Form N-CSRS for iShares, Inc.

The iShares Asia/Pacific Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying equities in Asia/Pacific developed markets, as represented by the Dow Jones Asia/Pacific Select Dividend 30^TM 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 six-month reporting period ended October 31, 2014, the total return for the Fund was -3.08%, net of fees, while the total return for the Index was -3.06%.

The inception date of the Fund was 2/23/12. The first day of secondary market trading was 2/24/12.

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 7 for more information.

PORTFOLIO ALLOCATION

As of 10/31/14


Sector		Percentage of Total Investments*


Financials	25.57	%
Telecommunication Services	23.70
Industrials	20.05
Consumer Discretionary	8.61
Energy	4.95
Utilities	4.69
Consumer Staples	4.63
Information Technology	3.44
Health Care	2.18
Materials	2.18

TOTAL	100.00	%

COUNTRY ALLOCATION

As of 10/31/14


Country		Percentage of Total Investments*


Australia	51.32	%
Hong Kong	16.83
Singapore	11.69
New Zealand	11.14
Japan	9.02

TOTAL	100.00	%

The iShares Emerging Markets Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying equities in emerging markets, as represented by the Dow Jones Emerging Markets Select Dividend^TM 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 six-month reporting period ended October 31, 2014, the total return for the Fund was -4.46%, net of fees, while the total return for the Index was -4.30%.

The inception date of the Fund was 2/23/12. The first day of secondary market trading was 2/24/12.

PORTFOLIO ALLOCATION

As of 10/31/14


Sector		Percentage of Total Investments*


Financials	19.14	%
Telecommunication Services	16.63
Materials	16.18
Consumer Discretionary	12.08
Utilities	10.78
Information Technology	8.73
Energy	6.65
Industrials	5.97
Consumer Staples	3.84

TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 10/31/14


Country		Percentage of Total Investments*


Taiwan	24.63	%
Brazil	14.43
South Africa	8.87
Poland	8.21
China	7.46
Thailand	7.17
Turkey	6.02
Malaysia	5.90
Indonesia	4.62
Czech Republic	3.65

TOTAL	90.96	%

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.

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 May 1, 2014 and held through October 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.


Security	Shares		Value

COMMON STOCKS — 99.63%

AUSTRALIA — 51.14%
ALS Ltd.		302,680	$	1,497,893
Amcor Ltd.		113,120		1,165,349
AusNet Services		2,077,100		2,510,436
Australia and New Zealand Banking Group Ltd.		59,360		1,747,945
Bendigo and Adelaide Bank Ltd.		177,000		1,932,342
Commonwealth Bank of Australia		22,560		1,595,938
Metcash Ltd.		996,180		2,478,068
Mineral Resources Ltd.		278,720		2,082,457
Monadelphous Group Ltd.^a		179,880		1,979,595
National Australia Bank Ltd.		59,660		1,834,916
Suncorp Group Ltd.		114,560		1,475,230
Sydney Airport		482,700		1,871,134
Telstra Corp. Ltd.		387,920		1,919,728
Westpac Banking Corp.		60,980		1,864,258
WorleyParsons Ltd.		129,120		1,539,013

				27,494,302
HONG KONG — 16.77%
Giordano International Ltd.		2,092,000		1,065,530
Hang Seng Bank Ltd.		83,000		1,406,308
PCCW Ltd.		4,500,000		2,860,662
Sino Land Co. Ltd.		1,114,000		1,841,536
VTech Holdings Ltd.^a		147,100		1,841,785

				9,015,821
JAPAN — 8.98%
Accordia Golf Co. Ltd.		129,000		1,345,176
Eisai Co. Ltd.		30,500		1,170,157
NTT DOCOMO Inc.		72,500		1,204,184
TonenGeneral Sekiyu K.K.		128,000		1,110,959

				4,830,476
NEW ZEALAND — 11.10%
SKYCITY Entertainment Group Ltd.		724,640		2,204,058
Spark New Zealand Ltd.		1,532,720		3,761,716

				5,965,774
SINGAPORE — 11.64%
SATS Ltd.^a		452,000		1,090,004
Singapore Post Ltd.^a		1,449,000		2,220,560
Singapore Telecommunications Ltd.		511,000		1,502,590
StarHub Ltd.		450,582		1,447,611

				6,260,765

TOTAL COMMON STOCKS
(Cost: $52,943,418)				53,567,138


Security	Shares		Value

SHORT-TERM INVESTMENTS — 4.85%

MONEY MARKET FUNDS — 4.85%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.13%^b,c,d		2,423,508	$	2,423,508
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^b,c,d		140,172		140,172
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,c		47,611		47,611

				2,611,291

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,611,291)				2,611,291

TOTAL INVESTMENTS IN SECURITIES — 104.48%
(Cost: $55,554,709)				56,178,429
Other Assets, Less Liabilities — (4.48)%				(2,411,186	)

NET ASSETS — 100.00%			$	53,767,243

^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.

See notes to financial statements.


Security	Shares		Value

COMMON STOCKS — 91.53%

BRAZIL — 6.36%
Banco do Brasil SA		292,500	$	3,305,967
CCR SA		280,800		2,111,622
CPFL Energia SA		292,500		2,217,490
Light SA		491,400		4,075,889
Souza Cruz SA		245,700		2,004,897
Tractebel Energia SA		210,600		2,897,043

				16,612,908
CHILE — 1.80%
CAP SA		119,340		1,141,065
CorpBanca SA		118,264,887		1,582,703
Empresa Nacional de Telecomunicaciones SA		184,977		1,990,728

				4,714,496
CHINA — 7.43%
Anta Sports Products Ltd.		1,170,000		2,293,171
China Shanshui Cement Group Ltd.^a		10,881,000		4,012,747
Dongyue Group Ltd.		4,212,000		1,585,909
Evergrande Real Estate Group Ltd.^a		174,000		66,861
Guangzhou R&F Properties Co. Ltd. Class H		1,965,600		2,141,701
PetroChina Co. Ltd. Class H		1,872,000		2,343,862
Shenzhen Investment Ltd.		7,956,000		2,297,999
Shougang Fushan Resources Group Ltd.^a		7,068,000		1,594,930
Zhejiang Expressway Co. Ltd. Class H		3,042,000		3,067,418

				19,404,598
CZECH REPUBLIC — 3.63%
CEZ AS		141,921		3,924,770
Komercni Banka AS		11,466		2,455,622
O2 Czech Republic AS		278,343		3,109,074

				9,489,466
EGYPT — 0.40%
Commercial International Bank (Egypt) SAE SP GDR		152,100		1,034,280

				1,034,280
INDIA — 0.48%
Reliance Industries Ltd. SP GDR^a		38,844		1,258,546

				1,258,546


Security	Shares		Value

INDONESIA — 4.60%
PT AKR Corporindo Tbk		3,135,600	$	1,277,851
PT Aneka Tambang (Persero) Tbk		15,046,200		1,207,680
PT Indo Tambangraya Megah Tbk		1,813,500		3,177,564
PT Matahari Putra Prima Tbk		24,406,200		6,351,469

				12,014,564
MALAYSIA — 5.88%
Berjaya Sports Toto Bhd		1,639,448		1,799,318
British American Tobacco (Malaysia) Bhd		117,000		2,472,144
Kuala Lumpur Kepong Bhd		210,600		1,472,615
Malayan Banking Bhd		912,600		2,691,258
PPB Group Bhd		175,500		844,086
Public Bank Bhd		257,400		1,450,846
Sime Darby Bhd		631,800		1,859,337
Telekom Malaysia Bhd		1,263,600		2,765,956

				15,355,560
MOROCCO — 1.58%
Maroc Telecom SA		308,529		4,132,468

				4,132,468
PHILIPPINES — 0.78%
Globe Telecom Inc.		54,405		2,042,840

				2,042,840
POLAND — 8.17%
KGHM Polska Miedz SA		107,055		4,135,622
Orange Polska SA		791,037		2,375,981
Powszechny Zaklad Ubezpieczen SA		62,478		9,383,034
Synthos SA		4,388,904		5,455,784

				21,350,421
RUSSIA — 1.81%
Gazprom Neft OAO SP ADR		185,464		3,373,590
Mobile Telesystems OJSC		227,960		1,352,562

				4,726,152
SOUTH AFRICA — 8.83%
African Bank Investments Ltd.^a		2,216,313		2,006
Barloworld Ltd.		166,725		1,445,393
Exxaro Resources Ltd.^a		111,618		1,161,951
Foschini Group Ltd. (The)^a		234,585		2,646,752
Grindrod Ltd.		297,765		609,169
Kumba Iron Ore Ltd.		104,598		2,608,085
Lewis Group Ltd.^a		564,759		3,397,143
Nampak Ltd.		541,476		2,204,234
PPC Ltd.		771,381		2,066,885


Security	Shares		Value

RMB Holdings Ltd.		398,970	$	2,210,641
Tiger Brands Ltd.		46,098		1,383,775
Truworths International Ltd.		254,124		1,736,794
Woolworths Holdings Ltd.		224,826		1,595,375

				23,068,203
SOUTH KOREA — 2.13%
Hyundai Marine & Fire Insurance Co. Ltd.		47,480		1,255,050
Korea Gas Corp.^b		22,932		1,075,008
KT Corp.		68,445		2,100,620
KT Corp. SP ADR		73,593		1,128,181

				5,558,859
TAIWAN — 24.52%
AmTRAN Technology Co. Ltd.		10,413,000		5,991,074
ASUSTeK Computer Inc.		468,000		4,769,780
China Bills Finance Corp.		8,775,000		3,231,141
China Steel Corp.		952,388		820,363
Chong Hong Construction Co.		1,847,250		3,795,740
Chunghwa Telecom Co. Ltd.		702,000		2,139,477
Dynapack International Technology Corp.		1,521,000		3,700,426
Far EasTone Telecommunications Co. Ltd.		1,053,000		2,329,883
Farglory Land Development Co. Ltd.		1,872,263		1,852,781
Feng Hsin Iron & Steel Co. Ltd.		1,521,000		1,877,716
Formosa Plastics Corp.		234,840		542,001
Formosan Rubber Group Inc.		3,393,000		3,697,925
Gigabyte Technology Co. Ltd.		2,457,000		2,819,171
Highwealth Construction Corp.		1,755,000		3,034,965
Huaku Development Co. Ltd.		936,000		1,537,100
Inventec Corp.		1,989,475		1,380,104
Lite-On Technology Corp.		1,410,344		1,975,265
Novatek Microelectronics Corp. Ltd.		585,000		3,019,578
Oriental Union Chemical Corp.		1,872,000		1,415,547
Taiwan Mobile Co. Ltd.		819,000		2,657,613
TSRC Corp.		1,755,925		1,974,344
U-Ming Marine Transport Corp.		1,521,000		2,380,274
UPC Technology Corp.		6,084,980		2,080,574
Wistron NeWeb Corp.		595,577		1,339,321
WPG Holdings Co. Ltd.		3,042,000		3,700,426

				64,062,589


Security	Shares		Value

THAILAND — 7.14%
Advanced Information Service PCL NVDR		327,600	$	2,403,942
Charoen Pokphand Foods PCL NVDR		1,872,000		1,796,131
Intouch Holdings PCL NVDR^a		1,099,800		2,498,778
Land & Houses PCL NVDR		6,224,400		1,949,306
PTT Global Chemical PCL NVDR		1,076,400		2,049,027
Sansiri PCL NVDR^a		71,192,966		4,502,840
Siam Cement (The) PCL NVDR		117,000		1,616,518
Thai Oil PCL NVDR		1,333,800		1,832,593

				18,649,135
TURKEY — 5.99%
Ford Otomotiv Sanayi AS^b		171,405		2,192,551
Tofas Turk Otomobil Fabrikasi AS		542,646		3,409,563
Turk Telekomunikasyon AS		1,086,579		3,127,304
Turk Traktor ve Ziraat Makineleri AS		87,984		2,777,983
Turkiye Petrol Rafinerileri AS		191,061		4,152,191

				15,659,592

TOTAL COMMON STOCKS
(Cost: $260,122,935)				239,134,677

PREFERRED STOCKS — 8.01%

BRAZIL — 8.01%
AES Tiete SA		702,000		5,353,449
Companhia Energetica de Minas Gerais		1,462,563		8,482,860
Oi SA		4,703,400		2,492,172
Telefonica Brasil SA		222,300		4,585,626

				20,914,107

TOTAL PREFERRED STOCKS
(Cost: $26,099,126)				20,914,107

SHORT-TERM INVESTMENTS — 3.97%

MONEY MARKET FUNDS — 3.97%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.13%^c,d,e		9,679,064		9,679,064
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^c,d,e		559,821		559,821

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”):

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.

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).

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”).

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:

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 October 31, 2014. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

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 October 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.

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.

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 October 31, 2014, if any, are disclosed in the Funds’ statements of assets and liabilities.

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.

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 October 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 October 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.

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 October 31, 2014:

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.

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.

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:

BFA has contractually agreed to waive a portion of its investment advisory fees for the iShares Emerging Markets Dividend ETF through August 31, 2015 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 six months ended October 31, 2014. In addition, BFA has contractually agreed to waive a portion of its investments advisory fee for the Fund through August 31, 2015 in order to limit total annual operating expenses to 0.49% of average daily net assets.

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. 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, (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.

For the six months ended October 31, 2014, each Fund paid to BTC the following amounts in total for securities lending agent services and 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.

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.

The iShares Emerging Markets Dividend ETF, 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.

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended October 31, 2014 were as follows:

In-kind transactions (see Note 4) for the six months ended October 31, 2014 were as follows:

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.

In the normal course of business, each Fund’s investment activities expose 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 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 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 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.

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 Emerging Markets Dividend 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 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 its statement of assets and liabilities.

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.

For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the

gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset values per share.

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

As of April 30, 2014, the Funds’ fiscal year end, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

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

Management has analyzed tax laws and regulations and their application to the Funds as of October 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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)

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

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 S&P Dow Jones Indices, LLC, 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.

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

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors.

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.

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.


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		0.19%		1.06%		0.39%		0.19%		1.06%		0.39%
Since Inception		7.30%		7.64%		7.67%		20.85%		21.88%		21.94%


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^a		Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	969.20	$	2.43	$	1,000.00	$	1,022.70	$	2.50		0.49%


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(10.29)%		(9.71)%		(10.31)%		(10.29)%		(9.71)%		(10.31)%
Since Inception		(2.91)%		(3.00)%		(3.06)%		(7.63)%		(7.87)%		(8.01)%


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^a		Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	955.40	$	2.42	$	1,000.00	$	1,022.70	$	2.50		0.49%


Security	Shares		Value

BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^c,d		135,519	$	135,519

				10,374,404

TOTAL SHORT-TERM INVESTMENTS
(Cost: $10,374,404)				10,374,404

TOTAL INVESTMENTS IN SECURITIES — 103.51%
(Cost: $296,596,465)				270,423,188
Other Assets, Less Liabilities — (3.51)%				(9,164,295	)

NET ASSETS — 100.00%			$	261,258,893


Fund Performance Overviews			5
About Fund Performance			7
Shareholder Expenses			7
Schedules of Investments			8
iShares Asia/Pacific Dividend ETF			8
iShares Emerging Markets Dividend ETF			9
Financial Statements			12
Financial Highlights			15
Notes to Financial Statements			17
Board Review and Approval of Investment Advisory Contract			26
Supplemental Information			33


	iShares Asia/Pacific Dividend ETF			iShares Emerging Markets Dividend ETF

ASSETS
Investments, at cost:
Unaffiliated	$	52,943,418		$	286,222,061
Affiliated (Note 2)		2,611,291			10,374,404

Total cost of investments	$	55,554,709		$	296,596,465

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	53,567,138		$	260,048,784
Affiliated (Note 2)		2,611,291			10,374,404

Total fair value of investments		56,178,429			270,423,188
Foreign currency, at value^b		44,194			360,419
Receivables:
Investment securities sold		—			52,035
Dividends and interest		102,839			829,177
Capital shares sold		25,566			—

Total Assets		56,351,028			271,664,819


LIABILITIES
Payables:
Collateral for securities on loan (Note 1)		2,563,680			10,238,885
Capital shares redeemed		—			2,471
Securities related to in-kind transactions (Note 4)		—			52,035
Investment advisory fees (Note 2)		20,105			112,535

Total Liabilities		2,583,785			10,405,926


NET ASSETS	$	53,767,243		$	261,258,893


Net assets consist of:
Paid-in capital	$	55,207,756		$	305,175,297
Undistributed (distributions in excess of) net investment income		17,682			(963,751	)
Accumulated net realized loss		(2,080,618	)		(16,742,671	)
Net unrealized appreciation (depreciation)		622,423			(26,209,982	)

NET ASSETS	$	53,767,243		$	261,258,893


Shares outstanding^c		1,000,000			5,850,000


Net asset value per share	$	53.77		$	44.66


	iShares Asia/Pacific Dividend ETF			iShares Emerging Markets Dividend ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	1,501,232		$	7,944,396
Interest — affiliated (Note 2)		—			2
Securities lending income — affiliated (Note 2)		32,044			45,785

		1,533,276			7,990,183
Less: Other foreign taxes (Note 1)		—			(45,640	)

Total investment income		1,533,276			7,944,543


EXPENSES
Investment advisory fees (Note 2)		123,655			838,046

Total expenses		123,655			838,046
Less investment advisory fees waived (Note 2)		—			(234,160	)

Net expenses		123,655			603,886

Net investment income		1,409,621			7,340,657


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		497,594			(4,551,715	)
In-kind redemptions — unaffiliated		—			603,665
Foreign currency transactions		(34,443	)		(179,810	)

Net realized gain (loss)		463,151			(4,127,860	)

Net change in unrealized appreciation/depreciation on:
Investments		(3,418,197	)		(20,653,864	)
Translation of assets and liabilities in foreign currencies		(891	)		(37,842	)

Net change in unrealized appreciation/depreciation		(3,419,088	)		(20,691,706	)

Net realized and unrealized loss		(2,955,937	)		(24,819,566	)

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(1,546,316	)	$	(17,478,909	)


	iShares Asia/Pacific Dividend ETF						iShares Emerging Markets Dividend ETF
	Six months ended October 31, 2014 (Unaudited)			Year ended April 30, 2014			Six months ended October 31, 2014 (Unaudited)			Year ended April 30, 2014

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	1,409,621		$	2,058,871		$	7,340,657		$	6,687,729
Net realized gain (loss)		463,151			(1,764,737	)		(4,127,860	)		(10,453,226	)
Net change in unrealized appreciation/depreciation		(3,419,088	)		(1,037,524	)		(20,691,706	)		(5,278,169	)

Net decrease in net assets resulting from operations		(1,546,316	)		(743,390	)		(17,478,909	)		(9,043,666	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,562,920	)		(2,394,460	)		(8,557,492	)		(7,489,999	)

Total distributions to shareholders		(1,562,920	)		(2,394,460	)		(8,557,492	)		(7,489,999	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		8,200,562			8,584,794			125,839,816			79,561,210
Cost of shares redeemed		—			—			(17,382,402	)		(15,995,309	)

Net increase in net assets from capital share transactions		8,200,562			8,584,794			108,457,414			63,565,901

INCREASE IN NET ASSETS		5,091,326			5,446,944			82,421,013			47,032,236

NET ASSETS
Beginning of period		48,675,917			43,228,973			178,837,880			131,805,644

End of period	$	53,767,243		$	48,675,917		$	261,258,893		$	178,837,880

Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	17,682		$	170,981		$	(963,751	)	$	253,084


SHARES ISSUED AND REDEEMED
Shares sold		150,000			150,000			2,550,000			1,600,000
Shares redeemed		—			—			(400,000	)		(350,000	)

Net increase in shares outstanding		150,000			150,000			2,150,000			1,250,000


	iShares Asia/Pacific Dividend ETF
	Six months ended Oct. 31, 2014 (Unaudited)			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013			Period from Feb. 23, 2012^a to Apr. 30, 2012
Net asset value, beginning of period	$	57.27		$	61.76		$	52.74		$	51.62

Income from investment operations:
Net investment income^b		1.60			2.61			2.71			0.55
Net realized and unrealized gain (loss)^c		(3.32	)		(4.04	)		8.86			1.14

Total from investment operations		(1.72	)		(1.43	)		11.57			1.69

Less distributions from:
Net investment income		(1.78	)		(3.06	)		(2.55	)		(0.54	)
Net realized gain		—			—			—			(0.01	)
Return of capital		—			—			—			(0.02	)

Total distributions		(1.78	)		(3.06	)		(2.55	)		(0.57	)

Net asset value, end of period	$	53.77		$	57.27		$	61.76		$	52.74


Total return		(3.08	)%^d		(1.78	)%		22.87	%		3.32	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	53,767		$	48,676		$	43,229		$	13,186
Ratio of expenses to average net assets^e		0.49	%		0.49	%		0.49	%		0.49	%
Ratio of net investment income to average net assets^e		5.59	%		4.77	%		4.99	%		5.76	%
Portfolio turnover rate^f		8	%		33	%		32	%		1	%


	iShares Emerging Markets Dividend ETF
	Six months ended Oct. 31, 2014 (Unaudited)			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013			Period from Feb. 23, 2012^a to Apr. 30, 2012
Net asset value, beginning of period	$	48.33		$	53.80		$	53.23		$	54.61

Income from investment operations:
Net investment income^b		1.44			1.96			2.02			0.74
Net realized and unrealized gain (loss)^c		(3.52	)		(5.18	)		0.56			(1.98	)

Total from investment operations		(2.08	)		(3.22	)		2.58			(1.24	)

Less distributions from:
Net investment income		(1.59	)		(2.25	)		(2.01	)		(0.14	)

Total distributions		(1.59	)		(2.25	)		(2.01	)		(0.14	)

Net asset value, end of period	$	44.66		$	48.33		$	53.80		$	53.23


Total return		(4.46	)%^d		(5.86	)%		5.09	%		(2.27	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	261,259		$	178,838		$	131,806		$	15,970
Ratio of expenses to average net assets^e		0.49	%		0.49	%		0.49	%		0.49	%
Ratio of expenses to average net assets prior to waived fees^e		0.68	%		0.68	%		0.68	%		0.68	%
Ratio of net investment income to average net assets^e		5.96	%		4.01	%		3.80	%		7.51	%
Portfolio turnover rate^f		12	%		44	%		41	%		2	%


iShares ETF		Diversification Classification
Asia/Pacific Dividend		Non-diversified
Emerging Markets Dividend		Non-diversified


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2		Level 3		Total
Asia/Pacific Dividend
Assets:
Common Stocks	$	53,567,138	$	—	$	—	$	53,567,138
Money Market Funds		2,611,291		—		—		2,611,291

	$	56,178,429	$	—	$	—	$	56,178,429


Emerging Markets Dividend
Assets:
Common Stocks	$	239,132,671	$	—	$	2,006	$	239,134,677
Preferred Stocks		20,914,107		—		—		20,914,107
Money Market Funds		10,374,404		—		—		10,374,404

	$	270,421,182	$	—	$	2,006	$	270,423,188


iShares ETF	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
Asia/Pacific Dividend	$	2,432,071	$	2,432,071	$	—
Emerging Markets Dividend		9,632,751		9,632,751		—


iShares ETF	Investment Advisory Fee
Asia/Pacific Dividend		0.49	%
Emerging Markets Dividend		0.68


2014 SEMI-ANNUAL REPORT (UNAUDITED)


FUND PERFORMANCE OVERVIEWS			5


6		2014 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS


ABOUT FUND PERFORMANCE / SHAREHOLDER EXPENSES			7


iShares ETF	Fees Paid to BTC
Asia/Pacific Dividend	$	11,500
Emerging Markets Dividend		16,379


iShares ETF	Purchases		Sales
Asia/Pacific Dividend	$	3,820,547	$	3,936,776
Emerging Markets Dividend		82,422,649		27,618,106


iShares ETF	In-kind Purchases		In-kind Sales
Asia/Pacific Dividend	$	8,116,595	$	—
Emerging Markets Dividend		60,957,502		8,545,214


iShares ETF	Non- Expiring
Asia/Pacific Dividend	$	397,119
Emerging Markets Dividend		1,732,762


iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Asia/Pacific Dividend	$	55,923,297	$	5,101,032	$	(4,845,900	)	$	255,132
Emerging Markets Dividend		300,202,745		10,998,897		(40,778,454	)		(29,779,557	)


	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
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
Emerging Markets Dividend	$	1.587277	$	—	$	—	$	1.587277		100	%		—	%		—	%		100	%


By:		/s/ Manish Mehta
		Manish Mehta, President (Principal Executive Officer)
Date:		December 23, 2014