africa		42.42	%
Russia		25.69
Turkey		9.26
Poland		8.97
Greece		3.91
Qatar		3.22
United Arab Emirates		3.04
Czech Republic		1.23
Egypt		1.18
Hungary		1.08

TOTAL		100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI FRONTIER 100 ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		28.56%		27.73%		29.55%		28.56%		27.73%		29.55%
Since Inception		24.91%		25.52%		25.57%		54.97%		56.47%		56.49%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 9/12/12. The first day of secondary market trading was 9/13/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period ^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period ^a		Annualized Expense Ratio
$	1,000.00	$	1,123.40	$	4.23	$	1,000.00	$	1,021.20	$	4.02		0.79%


10		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI FRONTIER 100 ETF

The iShares MSCI Frontier 100 ETF (the “Fund”) seeks to track the investment results of an index composed of frontier market equities, as represented by the MSCI Frontier Markets 100 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 28.56%, net of fees, while the total return for the Index was 29.55%.

Frontier markets, as represented by the Index, experienced strong gains during the reporting period and outpaced the performance of broader international markets.

Kuwait’s equity market contributed positively to Index results. Holding the sixth largest proven oil reserves in the world, Kuwait is the tenth largest producer of oil and the eighth largest exporter of oil. During the reporting period, export levels declined, largely due to lower oil prices as a result of increased supply in non-OPEC countries. Kuwait’s economic growth, as measured by annual GDP, expanded only 0.82% for 2013.

Nigeria’s equity market also contributed to Index performance. In April of 2014, Nigeria’s National Bureau of Statistics revised its GDP methodology, basing GDP on production patterns in 2010 and increasing the number of industries it measures, with greater emphasis given to industries such as telecommunications and financial services. As a result, Nigeria surpassed South Africa as the largest economy on the African continent.

Argentina’s equity market outpaced most global markets during the reporting period, as investors flocked to high-yielding companies, particularly those backed by the government. Late in the reporting period, however, Argentina defaulted on certain of its sovereign debt as negotiations with U.S. hedge funds failed to reach resolution.

Qatar’s equities contributed meaningfully to Index gains. The Qatar economy, as measured by annualized GDP, grew 6.2% in the first quarter of 2014, the most recent quarter for which data is available. The country’s successful bid in 2010 to host the 2022 FIFA World Cup continued to drive sizable infrastructure projects, estimated at $200 billion and including new roads, a new rail and metro system, and new airport.

In May 2014, the global index provider MSCI upgraded both Qatar and its neighbor, United Arab Emirates, from frontier market status to emerging market status. The upgrade created the potential for higher capital flows and greater access to funds from around the world. Indeed, in anticipation of the shift, investment dollars flowed into the two markets, lifting stock prices.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	53.68	%
Telecommunication Services	14.07
Energy	12.60
Consumer Staples	6.87
Industrials	6.82
Materials	4.10
Utilities	1.01
Health Care	0.85

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 8/31/14


Country		Percentage of Total Investments*


Kuwait	23.16	%
Nigeria	14.29
Argentina	8.00
Qatar	7.98
United Arab Emirates	7.56
Pakistan	7.18
Kenya	5.47
Oman	5.26
Kazakhstan	4.75
Morocco	3.84

TOTAL	87.49	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI WORLD ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.07%		18.51%		21.10%		21.07%		18.51%		21.10%
Since Inception		17.69%		17.75%		17.59%		53.74%		53.95%		53.39%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/10/12. The first day of secondary market trading was 1/12/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period ^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period ^a		Annualized Expense Ratio
$	1,000.00	$	1,055.80	$	1.24	$	1,000.00	$	1,024.00	$	1.22		0.24%


12		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI WORLD ETF

The iShares MSCI World ETF (the “Fund”) seeks to track the investment results of an index composed of developed market equities, as represented by the MSCI World Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 21.07%, net of fees, while the total return for the Index was 21.10%.

Global stocks, as represented by the Index, achieved strong gains for the reporting period. Equity markets faced challenges throughout the reporting period, however, keeping volatility levels high.

The United States, the largest country weighting at an average of 55% of the Index, produced strong positive absolute returns and was the largest contributor by far to Index performance. The continued low-interest-rate environment, improving economic growth (as measured by GDP growth), and improving consumer sentiment all contributed to stock market strength, resulting in strong returns for United States equities.

United Kingdom equities, which represented an average of 9% of the Index, delivered sound gains and contributed notably to Index results. The country’s GDP growth continued its positive trajectory throughout the reporting period, exceeding its pre-recession peak from 2008 in the second quarter of 2014, as the services and production sectors improved.

Japanese equities, which accounted for an average 8% of the Index, achieved modestly positive results and contributed to Index performance despite volatility during the reporting period. Japan’s Nikkei Index delivered outsized gains early in the reporting period, helped by government initiatives aimed at revitalizing the country’s stagnant economy. During the remainder of the reporting period, however, Japanese stocks experienced considerable volatility amid conflicting economic data and the negative effects of an increased consumption tax.

Canada was a notable contributor to Index returns. Representing 4% of the Index on average during the reporting period, the Canadian market generated strong absolute gains amid resurgence among energy and gold mining stocks.

France and Germany each represented 4% of the Index on average during the reporting period. Both markets achieved solid returns and contributed to positive Index results, despite uneven levels of economic recovery in both countries.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector	Percentage of Total Investments*
Financials		20.80	%
Information Technology		12.88
Health Care		12.06
Consumer Discretionary		11.83
Industrials		10.78
Energy		9.73
Consumer Staples		9.47
Materials		5.67
Telecommunication Services		3.46
Utilities		3.31
		0.01

TOTAL		100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 8/31/14


Country	Percentage of Total Investments*
United States		55.80	%
United Kingdom		8.57
Japan		8.08
Canada		4.38
France		3.91
Switzerland		3.73
Germany		3.47
Australia		3.30
Spain		1.45
Hong Kong		1.22

TOTAL		93.91	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

About Fund Performance

Shareholder Expenses


14		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value
COMMON STOCKS — 99.28%

CANADA — 9.09%
Agnico-Eagle Mines Ltd.		111,078	$	4,257,777
Bank of Montreal		64,452		4,970,781
Bank of Nova Scotia		98,281		6,527,000
Barrick Gold Corp.		36,637		675,154
BCE Inc.		172,331		7,776,541
Bell Aliant Inc.^a		50,545		1,437,486
Canadian Imperial Bank of Commerce		46,034		4,409,673
Dollarama Inc.		44,531		3,800,170
Enbridge Inc.		270,811		13,538,678
Fairfax Financial Holdings Ltd.		5,627		2,598,924
First Capital Realty Inc.		63,137		1,124,505
Franco-Nevada Corp.		36,825		2,079,649
Goldcorp Inc.		179,660		5,056,483
H&R Real Estate Investment Trust		34,946		745,150
Intact Financial Corp.		88,509		6,030,606
National Bank of Canada		214,241		10,331,364
Pembina Pipeline Corp.		118,767		5,471,110
RioCan Real Estate Investment Trust		66,896		1,670,627
Shaw Communications Inc. Class B		260,099		6,567,515
TELUS Corp. NVS		121,856		4,454,105
Thomson Reuters Corp.		58,626		2,226,680
Tim Hortons Inc.		80,991		6,525,571
TransCanada Corp.		265,549		14,303,783

				116,579,332
CHILE — 0.20%
Banco de Chile		16,360,744		1,996,542
Empresa Nacional de Electricidad SA		411,768		629,098

				2,625,640
CHINA — 4.91%
Bank of China Ltd. Class H		7,144,000		3,318,439
Beijing Capital International Airport Co. Ltd. Class H		728,000		569,238
Beijing Enterprises Holdings Ltd.		376,000		3,240,815
China Communications Services Corp. Ltd. Class H		1,128,000		544,341
China Construction Bank Corp. Class H		8,446,000		6,277,164


Security	Shares		Value
China Gas Holdings Ltd.		752,000	$	1,339,019
China Mengniu Dairy Co. Ltd.		376,000		1,744,121
China Mobile Ltd.		1,222,000		15,199,809
China Resources Gas Group Ltd.^a		752,000		2,188,035
China Resources Power Holdings Co. Ltd.		376,000		1,137,681
China Unicom (Hong Kong) Ltd.		1,128,000		2,011,440
Guangdong Investment Ltd.		1,128,000		1,363,762
Haier Electronics Group Co. Ltd.^a		376,000		1,086,740
Hanergy Solar Group Ltd.^a		4,112,000		673,824
Hengan International Group Co. Ltd.		282,000		3,007,335
Industrial and Commercial Bank of China Ltd. Class H		1,692,000		1,122,156
Jiangsu Expressway Co. Ltd. Class H		752,000		856,778
Kunlun Energy Co. Ltd.^a		1,128,000		1,862,983
Lenovo Group Ltd.^a		1,504,000		2,297,680
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		468,700		961,572
Shenzhou International Group Holdings Ltd.^a		376,000		1,171,642
Sihuan Pharmaceutical Holdings Group Ltd.^a		2,243,000		1,502,057
Sino Biopharmaceutical Ltd.		2,256,000		2,078,391
Sinopharm Group Co. Ltd. Class H		220,800		770,648
SOHO China Ltd.^a		934,000		764,058
Sun Art Retail Group Ltd.^a		1,592,000		1,900,092
Tingyi (Cayman Islands) Holding Corp.		752,000		2,110,411
Yuexiu Property Co. Ltd.^a		3,760,000		805,352
Zhejiang Expressway Co. Ltd. Class H		1,104,000		1,098,281

				63,003,864
COLOMBIA — 0.10%
Corporacion Financiera Colombiana SA NVS		32,502		692,920
Ecopetrol SA		328,886		570,015

				1,262,935
CZECH REPUBLIC — 0.06%
O2 Czech Republic AS		52,674		740,011

				740,011


SCHEDULES OF INVESTMENTS			15

Schedule of Investments (Continued)

iSHARES^® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value
EGYPT — 0.08%
Commercial International Bank (Egypt) SAE		151,888	$	981,636

				981,636
FRANCE — 0.21%
Iliad SA		12,205		2,687,979

				2,687,979
GERMANY — 0.43%
Fresenius Medical Care AG & Co. KGaA		23,481		1,659,969
Kabel Deutschland Holding AG		13,332		1,886,042
MAN SE		16,339		1,942,337

				5,488,348
HONG KONG — 3.17%
Cheung Kong Infrastructure Holdings Ltd.		376,000		2,714,425
CLP Holdings Ltd.		1,128,000		9,547,789
Hang Seng Bank Ltd.		506,300		8,551,405
Hong Kong and China Gas Co. Ltd. (The)^a		204,600		464,103
Link REIT (The)		1,504,000		8,926,795
MTR Corp. Ltd.		1,034,000		4,102,566
Power Assets Holdings Ltd.		564,000		5,137,759
Swire Pacific Ltd. Class A^a		94,000		1,265,033

				40,709,875
INDONESIA — 0.69%
PT Bank Central Asia Tbk		4,418,000		4,230,100
PT Jasa Marga (Persero) Tbk		1,466,400		777,233
PT Kalbe Farma Tbk		8,738,100		1,240,030
PT Telekomunikasi Indonesia (Persero) Tbk		4,396,700		1,001,685
PT Tower Bersama Infrastructure Tbk		1,032,500		695,100
PT XL Axiata Tbk		1,859,500		945,845

				8,889,993
IRELAND — 0.20%
Kerry Group PLC Class A		20,098		1,515,584
Ryanair Holdings PLC SP ADR^b		18,464		1,013,674

				2,529,258
ISRAEL — 0.56%
Bank Leumi le-Israel BM^a,b		167,823		656,073
NICE Systems Ltd.		39,456		1,526,979


Security	Shares		Value
Teva Pharmaceutical Industries Ltd.		96,026	$	5,010,661

				7,193,713
JAPAN — 12.25%
ABC-MART Inc.		18,800		964,567
Ajinomoto Co. Inc.		54,000		879,251
ANA Holdings Inc.^a		740,000		1,801,473
Aozora Bank Ltd.		564,000		1,927,323
Astellas Pharma Inc.		186,800		2,693,617
Bank of Yokohama Ltd. (The)		188,000		1,038,221
Benesse Holdings Inc.		37,600		1,333,744
Calbee Inc.		56,400		1,949,040
Chugai Pharmaceutical Co. Ltd.		75,200		2,385,176
Chugoku Bank Ltd. (The)		111,600		1,690,893
East Japan Railway Co.		18,800		1,462,775
Eisai Co. Ltd.		150,400		6,291,218
FamilyMart Co. Ltd.		37,600		1,578,053
Hikari Tsushin Inc.		18,800		1,169,062
Hisamitsu Pharmaceutical Co. Inc.		37,600		1,494,807
ITOCHU Techno-Solutions Corp.		18,800		836,983
Japan Airlines Co. Ltd.		40,100		2,258,122
Japan Prime Realty Investment Corp.		564		2,076,623
Japan Real Estate Investment Corp.		376		2,070,289
Japan Retail Fund Investment Corp.		1,492		3,133,796
Kamigumi Co. Ltd.		188,000		1,751,783
Keio Corp.		188,000		1,453,184
Kintetsu Corp.		188,000		660,538
Kyowa Hakko Kirin Co. Ltd.		188,000		2,551,668
Lawson Inc.		37,600		2,703,682
M3 Inc.		55,200		966,538
McDonald’s Holdings Co. (Japan) Ltd.^a		37,600		928,373
Miraca Holdings Inc.		37,600		1,751,783
Mitsubishi Tanabe Pharma Corp.		168,000		2,574,539
Nagoya Railroad Co. Ltd.		376,000		1,556,336
Nippon Building Fund Inc.		188		1,047,812
Nippon Prologis REIT Inc.		928		2,256,464
Nippon Telegraph and Telephone Corp.		37,600		2,526,332
Nissin Foods Holdings Co. Ltd.		37,600		2,157,155


16		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value
Nitori Holdings Co. Ltd.		37,600	$	2,258,497
Nomura Research Institute Ltd.		56,400		1,783,453
NTT DOCOMO Inc.		694,200		12,018,277
Odakyu Electric Railway Co. Ltd.		188,000		1,856,745
Oracle Corp. Japan		25,500		1,040,766
Oriental Land Co. Ltd.		37,600		7,327,449
Osaka Gas Co. Ltd.		564,000		2,323,646
Otsuka Corp.		15,900		674,968
Otsuka Holdings Co. Ltd.		244,400		8,897,539
PARK24 Co. Ltd.		74,000		1,289,310
Rakuten Inc.		55,200		715,206
Sankyo Co. Ltd.		18,800		721,163
Santen Pharmaceutical Co. Ltd.		56,400		3,257,448
Secom Co. Ltd.		94,000		5,753,920
Shimamura Co. Ltd.		18,800		1,697,492
Suntory Beverage & Food Ltd.		75,200		2,761,592
Suzuken Co. Ltd.		56,400		1,881,176
Takeda Pharmaceutical Co. Ltd.		244,400		11,174,857
Tobu Railway Co. Ltd.		752,000		3,945,132
Toho Co. Ltd.		74,000		1,715,994
Tokyo Gas Co. Ltd.		188,000		1,069,348
TonenGeneral Sekiyu K.K.		188,000		1,717,399
Unicharm Corp.		18,800		1,236,202
United Urban Investment Corp.		1,680		2,713,616
USS Co. Ltd.		149,200		2,463,089
West Japan Railway Co.		112,800		5,342,758
Yamato Holdings Co. Ltd.		243,200		5,032,087
Yamazaki Baking Co. Ltd.		48,000		632,546

				157,222,895
LUXEMBOURG — 0.21%
Altice SA^a,b		42,300		2,707,874

				2,707,874
MALAYSIA — 1.31%
Axiata Group Bhd		600,300		1,319,822
Hong Leong Bank Bhd		131,600		601,218
IHH Healthcare Bhd		1,633,900		2,529,642
Malayan Banking Bhd		864,800		2,771,091
Maxis Bhd		1,314,500		2,731,591
Petronas Dagangan Bhd		92,800		591,777
Public Bank Bhd		803,460		4,914,565
Telekom Malaysia Bhd		656,600		1,324,866

				16,784,572


Security	Shares		Value
NEW ZEALAND — 0.13%
Auckland International Airport Ltd.		558,738	$	1,716,531

				1,716,531
PERU — 0.17%
Compania de Minas Buenaventura SA SP ADR		106,551		1,551,383
Credicorp Ltd.		3,935		610,200

				2,161,583
PHILIPPINES — 0.44%
Bank of the Philippine Islands		520,489		1,134,093
BDO Unibank Inc.		674,590		1,400,239
International Container Terminal Services Inc.		341,940		885,436
Philippine Long Distance Telephone Co.		28,200		2,231,422

				5,651,190
QATAR — 0.27%
Ooredoo QSC		15,323		481,000
Qatar National Bank SAQ		54,227		3,008,309

				3,489,309
RUSSIA — 0.11%
Alrosa AO		1,233,100		1,445,142

				1,445,142
SINGAPORE — 1.45%
ComfortDelGro Corp. Ltd.		1,304,000		2,622,733
Oversea-Chinese Banking Corp. Ltd.		376,000		3,012,941
Singapore Airlines Ltd.^a		376,000		3,043,071
Singapore Press Holdings Ltd.^a		1,030,000		3,425,217
Singapore Technologies Engineering Ltd.		376,000		1,102,737
Singapore Telecommunications Ltd.^a		1,316,000		4,102,119
StarHub Ltd.^a		376,000		1,250,371

				18,559,189
SOUTH KOREA — 0.40%
Dongbu Insurance Co. Ltd.		28,556		1,723,583
Samsung Fire & Marine Insurance Co. Ltd.		6,534		1,788,239
Samsung Life Insurance Co. Ltd.		7,144		750,369
Yuhan Corp.		4,900		836,037

				5,098,228


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value
SWITZERLAND — 5.88%
Barry Callebaut AG Registered		1,492	$	1,832,724
Givaudan SA Registered^b		5,627		9,363,485
Kuehne & Nagel International AG Registered		5,627		760,015
Lindt & Spruengli AG Registered		68		4,271,114
Nestle SA Registered		191,688		14,912,671
Novartis AG Registered		194,319		17,472,479
Partners Group Holding AG		6,942		1,835,838
Roche Holding AG Genusschein		18,783		5,490,210
Schindler Holding AG Registered		14,272		2,080,376
SGS SA Registered		2,444		5,435,855
Swiss Prime Site AG Registered^b		38,516		3,082,626
Swisscom AG Registered		15,400		8,962,385

				75,499,778
TAIWAN — 3.82%
Advanced Semiconductor Engineering Inc.		740,000		922,199
Advantech Co. Ltd.		188,000		1,764,240
Chang Hwa Commercial Bank Ltd.		3,248,096		2,021,197
Chicony Electronics Co. Ltd.		188,930		619,432
China Development Financial Holding Corp.		2,620,000		885,298
Chunghwa Telecom Co. Ltd.		2,632,000		8,180,285
Far EasTone Telecommunications Co. Ltd.		928,000		1,977,672
First Financial Holding Co. Ltd.		5,014,232		3,103,437
Foxconn Technology Co. Ltd.		382,200		959,000
Hua Nan Financial Holdings Co. Ltd.		4,053,050		2,515,317
Kinsus Interconnect Technology Corp.		188,000		795,637
Lite-On Technology Corp.		1,311,261		2,173,700
MediaTek Inc.		188,760		3,154,367
SinoPac Financial Holdings Co. Ltd.		4,862,519		2,220,551
Taiwan Business Bank Ltd.^b		2,724,800		853,252
Taiwan Cooperative Financial Holding Co. Ltd.		3,935,062		2,198,543
Taiwan Mobile Co. Ltd.		1,128,000		3,596,407
Taiwan Semiconductor Manufacturing Co. Ltd.		2,444,000		10,138,874
Yulon Motor Co. Ltd.		552,000		886,436

				48,965,844


Security	Shares		Value
THAILAND — 0.39%
Advanced Information Service PCL NVDR		316,900	$	2,073,641
Airports of Thailand PCL NVDR		99,200		736,080
Bumrungrad Hospital PCL NVDR		240,800		1,017,784
PTT Exploration & Production PCL NVDR		240,800		1,240,188

				5,067,693
UNITED ARAB EMIRATES — 0.17%
DP World Ltd.		34,199		642,257
National Bank of Abu Dhabi PJSC		412,192		1,571,089

				2,213,346
UNITED KINGDOM — 2.79%
Babcock International Group PLC		205,220		3,820,580
British Sky Broadcasting Group PLC		342,605		4,970,048
Capita PLC		37,953		773,383
Compass Group PLC		371,270		6,039,462
GlaxoSmithKline PLC		216,684		5,306,102
Intertek Group PLC		56,747		2,639,733
Randgold Resources Ltd.		34,945		2,951,073
Reckitt Benckiser Group PLC		49,229		4,292,243
Royal Dutch Shell PLC Class B		31,374		1,326,316
Smith & Nephew PLC		57,686		999,214
SSE PLC		105,987		2,671,950

				35,790,104
UNITED STATES — 49.79%
3M Co.		5,627		810,288
Abbott Laboratories		226,269		9,557,603
Actavis PLC^b		2,996		680,032
Airgas Inc.		5,999		662,170
Alleghany Corp.^b		9,400		4,052,622
Altria Group Inc.		133,238		5,739,893
American Tower Corp.		34,758		3,427,139
American Water Works Co. Inc.		22,541		1,140,800
AmerisourceBergen Corp.		134,930		10,442,233
Amgen Inc.		23,293		3,246,578
Antero Resources Corp.^a,b		9,761		564,674
Arch Capital Group Ltd.^b		89,072		4,950,622
AT&T Inc.		146,019		5,104,824
Automatic Data Processing Inc.		230,592		19,249,820
AutoZone Inc.^a,b		18,031		9,715,824


18		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value
Becton, Dickinson and Co.		67,835	$	7,948,227
Bed Bath & Beyond Inc.^a,b		13,520		868,795
Berkshire Hathaway Inc. Class B^b		35,133		4,822,004
Bristol-Myers Squibb Co.		127,601		6,462,991
C.H. Robinson Worldwide Inc.		13,896		948,541
C.R. Bard Inc.		40,396		5,996,382
Chevron Corp.		5,627		728,415
Chubb Corp. (The)		87,381		8,034,683
Church & Dwight Co. Inc.		91,704		6,257,881
Clorox Co. (The)		72,722		6,443,169
Coca-Cola Co. (The)		110,686		4,617,820
Colgate-Palmolive Co.		188,306		12,189,047
Consolidated Edison Inc.		195,071		11,292,660
Costco Wholesale Corp.		9,761		1,181,862
Crown Castle International Corp.		44,531		3,540,660
DaVita HealthCare Partners Inc.^b		23,857		1,781,641
Dollar General Corp.^b		117,263		7,503,659
Dollar Tree Inc.^b		56,747		3,043,058
Dominion Resources Inc.		128,728		9,039,280
Duke Energy Corp.		133,614		9,886,100
Ecolab Inc.		70,654		8,112,492
Eli Lilly and Co.		153,160		9,734,850
Everest Re Group Ltd.		31,375		5,140,480
Exxon Mobil Corp.		121,962		12,130,341
Family Dollar Stores Inc.		68,963		5,505,316
Federal Realty Investment Trust		42,463		5,298,533
General Mills Inc.		325,502		17,375,297
Genuine Parts Co.		16,340		1,433,672
Health Care REIT Inc.		65,768		4,444,601
Henry Schein Inc.^b		26,676		3,192,850
Hershey Co. (The)		57,686		5,273,654
Hormel Foods Corp.		96,590		4,895,181
Intel Corp.		54,491		1,902,826
International Business Machines Corp.		34,570		6,647,811
Intuit Inc.		72,534		6,033,378
J.B. Hunt Transport Services Inc.		27,428		2,072,185
J.M. Smucker Co. (The)		29,683		3,045,476
Johnson & Johnson		181,539		18,831,041
Kellogg Co.		145,079		9,425,783
Kimberly-Clark Corp.		110,686		11,954,088
Kinder Morgan Inc.		115,760		4,660,498
Kinder Morgan Management LLC^a,b		69,203		6,762,517


Security	Shares		Value
Laboratory Corp. of America Holdings^b		50,545	$	5,419,940
Marsh & McLennan Companies Inc.		187,178		9,939,152
McCormick & Co. Inc. NVS		78,548		5,474,010
McDonald’s Corp.		178,224		16,703,153
McKesson Corp.		13,896		2,710,137
Merck & Co. Inc.		196,762		11,827,364
Microsoft Corp.		97,342		4,422,247
Motorola Solutions Inc.		59,378		3,527,053
Newmont Mining Corp.		25,924		702,281
NextEra Energy Inc.		13,896		1,368,061
O’Reilly Automotive Inc.^b		40,020		6,242,320
OGE Energy Corp.		17,279		648,308
PartnerRe Ltd.		30,999		3,462,278
Patterson Companies Inc.		23,105		930,438
Paychex Inc.		218,375		9,095,319
People’s United Financial Inc.		211,047		3,155,153
PepsiCo Inc.		122,338		11,315,042
Perrigo Co. PLC		12,769		1,899,261
PetSmart Inc.		49,793		3,563,685
Pfizer Inc.		157,295		4,622,900
PG&E Corp.		229,464		10,665,487
Procter & Gamble Co. (The)		137,749		11,448,319
Public Storage		4,687		821,069
QUALCOMM Inc.		114,633		8,723,571
Range Resources Corp.		12,204		959,112
RenaissanceRe Holdings Ltd.^a		27,428		2,808,353
Republic Services Inc.		92,831		3,651,043
Reynolds American Inc.		19,722		1,153,145
Ross Stores Inc.		68,775		5,187,011
SBA Communications Corp. Class A^b		25,736		2,838,423
SCANA Corp.		15,302		794,786
Sherwin-Williams Co. (The)		4,875		1,063,286
Southern Co. (The)		383,011		17,005,688
Southwest Airlines Co.		120,084		3,843,889
Starbucks Corp.		57,123		4,444,741
Stericycle Inc.^b		57,348		6,815,810
Synopsys Inc.^b		103,732		4,242,639
Sysco Corp.		24,233		916,734
Target Corp.		120,647		7,247,265
TJX Companies Inc. (The)		200,333		11,941,850
Travelers Companies Inc. (The)		58,062		5,499,052


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI ALL COUNTRY WORLD MINIMUM VOLATILITY ETF

August 31, 2014


Security	Shares		Value
Union Pacific Corp.		46,597	$	4,905,266
United Parcel Service Inc. Class B		61,445		5,980,442
UnitedHealth Group Inc.		37,389		3,240,879
Verisk Analytics Inc. Class A^b		90,576		5,814,074
Verizon Communications Inc.		285,659		14,231,531
Visa Inc. Class A		14,648		3,112,993
W.R. Berkley Corp.		73,474		3,552,468
Wal-Mart Stores Inc.		147,522		11,137,911
Waste Management Inc.		176,653		8,297,391
Wisconsin Energy Corp.		149,777		6,789,391
Xcel Energy Inc.		186,613		5,980,947
Yum! Brands Inc.		11,265		815,924

				638,763,459

TOTAL COMMON STOCKS
(Cost: $1,098,989,276)				1,273,829,321

PREFERRED STOCKS — 0.25%

COLOMBIA — 0.25%
Banco Davivienda SA		59,378		987,338
Grupo Aval Acciones y Valores SA		1,000,583		748,436
Grupo de Inversiones Suramericana SA		64,452		1,464,780

				3,200,554

TOTAL PREFERRED STOCKS
(Cost: $2,763,520)				3,200,554

RIGHTS — 0.01%

SINGAPORE — 0.01%
Oversea-Chinese Banking Corp. Ltd.^b		47,000		88,505

				88,505

TOTAL RIGHTS
(Cost: $0)				88,505

SHORT-TERM INVESTMENTS — 2.85%

MONEY MARKET FUNDS — 2.85%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		34,387,455		34,387,455


Security	Shares		Value
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		2,164,784	$	2,164,784

				36,552,239

TOTAL SHORT-TERM INVESTMENTS
(Cost: $36,552,239)				36,552,239

TOTAL INVESTMENTS IN SECURITIES — 102.39%
(Cost: $1,138,305,035)				1,313,670,619
Other Assets, Less Liabilities — (2.39)%				(30,658,155	)

NET ASSETS — 100.00%			$	1,283,012,464

NVDR — Non-Voting Depositary Receipts

NVS — Non-Voting Shares

SP ADR — Sponsored American Depositary Receipts

^a	All or a portion of this security represents a security on loan. See Note 1.

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


20		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS EMEA ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 98.52%

CZECH REPUBLIC — 1.23%
CEZ AS		2,202	$	64,014
Komercni Banka AS		208		48,374
O2 Czech Republic AS		1,076		15,116

				127,504
EGYPT — 1.17%
Commercial International Bank (Egypt) SAE SP GDR		13,600		86,360
Global Telecom Holding SAE GDR^a		9,770		35,055

				121,415
GREECE — 3.91%
Alpha Bank AE^a		52,730		46,258
Eurobank Ergasias SA^a		110,624		47,066
Folli Follie Group^a		460		19,086
Hellenic Telecommunications Organization SA^a		3,408		48,840
Jumbo SA^a		1,420		20,949
National Bank of Greece SA^a		21,966		75,517
OPAP SA		3,046		48,507
Piraeus Bank SA^a		29,262		57,816
Public Power Corp. SA^a		1,620		23,579
Titan Cement Co. SA		640		17,113

				404,731
HUNGARY — 1.08%
MOL Hungarian Oil and Gas PLC		570		28,085
OTP Bank PLC		3,066		53,001
Richter Gedeon Nyrt		1,916		30,834

				111,920
POLAND — 8.95%
Alior Bank SA^a		640		15,255
Bank Handlowy w Warszawie SA		454		16,258
Bank Millennium SA		5,792		14,546
Bank Pekao SA		1,796		101,165
Bank Zachodni WBK SA		392		45,424
Cyfrowy Polsat SA		2,422		19,384
ENEA SA		3,070		14,403
Energa SA		2,754		17,959
Eurocash SA		1,156		12,473
Getin Noble Bank SA^a		16,582		13,484
Grupa Azoty SA		690		16,131
Grupa Lotos SA^a		886		8,352
Jastrzebska Spolka Weglowa SA^a		736		7,707


Security	Shares		Value

KGHM Polska Miedz SA		1,910	$	78,733
LPP SA		11		29,243
mBank SA		202		29,283
Orange Polska SA		8,950		30,063
Polska Grupa Energetyczna SA		11,476		78,281
Polski Koncern Naftowy Orlen SA		4,376		53,965
Polskie Gornictwo Naftowe i Gazownictwo SA		24,144		36,850
Powszechna Kasa Oszczednosci Bank Polski SA		11,936		142,791
Powszechny Zaklad Ubezpieczen SA		766		112,360
Synthos SA		7,360		10,589
Tauron Polska Energia SA		14,622		22,820

				927,519
QATAR — 3.21%
Barwa Real Estate Co.		1,328		14,260
Commercial Bank of Qatar QSC (The)		538		10,062
Doha Bank QSC		468		7,840
Industries Qatar QSC		1,074		57,074
Masraf Al Rayan QSC		5,014		71,605
Ooredoo QSC		1,114		34,969
Qatar Electricity & Water Co. QSC		382		17,940
Qatar Islamic Bank SAQ		768		25,100
Qatar National Bank SAQ		1,242		68,902
Vodafone Qatar QSC		4,702		24,974

				332,726
RUSSIA — 24.35%
Alrosa AO		25,200		29,533
Gazprom OAO		161,460		575,335
LUKOIL OAO		6,962		387,556
Magnit OJSC SP GDR^b		3,548		206,494
MegaFon OAO SP GDR^b		1,270		35,941
MMC Norilsk Nickel OJSC		756		148,767
Mobile TeleSystems OJSC SP ADR		7,046		129,999
Moscow Exchange MICEX-RTS OJSC		18,080		30,348
NovaTek OAO SP GDR^b		1,242		124,945
Rosneft Oil Co. OJSC		15,900		98,088
Rostelecom OJSC		10,920		29,046
RusHydro OJSC		1,546,000		28,672
Sberbank of Russia		147,220		289,703
Severstal OAO		2,860		27,527
Sistema JSFC SP GDR^b		2,304		52,416
Surgutneftegas OJSC		98,000		68,694
Tatneft OAO Class S		19,320		119,821


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS EMEA ETF

August 31, 2014


Security	Shares		Value

Uralkali OJSC		18,020	$	66,553
VTB Bank OJSC		70,920,000		73,058

				2,522,496
SOUTH AFRICA — 42.34%
African Bank Investments Ltd.^c,d		19,726		19
African Rainbow Minerals Ltd.		1,506		25,722
Anglo American Platinum Ltd.^a		736		30,664
AngloGold Ashanti Ltd.^a		5,502		93,662
Aspen Pharmacare Holdings Ltd.		4,358		125,244
Assore Ltd.		486		14,382
Barclays Africa Group Ltd.		4,626		72,456
Barloworld Ltd.		3,054		29,106
Bidvest Group Ltd.		4,292		113,529
Brait SE^a		4,582		34,126
Coronation Fund Managers Ltd.		3,102		29,167
Discovery Ltd.		4,440		40,975
Exxaro Resources Ltd.		1,952		27,692
FirstRand Ltd.		42,296		172,001
Foschini Group Ltd. (The)		2,726		29,507
Gold Fields Ltd.		10,568		50,091
Growthpoint Properties Ltd.		29,608		70,155
Harmony Gold Mining Co. Ltd.^a		5,322		16,128
Impala Platinum Holdings Ltd.		7,362		66,626
Imperial Holdings Ltd.		2,542		45,460
Investec Ltd.		3,280		29,668
Kumba Iron Ore Ltd.		896		26,833
Liberty Holdings Ltd.		1,550		19,031
Life Healthcare Group Holdings Ltd.		12,794		53,869
Massmart Holdings Ltd.		1,510		18,567
Mediclinic International Ltd.		5,076		44,138
MMI Holdings Ltd.		13,918		35,975
Mr. Price Group Ltd.		3,256		62,668
MTN Group Ltd.		22,984		520,908
Nampak Ltd.		8,256		33,108
Naspers Ltd. Class N		5,402		688,504
Nedbank Group Ltd.		2,804		60,296
Netcare Ltd.		13,090		39,755
Northam Platinum Ltd.^a		4,885		19,613
Pick n Pay Stores Ltd.		3,340		17,744
PPC Ltd.		7,458		23,218
Rand Merchant Insurance Holdings Ltd.		9,296		29,456
Redefine Properties Ltd.		45,858		41,221
Remgro Ltd.		6,562		150,239
RMB Holdings Ltd.		9,628		50,677


Security	Shares		Value

Sanlam Ltd.		24,872	$	154,348
Sappi Ltd.^a		7,386		30,557
Sasol Ltd.		7,540		438,331
Shoprite Holdings Ltd.		6,226		86,318
SPAR Group Ltd. (The)		2,244		27,507
Standard Bank Group Ltd.		16,578		215,108
Steinhoff International Holdings Ltd.		28,722		141,809
Tiger Brands Ltd.		2,226		64,255
Truworths International Ltd.		5,170		36,167
Vodacom Group Ltd.		5,074		61,234
Woolworths Holdings Ltd.		10,464		78,179

				4,386,013
TURKEY — 9.24%
Akbank TAS		24,552		93,750
Anadolu Efes Biracilik ve Malt Sanayii AS^a		2,828		37,611
Arcelik AS		3,288		19,731
BIM Birlesik Magazalar AS		2,900		68,268
Coca-Cola Icecek AS		1,062		25,099
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		25,916		32,666
Enka Insaat ve Sanayi AS		6,508		16,316
Eregli Demir ve Celik Fabrikalari TAS		19,096		37,166
Ford Otomotiv Sanayi AS^a		976		12,890
Haci Omer Sabanci Holding AS		12,524		58,037
KOC Holding AS		8,648		44,283
Koza Altin Isletmeleri AS		672		7,240
TAV Havalimanlari Holding AS		2,210		18,383
Tofas Turk Otomobil Fabrikasi AS		1,738		10,712
Turk Hava Yollari AO^a		7,676		24,366
Turk Telekomunikasyon AS		7,098		20,591
Turkcell Iletisim Hizmetleri AS^a		12,004		70,368
Turkiye Garanti Bankasi AS		31,508		123,670
Turkiye Halk Bankasi AS		8,526		62,623
Turkiye Is Bankasi AS Class C		21,474		55,527
Turkiye Petrol Rafinerileri AS		1,708		40,208
Turkiye Sise ve Cam Fabrikalari AS		8,195		11,089
Turkiye Vakiflar Bankasi TAO Class D		10,428		24,065
Ulker Biskuvi Sanayi AS		2,102		15,585
Yapi ve Kredi Bankasi AS^c		12,090		26,948

				957,192
UNITED ARAB EMIRATES — 3.04%
Abu Dhabi Commercial Bank PJSC		15,562		33,937
Aldar Properties PJSC		43,730		47,503


22		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS EMEA ETF

August 31, 2014


Security	Shares		Value

Arabtec Holding Co.^a		15,280	$	19,594
DP World Ltd.		2,264		42,518
Dubai Financial Market PJSC		27,810		25,743
Dubai Islamic Bank PJSC		7,148		15,199
Emaar Properties PJSC		24,414		68,129
First Gulf Bank PJSC		5,940		29,514
National Bank of Abu Dhabi PJSC		8,562		32,634

				314,771

TOTAL COMMON STOCKS
(Cost: $10,390,054)				10,206,287

PREFERRED STOCKS — 1.29%

RUSSIA — 1.29%
AK Transneft OAO		20		43,999
Sberbank of Russia		13,600		20,280
Surgutneftegas OJSC		95,000		69,916

				134,195

TOTAL PREFERRED STOCKS
(Cost: $142,335)				134,195

SHORT-TERM INVESTMENTS — 0.29%

MONEY MARKET FUNDS — 0.29%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^e,f,g		28,184		28,184
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		1,774		1,774

				29,958

TOTAL SHORT-TERM INVESTMENTS
(Cost: $29,958)				29,958

TOTAL INVESTMENTS IN SECURITIES — 100.10%
(Cost: $10,562,347)				10,370,440
Other Assets, Less Liabilities — (0.10)%				(10,864	)

NET ASSETS — 100.00%			$	10,359,576

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	All or a portion of this security represents a security on loan. See Note 1.

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

^e	Affiliated issuer. See Note 2.

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

^g	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			23

Schedule of Investments

iSHARES^® MSCI FRONTIER 100 ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.67%

ARGENTINA — 7.97%
Banco Macro SA SP ADR		300,330	$	10,490,527
BBVA Banco Frances SA SP ADR		354,474		3,753,880
Cresud SA SP ADR		160,317		1,789,138
Groupo Financiero Galicia SP ADR		684,837		8,683,733
Pampa Energia SA SP ADR^a		206,847		1,840,938
Petrobras Argentina SA Class B SP ADR		560,052		3,612,336
Telecom Argentina SA SP ADR		687,798		12,951,236
YPF SA SP ADR		623,502		20,600,506

				63,722,294
BAHRAIN — 0.27%
Al-Salam Bank		3,888,115		2,145,167

				2,145,167
BANGLADESH — 2.17%
GrameenPhone Ltd.		1,099,800		4,561,428
Islami Bank Bangladesh Ltd.		4,600,801		1,372,753
Lafarge Surma Cement Ltd.		2,030,000		2,789,873
Square Pharmaceuticals Ltd.		2,195,378		6,797,108
Titas Gas Transmission & Distribution Co. Ltd.		1,692,400		1,783,775

				17,304,937
ESTONIA — 0.18%
Tallink Group AS		1,565,581		1,464,150

				1,464,150
JORDAN — 0.75%
Arab Bank PLC		469,152		5,099,838
Jordan Phosphate Mines Co.^a		44,415		415,715
Jordan Telecommunications Co. PSC		107,074		468,595

				5,984,148
KAZAKHSTAN — 4.74%
Halyk Savings Bank of Kazakhstan JSC SP GDR^b		569,358		6,661,489
KazMunaiGaz Exploration Production JSC SP GDR^b		1,333,719		24,006,942
KCell JSC SP GDR^b		474,606		7,218,757

				37,887,188


Security	Shares		Value

KENYA — 5.45%
Co-operative Bank of Kenya Ltd. (The)		10,695,884	$	2,317,038
East African Breweries Ltd.		2,805,942		8,792,375
Equity Bank Ltd.		15,322,300		8,103,139
Kenya Commercial Bank Ltd.		18,252,160		11,872,163
Safaricom Ltd.		85,320,300		12,498,845

				43,583,560
KUWAIT — 23.08%
Agility Public Warehousing Co. KSC		4,420,023		13,358,706
Al-Qurain Petrochemicals Co.		1,206,396		1,081,114
ALAFCO Aviation Lease and Finance Co. KSCC		977,130		944,336
Burgan Bank SAK		3,727,048		6,941,963
Commercial Real Estate Co. KPSC		5,066,271		1,762,646
Gulf Bank KSC^a		8,445,322		10,091,054
Jazeera Airways		658,188		1,075,584
Kuwait Finance House		13,025,439		37,078,213
Kuwait International Bank KSCP		1,592,595		1,846,974
Kuwait Portland Cement Co.		79,429		379,629
Kuwait Projects Co. Holding KSCP		3,655,710		9,250,083
Mabanee Co. KPSC		2,462,283		9,345,513
Mobile Telecommunications Co. KSC		15,613,457		35,665,953
National Bank of Kuwait SAK		14,577,538		50,717,844
National Industries Group Holding KPSC^a		3,195,765		2,560,655
National Real Estate Co. KSC^a		1,687,770		925,293
Warba Bank KSCP^a		1,535,490		1,483,956

				184,509,516
MAURITIUS — 1.17%
MCB Group Ltd.		936,202		6,324,666
State Bank of Mauritius Ltd.		88,101,571		3,022,254

				9,346,920
MOROCCO — 3.83%
Attijariwafa Bank		218,691		8,427,164
Banque Centrale Populaire		147,848		3,393,517
Douja Promotion Groupe Addoha SA		1,321,452		7,975,162
Maroc Telecom SA		872,510		10,787,468

				30,583,311


24		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI FRONTIER 100 ETF

August 31, 2014


Security	Shares		Value

NIGERIA — 14.24%
Access Bank PLC		70,192,620	$	4,282,676
Afriland Properties PLC^a		7,291		98
Dangote Cement PLC		4,181,778		5,798,718
Diamond Bank PLC		36,284,094		1,364,064
Ecobank Transnational Inc.^a		27,913,869		2,907,336
FBN Holdings PLC		108,238,820		10,032,737
Guaranty Trust Bank PLC		98,219,754		18,099,166
Guinness Nigeria PLC		2,828,368		3,224,751
Lafarge Africa PLC		6,531,543		4,710,069
Nestle Nigeria PLC		1,769,009		11,774,387
Nigerian Breweries PLC		21,854,295		23,839,580
Oando PLC		12,505,149		2,115,533
SEPLAT Petroleum Development Co. PLC^a		606,582		2,542,067
Transnational Corp. of Nigeria PLC		90,993,222		3,420,798
Union Bank of Nigeria PLC^a		7,625,421		380,660
United Bank for Africa PLC		101,169,333		4,738,610
Zenith Bank PLC		96,307,794		14,601,083

				113,832,333
OMAN — 5.25%
Ahli Bank SAOG		1,603,625		958,010
Bank Sohar SAOG		2,657,709		1,753,398
BankMuscat SAOG		6,998,535		13,306,306
HSBC Bank Oman SAOG		6,107,205		2,649,099
National Bank of Oman SAOG		2,449,170		2,480,977
Oman Cables Industry		317,250		2,138,347
Oman Cement Co. SAOG		1,016,469		1,995,976
Oman Telecommunications Co. SAOG		1,966,412		8,938,236
Omani Qatari Telecommunications Co. SAOG		2,243,592		3,822,848
Raysut Cement Co.		410,191		2,258,714
Renaissance Services SAOG		887,031		1,640,431

				41,942,342
PAKISTAN — 7.16%
Bank Al Habib Ltd.		2,538,000		1,121,355
Engro Corp. Ltd.^a		2,098,961		3,397,906
Fauji Fertilizer Co. Ltd.		5,160,650		5,819,855
Hub Power Co. Ltd. (The)		3,841,030		2,369,861
Lucky Cement Ltd.		761,298		2,590,656
MCB Bank Ltd.		3,233,166		8,881,445
National Bank of Pakistan		4,268,126		2,407,080


Security	Shares		Value

Oil & Gas Development Co. Ltd.		5,160,600	$	13,221,472
Pakistan Oilfields Ltd.		846,000		4,664,006
Pakistan Petroleum Ltd.		1,254,150		2,741,891
Pakistan State Oil Co. Ltd.		846,000		3,080,487
United Bank Ltd.		3,933,967		6,940,931

				57,236,945
QATAR — 7.95%
Al Khalij Commercial Bank		270,720		1,613,376
Barwa Real Estate Co.		292,293		3,138,706
Commercial Bank of Qatar QSC (The)		115,902		2,167,672
Doha Bank QSC		101,097		1,693,650
Industries Qatar QSC		109,134		5,799,580
Masraf Al Rayan QSC		1,104,876		15,778,741
Ooredoo QSC		240,687		7,555,345
Qatar Electricity & Water Co. QSC		82,485		3,873,705
Qatar Gas Transport Co. Ltd.		399,735		2,579,856
Qatar Islamic Bank SAQ		149,319		4,879,974
Qatar National Bank SAQ		126,054		6,992,999
Qatar Navigation QSC		85,869		2,098,852
Vodafone Qatar QSC		1,016,469		5,398,910

				63,571,366
ROMANIA — 2.75%
Banca Transilvania^a		10,070,380		5,399,668
BRD-Groupe Societe Generale SA^a		1,249,119		3,363,811
OMV Petrom SA		39,804,300		5,842,439
Societatea Nationala de Gaze Naturale ROMGAZ SA		470,799		5,119,297
Transgaz SA Medias		33,840		2,270,124

				21,995,339
SLOVENIA — 0.28%
Telekom Slovenije DD		12,690		2,206,416

				2,206,416
SRI LANKA — 1.94%
Commercial Bank of Ceylon PLC		4,092,032		4,650,393
John Keells Holdings PLC		5,687,095		10,873,736

				15,524,129
UNITED ARAB EMIRATES — 7.53%
Abu Dhabi Commercial Bank PJSC		3,364,542		7,337,221
Arabtec Holding Co.^a		3,303,630		4,236,288


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI FRONTIER 100 ETF

August 31, 2014


Security	Shares or Principal		Value

Dana Gas PJSC^a		10,075,437	$	1,920,150
DP World Ltd.		499,140		9,373,849
Dubai Financial Market PJSC		6,012,522		5,565,558
Dubai Islamic Bank PJSC		1,545,219		3,285,597
Emaar Properties PJSC		5,380,983		15,016,152
First Gulf Bank PJSC		1,289,727		6,408,167
National Bank of Abu Dhabi PJSC		1,851,048		7,055,355

				60,198,337
VIETNAM — 2.96%
Bank for Foreign Trade of Vietnam JSC		1,742,760		2,302,302
Bao Viet Holdings		448,380		937,166
Masan Group Corp.^a		1,762,390		7,067,853
PetroVietnam Drilling and Well Services JSC		575,980		2,676,765
PetroVietnam Fertilizer & Chemicals JSC		1,125,180		1,773,108
Saigon Thuong Tin Commercial JSB		2,812,956		2,574,727
Vingroup JSC		2,302,155		6,354,143

				23,686,064

TOTAL COMMON STOCKS (Cost: $715,158,602)				796,724,462

CONVERTIBLE BONDS — 0.00%

OMAN — 0.00%
BankMuscat SAOG
4.50%, 03/20/17^c	$	540,521		—

				—

TOTAL CONVERTIBLE BONDS (Cost: $0)				—

TOTAL INVESTMENTS IN SECURITIES — 99.67% (Cost: $715,158,602)				796,724,462
Other Assets, Less Liabilities — 0.33%				2,624,301

NET ASSETS — 100.00%			$	799,348,763

SP ADR — Sponsored American Depositary Receipts

SP GDR — Sponsored Global Depositary Receipts

^a	Non-income earning security.

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

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

See notes to financial statements.


26		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.40%

AUSTRALIA — 3.29%
AGL Energy Ltd.		3,220	$	42,464
AGL Energy Ltd. New		644		8,493
Amcor Ltd.		7,268		77,630
AMP Ltd.		15,640		86,013
APA Group		5,635		40,846
Asciano Ltd.		6,854		40,258
ASX Ltd.		1,383		48,494
Aurizon Holdings Ltd.		11,638		51,922
Australia and New Zealand Banking Group Ltd.		13,179		412,069
Bendigo and Adelaide Bank Ltd.		2,806		32,674
BHP Billiton Ltd.		16,054		550,611
Brambles Ltd.		8,579		76,227
CFS Retail Property Trust Group		18,906		38,018
Cochlear Ltd.		345		23,410
Commonwealth Bank of Australia		7,728		587,781
Computershare Ltd.		3,289		37,899
Crown Resorts Ltd.		3,404		50,303
CSL Ltd.		2,461		170,032
Dexus Property Group		43,263		48,759
Fortescue Metals Group Ltd.		12,387		48,312
Goodman Group		11,730		61,219
GPT Group (The)		13,754		51,328
Iluka Resources Ltd.		3,037		25,281
Incitec Pivot Ltd.		10,166		29,476
Insurance Australia Group Ltd.		12,351		74,741
James Hardie Industries SE		3,542		42,437
Lend Lease Group		4,853		64,908
Macquarie Group Ltd.		1,643		89,589
Mirvac Group		31,188		53,527
National Australia Bank Ltd.		11,316		372,552
Newcrest Mining Ltd.^a		6,049		64,044
Orica Ltd.		2,185		41,894
Origin Energy Ltd.		5,911		85,858
QBE Insurance Group Ltd.		7,337		79,054
Ramsay Health Care Ltd.		943		45,828
Rio Tinto Ltd.		2,392		140,118
Santos Ltd.		5,198		72,099
Scentre Group^a		34,605		111,016
Sonic Healthcare Ltd.		2,438		40,201
Stockland Corp. Ltd.		14,766		58,695
Suncorp Group Ltd.		6,440		86,917


Security	Shares		Value

Sydney Airport		4,675	$	19,370
Tatts Group Ltd.		11,362		35,281
Telstra Corp. Ltd.		20,585		107,047
Toll Holdings Ltd.		4,531		25,300
Transurban Group		9,448		71,224
Wesfarmers Ltd.		5,177		209,709
Westfield Corp.		12,167		86,714
Westpac Banking Corp.		14,881		487,694
Woodside Petroleum Ltd.		3,289		131,354
Woolworths Ltd.		6,371		215,470

				5,552,160
AUSTRIA — 0.10%
Andritz AG		667		35,775
Erste Group Bank AG		1,886		48,517
IMMOFINANZ AG^a		11,126		34,953
OMV AG		897		34,737
Telekom Austria AG		2,323		21,786

				175,768
BELGIUM — 0.49%
Ageas		1,610		54,173
Anheuser-Busch InBev NV		3,956		440,577
Belgacom SA		759		27,128
Colruyt SA		483		23,094
Groupe Bruxelles Lambert SA		391		38,534
KBC Groep NV^a		1,579		90,214
Solvay SA		322		50,791
UCB SA		598		58,053
Umicore SA		851		41,267

				823,831
CANADA — 4.37%
Agnico-Eagle Mines Ltd.		1,472		56,424
Agrium Inc.		805		76,303
Alimentation Couche-Tard Inc. Class B		2,685		80,717
ARC Resources Ltd.		1,633		47,315
Bank of Montreal		2,944		227,052
Bank of Nova Scotia		5,957		395,614
Barrick Gold Corp.		6,670		122,916
Baytex Energy Corp.		759		34,019
BCE Inc.		989		44,629
BlackBerry Ltd.^a,b		2,392		24,367
Bombardier Inc. Class B		8,947		30,188
Brookfield Asset Management Inc. Class A		3,220		154,210


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

Cameco Corp.		2,208	$	43,275
Canadian Imperial Bank of Commerce		2,093		200,492
Canadian National Railway Co.		4,324		311,280
Canadian Natural Resources Ltd.		5,520		241,155
Canadian Oil Sands Ltd.		2,622		56,610
Canadian Pacific Railway Ltd.		1,058		212,419
Canadian Tire Corp. Ltd. Class A NVS		437		45,249
Canadian Utilities Ltd. Class A		736		26,556
Catamaran Corp.^a		1,127		53,225
Cenovus Energy Inc.		3,864		123,534
CGI Group Inc. Class A^a,b		1,380		48,954
CI Financial Corp.		1,242		40,852
Crescent Point Energy Corp.		1,817		75,377
Eldorado Gold Corp.		3,276		27,150
Enbridge Inc.		3,749		187,424
Encana Corp.		3,933		90,897
Finning International Inc.		1,219		38,096
First Quantum Minerals Ltd.		3,757		84,543
Fortis Inc.^b		1,219		37,669
Franco-Nevada Corp.		1,311		74,037
George Weston Ltd.		391		31,060
Gildan Activewear Inc.		667		38,332
Goldcorp Inc.		4,945		139,176
Great-West Lifeco Inc.		1,081		31,710
Husky Energy Inc.		1,794		54,742
IGM Financial Inc.		667		31,900
Imperial Oil Ltd.		1,518		80,969
Intact Financial Corp.		851		57,983
Inter Pipeline Ltd.		1,396		46,690
Loblaw Companies Ltd.		1,403		70,102
Magna International Inc. Class A		1,173		133,310
Manulife Financial Corp.		8,855		179,182
MEG Energy Corp.^a		828		29,563
Metro Inc. Class A		736		47,827
National Bank of Canada		1,656		79,857
Onex Corp.		644		37,586
Open Text Corp.		736		41,443
Pacific Rubiales Energy Corp.		1,725		35,987
Pembina Pipeline Corp.		1,748		80,523
Pengrowth Energy Corp.		4,301		27,477
Potash Corp. of Saskatchewan Inc.		4,301		151,422
Power Corp. of Canada		1,564		46,196
Power Financial Corp.		828		26,830
RioCan Real Estate Investment Trust		1,541		38,484


Security	Shares		Value

Rogers Communications Inc. Class B		1,840	$	75,178
Royal Bank of Canada		6,831		508,633
Saputo Inc.		828		50,485
Shaw Communications Inc. Class B		1,961		49,515
Silver Wheaton Corp.		2,990		74,864
SNC-Lavalin Group Inc.		943		48,404
Sun Life Financial Inc.		2,875		107,155
Suncor Energy Inc.		7,705		317,008
Talisman Energy Inc.		5,267		53,071
Teck Resources Ltd. Class B		3,220		73,290
TELUS Corp. NVS		64		2,339
Thomson Reuters Corp.		1,748		66,391
Tim Hortons Inc.		1,012		81,538
Toronto-Dominion Bank (The)		8,878		468,555
Tourmaline Oil Corp.^a		1,081		54,880
TransAlta Corp.		1,725		19,942
TransCanada Corp.		3,404		183,356
Valeant Pharmaceuticals International Inc.^a,b		1,717		201,624
Vermilion Energy Inc.		690		44,991
Yamana Gold Inc.		4,117		35,145

				7,367,263
DENMARK — 0.56%
Carlsberg A/S Class B		690		63,072
Coloplast A/S Class B		851		70,808
Danske Bank A/S		3,979		112,140
DSV A/S		1,932		59,403
Novo Nordisk A/S Class B		10,235		468,690
Novozymes A/S Class B		1,587		73,852
Vestas Wind Systems A/S^a		1,518		64,038
William Demant Holding A/S^a,b		437		33,842

				945,845
FINLAND — 0.34%
Elisa OYJ		897		24,481
Fortum OYJ		2,024		50,921
Kone OYJ Class B		1,794		76,090
Metso OYJ		828		32,545
Nokia OYJ		19,067		160,611
Sampo OYJ Class A		1,932		95,253
Stora Enso OYJ Class R		3,726		32,515
UPM-Kymmene OYJ		3,059		46,055
Wartsila OYJ Abp		1,012		51,001

				569,472


28		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

FRANCE — 3.89%
Accor SA		920	$	44,813
Airbus Group NV		3,100		191,120
Alcatel-Lucent^a,b		17,411		60,362
ALSTOM^a		1,173		41,617
ArcelorMittal		5,681		82,874
Atos SA		391		29,902
AXA SA		8,533		211,868
BNP Paribas SA		5,198		351,789
Bollore		46		29,084
Bouygues SA		1,058		38,930
Bureau Veritas SA		1,472		35,056
Cap Gemini SA		851		60,654
Carrefour SA		3,151		109,511
Casino Guichard-Perrachon SA		368		44,028
Christian Dior SA		253		45,106
Compagnie de Saint-Gobain		2,070		105,329
Compagnie Generale des Etablissements Michelin Class B		805		89,228
Credit Agricole SA		6,233		92,651
Danone SA		2,898		202,848
Dassault Systemes SA		736		48,861
Edenred SA		1,265		37,607
Electricite de France SA		1,127		36,734
Essilor International SA		1,035		110,046
Eutelsat Communications SA		874		29,224
GDF Suez		6,923		170,935
Groupe Eurotunnel SA Registered		4,370		56,364
Iliad SA		184		40,523
Kering		414		87,933
Klepierre		897		42,830
L’Air Liquide SA		1,693		216,847
L’Oreal SA		1,196		198,497
Lafarge SA		1,081		83,013
Lagardere SCA		897		24,759
Legrand SA		1,449		80,296
LVMH Moet Hennessy Louis Vuitton SA		1,334		232,031
Orange		9,614		145,884
Pernod Ricard SA		1,104		130,499
PSA Peugeot Citroen SA^a		2,737		38,539
Publicis Groupe SA		966		72,146
Renault SA		1,003		78,714
Safran SA		1,311		86,144
Sanofi		5,796		637,480


Security	Shares		Value

Schneider Electric SE		2,756	$	233,495
SCOR SE		1,012		31,059
SES SA Class A FDR		1,932		71,662
Societe BIC SA		230		31,326
Societe Generale		3,779		191,915
Sodexo		575		56,782
STMicroelectronics NV		3,611		30,317
Suez Environnement SA		1,633		30,178
Technip SA		644		59,804
Thales SA		713		39,910
Total SA		10,603		700,967
Unibail-Rodamco SE		552		148,618
Vallourec SA		667		29,863
Veolia Environnement		2,415		44,455
Vinci SA		2,369		155,242
Vivendi SA		6,279		163,719

				6,571,988
GERMANY — 3.25%
Adidas AG		1,127		84,675
Allianz SE Registered		2,185		373,575
BASF SE		4,646		479,112
Bayer AG Registered		4,117		553,408
Bayerische Motoren Werke AG		1,610		187,893
Beiersdorf AG		621		54,797
Brenntag AG		1,242		65,888
Commerzbank AG^a		5,773		87,600
Continental AG		616		131,852
Daimler AG Registered		4,715		386,548
Deutsche Bank AG Registered		6,833		234,371
Deutsche Boerse AG		1,127		80,326
Deutsche Post AG Registered		5,267		172,645
Deutsche Telekom AG Registered		15,456		231,681
E.ON SE		9,177		167,176
Fresenius Medical Care AG & Co. KGaA		1,150		81,298
Fresenius SE & Co. KGaA		2,070		101,239
GEA Group AG		1,403		63,628
Hannover Rueck SE Registered		460		38,300
HeidelbergCement AG		828		62,625
Henkel AG & Co. KGaA		736		70,179
Infineon Technologies AG		6,210		72,351
Kabel Deutschland Holding AG		253		35,791
Lanxess AG		552		34,257
Linde AG		1,012		200,818


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

MAN SE		299	$	35,544
Merck KGaA		690		60,194
Muenchener Rueckversicherungs-Gesellschaft AG Registered		897		180,301
Osram Licht AG^a		828		34,704
QIAGEN NV^a		1,679		40,759
RWE AG		2,714		106,460
SAP SE		4,669		364,081
Siemens AG Registered		4,048		508,355
ThyssenKrupp AG^a		2,817		78,386
Volkswagen AG		92		20,662

				5,481,479
HONG KONG — 1.22%
AIA Group Ltd.^b		73,600		401,706
Bank of East Asia Ltd. (The)		23,000		97,934
BOC Hong Kong (Holdings) Ltd.		34,500		115,962
CLP Holdings Ltd.		23,000		194,680
Galaxy Entertainment Group Ltd.^b		10,000		75,353
Hang Seng Bank Ltd.		11,500		194,235
Hong Kong and China Gas Co. Ltd. (The)^b		76,464		173,447
Hong Kong Exchanges and Clearing Ltd.		5,100		117,199
Li & Fung Ltd.^b		46,000		57,098
Link REIT (The)		23,000		136,514
Michael Kors Holdings Ltd.^a		1,058		84,767
MTR Corp. Ltd.		34,500		136,885
New World Development Co. Ltd.		59,333		75,026
Sands China Ltd.		18,400		119,894
Wynn Macau Ltd.^b		18,400		70,512

				2,051,212
IRELAND — 0.18%
Bank of Ireland^a		127,765		50,993
CRH PLC		3,910		90,541
Kerry Group PLC Class A		1,012		76,315
Pentair PLC		1,173		79,846

				297,695
ISRAEL — 0.18%
Bank Hapoalim BM		11,500		65,260
Teva Pharmaceutical Industries Ltd.		4,692		244,830

				310,090
ITALY — 0.98%
Assicurazioni Generali SpA		6,256		128,221
Atlantia SpA		2,921		74,334


Security	Shares		Value

Banca Monte dei Paschi di Siena SpA^a		39,995	$	59,951
CNH Industrial NV^a		6,072		52,867
Enel Green Power SpA		11,132		30,792
Enel SpA		34,040		180,516
Eni SpA		12,305		307,631
Fiat SpA^a,b		5,083		49,813
Intesa Sanpaolo SpA		66,493		198,292
Intesa Sanpaolo SpA RNC		10,005		26,159
Luxottica Group SpA		1,012		54,187
Saipem SpA^a		1,817		43,224
Snam SpA		10,741		62,619
Telecom Italia SpA^a,b		64,101		73,922
Telecom Italia SpA RNC		26,473		24,409
Tenaris SA		2,576		56,970
Terna SpA		8,418		43,466
UniCredit SpA		24,748		192,003

				1,659,376
JAPAN — 8.05%
AEON Co. Ltd.		6,900		74,656
Asahi Group Holdings Ltd.		4,600		145,282
Astellas Pharma Inc.		16,100		232,159
Bridgestone Corp.		4,600		158,034
Canon Inc.		6,900		225,760
Chubu Electric Power Co. Inc.^a		4,600		53,202
Chugai Pharmaceutical Co. Ltd.		4,600		145,902
Chugoku Electric Power Co. Inc. (The)		4,600		60,752
Dai-ichi Life Insurance Co. Ltd. (The)		6,900		98,998
Daiichi Sankyo Co. Ltd.		6,900		122,079
Daikin Industries Ltd.		2,300		158,743
Daiwa Securities Group Inc.		3,000		24,434
Denso Corp.		4,600		199,834
East Japan Railway Co.		2,300		178,957
FANUC Corp.		700		117,245
Fast Retailing Co. Ltd.		200		62,665
Fuji Heavy Industries Ltd.		4,600		130,869
FUJIFILM Holdings Corp.		4,600		138,839
Fujitsu Ltd.		9,000		61,831
GungHo Online Entertainment Inc.^b		4,600		24,620
Hakuhodo DY Holdings Inc.		9,200		95,290
Hitachi Ltd.		23,000		174,130
Honda Motor Co. Ltd.		11,500		388,887
Hoya Corp.		4,600		148,891


30		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

INPEX Corp.		6,900	$	98,965
ITOCHU Corp.		11,500		146,400
Japan Display Inc.^a		6,900		35,003
Japan Retail Fund Investment Corp.		46		96,618
Japan Tobacco Inc.		6,900		236,719
JFE Holdings Inc.		4,600		93,165
JTEKT Corp.		4,600		73,239
JX Holdings Inc.		23,000		118,404
Kansai Electric Power Co. Inc. (The)^a		6,900		63,212
Kao Corp.		4,600		198,595
KDDI Corp.		4,600		265,634
Kirin Holdings Co. Ltd.		6,900		92,622
Kobe Steel Ltd.		23,000		37,416
Komatsu Ltd.		6,900		156,418
Konica Minolta Holdings Inc.		6,900		75,918
Kuraray Co. Ltd.		6,900		85,947
Kyocera Corp.		2,300		107,699
Kyushu Electric Power Co. Inc.^a		2,300		23,380
Marui Group Co. Ltd.		4,600		38,700
Mazda Motor Corp.		4,600		108,662
Mitsubishi Chemical Holdings Corp.		16,100		80,419
Mitsubishi Corp.		11,500		238,170
Mitsubishi Electric Corp.		8,000		100,265
Mitsubishi Estate Co. Ltd.		5,000		115,585
Mitsubishi Heavy Industries Ltd.		23,000		141,762
Mitsubishi Motors Corp.		4,600		52,383
Mitsubishi UFJ Financial Group Inc.		78,800		453,753
Mitsubishi UFJ Lease & Finance Co. Ltd.		16,100		86,013
Mitsui & Co. Ltd.		13,900		226,928
Mitsui Fudosan Co. Ltd.		4,000		127,641
Mizuho Financial Group Inc.		158,800		302,513
MS&AD Insurance Group Holdings Inc.		4,200		94,867
Murata Manufacturing Co. Ltd.		800		76,500
Nagoya Railroad Co. Ltd.		23,000		95,201
NEC Corp.		15,000		53,424
Nikon Corp.		4,600		66,885
Nintendo Co. Ltd.		500		55,494
Nippon Steel & Sumitomo Metal Corp.		46,470		131,691
Nippon Telegraph and Telephone Corp.		2,300		154,536
Nissan Motor Co. Ltd.		18,400		176,942
NKSJ Holdings Inc.		4,200		101,599
Nomura Holdings Inc.		25,300		162,538


Security	Shares		Value

NTT DOCOMO Inc.		13,800	$	238,911
Olympus Corp.^a		2,300		82,250
Omron Corp.		2,300		99,740
ORIX Corp.		9,200		139,038
Otsuka Holdings Co. Ltd.		4,600		167,466
Panasonic Corp.		13,800		168,839
Rakuten Inc.		6,900		89,401
Resona Holdings Inc.		25,300		137,404
Ricoh Co. Ltd.		6,300		68,255
Sekisui House Ltd.		4,100		51,622
Seven & I Holdings Co. Ltd.		4,600		184,757
Seven Bank Ltd.		18,400		74,744
Shin-Etsu Chemical Co. Ltd.		2,300		142,935
Shionogi & Co. Ltd.		4,600		108,485
Shiseido Co. Ltd.		4,600		85,017
SoftBank Corp.		4,600		332,364
Sony Corp.		6,900		132,175
Sumitomo Corp.		9,200		118,935
Sumitomo Electric Industries Ltd.		9,200		134,876
Sumitomo Mitsui Financial Group Inc.		8,600		347,734
Sumitomo Mitsui Trust Holdings Inc.		23,000		94,515
Sumitomo Realty & Development Co. Ltd.		2,000		77,567
Suzuki Motor Corp.		2,300		74,855
T&D Holdings Inc.		6,900		85,714
Takeda Pharmaceutical Co. Ltd.		4,600		210,329
Tohoku Electric Power Co. Inc.		4,600		50,877
Tokio Marine Holdings Inc.		4,600		140,433
Tokyo Electric Power Co. Inc.^a		10,700		38,727
Tokyu Fudosan Holdings Corp.		6,900		53,003
Toshiba Corp.		23,000		101,533
Toyota Motor Corp.		16,100		918,716
USS Co. Ltd.		6,900		113,910
Yahoo! Japan Corp.		16,200		65,340
Yamada Denki Co. Ltd.		9,200		29,579
Yamato Holdings Co. Ltd.		4,600		95,179
Yokogawa Electric Corp.		4,600		53,268

				13,578,377
LUXEMBOURG — 0.02%
Altice SA^a,b		598		38,282

				38,282
NETHERLANDS — 0.99%
AEGON NV		9,568		75,819
Akzo Nobel NV		1,242		87,998


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

ASML Holding NV		1,748	$	167,643
Corio NV		603		32,474
Gemalto NV^b		500		49,072
Heineken Holding NV		552		38,194
Heineken NV		1,127		85,952
ING Groep NV CVA^a		20,217		278,681
Koninklijke Ahold NV		4,796		82,125
Koninklijke DSM NV		1,036		69,350
Koninklijke KPN NV^a		16,364		54,426
Koninklijke Philips NV		5,466		166,964
Randstad Holding NV		797		38,785
Reed Elsevier NV		3,404		77,793
Unilever NV CVA		7,820		325,856
Wolters Kluwer NV		1,518		42,150

				1,673,282
NEW ZEALAND — 0.05%
Fletcher Building Ltd.		5,612		43,220
Spark New Zealand Ltd.		14,053		34,527

				77,747
NORWAY — 0.34%
DNB ASA		5,221		97,706
Norsk Hydro ASA		7,153		42,150
Orkla ASA		5,198		47,123
Seadrill Ltd.^b		2,208		81,569
Statoil ASA		6,141		172,980
Telenor ASA		3,519		80,951
Yara International ASA		1,035		52,108

				574,587
PORTUGAL — 0.08%
Energias de Portugal SA		15,640		75,894
Galp Energia SGPS SA Class B		3,059		54,396

				130,290
SINGAPORE — 0.54%
Ascendas REIT		46,000		86,622
CapitaLand Ltd.		46,000		122,377
CapitaMall Trust Management Ltd.		69,000		110,581
Genting Singapore PLC		92,000		89,940
Global Logistic Properties Ltd.		46,000		105,052
Golden Agri-Resources Ltd.		115,000		46,997
Hutchison Port Holdings Trust^b		92,000		66,240
Noble Group Ltd.		69,000		75,195
Singapore Telecommunications Ltd.^b		69,000		215,081

				918,085


Security	Shares		Value

SPAIN — 1.44%
Abertis Infraestructuras SA		2,875	$	60,629
Actividades de Construcciones y Servicios SA		1,205		50,879
Amadeus IT Holding SA Class A		2,047		76,306
Banco Bilbao Vizcaya Argentaria SA		30,053		364,585
Banco de Sabadell SA		20,543		64,834
Banco Popular Espanol SA		10,680		66,836
Banco Santander SA		58,997		589,825
Bankia SA^a		25,875		50,169
CaixaBank SA		10,603		63,938
Distribuidora Internacional de Alimentacion SA		4,393		37,080
Enagas SA		236		7,886
Ferrovial SA		2,737		55,844
Gas Natural SDG SA		1,909		58,677
Grifols SA		966		45,082
Iberdrola SA		22,379		164,632
Inditex SA		5,290		153,644
International Consolidated Airlines Group SA^a		12,420		74,534
Red Electrica Corporacion SA		112		9,455
Repsol SA		4,255		105,873
Telefonica SA		19,228		305,698
Zardoya Otis SA		1,358		19,748
Zardoya Otis SA New		37		538

				2,426,692
SWEDEN — 1.20%
Alfa Laval AB		2,139		48,970
Assa Abloy AB Class B		2,116		107,177
Atlas Copco AB Class A		3,013		87,954
Atlas Copco AB Class B		2,576		68,841
Boliden AB		2,534		40,239
Electrolux AB Class B		1,311		33,343
Elekta AB Class B		2,254		25,753
Hennes & Mauritz AB Class B		4,600		196,174
Hexagon AB Class B		1,334		43,744
Investment AB Kinnevik Class B		1,472		59,883
Investor AB Class B		2,829		105,105
Lundin Petroleum AB^a,b		1,196		22,337
Millicom International Cellular SA SDR^b		322		28,938
Nordea Bank AB		14,099		184,245
Sandvik AB		6,008		75,108


32		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

Skandinaviska Enskilda Banken AB Class A		7,268	$	95,134
Skanska AB Class B		2,576		53,432
SKF AB Class B		2,300		53,184
Svenska Cellulosa AB Class B		2,806		67,622
Svenska Handelsbanken AB Class A		2,277		107,003
Swedbank AB Class A		4,577		116,867
Swedish Match AB		1,219		40,813
Tele2 AB Class B		1,564		19,507
Telefonaktiebolaget LM Ericsson Class B		15,111		188,908
TeliaSonera AB		9,085		66,464
Volvo AB Class B		8,061		96,495

				2,033,240
SWITZERLAND — 3.72%
ABB Ltd. Registered^a		11,477		261,032
Actelion Ltd. Registered^a		667		82,078
Adecco SA Registered^a		828		62,833
Aryzta AG^a		805		73,701
Baloise Holding AG Registered		437		57,115
Compagnie Financiere Richemont SA Class A Bearer		2,691		257,244
Credit Suisse Group AG Registered		7,820		220,977
Geberit AG Registered		276		93,873
Givaudan SA Registered^a		69		114,818
Holcim Ltd. Registered^a		1,265		100,830
Julius Baer Group Ltd.^a		1,357		61,831
Kuehne & Nagel International AG Registered		345		46,598
Nestle SA Registered		15,732		1,223,896
Novartis AG Registered		11,040		992,678
Partners Group Holding AG		184		48,659
Roche Holding AG Genusschein		3,404		994,978
Schindler Holding AG Participation Certificates		276		39,990
Schindler Holding AG Registered		207		30,174
SGS SA Registered		46		102,312
Sonova Holding AG Registered		299		47,926
Sulzer AG Registered		207		27,529
Swatch Group AG (The) Bearer		230		125,014
Swiss Life Holding AG Registered^a		207		52,301
Swiss Prime Site AG Registered^a		552		44,179
Swiss Re AG^a		1,748		143,623


Security	Shares		Value

Swisscom AG Registered		115	$	66,927
Syngenta AG Registered		506		182,046
Transocean Ltd.^b		2,047		78,943
UBS AG Registered^a		18,791		337,719
Weatherford International Ltd.^a		3,956		93,718
Zurich Insurance Group AG^a		690		208,691

				6,274,233
UNITED KINGDOM — 8.54%
3i Group PLC		6,877		44,907
Aberdeen Asset Management PLC		6,141		44,303
Admiral Group PLC		1,081		23,967
Aggreko PLC		1,487		42,031
AMEC PLC		1,817		33,948
Anglo American PLC		6,900		175,325
Antofagasta PLC		2,277		29,704
ARM Holdings PLC		7,314		117,945
Associated British Foods PLC		2,139		101,704
AstraZeneca PLC		6,371		483,217
Aviva PLC		15,732		136,121
Babcock International Group PLC		3,456		64,340
BAE Systems PLC		17,135		126,662
Barclays PLC		80,178		298,868
BG Group PLC		16,813		335,485
BHP Billiton PLC		10,534		333,704
BP PLC		90,574		724,501
British American Tobacco PLC		9,361		552,437
British Land Co. PLC (The)		6,187		75,059
British Sky Broadcasting Group PLC		5,037		73,070
BT Group PLC		37,375		240,213
Bunzl PLC		2,507		68,531
Burberry Group PLC		2,277		53,736
Capita PLC		3,519		71,708
Carnival PLC		1,058		39,464
Centrica PLC		25,300		134,202
Cobham PLC		8,073		39,833
Compass Group PLC		9,026		146,826
Croda International PLC		897		32,505
Diageo PLC		12,374		364,867
Experian PLC		5,428		94,472
Friends Life Group Ltd.		5,612		28,585
G4S PLC		7,935		34,922
GKN PLC		6,555		38,200
GlaxoSmithKline PLC		23,460		574,482
Glencore PLC^a		51,313		308,830


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

Hammerson PLC		6,325	$	63,813
HSBC Holdings PLC		92,437		1,000,916
ICAP PLC		3,680		23,175
IMI PLC		1,932		43,508
Imperial Tobacco Group PLC		4,899		213,733
Inmarsat PLC		2,599		30,236
InterContinental Hotels Group PLC		1,613		61,853
Intertek Group PLC		989		46,006
Intu Properties PLC		7,080		40,213
Investec PLC		3,703		33,731
ITV PLC		21,045		73,815
J Sainsbury PLC		7,751		37,369
Johnson Matthey PLC		1,265		66,345
Kingfisher PLC		11,868		59,859
Land Securities Group PLC		5,198		93,404
Legal & General Group PLC		28,819		115,680
Lloyds Banking Group PLC^a		290,122		367,484
London Stock Exchange Group PLC		1,196		40,579
Marks & Spencer Group PLC		7,843		55,996
Meggitt PLC		5,980		46,836
National Grid PLC		16,836		251,364
Next PLC		851		100,273
Nobel Corp. PLC		1,265		36,002
Old Mutual PLC		22,747		75,139
Pearson PLC		3,956		72,992
Petrofac Ltd.		1,403		26,306
Prudential PLC		12,121		291,884
Randgold Resources Ltd.		460		38,847
Reckitt Benckiser Group PLC		3,013		262,701
Reed Elsevier PLC		6,256		102,078
Rexam PLC		4,043		34,042
Rio Tinto PLC		6,647		354,738
Rolls-Royce Holdings PLC^a		9,798		166,137
Royal Bank of Scotland Group PLC^a		12,351		74,417
Royal Dutch Shell PLC Class A		17,894		724,511
Royal Dutch Shell PLC Class B		13,248		560,051
RSA Insurance Group PLC		5,767		43,884
SABMiller PLC		4,738		261,475
Sage Group PLC (The)		7,270		47,534
SEGRO PLC		7,475		45,945
Severn Trent PLC		1,288		41,604
Shire PLC		3,128		255,741
Smith & Nephew PLC		4,807		83,265
Smiths Group PLC		2,484		54,289
SSE PLC		4,733		119,320


Security	Shares		Value

Standard Chartered PLC		11,454	$	230,740
Standard Life PLC		11,408		72,828
Tate & Lyle PLC		3,151		35,401
Tesco PLC		39,744		151,778
Tullow Oil PLC		4,554		55,210
Unilever PLC		6,302		278,292
United Utilities Group PLC		3,542		51,588
Vodafone Group PLC		129,217		443,679
Weir Group PLC (The)		1,311		57,588
Whitbread PLC		1,196		87,177
Wolseley PLC		1,506		80,985
WPP PLC		6,279		131,704

				14,404,734
UNITED STATES — 55.58%
3M Co.		3,036		437,184
Abbott Laboratories		7,337		309,915
AbbVie Inc.		7,751		428,475
Accenture PLC Class A		3,197		259,149
ACE Ltd.		1,541		163,855
Actavis PLC^a		1,426		323,673
Activision Blizzard Inc.		2,645		62,263
Adobe Systems Inc.^a		2,507		180,253
ADT Corp. (The)		920		33,911
Advance Auto Parts Inc.		391		53,340
AES Corp. (The)		3,381		51,324
Aetna Inc.		1,955		160,564
Affiliated Managers Group Inc.^a		414		87,416
Aflac Inc.		2,208		135,218
AGCO Corp.		644		31,453
Agilent Technologies Inc.		1,725		98,601
Air Products and Chemicals Inc.		1,058		140,936
Airgas Inc.		414		45,697
Akamai Technologies Inc.^a		989		59,755
Albemarle Corp.		552		35,096
Alcoa Inc.		6,302		104,676
Alexion Pharmaceuticals Inc.^a		1,012		171,321
Alleghany Corp.^a		92		39,664
Allergan Inc.		1,541		252,231
Alliance Data Systems Corp.^a		299		79,127
Alliant Energy Corp.		759		44,394
Allstate Corp. (The)		2,093		128,699
Altera Corp.		1,748		61,774
Altria Group Inc.		9,637		415,162
Amazon.com Inc.^a		1,955		662,823


34		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

Ameren Corp.		1,426	$	57,026
American Capital Agency Corp.		1,748		41,340
American Electric Power Co. Inc.		2,438		130,921
American Express Co.		4,830		432,526
American International Group Inc.		6,831		382,946
American Tower Corp.		2,070		204,102
American Water Works Co. Inc.		1,081		54,709
Ameriprise Financial Inc.		1,104		138,839
AmerisourceBergen Corp.		1,311		101,458
AMETEK Inc.		1,541		81,581
Amgen Inc.		3,726		519,330
Amphenol Corp. Class A		782		80,554
Anadarko Petroleum Corp.		2,484		279,922
Analog Devices Inc.		1,590		81,281
Annaly Capital Management Inc.		5,083		60,488
ANSYS Inc.^a		575		46,748
Aon PLC		1,472		128,300
Apache Corp.		1,817		185,025
Apple Inc.		30,130		3,088,325
Applied Materials Inc.		6,624		153,048
Arch Capital Group Ltd.^a		644		35,794
Archer-Daniels-Midland Co.		3,381		168,577
Arrow Electronics Inc.^a		621		38,657
Assurant Inc.		460		30,705
AT&T Inc.		25,277		883,684
Autodesk Inc.^a		1,242		66,621
Autoliv Inc.		506		52,467
Automatic Data Processing Inc.		2,346		195,844
AutoZone Inc.^a		161		86,753
Avago Technologies Ltd.		1,403		115,172
AvalonBay Communities Inc.		667		102,785
Avery Dennison Corp.		736		35,424
Avnet Inc.		805		35,831
Axis Capital Holdings Ltd.		552		26,617
Baker Hughes Inc.		2,139		147,890
Ball Corp.		966		61,921
Bank of America Corp.		53,199		855,972
Bank of New York Mellon Corp. (The)		5,819		227,988
Baxter International Inc.		2,530		189,699
BB&T Corp.		3,151		117,627
Becton, Dickinson and Co.		851		99,712
Bed Bath & Beyond Inc.^a,b		1,150		73,899
Berkshire Hathaway Inc. Class B^a		5,221		716,582
Best Buy Co. Inc.		1,725		55,010
Biogen Idec Inc.^a		1,219		418,166


Security	Shares		Value

BlackRock Inc.^c		690	$	228,066
Boeing Co. (The)		3,565		452,042
BorgWarner Inc.		966		60,076
Boston Properties Inc.		874		106,121
Boston Scientific Corp.^a		7,498		95,075
Bristol-Myers Squibb Co.		8,165		413,557
Broadcom Corp. Class A		2,645		104,160
Brown-Forman Corp. Class B NVS		759		70,329
Bunge Ltd.		805		68,143
C.H. Robinson Worldwide Inc.		874		59,659
C.R. Bard Inc.		414		61,454
CA Inc.		1,771		50,013
Cabot Oil & Gas Corp.		2,346		78,685
Calpine Corp.^a		2,162		51,391
Cameron International Corp.^a		1,242		92,318
Campbell Soup Co.		1,035		46,389
Capital One Financial Corp.		2,829		232,148
Cardinal Health Inc.		1,656		122,047
CareFusion Corp.^a		1,265		58,076
CarMax Inc.^a		1,173		61,465
Carnival Corp.		1,817		68,828
Caterpillar Inc.		3,243		353,714
CBRE Group Inc. Class A^a		2,047		65,054
CBS Corp. Class B NVS		2,990		177,277
Celanese Corp. Series A		897		56,098
Celgene Corp.^a		4,278		406,496
CenterPoint Energy Inc.		2,162		53,704
CenturyLink Inc.		3,013		123,503
Cerner Corp.^a		1,564		90,180
CF Industries Holdings Inc.		322		82,970
Charles Schwab Corp. (The)		6,256		178,359
Charter Communications Inc. Class A^a		437		68,552
Cheniere Energy Inc.^a		1,288		103,375
Chesapeake Energy Corp.		3,082		83,830
Chevron Corp.		9,246		1,196,895
Chipotle Mexican Grill Inc.^a		184		124,872
Chubb Corp. (The)		1,150		105,743
Church & Dwight Co. Inc.		713		48,655
Cigna Corp.		1,449		137,075
Cimarex Energy Co.		506		73,451
Cincinnati Financial Corp.		644		30,970
Cintas Corp.		805		53,243
Cisco Systems Inc.		25,047		625,925
CIT Group Inc.		943		45,226


SCHEDULES OF INVESTMENTS			35

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

Citigroup Inc.		15,134	$	781,671
Citrix Systems Inc.^a		989		69,487
Clorox Co. (The)		529		46,869
CME Group Inc.		1,587		121,485
CMS Energy Corp.		1,587		48,467
Coach Inc.		1,380		50,825
Cobalt International Energy Inc.^a		1,702		26,126
Coca-Cola Co. (The)		18,952		790,677
Coca-Cola Enterprises Inc.		1,679		80,223
Cognizant Technology Solutions Corp. Class A^a		3,082		140,940
Colgate-Palmolive Co.		4,324		279,893
Comcast Corp. Class A		10,879		595,408
Comcast Corp. Class A Special NVS		2,047		111,766
Comerica Inc.		943		47,471
Computer Sciences Corp.		828		49,506
ConAgra Foods Inc.		2,254		72,579
Concho Resources Inc.^a		621		88,207
ConocoPhillips		5,430		441,025
CONSOL Energy Inc.		1,380		55,586
Consolidated Edison Inc.		1,334		77,225
Constellation Brands Inc. Class A^a		874		76,117
Continental Resources Inc.^a		362		58,387
Core Laboratories NV		253		39,971
Corning Inc.		6,900		143,934
Costco Wholesale Corp.		2,162		261,775
Covidien PLC		2,254		195,715
Cree Inc.^a		598		27,245
Crown Castle International Corp.		1,702		135,326
Crown Holdings Inc.^a		966		46,629
CSX Corp.		5,244		162,092
Cummins Inc.		943		136,839
CVS Caremark Corp.		5,842		464,147
D.R. Horton Inc.		1,564		33,908
Danaher Corp.		3,013		230,826
Darden Restaurants Inc.		805		38,093
DaVita HealthCare Partners Inc.^a		920		68,706
Deere & Co.		1,771		148,923
Delphi Automotive PLC		1,311		91,219
Denbury Resources Inc.		2,162		37,230
DENTSPLY International Inc.		851		40,597
Devon Energy Corp.		1,840		138,773
Dick’s Sporting Goods Inc.		575		25,915
Digital Realty Trust Inc.		805		52,526
DIRECTV^a		2,599		224,684


Security	Shares		Value

Discover Financial Services		2,576	$	160,665
Discovery Communications Inc. Series A^a		782		34,189
Discovery Communications Inc. Series C NVS^a,b		1,748		75,112
DISH Network Corp. Class A^a		1,288		83,475
Dollar General Corp.^a		1,587		101,552
Dollar Tree Inc.^a		1,196		64,136
Dominion Resources Inc.		2,737		192,192
Dover Corp.		1,035		90,945
Dow Chemical Co. (The)		5,888		315,302
Dr Pepper Snapple Group Inc.		1,196		75,252
DTE Energy Co.		897		70,190
Duke Energy Corp.		3,197		236,546
Duke Realty Corp.		2,852		53,047
Dun & Bradstreet Corp. (The)		322		37,796
E.I. du Pont de Nemours and Co.		4,485		296,503
Eastman Chemical Co.		874		72,079
Eaton Corp. PLC		2,415		168,591
Eaton Vance Corp. NVS		920		36,027
eBay Inc.^a		6,072		336,996
Ecolab Inc.		1,518		174,297
Edison International		1,817		107,457
Edwards Lifesciences Corp.^a		621		61,640
Electronic Arts Inc.^a		1,840		69,626
Eli Lilly and Co.		4,738		301,147
EMC Corp.		9,729		287,297
Emerson Electric Co.		3,542		226,759
Energen Corp.		483		38,872
Energizer Holdings Inc.		322		39,129
Ensco PLC Class A		1,196		60,374
Entergy Corp.		1,035		80,119
EOG Resources Inc.		2,760		303,269
EQT Corp.		851		84,300
Equifax Inc.		782		61,590
Equinix Inc.^a		276		60,240
Equity Residential		1,748		116,190
Essex Property Trust Inc.		305		59,002
Estee Lauder Companies Inc. (The) Class A		1,150		88,355
Everest Re Group Ltd.		253		41,452
Exelon Corp.		4,669		156,038
Expedia Inc.		621		53,344
Expeditors International of Washington Inc.		1,196		49,395


36		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

Express Scripts Holding Co.^a		3,933	$	290,767
Exxon Mobil Corp.		21,252		2,113,724
F5 Networks Inc.^a		437		54,271
Facebook Inc. Class A^a		9,522		712,436
Family Dollar Stores Inc.		529		42,230
Fastenal Co.		1,587		71,859
Federal Realty Investment Trust		575		71,749
FedEx Corp.		1,472		217,679
Fidelity National Information Services Inc.		1,311		74,399
Fifth Third Bancorp		4,094		83,538
First Republic Bank		920		44,988
FirstEnergy Corp.		2,277		77,964
Fiserv Inc.^a		1,472		94,900
Flextronics International Ltd.^a,b		3,979		43,928
FLIR Systems Inc.		1,012		34,195
Flowserve Corp.		1,035		78,546
Fluor Corp.		989		73,077
FMC Corp.		851		56,285
FMC Technologies Inc.^a		1,219		75,383
FNF Group^a		1,242		35,161
Ford Motor Co.		17,296		301,123
Fossil Group Inc.^a		322		32,615
Franklin Resources Inc.		2,254		127,396
Freeport-McMoRan Inc.		5,384		195,816
Frontier Communications Corp.		6,049		41,133
Gap Inc. (The)		1,403		64,748
Garmin Ltd.		621		33,739
General Dynamics Corp.		1,518		187,094
General Electric Co.		48,806		1,267,980
General Growth Properties Inc.		2,691		66,118
General Mills Inc.		3,013		160,834
General Motors Co.		5,571		193,871
Genuine Parts Co.		759		66,595
Gilead Sciences Inc.^a		7,820		841,276
Goldman Sachs Group Inc. (The)		2,047		366,638
Google Inc. Class A^a		1,403		817,051
Google Inc. Class C^a		1,449		828,248
H&R Block Inc.		1,817		60,924
Halliburton Co.		4,485		303,231
Harley-Davidson Inc.		943		59,937
Harris Corp.		690		49,259
Hartford Financial Services Group Inc. (The)		2,139		79,250
Hasbro Inc.		575		30,277


Security	Shares		Value

HCA Holdings Inc.^a		1,610	$	112,410
HCP Inc.		2,599		112,615
Health Care REIT Inc.		1,564		105,695
Helmerich & Payne Inc.		759		79,733
Henry Schein Inc.^a		529		63,316
Hershey Co. (The)		851		77,798
Hertz Global Holdings Inc.^a		2,677		79,105
Hess Corp.		1,541		155,795
Hewlett-Packard Co.		9,614		365,332
HollyFrontier Corp.		1,012		50,630
Hologic Inc.^a		1,587		39,469
Home Depot Inc. (The)		6,854		640,849
Honeywell International Inc.		3,611		343,876
Hormel Foods Corp.		966		48,957
Hospira Inc.^a		920		49,441
Host Hotels & Resorts Inc.		4,945		112,845
Humana Inc.		828		106,597
IHS Inc. Class A^a		414		58,983
Illinois Tool Works Inc.		2,047		180,566
Illumina Inc.^a		759		136,134
Ingersoll-Rand PLC		1,679		101,076
Integrys Energy Group Inc.		552		37,475
Intel Corp.		24,196		844,924
Intercontinental Exchange Inc.		627		118,503
International Business Machines Corp.		4,899		942,078
International Flavors & Fragrances Inc.		529		53,741
International Paper Co.		2,024		98,063
Interpublic Group of Companies Inc. (The)		2,553		49,860
Intuit Inc.		1,449		120,528
Intuitive Surgical Inc.^a		207		97,292
Invesco Ltd.		2,415		98,629
Iron Mountain Inc.		874		31,447
J.B. Hunt Transport Services Inc.		598		45,179
J.M. Smucker Co. (The)		621		63,715
J.P. Morgan Chase & Co.		18,538		1,102,084
Jacobs Engineering Group Inc.^a		920		49,597
Johnson & Johnson		13,685		1,419,545
Johnson Controls Inc.		3,266		159,413
Joy Global Inc.		644		40,669
Juniper Networks Inc.		2,760		64,004
Kansas City Southern Industries Inc.		621		71,639
Kellogg Co.		1,219		79,198


SCHEDULES OF INVESTMENTS			37

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

Keurig Green Mountain Inc.		713	$	95,057
KeyCorp		4,439		60,415
Kimberly-Clark Corp.		1,725		186,300
Kimco Realty Corp.		2,047		48,084
Kinder Morgan Inc.		3,243		130,563
Kinder Morgan Management LLC^a,b		734		71,726
KLA-Tencor Corp.		966		73,822
Kohl’s Corp.		1,104		64,904
Kraft Foods Group Inc.		2,737		161,209
Kroger Co. (The)		2,806		143,050
L Brands Inc.		1,219		77,833
L-3 Communications Holdings Inc.		575		63,221
Laboratory Corp. of America Holdings^a		506		54,258
Lam Research Corp.		920		66,157
Las Vegas Sands Corp.		2,093		139,205
Legg Mason Inc.		874		43,106
Leggett & Platt Inc.		874		30,669
Leucadia National Corp.		1,794		44,724
Level 3 Communications Inc.^a		920		41,363
Liberty Global PLC Series A^a		1,426		62,273
Liberty Global PLC Series C NVS^a		2,737		114,762
Liberty Interactive Corp. Series A^a		2,760		81,475
Liberty Media Corp. Class A^a		598		29,440
Liberty Media Corp. Class C^a		1,144		55,450
Liberty Property Trust		1,173		41,548
Lincoln National Corp.		1,541		84,817
Linear Technology Corp.		1,334		60,177
LinkedIn Corp. Class A^a		529		119,422
Lockheed Martin Corp.		1,380		240,120
Loews Corp.		1,380		60,361
Lorillard Inc.		2,001		119,460
Lowe’s Companies Inc.		5,451		286,232
Lululemon Athletica Inc.^a		597		23,838
LyondellBasell Industries NV Class A		2,323		265,635
M&T Bank Corp.		552		68,244
Macerich Co. (The)		989		64,572
Macy’s Inc.		2,001		124,642
Manpowergroup Inc.		621		48,177
Marathon Oil Corp.		3,105		129,447
Marathon Petroleum Corp.		1,610		146,526
Marriott International Inc. Class A		1,495		103,753
Marsh & McLennan Companies Inc.		2,300		122,130
Martin Marietta Materials Inc.		322		42,169


Security	Shares		Value

Marvell Technology Group Ltd.		2,760	$	38,392
Masco Corp.		2,116		49,663
MasterCard Inc. Class A		5,359		406,266
Mattel Inc.		1,610		55,529
Maxim Integrated Products Inc.		1,725		53,285
McCormick & Co. Inc. NVS		782		54,498
McDonald’s Corp.		4,600		431,112
McGraw Hill Financial Inc.		1,357		110,093
McKesson Corp.		1,173		228,770
MDU Resources Group Inc.		1,449		45,368
Mead Johnson Nutrition Co. Class A		1,035		98,946
MeadWestvaco Corp.		1,334		57,362
Medtronic Inc.		4,853		309,864
Merck & Co. Inc.		14,444		868,229
MetLife Inc.		4,531		248,027
MGM Resorts International^a		2,415		59,095
Microchip Technology Inc.		1,196		58,401
Micron Technology Inc.^a		5,589		182,201
Microsoft Corp.		39,261		1,783,627
Mohawk Industries Inc.^a		345		50,377
Molson Coors Brewing Co. Class B NVS		874		64,632
Mondelez International Inc. Class A		8,257		298,821
Monsanto Co.		2,645		305,894
Monster Beverage Corp.^a		828		73,203
Moody’s Corp.		1,081		101,149
Morgan Stanley		7,383		253,311
Mosaic Co. (The)		1,541		73,598
Motorola Solutions Inc.		1,196		71,042
Murphy Oil Corp.		897		56,036
Mylan Inc.^a		2,001		97,249
Nabors Industries Ltd.		1,610		43,808
NASDAQ OMX Group Inc. (The)		805		34,993
National Oilwell Varco Inc.		1,909		164,995
Navient Corp.		2,576		46,213
NetApp Inc.		1,840		77,574
Netflix Inc.^a		322		153,800
New York Community Bancorp Inc.		1,886		30,082
Newell Rubbermaid Inc.		1,495		50,112
News Corp. Class A NVS^a		1,958		34,510
NextEra Energy Inc.		2,226		219,150
Nielsen NV		1,265		59,442
Nike Inc. Class B		3,680		289,064
NiSource Inc.		1,679		66,606
Noble Energy Inc.		1,794		129,419


38		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

Nordstrom Inc.		805	$	55,746
Norfolk Southern Corp.		1,610		172,270
Northeast Utilities		1,587		72,827
Northern Trust Corp.		1,150		79,753
Northrop Grumman Corp.		1,058		134,599
NRG Energy Inc.		1,955		60,175
Nucor Corp.		1,610		87,455
NVIDIA Corp.		3,358		65,313
O’Reilly Automotive Inc.^a		598		93,276
Occidental Petroleum Corp.		3,933		407,970
Omnicare Inc.		713		45,468
Omnicom Group Inc.		1,311		94,405
ONEOK Inc.		1,129		79,256
Oracle Corp.		17,871		742,183
Owens-Illinois Inc.^a		1,035		31,868
PACCAR Inc.		1,817		114,126
Pall Corp.		736		62,096
Parker Hannifin Corp.		828		95,634
PartnerRe Ltd.		276		30,826
Patterson Companies Inc.		644		25,934
Paychex Inc.		1,748		72,804
People’s United Financial Inc.		1,978		29,571
Pepco Holdings Inc.		1,564		43,104
PepsiCo Inc.		7,222		667,963
Perrigo Co. PLC		736		109,473
PetSmart Inc.		598		42,799
Pfizer Inc.		31,073		913,235
PG&E Corp.		2,507		116,525
Pharmacyclics Inc.^a		299		37,193
Philip Morris International Inc.		7,544		645,616
Phillips 66		2,990		260,190
Pinnacle West Capital Corp.		713		40,605
Pioneer Natural Resources Co.		759		158,365
Plum Creek Timber Co. Inc.^b		1,127		45,790
PNC Financial Services Group Inc. (The)^c		2,507		212,468
PPG Industries Inc.		805		165,717
PPL Corp.		3,266		113,102
Praxair Inc.		1,311		172,462
Precision Castparts Corp.		759		185,242
Priceline Group Inc. (The)^a		276		343,430
Principal Financial Group Inc.		1,541		83,661
Procter & Gamble Co. (The)		12,903		1,072,368
Progressive Corp. (The)		2,507		62,725
Prologis Inc.		2,806		114,878


Security	Shares		Value

Prudential Financial Inc.		2,300	$	206,310
Public Service Enterprise Group Inc.		3,174		118,676
Public Storage		759		132,962
PulteGroup Inc.		2,070		39,785
PVH Corp.		460		53,700
QEP Resources Inc.		1,012		35,997
QUALCOMM Inc.		8,234		626,607
Quanta Services Inc.^a		1,449		52,657
Quest Diagnostics Inc.		828		52,338
Ralph Lauren Corp.		299		50,591
Range Resources Corp.		828		65,073
Raytheon Co.		1,633		157,323
Realty Income Corp.		1,104		49,371
Red Hat Inc.^a		1,035		63,052
Regency Centers Corp.		759		43,369
Regeneron Pharmaceuticals Inc.^a		437		153,177
Regions Financial Corp.		7,038		71,436
RenaissanceRe Holdings Ltd.		299		30,615
Republic Services Inc.		1,564		61,512
Reynolds American Inc.		1,702		99,516
Robert Half International Inc.		966		48,503
Rock-Tenn Co. Class A		920		45,227
Rockwell Automation Inc.		782		91,189
Rockwell Collins Inc.		828		63,739
Roper Industries Inc.		621		93,498
Ross Stores Inc.		1,150		86,733
Royal Caribbean Cruises Ltd.		851		54,260
Safeway Inc.		1,334		46,397
Salesforce.com Inc.^a,b		3,243		191,629
SanDisk Corp.		1,242		121,666
SBA Communications Corp. Class A^a		851		93,857
SCANA Corp.		759		39,422
Schlumberger Ltd.		6,463		708,603
Scripps Networks Interactive Inc. Class A		506		40,333
Seagate Technology PLC		1,817		113,708
SEI Investments Co.		1,242		47,066
Sempra Energy		1,173		124,303
Sherwin-Williams Co. (The)		483		105,347
Sigma-Aldrich Corp.		713		74,152
Simon Property Group Inc.		1,544		262,526
Sirius XM Holdings Inc.^a		20,884		75,809
SL Green Realty Corp.		453		49,536
Southern Co. (The)		3,956		175,646


SCHEDULES OF INVESTMENTS			39

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

Southwestern Energy Co.^a		1,794	$	73,877
Spectra Energy Corp.		3,082		128,396
Sprint Corp.^a,b		5,687		31,904
SPX Corp.		276		28,718
St. Jude Medical Inc.		1,587		104,091
Stanley Black & Decker Inc.		874		79,971
Staples Inc.		2,921		34,117
Starbucks Corp.		3,818		297,079
Starwood Hotels & Resorts Worldwide Inc.		1,104		93,332
State Street Corp.		2,323		167,326
Stericycle Inc.^a		506		60,138
Stryker Corp.		1,472		122,632
SunTrust Banks Inc.		2,691		102,473
Superior Energy Services Inc.		943		33,797
Symantec Corp.		3,611		87,675
Synopsys Inc.^a		1,035		42,332
Sysco Corp.		2,668		100,930
T. Rowe Price Group Inc.		1,334		108,047
Target Corp.		2,852		171,320
TD Ameritrade Holding Corp.		1,403		46,453
TE Connectivity Ltd.		2,024		126,864
Teradata Corp.^a		989		45,168
Tesla Motors Inc.^a,b		460		124,062
Texas Instruments Inc.		5,348		257,667
Textron Inc.		1,679		63,802
Thermo Fisher Scientific Inc.		1,886		226,716
Tiffany & Co.		644		65,005
Time Warner Cable Inc.		1,403		207,546
Time Warner Inc.		4,462		343,708
TJX Companies Inc. (The)		3,565		212,510
Toll Brothers Inc.^a		805		28,650
Torchmark Corp.		724		39,494
Total System Services Inc.		1,219		38,350
Tractor Supply Co.		782		52,355
TransDigm Group Inc.		345		64,857
Travelers Companies Inc. (The)		1,656		156,840
Trimble Navigation Ltd.^a		1,380		45,899
TRW Automotive Holdings Corp.^a		598		57,581
Twenty-First Century Fox Inc. Class A		7,889		279,428
Twenty-First Century Fox Inc. Class B		1,771		60,993
Twitter Inc.^a		1,621		80,645
Tyco International Ltd.		2,576		114,941
Tyson Foods Inc. Class A		1,771		67,404
U.S. Bancorp		8,625		364,665


Security	Shares		Value

UDR Inc.		1,817	$	54,365
Ulta Salon, Cosmetics & Fragrance Inc.^a		368		35,810
Union Pacific Corp.		4,577		481,821
United Parcel Service Inc. Class B		3,381		329,073
United Technologies Corp.		4,255		459,455
UnitedHealth Group Inc.		4,876		422,652
Unum Group		1,265		45,882
Urban Outfitters Inc.^a		667		26,540
Valero Energy Corp.		2,806		151,917
Varian Medical Systems Inc.^a		598		50,842
Ventas Inc.		1,617		106,366
VeriSign Inc.^a,b		920		52,509
Verisk Analytics Inc. Class A^a		851		54,626
Verizon Communications Inc.		20,217		1,007,211
Vertex Pharmaceuticals Inc.^a		1,196		111,910
VF Corp.		1,932		123,880
Viacom Inc. Class B NVS		2,070		167,981
Visa Inc. Class A		2,553		542,564
VMware Inc. Class A^a,b		437		43,079
Vornado Realty Trust		966		102,270
Vulcan Materials Co.		713		45,190
W.R. Berkley Corp.		506		24,465
W.W. Grainger Inc.		345		84,939
Wal-Mart Stores Inc.		7,567		571,308
Walgreen Co.		4,508		272,824
Walt Disney Co. (The)		8,257		742,139
Waste Management Inc.		2,093		98,308
Waters Corp.^a		437		45,199
WellPoint Inc.		1,495		174,182
Wells Fargo & Co.		24,357		1,252,924
Western Digital Corp.		1,127		116,092
Western Union Co.		3,105		54,244
Weyerhaeuser Co.		3,220		109,319
Whirlpool Corp.		437		66,870
Whiting Petroleum Corp.^a		667		61,804
Williams Companies Inc. (The)		3,450		205,068
Willis Group Holdings PLC		782		32,821
Windstream Holdings Inc.		2,783		31,448
Wisconsin Energy Corp.		1,242		56,300
Wyndham Worldwide Corp.		897		72,603
Wynn Resorts Ltd.		478		92,197
Xcel Energy Inc.		2,346		75,189
Xerox Corp.		6,509		89,889
Xilinx Inc.		1,495		63,164


40		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2014


Security	Shares		Value

XL Group PLC		1,449	$	49,527
Xylem Inc.		1,196		44,563
Yahoo! Inc.^a		5,566		214,347
Yum! Brands Inc.		2,300		166,589
Zimmer Holdings Inc.		897		89,081
Zoetis Inc.		2,760		97,814

				93,780,305

TOTAL COMMON STOCKS
(Cost: $154,461,333)				167,716,033

PREFERRED STOCKS — 0.21%

GERMANY — 0.21%
Henkel AG & Co. KGaA		897		94,286
Porsche Automobil Holding SE		736		67,135
Volkswagen AG		828		186,336

				347,757

TOTAL PREFERRED STOCKS
(Cost: $372,367)				347,757

SHORT-TERM INVESTMENTS — 1.20%

MONEY MARKET FUNDS — 1.20%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		1,762,887		1,762,887
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		110,979		110,979
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		151,852		151,852

				2,025,718

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,025,718)				2,025,718

TOTAL INVESTMENTS IN SECURITIES — 100.81%
(Cost: $156,859,418)				170,089,508
Other Assets, Less Liabilities — (0.81)%				(1,361,095	)

NET ASSETS — 100.00%			$	168,728,413

FDR — Fiduciary Depositary Receipts

NVS — Non-Voting Shares

SDR — Swedish Depositary Receipts

a	Non-income earning security.

b	All or a portion of this security represents a security on loan. 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.

e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			41

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2014


	iShares MSCI All Country World Minimum Volatility ETF			iShares MSCI Emerging Markets EMEA ETF			iShares MSCI Frontier 100 ETF

ASSETS
Investments, at cost:
Unaffiliated	$	1,101,752,796		$	10,532,389		$	715,158,602
Affiliated (Note 2)		36,552,239			29,958			—

Total cost of investments	$	1,138,305,035		$	10,562,347		$	715,158,602

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	1,277,118,380		$	10,340,482		$	796,724,462
Affiliated (Note 2)		36,552,239			29,958			—

Total fair value of investments		1,313,670,619			10,370,440			796,724,462
Foreign currency, at value^b		2,234,626			8,143			591,199
Cash		583,801			34,927			2,119,357
Receivables:
Investment securities sold		1,486,115			114,162			37,514,414
Dividends and interest		3,747,070			11,437			333,827

Total Assets		1,321,722,231			10,539,109			837,283,259


LIABILITIES
Payables:
Investment securities purchased		1,875,719			145,255			35,712,007
Collateral for securities on loan (Note 1)		36,552,239			29,958			—
Deferred foreign capital gains taxes (Note 1)		67,281			—			1,696,304
Investment advisory fees (Note 2)		214,528			4,320			526,185

Total Liabilities		38,709,767			179,533			37,934,496


NET ASSETS	$	1,283,012,464		$	10,359,576		$	799,348,763


Net assets consist of:
Paid-in capital	$	1,122,340,345		$	10,937,826		$	706,235,701
Undistributed (distributions in excess of) net investment income		5,984,087			84,072			(169,855	)
Undistributed net realized gain (accumulated net realized loss)		(20,653,807	)		(470,285	)		12,849,871
Net unrealized appreciation (depreciation)		175,341,839			(192,037	)		80,433,046

NET ASSETS	$	1,283,012,464		$	10,359,576		$	799,348,763


Shares outstanding^c		18,800,000			200,000			21,150,000


Net asset value per share	$	68.25		$	51.80		$	37.79

^a	Securities on loan with values of $35,033,138, $26,966 and $ —, respectively. See Note 1.

^b	Cost of foreign currency: $2,245,780, $8,214 and $591,655, respectively.

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

See notes to financial statements.


42		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI World ETF

ASSETS
Investments, at cost:
Unaffiliated	$	154,444,531
Affiliated (Note 2)		2,414,887

Total cost of investments	$	156,859,418

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	167,623,256
Affiliated (Note 2)		2,466,252

Total fair value of investments		170,089,508
Foreign currency, at value^b		130,436
Cash		210
Receivables:
Investment securities sold		96,667
Dividends and interest		406,492

Total Assets		170,723,313


LIABILITIES
Payables:
Investment securities purchased		87,251
Collateral for securities on loan (Note 1)		1,873,866
Investment advisory fees (Note 2)		33,783

Total Liabilities		1,994,900


NET ASSETS	$	168,728,413


Net assets consist of:
Paid-in capital	$	155,432,877
Undistributed net investment income		568,421
Accumulated net realized loss		(500,347	)
Net unrealized appreciation		13,227,462

NET ASSETS	$	168,728,413


Shares outstanding^c		2,300,000


Net asset value per share	$	73.36

^a	Securities on loan with a value of $1,794,237. See Note 1.

^b	Cost of foreign currency: $131,035.

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

See notes to financial statements.


FINANCIAL STATEMENTS			43

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI All Country World Minimum Volatility ETF			iShares MSCI Emerging Markets EMEA ETF			iShares MSCI Frontier 100 ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	32,306,956		$	280,535		$	21,405,222
Interest — unaffiliated		—			—			3,085
Interest — affiliated (Note 2)		205			1			777
Securities lending income — affiliated (Note 2)		141,778			2,301			—

		32,448,939			282,837			21,409,084
Less: Other foreign taxes (Note 1)		(67,343	)		—			—

Total investment income		32,381,596			282,837			21,409,084


EXPENSES
Investment advisory fees (Note 2)		3,757,055			66,881			4,380,187
Commitment fees (Note 7)		—			—			691
Interest expense (Note 7)		—			—			5,370

Total expenses		3,757,055			66,881			4,386,248
Less investment advisory fees waived (Note 2)		(1,500,283	)		(18,687	)		—

Net expenses		2,256,772			48,194			4,386,248

Net investment income		30,124,824			234,643			17,022,836


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^b		(14,629,896	)		(324,407	)		16,809,925
Investments — affiliated (Note 2)		(31,409	)		—			—
In-kind redemptions — unaffiliated		30,364,712			—			4,349,669
In-kind redemptions — affiliated (Note 2)		2,798			—			—
Foreign currency transactions		14,994			(4,431	)		(1,110,990	)

Net realized gain (loss)		15,721,199			(328,838	)		20,048,604

Net change in unrealized appreciation/depreciation on:
Investments^c		127,055,410			562,832			81,913,054
Translation of assets and liabilities in foreign currencies		(12,543	)		80			(295	)

Net change in unrealized appreciation/depreciation		127,042,867			562,912			81,912,759

Net realized and unrealized gain		142,764,066			234,074			101,961,363

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	172,888,890		$	468,717		$	118,984,199

^a	Net of foreign withholding tax of $1,685,749, $39,973 and $1,863,335, respectively.

^b	Net of foreign capital gains taxes of $ —, $ — and $578,568, respectively.

^c	Net of deferred foreign capital gains taxes of $ —, $ — and $1,128,254, respectively.

See notes to financial statements.


44		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI World ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	3,491,968
Dividends — affiliated (Note 2)		8,473
Interest — affiliated (Note 2)		12
Securities lending income — affiliated (Note 2)		13,685

Total investment income		3,514,138


EXPENSES
Investment advisory fees (Note 2)		299,743

Total expenses		299,743

Net investment income		3,214,395


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(452,123	)
Investments — affiliated (Note 2)		13
In-kind redemptions — unaffiliated		3,477,356
In-kind redemptions — affiliated (Note 2)		9,195
Foreign currency transactions		3,719

Net realized gain		3,038,160

Net change in unrealized appreciation/depreciation on:
Investments		13,583,672
Translation of assets and liabilities in foreign currencies		(2,428	)

Net change in unrealized appreciation/depreciation		13,581,244

Net realized and unrealized gain		16,619,404

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	19,833,799

^a	Net of foreign withholding tax of $151,434.

See notes to financial statements.


FINANCIAL STATEMENTS			45

Statements of Changes in Net Assets

iSHARES^®, INC.



	iShares MSCI All Country World Minimum Volatility ETF						iShares MSCI Emerging Markets EMEA ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	30,124,824		$	23,353,046		$	234,643		$	162,306
Net realized gain (loss)		15,721,199			15,102,144			(328,838	)		437,250
Net change in unrealized appreciation/depreciation		127,042,867			28,767,070			562,912			(407,972	)

Net increase in net assets resulting from operations		172,888,890			67,222,260			468,717			191,584


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(29,115,840	)		(21,734,941	)		(158,907	)		(177,671	)

Total distributions to shareholders		(29,115,840	)		(21,734,941	)		(158,907	)		(177,671	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		261,249,242			492,714,983			5,251,709			—
Cost of shares redeemed		(129,769,428	)		(109,218,290	)		—			(5,559,099	)

Net increase (decrease) in net assets from capital share transactions		131,479,814			383,496,693			5,251,709			(5,559,099	)

INCREASE (DECREASE) IN NET ASSETS		275,252,864			428,984,012			5,561,519			(5,545,186	)

NET ASSETS
Beginning of year		1,007,759,600			578,775,588			4,798,057			10,343,243

End of year	$	1,283,012,464		$	1,007,759,600		$	10,359,576		$	4,798,057

Undistributed net investment income included in net assets at end of year	$	5,984,087		$	4,621,411		$	84,072		$	12,385


SHARES ISSUED AND REDEEMED
Shares sold		4,000,000			8,200,000			100,000			—
Shares redeemed		(2,000,000	)		(1,800,000	)		—			(100,000	)

Net increase (decrease) in shares outstanding		2,000,000			6,400,000			100,000			(100,000	)

See notes to financial statements.


46		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Frontier 100 ETF						iShares MSCI World ETF
	Year ended August 31, 2014			Period from September 12, 2012^a to August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	17,022,836		$	2,027,213		$	3,214,395		$	313,385
Net realized gain (loss)		20,048,604			(2,074,597	)		3,038,160			1,592,421
Net change in unrealized appreciation/depreciation		81,912,759			(1,479,713	)		13,581,244			(936,157	)

Net increase (decrease) in net assets resulting from operations		118,984,199			(1,527,097	)		19,833,799			969,649


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(15,334,501	)		(2,007,790	)		(2,735,328	)		(292,821	)
Return of capital		—			(180,295	)		—			—

Total distributions to shareholders		(15,334,501	)		(2,188,085	)		(2,735,328	)		(292,821	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		581,098,884			294,121,892			148,427,324			24,918,447
Cost of shares redeemed		(165,483,378	)		(10,323,151	)		(21,501,639	)		(11,580,026	)

Net increase in net assets from capital share transactions		415,615,506			283,798,741			126,925,685			13,338,421

INCREASE IN NET ASSETS		519,265,204			280,083,559			144,024,156			14,015,249

NET ASSETS
Beginning of year		280,083,559			—			24,704,257			10,689,008

End of year	$	799,348,763		$	280,083,559		$	168,728,413		$	24,704,257

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(169,855	)	$	(241,782	)	$	568,421		$	85,201


SHARES ISSUED AND REDEEMED
Shares sold		16,150,000			9,650,000			2,200,000			400,000
Shares redeemed		(4,300,000	)		(350,000	)		(300,000	)		(200,000	)

Net increase in shares outstanding		11,850,000			9,300,000			1,900,000			200,000

^a	Commencement of operations.

See notes to financial statements.


FINANCIAL STATEMENTS			47

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI All Country World Minimum Volatility ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Oct. 18, 2011^a to Aug. 31, 2012
Net asset value, beginning of period	$	59.99		$	55.65		$	50.02

Income from investment operations:
Net investment income^b		1.72			1.68			1.49
Net realized and unrealized gain^c		8.18			4.20			4.67

Total from investment operations		9.90			5.88			6.16

Less distributions from:
Net investment income		(1.64	)		(1.54	)		(0.53	)

Total distributions		(1.64	)		(1.54	)		(0.53	)

Net asset value, end of period	$	68.25		$	59.99		$	55.65


Total return		16.70	%		10.69	%		12.41	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,283,012		$	1,007,760		$	578,776
Ratio of expenses to average net assets^e		0.20	%		0.20	%		0.23	%
Ratio of expenses to average net assets prior to waived fees^e		0.33	%		0.34	%		0.34	%
Ratio of net investment income to average net assets^e		2.67	%		2.83	%		3.17	%
Portfolio turnover rate^f		24	%		13	%		22	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013, and the period ended August 31, 2012 were 23%, 13%, and 22%, respectively. See Note 4.

See notes to financial statements.


48		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI Emerging Markets EMEA ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Jan. 18, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	47.98		$	51.72		$	51.16

Income from investment operations:
Net investment income^b		1.23			1.26			1.43
Net realized and unrealized gain (loss)^c		3.38			(3.22	)		0.02

Total from investment operations		4.61			(1.96	)		1.45

Less distributions from:
Net investment income		(0.79	)		(1.78	)		(0.89	)

Total distributions		(0.79	)		(1.78	)		(0.89	)

Net asset value, end of period	$	51.80		$	47.98		$	51.72


Total return		9.61	%		(3.95	)%		2.91	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	10,360		$	4,798		$	10,343
Ratio of expenses to average net assets^e		0.49	%		0.49	%		0.49	%
Ratio of expenses to average net assets prior to waived fees^e		0.68	%		0.68	%		0.68	%
Ratio of net investment income to average net assets^e		2.39	%		2.39	%		4.46	%
Portfolio turnover rate^f		18	%		8	%		5	%

^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			49

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI Frontier 100 ETF


	Year ended Aug. 31, 2014			Period from Sep. 12, 2012^a to Aug. 31, 2013
Net asset value, beginning of period	$	30.12		$	25.25

Income from investment operations:
Net investment income^b		1.09			0.67
Net realized and unrealized gain^c		7.47			4.51

Total from investment operations		8.56			5.18

Less distributions from:
Net investment income		(0.89	)		(0.28	)
Return of capital		—			(0.03	)

Total distributions		(0.89	)		(0.31	)

Net asset value, end of period	$	37.79		$	30.12


Total return		28.56	%		20.54	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	799,349		$	280,084
Ratio of expenses to average net assets^e		0.79	%		0.79	%
Ratio of net investment income to average net assets^e		3.07	%		2.32	%
Portfolio turnover rate^f		61	%		18	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the year ended August 31, 2014 and period ended August 31, 2013 were 42% and 10%, respectively. See Note 4.

See notes to financial statements.


50		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI World ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Jan. 10, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	61.76		$	53.45		$	50.32

Income from investment operations:
Net investment income^b		1.81			1.40			0.98
Net realized and unrealized gain^c		11.16			8.03			2.89

Total from investment operations		12.97			9.43			3.87

Less distributions from:
Net investment income		(1.37	)		(1.12	)		(0.74	)

Total distributions		(1.37	)		(1.12	)		(0.74	)

Net asset value, end of period	$	73.36		$	61.76		$	53.45


Total return		21.07	%		17.84	%		7.76	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	168,728		$	24,704		$	10,689
Ratio of expenses to average net assets^e		0.24	%		0.24	%		0.24	%
Ratio of net investment income to average net assets^e		2.57	%		2.34	%		2.91	%
Portfolio turnover rate^f		5	%		5	%		3	%

^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			51

Notes to Financial Statements

iSHARES^®, INC.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):


iShares ETF		Diversification Classification
MSCI All Country World Minimum Volatility		Non-diversified
MSCI Emerging Markets EMEA		Non-diversified
MSCI Frontier 100		Non-diversified
MSCI World		Diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).


52		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.


NOTES TO FINANCIAL STATEMENTS			53

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2		Level 3			Total
MSCI All Country World Minimum Volatility
Assets:
Common Stocks	$	1,273,829,321	$	—	$	—		$	1,273,829,321
Preferred Stocks		3,200,554		—		—			3,200,554
Rights		—		88,505		—			88,505
Money Market Funds		36,552,239		—		—			36,552,239

	$	1,313,582,114	$	88,505	$	—		$	1,313,670,619


MSCI Emerging Markets EMEA
Assets:
Common Stocks	$	10,206,268	$	—	$	19		$	10,206,287
Preferred Stocks		134,195		—		—			134,195
Money Market Funds		29,958		—		—			29,958

	$	10,370,421	$	—	$	19		$	10,370,440


MSCI Frontier 100
Assets:
Common Stocks	$	796,724,364	$	98	$	—		$	796,724,462
Convertible Bonds		—		—		0	^a		0	^a

	$	796,724,364	$	98	$	0	^a	$	796,724,462


MSCI World
Assets:
Common Stocks	$	167,707,002	$	9,031	$	—		$	167,716,033
Preferred Stocks		347,757		—		—			347,757
Money Market Funds		2,025,718		—		—			2,025,718

	$	170,080,477	$	9,031	$	—		$	170,089,508

Rounds to less than $1.

SECURITY TRANSACTIONS AND INCOME RECOGNITION


54		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			55

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of each Fund’s securities lending agreements which are subject to offset under an MSLA as of August 31, 2014:


iShares ETF	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI All Country World Minimum Volatility	$	35,033,138	$	35,033,138	$	—
MSCI Emerging Markets EMEA		26,966		26,966		—
MSCI World		1,794,237		1,794,237		—

RECENT ACCOUNTING STANDARD

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*


56		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For its investment advisory services to the iShares MSCI All Country World Minimum Volatility ETF, 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
	0.350	%	First $30 billion
	0.320		Over $30 billion, up to and including $60 billion
	0.280		Over $60 billion, up to and including $90 billion
	0.252		Over $90 billion^a

Breakpoint level added effective July 1, 2014.

BFA has voluntarily waived a portion of its investment advisory fees for the iShares MSCI All Country World Minimum Volatility ETF in the amount of $1,493,893.

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI All Country World Minimum Volatility ETF through December 31, 2015 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 year ended August 31, 2014, BFA waived its investment advisory fees for the iShares MSCI All Country World Minimum Volatility ETF in the amount of $6,390.

Effective September 12, 2014, BFA has contractually agreed to waive an additional portion of its investment advisory fees for the iShares MSCI All Country World Minimum Volatility ETF through December 31, 2015 in order to limit total annual operating expenses to 0.20% of average daily net assets.

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows:


iShares ETF	Investment Advisory Fee
MSCI Emerging Markets EMEA		0.68	%
MSCI Frontier 100		0.79
MSCI World		0.24

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI Emerging Markets EMEA ETF through December 31, 2015 in order to limit total annual operating expenses to 0.49% of average daily net assets.


NOTES TO FINANCIAL STATEMENTS			57

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Pursuant to a securities lending agreement effective January 1, 2014, (i) the iShares MSCI World ETF (the “Group 1 Fund”) retains 70% of securities lending income and (ii) the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.

Pursuant to a securities lending agreement effective January 1, 2014, (i) the iShares MSCI All Country World Minimum Volatility ETF, iShares MSCI Emerging Markets EMEA ETF and iShares MSCI Frontier 100 ETF (the “Group 2 Funds”) retain 75% of securities lending income and (ii) these amounts can never be less than 65% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in calendar year 2013 and pursuant to a securities lending agreement, the Group 1 Fund will (i) receive for the remainder of that calendar year 75% of securities lending income and (ii) the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. Each Group 2 Fund will (i) receive for the remainder of that calendar year 80% of securities lending income and (ii) these amounts can never be less than 65% of the total of securities lending income plus the collateral investment fees.

For the year ended August 31, 2014, each Fund paid to BTC the following amounts in total for securities lending agent services and collateral investment fees:


iShares ETF	Fees Paid to BTC
MSCI All Country World Minimum Volatility	$	69,852
MSCI Emerging Markets EMEA		828
MSCI World		6,227

Prior to January 1, 2014, each Fund retained 65% of securities lending income and paid no collateral investment fees.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Certain Funds, in order to improve their portfolio liquidity and their ability to track their respective underlying index, may invest in shares of other iShares funds that invest in securities in each Fund’s respective underlying index.


58		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the year ended August 31, 2014, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:


iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of year		Shares Purchased		Shares Sold			Shares Held at End of year		Value at End of year		Dividend Income		Net Realized Gain (Loss)
MSCI All Country World Minimum Volatility
iShares India 50 ETF		135,154		5,900		(141,054	)		—	$	—	$	—	$	(28,611	)

MSCI World
BlackRock Inc.		124		681		(115	)		690	$	228,066	$	4,693	$	3,996
PNC Financial Services Group Inc. (The)		436		2,398		(327	)		2,507		212,468		3,780		5,212

										$	440,534	$	8,473	$	9,208

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 year ended August 31, 2014 were as follows:


iShares ETF	Purchases		Sales
MSCI All Country World Minimum Volatility	$	349,492,598	$	264,969,951
MSCI Emerging Markets EMEA		1,822,609		1,712,896
MSCI Frontier 100		745,303,855		333,120,995
MSCI World		7,333,338		6,002,597

In-kind transactions (see Note 4) for the year ended August 31, 2014 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI All Country World Minimum Volatility	$	169,594,921	$	124,142,735
MSCI Emerging Markets EMEA		5,229,082		—
MSCI Frontier 100		14,632,474		14,254,486
MSCI World		146,778,646		21,248,638

4.	*CAPITAL SHARE TRANSACTIONS*


NOTES TO FINANCIAL STATEMENTS			59

Notes to Financial Statements (Continued)

iSHARES^®, INC.

solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s 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 may also 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. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

5.	*MARKET AND CREDIT RISK*

MARKET RISK


60		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

sell, hold, receive or deliver the affected securities or other securities of such issuers. The Sanctioning Bodies could also institute broader sanctions on Russia. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. Current or future sanctions may result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. These retaliatory measures may include the immediate freeze of Russian assets held by a Fund.

CREDIT RISK

6.	*INCOME TAX INFORMATION*

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of August 31, 2014, attributable to the use of equalization, passive foreign investment companies, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI All Country World Minimum Volatility	$	29,914,303	$	353,692		$	(30,267,995	)
MSCI Emerging Markets EMEA		—		(4,049	)		4,049
MSCI Frontier 100		7,001,749		(1,616,408	)		(5,385,341	)
MSCI World		3,474,085		4,153			(3,478,238	)

The tax character of distributions paid during the years ended August 31, 2014 and August 31, 2013 was as follows:


iShares ETF	2014		2013
MSCI All Country World Minimum Volatility
Ordinary income	$	29,115,840	$	21,734,941


NOTES TO FINANCIAL STATEMENTS			61

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF	2014		2013
MSCI Emerging Markets EMEA
Ordinary income	$	158,907	$	177,671


MSCI Frontier 100
Ordinary income	$	15,334,501	$	2,007,790
Return of capital		—		180,295

	$	15,334,501	$	2,188,085


MSCI World
Ordinary income	$	2,735,328	$	292,821

As of August 31, 2014, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a			Qualified Late-Year Losses^b			Total
MSCI All Country World Minimum Volatility	$	6,482,255	$	—	$	(5,163,254	)	$	169,820,245		$	(10,467,127	)	$	160,672,119
MSCI Emerging Markets EMEA		89,048		—		(138,849	)		(212,440	)		(316,009	)		(578,250	)
MSCI Frontier 100		21,438,582		3,227,083		—			68,447,397			—			93,113,062
MSCI World		644,116		—		(82,372	)		13,059,431			(325,639	)		13,295,536

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and the realization for tax purpose of unrealized gains on investments in passive foreign investment companies.

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of August 31, 2014, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:


iShares ETF	Non- Expiring
MSCI All Country World Minimum Volatility	$	5,163,254
MSCI Emerging Markets EMEA		138,849
MSCI World		82,372


62		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI All Country World Minimum Volatility	$	1,143,826,629	$	184,277,614	$	(14,433,624	)	$	169,843,990
MSCI Emerging Markets EMEA		10,582,759		1,006,669		(1,218,988	)		(212,319	)
MSCI Frontier 100		727,144,251		93,619,041		(24,038,830	)		69,580,211
MSCI World		157,027,449		15,698,798		(2,636,739	)		13,062,059

7.	*LINE OF CREDIT*

The iShares MSCI Frontier 100 ETF, along with certain other iShares funds, is a party to a $150 million credit agreement with State Street Bank and Trust Company, which expires October 28, 2015. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.08% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

For the year ended August 31, 2014, the Fund’s maximum amount borrowed, the average borrowings and the weighted average interest rate under the credit agreement were $23,000,000, $460,274 and 1.15%, respectively.

8.	*SUBSEQUENT EVENTS*


NOTES TO FINANCIAL STATEMENTS			63

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

iShares, Inc.:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI All Country World Minimum Volatility ETF, iShares MSCI Emerging Markets EMEA ETF, iShares MSCI Frontier 100 ETF and iShares MSCI World ETF (the “Funds”) at August 31, 2014, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2014


64		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^®, INC.


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Emerging Markets EMEA	$	320,508	$	39,965
MSCI Frontier 100		23,268,557		2,441,639

For corporate shareholders, the following percentages of the income dividends paid by the Funds during the fiscal year ended August 31, 2014 qualified for the dividends-received deduction:


iShares ETF	Dividends- Received Deduction
MSCI All Country World Minimum Volatility		47.54	%
MSCI World		46.34


iShares ETF	Qualified Dividend Income
MSCI All Country World Minimum Volatility	$	27,881,285
MSCI Emerging Markets EMEA		198,872
MSCI Frontier 100		3,947,879
MSCI World		2,735,328


TAX INFORMATION			65

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI All Country World Minimum Volatility ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


66		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			67

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that the revisions of the Advisory Contract to provide additional breakpoints had been subject to further negotiation after receipt of management’s proposal, and that at the request of the Board, management had modified its initial proposal regarding adding additional breakpoints to the Fund. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rate reflects appropriate sharing of potential economies of scale with the Fund’s shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


68		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

II. iShares MSCI Emerging Markets EMEA ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			69

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

proprietary ETF methodology (the “Lipper Group”). The Board noted that, prior to 2014, Lipper had used a different methodology to determine the Fund’s Lipper group, which included mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g. actively managed funds and funds sponsored by “at cost” service providers), as applicable. The Board further noted that, after consideration by the 15(c) Committee, the Board determined to use instead Lipper’s proprietary ETF methodology to determine the Fund’s Lipper Group. This determination was based on, among other considerations, the increased number and types of ETFs available for comparative purposes than was the case in prior years. The Board was provided with a detailed description of Lipper’s proprietary ETF methodology used by Lipper to determine the applicable Lipper Group and to prepare this information. At the Board’s request, Lipper provided, and the Board considered, information on the impact to the iShares funds’ comparative fee rankings that were attributable to the change from a pure index group methodology to Lipper’s proprietary ETF methodology. The Board further noted that due to the limitations in providing comparable funds in the Lipper Group, the statistical information provided in Lipper’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In


70		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale exist in the future, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the investment advisory fee rate incorporates potential economies of scale and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			71

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

III. iShares MSCI Frontier 100 ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its


72		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

The Board also noted that the investment advisory fee rate and overall expenses for the Fund were within range of the median of the investment advisory fee rates and overall expenses of the funds in its Lipper Group. The Board further noted that the Fund invests in smaller, “frontier markets” exposures, as compared to the competitor funds as determined by Lipper, which invest primarily in “emerging markets” exposures.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			73

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


74		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the investment advisory fee rate incorporates potential economies of scale and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			75

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

IV. iShares MSCI World ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


76		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			77

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale exist in the future, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the investment advisory fee rate incorporates potential economies of scale and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


78		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			79

Supplemental Information (Unaudited)

iSHARES^®, INC.

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	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
MSCI All Country World Minimum Volatility	$	1.617449	$	—	$	0.025316	$	1.642765		98	%		—	%		2	%		100	%
MSCI Frontier 100		0.892750		—		—		0.892750		100			—			—			100
MSCI World		1.360023		—		0.005392		1.365415		100			—			0	^a		100

Rounds to less than 1%.

Premium/Discount Information

The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five calendar years (or for each full calendar quarter completed after the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.


80		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI All Country World Minimum Volatility ETF

Period Covered: January 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		2		0.32	%
Greater than 2.5% and Less than 3.0%		1		0.16
Greater than 2.0% and Less than 2.5%		6		0.96
Greater than 1.5% and Less than 2.0%		3		0.48
Greater than 1.0% and Less than 1.5%		16		2.56
Greater than 0.5% and Less than 1.0%		84		13.42
Between 0.5% and –0.5%		502		80.18
Less than –0.5% and Greater than –1.0%		10		1.60
Less than –1.0% and Greater than –1.5%		2		0.32

		626		100.00	%

iShares MSCI Emerging Markets EMEA ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		1		0.18	%
Greater than 3.5% and Less than 4.0%		4		0.71
Greater than 3.0% and Less than 3.5%		9		1.60
Greater than 2.5% and Less than 3.0%		12		2.13
Greater than 2.0% and Less than 2.5%		12		2.13
Greater than 1.5% and Less than 2.0%		18		3.19
Greater than 1.0% and Less than 1.5%		40		7.09
Greater than 0.5% and Less than 1.0%		121		21.45
Between 0.5% and –0.5%		273		48.41
Less than –0.5% and Greater than –1.0%		48		8.51
Less than –1.0% and Greater than –1.5%		15		2.66
Less than –1.5% and Greater than –2.0%		7		1.24
Less than –2.0% and Greater than –2.5%		2		0.35
Less than –2.5% and Greater than –3.0%		2		0.35

		564		100.00	%


SUPPLEMENTAL INFORMATION			81

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Frontier 100 ETF

Period Covered: October 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		18		4.11	%
Greater than 2.5% and Less than 3.0%		38		8.68
Greater than 2.0% and Less than 2.5%		73		16.67
Greater than 1.5% and Less than 2.0%		139		31.73
Greater than 1.0% and Less than 1.5%		80		18.26
Greater than 0.5% and Less than 1.0%		22		5.02
Between 0.5% and –0.5%		18		4.11
Less than –0.5% and Greater than –1.0%		26		5.94
Less than –1.0% and Greater than –1.5%		17		3.88
Less than –1.5% and Greater than –2.0%		4		0.91
Less than –2.0% and Greater than –2.5%		1		0.23
Less than –2.5% and Greater than –3.0%		2		0.46

		438		100.00	%

iShares MSCI World ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		3		0.53	%
Greater than 2.0% and Less than 2.5%		37		6.56
Greater than 1.5% and Less than 2.0%		48		8.51
Greater than 1.0% and Less than 1.5%		76		13.48
Greater than 0.5% and Less than 1.0%		185		32.80
Between 0.5% and –0.5%		215		38.12

		564		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares MSCI Frontier 100 ETF (the “Fund”) for marketing to EU investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration


82		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.

Disclosures are provided in relation to both (a) the staff of BFA; and (b) staff who are senior management or who have the ability to materially affect the risk profile of the Fund.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Frontier 100 ETF in respect of BFA’s financial year ending December 31, 2013 is USD 126,716. This figure is comprised of fixed remuneration of USD 49,824 and variable remuneration of USD 76,892. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Frontier 100 ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 20,358.


SUPPLEMENTAL INFORMATION			83

Director and Officer Information

iSHARES^®, INC.

Interested Directors

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc.

Mark Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.


84		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert H. Silver (59)	Director (since 2007); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Independent Chairman of iShares, Trust, iShares MSCI Russia Capped ETF, Inc. and iShares U.S. ETF Trust (since 2012).

Cecilia H. Herbert (65)	Director (since 2005); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Forward Funds (34 portfolios) (since 2009).

Charles A. Hurty (70)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).

John E. Kerrigan (59)	Director (since 2005); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).


DIRECTOR AND OFFICER INFORMATION			85

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director

John E. Martinez (53)	Director (since 2003); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).

George G.C. Parker (75)	Director (since 2002).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).

Madhav V. Rajan (50)	Director (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).


86		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (54)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (45)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2007).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (51)	Executive Vice President (since 2007).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2007).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


DIRECTOR AND OFFICER INFORMATION			87

Notes:


88		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			89

Notes:


90		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-811-0814

LOGO

AUGUST 31, 2014


2014 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Global Agriculture Producers ETF | VEGI | NYSE Arca

^Ø

iShares MSCI Global Energy Producers ETF | FILL | NYSE Arca

^Ø

iShares MSCI Global Gold Miners ETF | RING | NYSE Arca

^Ø

iShares MSCI Global Metals & Mining Producers ETF | PICK | NYSE Arca

^Ø

iShares MSCI Global Silver Miners ETF | SLVP | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			16
Shareholder Expenses			16
Schedules of Investments			17
iShares MSCI Global Agriculture Producers ETF			17
iShares MSCI Global Energy Producers ETF			20
iShares MSCI Global Gold Miners ETF			24
iShares MSCI Global Metals & Mining Producers ETF			25
iShares MSCI Global Silver Miners ETF			30
Financial Statements			31
Financial Highlights			38
Notes to Financial Statements			43
Report of Independent Registered Public Accounting Firm			55
Tax Information			56
Board Review and Approval of Investment Advisory Contract			57
Supplemental Information			61
Director and Officer Information			65

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		13.05%		13.38%		13.29%		13.05%		13.38%		13.29%
Since Inception		5.30%		5.50%		5.53%		14.26%		14.82%		14.92%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,052.30	$	1.97	$	1,000.00	$	1,023.30	$	1.94		0.38%


6		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

The iShares MSCI Global Agriculture Producers ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of agriculture, as represented by the MSCI ACWI Select Agriculture Producers Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 13.05%, net of fees, while the total return for the Index was 13.29%.

As represented by the Index, global agriculture producers stocks gained approximately 13% for the reporting period, trailing the return of the broad global equity market. Mixed global economic conditions kept demand for agricultural products in check. U.S. economic growth improved during the reporting period, but economic activity in Europe remained subdued throughout the reporting period and growth in emerging economies softened during the first half of the reporting period before signs of recovery emerged later. At the same time, a wet spring and favorable summer weather in 2014 led to expectations of a record-breaking growing season globally. Global wheat production was forecast to reach an all-time high in 2014, while U.S. farmers were expected to harvest record levels of corn and soybeans.

Consequently, the prices of most agricultural commodities declined sharply for the reporting period. For example, the price of wheat declined by more than 14% for the reporting period, cotton prices fell by 19%, soybean prices dropped by 23%, and corn prices tumbled by 27%.

Currency fluctuations relative to the U.S. dollar had a modestly negative impact on Index performance for the reporting period. The U.S. comprised nearly half of the Index as of August 31, 2014; the top country weightings in the remainder of the Index included Canada, Switzerland, Japan, and Norway. The U.S. dollar appreciated by 3% against the Canadian dollar, 6% versus the Japanese yen, and 1% against the Norwegian krone, though the dollar fell by 1% versus the Swiss franc. A stronger U.S. dollar reduces international equity returns for U.S. investors.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector/Investment Type		Percentage of Total Investments*


Materials	51.19	%
Food, Beverage & Tobacco	31.51
Capital Goods	16.50
Investment Companies	0.80

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 8/31/14


Country		Percentage of Total Investments*


United States	48.52	%
Canada	11.06
Switzerland	8.39
Japan	5.77
Norway	4.02
Malaysia	2.92
Singapore	2.39
Italy	2.08
Germany	1.88
China	1.36

TOTAL	88.39	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.44%		19.36%		19.63%		19.44%		19.36%		19.63%
Since Inception		7.59%		7.51%		7.58%		20.79%		20.58%		20.78%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,111.10	$	2.08	$	1,000.00	$	1,023.20	$	1.99		0.39%


8		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

The iShares MSCI Global Energy Producers ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of energy exploration and production, as represented by the MSCI ACWI Select Energy Producers Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 19.44%, net of fees, while the total return for the Index was 19.63%.

As represented by the Index, global energy production stocks advanced by just under 20% for the reporting period, narrowly trailing the gain of the broad global equity market. U.S. energy stocks, which comprised approximately half of the Index at the end of the reporting period, were among the best performers, returning nearly 25% for the reporting period. Strong production levels, particularly from a boom in shale oil and gas extraction, and improving economic growth domestically helped drive the rally in U.S. energy stocks.

In other regions of the world, energy production stocks posted double-digit gains but lagged the U.S. energy sector. Economic growth in Europe remained subdued throughout the reporting period, dampening demand for energy on the Continent. In addition, other notable energy consumers — including Russia, Japan, and Brazil, all three of which are among the top 10 countries in the world in terms of energy consumption — experienced markedly weaker economic growth during the reporting period.

Currency fluctuations relative to the U.S. dollar had a modestly negative impact on Index performance for the reporting period. A stronger U.S. dollar reduces international equity returns for U.S. investors. The U.S. dollar appreciated by 11% against the Russian ruble, 6% versus the Japanese yen, 3% against the Canadian dollar, and 1% versus the euro and the Chinese yuan. These countries comprised approximately one-third of the Index as of the end of the reporting period.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Integrated Oil & Gas	60.41	%
Oil & Gas Exploration & Production	32.81
Oil & Gas Refining & Marketing	5.08
Coal & Consumable Fuels	1.70

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 8/31/14


Country		Percentage of Total Investments*


United States	50.01	%
United Kingdom	16.73
Canada	10.81
France	4.81
China	2.96
Brazil	2.52
Italy	2.17
Russia	2.10
Australia	1.58
Norway	1.17

TOTAL	94.86	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL GOLD MINERS ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(2.01)%		(2.61)%		(1.90)%		(2.01)%		(2.61)%		(1.90)%
Since Inception		(25.75)%		(25.85)%		(25.67)%		(53.65)%		(53.82)%		(53.52)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,030.50	$	2.00	$	1,000.00	$	1,023.20	$	1.99		0.39%


10		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL GOLD MINERS ETF

The iShares MSCI Global Gold Miners ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of gold mining, as represented by the MSCI ACWI Select Gold Miners Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was -2.01%, net of fees, while the total return for the Index was -1.90%.

As represented by the Index, global gold mining stocks declined by approximately 2% for the reporting period, trailing the strong gain of the broad global equity market. Mixed global economic conditions kept demand for commodities in check, and gold was no exception. U.S. economic growth improved during the reporting period, but economic activity in Europe remained subdued throughout the reporting period and growth in emerging economies softened during the first half of the reporting period before signs of recovery emerged later. In addition, demand for gold typically increases when inflation or inflation expectations rise, but global inflation remained low by historical standards.

For the reporting period, the price of gold fell by 8% overall, ending the period at $1,286 per ounce — approximately 33% below the all-time high of $1,909 per ounce reached in August 2011. The price of gold traded between $1,200 and $1,400 per ounce throughout the reporting period.

Currency fluctuations relative to the U.S. dollar also had a negative impact on Index performance for the reporting period. A stronger dollar lowers international equity returns for U.S. investors. The U.S. dollar strengthened against many foreign currencies during the reporting period, including 3% against the Canadian dollar, 4% versus the South African rand, and 6% against the Turkish lira. These three countries comprised approximately two-thirds of the Index as of August 31, 2014. In addition, gold is generally priced in U.S. dollars, so a stronger dollar makes gold more expensive for foreign buyers.

COUNTRY ALLOCATION

As of 8/31/14


Country		Percentage of Total Investments*


Canada	60.26	%
United States	11.03
South Africa	10.84
United Kingdom	7.19
Australia	5.73
Peru	2.56
Hong Kong	0.86
Turkey	0.79
China	0.74

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Goldcorp Inc. (Canada)	15.93	%
Barrick Gold Corp. (Canada)	14.88
Newmont Mining Corp.	8.78
Agnico-Eagle Mines Ltd. (Canada)	4.59
Newcrest Mining Ltd. (Australia)	4.58
Randgold Resources Ltd. (United Kingdom)	4.53
Eldorado Gold Corp. (Canada)	4.52
Yamana Gold Inc. (Canada)	4.45
AngloGold Ashanti Ltd. (South Africa)	4.44
Kinross Gold Corp. (Canada)	3.85

TOTAL	70.55	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.32%		17.19%		15.67%		15.32%		17.19%		15.67%
Since Inception		(5.38)%		(5.21)%		(5.43)%		(13.31)%		(12.90)%		(13.43)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,054.00	$	2.02	$	1,000.00	$	1,023.20	$	1.99		0.39%


12		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

The iShares MSCI Global Metals & Mining Producers ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in mining, extraction or production of diversified metals, excluding gold and silver, as represented by the MSCI ACWI Select Metals & Mining Producers ex Gold & Silver Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 15.32%, net of fees, while the total return for the Index was 15.67%.

As represented by the Index, global metals and mining stocks advanced by nearly 16% for the reporting period, trailing the gain of the broad global equity market. Demand for industrial metals was mixed as global economic conditions varied by region. U.S. economic growth improved during the reporting period, but economic activity in Europe remained subdued throughout the reporting period and growth in emerging economies softened during the first half of the reporting period before signs of recovery emerged later.

Overall, the prices of industrial metals declined for the reporting period as the International Monetary Fund Commodity Metals Price Index fell by 7%. However, this masked significant variation in the performance of individual metals. For example, iron ore prices plunged by more than 30% amid rising production levels and slowing demand from emerging markets. In contrast, nickel surged by 30% after Indonesia (which supplies one-fifth of global nickel exports) banned nickel ore exports in early 2014.

Currency fluctuations relative to the U.S. dollar had a mixed but slightly positive impact on Index performance for the reporting period. A weaker dollar increases international equity returns for U.S. investors. The U.S. dollar declined by 7% against the British pound, 6% against the Brazilian real, 5% versus the Australian dollar, and 1% against the Japanese yen. These countries comprised approximately half of the Index as of August 31, 2014.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Diversified Metals & Mining	62.11	%
Steel	31.50
Aluminum	4.25
Precious Metals & Minerals	2.14

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 8/31/14


Country		Percentage of Total Investments*


United Kingdom	27.21	%
Australia	18.14
United States	14.00
Japan	7.47
Brazil	5.91
Canada	4.80
South Korea	3.85
France	1.87
Mexico	1.84
Germany	1.76

TOTAL	86.85	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL SILVER MINERS ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(7.48)%		(7.49)%		(7.24)%		(7.48)%		(7.49)%		(7.24)%
Since Inception		(21.80)%		(21.54)%		(21.69)%		(47.02)%		(46.56)%		(46.84)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	969.70	$	1.94	$	1,000.00	$	1,023.20	$	1.99		0.39%


14		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL SILVER MINERS ETF

The iShares MSCI Global Silver Miners ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of silver mining, as represented by the MSCI ACWI Select Silver Miners Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was -7.48%, net of fees, while the total return for the Index was -7.24%.

As represented by the Index, global silver mining stocks declined by approximately 7% for the reporting period, trailing the strong gain of the broad global equity market. Mixed global economic conditions kept demand for commodities in check, and silver was no exception. U.S. economic growth improved during the reporting period, but economic activity in Europe remained subdued throughout the reporting period and growth in emerging economies softened during the first half of the reporting period before signs of recovery emerged later.

The price of silver ended the reporting period at $19.47 per ounce, down approximately 18% from the beginning of the period and more than 35% from August 2012. The price of silver traded between $18 and $25 per ounce throughout the reporting period.

Currency fluctuations relative to the U.S. dollar also had a negative impact on Index performance for the reporting period. A stronger dollar lowers international equity returns for U.S. investors. The U.S. dollar strengthened against many foreign currencies during the reporting period, including 1% versus the Peruvian sol and 3% against the Canadian dollar. These two countries comprised over 60% of the Index as of August 31, 2014. In addition, silver is generally priced in U.S. dollars, so a stronger dollar makes silver more expensive for foreign buyers.

COUNTRY ALLOCATION

As of 8/31/14


Country		Percentage of Total Investments*


Canada	58.42	%
United Kingdom	12.51
United States	12.49
Mexico	8.53
Peru	5.22
Hong Kong	2.65
Australia	0.18

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Silver Wheaton Corp. (Canada)	22.31	%
Industrias Penoles SAB de CV (Mexico)	8.53
Fresnillo PLC (United Kingdom)	8.28
Compania de Minas Buenaventura SA SP ADR (Peru)	5.21
First Majestic Silver Corp. (Canada)	4.56
Pan American Silver Corp. (Canada)	4.56
Tahoe Resources Inc. (Canada)	4.45
Hecla Mining Co.	4.25
Coeur Mining Inc.	3.30
Silver Standard Resources Inc. (Canada)	3.14

TOTAL	68.59	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

About Fund Performance

Shareholder Expenses


16		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 98.20%

AUSTRALIA — 0.82%
Australian Agricultural Co. Ltd.^a		45,594	$	53,092
GrainCorp Ltd. Class A		21,352		180,933
Nufarm Ltd.		21,148		85,250
Tassal Group Ltd.		16,524		61,665

				380,940
BRAZIL — 0.58%
BrasilAgro — Companhia Brasileira Propriedades Agricolas		3,400		14,724
Sao Martinho SA		7,900		160,256
SLC Agricola SA		6,800		52,606
Tereos Internacional SA		34,000		42,547

				270,133
CANADA — 11.02%
AG Growth International Inc.		1,666		72,169
Agrium Inc.		16,660		1,579,148
Potash Corp. of Saskatchewan Inc.		98,362		3,462,959

				5,114,276
CHILE — 0.11%
Empresas Aquachile SA^a		49,213		31,926
Multiexport Foods SA^a		79,492		18,159

				50,085
CHINA — 1.35%
Century Sunshine Group Holdings Ltd.		170,000		22,813
China Agri-Industries Holdings Ltd.^b		239,200		97,839
China BlueChemical Ltd. Class H		204,000		100,550
China Huishan Dairy Holdings Co. Ltd.^a,b		680,000		157,932
China Modern Dairy Holdings Ltd.^a,b		215,000		105,417
First Tractor Co. Ltd. Class H		68,000		46,678
Hubei Sanonda Co. Ltd. Class B		100		122
Sinofert Holdings Ltd.^a		272,000		42,466
YuanShengTai Dairy Farm Ltd.^a,b		306,000		53,697

				627,514
DENMARK — 0.33%
Auriga Industries A/S Class B^a		1,734		96,267
United International Enterprises Ltd.		272		54,824

				151,091
FINLAND — 0.04%
HKScan OYJ Class A		3,502		16,422

				16,422


Security	Shares		Value

FRANCE — 0.26%
Naturex		667	$	51,836
Vilmorin & Cie SA		612		69,617

				121,453
GERMANY — 1.88%
K+S AG Registered		19,992		623,050
KWS Saat AG		238		84,737
Suedzucker AG^b		9,418		162,511

				870,298
INDONESIA — 1.31%
PT Astra Agro Lestari Tbk		47,600		103,766
PT BW Plantation Tbk		226,700		19,961
PT Charoen Pokphand Indonesia Tbk		867,000		284,985
PT Japfa Comfeed Indonesia Tbk		588,200		64,867
PT Malindo Feedmill Tbk		104,300		30,048
PT Perusahaan Perkebunan London Sumatra Indonesia Tbk		360,400		57,615
PT Salim Ivomas Pratama Tbk		476,000		33,775
PT Sampoerna Agro Tbk		77,100		13,907

				608,924
ISRAEL — 1.24%
Israel Chemicals Ltd.		51,272		396,566
Israel Corp. Ltd. (The)^a		317		178,915

				575,481
ITALY — 2.07%
CNH Industrial NV		109,176		950,562
Societa per la Bonifica dei Terreni Ferraresi e Imprese Agricole SpA^b		306		11,669

				962,231
JAPAN — 5.75%
Hokuto Corp.		4,500		85,161
Iseki & Co. Ltd.		34,000		91,313
Kubota Corp.		136,000		1,945,382
Maruha Nichiro Corp.		6,800		106,040
Mitsui Sugar Co. Ltd.		11,000		41,402
NH Foods Ltd.		14,000		296,751
Nihon Nohyaku Co. Ltd.		3,400		35,707
Nippon Beet Sugar Manufacturing Co. Ltd.		11,000		20,542
Sakata Seed Corp.		3,400		45,296

				2,667,594
MALAYSIA — 2.91%
Felda Global Ventures Holdings Bhd		139,400		168,943
Genting Plantations Bhd		23,900		76,280


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2014


Security	Shares		Value

IOI Corp. Bhd		329,800	$	500,141
Kim Loong Resources Bhd		17,000		14,508
Kuala Lumpur Kepong Bhd		54,400		380,386
QL Resources Bhd		62,650		65,989
Rimbunan Sawit Bhd		75,900		17,217
Sarawak Oil Palms Bhd		17,000		32,900
TDM Bhd		70,200		21,158
TH Plantations Bhd		37,400		21,239
TSH Resources Bhd		47,600		51,345

				1,350,106
MEXICO — 0.52%
Grupo Lala SAB de CV		74,800		194,158
Industrias Bachoco SAB de CV Series B		10,200		48,779

				242,937
NETHERLANDS — 0.66%
Nutreco NV		7,990		308,103

				308,103
NORWAY — 4.01%
Austevoll Seafood ASA		10,676		68,094
Bakkafrost P/F		4,420		95,881
Cermaq ASA		4,998		65,942
Leroey Seafood Group ASA		2,516		93,273
Marine Harvest ASA		35,564		482,750
Yara International ASA		20,944		1,054,456

				1,860,396
POLAND — 0.40%
Grupa Azoty SA		5,780		135,129
Kernel Holding SA^a		6,052		48,740

				183,869
RUSSIA — 1.28%
Acron JSC		988		30,475
Uralkali OJSC		152,320		562,559

				593,034
SINGAPORE — 2.38%
Bumitama Agri Ltd.^b		45,000		40,386
First Resources Ltd.^b		68,000		110,069
GMG Global Ltd.^b		442,000		28,334
Golden Agri-Resources Ltd.		816,000		333,475
Indofood Agri Resources Ltd.		68,000		47,133
Wilmar International Ltd.		215,000		544,413

				1,103,810
SOUTH AFRICA — 0.72%
Astral Foods Ltd.		4,760		64,001


Security	Shares		Value

Illovo Sugar Ltd.		24,344	$	66,380
Tongaat Hulett Ltd.		12,580		201,817

				332,198
SOUTH KOREA — 0.42%
Dongwon Industries Co. Ltd.		136		52,310
Farmsco^a		1,428		20,914
Harim Co. Ltd.^a,b		4,397		22,506
Namhae Chemical Corp.		3,196		29,440
Nong Woo Bio Co. Ltd.		1,122		27,775
Silla Co. Ltd.		802		22,661
TS Corp.		564		19,719

				195,325
SPAIN — 0.00%
Pescanova SA^a,c		414		—

				—
SWEDEN — 0.20%
Cloetta AB^a,b		27,540		90,862

				90,862
SWITZERLAND — 8.36%
Syngenta AG Registered		10,778		3,877,656

				3,877,656
TAIWAN — 0.41%
Sinon Corp.		68,000		39,471
Taiwan Fertilizer Co. Ltd.		79,000		149,857

				189,328
THAILAND — 0.78%
Charoen Pokphand Foods PCL NVDR		313,900		289,920
GFPT PCL NVDR		65,700		37,231
Khon Kaen Sugar Industry PCL NVDR		86,100		37,201

				364,352
TURKEY — 0.04%
Gubre Fabrikalari TAS		10,438		21,041

				21,041
UNITED STATES — 48.35%
AGCO Corp.		10,302		503,150
Alico Inc.		476		18,583
Archer-Daniels-Midland Co.		76,025		3,790,606
Bunge Ltd.		16,966		1,436,172
Cal-Maine Foods Inc.		1,768		139,866
CF Industries Holdings Inc.		6,256		1,611,984
Darling Ingredients Inc.^a		19,176		369,713
Deere & Co.		40,392		3,396,563
Fresh Del Monte Produce Inc.		5,304		169,410
Ingredion Inc.		8,602		686,096


18		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2014


Security	Shares		Value

Intrepid Potash Inc.^a		6,902	$	105,808
Lindsay Corp.		1,598		124,292
Monsanto Co.		60,690		7,018,798
Mosaic Co. (The)		37,366		1,784,600
Pilgrim’s Pride Corp.^a		7,650		228,506
Sanderson Farms Inc.		2,482		231,620
Scotts Miracle-Gro Co. (The) Class A		5,508		317,977
Titan International Inc.		6,392		92,684
Toro Co. (The)		6,596		405,852

				22,432,280

TOTAL COMMON STOCKS
(Cost: $45,353,726)				45,561,739

INVESTMENT COMPANIES — 0.80%

INDIA — 0.80%
iShares India 50 ETF^d		12,183		368,780

				368,780

TOTAL INVESTMENT COMPANIES
(Cost: $297,489)				368,780

PREFERRED STOCKS — 0.66%

CHILE — 0.66%
Sociedad Quimica y Minera de Chile SA Series B		11,118		304,363

				304,363

TOTAL PREFERRED STOCKS
(Cost: $308,941)				304,363

SHORT-TERM INVESTMENTS — 1.59%

MONEY MARKET FUNDS — 1.59%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^d,e,f		655,162		655,162
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		41,244		41,244
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^d,e		41,173		41,173

				737,579

TOTAL SHORT-TERM INVESTMENTS
(Cost: $737,579)				737,579


	Value

TOTAL INVESTMENTS IN SECURITIES — 101.25%
(Cost: $46,697,735)	$	46,972,461
Other Assets, Less Liabilities — (1.25)%		(577,750	)

NET ASSETS — 100.00%	$	46,394,711

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

^b	All or a portion of this security represents a security on loan. See Note 1.

^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 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			19

Schedule of Investments

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 97.79%

AUSTRALIA — 1.57%
AWE Ltd.^a,b		1,407	$	2,290
Beach Energy Ltd.		3,316		5,040
Buru Energy Ltd.^a,b		444		384
Drillsearch Energy Ltd.^a,b		1,218		1,658
Karoon Gas Australia Ltd.^a,b		396		1,404
Roc Oil Co. Ltd.^a		2,025		1,297
Santos Ltd.		2,745		38,074
Senex Energy Ltd.^a,b		1,927		1,054
Sundance Energy Australia Ltd.^a		3,105		3,950
Whitehaven Coal Ltd.^a,b		2,040		3,768
Woodside Petroleum Ltd.		1,845		73,684

				132,603
AUSTRIA — 0.20%
OMV AG		444		17,194

				17,194
BRAZIL — 1.05%
Petroleo Brasileiro SA		8,700		86,085
QGEP Participacoes SA		600		2,574

				88,659
CANADA — 10.75%
Advantage Oil & Gas Ltd.^a		408		2,528
ARC Resources Ltd.		879		25,469
Athabasca Oil Corp.^a		900		6,571
Bankers Petroleum Ltd.^a		633		3,851
Baytex Energy Corp.		372		16,674
Bellatrix Exploration Ltd.^a		684		5,309
Birchcliff Energy Ltd.^a		237		2,775
BlackPearl Resources Inc.^a		753		1,548
Bonavista Energy Corp.		468		6,394
Bonterra Energy Corp.		84		5,098
Cameco Corp.		1,077		21,108
Canacol Energy Ltd.^a		240		1,509
Canadian Natural Resources Ltd.		3,114		136,043
Canadian Oil Sands Ltd.		1,323		28,564
Cenovus Energy Inc.		2,175		69,536
Crescent Point Energy Corp.		1,083		44,927
Crew Energy Inc.^a		531		5,458
DeeThree Exploration Ltd.^a		252		2,602
Denison Mines Corp.^a		807		1,094
Encana Corp.		2,022		46,731
Enerplus Corp.		630		14,456
Husky Energy Inc.		990		30,209


Security	Shares		Value

Imperial Oil Ltd.		828	$	44,165
Ithaca Energy Inc.^a		807		1,838
Kelt Exploration Ltd.^a		252		3,173
Legacy Oil & Gas Inc. Class A^a		339		2,447
Lightstream Resources Ltd.		468		2,709
Long Run Exploration Ltd.		342		1,662
MEG Energy Corp.^a		462		16,495
NuVista Energy Ltd.^a		234		2,513
Pacific Rubiales Energy Corp.		915		19,089
Painted Pony Petroleum Ltd.^a		291		3,903
Paramount Resources Ltd. Class A^a		204		11,340
Parex Resources Inc.^a		300		3,880
Pengrowth Energy Corp.		1,687		10,778
Penn West Petroleum Ltd.		1,350		10,516
Peyto Exploration & Development Corp.		375		13,320
Raging River Exploration Inc.^a		363		3,681
RMP Energy Inc.^a		393		3,170
Suncor Energy Inc.		4,209		173,171
Surge Energy Inc.		816		6,530
Talisman Energy Inc.		2,898		29,200
TORC Oil & Gas Ltd.		234		3,149
Tourmaline Oil Corp.^a		453		22,998
TransGlobe Energy Corp.		174		1,182
Trilogy Energy Corp.		267		7,109
Twin Butte Energy Ltd.		900		1,576
Vermilion Energy Inc.		285		18,583
Whitecap Resources Inc.		477		8,095

				904,726
CHINA — 2.94%
China Coal Energy Co. Class H^b		9,000		5,481
China Shenhua Energy Co. Ltd. Class H		9,000		25,954
CNOOC Ltd.		51,000		102,524
Hidili Industry International Development Ltd.^a,b		18,000		2,114
Inner Mongolia Yitai Coal Co. Ltd. Class B		100		169
Kunlun Energy Co. Ltd.		12,000		19,819
MIE Holdings Corp.^b		6,000		1,006
PetroChina Co. Ltd. Class H		60,000		85,160
Yanzhou Coal Mining Co. Ltd. Class H		6,000		5,079

				247,306
COLOMBIA — 0.32%
Ecopetrol SA		15,714		27,235

				27,235


20		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2014


Security	Shares		Value

FINLAND — 0.09%
Neste Oil OYJ^b		366	$	7,183

				7,183
FRANCE — 4.78%
Etablissements Maurel et Prom^a		222		3,474
MPI		534		3,011
Total SA		5,988		395,868

				402,353
GREECE — 0.02%
Motor Oil (Hellas) Corinth Refineries SA		176		1,899

				1,899
HUNGARY — 0.09%
MOL Hungarian Oil and Gas PLC		150		7,391

				7,391
INDIA — 0.91%
Reliance Industries Ltd. SP GDR^c		2,301		76,577

				76,577
INDONESIA — 0.19%
PT Adaro Energy Tbk		31,800		3,575
PT Bukit Asam (Persero) Tbk		3,000		3,423
PT Energi Mega Persada Tbk^a		366,000		2,816
PT Indo Tambangraya Megah Tbk		1,500		3,613
PT Medco Energi Internasional Tbk		5,400		1,685
PT Sugih Energy Tbk^a		34,500		1,233

				16,345
ISRAEL — 0.03%
Naphtha Israel Petroleum Corp. Ltd.^a		184		1,316
Oil Refineries Ltd.^a		4,366		1,444

				2,760
ITALY — 2.16%
Eni SpA		7,092		177,303
ERG SpA		258		3,623
Saras SpA^a,b		873		1,045

				181,971
JAPAN — 1.04%
Cosmo Oil Co. Ltd.		3,000		5,631
Idemitsu Kosan Co. Ltd.		300		6,590
INPEX Corp.		2,400		34,423
Japan Petroleum Exploration Co. Ltd.		100		3,898
JX Holdings Inc.		6,000		30,888
Showa Shell Sekiyu K.K.		600		6,446

				87,876


Security	Shares		Value

MALAYSIA — 0.03%
Petron Malaysia Refining & Marketing Bhd		2,700	$	2,458

				2,458
NEW ZEALAND — 0.01%
New Zealand Oil & Gas Ltd.		1,452		942

				942
NORWAY — 1.16%
Det norske oljeselskap ASA^a,b		182		1,878
DNO ASA^a		1,728		5,226
Statoil ASA		3,219		90,673

				97,777
POLAND — 0.18%
Grupa Lotos SA^a		126		1,188
Lubelski Wegiel Bogdanka SA		96		3,498
Polski Koncern Naftowy Orlen SA		837		10,322

				15,008
PORTUGAL — 0.21%
Galp Energia SGPS SA Class B		975		17,338

				17,338
RUSSIA — 1.92%
LUKOIL OAO		1,407		78,324
NovaTek OAO SP GDR^d		267		26,860
Rosneft Oil Co. OJSC		3,100		19,124
Surgutneftegas OJSC		19,200		13,459
Tatneft OAO Class S		3,900		24,187

				161,954
SOUTH AFRICA — 0.09%
Exxaro Resources Ltd.		531		7,533

				7,533
SOUTH KOREA — 0.28%
S-Oil Corp.		153		7,070
SK Innovation Co. Ltd.		174		16,148

				23,218
SPAIN — 0.74%
Repsol SA		2,517		62,628

				62,628
SWEDEN — 0.13%
Lundin Petroleum AB^a,b		591		11,038

				11,038
THAILAND — 0.45%
Bangchak Petroleum PCL NVDR		1,500		1,608
Banpu PCL NVDR		4,500		4,544


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2014


Security	Shares		Value

Esso (Thailand) PCL NVDR^a		9,600	$	1,773
IRPC PCL NVDR		44,700		4,646
PTT Exploration & Production PCL NVDR		3,631		18,701
Thai Oil PCL NVDR		3,900		6,319

				37,591
TURKEY — 0.10%
Turkiye Petrol Rafinerileri AS		342		8,051

				8,051
UNITED KINGDOM — 16.63%
Afren PLC^a		2,832		4,586
Amerisur Resources PLC^a		1,911		2,047
Anglo Pacific Group PLC		318		857
BG Group PLC		9,549		190,540
BP PLC		51,729		413,780
Cairn Energy PLC^a		1,515		4,519
EnQuest PLC^a		2,649		5,301
Faroe Petroleum PLC^a		492		903
Hargreaves Services PLC		81		1,065
Ophir Energy PLC^a		1,446		5,634
Premier Oil PLC		1,479		8,548
Royal Dutch Shell PLC Class A		10,206		413,231
Royal Dutch Shell PLC Class B		7,354		310,885
Salamander Energy PLC^a		727		1,274
SOCO International PLC^a		651		4,573
Tullow Oil PLC		2,586		31,351
Xcite Energy Ltd.^a,b		693		748

				1,399,842
UNITED STATES — 49.72%
Abraxas Petroleum Corp.^a		588		3,475
Alpha Natural Resources Inc.^a		807		3,188
Anadarko Petroleum Corp.		1,389		156,526
Antero Resources Corp.^a		147		8,504
Apache Corp.		1,095		111,504
Approach Resources Inc.^a		138		2,467
Arch Coal Inc.		813		2,480
Athlon Energy Inc.^a		129		6,004
Bill Barrett Corp.^a		141		3,211
Bonanza Creek Energy Inc.^a		69		4,237
Cabot Oil & Gas Corp.		1,194		40,047
Callon Petroleum Co.^a		297		3,187
Carrizo Oil & Gas Inc.^a		96		6,021
Chesapeake Energy Corp.		1,506		40,963
Chevron Corp.		5,298		685,826
Cimarex Energy Co.		258		37,451
Clayton Williams Energy Inc.^a		18		2,132


Security	Shares		Value

Cloud Peak Energy Inc.^a		99	$	1,555
Cobalt International Energy Inc.^a		810		12,434
Comstock Resources Inc.		126		3,072
Concho Resources Inc.^a		297		42,186
ConocoPhillips		3,447		279,965
CONSOL Energy Inc.		684		27,552
Contango Oil & Gas Co.^a		66		2,615
Continental Resources Inc.^a		123		19,839
CVR Energy Inc.		48		2,382
Delek US Holdings Inc.		96		3,358
Denbury Resources Inc.		1,092		18,804
Devon Energy Corp.		1,098		82,811
Diamondback Energy Inc.^a		91		7,858
Energen Corp.		201		16,176
Energy XXI (Bermuda) Ltd.		250		4,125
EOG Resources Inc.		1,548		170,094
EQT Corp.		423		41,902
EXCO Resources Inc.		442		2,135
Exxon Mobil Corp.		12,030		1,196,504
Forest Oil Corp.^a		234		381
Goodrich Petroleum Corp.^a		129		2,851
Gulfport Energy Corp.^a		258		15,093
Halcon Resources Corp.^a		780		4,290
Hess Corp.		828		83,711
HollyFrontier Corp.		522		26,116
Kodiak Oil & Gas Corp.^a		846		13,764
Kosmos Energy Ltd.^a		291		2,916
Laredo Petroleum Inc.^a		192		4,539
Linn Co. LLC		298		9,372
Magnum Hunter Resources Corp.^a		483		3,338
Marathon Oil Corp.		1,956		81,546
Marathon Petroleum Corp.		810		73,718
Matador Resources Co.^a		171		4,679
Murphy Oil Corp.		513		32,047
Newfield Exploration Co.^a		366		16,404
Noble Energy Inc.		996		71,851
Northern Oil and Gas Inc.^a		255		4,297
Oasis Petroleum Inc.^a		333		16,380
Occidental Petroleum Corp.		2,205		228,725
PBF Energy Inc.		246		6,989
PDC Energy Inc.^a		102		6,129
Peabody Energy Corp.		822		13,053
Penn Virginia Corp.^a		123		1,847
Pioneer Natural Resources Co.		396		82,625
QEP Resources Inc.		486		17,287
Range Resources Corp.		447		35,130


22		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2014


Security	Shares		Value

Resolute Energy Corp.^a		159	$	1,277
Rex Energy Corp.^a		99		1,513
Rosetta Resources Inc.^a		186		9,300
RSP Permian Inc.^a		108		3,089
Sanchez Energy Corp.^a		141		4,680
SandRidge Energy Inc.^a		984		5,156
SM Energy Co.		207		18,431
Solazyme Inc.^a		114		1,069
Southwestern Energy Co.^a		963		39,656
Stone Energy Corp.^a		162		5,701
Swift Energy Co.^a		243		2,758
Tesoro Corp.		384		24,860
Triangle Petroleum Corp.^a		303		3,633
Ultra Petroleum Corp.^a		429		11,381
VAALCO Energy Inc.^a		414		3,788
Valero Energy Corp.		1,479		80,073
W&T Offshore Inc.		180		2,686
Western Refining Inc.		186		8,655
Whiting Petroleum Corp.^a		345		31,968
WPX Energy Inc.^a		534		14,215

				4,185,557

TOTAL COMMON STOCKS
(Cost: $7,562,999)				8,233,013

PREFERRED STOCKS — 1.62%

BRAZIL — 1.45%
Petroleo Brasileiro SA		11,700		122,096

				122,096
RUSSIA — 0.17%
Surgutneftegas OJSC		19,200		14,130

				14,130

TOTAL PREFERRED STOCKS
(Cost: $157,013)				136,226

WARRANTS — 0.00%

UNITED STATES — 0.00%
Magnum Hunter Resources Corp. (Expires 04/15/16)^a		50		—

				—

TOTAL WARRANTS
(Cost: $0)				—


Security	Shares		Value

SHORT-TERM INVESTMENTS — 0.43%

MONEY MARKET FUNDS — 0.43%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^e,f,g		26,300	$	26,300
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		1,656		1,656
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^e,f		7,908		7,908

				35,864

TOTAL SHORT-TERM INVESTMENTS
(Cost: $35,864)				35,864

TOTAL INVESTMENTS IN SECURITIES — 99.84%
(Cost: $7,755,876)				8,405,103
Other Assets, Less Liabilities — 0.16%				13,487

NET ASSETS — 100.00%			$	8,418,590

NVDR — Non-Voting 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 1.

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

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

^e	Affiliated issuer. See Note 2.

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

^g	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			23

Schedule of Investments

iSHARES^® MSCI GLOBAL GOLD MINERS ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.86%

AUSTRALIA — 5.72%
Medusa Mining Ltd.^a		331,128	$	374,742
Newcrest Mining Ltd.^a		306,432		3,244,377
Resolute Mining Ltd.^a		831,726		443,410

				4,062,529
CANADA — 60.17%
Agnico-Eagle Mines Ltd.		84,798		3,250,427
Alacer Gold Corp.		260,316		592,745
Argonaut Gold Inc.^a		164,178		673,512
AuRico Gold Inc.		198,576		906,155
Barrick Gold Corp.		572,166		10,543,995
Centerra Gold Inc.		146,034		883,137
China Gold International Resources Corp. Ltd.^a		189,126		536,998
Eldorado Gold Corp.		386,442		3,202,686
Goldcorp Inc.		401,310		11,294,763
Kinross Gold Corp.^a		687,708		2,726,107
New Gold Inc.^a		316,260		2,049,604
Osisko Gold Royalties Ltd.^a		44,100		611,444
Primero Mining Corp.^a		129,150		881,042
SEMAFO Inc.^a		213,066		950,670
Timmins Gold Corp.^a		258,174		449,826
Yamana Gold Inc.		369,684		3,155,818

				42,708,929
CHINA — 0.74%
China Precious Metal Resources Holdings Co. Ltd.^a,b		4,285,000		525,248

				525,248
HONG KONG — 0.86%
G-Resources Group Ltd.^a		22,680,000		611,616

				611,616
PERU — 2.55%
Compania de Minas Buenaventura SA SP ADR		124,488		1,812,545

				1,812,545
SOUTH AFRICA — 10.83%
AngloGold Ashanti Ltd.^a		184,968		3,148,773
Gold Fields Ltd.		486,864		2,307,653
Harmony Gold Mining Co. Ltd.^a		306,684		929,389
Sibanye Gold Ltd.		550,998		1,298,825

				7,684,640
TURKEY — 0.79%
Koza Altin Isletmeleri AS		52,164		562,021

				562,021


Security	Shares		Value

UNITED KINGDOM — 7.18%
African Barrick Gold PLC		24,696	$	95,808
Centamin PLC^a		856,548		910,407
Highland Gold Mining Ltd.		341,334		396,809
Pan African Resources PLC		1,913,562		476,692
Randgold Resources Ltd.		38,052		3,213,457

				5,093,173
UNITED STATES — 11.02%
Allied Nevada Gold Corp.^a		144,270		551,111
Gold Resource Corp.		68,418		424,192
McEwen Mining Inc.^a		223,146		618,115
Newmont Mining Corp.		229,824		6,225,932

				7,819,350

TOTAL COMMON STOCKS
(Cost: $74,761,636)				70,880,051

SHORT-TERM INVESTMENTS — 0.22%

MONEY MARKET FUNDS — 0.22%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		141,116		141,116
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		8,884		8,884
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		5,814		5,814

				155,814

TOTAL SHORT-TERM INVESTMENTS
(Cost: $155,814)				155,814

TOTAL INVESTMENTS IN SECURITIES — 100.08%
(Cost: $74,917,450)				71,035,865
Other Assets, Less Liabilities — (0.08)%				(59,394	)

NET ASSETS — 100.00%			$	70,976,471

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 1.

^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 1.

See notes to financial statements.


24		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 95.92%

AUSTRALIA — 18.07%
Alumina Ltd.^a		515,427	$	747,222
Aquarius Platinum Ltd.^a		280,827		120,822
Arrium Ltd.		287,925		211,397
Atlas Iron Ltd.^b		180,362		96,155
BC Iron Ltd.		23,114		60,316
BHP Billiton Ltd.		648,284		22,234,482
BlueScope Steel Ltd.^a		114,783		591,534
Cudeco Ltd.^a,b		30,212		48,037
Fortescue Metals Group Ltd.		319,958		1,247,900
Iluka Resources Ltd.		85,176		709,019
Independence Group NL		47,867		209,076
Lynas Corp. Ltd.^a,b		434,071		64,958
Metals X Ltd.^a		183,820		38,684
Mount Gibson Iron Ltd.		135,045		87,152
OZ Minerals Ltd.		62,244		249,750
PanAust Ltd.		104,104		222,974
Rio Tinto Ltd.		87,906		5,149,342
Sandfire Resources NL^a		18,928		112,239
Sims Metal Management Ltd.^a		34,581		389,417
Sirius Resources NL^a		53,508		189,674
Sundance Resources Ltd.^a,b		552,916		43,957
Syrah Resources Ltd.^a,b		22,206		104,885
Tiger Resources Ltd.^a		193,285		54,234
Western Areas NL		40,951		188,060
Western Desert Resources Ltd.^a		84,631		15,040

				33,186,326
AUSTRIA — 0.55%
AMAG Austria Metall AG^c		910		31,824
Voestalpine AG		22,750		978,400

				1,010,224
BELGIUM — 0.25%
Bekaert NV		7,826		291,522
Nyrstar NV^a,b		29,484		114,450
Viohalco SA^a		9,880		54,008

				459,980
BRAZIL — 2.22%
Companhia Siderurgica Nacional SA		145,600		638,999
Paranapanema SA^a		36,600		36,803
Vale SA		261,900		3,408,428

				4,084,230


Security	Shares		Value

CANADA — 4.78%
Canam Group Inc.		8,008	$	84,159
Capstone Mining Corp.^a		71,709		179,148
Dominion Diamond Corp.^a		14,742		200,184
Dundee Precious Metals Inc.^a		21,112		108,796
First Quantum Minerals Ltd.		119,938		2,698,950
HudBay Minerals Inc.		48,230		489,080
Imperial Metals Corp.^a		8,920		74,008
Ivanhoe Mines Ltd.^a		97,189		129,914
Labrador Iron Ore Royalty Corp.		12,558		347,190
Lundin Mining Corp.^a		107,684		577,756
Major Drilling Group International Inc.		16,320		122,767
Nevsun Resources Ltd.		39,907		165,551
Sherritt International Corp.		62,790		247,166
Taseko Mines Ltd.^a		42,406		93,041
Teck Resources Ltd. Class B		115,388		2,626,347
Thompson Creek Metals Co. Inc.^a		30,576		88,226
Turquoise Hill Resources Ltd.^a,b		161,280		544,167

				8,776,450
CHILE — 0.11%
CAP SA		16,866		200,379

				200,379
CHINA — 1.27%
Aluminum Corp. of China Ltd. Class H^a,b		608,000		258,101
China Metal Recycling Holdings Ltd.^a,d		132,000		—
China Rare Earth Holdings Ltd.^a		364,000		51,663
China Vanadium Titano-Magnetite Mining Co. Ltd.		182,000		20,430
Chinalco Mining Corp.^a		728,000		93,934
Chongqing Iron & Steel Co. Ltd. Class H^a		244,000		54,466
CITIC Dameng Holdings Ltd.^a		182,000		14,560
Fosun International Ltd.		364,000		447,124
Honbridge Holdings Ltd.^a		364,000		72,799
Hunan Nonferrous Metal Corp. Ltd. Class H^a		364,000		129,628
Inner Mongolia Eerduosi Resourses Co. Ltd. Class B		32,774		25,646
Jiangxi Copper Co. Ltd. Class H		304,000		537,383
MMG Ltd.		728,000		264,893
North Mining Shares Co. Ltd.^a,b		1,750,000		79,031


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2014


Security	Shares		Value

Shougang Concord International Enterprises Co. Ltd.^a		1,092,000	$	50,724
Shougang Fushan Resources Group Ltd.^b		364,000		100,039
Tiangong International Co. Ltd.^b		364,000		82,662
Xinjiang Xinxin Mining Industry Co. Ltd. Class H^a		182,000		42,270

				2,325,353
FINLAND — 0.17%
Outokumpu OYJ^a,b		40,223		311,533

				311,533
FRANCE — 1.86%
Aperam^a		10,374		334,989
ArcelorMittal		203,294		2,965,651
Eramet^a		1,092		120,278

				3,420,918
GERMANY — 1.75%
Aurubis AG		6,916		340,614
Salzgitter AG		8,372		313,404
ThyssenKrupp AG^a		92,092		2,562,539

				3,216,557
GREECE — 0.07%
Mytilineos Holdings SA^a		16,804		136,790

				136,790
HONG KONG — 0.03%
CST Mining Group Ltd.^a		4,368,000		25,925
IRC Ltd.^a		364,000		30,059

				55,984
INDIA — 1.20%
Sesa Sterlite Ltd. SP ADR		72,905		1,340,723
Tata Steel Ltd. SP GDR^e		101,010		862,625

				2,203,348
INDONESIA — 0.12%
PT Aneka Tambang (Persero) Tbk		819,000		83,668
PT Borneo Lumbung Energi & Metal Tbk^a		471,630		3,911
PT Krakatau Steel (Persero) Tbk^a		1,078,400		46,556
PT Timah (Persero) Tbk		734,067		89,739

				223,874
JAPAN — 7.43%
Asahi Holdings Inc.		12,200		215,850
Dowa Holdings Co. Ltd.		43,000		386,187
Hitachi Metals Ltd.		31,000		528,777
JFE Holdings Inc.		109,200		2,211,646


Security	Shares		Value

Kobe Steel Ltd.		728,000	$	1,184,310
Maruichi Steel Tube Ltd.		12,200		324,597
Mitsubishi Materials Corp.		281,000		949,425
Mitsui Mining & Smelting Co. Ltd.		122,000		375,800
Neturen Co. Ltd.		12,200		88,665
Nippon Light Metal Holdings Co. Ltd.		145,600		232,657
Nippon Steel & Sumitomo Metal Corp.		1,456,400		4,127,296
Nippon Yakin Kogyo Co. Ltd.^a,b		36,400		105,467
Nisshin Steel Co. Ltd.		18,200		193,764
OSAKA Titanium Technologies Co. Ltd.		12,200		297,117
Sumitomo Metal Mining Co. Ltd.		91,000		1,382,717
Toho Titanium Co. Ltd.^a,b		12,200		90,075
Tokyo Steel Manufacturing Co. Ltd.		18,200		104,415
TOPY Industries Ltd.		52,000		100,611
UACJ Corp.		83,386		353,980
Yamato Kogyo Co. Ltd.		12,200		403,985

				13,657,341
MALAYSIA — 0.06%
Press Metal Bhd		48,600		102,381

				102,381
MEXICO — 1.83%
Grupo Mexico SAB de CV Series B		782,600		2,842,989
Grupo Simec SAB de CV Series B^a		18,200		81,483
Industrias CH SAB de CV Series B^a		33,600		185,660
Minera Frisco SAB de CV Series A1^a		127,400		256,154

				3,366,286
NETHERLANDS — 0.03%
AMG Advanced Metallurgical Group NV^a		6,006		56,984

				56,984
NORWAY — 0.88%
Norsk Hydro ASA		275,184		1,621,560

				1,621,560
PERU — 0.61%
Southern Copper Corp.		34,034		1,116,656

				1,116,656
PHILIPPINES — 0.10%
Atlas Consolidated Mining & Development Corp.		182,000		70,295
Nickel Asia Corp.		127,400		115,420

				185,715


26		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2014


Security	Shares		Value

POLAND — 0.70%
Jastrzebska Spolka Weglowa SA^a		11,285	$	118,167
KGHM Polska Miedz SA		28,392		1,170,365

				1,288,532
RUSSIA — 1.73%
Alrosa AO		382,200		447,923
Mechel OAO SP ADR^a		38,220		65,356
MMC Norilsk Nickel OJSC		11,284		2,220,491
Severstal OAO		45,500		437,928

				3,171,698
SINGAPORE — 0.05%
Midas Holdings Ltd.^b		304,000		95,004

				95,004
SOUTH AFRICA — 1.62%
African Rainbow Minerals Ltd.		22,750		388,564
Anglo American Platinum Ltd.^a		10,556		439,792
ArcelorMittal South Africa Ltd.^a		40,404		149,529
Assore Ltd.		7,280		215,442
Impala Platinum Holdings Ltd.		108,836		984,962
Kumba Iron Ore Ltd.		13,650		408,779
Merafe Resources Ltd.^a		325,053		40,649
Northam Platinum Ltd.^a		67,886		272,555
Royal Bafokeng Platinum Ltd.^a		10,036		68,886

				2,969,158
SOUTH KOREA — 3.84%
Dongkuk Steel Mill Co. Ltd.		12,082		87,462
Hyundai BNG Steel Co. Ltd.^a		2,003		45,534
Hyundai Hysco Co. Ltd.		1,974		161,004
Hyundai Steel Co.		14,622		1,091,657
Jenax Inc.^a,b		2,731		25,453
KISCO Corp.		1,290		39,376
KISWIRE Ltd.		1,290		66,412
Korea Zinc Co. Ltd.		1,638		679,303
Poongsan Corp.		3,640		113,082
Poongsan Holdings Corp.		1,290		60,177
POSCO		13,286		4,376,472
POSCO Chemtech Co. Ltd.		546		85,458
Posco M-Tech Co. Ltd.^b		5,096		19,299
SeAH Besteel Corp.		3,110		109,806
SeAH Holdings Corp.		182		29,617
SeAH Steel Corp.		668		61,599

				7,051,711
SPAIN — 0.28%
Acerinox SA		23,720		363,993
Tubacex SA		19,474		99,526


Security	Shares		Value

Tubos Reunidos SA		14,015	$	47,167

				510,686
SWEDEN — 0.87%
Boliden AB		55,146		875,691
SSAB AB Class A^a		51,521		476,953
SSAB AB Class B^a,b		30,394		250,999

				1,603,643
SWITZERLAND — 0.09%
Schmolz + Bickenbach AG Registered^a		115,934		167,094

				167,094
TAIWAN — 1.73%
China Metal Products Co. Ltd.		127,011		136,612
China Steel Corp.		2,413,612		2,083,310
Chun Yuan Steel Industrial Co. Ltd.		182,040		73,996
Chung Hung Steel Corp.^a		182,000		50,538
Feng Hsin Iron & Steel Co. Ltd.		122,000		175,507
Gloria Material Technology Corp.		128,201		107,226
Ta Chen Stainless Pipe Co. Ltd.		182,300		133,566
Ton Yi Industrial Corp.		182,000		139,436
Tung Ho Steel Enterprise Corp.		182,000		152,831
YC INOX Co. Ltd.		122,000		121,427

				3,174,449
THAILAND — 0.09%
G J Steel PCL NVDR^a		18,824,300		35,362
G Steel PCL NVDR^a		9,564,400		44,917
STP & I PCL NVDR		127,400		86,157

				166,436
TURKEY — 0.49%
Borusan Mannesmann Boru Sanayi ve TAS		8,613		26,342
Eregli Demir ve Celik Fabrikalari TAS		294,479		573,142
Izmir Demir Celik Sanayi AS^a		19,368		29,708
Kardemir Karabuk Demir Celik Sanayi ve TAS Class A^a		29,327		40,771
Kardemir Karabuk Demir Celik Sanayi ve TAS Class B^a		14,578		19,996
Kardemir Karabuk Demir Celik Sanayi ve TAS Class D^a		145,465		153,018
Koza Anadolu Metal Madencilik Isletmeleri AS^a		35,410		37,085
Park Elektrik Uretim Madencilik Sanayi ve TAS		10,570		18,564

				898,626


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2014


Security	Shares		Value

UNITED KINGDOM — 27.10%
African Minerals Ltd.^a,b		65,885	$	33,646
Anglo American PLC		281,918		7,163,384
Antofagasta PLC		78,624		1,025,664
BHP Billiton PLC		425,880		13,491,361
Evraz PLC		80,083		150,021
Ferrexpo PLC		37,128		81,453
Gem Diamonds Ltd.^a		19,838		70,587
Glencore PLC		2,145,416		12,912,302
Kazakhmys PLC^a,b		56,239		277,301
Lonmin PLC^a		88,270		336,874
Petra Diamonds Ltd.^a		72,800		215,932
Rio Tinto PLC		256,802		13,705,051
Vedanta Resources PLC		18,753		314,866

				49,778,442
UNITED STATES — 13.94%
A.M. Castle & Co.^a,b		4,490		44,002
AK Steel Holding Corp.^a		28,210		308,053
Alcoa Inc.		227,737		3,782,711
Allegheny Technologies Inc.		22,386		944,018
Carpenter Technology Corp.		10,556		577,730
Century Aluminum Co.^a		11,284		281,874
Cliffs Natural Resources Inc.^b		29,848		449,809
Commercial Metals Co.		23,114		399,410
Compass Minerals International Inc.		6,552		583,587
Freeport-McMoRan Inc.		209,482		7,618,860
Globe Specialty Metals Inc.		12,376		254,203
Haynes International Inc.		2,488		123,355
Horsehead Holding Corp.^a		10,556		213,126
Kaiser Aluminum Corp.		3,276		263,882
Materion Corp.		3,944		128,693
Molycorp Inc.^a,b		40,223		71,999
Nucor Corp.		64,428		3,499,729
Olympic Steel Inc.		2,366		56,879
Reliance Steel & Aluminum Co.		15,652		1,094,388
RTI International Metals Inc.^a		4,914		142,555
Schnitzer Steel Industries Inc. Class A		5,460		151,187
Steel Dynamics Inc.		45,500		1,057,420
Stillwater Mining Co.^a,b		23,478		435,752
SunCoke Energy Inc.^a		13,650		327,736
TimkenSteel Corp.		5,642		269,575
United States Steel Corp.		30,030		1,160,659


Security	Shares		Value

Universal Stainless & Alloy Products Inc.^a		1,820	$	58,295
US Silica Holdings Inc.		10,920		784,165
Walter Energy Inc.^b		13,651		76,309
Worthington Industries Inc.		10,920		441,605

				25,601,566

TOTAL COMMON STOCKS
(Cost: $165,197,025)				176,195,914

PREFERRED STOCKS — 3.66%

BRAZIL — 3.66%
Bradespar SA		48,600		444,178
Companhia de Ferro Ligas da Bahia – Ferbasa		12,200		55,887
Gerdau SA		182,000		1,054,153
Metalurgica Gerdau SA		54,600		387,011
Usinas Siderurgicas de Minas Gerais SA Class A		72,800		262,887
Vale SA Class A		389,200		4,517,228

				6,721,344

TOTAL PREFERRED STOCKS
(Cost: $8,470,544)				6,721,344

SHORT-TERM INVESTMENTS — 1.73%

MONEY MARKET FUNDS — 1.73%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^f,g,h		2,780,886		2,780,886
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^f,g,h		175,064		175,064
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^f,g		228,620		228,620

				3,184,570

TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,184,570)				3,184,570


28		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2014


	Value
TOTAL INVESTMENTS IN SECURITIES — 101.31%
(Cost: $176,852,139)	$	186,101,828
Other Assets, Less Liabilities — (1.31)%		(2,402,606	)

NET ASSETS — 100.00%	$	183,699,222

NVDR — Non-Voting Depositary Receipts

SP ADR — Sponsored American Depositary Receipts

SP GDR — Sponsored Global Depositary Receipts

^a	Non-income earning security.

^b	All or a portion of this security represents a security on loan. See Note 1.

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

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

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

^f	Affiliated issuer. See Note 2.

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

^h	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			29

Schedule of Investments

iSHARES^® MSCI GLOBAL SILVER MINERS ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.99%

AUSTRALIA — 0.18%
Alcyone Resources Ltd.^a		26,593,384	$	24,872

				24,872
CANADA — 58.42%
Alexco Resource Corp.^a,b		132,396		131,816
Endeavour Silver Corp.^a		63,063		352,304
Excellon Resources Inc.^a		119,262		153,922
First Majestic Silver Corp.^a		62,040		637,129
Fortuna Silver Mines Inc.^a		76,461		394,024
Great Panther Silver Ltd.^a		148,665		182,277
Klondex Mines Ltd.^a		101,068		191,002
MAG Silver Corp.^a		39,116		320,933
Mandalay Resources Corp.^b		176,946		185,959
Minco Silver Corp.^a		136,323		143,267
Pan American Silver Corp.		44,275		636,727
Scorpio Mining Corp.^a		444,752		139,402
Silver Standard Resources Inc.^a		46,574		438,369
Silver Wheaton Corp.		124,498		3,117,184
Silvercorp Metals Inc.		131,384		242,238
Tahoe Resources Inc.^a		24,222		621,655
US Silver & Gold Inc.^a		261,294		137,301
Wildcat Silver Corp.^a		283,360		138,447

				8,163,956
HONG KONG — 2.65%
G-Resources Group Ltd.^a,b		13,761,000		371,096

				371,096
MEXICO — 8.53%
Industrias Penoles SAB de CV		46,970		1,191,897

				1,191,897
PERU — 5.22%
Compania de Minas Buenaventura SA SP ADR		50,061		728,888

				728,888
UNITED KINGDOM — 12.50%
Arian Silver Corp.^a,b		206,030		121,896
Fresnillo PLC		72,457		1,157,602
Hochschild Mining PLC^a		120,483		322,948
Patagonia Gold PLC^a,b		1,128,061		145,191

				1,747,637
UNITED STATES — 12.49%
Coeur Mining Inc.^a		58,245		461,301
Golden Minerals Co.^a		127,292		141,294


Security	Shares		Value

Hecla Mining Co.		181,786	$	594,440
McEwen Mining Inc.^a		135,377		374,994
Paramount Gold and Silver Corp.^a		166,606		173,270

				1,745,299

TOTAL COMMON STOCKS
(Cost: $13,943,339)				13,973,645

SHORT-TERM INVESTMENTS — 2.05%

MONEY MARKET FUNDS — 2.05%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		264,783		264,783
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		16,669		16,669
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		5,319		5,319

				286,771

TOTAL SHORT-TERM INVESTMENTS
(Cost: $286,771)				286,771

TOTAL INVESTMENTS IN SECURITIES — 102.04%
(Cost: $14,230,110)				14,260,416
Other Assets, Less Liabilities — (2.04)%				(285,091	)

NET ASSETS — 100.00%			$	13,975,325

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 1.

^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 1.

See notes to financial statements.


30		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2014


	iShares MSCI Global Agriculture Producers ETF			iShares MSCI Global Energy Producers ETF			iShares MSCI Global Gold Miners ETF

ASSETS
Investments, at cost:
Unaffiliated	$	45,662,667		$	7,720,012		$	74,761,636
Affiliated (Note 2)		1,035,068			35,864			155,814

Total cost of investments	$	46,697,735		$	7,755,876		$	74,917,450

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	45,866,102		$	8,369,239		$	70,880,051
Affiliated (Note 2)		1,106,359			35,864			155,814

Total fair value of investments		46,972,461			8,405,103			71,035,865
Foreign currency, at value^b		69,147			8,538			56,410
Cash		—			—			17,366
Receivables:
Investment securities sold		43,809			—			2,306,683
Dividends and interest		89,106			35,633			35,305

Total Assets		47,174,523			8,449,274			73,451,629


LIABILITIES
Payables:
Investment securities purchased		68,408			—			2,301,938
Collateral for securities on loan (Note 1)		696,406			27,956			150,000
Investment advisory fees (Note 2)		14,998			2,728			23,220

Total Liabilities		779,812			30,684			2,475,158


NET ASSETS	$	46,394,711		$	8,418,590		$	70,976,471


Net assets consist of:
Paid-in capital	$	46,930,804		$	7,880,424		$	88,667,032
Undistributed net investment income		146,167			36,482			57,467
Accumulated net realized loss		(956,467	)		(147,472	)		(13,866,805	)
Net unrealized appreciation (depreciation)		274,207			649,156			(3,881,223	)

NET ASSETS	$	46,394,711		$	8,418,590		$	70,976,471


Shares outstanding^c		1,700,000			300,000			6,300,000


Net asset value per share	$	27.29		$	28.06		$	11.27

^a	Securities on loan with values of $636,605, $26,150 and $122,578, respectively. See Note 1.

^b	Cost of foreign currency: $69,110, $8,607 and $56,277, respectively.

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

See notes to financial statements.


FINANCIAL STATEMENTS			31

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2014


	iShares MSCI Global Metals & Mining Producers ETF			iShares MSCI Global Silver Miners ETF

ASSETS
Investments, at cost:
Unaffiliated	$	173,667,569		$	13,943,339
Affiliated (Note 2)		3,184,570			286,771

Total cost of investments	$	176,852,139		$	14,230,110

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	182,917,258		$	13,973,645
Affiliated (Note 2)		3,184,570			286,771

Total fair value of investments		186,101,828			14,260,416
Foreign currency, at value^b		206,663			3,130
Receivables:
Investment securities sold		—			707,715
Dividends and interest		557,678			15,203
Capital shares sold		—			4,488

Total Assets		186,866,169			14,990,952


LIABILITIES
Payables:
Investment securities purchased		145,910			730,297
Collateral for securities on loan (Note 1)		2,955,950			281,452
Foreign taxes (Note 1)		3,322			—
Investment advisory fees (Note 2)		61,765			3,878

Total Liabilities		3,166,947			1,015,627


NET ASSETS	$	183,699,222		$	13,975,325


Net assets consist of:
Paid-in capital	$	182,099,485		$	15,614,686
Undistributed (distributions in excess of) net investment income		517,663			(42,879	)
Accumulated net realized loss		(8,164,167	)		(1,626,748	)
Net unrealized appreciation		9,246,241			30,266

NET ASSETS	$	183,699,222		$	13,975,325


Shares outstanding^c		9,100,000			1,100,000


Net asset value per share	$	20.19		$	12.70

^a	Securities on loan with values of $2,791,957 and $263,060, respectively. See Note 1.

^b	Cost of foreign currency: $208,150 and $3,168, respectively.

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

See notes to financial statements.


32		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI Global Agriculture Producers ETF			iShares MSCI Global Energy Producers ETF			iShares MSCI Global Gold Miners ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	1,048,924		$	164,359		$	608,060
Dividends — affiliated (Note 2)		2,411			—			—
Interest — affiliated (Note 2)		8			1			5
Securities lending income — affiliated (Note 2)		11,571			334			13,951

Total investment income		1,062,914			164,694			622,016


EXPENSES
Investment advisory fees (Note 2)		162,274			21,673			202,118

Total expenses		162,274			21,673			202,118
Less investment advisory fees waived (Note 2)		(2,676	)		—			—

Net expenses		159,598			21,673			202,118

Net investment income		903,316			143,021			419,898


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(838,051	)		(96,957	)		(9,991,753	)
Investments — affiliated (Note 2)		(3,608	)		—			—
In-kind redemptions — unaffiliated		790,947			—			429,548
In-kind redemptions — affiliated (Note 2)		583			—			—
Foreign currency transactions		(4,825	)		380			(462	)

Net realized loss		(54,954	)		(96,577	)		(9,562,667	)

Net change in unrealized appreciation/depreciation on:
Investments		3,654,542			849,427			11,791,515
Translation of assets and liabilities in foreign currencies		(9	)		138			1,043

Net change in unrealized appreciation/depreciation		3,654,533			849,565			11,792,558

Net realized and unrealized gain		3,599,579			752,988			2,229,891

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	4,502,895		$	896,009		$	2,649,789

^a	Net of foreign withholding tax of $98,080, $11,062 and $79,463, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			33

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI Global Metals & Mining Producers ETF			iShares MSCI Global Silver Miners ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	4,947,817		$	85,822
Interest — affiliated (Note 2)		27			1
Securities lending income — affiliated (Note 2)		77,319			4,370

		5,025,163			90,193
Less: Other foreign taxes (Note 1)		(3,322	)		—

Total investment income		5,021,841			90,193


EXPENSES
Investment advisory fees (Note 2)		670,187			34,325

Total expenses		670,187			34,325

Net investment income		4,351,654			55,868


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(5,441,579	)		(1,309,491	)
In-kind redemptions — unaffiliated		10,731,513			—
Foreign currency transactions		(2,052	)		487

Net realized gain (loss)		5,287,882			(1,309,004	)

Net change in unrealized appreciation/depreciation on:
Investments		24,023,100			1,092,782
Translation of assets and liabilities in foreign currencies		2,806			(219	)

Net change in unrealized appreciation/depreciation		24,025,906			1,092,563

Net realized and unrealized gain (loss)		29,313,788			(216,441	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	33,665,442		$	(160,573	)

^a	Net of foreign withholding tax of $266,040 and $8,507, respectively.

See notes to financial statements.


34		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Global Agriculture Producers ETF						iShares MSCI Global Energy Producers ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	903,316		$	391,116		$	143,021		$	125,538
Net realized loss		(54,954	)		(138,365	)		(96,577	)		(25,626	)
Net change in unrealized appreciation/depreciation		3,654,533			(3,296,695	)		849,565			135,914

Net increase (decrease) in net assets resulting from operations		4,502,895			(3,043,944	)		896,009			235,826


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(869,161	)		(289,367	)		(128,943	)		(125,608	)

Total distributions to shareholders		(869,161	)		(289,367	)		(128,943	)		(125,608	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		12,206,285			29,084,665			2,840,186			—
Cost of shares redeemed		(5,161,272	)		—			—			—

Net increase in net assets from capital share transactions		7,045,013			29,084,665			2,840,186			—

INCREASE IN NET ASSETS		10,678,747			25,751,354			3,607,252			110,218

NET ASSETS
Beginning of year		35,715,964			9,964,610			4,811,338			4,701,120

End of year	$	46,394,711		$	35,715,964		$	8,418,590		$	4,811,338

Undistributed net investment income included in net assets at end of year	$	146,167		$	116,739		$	36,482		$	21,722


SHARES ISSUED AND REDEEMED
Shares sold		450,000			1,050,000			100,000			—
Shares redeemed		(200,000	)		—			—			—

Net increase in shares outstanding		250,000			1,050,000			100,000			—

See notes to financial statements.


FINANCIAL STATEMENTS			35

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Global Gold Miners ETF						iShares MSCI Global Metals & Mining Producers ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	419,898		$	443,449		$	4,351,654		$	5,685,352
Net realized gain (loss)		(9,562,667	)		(3,263,008	)		5,287,882			2,266,989
Net change in unrealized appreciation/depreciation		11,792,558			(11,579,719	)		24,025,906			(14,102,532	)

Net increase (decrease) in net assets resulting from operations		2,649,789			(14,399,278	)		33,665,442			(6,150,191	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(410,920	)		(426,169	)		(4,935,233	)		(4,641,648	)

Total distributions to shareholders		(410,920	)		(426,169	)		(4,935,233	)		(4,641,648	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		33,392,792			33,445,251			51,854,849			172,833,069
Cost of shares redeemed		(2,940,209	)		(12,419,198	)		(119,693,896	)		(62,756,852	)

Net increase (decrease) in net assets from capital share transactions		30,452,583			21,026,053			(67,839,047	)		110,076,217

INCREASE (DECREASE) IN NET ASSETS		32,691,452			6,200,606			(39,108,838	)		99,284,378

NET ASSETS
Beginning of year		38,285,019			32,084,413			222,808,060			123,523,682

End of year	$	70,976,471		$	38,285,019		$	183,699,222		$	222,808,060

Undistributed net investment income included in net assets at end of year	$	57,467		$	48,755		$	517,663		$	1,097,994


SHARES ISSUED AND REDEEMED
Shares sold		3,300,000			2,450,000			2,650,000			8,950,000
Shares redeemed		(300,000	)		(750,000	)		(5,850,000	)		(3,150,000	)

Net increase (decrease) in shares outstanding		3,000,000			1,700,000			(3,200,000	)		5,800,000

See notes to financial statements.


36		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Global Silver Miners ETF
	Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	55,868		$	32,646
Net realized loss		(1,309,004	)		(219,152	)
Net change in unrealized appreciation/depreciation		1,092,563			(720,832	)

Net decrease in net assets resulting from operations		(160,573	)		(907,338	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(104,622	)		(44,671	)

Total distributions to shareholders		(104,622	)		(44,671	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		7,281,618			5,816,496

Net increase in net assets from capital share transactions		7,281,618			5,816,496

INCREASE IN NET ASSETS		7,016,423			4,864,487

NET ASSETS
Beginning of year		6,958,902			2,094,415

End of year	$	13,975,325		$	6,958,902


Distributions in excess of net investment income included in net assets at end of year	$	(42,879	)	$	(6,916	)


SHARES ISSUED
Shares sold		600,000			400,000

Net increase in shares outstanding		600,000			400,000

See notes to financial statements.


FINANCIAL STATEMENTS			37

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI Global Agriculture Producers ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Jan. 31, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	24.63		$	24.91		$	24.88

Income from investment operations:
Net investment income^b		0.58			0.50			0.28
Net realized and unrealized gain (loss)^c		2.63			(0.46	)		(0.05	)

Total from investment operations		3.21			0.04			0.23

Less distributions from:
Net investment income		(0.55	)		(0.32	)		(0.20	)

Total distributions		(0.55	)		(0.32	)		(0.20	)

Net asset value, end of period	$	27.29		$	24.63		$	24.91


Total return		13.05	%		0.10	%		0.97	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	46,395		$	35,716		$	9,965
Ratio of expenses to average net assets^e		0.38	%		0.38	%		0.38	%
Ratio of expenses to average net assets prior to waived fees^e		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets^e		2.17	%		1.87	%		1.93	%
Portfolio turnover rate^f		14	%		6	%		6	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 13%, 6% and 6%, respectively. See Note 4.

See notes to financial statements.


38		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI Global Energy Producers ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Jan. 31, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	24.06		$	23.51		$	24.79

Income from investment operations:
Net investment income^b		0.68			0.63			0.43
Net realized and unrealized gain (loss)^c		3.96			0.55			(1.39	)

Total from investment operations		4.64			1.18			(0.96	)

Less distributions from:
Net investment income		(0.64	)		(0.63	)		(0.32	)

Total distributions		(0.64	)		(0.63	)		(0.32	)

Net asset value, end of period	$	28.06		$	24.06		$	23.51


Total return		19.44	%		5.10	%		(3.77	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	8,419		$	4,811		$	4,701
Ratio of expenses to average net assets^e		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets^e		2.57	%		2.61	%		3.16	%
Portfolio turnover rate^f		8	%		6	%		5	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 8%, 6% and 5%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			39

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI Global Gold Miners ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Jan. 31, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	11.60		$	20.05		$	25.00

Income from investment operations:
Net investment income^b		0.08			0.21			0.15
Net realized and unrealized loss^c		(0.33	)		(8.47	)		(5.02	)

Total from investment operations		(0.25	)		(8.26	)		(4.87	)

Less distributions from:
Net investment income		(0.08	)		(0.19	)		(0.08	)

Total distributions		(0.08	)		(0.19	)		(0.08	)

Net asset value, end of period	$	11.27		$	11.60		$	20.05


Total return		(2.01	)%		(41.28	)%		(19.45	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	70,976		$	38,285		$	32,084
Ratio of expenses to average net assets^e		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets^e		0.81	%		1.37	%		1.25	%
Portfolio turnover rate^f		22	%		19	%		11	%

^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.


40		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI Global Metals & Mining Producers ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Jan. 31, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	18.11		$	19.00		$	24.76

Income from investment operations:
Net investment income^b		0.50			0.50			0.37
Net realized and unrealized gain (loss)^c		2.23			(1.00	)		(6.00	)

Total from investment operations		2.73			(0.50	)		(5.63	)

Less distributions from:
Net investment income		(0.65	)		(0.39	)		(0.13	)

Total distributions		(0.65	)		(0.39	)		(0.13	)

Net asset value, end of period	$	20.19		$	18.11		$	19.00


Total return		15.32	%		(2.68	)%		(22.76	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	183,699		$	222,808		$	123,524
Ratio of expenses to average net assets^e		0.39	%		0.39	%		0.39	%
Ratio of expenses to average net assets prior to waived fees^e		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets^e		2.53	%		2.51	%		2.98	%
Portfolio turnover rate^f		18	%		11	%		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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 15%, 7% and 1%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			41

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI Global Silver Miners ETF


	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Period from Jan. 31, 2012^a to Aug. 31, 2012
Net asset value, beginning of period	$	13.92		$	20.94		$	24.87

Income from investment operations:
Net investment income^b		0.08			0.16			0.11
Net realized and unrealized gain (loss)^c		(1.15	)		(6.90	)		(3.90	)

Total from investment operations		(1.07	)		(6.74	)		(3.79	)

Less distributions from:
Net investment income		(0.15	)		(0.28	)		(0.14	)

Total distributions		(0.15	)		(0.28	)		(0.14	)

Net asset value, end of period	$	12.70		$	13.92		$	20.94


Total return		(7.48	)%		(32.49	)%		(15.18	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	13,975		$	6,959		$	2,094
Ratio of expenses to average net assets^e		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets^e		0.63	%		1.03	%		0.86	%
Portfolio turnover rate^f		22	%		13	%		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 exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


42		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

iSHARES^®, INC.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):


iShares ETF		Diversification Classification
MSCI Global Agriculture Producers		Non-diversified
MSCI Global Energy Producers		Non-diversified
MSCI Global Gold Miners		Non-diversified
MSCI Global Metals & Mining Producers		Non-diversified
MSCI Global Silver Miners		Non-diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•


NOTES TO FINANCIAL STATEMENTS			43

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.


44		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2			Level 3			Total
MSCI Global Agriculture Producers
Assets:
Common Stocks	$	45,561,739	$	—		$	0	^a	$	45,561,739
Investment Companies		368,780		—			—			368,780
Preferred Stocks		304,363		—			—			304,363
Money Market Funds		737,579		—			—			737,579

	$	46,972,461	$	—		$	0	^a	$	46,972,461


MSCI Global Energy Producers
Assets:
Common Stocks	$	8,233,013	$	—		$	—		$	8,233,013
Preferred Stocks		136,226		—			—			136,226
Warrants		—		0	^a		—			0	^a
Money Market Funds		35,864		—			—			35,864

	$	8,405,103	$	0	^a	$	—		$	8,405,103


MSCI Global Gold Miners
Assets:
Common Stocks	$	70,880,051	$	—		$	—		$	70,880,051
Money Market Funds		155,814		—			—			155,814

	$	71,035,865	$	—		$	—		$	71,035,865


MSCI Global Metals & Mining Producers
Assets:
Common Stocks	$	176,031,844	$	164,070		$	0	^a	$	176,195,914
Preferred Stocks		6,721,344		—			—			6,721,344
Money Market Funds		3,184,570		—			—			3,184,570

	$	185,937,758	$	164,070		$	0	^a	$	186,101,828


MSCI Global Silver Miners
Assets:
Common Stocks	$	13,948,773	$	24,872		$	—		$	13,973,645
Money Market Funds		286,771		—			—			286,771

	$	14,235,544	$	24,872		$	—		$	14,260,416

Rounds to less than $1.

SECURITY TRANSACTIONS AND INCOME RECOGNITION


NOTES TO FINANCIAL STATEMENTS			45

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


46		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of each Fund’s securities lending agreements which are subject to offset under an MSLA as of August 31, 2014:


iShares ETF	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Global Agriculture Producers	$	636,605	$	636,605	$	—
MSCI Global Energy Producers		26,150		26,150		—
MSCI Global Gold Miners		122,578		122,578		—
MSCI Global Metals & Mining Producers		2,791,957		2,791,957		—
MSCI Global Silver Miners		263,060		263,060		—

RECENT ACCOUNTING STANDARD


NOTES TO FINANCIAL STATEMENTS			47

Notes to Financial Statements (Continued)

iSHARES^®, INC.

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee of 0.39% based on the average daily net assets of each Fund.

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI Global Agriculture Producers and iShares MSCI Global Metals & Mining Producers ETFs through December 31, 2015 in an amount equal to each Fund’s pro rata share of the fees and expenses attributable to each Fund’s investments in other iShares funds. The iShares MSCI Global Metals & Mining Producers ETF did not hold any iShares funds during the year ended August 31, 2014.

For the year ended August 31, 2014, each Fund paid to BTC the following amounts in total for securities lending agent services and collateral investment fees:


iShares ETF	Fees Paid to BTC
MSCI Global Agriculture Producers	$	4,875
MSCI Global Energy Producers		136
MSCI Global Gold Miners		6,337
MSCI Global Metals & Mining Producers		31,657
MSCI Global Silver Miners		1,808


48		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Prior to January 1, 2014, each Fund retained 65% of securities lending income and paid no collateral investment fees.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

The iShares MSCI Global Agriculture Producers and iShares MSCI Global Metals & Mining Producers ETFs, in order to improve their portfolio liquidity and their ability to track their underlying index, may invest in shares of other iShares funds that invest in securities in each Fund’s respective underlying index.

Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the year ended August 31, 2014, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:


iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Year		Shares Purchased		Shares Sold			Shares Held at End of Year		Value at End of Year		Dividend Income		Net Realized Gain (Loss)
MSCI Global Agriculture Producers
iShares India 50 ETF		12,191		3,470		(3,478	)		12,183	$	368,780	$	2,411	$	(3,025	)

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 year ended August 31, 2014 were as follows:


iShares ETF	Purchases		Sales
MSCI Global Agriculture Producers	$	6,070,031	$	5,585,647
MSCI Global Energy Producers		536,391		447,313
MSCI Global Gold Miners		11,404,421		11,377,559
MSCI Global Metals & Mining Producers		31,368,933		42,940,117
MSCI Global Silver Miners		2,019,467		2,035,788


NOTES TO FINANCIAL STATEMENTS			49

Notes to Financial Statements (Continued)

iSHARES^®, INC.

In-kind transactions (see Note 4) for the year ended August 31, 2014 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Global Agriculture Producers	$	11,349,614	$	4,799,069
MSCI Global Energy Producers		2,748,838		—
MSCI Global Gold Miners		33,338,722		2,940,097
MSCI Global Metals & Mining Producers		43,362,895		99,794,832
MSCI Global Silver Miners		7,265,272		—

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*MARKET AND CREDIT RISK*

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss each Fund may suffer through holding market positions in the face of market movements. Each Fund is exposed to market risk by virtue of its direct or indirect investment in equity instruments. The fair value of securities held by the Funds may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of each Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s schedule of investments.


50		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Each Fund invests all or substantially all of its assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions affecting those market sectors may have a significant impact on its investment performance.

The United States and the European Union, along with the regulatory bodies of a number of countries including Japan, Australia and Canada (collectively, “Sanctioning Bodies”), have imposed sectorial economic sanctions on certain Russian individuals and Russian corporate entities which include prohibitions on transacting in or dealing in new debt of longer than 30 or 90 days maturity or new equity of such issuers. Securities held by the iShares MSCI Global Agriculture Producers ETF, iShares MSCI Global Energy Producers ETF and iShares MSCI Global Metals & Mining Producers ETF issued prior to the date of the sanctions being imposed are not currently subject to any restrictions under the sanctions. However, compliance with each of these sanctions may impair the ability of a Fund to buy, sell, hold, receive or deliver the affected securities or other securities of such issuers. The Sanctioning Bodies could also institute broader sanctions on Russia. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. Current or future sanctions may result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. These retaliatory measures may include the immediate freeze of Russian assets held by a Fund.

CREDIT RISK

6.	*INCOME TAX INFORMATION*


NOTES TO FINANCIAL STATEMENTS			51

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 is required.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of August 31, 2014, attributable to passive foreign investment companies, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI Global Agriculture Producers	$	742,845	$	(4,727	)	$	(738,118	)
MSCI Global Energy Producers		—		682			(682	)
MSCI Global Gold Miners		171,367		(266	)		(171,101	)
MSCI Global Metals & Mining Producers		10,226,274		3,248			(10,229,522	)
MSCI Global Silver Miners		—		12,791			(12,791	)

The tax character of distributions paid during the years ended August 31, 2014 and August 31, 2013 was as follows:


iShares ETF	2014		2013
MSCI Global Agriculture Producers
Ordinary income	$	869,161	$	289,367


MSCI Global Energy Producers
Ordinary income	$	128,943	$	125,608


MSCI Global Gold Miners
Ordinary income	$	410,920	$	426,169


MSCI Global Metals & Mining Producers
Ordinary income	$	4,935,233	$	4,641,648


MSCI Global Silver Miners
Ordinary income	$	104,622	$	44,671


52		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2014, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a			Qualified Late-Year Losses^b			Total
MSCI Global Agriculture Producers	$	146,167	$	(17,007	)	$	(130,474	)	$	(534,779	)	$	(536,093	)
MSCI Global Energy Producers		39,534		(38,653	)		626,512			(89,227	)		538,166
MSCI Global Gold Miners		57,761		(1,723,545	)		(13,271,955	)		(2,752,822	)		(17,690,561	)
MSCI Global Metals & Mining Producers		708,967		(1,369,119	)		5,587,704			(3,327,815	)		1,599,737
MSCI Global Silver Miners		230,835		(112,746	)		(1,256,912	)		(500,538	)		(1,639,361	)

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of August 31, 2014, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:


iShares ETF	Non- Expiring
MSCI Global Agriculture Producers	$	17,007
MSCI Global Energy Producers		38,653
MSCI Global Gold Miners		1,723,545
MSCI Global Metals & Mining Producers		1,369,119
MSCI Global Silver Miners		112,746

For the year ended August 31, 2014, the iShares MSCI Global Agriculture Producers ETF utilized $1,531 of its capital loss carryforwards.

As of August 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI Global Agriculture Producers	$	47,102,416	$	3,617,890	$	(3,747,845	)	$	(129,955	)
MSCI Global Energy Producers		7,778,520		859,365		(232,782	)		626,583
MSCI Global Gold Miners		84,307,955		3,497,855		(16,769,945	)		(13,272,090	)
MSCI Global Metals & Mining Producers		180,510,676		18,373,716		(12,782,564	)		5,591,152
MSCI Global Silver Miners		15,517,271		841,572		(2,098,427	)		(1,256,855	)


NOTES TO FINANCIAL STATEMENTS			53

Notes to Financial Statements (Continued)

iSHARES^®, INC.

7.	*SUBSEQUENT EVENTS*


54		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

iShares, Inc.:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI Global Agriculture Producers ETF, iShares MSCI Global Energy Producers ETF, iShares MSCI Global Gold Miners ETF, iShares MSCI Global Metals & Mining Producers ETF and iShares MSCI Global Silver Miners ETF (the “Funds”) at August 31, 2014, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2014


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			55

Tax Information (Unaudited)

iSHARES^®, INC.


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Global Gold Miners	$	584,109	$	79,457
MSCI Global Metals & Mining Producers		4,680,426		269,354
MSCI Global Silver Miners		93,071		8,507

For corporate shareholders, the following percentages of the income dividends paid by the Funds during the fiscal year ended August 31, 2014 qualified for the dividends-received deduction:


iShares ETF	Dividends- Received Deduction
MSCI Global Agriculture Producers		38.19	%
MSCI Global Energy Producers		43.53
MSCI Global Gold Miners		21.77
MSCI Global Metals & Mining Producers		11.01
MSCI Global Silver Miners		0.41


iShares ETF	Qualified Dividend Income
MSCI Global Agriculture Producers	$	869,161
MSCI Global Energy Producers		128,943
MSCI Global Gold Miners		490,377
MSCI Global Metals & Mining Producers		4,046,386
MSCI Global Silver Miners		94,319


56		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			57

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

comparison of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Boards, was also considered.


58		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds did not provide for any breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that should material economies of scale exist in the future, a breakpoint structure for the Funds may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the investment advisory fee rates incorporate potential economies of scale and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially similar investment objectives and strategies as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			59

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


60		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^®, INC.

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	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
MSCI Global Agriculture Producers	$	0.536425	$	—	$	0.016805	$	0.553230		97	%		—	%		3	%		100	%
MSCI Global Energy Producers		0.644714		—		—		0.644714		100			—			—			100
MSCI Global Gold Miners		0.082362		—		—		0.082362		100			—			—			100
MSCI Global Metals & Mining Producers		0.635364		—		0.016834		0.652198		97			—			3			100
MSCI Global Silver Miners		0.122015		—		0.024362		0.146377		83			—			17			100

Premium/Discount Information


SUPPLEMENTAL INFORMATION			61

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five calendar years (or for each full calendar quarter completed after the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.

iShares MSCI Global Agriculture Producers ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.5% and Less than 2.0%		2		0.35	%
Greater than 1.0% and Less than 1.5%		12		2.13
Greater than 0.5% and Less than 1.0%		248		43.97
Between 0.5% and –0.5%		290		51.42
Less than –0.5% and Greater than –1.0%		11		1.95
Less than –1.0% and Greater than –1.5%		1		0.18

		564		100.00	%

iShares MSCI Global Energy Producers ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		14		2.48	%
Between 0.5% and –0.5%		482		85.46
Less than –0.5% and Greater than –1.0%		58		10.28
Less than –1.0% and Greater than –1.5%		9		1.60
Less than –1.5% and Greater than –2.0%		1		0.18

		564		100.00	%


62		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Global Gold Miners ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		3		0.53	%
Greater than 2.0% and Less than 2.5%		2		0.35
Greater than 1.5% and Less than 2.0%		2		0.35
Greater than 1.0% and Less than 1.5%		15		2.66
Greater than 0.5% and Less than 1.0%		129		22.87
Between 0.5% and –0.5%		397		70.40
Less than –0.5% and Greater than –1.0%		11		1.95
Less than –1.0% and Greater than –1.5%		3		0.53
Less than –1.5% and Greater than –2.0%		1		0.18
Less than –2.0%		1		0.18

		564		100.00	%

iShares MSCI Global Metals & Mining Producers ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		5		0.89	%
Greater than 4.0% and Less than 4.5%		1		0.18
Greater than 3.5% and Less than 4.0%		1		0.18
Greater than 3.0% and Less than 3.5%		1		0.18
Greater than 2.5% and Less than 3.0%		6		1.06
Greater than 2.0% and Less than 2.5%		6		1.06
Greater than 1.5% and Less than 2.0%		22		3.90
Greater than 1.0% and Less than 1.5%		89		15.78
Greater than 0.5% and Less than 1.0%		143		25.35
Between 0.5% and –0.5%		241		42.73
Less than –0.5% and Greater than –1.0%		36		6.38
Less than –1.0% and Greater than –1.5%		12		2.13
Less than –1.5% and Greater than –2.0%		1		0.18

		564		100.00	%


SUPPLEMENTAL INFORMATION			63

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Global Silver Miners ETF

Period Covered: April 1, 2012 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		1		0.18	%
Greater than 2.5% and Less than 3.0%		2		0.35
Greater than 2.0% and Less than 2.5%		1		0.18
Greater than 1.5% and Less than 2.0%		12		2.13
Greater than 1.0% and Less than 1.5%		40		7.09
Greater than 0.5% and Less than 1.0%		113		20.04
Between 0.5% and –0.5%		254		45.03
Less than –0.5% and Greater than –1.0%		67		11.88
Less than –1.0% and Greater than –1.5%		36		6.38
Less than –1.5% and Greater than –2.0%		27		4.79
Less than –2.0% and Greater than –2.5%		8		1.42
Less than –2.5% and Greater than –3.0%		3		0.53

		564		100.00	%


64		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information

iSHARES^®, INC.

Interested Directors

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc.

Mark Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.


DIRECTOR AND OFFICER INFORMATION			65

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert H. Silver (59)	Director (since 2007); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Independent Chairman of iShares, Trust, iShares MSCI Russia Capped ETF, Inc. and iShares U.S. ETF Trust (since 2012).
Cecilia H. Herbert (65)	Director (since 2005); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Forward Funds (34 portfolios) (since 2009).
Charles A. Hurty (70)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).

John E. Kerrigan (59)	Director (since 2005); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).


66		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
John E. Martinez (53)	Director (since 2003); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).
George G.C. Parker (75)	Director (since 2002).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).
Madhav V. Rajan (50)	Director (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).


DIRECTOR AND OFFICER INFORMATION			67

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).
Jack Gee (54)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).
Edward B. Baer (45)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).
Eilleen M. Clavere (62)	Secretary (since 2007).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).
Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).
Amy Schioldager (51)	Executive Vice President (since 2007).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2007).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


68		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			69

Notes:


70		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-812-0814

LOGO

AUGUST 31, 2014

2014 ANNUAL REPORT

iShares, Inc.

^Ø

iShares Core MSCI Emerging Markets ETF | IEMG | NYSE Arca

Table of Contents


Management’s Discussion of Fund Performance			5
About Fund Performance			8
Shareholder Expenses			8
Consolidated Schedule of Investments			9
Consolidated Financial Statements			38
Consolidated Financial Highlights			41
Notes to Consolidated Financial Statements			42
Report of Independent Registered Public Accounting Firm			53
Tax Information			54
Board Review and Approval of Investment Advisory Contract			55
Supplemental Information			59
Director and Officer Information			62

Management’s Discussion of Fund Performance

iSHARES^®, INC.

EMERGING MARKETS OVERVIEW


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® CORE MSCI EMERGING MARKETS ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		20.05%		20.98%		20.12%		20.05%		20.98%		20.12%
Since Inception		6.83%		6.87%		6.83%		13.15%		13.24%		13.13%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 10/18/12. The first day of secondary market trading was 10/22/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,140.30	$	0.97	$	1,000.00	$	1,024.30	$	0.92		0.18%


6		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

The iShares Core MSCI Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of large-, mid- and small-capitalization emerging market equities, as represented by the MSCI Emerging Markets Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 20.05%, net of fees, while the total return for the Index was 20.12%.

As represented by the Index, emerging markets stocks advanced by 20% for the reporting period. Of the 25 countries represented in the Index, 19 generated positive returns for the reporting period, including the three largest country constituents: China, South Korea, and Taiwan, which together comprised more than 45% of the Index as of the end of the reporting period. The markets that provided the strongest results within the Index included India and Brazil, which produced returns of 57% and 31%, respectively, for the reporting period.

Among the countries which declined within the Index, Hungary was the weakest performer, falling by 14% for the reporting period. Persistent weakness in the Hungarian economy weighed on the country’s stock market. Russia and Chile were also notable decliners within the Index.

Currency fluctuations relative to the U.S. dollar had a modestly positive impact on Index performance for the reporting period. In local currency terms, the Index returned 17.99% for the reporting period. The U.S. dollar was largely unchanged against the Chinese yuan and Taiwan dollar, but it declined by 6% versus the Brazilian real and 8.5% against the South Korean won for the reporting period. A weaker U.S. dollar increases international equity returns for U.S. investors.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	26.57	%
Information Technology	16.65
Consumer Discretionary	10.30
Energy	9.53
Materials	8.86
Consumer Staples	8.10
Industrials	7.49
Telecommunication Services	6.65
Utilities	3.47
Health Care	2.38

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 8/31/14


Country		Percentage of Total Investments*


China	19.04	%
South Korea	15.35
Taiwan	12.91
Brazil	11.03
South Africa	7.47
India	6.62
Mexico	4.91
Russia	4.06
Malaysia	3.92
Indonesia	2.66

TOTAL	87.97	%

Excludes money market funds.


MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE			7

About Fund Performance

Shareholder Expenses


8		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
COMMON STOCKS — 93.77%

BRAZIL — 6.53%
Abril Educacao SA Units		52,600	$	921,038
Aliansce Shopping Centers SA		117,100		1,091,688
ALL – America Latina Logistica SA		539,600		1,989,542
Alupar Investimento SA Units		100,400		829,207
AMBEV SA		5,419,100		39,476,807
Arezzo Industria e Comercio SA		59,300		851,516
Autometal SA		54,400		469,471
B2W Companhia Global do Varejo^a		132,951		2,251,947
Banco ABC Brasil SA^a		2,729		17,563
Banco Bradesco SA		744,060		13,307,985
Banco do Brasil SA		990,400		15,487,518
Banco Pan SA^a		168,863		264,137
Banco Santander (Brasil) SA Units		1,064,400		7,354,304
BB Seguridade Participacoes SA		809,000		12,922,017
BM&F Bovespa SA		2,076,600		12,528,927
BR Malls Participacoes SA		503,100		5,232,123
BR Properties SA		195,200		1,299,850
Brasil Brokers Participacoes SA		391,200		632,899
BRF SA		753,200		20,163,429
CCR SA		995,200		9,011,084
Centrais Eletricas Brasileiras SA		363,700		1,324,732
CETIP SA – Mercados Organizados		232,662		3,394,970
Cielo SA		813,760		15,260,159
Companhia de Saneamento Basico do Estado de Sao Paulo		386,400		3,693,815
Companhia de Saneamento de Minas Gerais SA		73,500		1,313,937
Companhia Hering SA		177,900		2,225,390
Companhia Siderurgica Nacional SA		852,600		3,741,830
Cosan SA Industria e Comercio		157,800		3,279,346
CPFL Energia SA		274,100		2,767,276


Security	Shares		Value
Cyrela Brazil Realty SA Empreendimentos e Participacoes		298,800	$	1,894,917
Duratex SA		352,429		1,586,092
EcoRodovias Infraestrutura e Logistica SA		252,000		1,610,512
EDP Energias do Brasil SA		295,900		1,494,344
Embraer SA		763,000		7,437,166
Equatorial Energia SA		184,376		2,167,142
Estacio Participacoes SA		350,100		4,651,728
Eternit SA		183,300		688,128
Even Construtora e Incorporadora SA		339,200		1,026,294
EZ TEC Empreendimentos e Participacoes SA		67,600		745,925
Fibria Celulose SA^a		285,800		2,973,531
Fleury SA		96,300		688,180
GAEC Educacao SA		44,200		591,822
Gafisa SA		561,300		845,380
Helbor Empreendimentos SA		243,970		650,936
Hypermarcas SA^a		378,500		3,291,819
Iguatemi Empresa de Shopping Centers SA		92,700		1,139,304
International Meal Co. Holdings SA		76,300		668,015
Iochpe-Maxion SA		108,700		869,095
JBS SA		852,900		3,857,500
Julio Simoes Logistica SA		109,000		579,697
Klabin SA		490,300		2,491,435
Kroton Educacional SA		397,314		11,905,836
Light SA		89,100		979,580
Linx SA		32,500		745,559
Localiza Rent A Car SA		169,635		3,021,141
Lojas Americanas SA		197,425		1,147,025
Lojas Renner SA		157,800		5,403,515
LPS Brasil – Consultoria de Imoveis SA		112,900		555,027
M Dias Branco SA		52,600		2,374,293
Magazine Luiza SA		107,900		434,001
Magnesita Refratarios SA		288,800		496,919
Marfrig Global Foods SA^a		355,600		1,207,821
Mills Estruturas e Servicos de Engenharia SA		113,500		1,161,605
Minerva SA^a		128,000		762,548


CONSOLIDATED SCHEDULE OF INVESTMENTS			9

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
MRV Engenharia e Participacoes SA		392,100	$	1,598,155
Multiplan Empreendimentos Imobiliarios SA		105,200		2,713,277
Multiplus SA		59,000		864,875
Natura Cosmeticos SA		210,400		3,856,228
Odontoprev SA		302,100		1,317,734
PDG Realty SA Empreendimentos e Participacoes^a		1,470,300		979,083
Petroleo Brasileiro SA		3,422,600		33,865,775
Porto Seguro SA		132,800		1,969,254
Prumo Logistica SA^a		735,845		348,594
Qualicorp SA^a		242,800		3,038,323
Raia Drogasil SA		251,000		2,445,443
Restoque Comercio e Confeccoes de Roupas SA^a		133,500		542,938
Santos Brasil Participacoes SA Units		64,600		494,558
Sao Martinho SA		63,100		1,280,020
SLC Agricola SA		76,300		590,267
Smiles SA		46,600		824,723
Sonae Sierra Brasil SA		56,600		480,615
Souza Cruz SA		435,200		4,076,687
Sul America SA Units		213,089		1,473,257
Technos SA		93,400		517,184
Tecnisa SA		211,300		601,542
Tegma Gestao Logistica SA		51,000		449,018
TIM Participacoes SA		966,700		5,422,040
Totvs SA		157,800		2,881,593
TPI – Triunfo Participacoes e Investimentos SA		127,700		352,130
Tractebel Energia SA		178,700		2,995,704
Transmissora Alianca de Energia Eletrica SA		102,500		1,069,183
Ultrapar Participacoes SA		405,400		10,452,292
Vale SA		1,532,500		19,944,314
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		69,300		1,176,912
Vanguarda Agro SA^a		574,429		631,537
Via Varejo SA^a		142,100		1,587,674
WEG SA		321,430		4,020,838

				370,110,106


Security	Shares		Value
CHILE — 1.28%
AES Gener SA		2,970,101	$	1,518,398
Aguas Andinas SA Series A		2,963,437		1,858,437
Banco de Chile		26,483,702		3,231,871
Banco de Credito e Inversiones		40,115		2,186,315
Banco Santander (Chile) SA		79,179,965		4,691,353
Besalco SA		542,317		371,149
CAP SA		97,772		1,161,592
Cencosud SA		1,531,843		4,596,306
Colbun SA		9,424,479		2,466,555
Compania Cervecerias Unidas SA		175,570		1,885,760
Compania SudAmericana de Vapores SA^a		9,872,666		415,507
CorpBanca SA		162,281,045		1,994,076
Cruz Blanca Salud SA		400,463		326,383
E.CL SA		657,034		947,733
Empresa Nacional de Electricidad SA		3,802,925		5,810,103
Empresa Nacional de Telecomunicaciones SA		149,401		1,713,867
Empresas CMPC SA		1,456,860		3,626,384
Empresas Copec SA		519,114		6,525,089
Enersis SA		22,567,481		7,596,777
Inversiones Aguas Metropolitanas SA		484,298		776,130
Inversiones la Construccion SA		49,006		645,505
LATAM Airlines Group SA^a		378,096		4,677,484
Masisa SA		2,505,068		114,283
Parque Arauco SA		726,737		1,351,111
S.A.C.I. Falabella SA		1,118,417		8,422,546
SalfaCorp SA		661,320		505,618
Sociedad Matriz SAAM SA		9,218,037		759,233
Sonda SA		626,596		1,452,063
Vina Concha y Toro SA		594,746		1,159,926

				72,787,554
CHINA — 18.93%
361 Degrees International Ltd.		1,847,000		543,365
AAC Technologies Holdings Inc.^b		856,000		5,583,221
Agile Property Holdings Ltd.		2,104,000		1,650,590
Agricultural Bank of China Ltd. Class H		24,321,000		11,234,515


10		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Air China Ltd. Class H		2,118,000	$	1,311,768
Ajisen (China) Holdings Ltd.		842,000		695,316
Alcatel-Lucent^a		2,660,000		432,456
Alibaba Pictures Group Ltd.^a		5,860,000		1,217,344
Aluminum Corp. of China Ltd. Class H^a,b		4,696,000		1,993,489
Anhui Conch Cement Co. Ltd. Class H^b		1,578,000		5,701,051
Anhui Expressway Co. Ltd. Class H		948,000		568,789
Anta Sports Products Ltd.		1,185,000		2,275,156
Anton Oilfield Services Group^b		1,536,000		659,972
APT Satellite Holdings Ltd.		373,000		548,660
Asia Cement China Holdings Corp.		864,000		595,312
Asian Citrus Holdings Ltd.^b		2,252,000		479,449
AviChina Industry & Technology Co. Ltd. Class H		2,608,000		1,554,674
Bank of China Ltd. Class H		90,499,000		42,037,432
Bank of Communications Co. Ltd. Class H		9,867,000		7,205,953
BBMG Corp. Class H		1,405,000		1,047,838
Beijing Capital International Airport Co. Ltd. Class H		1,844,000		1,441,861
Beijing Capital Land Ltd. Class H		1,692,000		611,291
Beijing Enterprises Holdings Ltd.		595,000		5,128,417
Beijing Enterprises Water Group Ltd.^b		5,108,000		3,479,964
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.		352,000		464,177
Belle International Holdings Ltd.		5,355,000		6,847,358
Biostime International Holdings Ltd.^b		232,500		868,483
Bosideng International Holdings Ltd.^b		3,622,000		574,835
Brilliance China Automotive Holdings Ltd.		3,502,000		6,488,742
BYD Co. Ltd. Class H^b		743,000		5,277,595
BYD Electronic International Co. Ltd.		981,500		911,828
C C Land Holdings Ltd.		3,031,000		637,475


Security	Shares		Value
Carnival Group International Holdings Ltd.^a		9,367,000	$	1,329,484
Chaowei Power Holdings Ltd.^b		987,000		518,324
China Agri-Industries Holdings Ltd.^b		2,638,200		1,079,088
China Aoyuan Property Group Ltd.		3,583,000		601,008
China BlueChemical Ltd. Class H		2,242,000		1,105,068
China Cinda Asset Management Co. Ltd.^a		6,110,000		3,129,836
China CITIC Bank Corp. Ltd. Class H		9,458,000		5,967,577
China Coal Energy Co. Class H^b		4,710,000		2,868,486
China Communications Construction Co. Ltd. Class H		5,064,000		3,691,748
China Communications Services Corp. Ltd. Class H		2,946,000		1,421,655
China Construction Bank Corp. Class H		82,488,000		61,306,024
China COSCO Holdings Co. Ltd. Class H^a,b		3,095,000		1,333,819
China Datang Corp. Renewable Power Co. Ltd. Class H		3,576,000		549,078
China Dongxiang Group Co.		4,245,000		914,711
China Everbright Bank Co. Ltd.		3,154,000		1,473,195
China Everbright International Ltd.^b		2,918,000		3,998,524
China Everbright Ltd.		1,052,000		1,995,368
China Gas Holdings Ltd.		2,356,000		4,195,119
China High Speed Transmission Equipment Group Co. Ltd.^a,b		1,306,000		1,134,092
China Huishan Dairy Holdings Co. Ltd.^a,b		7,006,000		1,627,169
China Huiyuan Juice Group Ltd.^a		794,500		343,422
China International Marine Containers (Group) Co. Ltd. Class H		607,000		1,306,395
China Life Insurance Co. Ltd. Class H		8,562,000		24,580,750


CONSOLIDATED SCHEDULE OF INVESTMENTS			11

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
China Lilang Ltd.		758,000	$	511,518
China Longyuan Power Group Corp. Ltd. Class H		3,495,000		3,779,037
China LotSynergy Holdings Ltd.^b		8,440,000		740,528
China Lumena New Materials Corp.^b,c		2,584,000		375,090
China Medical System Holdings Ltd.^b		1,343,000		1,940,814
China Mengniu Dairy Co. Ltd.		1,582,000		7,338,297
China Merchants Bank Co. Ltd. Class H		5,250,964		10,041,004
China Merchants Holdings (International) Co. Ltd.		1,306,000		4,330,781
China Metal Recycling Holdings Ltd.^a,b,c		62,400		—
China Minsheng Banking Corp. Ltd. Class H		7,200,100		6,763,318
China Mobile Ltd.		7,007,500		87,162,571
China Modern Dairy Holdings Ltd.^a,b		2,443,000		1,197,835
China National Building Material Co. Ltd. Class H		3,250,000		2,985,749
China National Materials Co. Ltd. Class H		2,392,000		570,983
China New Town Development Co. Ltd.^a		5,680,000		315,142
China Oil and Gas Group Ltd.^b		10,520,000		1,846,055
China Oilfield Services Ltd. Class H		2,178,000		6,449,565
China Overseas Land & Investment Ltd.^b		5,260,000		14,795,585
China Pacific Insurance (Group) Co. Ltd. Class H		3,044,200		11,430,259
China Petroleum & Chemical Corp. Class H		29,278,200		29,693,187
China Power International Development Ltd.		3,158,000		1,438,390
China Power New Energy Development Co. Ltd.^a		6,300,000		447,088
China Precious Metal Resources Holdings Co. Ltd.^a,b		6,474,000		793,572
China Railway Construction Corp. Ltd. Class H^b		2,306,500		2,208,245


Security	Shares		Value
China Railway Group Ltd. Class H		4,681,000	$	2,421,993
China Rare Earth Holdings Ltd.^a		4,656,000		660,839
China Resources and Transportation Group Ltd.^a,b		20,700,000		881,402
China Resources Cement Holdings Ltd.^b		2,364,000		1,625,790
China Resources Enterprise Ltd.		1,398,000		3,760,998
China Resources Gas Group Ltd.		1,056,000		3,072,560
China Resources Land Ltd.		2,384,000		5,456,947
China Resources Power Holdings Co. Ltd.		2,222,000		6,723,212
China Rongsheng Heavy Industries Group Holdings Ltd.^a,b		4,031,500		707,450
China SCE Property Holdings Ltd.^b		3,139,200		595,424
China Shanshui Cement Group Ltd.^b		2,434,000		895,067
China Shenhua Energy Co. Ltd. Class H		3,881,500		11,193,529
China Shineway Pharmaceutical Group Ltd.		526,000		912,168
China Shipping Container Lines Co. Ltd. Class H^a,b		4,574,000		1,304,303
China Singyes Solar Technologies Holdings Ltd.		586,000		972,363
China South City Holdings Ltd.^b		2,324,000		1,160,478
China State Construction International Holdings Ltd.		2,066,000		3,332,194
China Suntien Green Energy Corp. Ltd. Class H^b		2,318,000		699,873
China Taiping Insurance Holdings Co. Ltd.^a		1,017,200		2,475,358
China Telecom Corp. Ltd. Class H		15,896,000		9,824,563
China Traditional Chinese Medicine Co. Ltd.^a		1,138,000		496,305
China Travel International Investment Hong Kong Ltd.^b		3,960,000		1,251,847


12		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
China Unicom (Hong Kong) Ltd.		5,500,000	$	9,807,552
China Vanke Co. Ltd.^a		1,458,487		2,732,493
China Water Affairs Group Ltd.^b		1,720,000		619,188
China Yongda Automobiles Services Holdings Ltd.^b		237,000		207,333
China Yurun Food Group Ltd.^a,b		1,992,000		971,563
China ZhengTong Auto Services Holdings Ltd.		1,275,500		681,351
Chinasoft International Ltd.^a,b		2,010,000		731,366
Chongqing Changan Automobile Co. Ltd.		1,003,300		2,071,289
Chongqing Rural Commercial Bank Co. Ltd. Class H		3,062,000		1,521,093
CIMC Enric Holdings Ltd.		1,052,000		1,164,643
CITIC 21CN Co. Ltd.^a		2,866,000		2,255,776
CITIC Pacific Ltd.		2,620,000		5,097,914
CITIC Resources Holdings Ltd.^a		3,350,000		540,312
CITIC Securities Co. Ltd. Class H		1,232,000		2,924,950
CNOOC Ltd.		20,441,000		41,092,209
Comba Telecom Systems Holdings Ltd.^a,b		1,953,500		849,441
Coolpad Group Ltd.		4,024,000		872,282
Cosco International Holdings Ltd.^b		1,840,000		897,428
COSCO Pacific Ltd.		2,114,000		2,962,270
Country Garden Holdings Co. Ltd.^b		5,404,000		2,398,632
CPMC Holdings Ltd.		783,000		618,305
CSPC Pharmaceutical Group Ltd.^b		2,832,000		2,367,872
CSR Corp Ltd. Class H		2,386,000		2,151,976
Dah Chong Hong Holdings Ltd.^b		1,219,000		756,552
Daphne International Holdings Ltd.^b		1,338,000		690,567
Datang International Power Generation Co. Ltd. Class H		3,062,000		1,698,883
Dazhong Transportation Group Co. Ltd. Class B		738,800		480,959
Digital China Holdings Ltd.		1,149,000		1,113,397


Security	Shares		Value
Dongfeng Motor Group Co. Ltd. Class H		3,130,000	$	5,799,475
Dongyue Group Ltd.^b		1,736,000		725,746
ENN Energy Holdings Ltd.^b		1,052,000		7,431,727
EverChina International Holdings Co. Ltd.^a,b		10,650,000		522,183
Evergrande Real Estate Group Ltd.^b		6,759,000		2,825,643
Fantasia Holdings Group Co. Ltd.^b		3,579,000		429,472
Far East Horizon Ltd.		1,699,000		1,370,135
FDG Electric Vehicles Ltd.^a,b		9,840,000		698,309
First Tractor Co. Ltd. Class H		724,000		496,981
Fosun International Ltd.		2,031,000		2,494,806
Franshion Properties (China) Ltd.		4,580,000		1,241,008
Fufeng Group Ltd.		1,517,400		601,075
GCL-Poly Energy Holdings Ltd.^a,b		11,667,000		4,200,039
Geely Automobile Holdings Ltd.^b		6,235,000		2,389,367
Glorious Property Holdings Ltd.^a		3,431,000		486,971
Golden Eagle Retail Group Ltd.		680,000		836,164
GOME Electrical Appliances Holdings Ltd.		12,172,000		2,167,359
Goodbaby International Holdings Ltd.^b		1,179,000		585,685
Great Wall Motor Co. Ltd. Class H		1,315,000		5,582,279
Greatview Aseptic Packaging Co. Ltd.^b		1,482,000		1,147,333
Guangdong Investment Ltd.		3,156,000		3,815,632
Guangdong Land Holdings Ltd.		1,884,000		408,395
Guangzhou Automobile Group Co. Ltd. Class H		3,156,000		3,282,176
Guangzhou R&F Properties Co. Ltd. Class H		1,190,800		1,435,078
Haier Electronics Group Co. Ltd.		1,247,000		3,604,162
Haitian International Holdings Ltd.		771,000		2,009,535
Haitong Securities Co. Ltd. Class H		1,547,200		2,471,479


CONSOLIDATED SCHEDULE OF INVESTMENTS			13

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Hanergy Solar Group Ltd.^a,b		13,182,000	$	2,160,105
Hangzhou Steam Turbine Co. Ltd. Class B		556,700		661,562
Harbin Electric Co. Ltd. Class H		1,130,000		672,155
HC International Inc.^a,b		414,000		795,933
Hengan International Group Co. Ltd.^b		834,000		8,894,034
Hengdeli Holdings Ltd.^b		3,966,800		716,569
Hi Sun Technology (China) Ltd.^a,b		2,472,000		590,079
Hidili Industry International Development Ltd.^a,b		3,800,000		446,185
Hisense Kelon Electrical Holdings Co. Ltd. Class H^a		529,000		663,456
Honbridge Holdings Ltd.^a		2,506,000		501,190
Honghua Group Ltd.^b		2,391,000		635,531
Hopson Development Holdings Ltd.^a,b		1,052,000		1,060,124
Hua Han Bio-Pharmaceutical Holdings Ltd. Class H		3,184,160		1,010,694
Huabao International Holdings Ltd.^b		2,485,000		1,805,197
Huaneng Power International Inc. Class H		4,208,000		5,060,361
Hunan Nonferrous Metal Corp. Ltd. Class H^a		2,462,000		876,773
Industrial and Commercial Bank of China Ltd. Class H		84,355,000		55,945,330
Inner Mongolia Yitai Coal Co. Ltd. Class B		1,270,500		2,145,874
Intime Retail Group Co. Ltd.^b		1,488,500		1,354,029
Jiangsu Expressway Co. Ltd. Class H		1,422,000		1,620,131
Jiangsu Future Land Co. Ltd. Class B		1,203,100		609,972
Jiangxi Copper Co. Ltd. Class H		1,503,000		2,656,865
Ju Teng International Holdings Ltd.		1,178,000		682,467
Kaisa Group Holdings Ltd.^b		2,014,000		740,618
Kingboard Chemical Holdings Co. Ltd.		785,200		1,631,158
Kingboard Laminates Holdings Ltd.^b		1,420,000		630,285


Security	Shares		Value
Kingdee International Software Group Co. Ltd.^a		2,446,000	$	789,017
Kingsoft Corp. Ltd.^b		780,000		2,234,279
Kunlun Energy Co. Ltd.		4,208,000		6,949,853
KWG Property Holdings Ltd.		1,468,500		1,066,774
Landing International Development Ltd.^a		7,205,000		441,588
Lao Feng Xiang Co. Ltd. Class B		256,006		712,721
Lee & Man Paper Manufacturing Ltd.		1,722,000		1,013,183
Lenovo Group Ltd.		7,760,000		11,855,048
Li Ning Co. Ltd.^a,b		1,302,500		726,025
Lianhua Supermarket Holdings Co. Ltd. Class H^a		626,000		363,477
Lijun International Pharmaceutical (Holding) Co. Ltd.		2,678,000		1,364,890
Longfor Properties Co. Ltd.		1,607,000		2,052,773
Lonking Holdings Ltd.		3,815,000		669,458
Luthai Textile Co. Ltd. Class B		472,969		651,769
Microport Scientific Corp.^a,b		742,000		428,916
MIE Holdings Corp.^b		2,698,000		452,559
Mingfa Group International Co. Ltd.^a		3,066,000		826,815
Minth Group Ltd.^b		1,052,000		2,239,699
MMG Ltd.		2,140,000		778,669
NetDragon Websoft Inc.		259,000		500,612
New China Life Insurance Co. Ltd. Class H		970,800		3,463,497
New World China Land Ltd.		3,006,000		1,842,351
New World Department Store China Ltd.^b		876,000		375,260
Nexteer Automotive Group Ltd.^b		992,000		852,464
Nine Dragons Paper (Holdings) Ltd.^b		1,936,000		1,511,300
North Mining Shares Co. Ltd.^a,b		12,530,000		565,860
NVC Lighting Holdings Ltd.		1,831,000		418,169
Parkson Retail Group Ltd.^b		1,696,000		560,216
PAX Global Technology Ltd.^a		715,000		650,407
People’s Insurance Co. Group of China Ltd. Class H		7,720,000		3,227,396
PetroChina Co. Ltd. Class H		24,202,000		34,350,561


14		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Phoenix Satellite Television Holdings Ltd.^b		1,786,000	$	606,076
PICC Property and Casualty Co. Ltd. Class H		4,208,000		6,982,430
Ping An Insurance (Group) Co. of China Ltd. Class H		2,367,000		19,271,588
Poly Property Group Co. Ltd.		2,587,000		1,124,906
Ports Design Ltd.^b		1,420,500		590,183
Real Nutriceutical Group Ltd.^b		2,240,000		664,761
Renhe Commercial Holdings Co. Ltd.^a,b		15,500,000		709,986
REXLot Holdings Ltd.^b		13,150,000		1,510,100
Road King Infrastructure Ltd.		582,000		523,414
Sany Heavy Equipment International Holdings Co. Ltd.^a		1,948,000		424,781
Semiconductor Manufacturing International Corp.^a,b		28,430,000		2,677,871
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		2,340,000		2,370,148
Shanghai Electric Group Co. Ltd. Class H		3,452,000		1,514,396
Shanghai Fosun Pharmaceutical (Group) Co. Ltd.		487,000		1,583,505
Shanghai Industrial Holdings Ltd.		573,000		1,911,195
Shanghai Industrial Urban Development Group Ltd.^a		2,672,000		510,256
Shanghai Jin Jiang International Hotels Group Co. Ltd. Class H		1,894,000		632,950
Shanghai Mechanical and Electrical Industry Co. Ltd. Class B		354,400		748,847
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		825,900		1,694,394
Shenzhen Expressway Co. Ltd. Class H		1,360,000		859,854
Shenzhen International Holdings Ltd.		1,130,750		1,514,446
Shenzhen Investment Ltd.^b		2,880,000		917,866
Shenzhou International Group Holdings Ltd.^b		659,000		2,053,489


Security	Shares		Value
Shimao Property Holdings Ltd.^b		1,627,500	$	3,582,531
Shougang Concord International Enterprises Co. Ltd.^a,b		15,698,000		729,183
Shui On Land Ltd.		4,493,666		1,177,028
Shunfeng Photovoltaic International Ltd.^a		1,136,000		1,436,463
Sihuan Pharmaceutical Holdings Group Ltd.		4,980,000		3,334,929
Sino Biopharmaceutical Ltd.		4,208,000		3,876,715
Sino Oil And Gas Holdings Ltd.^a,b		17,305,000		535,886
Sino-Ocean Land Holdings Ltd.		3,889,500		2,198,152
Sinofert Holdings Ltd.^a,b		3,798,000		592,967
Sinopec Engineering Group Co. Ltd.		1,393,000		1,588,888
Sinopec Kantons Holdings Ltd.^b		1,274,000		1,066,852
Sinopec Shanghai Petrochemical Co. Ltd. Class H		4,195,000		1,401,915
Sinopharm Group Co. Ltd. Class H		1,162,000		4,055,676
Sinotrans Ltd. Class H		2,251,000		1,516,128
Sinotrans Shipping Ltd.^a,b		2,284,000		716,131
Skyworth Digital Holdings Ltd.^b		2,226,000		1,194,836
SOHO China Ltd.		2,039,000		1,668,001
Sun Art Retail Group Ltd.^b		2,770,000		3,306,065
Sunac China Holdings Ltd.^b		1,853,000		1,436,944
Sunny Optical Technology Group Co Ltd.^b		828,000		1,128,195
Superb Summit International Group Ltd.^a		5,125,000		1,058,044
TCC International Holdings Ltd.		1,386,000		615,193
TCL Communication Technology Holdings Ltd.		718,000		890,303
TCL Multimedia Technology Holdings Ltd.^a,b		940,000		360,225
Tech Pro Technology Development Ltd.^a,b		2,014,000		1,135,614
Tencent Holdings Ltd.		5,913,900		96,528,241


CONSOLIDATED SCHEDULE OF INVESTMENTS			15

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Tiangong International Co. Ltd.^b		2,182,000	$	495,516
Tianjin Development Holdings Ltd.^b		630,000		528,377
Tianjin Port Development Holdings Ltd.^b		3,424,000		569,919
Tianneng Power International Ltd.^b		1,264,000		463,186
Tibet 5100 Water Resources Holdings Ltd.^b		1,950,000		641,600
Tingyi (Cayman Islands) Holding Corp.		2,230,000		6,258,266
Tong Ren Tang Technologies Co. Ltd. Class H		1,052,000		1,476,844
Tongda Group Holdings Ltd.		3,700,000		506,055
Towngas China Co. Ltd.		1,165,000		1,241,640
Travelsky Technology Ltd. Class H		1,174,000		1,154,285
Tsingtao Brewery Co. Ltd. Class H		410,000		3,113,295
Uni-President China Holdings Ltd.		1,588,200		1,434,475
V1 Group Ltd.^a		4,770,000		461,604
Vinda International Holdings Ltd.		398,000		612,138
Wanda Commercial Properties Group Co. Ltd.^a		1,321,000		378,395
Want Want China Holdings Ltd.		6,858,000		8,503,755
Wasion Group Holdings Ltd.		828,000		691,233
Weichai Power Co. Ltd. Class H		571,000		2,313,426
Weiqiao Textile Co. Ltd. Class H		833,500		422,657
Welling Holding Ltd.		1,572,000		405,670
West China Cement Ltd.		5,472,000		586,022
Wisdom Holdings Group^b		979,000		545,703
Xingda International Holdings Ltd.		1,347,000		502,291
Xinhua Winshare Publishing and Media Co. Ltd. Class H		1,000,000		868,370
XTEP International Holdings Ltd.^b		1,170,000		548,002
Yanchang Petroleum International Ltd.^a,b		9,050,000		478,765


Security	Shares		Value
Yanzhou Coal Mining Co. Ltd. Class H^b		2,200,000	$	1,862,158
Yashili International Holdings Ltd.^b		1,161,000		387,991
Yingde Gases Group Co. Ltd.^b		1,367,000		1,462,221
Yuanda China Holdings Ltd.		5,074,000		327,349
YuanShengTai Dairy Farm Ltd.^a,b		3,688,000		647,172
Yuexiu Property Co. Ltd.		6,502,000		1,392,659
Yuexiu Real Estate Investment Trust^b		1,482,000		764,888
Yuexiu Transport Infrastructure Ltd.		1,216,000		740,569
Yuzhou Properties Co. Ltd.^b		2,269,400		509,507
Zhejiang Expressway Co. Ltd. Class H		2,104,000		2,093,100
Zhongsheng Group Holdings Ltd.^b		801,500		888,355
Zhuzhou CSR Times Electric Co. Ltd. Class H		628,000		2,175,674
Zijin Mining Group Co. Ltd. Class H		7,310,000		1,905,279
Zoomlion Heavy Industry Science and Technology Co. Ltd. Class H		1,649,400		1,027,929
ZTE Corp. Class H		719,200		1,620,257

				1,073,490,829
COLOMBIA — 0.61%
Almacenes Exito SA		228,201		3,884,930
Bolsa de Valores de Colombia		70,105,382		913,568
Cementos Argos SA		474,048		2,792,224
Cemex Latam Holdings SA^a		204,420		2,024,541
Corporacion Financiera Colombiana SA NVS		88,561		1,888,058
Ecopetrol SA		5,611,123		9,725,030
Grupo Argos SA		309,102		3,831,450
Grupo de Inversiones Suramericana SA		266,912		6,135,588
Interconexion Electrica SA ESP		429,396		2,171,097
Isagen SA ESP		962,192		1,439,439

				34,805,925
CZECH REPUBLIC — 0.20%
CEZ AS		188,795		5,488,409
Komercni Banka AS		18,705		4,350,145


16		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
O2 Czech Republic AS		34,709	$	487,622
Pegas Nonwovens SA		18,891		564,866
Philip Morris CR AS		750		370,598

				11,261,640
EGYPT — 0.32%
Citadel Capital SAE^a		1,364,817		870,423
Commercial International Bank (Egypt) SAE		1,012,705		6,545,003
EFG-Hermes Holding Co. SAE^a		443,422		1,123,741
Egyptian Kuwaiti Holding Co. SAE^a		713,388		691,986
ezzsteel^a		345,127		827,334
Global Telecom Holding SAE^a		2,547,167		1,927,283
Global Telecom Holding SAE GDR^a		199,452		715,634
Orascom Telecom Media And Technology Holding SAE SP GDR^a		50,000		35,500
Palm Hills Developments SAE^a		1,806,060		1,101,310
Pioneers Holding For Financial Investments SAE^a		348,529		754,085
Six of October Development & Investment Co.^a		114,554		726,892
South Valley Cement Co.		408,965		483,319
Talaat Moustafa Group Holding Co. SAE		1,332,071		1,944,996
Telecom Egypt Co.		348,002		701,353

				18,448,859
GREECE — 0.70%
Alpha Bank AE^a		4,418,880		3,876,486
Athens Water Supply & Sewage Co. SA		37,905		471,325
Ellaktor SA^a		155,720		713,798
Eurobank Ergasias SA^a		9,365,305		3,984,522
Folli Follie Group^a		39,173		1,625,359
Frigoglass SA^a		63,414		267,292
Hellenic Exchanges – Athens Stock Exchange SA Holding		83,990		785,485
Hellenic Telecommunications Organization SA^a		284,104		4,071,534
Intralot SA^a		180,110		419,916
Jumbo SA^a		119,722		1,766,216


Security	Shares		Value
Marfin Investment Group Holdings SA^a		851,158	$	447,337
Metka SA		39,203		590,225
Motor Oil (Hellas) Corinth Refineries SA		67,432		727,448
Mytilineos Holdings SA^a		98,052		798,172
National Bank of Greece SA^a		1,831,220		6,295,538
OPAP SA		258,514		4,116,823
Piraeus Bank SA^a		2,473,175		4,886,500
Piraeus Port Authority SA		13,844		307,265
Public Power Corp. SA^a		130,680		1,902,056
Titan Cement Co. SA		53,700		1,435,893

				39,489,190
HUNGARY — 0.18%
Magyar Telekom Telecommunications PLC^a		553,937		853,495
MOL Hungarian Oil and Gas PLC		45,782		2,255,751
OTP Bank PLC		261,850		4,526,549
Richter Gedeon Nyrt		163,311		2,628,098

				10,263,893
INDIA — 6.58%
ACC Ltd.		28,578		702,935
Adani Enterprises Ltd.		162,129		1,279,558
Adani Ports & Special Economic Zone Ltd.		597,120		2,783,378
Aditya Birla Nuvo Ltd.		50,453		1,208,777
Amara Raja Batteries Ltd.		67,724		616,246
Ambuja Cements Ltd.		848,486		2,884,685
Apollo Hospitals Enterprise Ltd.		92,444		1,787,332
Apollo Tyres Ltd.		195,819		533,436
Arvind Ltd.		183,648		867,697
Ashok Leyland Ltd.^a		1,524,335		915,656
Asian Paints Ltd.		337,712		3,473,959
Aurobindo Pharma Ltd.		159,062		2,143,064
Bajaj Auto Ltd.		93,725		3,488,739
Bajaj Finance Ltd.		20,300		826,787
Balrampur Chini Mills Ltd.		485,675		575,879
Bayer CropScience Ltd.		13,806		544,345
Berger Paints India Ltd.		120,790		686,461
Bharat Forge Ltd.		116,608		1,521,400
Bharat Heavy Electricals Ltd.		695,353		2,760,556
Bharat Petroleum Corp. Ltd.		210,401		2,407,406
Bharti Airtel Ltd.		695,255		4,237,068


CONSOLIDATED SCHEDULE OF INVESTMENTS			17

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Biocon Ltd.		78,661	$	601,560
Britannia Industries Ltd.		36,558		748,812
Cairn India Ltd.		495,405		2,663,577
Century Textiles & Industries Ltd.		53,570		523,914
CESC Ltd.		78,961		905,033
Cipla Ltd.		401,540		3,402,635
Coal India Ltd.		586,283		3,440,596
Dabur India Ltd.		605,347		2,320,430
DCB Bank Ltd.^a		724,051		1,020,210
Dewan Housing Finance Corp. Ltd.		109,315		642,505
Divi’s Laboratories Ltd.		49,070		1,265,364
DLF Ltd.		512,967		1,498,831
Dr. Reddy’s Laboratories Ltd.		135,668		6,590,898
GAIL (India) Ltd.		373,442		2,728,810
Gateway Distriparks Ltd.		195,419		849,564
GlaxoSmithKline Consumer Healthcare Ltd.		11,963		1,051,317
GMR Infrastructure Ltd.		1,803,336		753,371
Godrej Consumer Products Ltd.		139,557		2,267,571
Godrej Industries Ltd.		111,823		594,497
Gruh Finance Ltd.		220,242		754,768
Gujarat Pipavav Port Ltd.^a		333,365		788,363
Havells India Ltd.		320,752		1,502,270
HCL Technologies Ltd.		284,664		7,650,228
HDFC Bank Ltd.		446,333		6,204,749
Hero Motocorp Ltd.		55,637		2,388,320
Hexaware Technologies Ltd.		218,682		576,257
Hindalco Industries Ltd.		1,316,792		3,691,271
Hindustan Unilever Ltd.		868,216		10,623,055
Housing Development & Infrastructure Ltd.^a		370,431		551,862
Housing Development Finance Corp. Ltd.		1,712,747		30,328,719
ICICI Bank Ltd.		254,732		6,535,379
Idea Cellular Ltd.		1,257,922		3,356,255
IFCI Ltd.		849,256		470,254
Indiabulls Housing Finance Ltd.		214,530		1,334,625
Indiabulls Real Estate Ltd.		303,813		344,468
Indian Hotels Co. Ltd.^a		469,894		747,664
Infosys Ltd.		528,850		31,364,953
IRB Infrastructure Developers Ltd.		160,257		664,084


Security	Shares		Value
ITC Ltd.		2,548,532	$	14,922,436
Jain Irrigation Systems Ltd.		441,638		648,119
Jaiprakash Associates Ltd.		1,374,028		1,052,938
Jammu & Kashmir Bank Ltd. (The)		31,090		762,596
Jindal Steel & Power Ltd.		440,920		1,693,051
JSW Steel Ltd.		103,386		2,118,834
Just Dial Ltd.^a		27,610		749,583
Kailash Auto Finance Ltd.^a		485,675		264,128
Karur Vysya Bank Ltd. (The)		87,409		677,103
Kaveri Seed Co. Ltd.		31,471		469,161
KPIT Technologies Ltd.		134,234		327,732
Larsen & Toubro Ltd.		367,765		9,251,702
LIC Housing Finance Ltd.		350,023		1,745,789
Mahindra & Mahindra Financial Services Ltd.		336,865		1,550,534
Mahindra & Mahindra Ltd.		390,384		9,053,203
MAX India Ltd.		180,419		967,805
MindTree Ltd.		63,060		1,170,840
Mphasis Ltd.		93,778		688,653
MRF Ltd.		1,563		618,991
Nestle India Ltd.		26,432		2,626,016
NIIT Technologies Ltd.		74,296		440,291
NTPC Ltd.		1,892,870		4,286,097
Oil & Natural Gas Corp. Ltd.		881,754		6,321,078
Oil India Ltd.		134,127		1,360,279
Page Industries Ltd.		6,692		785,455
Piramal Enterprises Ltd.		84,455		959,165
Power Finance Corp. Ltd.		324,833		1,338,839
Power Grid Corp. of India Ltd.		916,214		1,950,805
Prestige Estates Projects Ltd.		161,760		594,204
PTC India Ltd.		400,652		575,756
Rallis India Ltd.		113,020		434,255
Ramco Cements Ltd. (The)		91,424		503,374
Ranbaxy Laboratories Ltd.^a		152,215		1,607,188
Raymond Ltd.		84,667		634,375
Redington India Ltd.		312,592		540,906
Reliance Capital Ltd.		123,906		1,079,787
Reliance Communications Ltd.		1,000,229		1,912,106
Reliance Industries Ltd.		1,483,465		24,415,565
Reliance Infrastructure Ltd.		129,160		1,488,490
Reliance Power Ltd.^a		717,852		881,936
Rural Electrification Corp. Ltd.		366,497		1,620,789
Sesa Sterlite Ltd.		1,371,773		6,265,440
Shree Renuka Sugars Ltd.		1,102,864		352,597


18		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Shriram Transport Finance Co. Ltd.		176,353	$	2,627,712
Siemens Ltd.		92,075		1,205,260
SKS Microfinance Ltd.^a		126,124		616,278
Sobha Developers Ltd.		67,088		502,718
State Bank of India		174,378		7,071,390
Sun Pharma Advanced Research Co. Ltd.^a		122,222		395,086
Sun Pharmaceuticals Industries Ltd.		839,259		11,828,877
Sundaram Finance Ltd.		47,268		727,949
Supreme Industries Ltd.		59,597		579,519
Suzlon Energy Ltd.^a		1,469,197		521,773
Tata Consultancy Services Ltd.		540,846		22,481,920
Tata Global Beverages Ltd.		368,205		913,231
Tata Motors Ltd.		865,862		7,492,103
Tata Power Co. Ltd.		1,351,174		1,928,340
Tata Steel Ltd.		359,570		3,040,760
Tech Mahindra Ltd.		66,010		2,570,561
Thermax Ltd.		53,969		763,909
Torrent Pharmaceuticals Ltd.		56,718		778,377
TTK Prestige Ltd.		5,047		389,296
TV18 Broadcast Ltd.^a		819,744		392,445
Ultratech Cement Ltd.		42,797		1,798,525
Unitech Ltd.^a		1,709,387		611,300
United Breweries Ltd.		79,549		927,176
United Spirits Ltd.		70,009		2,766,728
Vijaya Bank		692,494		515,262
Wipro Ltd.		710,942		6,622,610
Yes Bank Ltd.		129,273		1,218,698

				372,988,197
INDONESIA — 2.65%
PT ACE Hardware Indonesia Tbk		10,194,400		814,855
PT Adaro Energy Tbk		17,167,700		1,929,944
PT Alam Sutera Realty Tbk		15,971,800		696,355
PT Aneka Tambang (Persero) Tbk		5,062,500		517,178
PT Arwana Citramulia Tbk		7,412,800		643,214
PT Astra Agro Lestari Tbk		479,600		1,045,505
PT Astra International Tbk		23,246,100		15,053,576
PT Bank Bukopin Tbk		7,849,600		496,577
PT Bank Central Asia Tbk		14,327,000		13,717,666
PT Bank Danamon Indonesia Tbk		4,171,900		1,337,433


Security	Shares		Value
PT Bank Mandiri (Persero) Tbk		10,872,700	$	9,643,451
PT Bank Negara Indonesia (Persero) Tbk		8,946,800		4,091,932
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk		5,754,700		428,005
PT Bank Rakyat Indonesia (Persero) Tbk		12,951,100		12,234,209
PT Bank Tabungan Negara (Persero) Tbk		6,450,176		614,828
PT Benakat Integra Tbk^a		40,964,600		462,263
PT Bukit Asam (Persero) Tbk		1,008,500		1,150,970
PT Bumi Serpong Damai Tbk		9,363,800		1,284,796
PT Charoen Pokphand Indonesia Tbk		8,761,300		2,879,863
PT Ciputra Development Tbk		13,314,100		1,382,914
PT Ciputra Property Tbk		6,260,700		404,089
PT Energi Mega Persada Tbk^a		66,627,500		512,629
PT Gajah Tunggal Tbk		2,530,100		382,841
PT Global Mediacom Tbk		7,688,800		1,271,881
PT Gudang Garam Tbk		570,500		2,633,640
PT Hanson International Tbk^a		9,504,500		540,328
PT Indo Tambangraya Megah Tbk		492,300		1,185,771
PT Indocement Tunggal Prakarsa Tbk		1,729,200		3,584,792
PT Indofood CBP Sukses Makmur Tbk		1,419,300		1,274,003
PT Indofood Sukses Makmur Tbk		5,108,100		3,002,196
PT Japfa Comfeed Indonesia Tbk		6,772,600		746,882
PT Jasa Marga (Persero) Tbk		2,602,100		1,379,185
PT Kalbe Farma Tbk		25,535,600		3,623,774
PT Kawasan Industri Jababeka Tbk		27,696,423		670,065
PT Krakatau Steel (Persero) Tbk^a		3,841,400		165,839
PT Lippo Cikarang Tbk^a		656,700		478,595
PT Lippo Karawaci Tbk		21,042,500		1,924,811
PT Matahari Department Store Tbk		2,423,000		3,371,175
PT Medco Energi Internasional Tbk		2,100,500		655,424


CONSOLIDATED SCHEDULE OF INVESTMENTS			19

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
PT Media Nusantara Citra Tbk		6,174,200	$	1,480,541
PT Mitra Adiperkasa Tbk		1,102,300		567,759
PT MNC Investama Tbk		37,956,500		1,223,304
PT MNC Sky Vision Tbk		1,676,400		233,600
PT Modernland Realty Tbk		15,965,300		730,193
PT Multipolar Tbk		9,384,053		633,760
PT Pakuwon Jati Tbk		28,290,900		1,052,066
PT Panin Financial Tbk^a		23,170,500		520,952
PT Pembangunan Perumahan (Persero) Tbk		3,100,700		653,407
PT Perusahaan Gas Negara (Persero) Tbk		12,728,300		6,311,104
PT Perusahaan Perkebunan London Sumatra Indonesia Tbk		3,930,800		628,390
PT Ramayana Lestari Sentosa Tbk		5,348,500		454,948
PT Salim Ivomas Pratama Tbk		5,669,700		402,295
PT Semen Gresik (Persero) Tbk		3,451,500		4,787,398
PT Sigmagold Inti Perkasa Tbk^a		13,929,900		526,353
PT Sugih Energy Tbk^a		24,668,400		881,504
PT Summarecon Agung Tbk		12,629,200		1,446,730
PT Surya Citra Media Tbk		5,474,300		1,923,434
PT Telekomunikasi Indonesia (Persero) Tbk		58,369,800		13,298,185
PT Timah (Persero) Tbk		4,328,452		529,146
PT Tower Bersama Infrastructure Tbk		2,393,500		1,611,354
PT Trada Maritime Tbk^a		5,988,800		944,590
PT Unilever Indonesia Tbk		1,758,300		4,663,497
PT United Tractors Tbk		1,994,900		3,777,477
PT Wijaya Karya (Persero) Tbk		3,141,600		770,797
PT XL Axiata Tbk		3,691,400		1,877,652

				150,163,890
MALAYSIA — 3.89%
AEON Credit Service (M) Bhd		115,200		607,432
AirAsia Bhd		1,618,100		1,237,189
Alliance Financial Group Bhd		1,401,600		2,161,097
AMMB Holdings Bhd		2,340,100		4,959,349
Astro Malaysia Holdings Bhd		2,146,800		2,233,980
Axiata Group Bhd		2,836,700		6,236,780


Security	Shares		Value
Berjaya Corp. Bhd		4,299,000	$	695,587
Berjaya Sports Toto Bhd		777,945		928,006
British American Tobacco (Malaysia) Bhd		159,900		3,652,538
Bumi Armada Bhd^a		1,353,100		1,266,385
Bursa Malaysia Bhd		461,900		1,181,128
Cahya Mata Sarawak Bhd		542,500		721,153
CapitaMalls Malaysia Trust Bhd		1,726,300		772,234
Carlsberg Brewery Malaysia Bhd		222,600		882,773
CIMB Group Holdings Bhd		5,799,200		13,578,076
Dialog Group Bhd		4,559,096		2,502,296
DiGi.Com Bhd		3,657,500		6,648,945
DRB-Hicom Bhd^b		1,131,400		793,272
Eastern & Oriental Bhd		937,000		844,251
Felda Global Ventures Holdings Bhd		1,634,800		1,981,261
Gamuda Bhd		1,995,100		3,057,212
Genting Bhd		2,364,600		7,186,824
Genting Malaysia Bhd		3,475,700		4,973,162
Genting Plantations Bhd		328,500		1,048,449
Hartalega Holdings Bhd		460,900		1,008,950
Hong Leong Bank Bhd		671,800		3,069,137
Hong Leong Financial Group Bhd		311,600		1,684,538
IGB Corp. Bhd		1,025,100		933,387
IHH Healthcare Bhd		3,033,300		4,696,226
IJM Corp. Bhd		1,310,400		2,702,284
IJM Land Bhd		805,300		843,112
IOI Corp. Bhd		3,442,900		5,221,149
IOI Properties Group Bhd^a		1,830,149		1,428,352
KPJ Healthcare Bhd^b		803,850		976,759
Kuala Lumpur Kepong Bhd		587,300		4,106,628
Lafarge Malaysia Bhd		550,200		1,780,470
Magnum Bhd		859,100		836,750
Mah Sing Group Bhd^b		1,126,860		875,891
Malayan Banking Bhd		5,144,800		16,485,558
Malaysia Airports Holdings Bhd		871,400		2,128,737
Malaysia Building Society Bhd^b		1,281,100		1,012,037
Malaysian Airline System Bhd^a		6,107,500		484,415
Malaysian Resources Corp. Bhd		1,964,800		1,059,695


20		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Maxis Bhd		2,125,100	$	4,416,055
Media Chinese International Ltd.		1,225,700		353,866
Media Prima Bhd		1,413,200		1,022,239
MISC Bhd		1,346,100		2,938,188
MMC Corp. Bhd		1,258,200		985,963
OSK Holdings Bhd		996,000		717,297
Parkson Holdings Bhd^a		647,189		615,979
Pavilion Real Estate Investment Trust Bhd		1,189,400		524,513
Petronas Chemicals Group Bhd		3,202,800		6,401,536
Petronas Dagangan Bhd		310,000		1,976,840
Petronas Gas Bhd		824,300		5,962,576
POS Malaysia Bhd		556,100		855,674
PPB Group Bhd		586,800		2,751,556
Public Bank Bhd		3,159,360		19,325,019
QL Resources Bhd		841,450		886,299
RHB Capital Bhd		695,300		2,022,811
Sapurakencana Petroleum Bhd		4,298,800		5,755,373
Sarawak Oil Palms Bhd		252,000		487,690
Sime Darby Bhd^b		3,412,000		10,240,330
Sunway Bhd		868,900		826,999
Sunway Real Estate Investment Trust Bhd		2,072,600		960,024
Supermax Corp. Bhd^b		947,700		661,466
Ta Ann Holdings Bhd		482,100		593,448
TA Enterprise Bhd		2,068,500		607,031
TAN Chong Motor Holdings Bhd		109,751		156,688
Telekom Malaysia Bhd		1,306,100		2,635,405
Tenaga Nasional Bhd		3,262,500		12,814,007
TIME dotCom Bhd^a		549,000		849,975
Top Glove Corp. Bhd^b		662,000		1,006,022
TSH Resources Bhd		770,600		831,231
UEM Sunrise Bhd		2,030,000		1,236,548
UMW Holdings Bhd		671,200		2,631,990
UOA Development Bhd		779,500		521,810
WCT Holdings Bhd		1,460,480		986,936
YTL Corp. Bhd		5,256,600		2,701,679
YTL Power International Bhd^a		2,026,335		957,880

				220,702,397
MEXICO — 4.89%
Alfa SAB de CV Series A		3,268,500		10,516,293
Alsea SAB de CV^a,b		586,500		2,023,404


Security	Shares		Value
America Movil SAB de CV Series L		39,040,500	$	47,742,541
Arca Continental SAB de CV		464,000		3,410,935
Axtel SAB de CV CPO^a,b		1,423,800		445,363
Banregio Grupo Financiero SAB de CV		241,500		1,363,430
Bolsa Mexicana de Valores SAB de CV		536,200		1,147,404
Cemex SAB de CV CPO^a		13,806,091		18,340,545
Coca-Cola FEMSA SAB de CV Series L		481,200		5,246,075
Compartamos SAB de CV		1,265,300		2,701,784
Concentradora Fibra Hotelera Mexicana SAB de CV		595,300		1,038,491
Consorcio ARA SAB de CV^a		1,113,200		508,264
Controladora Comercial Mexicana SAB de CV BC Units		477,000		1,837,155
Controladora Vuela Cia de Aviacion SAB de CV^a,b		568,500		503,913
Corporacion Inmobiliaria Vesta SAB de CV		483,400		1,051,054
El Puerto de Liverpool SAB de CV Series C1		205,800		2,346,738
Empresas ICA SAB de CV^a,b		710,600		1,317,345
Fibra Uno Administracion SAB de CV		2,632,100		9,451,042
Fomento Economico Mexicano SAB de CV BD Units		2,211,400		21,467,095
Genomma Lab Internacional SAB de CV Series B^a,b		938,100		2,502,461
Gruma SAB de CV Series B^a		210,400		2,400,319
Grupo Aeromexico SAB de CV^a,b		662,100		1,069,953
Grupo Aeroportuario del Centro Norte SAB de CV^b		294,700		1,260,118
Grupo Aeroportuario del Pacifico SAB de CV Series B		372,400		2,585,197
Grupo Aeroportuario del Sureste SAB de CV Series B		237,400		3,043,143
Grupo Bimbo SAB de CV Series A		1,905,700		5,998,900


CONSOLIDATED SCHEDULE OF INVESTMENTS			21

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Grupo Carso SAB de CV Series A1		673,200	$	4,113,700
Grupo Comercial Chedraui SAB de CV		404,100		1,404,020
Grupo Famsa SAB de CV Series A^a,b		457,400		518,425
Grupo Financiero Banorte SAB de CV Series O		2,874,300		20,234,738
Grupo Financiero Inbursa SAB de CV Series O		2,730,700		8,297,251
Grupo Financiero Santander Mexico SAB de CV Series B		2,115,300		6,335,142
Grupo Herdez SAB de CV^b		309,600		867,084
Grupo Lala SAB de CV		687,000		1,783,242
Grupo Mexico SAB de CV Series B		4,387,400		15,938,320
Grupo Simec SAB de CV Series B^a		154,500		691,708
Grupo Televisa SAB de CV CPO		2,962,600		22,043,620
Industrias CH SAB de CV Series B^a,b		193,100		1,066,994
Industrias Penoles SAB de CV		164,360		4,170,750
Kimberly-Clark de Mexico SAB de CV Series A		1,733,800		4,626,384
Macquarie Mexico Real Estate Management SA de CV		688,700		1,380,508
Mexichem SAB de CV		1,105,000		4,765,474
Minera Frisco SAB de CV Series A1^a		773,700		1,555,625
OHL Mexico SAB de CV^a		816,900		2,399,064
Promotora y Operadora Infraestructura SAB de CV^a		312,600		4,382,209
Qualitas Controladora SAB de CV		271,800		743,550
TF Administradora Industrial S de RL SAB de CV		530,300		1,214,270
TV Azteca SAB de CV CPO		1,321,000		709,221
Urbi Desarrollos Urbanos SAB de CV^a,b,c		558,900		—
Wal-Mart de Mexico SAB de CV Series V		6,028,100		16,412,402

				276,972,663


Security	Shares		Value
PERU — 0.40%
Compania de Minas Buenaventura SA SP ADR		235,720	$	3,432,083
Credicorp Ltd.		81,043		12,567,338
Southern Copper Corp.		203,428		6,674,473

				22,673,894
PHILIPPINES — 1.13%
Aboitiz Equity Ventures Inc.		2,210,540		2,775,850
Aboitiz Power Corp.		1,550,400		1,333,486
Alliance Global Group Inc.		2,526,500		1,425,502
Atlas Consolidated Mining & Development Corp.		1,297,000		500,951
Ayala Corp.		238,870		3,837,808
Ayala Land Inc.		8,144,300		6,164,264
Bank of the Philippine Islands		906,495		1,975,161
BDO Unibank Inc.		1,849,140		3,838,238
Belle Corp.		6,152,600		670,295
Cebu Air Inc.		330,290		472,709
Cosco Capital Inc.		2,738,200		518,123
DMCI Holdings Inc.		1,001,000		1,836,697
East West Banking Corp.^a		629,600		420,215
Energy Development Corp.		11,052,000		1,842,845
Filinvest Land Inc.		13,084,000		465,142
First Gen Corp.		1,510,500		834,932
First Philippine Holdings Corp.		290,210		525,839
Globe Telecom Inc.		37,810		1,560,963
International Container Terminal Services Inc.		584,130		1,512,575
JG Summit Holdings Inc.		2,880,013		3,398,548
Jollibee Foods Corp.		491,470		2,029,005
Lopez Holdings Corp.		3,303,200		424,264
Manila Water Co. Inc.		1,301,200		895,321
Megaworld Corp.		14,545,000		1,457,836
Melco Crown Philippines Resorts Corp.^a		1,965,700		520,279
Metro Pacific Investments Corp.		13,296,000		1,570,514
Metropolitan Bank & Trust Co.		322,280		635,320
Nickel Asia Corp.		885,875		802,570
Philippine Long Distance Telephone Co.		101,390		8,022,833
Philippine National Bank^a		296,276		593,232
Rizal Commercial Banking Corp.		532,980		651,556
SM Investments Corp.		180,955		3,204,066


22		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
SM Prime Holdings Inc.		7,468,096	$	2,771,417
Universal Robina Corp.		1,006,800		3,752,408
Vista Land & Lifescapes Inc.		5,223,200		727,175

				63,967,939
POLAND — 1.52%
Alior Bank SA^a		57,553		1,371,797
Asseco Poland SA		88,787		1,174,626
Bank Handlowy w Warszawie SA		40,224		1,440,458
Bank Millennium SA		535,726		1,345,452
Bank Pekao SA		149,676		8,430,934
Bank Zachodni WBK SA		35,075		4,064,393
Budimex SA		16,554		631,644
Ciech SA		53,040		599,185
Cyfrowy Polsat SA		229,220		1,834,563
ENEA SA		249,096		1,168,605
Energa SA		240,530		1,568,502
Eurocash SA		101,764		1,098,053
Getin Holding SA^a		435,822		363,940
Getin Noble Bank SA^a		1,553,041		1,262,892
Globe Trade Centre SA^a		335,358		618,829
Grupa Azoty SA		60,493		1,414,250
Grupa Lotos SA^a		80,499		758,828
Jastrzebska Spolka Weglowa SA^a		70,526		738,490
Kernel Holding SA^a		66,036		531,824
KGHM Polska Miedz SA		159,826		6,588,289
LPP SA		618		1,642,923
Lubelski Wegiel Bogdanka SA		42,415		1,545,451
mBank SA		17,452		2,529,908
Netia SA		446,880		768,712
Orange Polska SA		763,025		2,563,025
Polska Grupa Energetyczna SA		962,526		6,565,654
Polski Koncern Naftowy Orlen SA		364,765		4,498,314
Polskie Gornictwo Naftowe i Gazownictwo SA		2,036,499		3,108,235
Powszechna Kasa Oszczednosci Bank Polski SA		996,848		11,925,324
Powszechny Zaklad Ubezpieczen SA		63,513		9,316,339
Rovese SA^a		663,091		253,013
Synthos SA		652,268		938,412


Security	Shares		Value
Tauron Polska Energia SA		1,198,148	$	1,869,911
TVN SA^a		227,091		995,767
Warsaw Stock Exchange SA^b		54,664		643,860

				86,170,402
QATAR — 0.58%
Al Khalij Commercial Bank		117,064		697,652
Barwa Real Estate Co.		112,457		1,207,588
Commercial Bank of Qatar QSC (The)		40,026		748,591
Doha Bank QSC		35,117		588,305
Industries Qatar QSC		81,782		4,346,044
Masraf Al Rayan QSC		430,437		6,147,074
Meera Consumer Goods Co.		9,521		489,490
National Leasing		54,783		425,030
Ooredoo QSC		90,335		2,835,683
Qatar Electricity & Water Co. QSC		29,894		1,403,898
Qatar Industrial Manufacturing Co.^a		39,710		511,479
Qatar Insurance Co. SAQ		51,812		1,422,938
Qatar Islamic Bank SAQ		71,969		2,352,057
Qatar National Bank SAQ		94,582		5,247,052
Qatar National Cement Co.		13,255		520,561
Qatari Investors Group QSC		39,418		638,708
Salam International Investment Co.		111,437		603,214
United Development Co. PSC		95,739		766,448
Vodafone Qatar QSC		399,732		2,123,151

				33,074,963
RUSSIA — 3.82%
Aeroflot – Russian Airlines OJSC		703,656		891,622
Alrosa AO		2,193,500		2,570,691
Gazprom OAO		13,631,830		48,574,655
Inter RAO JSC^a		3,042,100,000		741,503
LSR Group OJSC SP GDR^d		277,882		1,000,375
LUKOIL OAO		587,132		32,684,092
M Video OJSC		128,040		656,912
Magnit OJSC SP GDR^d		301,275		17,534,205
Mechel OAO SP ADR^a		69,398		118,671
MegaFon OAO SP GDR^d		111,689		3,160,799
MMC Norilsk Nickel OJSC		64,404		12,673,567
Mobile TeleSystems OJSC SP ADR		605,338		11,168,486


CONSOLIDATED SCHEDULE OF INVESTMENTS			23

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Moscow Exchange MICEX-RTS OJSC		1,714,400	$	2,877,690
NovaTek OAO SP GDR^d		104,982		10,561,189
Rosneft Oil Co. OJSC		1,347,140		8,310,543
Rostelecom OJSC		986,670		2,624,434
RusHydro OJSC		141,886,000		2,631,404
Sberbank of Russia		11,610,310		22,847,035
Severstal OAO		257,900		2,482,231
Sistema JSFC SP GDR^d		199,973		4,549,386
Surgutneftegas OJSC		8,328,900		5,838,263
Tatneft OAO Class S		1,631,600		10,119,050
TMK OAO SP GDR^d		60,000		587,100
Uralkali OJSC		1,552,880		5,735,212
VTB Bank OJSC		5,653,430,000		5,823,871

				216,762,986
SOUTH AFRICA — 7.41%
Acucap Properties Ltd.		168,597		744,906
Adcock Ingram Holdings Ltd.^a,b		168,371		816,889
Adcorp Holdings Ltd.		241,762		754,696
Advtech Ltd.		675,365		508,648
Aeci Ltd.		140,062		1,619,838
African Oxygen Ltd.		217,375		367,899
African Rainbow Minerals Ltd.		123,092		2,102,381
Anglo American Platinum Ltd.^a		61,892		2,578,591
AngloGold Ashanti Ltd.^a		468,274		7,971,586
ArcelorMittal South Africa Ltd.^a		222,203		822,340
Aspen Pharmacare Holdings Ltd.		367,043		10,548,423
Assore Ltd.		41,784		1,236,540
Astral Foods Ltd.		69,418		933,371
Attacq Ltd.^a		498,993		867,516
Aveng Ltd.^a		502,014		1,078,098
AVI Ltd.		324,711		1,861,484
Barclays Africa Group Ltd.		376,551		5,897,838
Barloworld Ltd.		255,128		2,431,481
Bidvest Group Ltd.		352,062		9,312,492
Blue Label Telecoms Ltd.		723,057		605,074
Brait SE^a		402,703		2,999,239
Capital Property Fund^a		1,618,719		1,818,802
Cashbuild Ltd.^b		49,015		609,219
City Lodge Hotels Ltd.		57,257		667,569
Clicks Group Ltd.		290,529		1,888,982


Security	Shares		Value
Clover Industries Ltd.		430,672	$	743,473
Coronation Fund Managers Ltd.		265,844		2,499,614
DataTec Ltd.		226,490		1,144,653
Discovery Ltd.		373,500		3,446,887
Emira Property Fund		590,673		838,630
EOH Holdings Ltd.		121,718		1,075,793
Exxaro Resources Ltd.		152,816		2,167,937
Famous Brands Ltd.		74,864		695,818
FirstRand Ltd.		3,529,319		14,352,356
Foschini Group Ltd. (The)		229,169		2,480,578
Fountainhead Property Trust		624,771		459,382
Gold Fields Ltd.		905,702		4,292,875
Grindrod Ltd.		543,736		1,265,858
Group Five Ltd.		212,046		812,463
Growthpoint Properties Ltd.		2,299,646		5,448,886
Harmony Gold Mining Co. Ltd.^a		505,820		1,532,860
Hosken Consolidated Investments Ltd.		63,928		1,010,187
Hudaco Industries Ltd.		111,233		977,893
Hyprop Investments Ltd.		253,755		2,060,265
Illovo Sugar Ltd.		296,155		807,538
Impala Platinum Holdings Ltd.		616,702		5,581,132
Imperial Holdings Ltd.		208,946		3,736,722
Investec Ltd.		265,844		2,404,629
JSE Ltd.		120,334		1,146,496
Kumba Iron Ore Ltd.		72,788		2,179,794
Lewis Group Ltd.		124,747		703,765
Liberty Holdings Ltd.		122,012		1,498,047
Life Healthcare Group Holdings Ltd.		1,078,435		4,540,715
Massmart Holdings Ltd.		128,267		1,577,136
Mediclinic International Ltd.		425,397		3,699,035
Metair Investments Ltd.		202,030		664,860
MMI Holdings Ltd.		1,145,675		2,961,300
Mondi Ltd.		131,888		2,248,274
Mpact Ltd.		259,571		860,323
Mr. Price Group Ltd.		273,276		5,259,755
MTN Group Ltd.		1,927,187		43,677,638
Murray & Roberts Holdings Ltd.^a		548,131		1,360,097
Nampak Ltd.		682,020		2,735,031
Naspers Ltd. Class N		455,894		58,105,331
Nedbank Group Ltd.		231,507		4,978,247


24		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Netcare Ltd.		1,115,856	$	3,388,885
Northam Platinum Ltd.^a		423,071		1,698,585
Omnia Holdings Ltd.		75,235		1,600,496
Pick n Pay Holdings Ltd.		363,828		828,888
Pick n Pay Stores Ltd.		283,814		1,507,747
PPC Ltd.		610,381		1,900,231
Rand Merchant Insurance Holdings Ltd.		781,963		2,477,777
Redefine Properties Ltd.		3,346,653		3,008,256
Remgro Ltd.		537,928		12,315,989
Resilient Property Income Fund Ltd.		263,121		1,739,230
Reunert Ltd.		208,987		1,296,909
RMB Holdings Ltd.		796,179		4,190,731
Royal Bafokeng Platinum Ltd.^a		98,281		674,588
SA Corporate Real Estate Fund Nominees Pty Ltd.		1,893,336		754,814
Sanlam Ltd.		2,108,246		13,083,122
Sappi Ltd.^a		634,888		2,626,612
Sasol Ltd.		627,753		36,493,891
Shoprite Holdings Ltd.		517,557		7,175,450
Sibanye Gold Ltd.		917,446		2,162,624
SPAR Group Ltd. (The)		183,633		2,250,995
Standard Bank Group Ltd.		1,375,883		17,852,817
Steinhoff International Holdings Ltd.		2,408,215		11,890,044
Sun International Ltd.		118,726		1,306,104
Super Group Ltd.^a		354,180		1,040,687
Telkom SA SOC Ltd.^a		312,903		1,681,404
Tiger Brands Ltd.		185,567		5,356,552
Tongaat Hulett Ltd.		126,361		2,027,165
Trencor Ltd.		208,258		1,429,456
Truworths International Ltd.		437,693		3,061,884
Vodacom Group Ltd.		416,783		5,029,815
Vukile Property Fund Ltd.		634,345		996,663
Wilson Bayly Holmes-Ovcon Ltd.		71,056		924,528
Woolworths Holdings Ltd.		866,321		6,472,523
Zeder Investments Ltd.		1,392,818		759,571

				420,081,208
SOUTH KOREA — 14.63%
Ahnlab Inc.		12,052		446,921
AmorePacific Corp.		3,758		7,820,287
AmorePacific Group		3,329		3,473,625


Security	Shares		Value
Asia Cement Co. Ltd.		4,106	$	469,743
Asiana Airlines Inc.^a		125,625		597,801
ATLASBX Co. Ltd.		12,564		574,949
Binggrae Co. Ltd.		7,677		688,238
Bioland Ltd.		21,312		437,191
BS Financial Group Inc.		221,028		3,662,183
Bukwang Pharmaceutical Co. Ltd.		37,654		640,595
Capro Corp.^a		82,391		314,060
Celltrion Inc.^a,b		72,453		2,976,150
Chabiotech Co. Ltd.^a		49,904		629,983
Chadiostech Co. Ltd.^a		188,599		536,622
Cheil Worldwide Inc.^a		92,750		2,099,327
Chong Kun Dang Pharmaceutical Corp.		10,163		703,627
CJ CGV Co. Ltd.		17,040		867,167
CJ CheilJedang Corp.		9,068		3,380,545
CJ Corp.		17,253		3,045,798
CJ E&M Corp.^a		23,690		1,106,289
CJ Freshway Corp.^a,b		13,627		471,055
CJ Hellovision Co. Ltd.		44,278		633,198
CJ O Shopping Co. Ltd.		3,648		1,294,852
Com2uS Corp.^a		8,628		1,069,618
Cosmax Inc.^a,b		8,735		913,171
Coway Co. Ltd.		62,181		5,218,801
Daeduck Electronics Co.		63,663		529,923
Daeduck GDS Co. Ltd.		32,771		433,090
Daekyo Co. Ltd.		50,143		338,754
Daelim Industrial Co. Ltd.		32,065		2,763,924
Daesang Corp.		26,028		1,419,546
Daewoo Engineering & Construction Co. Ltd.^a		129,120		1,084,967
Daewoo International Corp.		54,086		1,986,985
Daewoo Securities Co. Ltd.^a		205,129		2,387,220
Daewoo Shipbuilding & Marine Engineering Co. Ltd.^b		123,597		3,029,129
Daewoong Pharmaceutical Co. Ltd.		7,620		495,249
Daishin Securities Co. Ltd.		59,513		710,200
Daou Technology Inc.		50,218		614,136
Daum Communications Corp.^b		13,731		2,235,799
DGB Financial Group Inc.		106,040		1,851,085
Dong-A Socio Holdings Co. Ltd.		3,733		445,479


CONSOLIDATED SCHEDULE OF INVESTMENTS			25

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Dong-A ST Co. Ltd.		5,628	$	557,832
Dongbu Insurance Co. Ltd.		49,750		3,002,811
Dongkuk Steel Mill Co. Ltd.		77,272		559,373
Dongsuh Companies Inc.		36,011		715,639
Dongwon Industries Co. Ltd.		1,609		618,877
Dongyang Mechatronics Corp.		51,991		464,558
Doosan Corp.		8,566		1,018,002
Doosan Engine Co. Ltd.^a		51,600		396,434
Doosan Heavy Industries & Construction Co. Ltd.		67,966		1,933,842
Doosan Infracore Co. Ltd.^a		161,745		1,890,308
Duksan Hi-Metal Co. Ltd.^a		24,984		394,244
DuzonBIzon Co. Ltd.		49,211		405,258
E-Mart Co. Ltd.		23,985		5,771,823
E1 Corp.		5,365		367,738
EO Technics Co. Ltd.		11,392		917,921
Fila Korea Ltd.		11,444		1,139,942
Foosung Co. Ltd.^a		175,316		543,783
GemVax & Kael Co. Ltd.^a,b		30,485		736,607
Global & Yuasa Battery Co. Ltd.		9,066		419,346
Golfzon Co. Ltd.		23,292		550,169
Grand Korea Leisure Co. Ltd.		37,600		1,676,138
Green Cross Corp.		6,465		758,750
Green Cross Holdings Corp.		34,326		561,972
GS Engineering & Construction Corp.^a		57,136		2,076,495
GS Global Corp.^b		67,396		642,088
GS Holdings Corp.		56,319		2,391,176
GS Home Shopping Inc.		3,939		1,099,400
Gwangju Shinsegae Co. Ltd.		1,368		380,468
Halla Corp.^a		74,830		529,149
Halla Visteon Climate Control Corp.^b		43,741		2,325,203
Hana Financial Group Inc.		332,950		13,972,112
Hana Tour Service Inc.		12,679		889,074
Hancom Inc.		23,883		592,394
Handsome Co. Ltd.		18,729		572,611
Hanil Cement Co. Ltd.		4,170		581,937
Hanil E-Hwa Co. Ltd.^a		21,614		498,809
Hanil E-Hwa Co. Ltd. New		28,692		557,456
Hanjin Heavy Industries & Construction Co. Ltd.^a		80,791		494,810
Hanjin Kal Corp.^a		26,812		687,521
Hanjin Shipping Co. Ltd.^a,b		110,630		677,560


Security	Shares		Value
Hanjin Transportation Co. Ltd.		13,237	$	490,864
Hankook Shell Oil Co. Ltd.		1,101		606,991
Hankook Tire Co. Ltd.		83,351		4,323,944
Hankook Tire Worldwide Co. Ltd.		26,465		570,305
Hanmi Pharm Co. Ltd.^a		8,298		760,278
Hansae Co. Ltd.		24,799		756,969
Hansol Chemical Co. Ltd.		21,337		672,338
Hansol Paper Co.		51,727		594,329
Hanssem Co. Ltd.		11,620		1,358,026
Hanwha Chemical Corp.		121,151		1,959,541
Hanwha Corp.		53,899		1,608,013
Hanwha General Insurance Co. Ltd.^a		89,120		535,274
Hanwha Investment & Securities Co. Ltd.^a		143,303		642,351
Hanwha Life Insurance Co. Ltd.		216,910		1,488,923
Hite Jinro Co. Ltd.		33,946		773,364
HMC Investment Securities Co. Ltd.^a		50,317		637,678
Hotel Shilla Co. Ltd.		39,274		4,609,306
Huchems Fine Chemical Corp.		33,363		774,889
Hwa Shin Co. Ltd.		34,868		388,588
Hy-Lok Corp.		17,884		606,746
Hyosung Corp.		26,290		2,032,779
Hyundai Corp.^b		16,438		609,565
Hyundai Department Store Co. Ltd.		17,487		2,733,556
Hyundai Development Co. Engineering & Construction		65,118		2,645,951
Hyundai Engineering & Construction Co. Ltd.		83,366		5,253,797
Hyundai Glovis Co. Ltd.		15,411		4,597,690
Hyundai Greenfood Co. Ltd.		49,954		982,871
Hyundai Heavy Industries Co. Ltd.		48,199		6,845,166
Hyundai Home Shopping Network Corp.		7,038		1,131,411
Hyundai Hysco Co. Ltd.^b		11,819		963,984
Hyundai Marine & Fire Insurance Co. Ltd.		58,740		1,804,577
Hyundai Merchant Marine Co. Ltd.^a,b		83,430		1,012,071


26		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Hyundai Mipo Dockyard Co. Ltd.		13,369	$	1,700,874
Hyundai Mobis Co. Ltd.		77,967		22,606,931
Hyundai Motor Co.		176,672		40,598,231
Hyundai Securities Co. Ltd.^a		158,497		1,222,394
Hyundai Steel Co.		80,121		5,981,715
Hyundai Wia Corp.		17,759		3,905,772
Iljin Display Co. Ltd.		40,130		318,206
Ilyang Pharmaceutical Co. Ltd.		27,299		634,047
iMarketKorea Inc.		23,279		751,898
Industrial Bank of Korea		289,599		5,026,818
Interpark Corp.		46,876		531,657
ISU Chemical Co. Ltd.		43,300		535,939
JB Financial Group Co. Ltd.^b		93,362		683,215
JoyCity Corp.^a		17,491		295,844
Jusung Engineering Co. Ltd.^a		130,594		506,173
Kangwon Land Inc.		135,304		4,810,601
KB Capital Co. Ltd.		20,978		466,546
KB Financial Group Inc.		362,760		14,865,307
KCC Corp.		5,559		3,744,560
KEPCO Plant Service & Engineering Co. Ltd.		22,485		1,734,136
Kia Motors Corp.		301,344		18,188,523
KISWIRE Ltd.^b		10,934		562,902
KIWOOM Securities Co. Ltd.		15,596		804,449
Koh Young Technology Inc.		24,353		665,297
Kolao Holdings^b		33,395		627,422
Kolon Industries Inc.		19,913		1,180,306
Komipharm International Co. Ltd.^a,b		56,770		524,617
Korea Aerospace Industries Ltd.		53,709		1,904,274
Korea District Heating Corp.		5,384		345,676
Korea Electric Power Corp.		295,331		12,291,502
Korea Gas Corp.^a		32,018		1,780,971
Korea Investment Holdings Co. Ltd.		44,950		2,256,477
Korea Kolmar Co. Ltd.		16,640		884,556
Korea Zinc Co. Ltd.		9,906		4,108,164
Korean Air Lines Co. Ltd.^a		34,453		1,238,534
Korean Reinsurance Co.		113,813		1,324,516
KT Corp.		72,376		2,498,309
KT Skylife Co. Ltd.		29,925		665,525
KT&G Corp.		126,313		11,822,184


Security	Shares		Value
Kukdo Chemical Co. Ltd.^b		10,559	$	521,728
Kumho Petro Chemical Co. Ltd.		15,666		1,256,123
Kumho Tire Co. Inc.^a		84,287		860,368
Kwang Dong Pharmaceutical Co. Ltd.^b		59,691		594,585
Kwangju Bank^a		47,853		535,659
Kyongnam Bank^a		52,071		698,423
LF Corp.		24,599		739,947
LG Chem Ltd.		53,147		14,126,058
LG Corp.		108,856		7,611,707
LG Display Co. Ltd.^a		268,080		9,266,930
LG Electronics Inc.		121,652		9,070,360
LG Hausys Ltd.		7,756		1,583,404
LG Household & Health Care Ltd.		10,826		5,477,329
LG Innotek Co. Ltd.^a		15,187		2,014,549
LG International Corp.		36,658		1,008,687
LG Life Sciences Ltd.^a,b		22,541		750,292
LG Uplus Corp.		250,566		2,705,950
LIG Insurance Co. Ltd.		48,101		1,435,037
Lock & Lock Co. Ltd.^b		32,611		387,556
Lotte Chemical Corp.		17,929		2,891,061
Lotte Chilsung Beverage Co. Ltd.		843		1,714,351
Lotte Confectionery Co. Ltd.		822		1,759,199
Lotte Food Co. Ltd.		918		703,473
Lotte Shopping Co. Ltd.		12,424		4,068,019
LS Corp.		20,836		1,438,454
LS Industrial Systems Co. Ltd.		17,947		1,108,025
Lumens Co. Ltd.^a,b		61,195		498,516
Maeil Dairy Industry Co. Ltd.^b		12,662		445,814
Mando Corp.		13,774		1,861,076
Medipost Co. Ltd.^a		11,614		650,599
Medy-Tox Inc.		5,350		1,065,832
MegaStudy Co. Ltd.		8,457		546,312
Meritz Fire & Marine Insurance Co. Ltd.		73,776		996,825
Meritz Securities Co. Ltd.		257,721		868,009
Mirae Asset Securities Co. Ltd.		28,364		1,355,329
Modetour Network Inc.		24,753		633,503
Muhak Co. Ltd.^a		19,992		657,560
Namhae Chemical Corp.		49,345		454,541
Namyang Dairy Products Co. Ltd.		786		641,854


CONSOLIDATED SCHEDULE OF INVESTMENTS			27

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Naturalendo Tech Co. Ltd.^a,b		15,489	$	733,243
NAVER Corp.		32,270		24,442,389
NCsoft Corp.		17,680		2,528,330
Neowiz Games Corp.^a		35,061		698,488
Nexen Corp.		3,883		337,386
Nexen Tire Corp.		41,320		584,784
NH Investment & Securities Co. Ltd.		65,235		519,847
NHN Entertainment Corp.^a		15,255		1,089,267
NICE Holdings Co. Ltd.		37,136		525,570
Nong Shim Holdings Co. Ltd.		5,486		630,326
NongShim Co. Ltd.		3,691		917,335
OCI Co. Ltd.^a,b		19,239		2,760,762
OCI Materials Co. Ltd.		11,763		526,693
ORION Corp.		4,128		3,554,163
Osstem Implant Co. Ltd.^a		17,928		661,282
Ottogi Corp.		1,985		1,211,810
Paradise Co. Ltd.		55,116		2,136,258
Partron Co. Ltd.		60,615		566,724
Poongsan Corp.		27,236		846,130
POSCO		74,666		24,595,339
POSCO Chemtech Co. Ltd.		3,533		552,973
POSCO ICT Co. Ltd.^b		70,126		504,877
Pyeong Hwa Automotive Co. Ltd.^b		19,375		422,296
S&T Dynamics Co. Ltd.		56,539		545,901
S-Oil Corp.		51,385		2,374,266
S.M. Entertainment Co.^a		21,781		893,624
S1 Corp.		21,883		1,597,063
Samchully Co. Ltd.		3,865		627,045
SamkwangGlass Co. Ltd.		8,441		587,736
Samsung C&T Corp.		143,941		10,590,264
Samsung Card Co. Ltd.		39,312		1,890,093
Samsung Electro-Mechanics Co. Ltd.		67,710		3,666,136
Samsung Electronics Co. Ltd.		126,919		154,463,283
Samsung Engineering Co. Ltd.^a,b		33,082		2,084,856
Samsung Fine Chemicals Co. Ltd.		24,279		957,799
Samsung Fire & Marine Insurance Co. Ltd.		38,379		10,503,647
Samsung Heavy Industries Co. Ltd.		186,140		5,002,530
Samsung Life Insurance Co. Ltd.		68,728		7,218,829


Security	Shares		Value
Samsung SDI Co. Ltd.		63,114	$	9,430,219
Samsung Securities Co. Ltd.		70,428		3,441,696
Samsung Techwin Co. Ltd.		42,835		1,801,778
SBS Media Holdings Co. Ltd.		92,153		355,361
SeAH Besteel Corp.		17,575		620,529
SeAH Steel Corp.		4,316		397,994
Sebang Co. Ltd.		21,893		458,826
Seegene Inc.^a,b		12,881		730,467
Seobu T&D^a		20,678		473,129
Seoul Semiconductor Co. Ltd.		38,434		1,106,833
SFA Engineering Corp.		13,980		606,657
Shinhan Financial Group Co. Ltd.		455,463		23,582,827
Shinsegae Co. Ltd.		7,889		1,812,848
Shinsegae Food Co. Ltd.		6,913		770,422
Shinsegae International Co. Ltd.		4,742		551,858
Simm Tech Co. Ltd.^a,b		63,342		454,786
Sindoh Co. Ltd.		6,921		464,153
SK Broadband Co. Ltd.^a		203,452		728,370
SK C&C Co. Ltd.		23,499		4,924,836
SK Chemicals Co. Ltd.		18,060		1,205,841
SK Gas Co. Ltd.		6,904		769,419
SK Holdings Co. Ltd.		29,542		4,676,257
SK Hynix Inc.^a		655,642		29,356,622
SK Innovation Co. Ltd.		69,210		6,423,059
SK Networks Co. Ltd.^a		145,251		1,408,173
SK Securities Co. Ltd.^a		917,809		936,863
SK Telecom Co. Ltd.		11,069		2,980,262
SKC Co. Ltd.		25,502		861,427
SL Corp.		18,936		373,510
Soulbrain Co. Ltd.		19,776		570,490
Ssangyong Motor Co.^a		58,082		432,486
Sung Kwang Bend Co. Ltd.		31,793		550,291
Sungwoo Hitech Co. Ltd.		42,509		714,807
Suprema Inc.^a		23,870		586,186
Taekwang Industrial Co. Ltd.		486		624,066
Taewoong Co. Ltd.^a		19,182		423,765
Taeyoung Engineering & Construction Co. Ltd.^a		88,401		499,569
Taihan Electric Wire Co. Ltd.^a		168,710		358,568
Tera Resource Co. Ltd.^a,c		196,444		—
TK Corp.^a		35,158		527,049
TONGYANG Life Insurance Co.		46,589		523,807


28		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
TONGYANG Securities Inc.^a		209,455	$	622,819
ViroMed Co. Ltd.^a		15,739		936,004
WeMade Entertainment Co. Ltd.^a		12,231		508,444
Wonik IPS Co. Ltd.^a		60,266		772,679
Woori Finance Holdings Co. Ltd.^a		352,143		4,775,350
Woori Investment & Securities Co. Ltd.		141,730		1,656,394
YG Entertainment Inc.		12,931		621,076
Youlchon Chemical Co. Ltd.		34,408		463,207
Youngone Corp.		25,769		1,438,459
Youngone Holdings Co. Ltd.		7,142		574,065
Yuhan Corp.		7,596		1,296,028
Yungjin Pharmaceutical Co. Ltd.^a,b		384,590		608,775

				829,275,909
TAIWAN — 12.84%
A-DATA Technology Co. Ltd.		250,820		581,517
Ability Enterprise Co. Ltd.		844,000		543,551
AcBel Polytech Inc.		494,000		785,858
Accton Technology Corp.		1,111,000		676,476
Acer Inc.^a		2,927,000		2,423,621
Advanced Semiconductor Engineering Inc.		7,125,000		8,879,284
Advantech Co. Ltd.		526,000		4,936,117
Airtac International Group		136,800		1,407,337
ALI Corp.		602,000		573,995
Alpha Networks Inc.		748,000		516,760
Altek Corp.^a		682,000		588,669
Ambassador Hotel Ltd. (The)		594,000		559,412
AmTRAN Technology Co. Ltd.		941,000		607,594
Ardentec Corp.		887,912		822,842
Asia Cement Corp.		2,149,050		2,947,794
Asia Optical Co. Inc.^a		436,000		670,982
Asia Pacific Telecom Co. Ltd.		2,288,000		1,477,339
Asia Polymer Corp.		862,000		620,030
ASUSTeK Computer Inc.		807,000		8,450,544
AU Optronics Corp.		9,912,000		4,924,414
Bank of Kaohsiung Co. Ltd.		2,037,168		637,243
BES Engineering Corp.		2,333,000		621,290
Bizlink Holding Inc.		102,643		503,076
Brogent Technologies Inc.		34,401		448,851
Capital Securities Corp.		1,782,000		623,004
Career Technology (MFG.) Co. Ltd.		450,000		693,280


Security	Shares		Value
Catcher Technology Co. Ltd.		741,000	$	7,511,517
Cathay Financial Holding Co. Ltd.		9,362,078		15,973,837
Cathay Real Estate Development Co. Ltd.		842,000		474,656
Chailease Holding Co. Ltd.		1,157,640		3,129,332
Chang Hwa Commercial Bank Ltd.		4,997,440		3,109,763
Cheng Loong Corp.		1,146,000		475,415
Cheng Shin Rubber Industry Co. Ltd.		1,786,650		4,124,349
Cheng Uei Precision Industry Co. Ltd.		598,000		1,156,367
Chia Hsin Cement Corp.		975,000		500,703
Chicony Electronics Co. Ltd.		548,410		1,798,035
Chin-Poon Industrial Co. Ltd.		526,000		932,671
China Airlines Ltd.^a		2,044,000		683,829
China Bills Finance Corp.		1,342,000		505,094
China Development Financial Holding Corp.		14,872,000		5,025,249
China Life Insurance Co. Ltd.		3,280,044		3,045,156
China Man-Made Fibers Corp.^a		1,786,000		565,846
China Metal Products Co. Ltd.		536,146		576,675
China Motor Co. Ltd.		398,000		380,817
China Petrochemical Development Corp.^a		2,973,900		1,059,602
China Steel Chemical Corp.		159,000		1,000,050
China Steel Corp.		12,667,529		10,933,984
China Synthetic Rubber Corp.		560,000		577,976
Chipbond Technology Corp.		705,000		1,233,552
Chong Hong Construction Co.		189,000		514,699
Chroma ATE Inc.		526,000		1,548,586
Chung Hung Steel Corp.^a		2,334,000		648,106
Chunghwa Telecom Co. Ltd.		4,208,000		13,078,510
Clevo Co.		478,175		903,862
CMC Magnetics Corp.^a		3,657,000		587,263
Compal Electronics Inc.		4,856,000		4,321,427
Compeq Manufacturing Co. Ltd.		1,236,000		754,654
Continental Holdings Corp.		1,629,600		648,776
Coretronic Corp.		615,750		1,022,799
Coxon Precise Industrial Co. Ltd.		311,000		561,851
CSBC Corp. Taiwan		956,000		564,507


CONSOLIDATED SCHEDULE OF INVESTMENTS			29

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
CTBC Financial Holding Co. Ltd.		15,073,935	$	10,968,638
CTCI Corp.		741,000		1,326,291
Cyberlink Corp.		213,540		667,257
CyberTAN Technology Inc.		522,000		491,604
D-Link Corp.		912,000		655,994
Delta Electronics Inc.		2,097,000		14,732,775
Depo Auto Parts Industrial Co. Ltd.		126,000		514,277
Dynapack International Technology Corp.		211,000		624,024
E Ink Holdings Inc.^a		1,052,000		640,551
E.Sun Financial Holding Co. Ltd.		7,162,526		4,708,641
Eclat Textile Co. Ltd.		203,062		1,698,382
Elan Microelectronics Corp.		526,000		902,755
Elite Material Co. Ltd.		614,000		705,605
Elite Semiconductor Memory Technology Inc.		337,000		580,636
Epistar Corp.		1,052,000		2,287,683
Eternal Materials Co. Ltd.		871,030		941,244
EVA Airways Corp.^a		1,549,000		777,337
Evergreen Marine Corp. Ltd.^a		1,560,000		952,477
Everlight Chemical Industrial Corp.		679,192		755,529
Everlight Electronics Co. Ltd.		526,000		1,168,478
Far Eastern Department Stores Ltd.		959,167		965,890
Far Eastern International Bank Ltd.		2,028,587		732,967
Far Eastern New Century Corp.		3,143,291		3,370,384
Far EasTone Telecommunications Co. Ltd.		2,104,000		4,483,859
Faraday Technology Corp.		513,000		612,706
Farglory Land Development Co. Ltd.		531,782		738,327
Federal Corp.		940,354		611,896
Feng Hsin Iron & Steel Co. Ltd.		559,000		804,169
Feng Tay Enterprise Co. Ltd.		547,305		1,567,364
Firich Enterprises Co. Ltd.		194,523		1,125,859
First Financial Holding Co. Ltd.		7,821,272		4,840,787
FLEXium Interconnect Inc.		265,471		752,259


Security	Shares		Value
Forhouse Corp.^a		1,345,000	$	578,219
Formosa Chemicals & Fibre Corp.		3,537,210		8,804,417
Formosa Epitaxy Inc.^a		685,000		413,651
Formosa Petrochemical Corp.		1,578,000		3,985,848
Formosa Plastics Corp.		4,538,800		11,768,187
Formosa Taffeta Co. Ltd.		783,000		831,711
Formosan Rubber Group Inc.		659,000		738,579
Foxconn Technology Co. Ltd.		1,102,720		2,766,899
Fubon Financial Holding Co. Ltd.		7,551,000		12,327,957
G Tech Optoelectronics Corp.^a		385,000		400,579
Gemtek Technology Corp.		622,000		586,822
Getac Technology Corp.		853,000		463,734
Giant Manufacturing Co. Ltd.		526,000		4,372,995
Gigabyte Technology Co. Ltd.		681,000		909,048
Gigasolar Materials Corp.		33,800		590,274
Gigastorage Corp.^a		566,000		539,670
Gintech Energy Corp.^a		551,000		526,289
Global Mixed Mode Technology Inc.		195,000		581,924
Gloria Material Technology Corp.		869,200		726,987
Goldsun Development & Construction Co. Ltd.^a		1,424,000		504,990
Gourmet Master Co. Ltd.		75,000		607,216
Grand Pacific Petrochemical Corp.		1,264,000		640,658
Grape King Bio Ltd.		135,000		598,434
Great Wall Enterprise Co. Ltd.		747,500		760,242
Greatek Electronics Inc.		428,000		587,076
HannStar Display Corp.		3,050,640		1,071,635
HannsTouch Solution Inc.^a		1,832,000		511,162
Hermes Microvision Inc.		46,000		1,977,551
Hey Song Corp.		432,000		480,554
Highwealth Construction Corp.		790,100		1,400,957
Hiwin Technologies Corp.		236,770		2,313,004
Ho Tung Chemical Corp.		1,758,550		661,872
Holy Stone Enterprise Co. Ltd.		498,900		749,422
Hon Hai Precision Industry Co. Ltd.		14,264,568		48,677,203
Hotai Motor Co. Ltd.		282,000		3,967,180
HTC Corp.		780,000		3,588,097
Hua Nan Financial Holdings Co. Ltd.		6,467,116		4,013,483


30		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Huaku Development Co. Ltd.		299,000	$	720,229
Hung Sheng Construction Ltd.		773,000		544,375
Ichia Technologies Inc.		413,000		624,533
IEI Integration Corp.		284,210		557,191
Innolux Corp.		8,964,241		4,558,521
Inotera Memories Inc.^a		2,643,000		4,323,872
Inventec Corp.		2,697,000		2,120,389
ITEQ Corp.		618,000		562,373
Kee Tai Properties Co. Ltd.		910,000		586,056
Kenda Rubber Industrial Co. Ltd.		548,744		1,167,599
Kerry TJ Logistics Co. Ltd.		438,000		594,199
King Slide Works Co. Ltd.		74,000		992,757
King Yuan Electronics Co. Ltd.		1,350,000		1,235,259
King’s Town Bank Co. Ltd.		1,009,000		1,137,596
Kingdom Construction Co.		489,000		462,162
Kinpo Electronics Inc.^a		1,441,000		696,624
Kinsus Interconnect Technology Corp.		526,000		2,226,092
Kuoyang Construction Co. Ltd.		1,425,023		681,749
Largan Precision Co. Ltd.		118,000		9,770,663
Lealea Enterprise Co. Ltd.		1,511,173		476,247
Lien Hwa Industrial Corp.		611,000		428,245
Lite-On Technology Corp.		2,302,547		3,816,972
Long Bon International Co. Ltd.		633,000		427,781
Macronix International Co. Ltd.^a		3,984,000		1,032,970
Makalot Industrial Co. Ltd.		183,727		906,634
Masterlink Securities Corp.		1,230,592		426,110
MediaTek Inc.		1,626,572		27,181,637
Medigen Biotechnology Corp.^a		115,088		535,195
Mega Financial Holding Co. Ltd.		11,090,958		9,573,166
Merida Industry Co. Ltd.		243,850		1,794,784
Merry Electronics Co. Ltd.		196,070		1,128,253
Micro-Star International Co. Ltd.		873,000		1,198,931
Microbio Co. Ltd.^a		703,141		695,131
MIN AIK Technology Co. Ltd.		166,000		910,791
Mitac Holdings Corp.		624,000		539,650
Motech Industries Inc.		526,000		712,701
Nan Kang Rubber Tire Co. Ltd.		509,000		584,940


Security	Shares		Value
Nan Ya Plastics Corp.		5,383,440	$	12,697,430
Nan Ya Printed Circuit Board Corp.^a		284,000		527,325
National Petroleum Co. Ltd.		508,000		579,542
Neo Solar Power Corp.		765,251		739,892
Novatek Microelectronics Corp. Ltd.		661,000		3,394,507
OptoTech Corp.		1,562,000		794,313
Oriental Union Chemical Corp.		653,000		613,884
Pan-International Industrial Corp.		765,366		554,363
Parade Technologies Ltd.		66,000		787,173
PChome Online Inc.		92,502		928,409
Pegatron Corp.		1,885,000		3,998,227
PharmaEngine Inc.^a		64,000		527,793
Phison Electronics Corp.		153,000		1,108,195
Phytohealth Corp.^a		607,000		745,284
Pixart Imaging Inc.		264,000		620,023
Pou Chen Corp.		2,354,000		2,720,955
Powertech Technology Inc.		782,000		1,483,394
President Chain Store Corp.		645,000		4,887,590
President Securities Corp.		748,000		424,168
Prince Housing & Development Corp.		1,410,995		608,951
Qisda Corp.^a		1,983,000		1,008,401
Quanta Computer Inc.		3,156,000		8,911,407
Radiant Opto-Electronics Corp.		526,940		2,274,143
Radium Life Tech Co. Ltd.		841,036		538,828
Realtek Semiconductor Corp.		526,110		1,918,536
Rich Development Co. Ltd.		1,486,770		651,601
Richtek Technology Corp.		177,000		988,910
Ritek Corp.^a		3,632,000		498,192
Ruentex Development Co. Ltd.		752,964		1,352,743
Ruentex Industries Ltd.		592,906		1,438,105
Sampo Corp.		1,751,000		761,546
Sanyang Industry Co. Ltd.		623,000		582,555
ScinoPharm Taiwan Ltd.		304,366		621,145
Sercomm Corp.		320,000		762,249
Shih Wei Navigation Co. Ltd.		708,675		502,632
Shihlin Electric & Engineering Corp.		417,000		573,383
Shihlin Paper Corp.^a		160,000		241,950
Shin Kong Financial Holding Co. Ltd.		8,219,943		2,681,268


CONSOLIDATED SCHEDULE OF INVESTMENTS			31

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Shin Zu Shing Co. Ltd.		230,000	$	623,275
Shining Building Business Co. Ltd.^a		624,910		453,674
Shinkong Synthetic Fibers Corp.		1,842,000		677,874
Shinkong Textile Co. Ltd.		218,000		301,213
Sigurd Microelectronics Corp.		593,000		664,609
Silicon Integrated Systems Corp.^a		1,936,000		633,448
Siliconware Precision Industries Co. Ltd.		3,385,000		4,937,555
Silitech Technology Corp.		533,350		475,528
Simplo Technology Co. Ltd.		526,000		2,956,391
Sino-American Silicon Products Inc.^a		605,000		981,666
Sinon Corp.		1,844,000		1,070,353
SinoPac Financial Holdings Co. Ltd.		7,523,541		3,435,752
Sinyi Realty Co.		295,687		390,747
Soft-World International Corp.		145,000		479,768
Solar Applied Materials Technology Corp.		663,000		615,522
Sonix Technology Co. Ltd.		503,000		890,206
St.Shine Optical Co. Ltd.		60,000		1,240,528
Standard Foods Corp.		573,953		1,474,702
Synnex Technology International Corp.		1,578,000		2,407,347
Ta Chen Stainless Pipe Co. Ltd.		1,273,200		932,841
Ta Chong Bank Ltd.^a		1,871,489		607,332
Taichung Commercial Bank Co. Ltd.		1,604,975		561,114
Taiflex Scientific Co. Ltd.		526,000		948,509
Taigen Biopharmaceuticals Holdings Ltd.^a		298,000		400,783
Tainan Spinning Co. Ltd.		1,157,995		716,713
Taishin Financial Holdings Co. Ltd.		8,931,316		4,541,778
Taiwan Acceptance Corp.		158,000		425,520
Taiwan Business Bank Ltd.^a		4,207,404		1,317,519
Taiwan Cement Corp.		3,720,000		5,911,577
Taiwan Cogeneration Corp.		733,000		549,312
Taiwan Cooperative Financial Holding Co. Ltd.		6,241,872		3,487,371
Taiwan Fertilizer Co. Ltd.		1,052,000		1,995,564


Security	Shares		Value
Taiwan Glass Industry Corp.		1,055,000	$	910,624
Taiwan Hon Chuan Enterprise Co. Ltd.		526,000		1,045,295
Taiwan Land Development Corp.^a		2,372,538		932,648
Taiwan Life Insurance Co. Ltd.^a		691,674		490,574
Taiwan Liposome Co. Ltd.^a		57,000		440,508
Taiwan Mobile Co. Ltd.		2,104,000		6,708,192
Taiwan PCB Techvest Co. Ltd.		428,042		698,832
Taiwan Prosperity Chemical Corp.^a		541,000		492,304
Taiwan Sakura Corp.		1,221,000		890,510
Taiwan Secom Co. Ltd.		291,185		827,072
Taiwan Semiconductor Manufacturing Co. Ltd.		28,404,000		117,833,291
Taiwan Surface Mounting Technology Co. Ltd.		366,392		581,633
Taiwan TEA Corp.		948,000		605,771
Taiwan-Sogo Shinkong Security Corp.		551,770		766,078
Tatung Co. Ltd.^a		2,228,000		721,535
Teco Electric and Machinery Co. Ltd.		2,238,000		2,815,236
Test Research Inc.		343,400		605,449
Test-Rite International Co. Ltd.		746,000		490,420
Ton Yi Industrial Corp.		927,000		710,202
Tong Hsing Electronic Industries Ltd.		174,000		838,260
Tong Yang Industry Co. Ltd.		526,400		669,216
Topco Scientific Co. Ltd.		536,351		1,046,127
TPK Holding Co. Ltd.		290,000		1,969,522
Transcend Information Inc.		189,000		635,469
Tripod Technology Corp.		526,000		1,068,172
Tsann Kuen Enterprise Co. Ltd.		367,000		459,203
TSRC Corp.		701,900		982,737
TTY Biopharm Co. Ltd.		315,124		722,169
Tung Ho Steel Enterprise Corp.		767,000		644,074
TWi Pharmaceuticals Inc.^a		52,000		440,140
TXC Corp.		470,000		687,928
U-Ming Marine Transport Corp.		526,000		865,800


32		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Uni-President Enterprises Co.		5,237,971	$	9,585,554
Unimicron Technology Corp.		1,465,000		1,237,559
Union Bank of Taiwan^a		1,530,511		550,442
Unitech Printed Circuit Board Corp.^a		1,781,000		768,636
United Microelectronics Corp.		13,526,000		6,176,876
Unity Opto Technology Co. Ltd.^a		442,000		514,598
UPC Technology Corp.		1,241,146		489,972
USI Corp.		1,117,000		603,521
Vanguard International Semiconductor Corp.		951,000		1,391,956
Visual Photonics Epitaxy Co. Ltd.		578,000		600,422
Wah Lee Industrial Corp.		526,000		1,008,340
Walsin Lihwa Corp.^a		3,757,000		1,344,906
Wan Hai Lines Ltd.		685,000		450,319
Waterland Financial Holdings Co. Ltd.		1,505,293		459,789
Wei Chuan Foods Corp.		526,000		774,293
Win Semiconductors Corp.		656,000		669,377
Winbond Electronics Corp.^a		3,248,000		1,102,932
Wintek Corp.^a		2,475,000		840,443
Wistron Corp.		2,590,299		3,033,086
Wistron NeWeb Corp.		296,591		773,962
Wowprime Corp.		69,260		842,275
WPG Holdings Co. Ltd.		1,496,000		1,949,422
WT Microelectronics Co. Ltd.		526,050		828,924
Yageo Corp.		2,415,500		2,020,291
Yang Ming Marine Transport Corp.^a		1,487,000		669,114
Yem Chio Co. Ltd.		1,341,467		792,121
YFY Inc.		1,128,000		515,120
Yieh Phui Enterprise Co. Ltd.		1,547,340		504,728
Youngtek Electronics Corp.		302,853		706,206
Yuanta Financial Holding Co. Ltd.		9,304,425		5,011,667
Yulon Motor Co. Ltd.		1,052,000		1,689,366
YungShin Global Holding Corp.		526,000		1,006,581
Yungtay Engineering Co. Ltd.		526,000		1,303,980
Zhen Ding Technology Holding Ltd.		345,950		1,143,502
Zinwell Corp.		571,000		532,975

				727,757,292


Security	Shares		Value
THAILAND — 2.50%
Advanced Information Service PCL NVDR		1,222,200	$	7,997,489
Airports of Thailand PCL NVDR		516,500		3,832,514
Amata Corp. PCL NVDR		1,194,800		624,708
AP (Thailand) PCL NVDR		3,038,300		761,002
Bangchak Petroleum PCL NVDR		556,300		596,533
Bangkok Bank PCL Foreign		606,800		3,894,615
Bangkok Bank PCL NVDR		646,400		4,148,779
Bangkok Chain Hospital PCL NVDR		2,603,850		811,155
Bangkok Dusit Medical Services PCL NVDR		4,065,000		2,481,763
Bangkok Expressway PCL NVDR		663,300		809,915
Bangkok Land PCL NVDR		14,253,200		981,748
Banpu PCL NVDR		1,255,500		1,267,685
BEC World PCL NVDR		1,242,300		1,847,503
BTS Group Holdings PCL NVDR		6,724,000		2,031,515
Bumrungrad Hospital PCL NVDR		481,100		2,033,453
Central Pattana PCL NVDR		1,663,100		2,512,354
Central Plaza Hotel PCL NVDR		766,400		947,802
Charoen Pokphand Foods PCL NVDR		3,206,400		2,961,453
CP All PCL NVDR		5,135,500		7,637,328
Delta Electronics (Thailand) PCL NVDR		629,100		1,280,260
Dynasty Ceramic PCL NVDR		303,500		553,503
Energy Absolute PCL NVDR		1,712,800		1,324,551
Esso (Thailand) PCL NVDR^a		2,538,000		468,823
Glow Energy PCL NVDR		656,600		1,798,763
Hana Microelectronics PCL NVDR		784,900		952,250
Hemaraj Land and Development PCL NVDR		7,020,800		945,192
Home Product Center PCL NVDR^b		4,123,984		1,355,724
Indorama Ventures PCL NVDR		1,551,000		1,311,115
IRPC PCL NVDR		12,671,100		1,317,096


CONSOLIDATED SCHEDULE OF INVESTMENTS			33

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Jasmine International PCL NVDR^b		4,792,100	$	960,220
Kasikornbank PCL Foreign		1,350,600		9,556,531
Kasikornbank PCL NVDR		744,200		5,242,486
Khon Kaen Sugar Industry PCL NVDR		1,304,100		563,450
Kiatnakin Bank PCL NVDR^b		620,400		815,805
Krung Thai Bank PCL NVDR		4,394,500		3,233,273
LPN Development PCL NVDR^b		1,016,300		690,473
Major Cineplex Group PCL NVDR		1,045,300		710,176
Minor International PCL NVDR		1,995,400		2,202,187
Polyplex PCL NVDR^a		1,041,400		394,519
Pruksa Real Estate PCL NVDR^b		951,200		1,027,439
PTT Exploration & Production PCL NVDR		1,589,301		8,185,348
PTT Global Chemical PCL NVDR		1,913,500		3,714,371
PTT PCL NVDR		983,600		9,885,272
Quality Houses PCL NVDR		5,966,600		829,421
Siam Cement (The) PCL Foreign		364,800		5,025,423
Siam Cement (The) PCL NVDR		108,800		1,498,810
Siam Commercial Bank PCL NVDR		1,834,300		10,739,327
Siam Global House PCL NVDR		1,588,258		735,949
Sino-Thai Engineering & Construction PCL NVDR		1,051,428		839,431
Sri Trang Agro-Industry PCL NVDR^b		1,067,500		471,251
Supalai PCL NVDR		980,800		798,397
Thai Airways International PCL NVDR^a,b		1,048,900		499,163
Thai Oil PCL NVDR		946,800		1,534,029
Thai Tap Water Supply PCL NVDR		2,142,400		838,447
Thai Vegetable Oil PCL NVDR		856,000		603,006
Thaicom PCL NVDR		672,900		832,171
Thanachart Capital PCL NVDR		914,100		1,001,675


Security	Shares		Value
Thoresen Thai Agencies PCL NVDR^a		953,702	$	698,705
Ticon Industrial Connection PCL NVDR^b		1,060,760		584,514
TISCO Financial Group PCL NVDR^b		639,750		881,309
TMB Bank PCL NVDR		16,965,200		1,614,722
TPI Polene PCL NVDR		1,098,800		560,753
True Corp. PCL NVDR^a		9,526,618		3,430,060
VGI Global Media PCL NVDR^b		2,102,700		875,576

				141,560,280
TURKEY — 1.63%
Akbank TAS		2,135,127		8,152,852
Akfen Holding AS^b		199,222		465,293
Akmerkez Gayrimenkul Yatirim Ortakligi AS		39,681		299,729
Aksa Akrilik Kimya Sanayii AS		115,628		380,970
Albaraka Turk Katilim Bankasi AS		621,938		498,599
Anadolu Efes Biracilik ve Malt Sanayii AS^a		245,333		3,262,845
Arcelik AS		281,259		1,687,854
Asya Katilim Bankasi AS^a		682,196		392,003
BIM Birlesik Magazalar AS		249,352		5,869,961
Bizim Toptan Satis Magazalari AS^b		59,724		514,779
Cimsa Cimento Sanayi ve TAS		84,989		604,547
Coca-Cola Icecek AS		91,525		2,163,060
Dogan Sirketler Grubu Holding AS^a		1,354,031		489,420
Dogan Yayin Holding AS^a,b		2,417,985		425,790
Dogus Otomotiv Servis ve TAS		81,744		331,832
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		2,255,417		2,842,853
Enka Insaat ve Sanayi AS		580,935		1,456,409
Eregli Demir ve Celik Fabrikalari TAS^b		1,690,438		3,290,085
Ford Otomotiv Sanayi AS^a		89,118		1,176,980
Haci Omer Sabanci Holding AS		1,096,374		5,080,627
Is Gayrimenkul Yatirim Ortakligi AS		890,891		565,593


34		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Kardemir Karabuk Demir Celik Sanayi ve TAS Class D^a		1,159,413	$	1,219,615
KOC Holding AS^b		758,262		3,882,757
Koza Altin Isletmeleri AS		62,341		671,669
Sekerbank TAS^a,b		567,131		517,736
TAV Havalimanlari Holding AS		198,479		1,650,964
Tofas Turk Otomobil Fabrikasi AS		156,612		965,240
Trakya Cam Sanayii AS		486,520		597,455
Turk Hava Yollari AO^a		660,491		2,096,602
Turk Telekomunikasyon AS		642,178		1,862,895
Turkcell Iletisim Hizmetleri AS^a		1,030,397		6,040,234
Turkiye Garanti Bankasi AS		2,709,268		10,633,935
Turkiye Halk Bankasi AS		743,505		5,460,995
Turkiye Is Bankasi AS Class C		1,906,529		4,929,879
Turkiye Petrol Rafinerileri AS		148,662		3,499,631
Turkiye Sinai Kalkinma Bankasi AS^b		985,366		867,581
Turkiye Sise ve Cam Fabrikalari AS		850,311		1,150,586
Turkiye Vakiflar Bankasi TAO Class D		949,083		2,190,242
Ulker Biskuvi Sanayi AS		189,922		1,408,166
Yapi ve Kredi Bankasi AS^b		1,092,807		2,435,831
Yazicilar Holding AS		47,192		426,444

				92,460,538
UNITED ARAB EMIRATES — 0.55%
Abu Dhabi Commercial Bank PJSC		1,324,305		2,887,977
Agthia Group PJSC		243,062		370,577
Air Arabia PJSC		2,574,137		967,128
Ajman Bank PJSC^a		664,437		479,372
Al Waha Capital PJSC		1,132,325		915,589
Aldar Properties PJSC		3,638,123		3,952,059
Arabtec Holding Co.^a		1,309,511		1,679,203
Dana Gas PJSC^a		3,863,854		736,363
DP World Ltd.		187,420		3,519,748
Dubai Financial Market PJSC		2,313,721		2,141,722
Dubai Islamic Bank PJSC		620,954		1,320,333
Emaar Properties PJSC		2,067,491		5,769,533
Eshraq Properties Co. PJSC^a		1,102,023		408,040
First Gulf Bank PJSC		488,676		2,428,047


Security	Shares		Value
Gulf General Investment Co.^a		1,004,954	$	331,058
National Bank of Abu Dhabi PJSC		711,214		2,710,825
RAK Properties PJSC		1,311,842		375,011

				30,992,585

TOTAL COMMON STOCKS
(Cost: $4,920,185,188)				5,316,263,139

PREFERRED STOCKS — 5.66%

BRAZIL — 4.44%
AES Tiete SA		118,500		1,065,549
Banco ABC Brasil SA		107,384		719,877
Banco Bradesco SA		2,402,570		43,851,963
Banco Daycoval SA		102,200		413,815
Banco do Estado do Rio Grande do Sul SA Class B		214,900		1,483,857
Banco Industrial e Comercial SA		110,200		374,302
Banco Pan SA		216,800		340,090
Banco Pine SA		125,333		457,630
Bradespar SA		258,000		2,357,981
Braskem SA Class A		177,000		1,206,342
Centrais Eletricas Brasileiras SA Class B		224,000		1,236,352
Companhia Brasileira de Distribuicao		157,800		8,034,044
Companhia de Ferro Ligas da Bahia – Ferbasa		79,500		364,182
Companhia Energetica de Minas Gerais		872,020		7,467,052
Companhia Energetica de Sao Paulo Class B		219,400		3,107,321
Companhia Energetica do Ceara Class A		23,300		380,081
Companhia Paranaense de Energia Class B		121,000		2,144,694
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA		124,800		574,485
Eucatex SA Industria e Comercio		85,900		172,756
Gerdau SA		983,500		5,696,480
GOL Linhas Aereas Inteligentes SA		114,400		709,136
Itau Unibanco Holding SA		3,172,948		57,232,322


CONSOLIDATED SCHEDULE OF INVESTMENTS			35

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


Security	Shares		Value
Itausa – Investimentos Itau SA		3,658,798	$	17,823,467
Lojas Americanas SA		563,975		3,992,476
Marcopolo SA		577,700		1,123,101
Metalurgica Gerdau SA		321,700		2,280,245
Petroleo Brasileiro SA		4,840,900		50,517,314
Randon SA Implementos e Participacoes		266,750		865,502
Saraiva Livreiros Editores SA		54,600		416,537
Suzano Papel e Celulose SA Class A		376,500		1,499,236
Telefonica Brasil SA		330,700		7,072,018
Usinas Siderurgicas de Minas Gerais SA Class A		448,100		1,618,131
Vale SA Class A		2,140,500		24,843,595

				251,441,933
CHILE — 0.07%
Embotelladora Andina SA Class B		351,990		1,153,818
Sociedad Quimica y Minera de Chile SA Series B		112,725		3,085,928

				4,239,746
COLOMBIA — 0.28%
Avianca Holdings SA		431,269		876,723
Banco Davivienda SA		126,607		2,105,222
Bancolombia SA		488,265		7,737,109
Grupo Argos SA		142,858		1,742,489
Grupo Aval Acciones y Valores SA		1,406,422		1,052,003
Grupo de Inversiones Suramericana SA		105,403		2,395,460

				15,909,006
RUSSIA — 0.21%
AK Transneft OAO		2,054		4,518,698
Sberbank of Russia		1,072,800		1,599,724
Surgutneftegas OJSC		8,049,600		5,924,174

				12,042,596
SOUTH AFRICA — 0.02%
Allied Electronics Corp. Ltd.		375,459		902,339

				902,339
SOUTH KOREA — 0.64%
Hyundai Motor Co. Ltd.		27,405		4,054,194
Hyundai Motor Co. Ltd. Series 2		43,267		6,699,461


Security	Shares		Value
LG Chem Ltd.		8,786	$	1,529,394
Samsung Electronics Co. Ltd.		23,799		23,941,003

				36,224,052

TOTAL PREFERRED STOCKS
(Cost: $283,100,969)				320,759,672

RIGHTS — 0.00%

BRAZIL — 0.00%
Banco Pan SA^a		19,991		89

				89
SOUTH KOREA — 0.00%
JB Financial Group Co. Ltd.^a		20,266		22,586

				22,586
TOTAL RIGHTS
(Cost: $0)				22,675

WARRANTS — 0.00%

THAILAND — 0.00%
Indorama Ventures PCL NVDR (Expires 8/24/17)^a		144,050		—
Indorama Ventures PCL NVDR (Expires 8/24/18)^a		110,807		—
Thoresen Thai Agencies PCL NVDR (Expires 2/28/17)^a		1		—

				—

TOTAL WARRANTS
(Cost: $0)				—

SHORT-TERM INVESTMENTS — 4.60%

MONEY MARKET FUNDS — 4.60%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^e,f,g		114,015,877		114,015,877
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		7,177,612		7,177,612
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^e,f		139,668,164		139,668,164

				260,861,653

TOTAL SHORT-TERM INVESTMENTS
(Cost: $260,861,653)				260,861,653


36		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014


	Value
TOTAL INVESTMENTS IN SECURITIES — 104.03%
(Cost: $5,464,147,810)	$	5,897,907,139
Other Assets, Less Liabilities — (4.03)%		(228,740,213	)

NET ASSETS — 100.00%	$	5,669,166,926

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

NVS — Non-Voting Shares

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 1.

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

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

^e	Affiliated issuer. See Note 2.

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

^g	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

Financial futures contracts purchased as of August 31, 2014 were as follows:


Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Unrealized Appreciation (Depreciation)
	484	MSCI Emerging Markets E-Mini (Sept. 2014)	NYSE Liffe	$	26,276,360	$	370,530

See notes to consolidated financial statements.


CONSOLIDATED SCHEDULE OF INVESTMENTS			37

Consolidated Statement of Assets and Liabilities

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2014



ASSETS
Investments, at cost:
Unaffiliated	$	5,203,286,157
Affiliated (Note 2)		260,861,653

Total cost of investments	$	5,464,147,810

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	5,637,045,486
Affiliated (Note 2)		260,861,653

Total fair value of investments		5,897,907,139
Foreign currency, at value^b		181,211,425
Cash		9,348,492
Cash pledged to broker		779,946
Receivables:
Investment securities sold		9,286,863
Dividends and interest		8,890,194
Futures variation margin		370,530

Total Assets		6,107,794,589


LIABILITIES
Payables:
Investment securities purchased		316,151,008
Collateral for securities on loan (Note 1)		121,193,489
Foreign taxes (Note 1)		482,762
Investment advisory fees (Note 2)		800,404

Total Liabilities		438,627,663


NET ASSETS	$	5,669,166,926


Net assets consist of:
Paid-in capital	$	5,259,501,818
Undistributed net investment income		35,140,187
Accumulated net realized loss		(59,406,948	)
Net unrealized appreciation		433,931,869

NET ASSETS	$	5,669,166,926


Shares outstanding^c		105,200,000


Net asset value per share	$	53.89

^a	Securities on loan with a value of $112,869,006. See Note 1.

^b	Cost of foreign currency: $181,215,803.

^c	$0.001 par value, number of shares authorized: 250 million.

See notes to consolidated financial statements.


38		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statement of Operations

iSHARES^® CORE MSCI EMERGING MARKETS ETF

Year ended August 31, 2014



NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	100,925,143
Interest — affiliated (Note 2)		1,242
Securities lending income — affiliated (Note 2)		1,821,173

		102,747,558
Less: Other foreign taxes (Note 1)		(613,675	)

Total investment income		102,133,883


EXPENSES
Investment advisory fees (Note 2)		6,606,028
Mauritius income taxes (Note 1)		77,381
Commitment fees (Note 8)		5,084
Interest expense (Note 8)		3,174

Total expenses		6,691,667
Less investment advisory fees waived (Note 2)		(501,946	)

Net expenses		6,189,721

Net investment income		95,944,162


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(52,467,963	)
Futures contracts		2,597,960
Foreign currency transactions		(911,089	)

Net realized loss		(50,781,092	)

Net change in unrealized appreciation/depreciation on:
Investments		584,310,060
Futures contracts		600,924
Translation of assets and liabilities in foreign currencies		(125,633	)

Net change in unrealized appreciation/depreciation		584,785,351

Net realized and unrealized gain		534,004,259

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	629,948,421

^a	Net of foreign withholding tax of $12,345,922.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			39

Consolidated Statements of Changes in Net Assets

iSHARES^® CORE MSCI EMERGING MARKETS ETF


	Year ended August 31, 2014			Period from October 18, 2012^a to August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	95,944,162		$	24,214,512
Net realized loss		(50,781,092	)		(9,822,479	)
Net change in unrealized appreciation/depreciation		584,785,351			(150,853,482	)

Net increase (decrease) in net assets resulting from operations		629,948,421			(136,461,449	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(69,107,942	)		(14,713,922	)

Total distributions to shareholders		(69,107,942	)		(14,713,922	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,243,361,038			2,016,140,780

Net increase in net assets from capital share transactions		3,243,361,038			2,016,140,780

INCREASE IN NET ASSETS		3,804,201,517			1,864,965,409

NET ASSETS
Beginning of period		1,864,965,409			—

End of period	$	5,669,166,926		$	1,864,965,409

Undistributed net investment income included in net assets at end of period	$	35,140,187		$	9,146,582


SHARES ISSUED
Shares sold		64,400,000			40,800,000

Net increase in shares outstanding		64,400,000			40,800,000

^a	Commencement of operations.

See notes to consolidated financial statements.


40		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Financial Highlights

iSHARES^® CORE MSCI EMERGING MARKETS ETF

(For a share outstanding throughout each period)


	Year ended Aug. 31, 2014			Period from Oct. 18, 2012^a to Aug. 31, 2013
Net asset value, beginning of period	$	45.71		$	49.06

Income from investment operations:
Net investment income^b		1.31			1.33
Net realized and unrealized gain (loss)^c		7.78			(4.14	)

Total from investment operations		9.09			(2.81	)

Less distributions from:
Net investment income		(0.91	)		(0.54	)

Total distributions		(0.91	)		(0.54	)

Net asset value, end of period	$	53.89		$	45.71


Total return		20.05	%		(5.75	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	5,669,167		$	1,864,965
Ratio of expenses to average net assets^e		0.17	%		0.05	%
Ratio of expenses to average net assets prior to waived fees^e		0.18	%		0.18	%
Ratio of net investment income to average net assets^e		2.61	%		3.17	%
Portfolio turnover rate^f		8	%		15	%

^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.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the year ended August 31, 2014 and the period ended August 31, 2013 were 8% and 15%, respectively. See Note 4.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL HIGHLIGHTS			41

Notes to Consolidated Financial Statements

iSHARES^® CORE MSCI EMERGING MARKETS ETF

These consolidated financial statements relate only to the following fund (the “Fund”):

iShares ETF

Diversification

Classification

Core MSCI Emerging Markets

Diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION


42		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

•

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			43

Notes to Consolidated Financial Statements (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF


	Investments
Investment Type	Level 1			Level 2			Level 3		Total
Assets:
Common Stocks	$	5,307,279,075		$	8,608,974		$	375,090	$	5,316,263,139
Preferred Stocks		320,759,672			—			—		320,759,672
Rights		—			22,675			—		22,675
Warrants		0	^a		0	^a		—		0	^a
Money Market Funds		260,861,653			—			—		260,861,653
Futures Contracts^b		370,530			—			—		370,530

	$	5,889,270,930		$	8,631,649		$	375,090	$	5,898,277,669

Rounds to less than $1.

Shown at the unrealized appreciation (depreciation) on the contracts.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of August 31, 2014 are reflected in dividends receivable. 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. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES


44		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2014, if any, are disclosed in the Fund’s consolidated statement of assets and liabilities.

As a result of legislative changes enacted by the 2012 India Finance Act (“the Act”) and its general anti-avoidance rules (“GAAR”), which are effective April 1, 2013 but have been proposed to be deferred until April 1, 2016, the Subsidiary’s ability to leverage the treaty between Mauritius and India may be adversely impacted, and therefore the Fund may be subject to taxes on capital gains and/or dividends realized on Indian securities. The Act also includes provisions that impose Indian tax on the transfer of shares of an Indian company. However, until more definitive guidance on the legislative changes is available, the impact to the Fund, if any, cannot be determined at this time.

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES

Any cash received as collateral for securities on loan 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 BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, or its affiliates. As of August 31, 2014, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA and is disclosed in the consolidated schedule of investments. The value of any securities on loan as of August 31, 2014 and the value of the related collateral are disclosed in the consolidated statement of assets and liabilities. Income earned by the Fund from securities lending is disclosed in the consolidated statement of operations.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			45

Notes to Consolidated Financial Statements (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

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. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities lent. The Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

The following table is a summary of the Fund’s securities lending agreements which are subject to offset under an MSLA as of August 31, 2014:


Market Value of Securities on Loan		Cash Collateral Received ^a		Net Amount
$	112,869,006	$	112,869,006	$	—

RECENT ACCOUNTING STANDARD

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee of 0.18% based on the average daily net assets of the Fund.


46		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

For the year ended August 31, 2014, BFA has voluntarily waived a portion of its investment advisory fees for the Fund in the amount of $501,946.

BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through December 31, 2014 in an amount equal to the Fund’s pro rata share of the fees and expenses attributable to the Fund’s investments in other iShares funds. The Fund did not hold any iShares funds during the year ended August 31, 2014.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Effective January 1, 2014, the Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Fund retains a portion of securities lending income and remits a remaining portion to BTC as compensation for its services as securities lending agent.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in calendar year 2013) and pursuant to a securities lending agreement, (i) the Fund will receive for the remainder of that calendar year 80% of securities lending income and (ii) these amounts can never be less than 65% of the total of securities lending income plus the collateral investment fees.

For the year ended August 31, 2014, the Fund paid to BTC securities lending agent services and collateral investment fees in the amount of $698,115. Prior to January 1, 2014, the Fund retained 65% of securities lending income and paid no collateral investment fees.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Fund for 1940 Act purposes.

The Fund in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the Fund’s underlying index.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			47

Notes to Consolidated Financial Statements (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

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 year ended August 31, 2014, were $3,039,067,756 and $302,820,587, respectively.

In-kind purchases and sales (see Note 4) for the year ended August 31, 2014, were $514,966,670 and $ —, respectively.

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FINANCIAL FUTURES CONTRACTS*

The Fund may purchase or sell financial futures contracts in an effort to help the Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.


Assets
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation^a	$	370,530

^a	Represents cumulative appreciation of futures contracts as reported in the consolidated schedule of investments.


48		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF


	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	2,597,960	$	600,924

For the year ended August 31, 2014, the average quarter-end number of contracts and notional value of open futures contracts for the Fund were 300 and $15,190,261, respectively.

6.	*MARKET AND CREDIT RISK*

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss the Fund may suffer through holding market positions in the face of market movements. The Fund is exposed to market risk by virtue of its investment in equity and financial derivative instruments. The fair value of securities held by the Fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of the Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s consolidated schedule of investments.

A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its consolidated schedule of investments.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			49

Notes to Consolidated Financial Statements (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

The United States and the European Union, along with the regulatory bodies of a number of countries including Japan, Australia and Canada (collectively, “Sanctioning Bodies”), have imposed sectorial economic sanctions on certain Russian individuals and Russian corporate entities which include prohibitions on transacting in or dealing in new debt of longer than 30 or 90 days maturity or new equity of such issuers. Securities held by the Fund issued prior to the date of the sanctions being imposed are not currently subject to any restrictions under the sanctions. However, compliance with each of these sanctions may impair the ability of a Fund to buy, sell, hold, receive or deliver the affected securities or other securities of such issuers. The Sanctioning Bodies could also institute broader sanctions on Russia. These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy. Current or future sanctions may result in Russia taking counter measures or retaliatory actions, which may further impair the value and liquidity of Russian securities. These retaliatory measures may include the immediate freeze of Russian assets held by a Fund.

CREDIT RISK

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in the consolidated statement of assets and liabilities.

7.	*INCOME TAX INFORMATION*

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of August 31, 2014, attributable to passive foreign investment companies and foreign currency transactions, were reclassified to the following accounts:

Paid-in
Capital

Undistributed

Net Investment

Income/Distributions
in Excess of Net
Investment Income

Undistributed

Net Realized

Gain/Accumulated

Net Realized Loss

—

(842,615)

842,615


50		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

The tax character of distributions paid during the years ended August 31, 2014 and August 31, 2013 was as follows:


	2014		2013
Ordinary income	$	69,107,942	$	14,713,922

As of August 31, 2014, the tax components of accumulated net earnings (losses) were as follows:

Undistributed
Ordinary
Income

Capital

Loss
Carryforwards

Net Unrealized
Gains (Losses)^a

Qualified
Late-Year
Losses ^b

Total

44,472,499

(6,567,880

)

390,530,151

(18,769,662

)

409,665,108

The Fund has elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of August 31, 2014, the Fund had non-expiring capital loss carryforwards in the amount of $6,567,880 available to offset future realized capital gains.

As of August 31, 2014, the cost of investments for federal income tax purposes was $5,507,178,998. Net unrealized appreciation was $390,728,141, of which $615,721,781 represented gross unrealized appreciation on securities and $224,993,640 represented gross unrealized depreciation on securities.

8.	*LINE OF CREDIT*

The Fund along with certain other iShares funds, is a party to a $150 million credit agreement with State Street Bank and Trust Company, which expires October 28, 2015. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.08% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

For the year ended August 31, 2014, the Fund’s maximum amount borrowed, the average borrowings and the weighted average interest rate under the credit agreement were $7,500,000, $269,863 and 1.16%, respectively.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			51

Notes to Consolidated Financial Statements (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

9.	*SUBSEQUENT EVENTS*


52		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

iShares, Inc.:

In our opinion, the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, and the related consolidated statements of operations and of changes in net assets and the consolidated financial highlights present fairly, in all material respects, the financial position of iShares Core MSCI Emerging Markets ETF and its subsidiary (the “Fund”) at August 31, 2014, the results of its operations, the changes in its net assets and its financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These consolidated financial statements and consolidated financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2014


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			53

Tax Information (Unaudited)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

For the fiscal period ended August 31, 2014, the Fund earned foreign source income of $113,199,006 and paid foreign taxes of $12,943,122 which it intends to pass through to its shareholders pursuant to Section 853 of the Internal Revenue Code (the “Code”).

Under Section 854(b)(2) of the Code, the Fund hereby designates the maximum amount of $64,386,981 as qualified dividend income for purposes of the maximum rate under Section 1(h)(11) of the Code for the fiscal period ended August 31, 2014.


54		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^® CORE MSCI EMERGING MARKETS ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			55

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


56		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board further noted management’s assertion that future economies of scale for the Fund had been taken into consideration by fixing the investment advisory fee rate at the low end of the market place, effectively giving Fund shareholders, from inception, the benefits of a lower fee. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the investment advisory fee rate incorporates potential economies of scale and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			57

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF


58		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

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 the 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								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
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
$	0.905541	$	—	$	—	$	0.905541		100	%		—	%		—	%		100	%

Premium/Discount Information

The table that follows presents information about the differences between the daily market price on secondary markets for shares of the Fund and the Fund’s net asset value. Net asset value, or “NAV,” is the price per share at which the Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of the Fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV. The NAV of the Fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of the Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of the Fund on a given day, generally at the time NAV is calculated. A premium is the amount that the Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Fund is trading below the reported NAV, expressed as a percentage of the NAV.

The following information shows the frequency distributions of premiums and discounts for the Fund included in this report. The information shown for the Fund is for each full calendar quarter completed after the inception date of the Fund through the date of the most recent calendar quarter-end.


SUPPLEMENTAL INFORMATION			59

Supplemental Information (Unaudited) (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by the table. All data presented here represents past performance, which cannot be used to predict future results.

iShares Core MSCI Emerging Markets ETF

Period Covered: January 1, 2013 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0% and Less than 4.5%		1		0.27	%
Greater than 1.5% and Less than 2.0%		7		1.86
Greater than 1.0% and Less than 1.5%		17		4.52
Greater than 0.5% and Less than 1.0%		88		23.40
Between 0.5% and –0.5%		213		56.65
Less than –0.5% and Greater than –1.0%		34		9.04
Less than –1.0% and Greater than –1.5%		11		2.93
Less than –1.5% and Greater than –2.0%		3		0.80
Less than –2.0% and Greater than –2.5%		2		0.53

		376		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares Core MSCI Emerging Markets ETF (the “Fund”) for marketing to EU investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to both (a) the staff of BFA; and (b) staff who are senior management or who have the ability to materially affect the risk profile of the Fund.


60		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares Core MSCI Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2013 is USD 942,348. This figure is comprised of fixed remuneration of USD 370,527 and variable remuneration of USD 571,821. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares Core MSCI Emerging Markets ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 151,395.


SUPPLEMENTAL INFORMATION			61

Director and Officer Information

iSHARES^®, INC.

Interested Directors

^a	Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc.

^b	Mark Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.


62		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert H. Silver (59)	Director (since 2007); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Independent Chairman of iShares, Trust, iShares MSCI Russia Capped ETF, Inc. and iShares U.S. ETF Trust (since 2012).

Cecilia H. Herbert (65)	Director (since 2005); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Forward Funds (34 portfolios) (since 2009).

Charles A. Hurty (70)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).


DIRECTOR AND OFFICER INFORMATION			63

Director and Officer Information (Continued)

iSHARES^®, INC.



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
John E. Kerrigan (59)	Director (since 2005); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (53)	Director (since 2003); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).

George G.C. Parker (75)	Director (since 2002).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).

Madhav V. Rajan (50)	Director (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).


64		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (54)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (45)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2007).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (51)	Executive Vice President (since 2007).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2007).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


DIRECTOR AND OFFICER INFORMATION			65

Notes:


66		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

LOGO

iS-AR-813-0814

AUGUST 31, 2014

2014 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI EMU ETF | EZU | NYSE Arca

^Ø

iShares MSCI Germany ETF | EWG | NYSE Arca

^Ø

iShares MSCI Japan ETF | EWJ | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			12
Shareholder Expenses			12
Schedules of Investments			13
iShares MSCI EMU ETF			13
iShares MSCI Germany ETF			17
iShares MSCI Japan ETF			19
Financial Statements			25
Financial Highlights			29
Notes to Financial Statements			32
Report of Independent Registered Public Accounting Firm			43
Tax Information			44
Board Review and Approval of Investment Advisory Contract			45
Supplemental Information			56
Director and Officer Information			61

Management’s Discussion of Fund Performance

iSHARES^®, INC.

INTERNATIONAL MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMU ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		18.02%		17.51%		18.21%		18.02%		17.51%		18.21%
5 Years		5.44%		5.34%		5.51%		30.31%		29.70%		30.73%
10 Years		6.22%		6.11%		6.36%		82.92%		80.90%		85.25%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	966.10	$	2.38	$	1,000.00	$	1,022.80	$	2.45		0.48%


6		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMU ETF

The iShares MSCI EMU ETF (the “Fund”) seeks to track the investment results of an index composed of equities from countries within the European Monetary Union, as represented by the MSCI EMU Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 18.02%, net of fees, while the total return for the Index was 18.21%.

European equities as a group achieved some of the strongest results among global equity markets for the reporting period, despite a slow pace of economic recovery.

After achieving modest levels of growth in the third and fourth quarters of 2013 and the first quarter of 2014, economic growth in the eurozone stagnated in the second quarter of 2014.

France represented 33% of the Index on average during the reporting period. French equities as a group achieved positive returns and contributed significantly to Index results, despite the fragile state of the country’s economic recovery. France’s economy demonstrated uneven growth early in the reporting period before stagnating in the first and second quarters of 2014 amid weak consumer spending and business investment.

Germany comprised an average of 30% of the Index and was the second largest contributor to Index results. Germany experienced uneven economic expansion throughout the reporting period, growing 0.7% in the first quarter of 2014 over the previous quarter, its fastest growth rate in three years, but contracted 0.2% in the second quarter of 2014.

Although it accounted for only 11% of the Index on average, Spain’s equity market’s strong absolute returns resulted in a substantial contribution to overall Index gains for the reporting period. Spain’s economy gained strength throughout the reporting period, growing by 0.6% in the second quarter of 2014, its fastest rate in more than six years. The Italian equity market, which represented 8% of the Index on average, also generated healthy absolute returns.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Financials	23.50	%
Industrials	13.12
Consumer Discretionary	12.66
Consumer Staples	10.15
Health Care	8.36
Materials	8.06
Energy	6.86
Utilities	6.37
Telecommunication Services	5.55
Information Technology	5.37

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Total SA (France)	3.49	%
Sanofi (France)	3.22
Banco Santander SA (Spain)	2.96
Bayer AG Registered (Germany)	2.74
Siemens AG Registered (Germany)	2.46
BASF SE (Germany)	2.34
Anheuser-Busch InBev NV (Belgium)	2.21
Daimler AG Registered (Germany)	1.95
Allianz SE Registered (Germany)	1.92
SAP SE (Germany)	1.77

TOTAL	25.06	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI GERMANY ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.41%		14.94%		15.63%		15.41%		14.94%		15.63%
5 Years		9.10%		9.00%		9.18%		54.58%		53.88%		55.17%
10 Years		9.30%		9.23%		9.46%		143.41%		141.80%		146.83%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	926.50	$	2.33	$	1,000.00	$	1,022.80	$	2.45		0.48%


8		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GERMANY ETF

The iShares MSCI Germany ETF (the “Fund”) seeks to track the investment results of an index composed of German equities, as represented by the MSCI Germany Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 15.41%, net of fees, while the total return for the Index was 15.63%.

German equities, as represented by the Index, achieved positive results for the reporting period but underperformed broad international indices.

Germany experienced uneven economic expansion throughout the reporting period, as the eurozone struggled with economic recovery and a conflict in Ukraine posed a potential threat to German trade. Economic growth as represented by GDP grew 0.7% in the first quarter of 2014 over the previous quarter, its fastest growth rate in three years and the strongest growth rate among eurozone countries, but contracted 0.2% in the second quarter of 2014. Industrial output levels were uneven throughout the reporting period. Factory orders shrank markedly in June 2014 as tensions surrounding the geopolitical crisis in Ukraine mounted, but rebounded in July 2014.

Within the Index, every sector achieved positive results during the reporting period. The consumer discretionary sector, the largest sector weighting in the Index on average, was also the largest contributor to Index results. The industrials and materials sectors also contributed meaningfully, despite the volatility created by the crisis in Ukraine. The health care and financials sectors were also notable contributors. Consumer staples and telecommunication services stocks contributed only modestly to Index returns.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Consumer Discretionary	20.80	%
Financials	16.94
Materials	14.29
Industrials	13.88
Health Care	13.85
Information Technology	7.62
Utilities	4.71
Telecommunication Services	4.14
Consumer Staples	3.77

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Bayer AG Registered	9.41	%
Siemens AG Registered	8.43
BASF SE	8.02
Daimler AG Registered	6.69
Allianz SE Registered	6.61
SAP SE	6.08
Deutsche Bank AG Registered	4.01
Deutsche Telekom AG Registered	3.95
Bayerische Motoren Werke AG	3.27
Linde AG	3.12

TOTAL	59.59	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI JAPAN ETF

Performance as of August 31, 2014


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		9.39%		10.11%		9.80%		9.39%		10.11%		9.80%
5 Years		4.64%		4.66%		5.19%		25.44%		25.57%		28.79%
10 Years		3.10%		3.00%		3.64%		35.75%		34.40%		42.96%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Beginning Account Value (3/1/14)		Ending Account Value (8/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,034.00	$	2.46	$	1,000.00	$	1,022.80	$	2.45		0.48%


10		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI JAPAN ETF

The iShares MSCI Japan ETF (the “Fund”) seeks to track the investment results of an index composed of Japanese equities, as represented by the MSCI Japan Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2014, the total return for the Fund was 9.39%, net of fees, while the total return for the Index was 9.80%.

Japanese equities, as represented by the Index, achieved positive results for the reporting period, but lagged the performance of broad international equity indices in an environment of considerable market volatility.

Japanese stocks delivered gains early in the reporting period, helped by government initiatives aimed at revitalizing the country’s stagnant economy. During the remainder of the reporting period, conflicting economic data revealed uneven economic growth levels, and an increase in the consumption tax rate curbed consumer spending. Although these events created an uneven market environment that persisted throughout the reporting period, equities finished the reporting period with solid gains overall.

Within the Index, the industrials sector was the largest contributing sector to performance. Industrials stocks as a group achieved gains early in the reporting period as economic conditions strengthened, but lagged in the final months of the reporting period, as the higher consumption tax placed a crimp on consumer demand. The information technology sector was also a meaningful contributor to Index results. Consumer discretionary and consumer staples stocks collectively contributed. Consumer spending spiked to a record high in the first quarter of 2014 in anticipation of the consumption tax increase in April 2014, and then dropped sharply in the second quarter of 2014. The utilities sector detracted modestly from Index results.

PORTFOLIO ALLOCATION

As of 8/31/14


Sector		Percentage of Total Investments*


Consumer Discretionary	20.60	%
Industrials	20.28
Financials	19.45
Information Technology	11.13
Consumer Staples	6.86
Health Care	6.58
Materials	5.87
Telecommunication Services	5.66
Utilities	2.35
Energy	1.22

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/14


Security		Percentage of Total Investments*


Toyota Motor Corp.	5.72	%
Mitsubishi UFJ Financial Group Inc.	2.68
SoftBank Corp.	2.51
Honda Motor Co. Ltd.	2.01
Sumitomo Mitsui Financial Group Inc.	1.88
Mizuho Financial Group Inc.	1.60
Japan Tobacco Inc.	1.41
Hitachi Ltd.	1.39
Canon Inc.	1.39
Takeda Pharmaceutical Co. Ltd.	1.29

TOTAL	21.88	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

About Fund Performance

Shareholder Expenses


12		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EMU ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 97.93%

AUSTRIA — 0.75%
Andritz AG		156,744	$	8,407,183
Erste Group Bank AG		600,852		15,456,870
IMMOEAST AG Escrow^a,b		105,078		2
IMMOFINANZ AG^a		2,070,327		6,503,979
IMMOFINANZ AG Escrow^a,b		68,575		1
OMV AG		315,636		12,223,221
Raiffeisen International Bank Holding AG		252,532		6,486,387
Telekom Austria AG		238,008		2,232,150
Vienna Insurance Group AG		82,175		3,992,467
Voestalpine AG		241,647		10,392,413

				65,694,673
BELGIUM — 4.07%
Ageas		476,763		16,042,065
Anheuser-Busch InBev NV		1,724,184		192,021,135
Belgacom SA		326,521		11,670,588
Colruyt SA		152,303		7,282,272
Delhaize Brothers and Co. “The Lion” (Delhaize Group) SA		219,877		15,364,449
Groupe Bruxelles Lambert SA		172,349		16,985,498
KBC Groep NV^a		537,719		30,721,801
Solvay SA		126,266		19,916,534
Telenet Group Holding NV^a		113,204		6,631,026
UCB SA		269,948		26,205,920
Umicore SA		232,939		11,295,847

				354,137,135
FINLAND — 2.88%
Elisa OYJ		306,957		8,377,590
Fortum OYJ		953,497		23,988,578
Kone OYJ Class B		670,487		28,437,934
Metso OYJ		241,647		9,497,997
Neste Oil OYJ^c		276,479		5,426,255
Nokia OYJ		8,030,808		67,647,477
Nokian Renkaat OYJ^c		243,824		7,788,252
Orion OYJ Class B		213,346		8,388,429
Sampo OYJ Class A		957,851		47,224,742
Stora Enso OYJ Class R		1,184,288		10,334,632
UPM-Kymmene OYJ		1,138,571		17,141,869
Wartsila OYJ Abp		317,842		16,017,992

				250,271,747
FRANCE — 32.60%
Accor SA		367,913		17,921,066
Aeroports de Paris		63,133		8,411,513


Security	Shares		Value

Airbus Group NV		1,260,483	$	77,710,741
Alcatel-Lucent^a,c		6,008,520		20,830,764
ALSTOM^a		463,672		16,450,521
ArcelorMittal		2,144,316		31,281,267
Arkema SA		121,912		9,170,868
Atos SA		169,806		12,986,194
AXA SA		3,892,476		96,647,162
BNP Paribas SA		2,268,405		153,520,546
Bollore		10,885		6,882,108
Bouygues SA		411,453		15,139,820
Bureau Veritas SA		474,586		11,302,256
Cap Gemini SA		309,105		22,031,059
Carrefour SA		1,336,678		46,455,347
Casino Guichard-Perrachon SA		121,912		14,585,710
Christian Dior SA		115,381		20,570,477
CNP Assurances SA		370,090		7,319,552
Compagnie de Saint-Gobain		953,526		48,518,689
Compagnie Generale des Etablissements Michelin Class B		398,391		44,158,616
Credit Agricole SA		2,146,464		31,906,339
Danone SA		1,238,713		86,704,983
Dassault Systemes SA		269,948		17,921,009
Edenred SA		437,577		13,008,819
Electricite de France SA		520,303		16,958,819
Essilor International SA		437,577		46,525,114
Eurazeo		80,549		6,135,715
Eutelsat Communications SA		330,904		11,064,480
Fonciere des Regions		60,956		6,182,427
GDF Suez		3,104,344		76,649,106
Gecina SA		60,956		8,631,310
Groupe Eurotunnel SA Registered		1,004,954		12,961,922
Icade		80,549		7,508,638
Iliad SA		56,304		12,400,161
Imerys SA		74,018		5,929,739
JCDecaux SA		143,682		5,083,469
Kering		161,098		34,216,980
Klepierre		215,523		10,290,902
L’Air Liquide SA		738,003		94,526,785
L’Oreal SA		537,719		89,243,735
Lafarge SA		400,568		30,760,728
Lagardere SCA		254,709		7,030,460
Legrand SA		570,374		31,607,056
LVMH Moet Hennessy Louis Vuitton SA		598,675		104,131,311


SCHEDULES OF INVESTMENTS			13

Schedule of Investments (Continued)

iSHARES^® MSCI EMU ETF

August 31, 2014


Security	Shares		Value

Natixis		1,994,132	$	14,052,691
Orange		3,975,115		60,318,980
Pernod Ricard SA		454,993		53,782,699
PSA Peugeot Citroen SA^a		840,293		11,832,057
Publicis Groupe SA		389,683		29,103,574
Remy Cointreau SA^c		52,248		4,162,987
Renault SA		411,424		32,288,058
Rexel SA		579,082		11,555,920
Safran SA		581,259		38,193,677
Sanofi		2,542,533		279,643,599
Schneider Electric SE		1,116,772		94,615,516
SCOR SE		330,904		10,155,697
SES SA Class A FDR		653,100		24,225,020
Societe BIC SA		60,956		8,302,116
Societe Generale		1,543,493		78,385,761
Sodexo		202,461		19,993,126
STMicroelectronics NV		1,369,275		11,496,206
Suez Environnement SA		603,000		11,143,633
Technip SA		219,877		20,418,354
Thales SA		200,284		11,210,782
Total SA		4,586,881		303,239,993
Unibail-Rodamco SE		208,992		56,268,115
Valeo SA		161,098		19,515,880
Vallourec SA		235,116		10,526,528
Veolia Environnement		899,101		16,550,538
Vinci SA		1,036,252		67,906,333
Vivendi SA		2,590,630		67,548,033
Wendel		67,487		8,166,682
Zodiac Aerospace		400,568		13,098,372

				2,836,975,210
GERMANY — 27.18%
Adidas AG		448,462		33,694,342
Allianz SE Registered		977,444		167,116,137
Axel Springer SE		84,903		5,042,607
BASF SE		1,967,979		202,945,096
Bayer AG Registered		1,772,049		238,199,335
Bayerische Motoren Werke AG		709,702		82,825,022
Beiersdorf AG		215,732		19,036,029
Brenntag AG		328,727		17,439,046
Celesio AG		108,856		3,706,506
Commerzbank AG^a		2,076,829		31,514,109
Continental AG		237,293		50,791,390
Daimler AG Registered		2,063,767		169,192,870
Deutsche Bank AG Registered		2,956,214		101,397,829
Deutsche Boerse AG		413,601		29,478,876


Security	Shares		Value

Deutsche Lufthansa AG Registered		496,356	$	8,613,818
Deutsche Post AG Registered		2,074,652		68,004,040
Deutsche Telekom AG Registered		6,678,920		100,115,268
Deutsche Wohnen AG Bearer		613,885		13,883,825
E.ON SE		4,290,809		78,165,151
Fraport AG		78,372		5,326,752
Fresenius Medical Care AG & Co. KGaA		463,672		32,778,892
Fresenius SE & Co. KGaA		809,844		39,607,564
GEA Group AG		391,860		17,771,323
Hannover Rueck SE Registered		130,620		10,875,451
HeidelbergCement AG		302,603		22,886,966
Henkel AG & Co. KGaA		250,355		23,871,882
Hochtief AG		44,484		3,525,035
Hugo Boss AG		67,244		9,446,397
Infineon Technologies AG		2,418,589		28,178,101
K+S AG Registered		370,090		11,533,839
Kabel Deutschland Holding AG		48,771		6,899,502
Lanxess AG		195,901		12,157,595
Linde AG		398,391		79,055,204
MAN SE		74,018		8,799,062
Merck KGaA		276,450		24,116,993
METRO AG^a		348,320		12,263,916
Muenchener Rueckversicherungs-Gesellschaft AG Registered		369,916		74,354,877
Osram Licht AG^a		191,576		8,029,585
ProSiebenSat.1 Media AG Registered		470,232		18,900,677
QIAGEN NV^a		502,713		12,203,861
RTL Group SA		82,726		8,045,012
RWE AG		1,049,285		41,159,488
SAP SE		1,974,510		153,968,846
Siemens AG Registered		1,700,208		213,515,306
Sky Deutschland AG^a		944,818		8,366,871
Telefonica Deutschland Holding AG^d		603,029		4,596,672
ThyssenKrupp AG^a		970,913		27,016,485
United Internet AG Registered		250,355		10,781,754
Volkswagen AG		63,133		14,178,576

				2,365,373,780
IRELAND — 0.99%
Bank of Ireland^a		58,835,602		23,481,976
CRH PLC		1,580,502		36,598,706


14		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EMU ETF

August 31, 2014


Security	Shares		Value

Irish Bank Resolution Corp. Ltd.^a,b		446,666	$	6
Kerry Group PLC Class A		339,612		25,610,044
Ryanair Holdings PLC^a		43,520		409,985
Ryanair Holdings PLC SP ADR^a		416		22,839

				86,123,556
ITALY — 8.16%
Assicurazioni Generali SpA		2,503,492		51,310,661
Atlantia SpA		885,787		22,541,781
Banca Monte dei Paschi di Siena SpA^a		9,342,702		14,004,466
Banco Popolare SC^a		777,160		12,151,027
CNH Industrial NV		2,031,141		17,684,523
Enel Green Power SpA		3,759,563		10,399,405
Enel SpA		14,113,288		74,843,447
Eni SpA		5,453,298		136,334,964
Exor SpA		211,140		8,421,282
Fiat SpA^a,c		1,880,899		18,432,754
Finmeccanica SpA^a		870,800		8,166,768
Intesa Sanpaolo SpA		24,937,042		74,365,785
Intesa Sanpaolo SpA RNC		2,013,725		5,265,171
Luxottica Group SpA		359,205		19,233,341
Mediobanca SpA^a		1,297,492		11,365,228
Pirelli & C. SpA		511,566		7,836,700
Prysmian SpA		437,548		8,910,191
Saipem SpA^a		568,168		13,515,942
Snam SpA		4,353,884		25,382,832
Telecom Italia SpA^a		21,597,495		24,906,422
Telecom Italia SpA RNC		12,950,654		11,941,023
Tenaris SA		1,014,482		22,436,073
Terna SpA		3,237,112		16,714,585
UniCredit SpA		9,463,245		73,418,784
Unione di Banche Italiane SpA		1,839,507		14,404,730
UnipolSai SpA		1,944,061		6,120,115

				710,108,000
NETHERLANDS — 8.77%
AEGON NV		3,888,064		30,810,095
Akzo Nobel NV		513,743		36,399,823
Altice SA^a		187,222		11,985,191
ASML Holding NV		766,304		73,492,654
Corio NV		148,648		8,005,250
Delta Lloyd NV		433,223		10,462,711
Fugro NV CVA		158,921		5,778,576
Gemalto NV^c		169,806		16,665,541
Heineken Holding NV		215,678		14,923,306
Heineken NV^c		494,179		37,689,004


Security	Shares		Value

ING Groep NV CVA^a		8,257,361	$	113,823,599
Koninklijke Ahold NV		1,996,280		34,183,507
Koninklijke DSM NV		370,090		24,773,868
Koninklijke KPN NV^a		6,874,821		22,865,178
Koninklijke Philips NV		2,081,183		63,571,554
Koninklijke Vopak NV		150,213		7,720,521
OCI NV^a		180,662		6,053,907
Randstad Holding NV		267,771		13,030,798
Reed Elsevier NV		1,497,776		34,229,311
Royal Boskalis Westminster NV CVA		187,222		10,800,235
TNT Express NV		954,764		7,153,316
Unilever NV CVA		3,491,850		145,504,099
Wolters Kluwer NV		648,746		18,013,459
Ziggo NV		322,196		15,363,159

				763,298,662
PORTUGAL — 0.65%
Banco Comercial Portugues SA Registered^a		75,713,084		10,321,982
Energias de Portugal SA		4,969,975		24,117,130
Galp Energia SGPS SA Class B		827,231		14,709,990
Jeronimo Martins SGPS SA		541,685		7,356,264

				56,505,366
SPAIN — 11.88%
Abertis Infraestructuras SA		868,623		18,317,849
Actividades de Construcciones y Servicios SA		380,726		16,075,338
Amadeus IT Holding SA Class A		816,346		30,430,740
Banco Bilbao Vizcaya Argentaria SA		12,619,518		153,092,603
Banco de Sabadell SA		7,318,900		23,098,535
Banco Popular Espanol SA		3,801,042		23,786,991
Banco Santander SA		25,755,948		257,496,378
Bankia SA^a		9,892,056		19,179,893
CaixaBank SA		3,810,189		22,975,984
Distribuidora Internacional de Alimentacion SA		1,327,912		11,208,400
Enagas SA		424,953		14,200,812
Ferrovial SA		881,078		17,977,015
Gas Natural SDG SA		751,036		23,084,494
Grifols SA		320,019		14,934,776
Iberdrola SA		10,921,716		80,346,297
Inditex SA		2,338,069		67,907,498
International Consolidated Airlines Group SA^a		2,185,708		13,116,793


SCHEDULES OF INVESTMENTS			15

Schedule of Investments (Continued)

iSHARES^® MSCI EMU ETF

August 31, 2014


Security	Shares		Value

Mapfre SA		1,985,337	$	7,460,842
Red Electrica Corporacion SA		236,372		19,954,374
Repsol SA		2,183,531		54,330,428
Telefonica SA		8,779,696		139,584,938
Zardoya Otis SA		356,970		5,191,019
Zardoya Otis SA New		17,669		256,941

				1,034,008,938

TOTAL COMMON STOCKS
(Cost: $8,432,507,407)				8,522,497,067

PREFERRED STOCKS — 1.91%

GERMANY — 1.91%
Bayerische Motoren Werke AG		117,558		11,269,796
Fuchs Petrolub SE		152,390		6,273,758
Henkel AG & Co. KGaA		383,152		40,274,096
Porsche Automobil Holding SE		328,727		29,985,201
Volkswagen AG		348,320		78,387,209

				166,190,060

TOTAL PREFERRED STOCKS
(Cost: $176,832,799)				166,190,060

SHORT-TERM INVESTMENTS — 1.19%

MONEY MARKET FUNDS — 1.19%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^e,f,g		96,863,357		96,863,357
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		6,097,814		6,097,814
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^e,f		955,702		955,702

				103,916,873

TOTAL SHORT-TERM INVESTMENTS
(Cost: $103,916,873)				103,916,873


	Value

TOTAL INVESTMENTS IN SECURITIES — 101.03%
(Cost: $8,713,257,079)	$	8,792,604,000
Other Assets, Less Liabilities — (1.03)%		(89,966,878	)

NET ASSETS — 100.00%	$	8,702,637,122

FDR — Fiduciary Depositary Receipts

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 1.

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

^e	Affiliated issuer. See Note 2.

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

^g	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


16		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GERMANY ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 92.93%

AIR FREIGHT & LOGISTICS — 2.67%
Deutsche Post AG Registered		3,909,816	$	128,158,015

				128,158,015
AIRLINES — 0.34%
Deutsche Lufthansa AG Registered		932,328		16,179,726

				16,179,726
AUTO COMPONENTS — 1.98%
Continental AG		444,360		95,113,055

				95,113,055
AUTOMOBILES — 10.46%
Bayerische Motoren Werke AG		1,337,496		156,091,058
Daimler AG Registered		3,890,496		318,952,761
Volkswagen AG		119,232		26,777,438

				501,821,257
CAPITAL MARKETS — 3.98%
Deutsche Bank AG Registered		5,572,992		191,153,040

				191,153,040
CHEMICALS — 12.01%
BASF SE		3,711,096		382,701,612
K+S AG Registered		696,072		21,693,055
Lanxess AG		369,840		22,952,230
Linde AG		749,616		148,750,965

				576,097,862
COMMERCIAL BANKS — 1.24%
Commerzbank AG^a		3,909,816		59,328,123

				59,328,123
CONSTRUCTION & ENGINEERING — 0.14%
Hochtief AG		84,456		6,692,527

				6,692,527
CONSTRUCTION MATERIALS — 0.90%
HeidelbergCement AG		569,112		43,044,012

				43,044,012
DIVERSIFIED FINANCIAL SERVICES — 1.16%
Deutsche Boerse AG		779,976		55,591,780

				55,591,780
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.11%
Deutsche Telekom AG Registered		12,588,360		188,696,231
Telefonica Deutschland Holding AG^b		1,126,632		8,587,908

				197,284,139


Security	Shares		Value

ELECTRICAL EQUIPMENT — 0.31%
Osram Licht AG^a		359,904	$	15,084,769

				15,084,769
FOOD & STAPLES RETAILING — 0.48%
METRO AG^a		655,224		23,069,627

				23,069,627
HEALTH CARE PROVIDERS & SERVICES — 2.99%
Celesio AG		204,792		6,973,091
Fresenius Medical Care AG & Co. KGaA		874,368		61,812,692
Fresenius SE & Co. KGaA		1,525,728		74,619,765

				143,405,548
HOUSEHOLD PRODUCTS — 0.94%
Henkel AG & Co. KGaA		472,512		45,055,024

				45,055,024
INDUSTRIAL CONGLOMERATES — 8.39%
Siemens AG Registered		3,203,808		402,340,210

				402,340,210
INSURANCE — 9.92%
Allianz SE Registered		1,844,232		315,313,129
Hannover Rueck SE Registered		243,984		20,314,164
Muenchener Rueckversicherungs-Gesellschaft AG Registered		699,384		140,579,513

				476,206,806
INTERNET SOFTWARE & SERVICES — 0.42%
United Internet AG Registered		470,856		20,277,820

				20,277,820
LIFE SCIENCES TOOLS & SERVICES — 0.48%
QIAGEN NV^a		944,472		22,928,003

				22,928,003
MACHINERY — 1.05%
GEA Group AG		739,128		33,520,345
MAN SE		142,416		16,930,033

				50,450,378
MEDIA — 1.85%
Axel Springer SE		159,528		9,474,776
Kabel Deutschland Holding AG		89,424		12,650,573
ProSiebenSat.1 Media AG Registered		884,304		35,544,039
RTL Group SA		156,768		15,245,515
Sky Deutschland AG^a		1,773,576		15,705,968

				88,620,871


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY ETF

August 31, 2014


Security	Shares		Value

METALS & MINING — 1.06%
ThyssenKrupp AG^a		1,828,776	$	50,887,257

				50,887,257
MULTI-UTILITIES — 4.69%
E.ON SE		8,084,592		147,276,040
RWE AG		1,977,264		77,560,600

				224,836,640
PERSONAL PRODUCTS — 0.75%
Beiersdorf AG		407,376		35,946,551

				35,946,551
PHARMACEUTICALS — 10.31%
Bayer AG Registered		3,341,256		449,132,591
Merck KGaA		522,192		45,555,076

				494,687,667
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.54%
Deutsche Wohnen AG Bearer		1,155,888		26,141,943

				26,141,943
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.11%
Infineon Technologies AG		4,555,656		53,076,291

				53,076,291
SOFTWARE — 6.05%
SAP SE		3,722,688		290,288,717

				290,288,717
TEXTILES, APPAREL & LUXURY GOODS — 1.70%
Adidas AG		845,112		63,495,887
Hugo Boss AG		128,064		17,990,355

				81,486,242
TRADING COMPANIES & DISTRIBUTORS — 0.69%
Brenntag AG		624,312		33,119,902

				33,119,902
TRANSPORTATION INFRASTRUCTURE — 0.21%
Fraport AG		149,040		10,129,881

				10,129,881

TOTAL COMMON STOCKS
(Cost: $4,433,161,375)				4,458,503,683

PREFERRED STOCKS — 6.52%

AUTOMOBILES — 4.70%
Bayerische Motoren Werke AG		219,696		21,061,340
Porsche Automobil Holding SE		618,240		56,393,453
Volkswagen AG		656,880		147,826,683

				225,281,476


Security	Shares		Value

CHEMICALS — 0.24%
Fuchs Petrolub SE		286,488	$	11,794,452

				11,794,452
HOUSEHOLD PRODUCTS — 1.58%
Henkel AG & Co. KGaA		719,808		75,660,877

				75,660,877

TOTAL PREFERRED STOCKS
(Cost: $300,727,302)				312,736,805

SHORT-TERM INVESTMENTS — 0.03%

MONEY MARKET FUNDS — 0.03%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		1,424,248		1,424,248

				1,424,248

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,424,248)				1,424,248

TOTAL INVESTMENTS IN SECURITIES — 99.48%
(Cost: $4,735,312,925)				4,772,664,736
Other Assets, Less Liabilities — 0.52%				24,769,193

NET ASSETS — 100.00%			$	4,797,433,929

^a	Non-income earning security.

^b	This security may be resold to qualified institutional buyers under Rule 144A 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.

Financial futures contracts purchased as of August 31, 2014 were as follows:


Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Unrealized Appreciation (Depreciation)
	79	DAX Index (Sept. 2014)	Eurex	$	24,559,182	$	(1,190,173)

See notes to financial statements.


18		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI JAPAN ETF

August 31, 2014


Security	Shares		Value

COMMON STOCKS — 99.76%

AIR FREIGHT & LOGISTICS — 0.29%
Yamato Holdings Co. Ltd.		2,075,000	$	42,934,134

				42,934,134
AIRLINES — 0.26%
ANA Holdings Inc.^a		6,225,000		15,154,281
Japan Airlines Co. Ltd.		415,000		23,369,592

				38,523,873
AUTO COMPONENTS — 2.75%
Aisin Seiki Co. Ltd.		1,037,700		38,407,436
Bridgestone Corp.		3,527,500		121,188,309
Denso Corp.		2,697,500		117,185,518
Koito Manufacturing Co. Ltd.		622,500		17,029,841
NGK Spark Plug Co. Ltd.		349,200		10,201,877
NHK Spring Co. Ltd.		830,000		7,941,666
NOK Corp.		622,500		13,470,472
Stanley Electric Co. Ltd.		687,300		16,295,133
Sumitomo Rubber Industries Inc.		1,037,500		14,840,689
Toyoda Gosei Co. Ltd.		415,000		7,913,703
Toyota Industries Corp.		830,000		39,908,072

				404,382,716
AUTOMOBILES — 11.01%
Daihatsu Motor Co. Ltd.		830,000		14,261,443
Fuji Heavy Industries Ltd.		3,320,000		94,453,097
Honda Motor Co. Ltd.		8,715,000		294,708,524
Isuzu Motors Ltd.		6,225,000		43,077,947
Mazda Motor Corp.		2,905,000		68,622,708
Mitsubishi Motors Corp.		3,527,500		40,169,731
Nissan Motor Co. Ltd.		13,695,000		131,696,636
Suzuki Motor Corp.		2,075,000		67,532,127
Toyota Motor Corp.		14,732,500		840,682,100
Yamaha Motor Co. Ltd.		1,452,500		26,914,978

				1,622,119,291
BEVERAGES — 0.95%
Asahi Group Holdings Ltd.		1,867,500		58,981,253
Kirin Holdings Co. Ltd.		4,357,500		58,492,889
Suntory Beverage & Food Ltd.		622,500		22,860,254

				140,334,396
BUILDING PRODUCTS — 1.20%
Asahi Glass Co. Ltd.		6,225,000		33,760,071
Daikin Industries Ltd.		1,245,000		85,928,190
LIXIL Group Corp.		1,452,500		32,186,119
TOTO Ltd.		2,075,000		25,267,123

				177,141,503


Security	Shares		Value

CAPITAL MARKETS — 1.43%
Daiwa Securities Group Inc.		8,300,000	$	67,600,038
Nomura Holdings Inc.		19,920,000		127,974,279
SBI Holdings Inc.		1,245,010		14,764,907

				210,339,224
CHEMICALS — 3.57%
Air Water Inc.		78,000		1,228,358
Asahi Kasei Corp.		6,225,000		49,998,941
Daicel Corp.		2,075,000		23,050,007
Hitachi Chemical Co. Ltd.		622,500		11,600,905
JSR Corp.		1,037,500		18,056,505
Kaneka Corp.		2,075,000		12,284,016
Kansai Paint Co. Ltd.		203,000		3,228,147
Kuraray Co. Ltd.		1,867,500		23,261,732
Mitsubishi Chemical Holdings Corp.		7,262,500		36,275,798
Mitsubishi Gas Chemical Co. Inc.		2,075,000		13,442,509
Mitsui Chemicals Inc.		4,150,000		12,264,042
Nippon Paint Co. Ltd.		800,000		19,821,918
Nitto Denko Corp.		830,000		43,543,341
Shin-Etsu Chemical Co. Ltd.		2,282,500		141,847,427
Sumitomo Chemical Co. Ltd.		8,300,000		29,801,222
Taiyo Nippon Sanso Corp.		2,075,000		18,695,673
Teijin Ltd.		4,150,000		10,186,745
Toray Industries Inc.		8,300,000		56,718,198

				525,305,484
COMMERCIAL BANKS — 9.25%
Aozora Bank Ltd.		6,225,000		21,272,320
Bank of Kyoto Ltd. (The)		2,075,000		18,276,219
Bank of Yokohama Ltd. (The)		6,291,000		34,741,750
Chiba Bank Ltd. (The)		4,150,000		29,281,898
Chugoku Bank Ltd. (The)		120,000		1,818,164
Fukuoka Financial Group Inc.		4,156,000		20,162,911
Gunma Bank Ltd. (The)		2,075,000		12,244,068
Hachijuni Bank Ltd. (The)		2,075,000		12,543,678
Hiroshima Bank Ltd. (The)		2,075,000		10,026,953
Hokuhoku Financial Group Inc.		6,225,000		12,403,860
Iyo Bank Ltd. (The)		2,075,000		21,072,580
Joyo Bank Ltd. (The)		4,150,000		21,571,931
Mitsubishi UFJ Financial Group Inc.		68,475,080		394,299,397
Mizuho Financial Group Inc.		123,462,580		235,195,116
Resona Holdings Inc.		11,620,000		63,108,283
Seven Bank Ltd.		3,320,000		13,486,451


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2014


Security	Shares		Value

Shinsei Bank Ltd.		8,300,000	$	17,497,233
Shizuoka Bank Ltd. (The)		2,831,000		29,404,139
Sumitomo Mitsui Financial Group Inc.		6,847,500		276,872,732
Sumitomo Mitsui Trust Holdings Inc.		18,675,320		76,743,458
Suruga Bank Ltd.		2,075,000		39,468,643
Yamaguchi Financial Group Inc.		73,000		718,862

				1,362,210,646
COMMERCIAL SERVICES & SUPPLIES — 0.86%
Dai Nippon Printing Co. Ltd.		2,075,000		21,801,632
PARK24 Co. Ltd.		622,500		10,845,887
Secom Co. Ltd.		1,037,500		63,507,364
Toppan Printing Co. Ltd.		4,150,000		30,520,287

				126,675,170
COMPUTERS & PERIPHERALS — 2.60%
Brother Industries Ltd.		1,245,000		24,172,547
Canon Inc.		6,225,050		203,676,613
Konica Minolta Holdings Inc.		3,112,500		34,245,440
NEC Corp.		13,790,000		49,114,887
Ricoh Co. Ltd.		3,735,000		40,465,346
Seiko Epson Corp.		622,500		31,578,909

				383,253,742
CONSTRUCTION & ENGINEERING — 1.03%
Chiyoda Corp.		235,000		2,574,289
JGC Corp.		860,000		24,926,217
Kajima Corp.		4,150,000		21,252,346
Obayashi Corp.		4,150,000		31,718,727
Shimizu Corp.		4,150,000		34,355,297
Taisei Corp.		6,225,000		37,151,658

				151,978,534
CONSTRUCTION MATERIALS — 0.18%
Taiheiyo Cement Corp.		6,225,000		26,066,083

				26,066,083
CONSUMER FINANCE — 0.26%
Acom Co. Ltd.^b		2,282,500		7,909,708
AEON Financial Service Co. Ltd.		622,570		14,466,805
Credit Saison Co. Ltd.		830,000		16,514,511

				38,891,024
CONTAINERS & PACKAGING — 0.06%
Toyo Seikan Group Holdings Ltd.		622,500		8,520,913

				8,520,913


Security	Shares		Value

DIVERSIFIED CONSUMER SERVICES — 0.10%
Benesse Holdings Inc.		415,000	$	14,720,845

				14,720,845
DIVERSIFIED FINANCIAL SERVICES — 1.08%
Japan Exchange Group Inc.		1,452,500		34,507,099
Mitsubishi UFJ Lease & Finance Co. Ltd.		3,320,000		17,736,921
ORIX Corp.		7,055,000		106,621,264

				158,865,284
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.95%
Nippon Telegraph and Telephone Corp.		2,075,500		139,452,183

				139,452,183
ELECTRIC UTILITIES — 1.35%
Chubu Electric Power Co. Inc.^b		3,527,500		40,797,913
Chugoku Electric Power Co. Inc. (The)		1,660,000		21,923,473
Hokuriku Electric Power Co.		830,000		10,761,996
Kansai Electric Power Co. Inc. (The)^b		3,942,500		36,117,604
Kyushu Electric Power Co. Inc.^b		2,282,500		23,201,810
Shikoku Electric Power Co. Inc.^b		830,000		10,202,724
Tohoku Electric Power Co. Inc.		2,490,000		27,540,165
Tokyo Electric Power Co. Inc.^b		7,885,000		28,538,865

				199,084,550
ELECTRICAL EQUIPMENT — 1.93%
Fuji Electric Co. Ltd.		2,075,000		10,046,927
Mabuchi Motor Co. Ltd.		207,500		17,657,025
Mitsubishi Electric Corp.		10,375,000		130,030,803
Nidec Corp.		1,037,500		66,243,803
Sumitomo Electric Industries Ltd.		4,150,000		60,840,834

				284,819,392
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 5.66%
Citizen Holdings Co. Ltd.		1,452,500		10,332,555
FUJIFILM Holdings Corp.		2,490,000		75,154,209
Hamamatsu Photonics K.K.		415,000		19,754,296
Hirose Electric Co. Ltd.		207,500		26,825,095
Hitachi High-Technologies Corp.		415,000		11,608,894
Hitachi Ltd.		26,975,000		204,224,262
Hoya Corp.		2,282,500		73,878,869


20		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2014


Security	Shares		Value

IBIDEN Co. Ltd.		622,500	$	12,242,071
Japan Display Inc.^b		2,075,000		10,526,303
Keyence Corp.		216,926		92,974,252
Kyocera Corp.		1,660,000		77,730,856
Murata Manufacturing Co. Ltd.		1,037,500		99,210,906
Nippon Electric Glass Co. Ltd.		2,075,500		10,448,924
Omron Corp.		1,037,500		44,991,457
Shimadzu Corp.		236,000		2,069,558
TDK Corp.		622,500		31,039,611
Yaskawa Electric Corp.		1,452,500		18,693,676
Yokogawa Electric Corp.		1,037,500		12,014,367

				833,720,161
FOOD & STAPLES RETAILING — 1.70%
AEON Co. Ltd.		3,320,000		35,921,259
FamilyMart Co. Ltd.		415,000		17,417,336
Lawson Inc.		415,000		29,841,171
Seven & I Holdings Co. Ltd.		4,150,080		166,686,324

				249,866,090
FOOD PRODUCTS — 1.40%
Ajinomoto Co. Inc.		4,150,000		67,572,075
Calbee Inc.		207,800		7,181,037
Kikkoman Corp.		1,501,000		32,914,068
Meiji Holdings Co. Ltd.		415,028		34,237,762
NH Foods Ltd.		94,000		1,992,472
Nisshin Seifun Group Inc.		1,076,750		12,427,427
Nissin Foods Holdings Co. Ltd.		415,000		23,809,020
Toyo Suisan Kaisha Ltd.		103,000		3,227,271
Yakult Honsha Co. Ltd.		415,000		22,810,319

				206,171,451
GAS UTILITIES — 0.85%
Osaka Gas Co. Ltd.		10,375,000		42,744,381
Toho Gas Co. Ltd.		2,075,000		11,964,432
Tokyo Gas Co. Ltd.		12,450,000		70,815,854

				125,524,667
HEALTH CARE EQUIPMENT & SUPPLIES — 0.81%
Olympus Corp.^b		1,245,300		44,532,796
Sysmex Corp.		830,000		32,158,155
Terumo Corp.		1,660,000		41,833,566

				118,524,517
HEALTH CARE PROVIDERS & SERVICES — 0.38%
Alfresa Holdings Corp.		207,500		12,343,938
Medipal Holdings Corp.		830,000		10,754,007
Miraca Holdings Inc.		415,000		19,334,841
Suzuken Co. Ltd.		415,000		13,841,989

				56,274,775


Security	Shares		Value

HEALTH CARE TECHNOLOGY — 0.10%
M3 Inc.		830,000	$	14,533,089

				14,533,089
HOTELS, RESTAURANTS & LEISURE — 0.35%
McDonald’s Holdings Co. (Japan) Ltd.^a		415,000		10,246,667
Oriental Land Co. Ltd.		215,500		41,996,414

				52,243,081
HOUSEHOLD DURABLES — 2.84%
Casio Computer Co. Ltd.^a		1,245,000		21,715,743
Iida Group Holdings Co. Ltd.		830,080		11,905,657
Nikon Corp.^a		1,867,500		27,153,668
Panasonic Corp.		12,035,015		147,244,589
Rinnai Corp.		207,500		18,436,011
Sekisui Chemical Co. Ltd.		2,082,000		24,650,912
Sekisui House Ltd.		2,697,500		33,963,806
Sharp Corp.^a,b		8,300,000		26,205,901
Sony Corp.		5,602,500		107,320,354

				418,596,641
HOUSEHOLD PRODUCTS — 0.28%
Unicharm Corp.		622,500		40,932,738

				40,932,738
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.14%
Electric Power Development Co. Ltd.		622,500		20,433,412

				20,433,412
INDUSTRIAL CONGLOMERATES — 0.71%
Seibu Holdings Inc.		622,500		13,404,558
Toshiba Corp.		20,750,000		91,600,808

				105,005,366
INSURANCE — 2.41%
Dai-ichi Life Insurance Co. Ltd. (The)		5,602,500		80,382,406
MS&AD Insurance Group Holdings Inc.		2,726,140		61,576,623
NKSJ Holdings Inc.		1,787,250		43,233,954
Sony Financial Holdings Inc.		1,037,500		16,638,350
T&D Holdings Inc.		3,112,500		38,664,689
Tokio Marine Holdings Inc.		3,735,000		114,025,629

				354,521,651
INTERNET & CATALOG RETAIL — 0.38%
Rakuten Inc.		4,357,500		56,458,536

				56,458,536


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2014


Security	Shares		Value

INTERNET SOFTWARE & SERVICES — 0.39%
Dena Co. Ltd.^a		507,200	$	6,327,489
Gree Inc.^a		622,500		4,889,638
Kakaku.com Inc.		830,000		13,031,044
Yahoo! Japan Corp.		8,092,500		32,639,529

				56,887,700
IT SERVICES — 0.83%
Fujitsu Ltd.		10,375,000		71,277,254
ITOCHU Techno-Solutions Corp.		207,500		9,237,979
Nomura Research Institute Ltd.		622,500		19,684,387
NTT Data Corp.		622,500		22,350,917

				122,550,537
LEISURE EQUIPMENT & PRODUCTS — 0.80%
Bandai Namco Holdings Inc.		1,037,598		29,024,977
Sankyo Co. Ltd.		207,500		7,959,643
Sega Sammy Holdings Inc.		1,037,500		19,804,231
Shimano Inc.		415,000		49,575,492
Yamaha Corp.		830,000		11,920,489

				118,284,832
MACHINERY — 5.72%
Amada Co. Ltd.		2,075,000		19,574,530
FANUC Corp.		1,037,500		173,773,885
Hino Motors Ltd.		1,660,000		23,569,332
Hitachi Construction Machinery Co. Ltd.		622,500		12,248,063
IHI Corp.		6,225,000		29,361,794
JTEKT Corp.		1,245,000		19,822,207
Kawasaki Heavy Industries Ltd.		8,300,000		30,919,767
Komatsu Ltd.		5,187,500		117,596,982
Kubota Corp.		6,225,000		89,044,135
Kurita Water Industries Ltd.		622,500		13,991,794
Makita Corp.		622,500		34,814,699
Mitsubishi Heavy Industries Ltd.		16,600,000		102,314,867
Nabtesco Corp.		415,000		9,567,551
NGK Insulators Ltd.		2,075,000		52,331,906
NSK Ltd.		2,075,000		27,604,081
SMC Corp.		229,500		60,078,476
Sumitomo Heavy Industries Ltd.		2,075,000		10,706,069
THK Co. Ltd.		623,100		14,773,021

				842,093,159


Security	Shares		Value

MARINE — 0.32%
Mitsui O.S.K. Lines Ltd.		6,225,000	$	22,830,293
Nippon Yusen K.K.		8,300,000		24,448,188

				47,278,481
MEDIA — 0.49%
Dentsu Inc.		1,037,500		42,195,095
Hakuhodo DY Holdings Inc.		1,452,500		15,044,424
Toho Co. Ltd.		622,500		14,435,217

				71,674,736
METALS & MINING — 1.94%
Daido Steel Co. Ltd.		2,075,000		9,128,123
Hitachi Metals Ltd.		242,000		4,127,872
JFE Holdings Inc.		2,697,550		54,633,924
Kobe Steel Ltd.		18,675,000		30,380,469
Maruichi Steel Tube Ltd.		207,500		5,520,816
Mitsubishi Materials Corp.		6,225,000		21,032,632
Nippon Steel & Sumitomo Metal Corp.		41,500,705		117,608,967
Sumitomo Metal Mining Co. Ltd.		2,363,000		35,905,044
Yamato Kogyo Co. Ltd.		207,500		6,871,059

				285,208,906
MULTILINE RETAIL — 0.51%
Don Quijote Holdings Co. Ltd.		207,500		11,005,679
Isetan Mitsukoshi Holdings Ltd.		1,867,560		22,471,483
J. Front Retailing Co. Ltd.		1,037,500		13,162,872
Marui Group Co. Ltd.		1,245,000		10,474,371
Takashimaya Co. Ltd.		2,075,000		17,756,895

				74,871,300
OIL, GAS & CONSUMABLE FUELS — 1.22%
Idemitsu Kosan Co. Ltd.		830,000		18,232,276
INPEX Corp.		4,772,500		68,450,931
JX Holdings Inc.		12,242,595		63,024,881
Showa Shell Sekiyu K.K.		1,037,500		11,145,498
TonenGeneral Sekiyu K.K.		2,075,000		18,955,335

				179,808,921
PAPER & FOREST PRODUCTS — 0.11%
Oji Holdings Corp.		4,150,000		16,898,012

				16,898,012
PERSONAL PRODUCTS — 1.11%
Kao Corp.		2,905,000		125,416,807
Shiseido Co. Ltd.		2,075,000		38,350,099

				163,766,906


22		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2014


Security	Shares		Value

PHARMACEUTICALS — 5.28%
Astellas Pharma Inc.		11,827,550	$	170,550,800
Chugai Pharmaceutical Co. Ltd.		1,245,000		39,488,617
Daiichi Sankyo Co. Ltd.		3,527,569		62,412,012
Eisai Co. Ltd.		1,452,500		60,757,941
Hisamitsu Pharmaceutical Co. Inc.		207,500		8,249,266
Kyowa Hakko Kirin Co. Ltd.		2,075,000		28,163,354
Mitsubishi Tanabe Pharma Corp.		1,037,500		15,899,312
Ono Pharmaceutical Co. Ltd.		415,000		37,071,762
Otsuka Holdings Co. Ltd.		2,075,000		75,541,705
Santen Pharmaceutical Co. Ltd.		415,000		23,968,812
Shionogi & Co. Ltd.		1,660,000		39,149,059
Sumitomo Dainippon Pharma Co. Ltd.		830,000		11,289,310
Taisho Pharmaceutical Holdings Co. Ltd.		207,500		15,759,494
Takeda Pharmaceutical Co. Ltd.		4,150,000		189,753,092

				778,054,536
REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.04%
Japan Prime Realty Investment Corp.		4,150		15,280,117
Japan Real Estate Investment Corp.		6,225		34,275,401
Japan Retail Fund Investment Corp.		10,375		21,791,645
Nippon Building Fund Inc.		8,300		46,259,806
Nippon Prologis REIT Inc.		6,225		15,136,305
United Urban Investment Corp.		12,450		20,109,833

				152,853,107
REAL ESTATE MANAGEMENT & DEVELOPMENT — 3.94%
AEON Mall Co. Ltd.		622,500		13,584,324
Daito Trust Construction Co. Ltd.		415,000		51,393,127
Daiwa House Industry Co. Ltd.		2,917,800		55,260,832
Hulic Co. Ltd.		1,452,500		16,498,532
Mitsubishi Estate Co. Ltd.		6,531,000		150,976,527
Mitsui Fudosan Co. Ltd.		4,856,000		154,956,346
Nomura Real Estate Holdings Inc.		622,500		11,247,365


Security	Shares		Value

NTT Urban Development Corp.		622,500	$	7,142,706
Sumitomo Realty & Development Co. Ltd.		2,075,000		80,475,285
Tokyo Tatemono Co. Ltd.		2,075,000		17,776,868
Tokyu Fudosan Holdings Corp.		2,697,500		20,721,038

				580,032,950
ROAD & RAIL — 3.77%
Central Japan Railway Co.		830,000		116,488,425
East Japan Railway Co.		1,867,500		145,304,928
Hankyu Hanshin Holdings Inc.		6,225,000		36,732,204
Keikyu Corp.		2,079,000		18,311,450
Keio Corp.		4,150,000		32,078,260
Keisei Electric Railway Co. Ltd.		270,000		2,796,554
Kintetsu Corp.		8,567,000		30,100,159
Nagoya Railroad Co. Ltd.		4,150,000		17,177,648
Nippon Express Co. Ltd.		4,150,000		19,015,257
Odakyu Electric Railway Co. Ltd.		2,240,000		22,122,924
Tobu Railway Co. Ltd.		6,225,000		32,657,506
Tokyu Corp.		6,225,000		43,263,705
West Japan Railway Co.		830,000		39,312,846

				555,361,866
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.74%
Advantest Corp.		1,037,500		12,064,302
Rohm Co. Ltd.		622,500		39,788,227
Tokyo Electron Ltd.		830,052		56,977,435

				108,829,964
SOFTWARE — 0.88%
GungHo Online Entertainment Inc.^a		2,282,500		12,216,104
Konami Corp.		622,500		14,435,217
Nexon Co. Ltd.		622,500		5,440,920
Nintendo Co. Ltd.		622,500		69,090,100
Oracle Corp. Japan		207,500		8,468,980
Trend Micro Inc.		622,500		20,073,880

				129,725,201
SPECIALTY RETAIL — 1.20%
ABC-MART Inc.		207,500		10,646,147
Fast Retailing Co. Ltd.		257,200		80,587,766
Nitori Holdings Co. Ltd.		415,000		24,927,564
Sanrio Co. Ltd.^a		207,500		5,934,278
Shimamura Co. Ltd.		207,500		18,735,621


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2014


Security	Shares		Value

USS Co. Ltd.		1,245,000	$	20,553,256
Yamada Denki Co. Ltd.		4,772,500		15,344,034

				176,728,666
TEXTILES, APPAREL & LUXURY GOODS — 0.12%
ASICS Corp.		830,000		17,025,846

				17,025,846
TOBACCO — 1.40%
Japan Tobacco Inc.		6,017,500		206,443,375

				206,443,375
TRADING COMPANIES & DISTRIBUTORS — 3.97%
ITOCHU Corp.		8,300,000		105,662,512
Marubeni Corp.		8,300,000		60,001,925
Mitsubishi Corp.		7,677,500		159,004,103
Mitsui & Co. Ltd.		9,337,500		152,441,642
Sumitomo Corp.		6,225,000		80,475,285
Toyota Tsusho Corp.		1,037,500		27,414,328

				584,999,795
TRANSPORTATION INFRASTRUCTURE — 0.16%
Kamigumi Co. Ltd.		2,075,000		19,334,841
Mitsubishi Logistics Corp.		242,000		3,631,689

				22,966,530
WIRELESS TELECOMMUNICATION SERVICES — 4.70%
KDDI Corp.		3,112,500		179,736,127
NTT DOCOMO Inc.		8,300,000		143,693,026
SoftBank Corp.		5,113,100		369,436,671

				692,865,824

TOTAL COMMON STOCKS
(Cost: $15,294,865,365)				14,693,636,312

SHORT-TERM INVESTMENTS — 0.48%

MONEY MARKET FUNDS — 0.48%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%^c,d,e		65,133,106		65,133,106
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		4,100,307		4,100,307
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		1,483,549		1,483,549

				70,716,962

TOTAL SHORT-TERM INVESTMENTS
(Cost: $70,716,962)				70,716,962


	Value

TOTAL INVESTMENTS IN SECURITIES — 100.24%
(Cost: $15,365,582,327)	$	14,764,353,274
Other Assets, Less Liabilities — (0.24)%		(35,164,571	)

NET ASSETS — 100.00%	$	14,729,188,703

^a	All or a portion of this security represents a security on loan. See Note 1.

^b	Non-income earning security.

^c	Affiliated issuer. See Note 2.

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

^e	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

Financial futures contracts purchased as of August 31, 2014 were as follows:


Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Unrealized Appreciation (Depreciation)
	277	TOPIX Index (Sept. 2014)	Tokyo Stock	$	34,023,391	$	906,579

See notes to financial statements.


24		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2014


	iShares MSCI EMU ETF			iShares MSCI Germany ETF			iShares MSCI Japan ETF

ASSETS
Investments, at cost:
Unaffiliated	$	8,609,340,206		$	4,733,888,677		$	15,294,865,365
Affiliated (Note 2)		103,916,873			1,424,248			70,716,962

Total cost of investments	$	8,713,257,079		$	4,735,312,925		$	15,365,582,327

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	8,688,687,127		$	4,771,240,488		$	14,693,636,312
Affiliated (Note 2)		103,916,873			1,424,248			70,716,962

Total fair value of investments		8,792,604,000			4,772,664,736			14,764,353,274
Foreign currency, at value^b		3,626,885			7,773,893			29,114,378
Foreign currency pledged to broker, at value^b		—			3,128,185			—
Receivables:
Investment securities sold		22,558,626			6,151,067			14,479,048
Dividends and interest		12,510,237			16,970,845			10,962,972
Futures variation margin		—			—			906,579

Total Assets		8,831,299,748			4,806,688,726			14,819,816,251


LIABILITIES
Payables:
Investment securities purchased		21,964,754			6,210,170			13,401,207
Due to broker for foreign currency pledged for futures, at value^b		—			—			167,310
Collateral for securities on loan (Note 1)		102,961,171			—			69,233,413
Capital shares redeemed		—			—			1,793,749
Futures variation margin		—			1,190,173			—
Securities related to in-kind transactions (Note 4)		109,341			—			—
Investment advisory fees (Note 2)		3,627,360			1,854,454			6,031,869

Total Liabilities		128,662,626			9,254,797			90,627,548


NET ASSETS	$	8,702,637,122		$	4,797,433,929		$	14,729,188,703


Net assets consist of:
Paid-in capital	$	8,977,029,980		$	4,982,282,108		$	16,376,094,943
Undistributed (distributions in excess of) net investment income		14,544,730			—			(28,649,511	)
Accumulated net realized loss		(367,769,055	)		(220,284,351	)		(1,017,265,627	)
Net unrealized appreciation (depreciation)		78,831,467			35,436,172			(600,991,102	)

NET ASSETS	$	8,702,637,122		$	4,797,433,929		$	14,729,188,703


Shares outstanding^c		217,700,000			165,600,000			1,245,000,000


Net asset value per share	$	39.98		$	28.97		$	11.83

^a	Securities on loan with values of $97,713,104, $ — and $65,578,777, respectively. See Note 1.

^b	Cost of foreign currency including currency at broker, if any: $3,685,171, $10,951,325 and $29,459,603, respectively.

^c	$0.001 par value, number of shares authorized: 1 billion, 382.2 million and 2.1246 billion, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			25

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2014


	iShares MSCI EMU ETF			iShares MSCI Germany ETF			iShares MSCI Japan ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	295,418,272		$	135,802,760		$	239,369,752
Interest — affiliated (Note 2)		646			248			1,123
Securities lending income — affiliated (Note 2)		2,246,562			345,427			3,275,077

Total investment income		297,665,480			136,148,435			242,645,952


EXPENSES
Investment advisory fees (Note 2)		42,364,200			26,930,838			64,952,270

Total expenses		42,364,200			26,930,838			64,952,270

Net investment income		255,301,280			109,217,597			177,693,682


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(157,461,866	)		(62,909,047	)		(155,435,828	)
In-kind redemptions — unaffiliated		430,455,814			561,178,992			283,190,852
Futures contracts		—			5,245,994			13,313,282
Foreign currency transactions		(780,006	)		13,873			(4,099,999	)

Net realized gain		272,213,942			503,529,812			136,968,307

Net change in unrealized appreciation/depreciation on:
Investments		323,975,354			182,699,456			664,990,651
Futures contracts		—			(806,724	)		1,007,675
Translation of assets and liabilities in foreign currencies		(521,910	)		(651,553	)		(403,909	)

Net change in unrealized appreciation/depreciation		323,453,444			181,241,179			665,594,417

Net realized and unrealized gain		595,667,386			684,770,991			802,562,724

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	850,968,666		$	793,988,588		$	980,256,406

^a	Net of foreign withholding tax of $37,822,549, $20,734,916 and $23,740,348, respectively.

See notes to financial statements.


26		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI EMU ETF						iShares MSCI Germany ETF
	Year ended August 31, 2014			Year ended August 31, 2013			Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	255,301,280		$	56,484,613		$	109,217,597		$	69,681,145
Net realized gain		272,213,942			59,795,938			503,529,812			181,952,897
Net change in unrealized appreciation/depreciation		323,453,444			153,686,966			181,241,179			397,729,283

Net increase in net assets resulting from operations		850,968,666			269,967,517			793,988,588			649,363,325


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(243,559,586	)		(54,004,208	)		(111,913,888	)		(70,323,492	)

Total distributions to shareholders		(243,559,586	)		(54,004,208	)		(111,913,888	)		(70,323,492	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		6,832,263,291			3,656,727,115			1,689,588,472			2,897,813,848
Cost of shares redeemed		(2,277,014,968	)		(1,126,936,712	)		(2,230,103,855	)		(1,618,008,137	)

Net increase (decrease) in net assets from capital share transactions		4,555,248,323			2,529,790,403			(540,515,383	)		1,279,805,711

INCREASE IN NET ASSETS		5,162,657,403			2,745,753,712			141,559,317			1,858,845,544

NET ASSETS
Beginning of year		3,539,979,719			794,226,007			4,655,874,612			2,797,029,068

End of year	$	8,702,637,122		$	3,539,979,719		$	4,797,433,929		$	4,655,874,612

Undistributed net investment income included in net assets at end of year	$	14,544,730		$	3,542,748		$	—		$	—


SHARES ISSUED AND REDEEMED
Shares sold		172,200,000			108,500,000			57,000,000			116,100,000
Shares redeemed		(56,700,000	)		(33,600,000	)		(73,200,000	)		(65,400,000	)

Net increase (decrease) in shares outstanding		115,500,000			74,900,000			(16,200,000	)		50,700,000

See notes to financial statements.


FINANCIAL STATEMENTS			27

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Japan ETF
	Year ended August 31, 2014			Year ended August 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	177,693,682		$	88,231,088
Net realized gain		136,968,307			326,567,847
Net change in unrealized appreciation/depreciation		665,594,417			632,581,952

Net increase in net assets resulting from operations		980,256,406			1,047,380,887


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(199,951,249	)		(94,344,922	)

Total distributions to shareholders		(199,951,249	)		(94,344,922	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		5,400,567,672			9,039,143,715
Cost of shares redeemed		(1,913,626,119	)		(4,159,272,055	)

Net increase in net assets from capital share transactions		3,486,941,553			4,879,871,660

INCREASE IN NET ASSETS		4,267,246,710			5,832,907,625

NET ASSETS
Beginning of year		10,461,941,993			4,629,034,368

End of year	$	14,729,188,703		$	10,461,941,993

Distributions in excess of net investment income included in net assets at end of year	$	(28,649,511	)	$	(6,610,516	)


SHARES ISSUED AND REDEEMED
Shares sold		457,800,000			831,000,000
Shares redeemed		(166,800,000	)		(390,000,000	)

Net increase in shares outstanding		291,000,000			441,000,000

See notes to financial statements.


28		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI EMU ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	34.64		$	29.09		$	31.55		$	30.75		$	35.64

Income from investment operations:
Net investment income^a		1.18			0.92			1.02			1.23			0.80
Net realized and unrealized gain (loss)^b		5.10			5.55			(2.38	)		0.71			(4.76	)

Total from investment operations		6.28			6.47			(1.36	)		1.94			(3.96	)

Less distributions from:
Net investment income		(0.94	)		(0.92	)		(1.10	)		(1.14	)		(0.93	)

Total distributions		(0.94	)		(0.92	)		(1.10	)		(1.14	)		(0.93	)

Net asset value, end of year	$	39.98		$	34.64		$	29.09		$	31.55		$	30.75


Total return		18.02	%		22.43	%		(3.99	)%		5.78	%		(11.19	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	8,702,637		$	3,539,980		$	794,226		$	738,233		$	823,972
Ratio of expenses to average net assets		0.48	%		0.50	%		0.53	%		0.52	%		0.54	%
Ratio of net investment income to average net assets		2.89	%		2.74	%		3.55	%		3.38	%		2.29	%
Portfolio turnover rate^c		7	%		5	%		7	%		8	%		5	%

^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	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			29

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Germany ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	25.61		$	21.34		$	21.02		$	19.45		$	20.86

Income from investment operations:
Net investment income^a		0.59			0.46			0.56			0.86			0.38
Net realized and unrealized gain (loss)^b		3.40			4.24			0.34			1.38			(1.49	)

Total from investment operations		3.99			4.70			0.90			2.24			(1.11	)

Less distributions from:
Net investment income		(0.63	)		(0.43	)		(0.58	)		(0.67	)		(0.30	)

Total distributions		(0.63	)		(0.43	)		(0.58	)		(0.67	)		(0.30	)

Net asset value, end of year	$	28.97		$	25.61		$	21.34		$	21.02		$	19.45


Total return		15.41	%		22.11	%		4.55	%		10.84	%		(5.35	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	4,797,434		$	4,655,875		$	2,797,029		$	2,768,171		$	1,487,881
Ratio of expenses to average net assets		0.48	%		0.51	%		0.53	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		1.95	%		1.88	%		2.72	%		3.45	%		1.80	%
Portfolio turnover rate^c		6	%		4	%		4	%		13	%		5	%

^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	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.


30		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Japan ETF
	Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012			Year ended Aug. 31, 2011			Year ended Aug. 31, 2010
Net asset value, beginning of year	$	10.97		$	9.02		$	9.80		$	9.43		$	10.24

Income from investment operations:
Net investment income^a		0.15			0.13			0.18			0.16			0.12
Net realized and unrealized gain (loss)^b		0.88			1.97			(0.77	)		0.37			(0.77	)

Total from investment operations		1.03			2.10			(0.59	)		0.53			(0.65	)

Less distributions from:
Net investment income		(0.17	)		(0.15	)		(0.19	)		(0.16	)		(0.16	)

Total distributions		(0.17	)		(0.15	)		(0.19	)		(0.16	)		(0.16	)

Net asset value, end of year	$	11.83		$	10.97		$	9.02		$	9.80		$	9.43


Total return		9.39	%		23.46	%		(5.96	)%		5.54	%		(6.41	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	14,729,189		$	10,461,942		$	4,629,034		$	7,194,509		$	3,942,769
Ratio of expenses to average net assets		0.48	%		0.50	%		0.53	%		0.51	%		0.54	%
Ratio of net investment income to average net assets		1.31	%		1.18	%		1.95	%		1.53	%		1.20	%
Portfolio turnover rate^c		2	%		4	%		3	%		4	%		5	%

^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	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			31

Notes to Financial Statements

iSHARES^®, INC.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):


iShares ETF		Diversification Classification
MSCI EMU		Diversified
MSCI Germany		Non-diversified
MSCI Japan		Diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).


32		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

Financial futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.


NOTES TO FINANCIAL STATEMENTS			33

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1			Level 2		Level 3		Total
MSCI EMU
Assets:
Common Stocks	$	8,522,240,117		$	256,941	$	9	$	8,522,497,067
Preferred Stocks		166,190,060			—		—		166,190,060
Money Market Funds		103,916,873			—		—		103,916,873

	$	8,792,347,050		$	256,941	$	9	$	8,792,604,000


MSCI Germany
Assets:
Common Stocks	$	4,458,503,683		$	—	$	—	$	4,458,503,683
Preferred Stocks		312,736,805			—		—		312,736,805
Money Market Funds		1,424,248			—		—		1,424,248

	$	4,772,664,736		$	—	$	—	$	4,772,664,736

Liabilities:
Futures Contracts^a	$	(1,190,173	)	$	—	$	—	$	(1,190,173	)


MSCI Japan
Assets:
Common Stocks	$	14,693,636,312		$	—	$	—	$	14,693,636,312
Money Market Funds		70,716,962			—		—		70,716,962
Futures Contracts^a		906,579			—		—		906,579

	$	14,765,259,853		$	—	$	—	$	14,765,259,853

Shown at the unrealized appreciation (depreciation) on the contracts.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION


34		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			35

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of each Fund’s securities lending agreements which are subject to offset under an MSLA as of August 31, 2014:


iShares ETF	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI EMU	$	97,713,104	$	97,713,104	$	—
MSCI Japan		65,578,777		65,578,777		—

RECENT ACCOUNTING STANDARD

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

For its investment advisory services to each of the iShares MSCI EMU, iShares MSCI Germany and iShares MSCI Japan ETFs, 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 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, up to and including $72 billion
	0.36		Over $72 billion^a

Breakpoint level was added effective July 1, 2014.


36		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2014, each Fund paid to BTC the following amounts in total for securities lending agent services and collateral investment fees:


iShares ETF	Fees Paid to BTC
MSCI EMU	$	813,389
MSCI Germany		155,217
MSCI Japan		1,317,838

Prior to January 1, 2014, each Fund retained 65% of securities lending income and paid no collateral investment fees.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

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


NOTES TO FINANCIAL STATEMENTS			37

Notes to Financial Statements (Continued)

iSHARES^®, INC.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2014 were as follows:


iShares ETF	Purchases		Sales
MSCI EMU	$	606,642,740	$	579,892,004
MSCI Germany		347,536,959		385,373,160
MSCI Japan		333,832,396		288,411,799

In-kind transactions (see Note 4) for the year ended August 31, 2014 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI EMU	$	6,790,718,089	$	2,259,100,617
MSCI Germany		1,679,504,170		2,178,661,881
MSCI Japan		5,277,535,787		1,859,445,968

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FINANCIAL FUTURES CONTRACTS*


38		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.


Assets
	iShares MSCI Germany ETF		iShares MSCI Japan ETF
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation^a	$	—	$	906,579

Represents cumulative appreciation of futures contracts as reported in the schedules of investments.


Liabilities
	iShares MSCI Germany ETF		iShares MSCI Japan ETF
Equity contracts:
Variation margin / Net assets consist of – net unrealized depreciation^b	$	1,190,173	$	—

Represents cumulative depreciation of futures contracts as reported in the schedules of investments.


	Net Realized Gain (Loss)
	iShares MSCI Germany ETF		iShares MSCI Japan ETF
Equity contracts:
Futures contracts	$	5,245,994	$	13,313,282


	Net Change in Unrealized Appreciation/Depreciation
	iShares MSCI Germany ETF			iShares MSCI Japan ETF
Equity contracts:
Futures contracts	$	(806,724	)	$	1,007,675


NOTES TO FINANCIAL STATEMENTS			39

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the average quarter-end balances of open futures contracts for the year ended August 31, 2014:


	iShares MSCI Germany ETF		iShares MSCI Japan ETF
Average number of contracts purchased		89		590
Average value of contracts purchased	$	27,994,964	$	70,684,552

6.	*MARKET AND CREDIT RISK*

MARKET RISK

The iShares MSCI Germany ETF and iShares MSCI Japan ETF each invests all or substantially all of its assets in issuers located in a single country. When a fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.


40		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

CREDIT RISK

7.	*INCOME TAX INFORMATION*


iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI EMU	$	397,763,659	$	(739,712	)	$	(397,023,947	)
MSCI Germany		518,307,370		2,696,291			(521,003,661	)
MSCI Japan		182,351,676		218,572			(182,570,248	)

The tax character of distributions paid during the years ended August 31, 2014 and August 31, 2013 was as follows:


iShares ETF	2014		2013
MSCI EMU
Ordinary income	$	243,559,586	$	54,004,208

MSCI Germany
Ordinary income	$	111,913,888	$	70,323,492

MSCI Japan
Ordinary income	$	199,951,249	$	94,344,922


NOTES TO FINANCIAL STATEMENTS			41

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2014, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a			Qualified Late-Year Losses ^b			Total
MSCI EMU	$	17,072,939	$	(178,341,919	)	$	(97,919,028	)	$	(15,204,850	)	$	(274,392,858	)
MSCI Germany		—		(117,984,210	)		(61,540,149	)		(5,323,820	)		(184,848,179	)
MSCI Japan		2,958,257		(788,481,761	)		(802,216,526	)		(59,166,210	)		(1,646,906,240	)

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of August 31, 2014, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


iShares ETF	Non- Expiring^a		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Expiring 2019		Total
MSCI EMU	$	53,431,438	$	—	$	—	$	26,644,200	$	68,035,542	$	30,230,739	$	178,341,919
MSCI Germany		21,864,809		4,227,713		3,394,735		27,790,050		28,490,949		32,215,954		117,984,210
MSCI Japan		287,119,620		27,817,841		44,443,527		116,295,478		173,577,101		139,228,194		788,481,761

Must be utilized prior to losses subject to expiration.

As of August 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI EMU	$	8,890,007,574	$	392,054,030	$	(489,457,604	)	$	(97,403,574	)
MSCI Germany		4,833,479,419		317,979,110		(378,793,793	)		(60,814,683	)
MSCI Japan		15,566,807,751		898,607,379		(1,701,061,856	)		(802,454,477	)

8.	*SUBSEQUENT EVENTS*


42		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

iShares, Inc.:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI EMU ETF, iShares MSCI Germany ETF and iShares MSCI Japan ETF (the “Funds”) at August 31, 2014, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2014


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			43

Tax Information (Unaudited)

iSHARES^®, INC.


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI EMU	$	333,240,650	$	37,818,554
MSCI Germany		156,537,676		20,732,930
MSCI Japan		263,110,100		23,710,513


iShares ETF	Qualified Dividend Income
MSCI EMU	$	281,378,140
MSCI Germany		132,646,818
MSCI Japan		223,661,762


44		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI EMU ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			45

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


46		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that the revisions of the Advisory Contract to provide additional breakpoints had been subject to further negotiation after receipt of management’s proposal, and that at the request of the Board, management had modified its initial proposal regarding adding additional breakpoints to the Fund. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rate reflects appropriate sharing of potential economies of scale with the Fund’s shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			47

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

II. iShares MSCI Germany ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Directors (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Directors required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Directors, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


48		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

The Board also noted that the investment advisory fee rate and overall expenses for the Fund were at the median of the investment advisory fee rates and overall expenses of the funds in its Lipper Group.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			49

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that the revisions of the Advisory Contract to provide additional breakpoints had been subject to further negotiation after receipt of management’s proposal, and that at the request of the Board, management had modified its initial proposal regarding adding additional breakpoints to the Fund. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rate reflects appropriate sharing of potential economies of scale with the Fund’s shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


50		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

III. iShares MSCI Japan ETF


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			51

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

in response to these requests. After extensive discussions, the Board, including all of the Independent Directors, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Directors. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


52		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			53

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that the revisions of the Advisory Contract to provide additional breakpoints had been subject to further negotiation after receipt of management’s proposal, and that at the request of the Board, management had modified its initial proposal regarding adding additional breakpoints to the Fund. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rate reflects appropriate sharing of potential economies of scale with the Fund’s shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


54		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			55

Supplemental Information (Unaudited)

iSHARES^®, INC.

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	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
MSCI EMU	$	0.942598	$	—	$	—	$	0.942598		100	%		—	%		—	%		100	%
MSCI Japan		0.148862		—		0.021338		0.170200		87			—			13			100

Premium/Discount Information


56		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five calendar years through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.

iShares MSCI EMU ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		3		0.22	%
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		4		0.29
Greater than 2.0% and Less than 2.5%		9		0.65
Greater than 1.5% and Less than 2.0%		22		1.59
Greater than 1.0% and Less than 1.5%		54		3.91
Greater than 0.5% and Less than 1.0%		211		15.27
Between 0.5% and –0.5%		871		63.02
Less than –0.5% and Greater than –1.0%		119		8.61
Less than –1.0% and Greater than –1.5%		49		3.55
Less than –1.5% and Greater than –2.0%		24		1.74
Less than –2.0% and Greater than –2.5%		8		0.58
Less than –2.5% and Greater than –3.0%		5		0.36
Less than –3.0%		2		0.14

		1,382		100.00	%


SUPPLEMENTAL INFORMATION			57

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Germany ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		2		0.14	%
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		12		0.87
Greater than 1.5% and Less than 2.0%		18		1.30
Greater than 1.0% and Less than 1.5%		51		3.69
Greater than 0.5% and Less than 1.0%		187		13.54
Between 0.5% and –0.5%		919		66.51
Less than –0.5% and Greater than –1.0%		113		8.18
Less than –1.0% and Greater than –1.5%		49		3.55
Less than –1.5% and Greater than –2.0%		18		1.30
Less than –2.0% and Greater than –2.5%		6		0.43
Less than –2.5% and Greater than –3.0%		2		0.14
Less than –3.0% and Greater than –3.5%		2		0.14
Less than –3.5%		1		0.07

		1,382		100.00	%

iShares MSCI Japan ETF

Period Covered: January 1, 2009 through June 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		3		0.22	%
Greater than 4.0% and Less than 4.5%		2		0.14
Greater than 3.5% and Less than 4.0%		8		0.58
Greater than 3.0% and Less than 3.5%		3		0.22
Greater than 2.5% and Less than 3.0%		11		0.80
Greater than 2.0% and Less than 2.5%		14		1.01
Greater than 1.5% and Less than 2.0%		57		4.12
Greater than 1.0% and Less than 1.5%		119		8.61
Greater than 0.5% and Less than 1.0%		257		18.60
Between 0.5% and –0.5%		574		41.54
Less than –0.5% and Greater than –1.0%		154		11.14
Less than –1.0% and Greater than –1.5%		75		5.43
Less than –1.5% and Greater than –2.0%		53		3.84
Less than –2.0% and Greater than –2.5%		23		1.66
Less than –2.5% and Greater than –3.0%		14		1.01
Less than –3.0% and Greater than –3.5%		8		0.58
Less than –3.5% and Greater than –4.0%		5		0.36
Less than –4.0%		2		0.14

		1,382		100.00	%


58		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares MSCI Germany ETF and iShares MSCI Japan ETF (each a “Fund”, collectively the “Funds”) for marketing to EU investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to both (a) the staff of BFA; and (b) staff who are senior management or who have the ability to materially affect the risk profile of the Funds.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to each Fund is included in the aggregate figures disclosed.


SUPPLEMENTAL INFORMATION			59

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Germany ETF in respect of BFA’s financial year ending December 31, 2013 was USD 1,080,388. This figure is comprised of fixed remuneration of USD 424,803 and variable remuneration of USD 655,585. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Germany ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 173,572.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Japan ETF in respect of BFA’s financial year ending December 31, 2013 was USD 2,850,060. This figure is comprised of fixed remuneration of USD 1,120,630 and variable remuneration of USD 1,729,430. There were a total of 436 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA to its senior management and members of its staff whose actions have a material impact on the risk profile of the iShares MSCI Japan ETF which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2013 was USD 457,884.


60		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information

iSHARES^®, INC.

Interested Directors

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc.

Mark Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.


DIRECTOR AND OFFICER INFORMATION			61

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert H. Silver (59)	Director (since 2007); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Independent Chairman of iShares, Trust, iShares MSCI Russia Capped ETF, Inc. and iShares U.S. ETF Trust (since 2012).

Cecilia H. Herbert (65)	Director (since 2005); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Forward Funds (34 portfolios) (since 2009).

Charles A. Hurty (70)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).

John E. Kerrigan (59)	Director (since 2005); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).


62		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
John E. Martinez (53)	Director (since 2003); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011).

George G.C. Parker (75)	Director (since 2002).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Trustee of iShares U.S. ETF Trust (since 2011); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).

Madhav V. Rajan (50)	Director (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).


DIRECTOR AND OFFICER INFORMATION			63

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (54)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (45)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2007).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (51)	Executive Vice President (since 2007).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2007).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


64		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			65

Notes:


66		2014 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-81-0814

LOGO

Item 2. Code of Ethics.

iShares, Inc. (the “Registrant”) adopted a new code of ethics on July 1, 2011 that applies to persons appointed by the Registrant’s Board of Directors as the President and/or Chief Financial Officer, and any persons performing similar functions. For the fiscal year ended August 31, 2014, there were no amendments to any provision of the former and new codes of ethics, nor were there any waivers granted from any provision of the former and new codes of ethics. A copy of the new code of ethics is filed with this Form N-CSR under Item 12(a)(1).

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Directors has determined that the Registrant has more than one audit committee financial expert, as that term is defined under Item 3(b) and 3(c), serving on its audit committee. The audit committee financial experts serving on the Registrant’s audit committee are Charles A. Hurty, John E. Kerrigan, Robert H. Silver and Madhav V. Rajan, all of whom are independent, as that term is defined under Item 3(a)(2).

Item 4. Principal Accountant Fees and Services.

The principal accountant fees disclosed in items 4(a), 4(b), 4(c), 4(d) and 4(g) are for the fifty series of the Registrant for which the fiscal year-end is August 31, 2014 (the “Funds”), and whose annual financial statements are reported in Item 1.

(a)

Audit Fees – The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Funds’ annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years, were $782,510 for the fiscal year ended August 31, 2013 and $771,700 for the fiscal year ended August 31, 2014.

(b)

Audit-Related Fees – There were no fees billed for the fiscal years ended August 31, 2013 and August 31, 2014 for assurance and related services by the principal accountant that were reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (a) of this Item.

(c)

Tax Fees – The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for the review of the Funds’ tax returns and excise tax calculations, were $193,500 for the fiscal year ended August 31, 2013 and $183,850 for the fiscal year ended August 31, 2014.

(d)

All Other Fees – There were no other fees billed for the fiscal years ended August 31, 2013 and August 31, 2014 for products and services provided by the principal accountant, other than the services reported in (a) through (c) of this Item.

(e)

(1) The Registrant’s audit committee charter, as amended, provides that the audit committee is responsible for the approval, prior to appointment, of the engagement of the principal accountant to annually audit and provide their opinion on the Registrant’s financial statements. The audit committee must also approve, prior to appointment, the engagement of the principal accountant to provide non-audit services to the Registrant or to any entity controlling, controlled by or under common control with the Registrant’s investment adviser (“Adviser Affiliate”) that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant.

(2) There were no services described in (b) through (d) above (including services required by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)

None of the hours expended on the principal accountant’s engagement to audit the Funds’ financial statements for the fiscal year ended August 31, 2014 were attributable to work performed by persons other than the principal accountant’s full-time, permanent employees.

(g)

The aggregate non-audit fees billed by the Registrant’s principal accountant for services rendered to the Funds, and rendered to the Registrant’s investment adviser, and any Adviser Affiliate that provides ongoing services to the Registrant for the last two fiscal years were, $4,054,391 for the fiscal year ended August 31, 2013 and $3,442,905 for the fiscal year ended August 31, 2014.

(h)

The Registrant’s audit committee has considered whether the provision of non-audit services rendered to the Registrant’s investment adviser and any Adviser Affiliate that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, are compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services do not compromise the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, Robert H. Silver, John E. Martinez and Madhav V. Rajan.

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) Code of Ethics for Senior Officers that is the subject of Item 2 is attached.

(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/ Manish Mehta
		Manish Mehta, President (Principal Executive Officer)
Date:		October 27, 2014

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/ Manish Mehta
		Manish Mehta, President (Principal Executive Officer)
Date:		October 27, 2014

By:		/s/ Jack Gee
		Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date:		October 27, 2014