Form N-CSR

Name (Age)

Position(s)

Principal Occupation(s)

During the Past 5 Years

Other Directorships Held by
Director During the Past 5 Years

Robert S. Kapito^a (59)

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).

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 2009); Trustee of iShares U.S. ETF Trust (since 2011).

Mark Wiedman^b (45)

Director (since 2013).

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

N-CSR 1 d235730dncsr.htm FORM N-CSR Form N-CSR

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, 2016

Date of reporting period: August 31, 2016

Item 1. Reports to Stockholders.

AUGUST 31, 2016


2016 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 France ETF | EWQ | NYSE Arca

^Ø

iShares MSCI Netherlands ETF | EWN | NYSE Arca

^Ø

iShares MSCI Sweden ETF | EWD | 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 Austria Capped ETF			17
iShares MSCI Belgium Capped ETF			19
iShares MSCI France ETF			21
iShares MSCI Netherlands ETF			24
iShares MSCI Sweden ETF			26
Financial Statements			28
Financial Highlights			35
Notes to Financial Statements			40
Report of Independent Registered Public Accounting Firm			51
Tax Information			52
Board Review and Approval of Investment Advisory Contract			53
Supplemental Information			60
Director and Officer Information			64

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets advanced for the 12 months ended August 31, 2016 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 7.24% for the reporting period.

Early in the reporting period, global stock markets were volatile but generally declined overall amid lower energy prices and weaker global economic growth, including slowdowns in stronger developed economies such as the U.S. and U.K. In response, many of the world’s central banks took more aggressive actions to stimulate economic activity, including expanded quantitative easing measures and negative interest rates.

In the U.S., the Federal Reserve Bank (the “Fed”) postponed plans to raise its short-term interest rate target until December 2015, when it ended a seven-year period of near-zero interest rates by increasing the federal funds target interest rate from a range of 0%-0.25% to a range of 0.25%-0.50%. It was the Fed’s first interest rate hike since June 2006.

After bottoming in mid-February 2016, global equity markets reversed course, rallying through the end of the reporting period. Central bank stimulus activity and a recovery in energy prices helped global equity markets rebound, as did signs of stabilization in China, which had experienced a marked economic slowdown that put downward pressure on its currency. Despite the overall upward trend in global equity markets, geopolitical factors — including the “Brexit” referendum in the U.K. (an affirmative vote to leave the European Union), terrorist attacks in France, and an attempted coup in Turkey — contributed to increased equity market volatility late in the reporting period.

Among developed countries, the U.S. was among the best-performing markets, returning approximately 12% for the reporting period. Although employment growth remained robust, other segments of the U.S. economy struggled, leading to three consecutive quarters of growth below a 1.5% annual rate. As a result, the Fed — which was expected to raise short-term interest rates further in 2016 — held rates steady through the first eight months of the year. Stable Fed monetary policy, as well as the relative strength of the U.S. economy compared with other regions of the globe, provided a favorable backdrop for U.S. equity market performance.

Equity markets in the Asia/Pacific region gained approximately 6% for the reporting period. New Zealand and Australia were the leading markets in the region, benefiting from improving economic growth during the reporting period, while the laggards included Singapore and Japan. In particular, the Japanese equity market declined by more than 12%, but a strong rally in the Japanese yen (which appreciated by 15% against the U.S. dollar) helped offset the overall market decline, resulting in a 3% gain in U.S. dollar terms.

European stock markets declined by approximately 3% for the reporting period. Markets in Italy and Spain, which were adversely affected by political instability and struggling banking sectors, declined the most, while Belgium and Portugal performed best. In the U.K., the equity market advanced by about 13%, but a sharp decline in the British pound in the wake of the Brexit vote led to negative returns in U.S. dollar terms.

Emerging markets stocks outperformed developed markets, advancing by nearly 12% for the reporting period in U.S. dollar terms. Latin American equity markets generated the best returns, led by rebounding markets in Peru and Brazil, while stock markets in Eastern Europe lagged.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI AUSTRIA CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		2.11%		2.58%		2.34%		2.11%		2.58%		2.34%
5 Years		(1.19)%		(1.05)%		(1.06)%		(5.83)%		(5.16)%		(5.19)%
10 Years		(3.94)%		(3.94)%		(4.32)%		(33.09)%		(33.08)%		(35.73)%

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 16 for more information.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,117.90	$	2.61	$	1,000.00	$	1,022.70	$	2.49		0.49%

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 (366 days). See “Shareholder Expenses” on page 16 for more information.


6		2016 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, 2016, the total return for the Fund was 2.11%, net of fees, while the total return for the Index was 2.34%.

Austrian stocks, as measured by the Index, posted a modest gain during the reporting period, reflecting a gradual economic recovery in the country.

Economic growth in Austria gained momentum during the reporting period. The growth was supported in part by an increase in investment spending, which occurred as a result of historically low interest rates and generally low oil prices. A recent tax reform that helped increase household disposable income and boost consumer confidence also contributed to Austria’s gradual economic growth.

Stocks in the energy sector, led by the oil, gas, and consumable fuels industry, made the largest contribution to the Index’s performance in the reporting period. The sector’s contribution reflected a slight rebound in oil prices during the reporting period. Financials, which constituted the largest sector in the Index on average, also contributed, with stocks of real estate management and development companies helping the most. In the industrials sector, the building products and machinery segments of the capital goods industry were the strongest contributors. Materials sector stocks posted gains as well, with the largest contributions coming from the chemicals industry.

At the other end of the spectrum, the consumer discretionary sector was the largest detractor from the Index’s return in the reporting period. The hotels, restaurants, and leisure industry provided the most significant hindrance to the sector’s performance, in part due to declining tourism in Europe as a result of concerns about recent terrorist attacks. Within the industrials sector, the electrical equipment industry had weak performance, as did the insurance industry in the financials sector.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	28.35	%
Real Estate**	18.63
Industrials	18.23
Materials	18.04
Energy	11.06
Information Technology	2.59
Utilities	1.66
Consumer Discretionary	1.44

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Erste Group Bank AG	19.43	%
OMV AG	8.85
Voestalpine AG	7.99
Andritz AG	7.82
BUWOG AG	4.61
IMMOFINANZ AG	4.56
Wienerberger AG	4.49
Raiffeisen Bank International AG	4.38
CA Immobilien Anlagen AG	4.28
Oesterreichische Post AG	3.74

TOTAL	70.15	%

Excludes money market funds.

Reflects the GICS industry classification system effective after the close of 8/31/16 which newly defines Real Estate as a separate sector from Financials. Any references to performance and average weights for the financials sector in management’s commentary includes real estate.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI BELGIUM CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		8.20%		8.52%		8.31%		8.20%		8.52%		8.31%
5 Years		11.12%		11.18%		12.87%		69.39%		69.88%		83.22%
10 Years		1.08%		1.03%		1.35%		11.31%		10.81%		14.36%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,109.60	$	2.60	$	1,000.00	$	1,022.70	$	2.49		0.49%


8		2016 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, 2016, the total return for the Fund was 8.20%, net of fees, while the total return for the Index was 8.31%.

Belgian stocks, as represented by the Index, posted solid gains during the reporting period, reflecting slow, but ongoing, growth in Belgium’s economy.

Belgium’s export-related economy performed well during the reporting period. The upward progress was driven in large measure by services industries and the energy sector. It was further supported by a gradual improvement in domestic consumer and business confidence levels. Concerns about terrorist attacks in Europe, including in the Belgian capital of Brussels, had a somewhat negative impact on private consumption and tourism. Near the end of the reporting period, worries about the potential downstream effects of the United Kingdom’s vote to leave the European Union appeared to be tempering the pace of the Belgian economy’s growth.

Stocks in the consumer staples sector, the largest weight in the Index on average, made the largest contribution to the Index’s return in the reporting period, led by the strong performance of the export-related beverages segment. The information technology sector also contributed, with solid gains coming from the semiconductors and semiconductor equipment industry. In the materials sector, the chemicals industry was the most significant contributor to the Index’s return.

On the downside, generally low oil prices weighed on the energy sector, which was the largest detractor from the Index’s return for the reporting period. Stocks of companies in the oil, gas, and consumable fuels industry of the sector detracted. In the telecommunication services sector, the diversified telecommunication services industry underperformed. Hampered by low interest rates, stocks of Belgian banks and insurance companies in the financials sector also held back the Index’s performance.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Consumer Staples	27.13	%
Financials**	21.52
Materials	12.17
Health Care	11.73
Real Estate**	7.28
Consumer Discretionary	5.08
Information Technology	5.03
Telecommunication Services	4.03
Industrials	2.93
Energy	1.60
Utilities	1.50

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Anheuser-Busch InBev SA/NV	22.30	%
KBC Group NV	7.63
UCB SA	5.40
Solvay SA	4.87
Groupe Bruxelles Lambert SA	4.22
Umicore SA	3.67
Ageas	3.67
Proximus SADP	2.99
Colruyt SA	2.56
Ackermans & van Haaren NV	2.07

TOTAL	59.38	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI FRANCE ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(1.87)%		(1.74)%		(1.93)%		(1.87)%		(1.74)%		(1.93)%
5 Years		4.04%		4.09%		4.01%		21.91%		22.20%		21.70%
10 Years		0.37%		0.35%		0.43%		3.75%		3.59%		4.38%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,067.80	$	2.55	$	1,000.00	$	1,022.70	$	2.49		0.49%


10		2016 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, 2016, the total return for the Fund was -1.87%, net of fees, while the total return for the Index was -1.93%.

Stocks in France, as represented by the Index, posted a modest decline during the reporting period, reflecting the ongoing fragility of the French economy and a growing level of pessimism among French consumers and businesses.

Economic growth in France was relatively flat during most of the reporting period, but began trending upwards in the first half of 2016 due to lower energy prices, tax cuts on labor and businesses, and extremely low interest rates. Low energy prices and tame inflation helped support rising wages and greater consumer consumption. A weaker euro and tax reductions were beneficial to French exporters, while cheaper oil reduced the cost of imports.

Stocks in the financials sector were the largest detractors from the Index’s performance during the reporting period. In particular, diversified banks and insurance companies saw their stock prices fall, as near-zero-percent interest rates weighed heavily on company earnings. Bank stocks also were hit hard in the uncertain aftermath of the United Kingdom’s vote to leave the European Union. In the healthcare sector, French pharmaceuticals stocks performed poorly, due in part to historically high share prices, the rising prices of drugs, and increasing political backlash against the industry as a whole. Stocks in the utilities sector also detracted from the Index’s return.

On the upside, the consumer staples sector contributed to the Index’s return for the reporting period, particularly within the food products segment. Despite lower oil prices, energy sector stocks also were contributors, with the integrated oil and gas segment posting a positive result. Stocks in the information technology services segment were helpful in the information technology sector.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Industrials	19.38	%
Consumer Discretionary	17.56
Financials**	12.67
Consumer Staples	11.46
Health Care	9.74
Energy	9.52
Materials	4.83
Real Estate**	4.21
Information Technology	3.89
Utilities	3.47
Telecommunication Services	3.27

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Total SA	8.98	%
Sanofi	7.53
BNP Paribas SA	4.55
L’Oreal SA	4.04
LVMH Moet Hennessy Louis Vuitton SE	3.98
Danone SA	3.79
AXA SA	3.44
Vinci SA	3.23
Schneider Electric SE	3.22
Air Liquide SA	3.19

TOTAL	45.95	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI NETHERLANDS ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		3.32%		3.57%		3.77%		3.32%		3.57%		3.77%
5 Years		8.33%		8.39%		8.61%		49.17%		49.59%		51.12%
10 Years		3.02%		3.01%		3.45%		34.62%		34.55%		40.37%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,098.70	$	2.58	$	1,000.00	$	1,022.70	$	2.49		0.49%


12		2016 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, 2016, the total return for the Fund was 3.32%, net of fees, while the total return for the Index was 3.77%.

Stocks in the Netherlands, as represented by the Index, posted a modest gain during the reporting period. The appreciation of Netherlands’ stock prices mirrored the advances of the country’s economy.

Growth in the Netherlands economy was broad-based and proceeded at a healthy rate during the reporting period, driven mainly by domestic demand. Higher employment and wage growth supported increases in private consumption, as did a recovery in the housing market. Business investment grew due to rising demand and improving credit conditions. Business and consumer confidence both were solid during most of the reporting period. A reduction in gas extraction due to weak global energy demand weighed slightly on growth and exports.

Solid domestic demand drove a meaningful increase in the value of stocks in the consumer staples sector, which was the largest weight in the Index on average and the most significant contributor to the Index’s performance for the reporting period. Within the sector, stocks in the personal products, beverages, and food and staples retailing segments were notable contributors. Stocks in the information technology sector also helped, especially those in the semiconductors and semiconductor equipment industry. The materials sector contributed as well, with the chemicals industry providing most of the forward momentum.

At the other end of the spectrum, the financials sector was the largest detractor from the Index’s return during the reporting period. Banks and insurance companies posted declines as persistently low interest rates continued to put pressure on their earnings potential. The telecommunication services sector also detracted from the Index’s return.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Consumer Staples	32.38	%
Industrials	19.21
Financials**	16.74
Information Technology	16.54
Materials	7.47
Telecommunication Services	2.51
Consumer Discretionary	2.19
Energy	1.72
Real Estate**	1.24

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Unilever NV CVA	16.70	%
ING Groep NV	10.86
ASML Holding NV	8.94
Koninklijke Ahold Delhaize NV	6.85
Koninklijke Philips NV	6.06
NXP Semiconductors NV	4.80
Heineken NV	4.63
RELX NV	3.99
Akzo Nobel NV	3.81
Koninklijke DSM NV	2.89

TOTAL	69.53	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI SWEDEN ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(1.91)%		(1.92)%		(2.61)%		(1.91)%		(1.92)%		(2.61)%
5 Years		5.08%		5.16%		4.59%		28.13%		28.62%		25.14%
10 Years		4.72%		4.76%		4.47%		58.67%		59.16%		54.86%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,076.40	$	2.56	$	1,000.00	$	1,022.70	$	2.49		0.49%


14		2016 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, 2016, the total return for the Fund was -1.91%, net of fees, while the total return for the Index was -2.61%.

Swedish stocks, as measured by the Index, posted a moderate loss during the reporting period. The negative performance of the Index reflected slowing growth in the once-booming Swedish economy.

The deceleration of Sweden’s economy was mainly attributable to a weakening of export activity during the reporting period. Swedish exports lost momentum in 2016 on weaker E.U. demand, and they were further challenged by the economic uncertainties posed by the United Kingdom’s decision to leave the European Union. Domestically, slowdowns in both industrial production and fixed investment have also weighed on the Swedish economy. Business and consumer confidence levels dissipated as well.

In the persistently low interest-rate environment in the E.U., the Swedish financials sector, the largest sector weight in the Index on average at about 32%, weighed most heavily on the Index’s performance for the reporting period. Low interest rates severely limit the ability of banks and other financial intermediaries to generate income, and Swedish banks had the most significant negative impact on the Index’s return. Poor performance in segments of the consumer discretionary sector also detracted, particularly the retailing industry. The information technology sector hindered the Index’s return, as did the telecommunication services sector.

On the upside, the industrials sector, which constituted about 28% of the Index on average, produced a strong contribution to the Index’s return for the reporting period. Industrial machinery stocks were the principal driver of the sector’s contribution. The consumer staples sector also was beneficial to the Index’s performance, as was the materials sector.

Special Note: On August 12, 2016, the Board approved several changes for the Fund. Effective on or around November 30, 2016, the Fund will track a new underlying index, the MSCI Sweden 25/50 Index, and will cease to track the MSCI Sweden Index. Concurrently, the Fund will change its name to the iShares MSCI Sweden Capped ETF.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials	32.17	%
Industrials	29.86
Consumer Discretionary	11.49
Information Technology	9.48
Consumer Staples	7.75
Telecommunication Services	5.39
Materials	1.69
Health Care	1.20
Energy	0.97

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Nordea Bank AB	8.58	%
Hennes & Mauritz AB Class B	8.45
Telefonaktiebolaget LM Ericsson Class B	6.32
Swedbank AB Class A	6.04
Assa Abloy AB	5.92
Svenska Handelsbanken AB Class A	5.60
Atlas Copco AB Class A	5.52
Investor AB Class B	4.84
Volvo AB Class B	4.70
Svenska Cellulosa AB SCA Class B	4.65

TOTAL	60.62	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

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 advisory fees. Without such a 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. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested 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, 2016 and held through August 31, 2016, 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 corresponding to 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.


16		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI AUSTRIA CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.17%

AEROSPACE & DEFENSE — 0.79%
FACC AG^a		81,703	$	477,642

				477,642
AIR FREIGHT & LOGISTICS — 3.70%
Oesterreichische Post AG		62,771		2,251,140

				2,251,140
BANKS — 23.62%
Erste Group Bank AG		417,618		11,714,093
Raiffeisen Bank International AG^a		186,070		2,640,179

				14,354,272
CHEMICALS — 3.14%
Lenzing AG		16,125		1,907,268

				1,907,268
CONSTRUCTION & ENGINEERING — 1.28%
Porr AG		24,753		780,193

				780,193
CONSTRUCTION MATERIALS — 6.83%
RHI AG		57,061		1,445,483
Wienerberger AG		170,519		2,706,295

				4,151,778
ELECTRIC UTILITIES — 1.64%
EVN AG		85,560		999,141

				999,141
ELECTRICAL EQUIPMENT — 1.68%
Zumtobel Group AG		62,369		1,018,681

				1,018,681
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.56%
Austria Technologie & Systemtechnik AG^b		65,856		792,148
Kapsch TrafficCom AG		17,209		766,661

				1,558,809
ENERGY EQUIPMENT & SERVICES — 2.19%
Schoeller-Bleckmann Oilfield Equipment AG		22,951		1,329,206

				1,329,206
HOTELS, RESTAURANTS & LEISURE — 1.43%
DO & CO AG		12,441		869,474

				869,474
INSURANCE — 4.50%
UNIQA Insurance Group AG		240,668		1,538,840
Vienna Insurance Group AG Wiener Versicherung Gruppe		60,751		1,193,208

				2,732,048


Security	Shares		Value
MACHINERY — 10.63%
Andritz AG		92,494	$	4,712,428
Palfinger AG		32,189		982,303
Semperit AG Holding^b		25,748		768,969

				6,463,700
METALS & MINING — 7.92%
Voestalpine AG		145,644		4,812,798

				4,812,798
OIL, GAS & CONSUMABLE FUELS — 8.78%
OMV AG		190,758		5,336,910

				5,336,910
REAL ESTATE MANAGEMENT & DEVELOPMENT — 18.48%
BUWOG AG		107,091		2,780,243
CA Immobilien Anlagen AG		136,188		2,579,307
Conwert Immobilien Invest SE		117,947		2,067,660
IMMOEAST AG Escrow^a		998,769		11
IMMOFINANZ AG^a		1,204,299		2,748,298
IMMOFINANZ AG Escrow^a		897,599		10
S IMMO AG		106,791		1,057,362

				11,232,891

TOTAL COMMON STOCKS
(Cost: $82,137,646)				60,275,951

SHORT-TERM INVESTMENTS — 2.72%

MONEY MARKET FUNDS — 2.72%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		1,619,284		1,619,284
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		35,791		35,791

				1,655,075

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,655,075)				1,655,075


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI AUSTRIA CAPPED ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 101.89%
(Cost: $83,792,721)^f	$	61,931,026
Other Assets, Less Liabilities — (1.89)%		(1,150,582	)

NET ASSETS — 100.00%	$	60,780,444

^a	Non-income earning security.

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

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $88,805,986. Net unrealized depreciation was $26,874,960, of which $1,432,989 represented gross unrealized appreciation on securities and $28,307,949 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2016. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	60,275,930	$	—	$	21	$	60,275,951
Money market funds		1,655,075		—		—		1,655,075

Total	$	61,931,005	$	—	$	21	$	61,931,026

See notes to financial statements.


18		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI BELGIUM CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.79%

AIR FREIGHT & LOGISTICS — 1.96%
bpost SA		101,799	$	2,585,032

				2,585,032
BANKS — 7.62%
KBC Group NV^a		170,355		10,069,119

				10,069,119
BEVERAGES — 22.25%
Anheuser-Busch InBev SA/NV		237,873		29,420,579

				29,420,579
BIOTECHNOLOGY — 3.10%
Ablynx NV^a,b		112,855		1,435,405
Celyad SA^a,b		15,219		333,918
Galapagos NV^a,b		43,130		2,333,589

				4,102,912
CAPITAL MARKETS — 1.21%
Gimv NV		30,697		1,603,795

				1,603,795
CHEMICALS — 9.67%
Solvay SA		58,589		6,421,594
Tessenderlo Chemie NV^a		48,231		1,531,210
Umicore SA		82,010		4,835,465

				12,788,269
COMMUNICATIONS EQUIPMENT — 1.00%
EVS Broadcast Equipment SA		36,641		1,320,168

				1,320,168
CONSTRUCTION & ENGINEERING — 0.97%
Cie. d’Entreprises CFE		13,888		1,276,244

				1,276,244
DISTRIBUTORS — 1.41%
D’ieteren SA/NV		38,736		1,867,626

				1,867,626
DIVERSIFIED FINANCIAL SERVICES — 8.99%
Ackermans & van Haaren NV		22,961		2,735,011
Groupe Bruxelles Lambert SA		63,531		5,566,502
KBC Ancora^a		47,155		1,729,183
Sofina SA		13,289		1,853,037

				11,883,733
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.99%
Proximus SADP		129,220		3,947,690

				3,947,690


Security	Shares		Value
ELECTRIC UTILITIES — 1.50%
Elia System Operator SA/NV		39,249	$	1,978,912

				1,978,912
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.28%
Barco NV		20,566		1,690,875

				1,690,875
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 7.27%
Aedifica SA^a		23,185		1,841,129
Befimmo SA		27,755		1,854,727
Cofinimmo SA		21,819		2,682,819
Intervest Offices & Warehouses NV		45,678		1,259,637
Warehouses De Pauw CVA		20,172		1,972,563

				9,610,875
FOOD & STAPLES RETAILING — 2.55%
Colruyt SA		61,579		3,374,655

				3,374,655
FOOD PRODUCTS — 0.35%
Greenyard Foods^a		29,850		458,787

				458,787
HEALTH CARE EQUIPMENT & SUPPLIES — 1.56%
Biocartis NV^a,b,c		46,311		384,262
Ion Beam Applications		37,260		1,680,889

				2,065,151
HEALTH CARE PROVIDERS & SERVICES — 0.71%
Fagron^a,b		106,017		937,172

				937,172
HEALTH CARE TECHNOLOGY — 0.93%
AGFA-Gevaert NV^a		390,779		1,235,618

				1,235,618
INSURANCE — 3.66%
Ageas		140,180		4,835,204

				4,835,204
IT SERVICES — 1.24%
Econocom Group SA/NV		129,449		1,639,256

				1,639,256
MEDIA — 2.89%
Kinepolis Group NV		31,843		1,425,343
Telenet Group Holding NV^a,b		51,063		2,391,158

				3,816,501


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI BELGIUM CAPPED ETF

August 31, 2016


Security	Shares		Value
METALS & MINING — 2.48%
Bekaert SA		47,365	$	1,953,434
Nyrstar NV^a		183,444		1,322,094

				3,275,528
OIL, GAS & CONSUMABLE FUELS — 1.59%
Euronav NV		157,394		1,371,352
Exmar NV^b		102,162		737,086

				2,108,438
PERSONAL PRODUCTS — 1.92%
Ontex Group NV		70,800		2,541,447

				2,541,447
PHARMACEUTICALS — 5.39%
UCB SA		86,975		7,130,480

				7,130,480
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.50%
Melexis NV		30,318		1,983,453

				1,983,453
TEXTILES, APPAREL & LUXURY GOODS — 0.77%
Sioen Industries NV		16,501		441,072
Van de Velde NV^b		7,822		574,888

				1,015,960
WIRELESS TELECOMMUNICATION SERVICES — 1.03%
Orange Belgium SA^a		58,841		1,368,353

				1,368,353

TOTAL COMMON STOCKS
(Cost: $144,720,037)				131,931,832


Security	Shares		Value
SHORT-TERM INVESTMENTS — 3.43%

MONEY MARKET FUNDS — 3.43%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		4,526,272	$	4,526,272
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		5,116		5,116

				4,531,388

TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,531,388)				4,531,388

TOTAL INVESTMENTS IN SECURITIES — 103.22%
(Cost: $149,251,425)^g				136,463,220
Other Assets, Less Liabilities — (3.22)%				(4,260,644	)

NET ASSETS — 100.00%			$	132,202,576

^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	Affiliated money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $151,809,123. Net unrealized depreciation was $15,345,903, of which $1,828,251 represented gross unrealized appreciation on securities and $17,174,154 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	131,931,832	$	—	$	—	$	131,931,832
Money market funds		4,531,388		—		—		4,531,388

Total	$	136,463,220	$	—	$	—	$	136,463,220

See notes to financial statements.


20		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI FRANCE ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.94%

AEROSPACE & DEFENSE — 5.89%
Airbus Group SE		162,592	$	9,469,026
Safran SA		87,039		6,076,177
Thales SA		29,377		2,539,946
Zodiac Aerospace		56,419		1,281,867

				19,367,016
AIR FREIGHT & LOGISTICS — 0.26%
Bollore SA		240,683		867,980

				867,980
AUTO COMPONENTS — 2.68%
Cie. Generale des Etablissements Michelin Class B		50,653		5,376,326
Valeo SA		66,319		3,426,493

				8,802,819
AUTOMOBILES — 1.93%
Peugeot SA^a		135,193		1,991,303
Renault SA		53,471		4,365,852

				6,357,155
BANKS — 8.10%
BNP Paribas SA		294,675		14,967,293
Credit Agricole SA		293,821		2,778,293
Natixis SA		260,265		1,149,624
Societe Generale SA		213,405		7,759,054

				26,654,264
BEVERAGES — 2.22%
Pernod Ricard SA		59,092		6,772,228
Remy Cointreau SA		6,083		530,003

				7,302,231
BUILDING PRODUCTS — 1.83%
Cie. de Saint-Gobain		137,253		6,010,670

				6,010,670
CHEMICALS — 3.70%
Air Liquide SA		95,800		10,491,536
Arkema SA		18,792		1,674,994

				12,166,530
COMMERCIAL SERVICES & SUPPLIES — 0.73%
Edenred		57,726		1,254,986
Societe BIC SA		7,978		1,162,667

				2,417,653
CONSTRUCTION & ENGINEERING — 4.17%
Bouygues SA		57,756		1,828,780
Eiffage SA		16,245		1,270,119


Security	Shares		Value
Vinci SA		140,203	$	10,616,707

				13,715,606
CONSTRUCTION MATERIALS — 0.21%
Imerys SA		9,933		698,842

				698,842
DIVERSIFIED FINANCIAL SERVICES — 0.48%
Eurazeo SA		11,238		680,762
Wendel SA		7,988		907,012

				1,587,774
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.27%
Iliad SA		7,350		1,513,193
Orange SA		552,692		8,427,022
SFR Group SA		30,386		807,141

				10,747,356
ELECTRIC UTILITIES — 0.27%
Electricite de France SA		69,229		885,151

				885,151
ELECTRICAL EQUIPMENT — 4.57%
Legrand SA		74,321		4,445,844
Schneider Electric SE		155,461		10,577,404

				15,023,248
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.50%
Ingenico Group SA		15,262		1,640,991

				1,640,991
ENERGY EQUIPMENT & SERVICES — 0.55%
Technip SA		30,540		1,801,717

				1,801,717
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 4.21%
Fonciere des Regions		9,247		862,631
Gecina SA		11,476		1,792,590
ICADE		10,279		791,989
Klepierre		61,253		2,865,943
Unibail-Rodamco SE		27,482		7,529,583

				13,842,736
FOOD & STAPLES RETAILING — 1.41%
Carrefour SA		154,171		3,875,447
Casino Guichard Perrachon SA^b		15,698		775,312

				4,650,759
FOOD PRODUCTS — 3.78%
Danone SA		164,116		12,449,425

				12,449,425


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI FRANCE ETF

August 31, 2016


Security	Shares		Value
HEALTH CARE EQUIPMENT & SUPPLIES — 2.20%
Essilor International SA		57,218	$	7,255,264

				7,255,264
HOTELS, RESTAURANTS & LEISURE — 1.47%
Accor SA		47,579		1,793,483
Sodexo SA		26,245		3,035,573

				4,829,056
INSURANCE — 4.08%
AXA SA		540,203		11,323,068
CNP Assurances		47,608		765,127
SCOR SE		45,616		1,339,977

				13,428,172
IT SERVICES — 2.08%
Atos SE		24,517		2,408,644
Capgemini SA		45,522		4,428,147

				6,836,791
MACHINERY — 0.34%
Alstom SA^a		42,541		1,123,617

				1,123,617
MEDIA — 4.54%
Eutelsat Communications SA		48,419		939,672
JCDecaux SA		20,609		706,960
Lagardere SCA		32,732		797,094
Publicis Groupe SA		52,605		3,899,084
SES SA		101,255		2,321,990
Vivendi SA		323,683		6,265,521

				14,930,321
METALS & MINING — 0.92%
ArcelorMittal^a		512,039		3,017,368

				3,017,368
MULTI-UTILITIES — 3.19%
Engie SA		406,646		6,471,966
Suez		90,961		1,374,240
Veolia Environnement SA		125,457		2,663,908

				10,510,114
OIL, GAS & CONSUMABLE FUELS — 8.97%
Total SA		620,013		29,520,548

				29,520,548
PERSONAL PRODUCTS — 4.04%
L’Oreal SA		70,477		13,292,912

				13,292,912
PHARMACEUTICALS — 7.53%
Sanofi		322,065		24,775,390

				24,775,390


Security	Shares		Value
PROFESSIONAL SERVICES — 0.48%
Bureau Veritas SA		73,955	$	1,583,100

				1,583,100
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.40%
STMicroelectronics NV		176,775		1,319,707

				1,319,707
SOFTWARE — 0.91%
Dassault Systemes		35,733		3,005,515

				3,005,515
TEXTILES, APPAREL & LUXURY GOODS — 6.93%
Christian Dior SE		15,182		2,620,886
Hermes International		7,346		3,097,555
Kering		21,076		3,989,302
LVMH Moet Hennessy Louis Vuitton SE		77,568		13,105,563

				22,813,306
TRADING COMPANIES & DISTRIBUTORS — 0.41%
Rexel SA		83,719		1,343,151

				1,343,151
TRANSPORTATION INFRASTRUCTURE — 0.69%
Aeroports de Paris		8,234		848,282
Groupe Eurotunnel SE Registered		130,435		1,432,381

				2,280,663

TOTAL COMMON STOCKS
(Cost: $400,633,908)				328,854,918

SHORT-TERM INVESTMENTS — 0.05%

MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		144,475		144,475
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		19,022		19,022

				163,497

TOTAL SHORT-TERM INVESTMENTS
(Cost: $163,497)				163,497


22		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI FRANCE ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.99%
(Cost: $400,797,405)^f	$	329,018,415
Other Assets, Less Liabilities — 0.01%		35,240

NET ASSETS — 100.00%	$	329,053,655

^a	Non-income earning security.

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

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $415,568,747. Net unrealized depreciation was $86,550,332, of which $7,416,612 represented gross unrealized appreciation on securities and $93,966,944 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	328,854,918	$	—	$	—	$	328,854,918
Money market funds		163,497		—		—		163,497

Total	$	329,018,415	$	—	$	—	$	329,018,415

See notes to financial statements.


SCHEDULES OF INVESTMENTS			23

Schedule of Investments

iSHARES^® MSCI NETHERLANDS ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.70%

AIR FREIGHT & LOGISTICS — 0.42%
PostNL NV^a		177,817	$	776,925

				776,925
BANKS — 11.93%
ABN AMRO Group NV^b		99,338		2,038,498
ING Groep NV		1,598,977		19,981,247

				22,019,745
BEVERAGES — 8.49%
Coca-Cola European Partners PLC^a		90,838		3,480,274
Heineken Holding NV		41,646		3,342,374
Heineken NV		95,461		8,516,203
Refresco Group NV^b		20,144		327,781

				15,666,632
CAPITAL MARKETS — 0.51%
BinckBank NV		30,966		176,960
Flow Traders^b		11,993		353,966
Intertrust NV^a,b		18,504		415,886

				946,812
CHEMICALS — 7.45%
Akzo Nobel NV		103,936		7,012,660
Corbion NV		24,984		680,344
Koninklijke DSM NV		76,513		5,325,167
OCI NV^a		41,812		730,653

				13,748,824
CONSTRUCTION & ENGINEERING — 1.19%
Arcadis NV		29,952		400,976
Boskalis Westminster		37,675		1,344,834
Koninklijke BAM Groep NV^c		102,111		457,634

				2,203,444
DIVERSIFIED FINANCIAL SERVICES — 0.00%
SNS REAAL NV^a,c		68,952		1

				1
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.50%
Koninklijke KPN NV		1,414,626		4,611,602

				4,611,602
ELECTRICAL EQUIPMENT — 0.46%
Kendrion NV		5,276		149,842
TKH Group NV		18,256		695,883

				845,725
ENERGY EQUIPMENT & SERVICES — 0.80%
Fugro NV CVA^a,c		24,438		385,949


Security	Shares		Value
SBM Offshore NV		75,028	$	1,097,174

				1,483,123
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.24%
Eurocommercial Properties NV		19,918		903,873
NSI NV		59,457		251,571
VastNed Retail NV		7,903		326,773
Wereldhave NV		16,696		799,034

				2,281,251
FOOD & STAPLES RETAILING — 6.93%
Amsterdam Commodities NV		7,543		196,164
Koninklijke Ahold Delhaize NV		527,160		12,602,620

				12,798,784
FOOD PRODUCTS — 0.22%
Wessanen		32,529		398,521

				398,521
HOUSEHOLD DURABLES — 0.24%
TomTom NV^a,c		47,783		438,040

				438,040
INDUSTRIAL CONGLOMERATES — 6.04%
Koninklijke Philips NV		384,732		11,158,011

				11,158,011
INSURANCE — 4.24%
Aegon NV		765,982		3,134,334
Delta Lloyd NV		190,838		772,179
NN Group NV		132,264		3,929,466

				7,835,979
IT SERVICES — 0.64%
InterXion Holding NV^a		31,508		1,175,248

				1,175,248
LEISURE PRODUCTS — 0.14%
Accell Group		10,072		258,792

				258,792
MACHINERY — 0.79%
Aalberts Industries NV		43,559		1,457,840

				1,457,840
MEDIA — 1.81%
Altice NV Class A^a		154,718		2,571,832
Altice NV Class B^a		46,058		764,583

				3,336,415
OIL, GAS & CONSUMABLE FUELS — 0.91%
Koninklijke Vopak NV		29,524		1,494,831


24		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI NETHERLANDS ETF

August 31, 2016


Security	Shares		Value
VTTI Energy Partners LP		10,035	$	192,973

				1,687,804
PERSONAL PRODUCTS — 16.65%
Unilever NV CVA		670,982		30,725,480

				30,725,480
PROFESSIONAL SERVICES — 8.24%
Brunel International NV		10,503		185,584
Randstad Holding NV		50,512		2,378,295
RELX NV		415,036		7,349,714
Wolters Kluwer NV		126,331		5,293,878

				15,207,471
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 14.57%
ASM International NV		26,842		1,020,325
ASML Holding NV		154,909		16,454,168
BE Semiconductor Industries NV		18,742		585,513
NXP Semiconductors NV^a		100,293		8,827,790

				26,887,796
SOFTWARE — 1.28%
Gemalto NV		34,022		2,366,354

				2,366,354
TRADING COMPANIES & DISTRIBUTORS — 2.01%
AerCap Holdings NV^a		70,569		2,820,643
IMCD Group NV		21,570		888,632

				3,709,275

TOTAL COMMON STOCKS
(Cost: $195,060,363)				184,025,894


Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.47%

MONEY MARKET FUNDS — 0.47%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		863,112	$	863,112
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		13,498		13,498

				876,610

TOTAL SHORT-TERM INVESTMENTS
(Cost: $876,610)				876,610

TOTAL INVESTMENTS IN SECURITIES — 100.17%
(Cost: $195,936,973)^g				184,902,504
Other Assets, Less Liabilities — (0.17)%				(315,587	)

NET ASSETS — 100.00%			$	184,586,917

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

^d	Affiliated money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $200,441,077. Net unrealized depreciation was $15,538,573, of which $5,611,457 represented gross unrealized appreciation on securities and $21,150,030 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	184,025,893	$	—	$	1	$	184,025,894
Money market funds		876,610		—		—		876,610

Total	$	184,902,503	$	—	$	1	$	184,902,504

See notes to financial statements.


SCHEDULES OF INVESTMENTS			25

Schedule of Investments

iSHARES^® MSCI SWEDEN ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.76%

BANKS — 24.58%
Nordea Bank AB		2,496,455	$	24,365,172
Skandinaviska Enskilda Banken AB Class A		1,283,696		12,528,756
Svenska Handelsbanken AB Class A		1,235,478		15,919,066
Swedbank AB Class A		747,530		17,163,057

				69,976,051
BUILDING PRODUCTS — 5.90%
Assa Abloy AB		830,916		16,800,666

				16,800,666
COMMERCIAL SERVICES & SUPPLIES — 1.69%
Securitas AB Class B		277,349		4,815,502

				4,815,502
COMMUNICATIONS EQUIPMENT — 6.30%
Telefonaktiebolaget LM Ericsson Class B		2,520,734		17,944,567

				17,944,567
CONSTRUCTION & ENGINEERING — 2.27%
Skanska AB Class B		294,571		6,447,251

				6,447,251
DIVERSIFIED FINANCIAL SERVICES — 7.51%
Industrivarden AB Class C		151,661		2,758,791
Investor AB Class B		389,949		13,732,040
Kinnevik AB Class B		199,263		4,897,986

				21,388,817
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.53%
Telia Co. AB		2,228,604		10,049,105

				10,049,105
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.15%
Hexagon AB Class B		220,655		8,969,360

				8,969,360
FOOD & STAPLES RETAILING — 0.88%
ICA Gruppen AB		73,338		2,504,775

				2,504,775
HEALTH CARE EQUIPMENT & SUPPLIES — 1.20%
Getinge AB Class B		174,774		3,403,405

				3,403,405
HOUSEHOLD DURABLES — 3.02%
Electrolux AB Class B		204,629		5,320,988


Security	Shares		Value
Husqvarna AB Class B		380,985	$	3,289,677

				8,610,665
HOUSEHOLD PRODUCTS — 4.64%
Svenska Cellulosa AB SCA Class B		430,898		13,219,518

				13,219,518
MACHINERY — 19.93%
Alfa Laval AB		252,188		3,911,077
Atlas Copco AB Class A		553,438		15,668,880
Atlas Copco AB Class B		326,761		8,386,303
Sandvik AB		900,001		9,754,672
SKF AB Class B		337,560		5,679,860
Volvo AB Class B		1,243,738		13,349,745

				56,750,537
METALS & MINING — 1.69%
Boliden AB		227,776		4,815,330

				4,815,330
OIL, GAS & CONSUMABLE FUELS — 0.97%
Lundin Petroleum AB^a		157,045		2,759,673

				2,759,673
SPECIALTY RETAIL — 8.44%
Hennes & Mauritz AB Class B		789,036		24,013,619

				24,013,619
TOBACCO — 2.21%
Swedish Match AB		177,121		6,303,400

				6,303,400
WIRELESS TELECOMMUNICATION SERVICES — 1.85%
Millicom International Cellular SA SDR		56,516		2,889,757
Tele2 AB Class B		285,464		2,371,682

				5,261,439

TOTAL COMMON STOCKS
(Cost: $356,842,038)				284,033,680

SHORT-TERM INVESTMENTS — 0.00%

MONEY MARKET FUNDS — 0.00%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^b,c		3,595		3,595

				3,595

TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,595)				3,595


26		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SWEDEN ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.76%
(Cost: $356,845,633)^d	$	284,037,275
Other Assets, Less Liabilities — 0.24%		671,473

NET ASSETS — 100.00%	$	284,708,748

SDR — Swedish Depositary Receipts

^a	Non-income earning security.

^b	Affiliated money market fund.

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

^d	The cost of investments for federal income tax purposes was $360,546,055. Net unrealized depreciation was $76,508,780, of which $6,295,284 represented gross unrealized appreciation on securities and $82,804,064 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	284,033,680	$	—	$	—	$	284,033,680
Money market funds		3,595		—		—		3,595

Total	$	284,037,275	$	—	$	—	$	284,037,275

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Austria Capped ETF			iShares MSCI Belgium Capped ETF			iShares MSCI France ETF

ASSETS
Investments, at cost:
Unaffiliated	$	82,137,646		$	144,720,037		$	400,633,908
Affiliated (Note 2)		1,655,075			4,531,388			163,497

Total cost of investments	$	83,792,721		$	149,251,425		$	400,797,405

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	60,275,951		$	131,931,832		$	328,854,918
Affiliated (Note 2)		1,655,075			4,531,388			163,497

Total fair value of investments		61,931,026			136,463,220			329,018,415
Foreign currency, at value^b		159,076			181,218			210,797
Receivables:
Investment securities sold		676,761			1,161,120			671,453
Interest		672			8,584			9,420
Tax reclaims		437,666			160,329			—

Total Assets		63,205,201			137,974,471			329,910,085


LIABILITIES
Payables:
Investment securities purchased		780,629			1,186,694			574,164
Collateral for securities on loan (Note 1)		1,619,284			4,526,272			144,475
Investment advisory fees (Note 2)		24,844			58,929			137,791

Total Liabilities		2,424,757			5,771,895			856,430


NET ASSETS	$	60,780,444		$	132,202,576		$	329,053,655


Net assets consist of:
Paid-in capital	$	159,019,724		$	196,494,512		$	458,458,312
Undistributed (distributions in excess of) net investment income		(15,415	)		50,163			181,248
Accumulated net realized loss		(76,323,258	)		(51,551,142	)		(57,808,484	)
Net unrealized depreciation		(21,900,607	)		(12,790,957	)		(71,777,421	)

NET ASSETS	$	60,780,444		$	132,202,576		$	329,053,655


Shares outstanding^c		3,900,000			7,280,000			13,800,000


Net asset value per share	$	15.58		$	18.16		$	23.84

^a	Securities on loan with values of $1,531,866, $4,279,336 and $133,499, respectively. See Note 1.

^b	Cost of foreign currency: $161,153, $182,080 and $209,157, respectively.

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

See notes to financial statements.


28		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Netherlands ETF			iShares MSCI Sweden ETF

ASSETS
Investments, at cost:
Unaffiliated	$	195,060,363		$	356,842,038
Affiliated (Note 2)		876,610			3,595

Total cost of investments	$	195,936,973		$	356,845,633

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	184,025,894		$	284,033,680
Affiliated (Note 2)		876,610			3,595

Total fair value of investments		184,902,504			284,037,275
Foreign currency, at value^b		348,486			26,362
Receivables:
Investment securities sold		2,012,862			—
Dividends and interest		501,477			118
Foreign withholding tax claims (Note 7)		—			10,640,860

Total Assets		187,765,329			294,704,615


LIABILITIES
Payables:
Investment securities purchased		2,216,641			—
Collateral for securities on loan (Note 1)		863,112			—
Securities related to in-kind transactions (Note 4)		17,147			—
IRS compliance fee for foreign withholding tax claims (Note 7)		—			8,773,929
Professional fees (Note 7)		—			1,103,233
Investment advisory fees (Note 2)		81,512			118,705

Total Liabilities		3,178,412			9,995,867


NET ASSETS	$	184,586,917		$	284,708,748


Net assets consist of:
Paid-in capital	$	241,335,091		$	408,611,279
Undistributed net investment income		2,099,033			190,625
Accumulated net realized loss		(47,805,188	)		(51,182,703	)
Net unrealized depreciation		(11,042,019	)		(72,910,453	)

NET ASSETS	$	184,586,917		$	284,708,748


Shares outstanding^c		7,450,000			9,975,000


Net asset value per share	$	24.78		$	28.54

^a	Securities on loan with values of $567,436 and $ —, respectively. See Note 1.

^b	Cost of foreign currency: $350,610 and $26,501, respectively.

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

See notes to financial statements.


FINANCIAL STATEMENTS			29

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Austria Capped ETF			iShares MSCI Belgium Capped ETF			iShares MSCI France ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	1,803,133		$	4,341,526		$	11,685,669
Dividends — affiliated (Note 2)		97			251			563
Securities lending income — affiliated — net (Note 2)		3,746			143,891			170,305

Total investment income		1,806,976			4,485,668			11,856,537


EXPENSES
Investment advisory fees (Note 2)		295,007			898,831			1,755,176

Total expenses		295,007			898,831			1,755,176

Net investment income		1,511,969			3,586,837			10,101,361


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(3,099,663	)		(1,954,966	)		(11,073,893	)
In-kind redemptions — unaffiliated		(112,264	)		3,173,414			5,592,198
Foreign currency transactions		(172,517	)		(24,479	)		13,320

Net realized gain (loss)		(3,384,444	)		1,193,969			(5,468,375	)

Net change in unrealized appreciation/depreciation on:
Investments		1,863,453			(1,392,045	)		(10,978,484	)
Translation of assets and liabilities in foreign currencies		130,571			(7,002	)		(3,767	)

Net change in unrealized appreciation/depreciation		1,994,024			(1,399,047	)		(10,982,251	)

Net realized and unrealized loss		(1,390,420	)		(205,078	)		(16,450,626	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	121,549		$	3,381,759		$	(6,349,265	)

^a	Net of foreign withholding tax of $178,925, $761,542 and $1,927,240, respectively.

See notes to financial statements.


30		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Netherlands ETF			iShares MSCI Sweden ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	6,408,612		$	13,445,470
Dividends — affiliated (Note 2)		361			243
Securities lending income — affiliated — net (Note 2)		15,114			10,932

Total investment income		6,424,087			13,456,645


EXPENSES
Investment advisory fees (Note 2)		898,127			1,573,426

Total expenses		898,127			1,573,426

Net investment income		5,525,960			11,883,219


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(14,185,201	)		(7,812,095	)
In-kind redemptions — unaffiliated		5,170,095			(1,361,984	)
Foreign currency transactions		9,453			(25,723	)

Net realized loss		(9,005,653	)		(9,199,802	)

Net change in unrealized appreciation/depreciation on:
Investments		10,393,669			(13,825,979	)
Translation of assets and liabilities in foreign currencies		(13,887	)		(102,259	)

Net change in unrealized appreciation/depreciation		10,379,782			(13,928,238	)

Net realized and unrealized gain (loss)		1,374,129			(23,128,040	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	6,900,089		$	(11,244,821	)

^a	Net of foreign withholding tax of $930,740 and $29,110, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			31

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Austria Capped ETF						iShares MSCI Belgium Capped ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	1,511,969		$	942,322		$	3,586,837		$	3,303,671
Net realized gain (loss)		(3,384,444	)		(5,565,859	)		1,193,969			17,449,249
Net change in unrealized appreciation/depreciation		1,994,024			(2,419,854	)		(1,399,047	)		(19,225,017	)

Net increase (decrease) in net assets resulting from operations		121,549			(7,043,391	)		3,381,759			1,527,903


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,345,976	)		(1,034,120	)		(3,766,140	)		(3,622,114	)

Total distributions to shareholders		(1,345,976	)		(1,034,120	)		(3,766,140	)		(3,622,114	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		48,261,666			18,333,036			307,240,550			165,245,124
Cost of shares redeemed		(42,386,794	)		(17,295,697	)		(328,312,366	)		(174,257,196	)

Net increase (decrease) in net assets from capital share transactions		5,874,872			1,037,339			(21,071,816	)		(9,012,072	)

INCREASE (DECREASE) IN NET ASSETS		4,650,445			(7,040,172	)		(21,456,197	)		(11,106,283	)

NET ASSETS
Beginning of year		56,129,999			63,170,171			153,658,773			164,765,056

End of year	$	60,780,444		$	56,129,999		$	132,202,576		$	153,658,773

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(15,415	)	$	(8,898	)	$	50,163		$	(33,754	)


SHARES ISSUED AND REDEEMED
Shares sold		3,100,000			1,100,000			17,280,000			9,600,000
Shares redeemed		(2,800,000	)		(1,100,000	)		(19,040,000	)		(10,240,000	)

Net increase (decrease) in shares outstanding		300,000			—			(1,760,000	)		(640,000	)

See notes to financial statements.


32		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI France ETF						iShares MSCI Netherlands ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	10,101,361		$	9,397,015		$	5,525,960		$	3,321,529
Net realized gain (loss)		(5,468,375	)		(9,748,837	)		(9,005,653	)		4,194,752
Net change in unrealized appreciation/depreciation		(10,982,251	)		(18,678,233	)		10,379,782			(11,181,656	)

Net increase (decrease) in net assets resulting from operations		(6,349,265	)		(19,030,055	)		6,900,089			(3,665,375	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(10,111,706	)		(9,469,883	)		(4,368,474	)		(2,772,645	)

Total distributions to shareholders		(10,111,706	)		(9,469,883	)		(4,368,474	)		(2,772,645	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		117,552,844			212,178,798			108,170,576			119,225,740
Cost of shares redeemed		(122,177,212	)		(115,462,686	)		(102,397,515	)		(101,596,983	)

Net increase (decrease) in net assets from capital share transactions		(4,624,368	)		96,716,112			5,773,061			17,628,757

INCREASE (DECREASE) IN NET ASSETS		(21,085,339	)		68,216,174			8,304,676			11,190,737

NET ASSETS
Beginning of year		350,138,994			281,922,820			176,282,241			165,091,504

End of year	$	329,053,655		$	350,138,994		$	184,586,917		$	176,282,241

Undistributed net investment income included in net assets at end of year	$	181,248		$	178,273		$	2,099,033		$	932,094


SHARES ISSUED AND REDEEMED
Shares sold		4,800,000			8,200,000			4,550,000			4,600,000
Shares redeemed		(5,000,000	)		(4,400,000	)		(4,300,000	)		(4,100,000	)

Net increase (decrease) in shares outstanding		(200,000	)		3,800,000			250,000			500,000

See notes to financial statements.


FINANCIAL STATEMENTS			33

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Sweden ETF
	Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	11,883,219		$	14,836,137
Net realized gain (loss)		(9,199,802	)		18,941,537
Net change in unrealized appreciation/depreciation		(13,928,238	)		(66,312,736	)

Net decrease in net assets resulting from operations		(11,244,821	)		(32,535,062	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(12,154,414	)		(16,981,496	)

Total distributions to shareholders		(12,154,414	)		(16,981,496	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		49,435,762			177,749,987
Cost of shares redeemed		(72,714,714	)		(201,102,502	)

Net decrease in net assets from capital share transactions		(23,278,952	)		(23,352,515	)

DECREASE IN NET ASSETS		(46,678,187	)		(72,869,073	)

NET ASSETS
Beginning of year		331,386,935			404,256,008

End of year	$	284,708,748		$	331,386,935

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	190,625		$	(364,097	)


SHARES ISSUED AND REDEEMED
Shares sold		1,650,000			5,250,000
Shares redeemed		(2,625,000	)		(6,150,000	)

Net decrease in shares outstanding		(975,000	)		(900,000	)

See notes to financial statements.


34		2016 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, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	15.59		$	17.55		$	17.87		$	14.53		$	18.76

Income from investment operations:
Net investment income^a		0.38			0.25			0.52			0.32			0.35
Net realized and unrealized gain (loss)^b		(0.06	)		(1.96	)		(0.18	)		3.36			(4.09	)

Total from investment operations		0.32			(1.71	)		0.34			3.68			(3.74	)

Less distributions from:
Net investment income		(0.33	)		(0.25	)		(0.66	)		(0.34	)		(0.49	)

Total distributions		(0.33	)		(0.25	)		(0.66	)		(0.34	)		(0.49	)

Net asset value, end of year	$	15.58		$	15.59		$	17.55		$	17.87		$	14.53


Total return		2.11	%		(9.76	)%		1.56	%		25.49	%		(19.81	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	60,780		$	56,130		$	63,170		$	82,223		$	53,757
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.51	%		0.52	%
Ratio of net investment income to average net assets		2.47	%		1.54	%		2.64	%		1.82	%		2.32	%
Portfolio turnover rate^c		15	%		18	%		30	%		26	%		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			35

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Belgium Capped ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	17.00		$	17.02		$	14.36		$	11.97		$	12.60

Income from investment operations:
Net investment income^a		0.34			0.34			0.32			0.42			0.38
Net realized and unrealized gain (loss)^b		1.05			(0.00	)^c		2.95			2.36			(0.33	)

Total from investment operations		1.39			0.34			3.27			2.78			0.05

Less distributions from:
Net investment income		(0.23	)		(0.36	)		(0.61	)		(0.39	)		(0.67	)
Return of capital		—			—			—			—			(0.01	)

Total distributions		(0.23	)		(0.36	)		(0.61	)		(0.39	)		(0.68	)

Net asset value, end of year	$	18.16		$	17.00		$	17.02		$	14.36		$	11.97


Total return		8.20	%		1.95	%		23.05	%		23.43	%		1.11	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	132,203		$	153,659		$	164,765		$	71,216		$	25,386
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.53	%
Ratio of net investment income to average net assets		1.92	%		2.01	%		1.90	%		3.01	%		3.35	%
Portfolio turnover rate^d		19	%		7	%		13	%		24	%		19	%

^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.


36		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI France ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	25.01		$	27.64		$	24.85		$	20.70		$	22.60

Income from investment operations:
Net investment income^a		0.67			0.74			0.66			0.69			0.59
Net realized and unrealized gain (loss)^b		(1.14	)		(2.69	)		2.86			4.14			(1.80	)

Total from investment operations		(0.47	)		(1.95	)		3.52			4.83			(1.21	)

Less distributions from:
Net investment income		(0.70	)		(0.68	)		(0.73	)		(0.68	)		(0.69	)
Return of capital		—			—			—			—			(0.00	)^c

Total distributions		(0.70	)		(0.68	)		(0.73	)		(0.68	)		(0.69	)

Net asset value, end of year	$	23.84		$	25.01		$	27.64		$	24.85		$	20.70


Total return		(1.87	)%		(7.17	)%		14.07	%		23.56	%		(5.05	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	329,054		$	350,139		$	281,923		$	526,839		$	401,626
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		2.77	%		2.85	%		2.36	%		2.94	%		2.91	%
Portfolio turnover rate^d		6	%		6	%		6	%		5	%		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.


FINANCIAL HIGHLIGHTS			37

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Netherlands ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	24.48		$	24.64		$	22.52		$	18.23		$	18.45

Income from investment operations:
Net investment income^a		0.71			0.50			0.45			0.44			0.39
Net realized and unrealized gain (loss)^b		0.08			(0.27	)		2.22			4.19			(0.08	)

Total from investment operations		0.79			0.23			2.67			4.63			0.31

Less distributions from:
Net investment income		(0.49	)		(0.39	)		(0.55	)		(0.34	)		(0.53	)

Total distributions		(0.49	)		(0.39	)		(0.55	)		(0.34	)		(0.53	)

Net asset value, end of year	$	24.78		$	24.48		$	24.64		$	22.52		$	18.23


Total return		3.32	%		0.87	%		11.80	%		25.57	%		1.96	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	184,587		$	176,282		$	165,092		$	253,390		$	78,397
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.53	%
Ratio of net investment income to average net assets		2.97	%		2.01	%		1.78	%		2.09	%		2.21	%
Portfolio turnover rate^c		24	%		6	%		7	%		11	%		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.


38		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Sweden ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	30.26		$	34.11		$	31.97		$	27.32		$	26.82

Income from investment operations:
Net investment income^a		1.05			1.30	^b		1.04			0.97			0.83
Net realized and unrealized gain (loss)^c		(1.63	)		(3.75	)		2.33			4.70			0.58

Total from investment operations		(0.58	)		(2.45	)		3.37			5.67			1.41

Less distributions from:
Net investment income		(1.14	)		(1.40	)		(1.23	)		(1.02	)		(0.86	)
Return of capital		—			—			—			—			(0.05	)

Total distributions		(1.14	)		(1.40	)		(1.23	)		(1.02	)		(0.91	)

Net asset value, end of year	$	28.54		$	30.26		$	34.11		$	31.97		$	27.32


Total return		(1.91	)%		(7.46	)%^b		10.49	%		21.02	%		5.57	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	284,709		$	331,387		$	404,256		$	434,006		$	370,832
Ratio of expenses to average net assets		0.48	%		0.92	%		0.48	%		0.51	%		0.53	%
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 7)		n/a			0.48	%		n/a			n/a			n/a
Ratio of net investment income to average net assets		3.65	%		3.97	%^b		2.97	%		3.13	%		3.17	%
Portfolio turnover rate^d		7	%		4	%		7	%		7	%		7	%

^a	Based on average shares outstanding throughout each period.

^b	Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated IRS compliance fees and professional fees (See Note 7), which resulted in the following increases:

•

Net investment income per share by $0.42

•

Total return by 1.14%

•

Ratio of net investment income to average net assets by 1.31%

^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.


FINANCIAL HIGHLIGHTS			39

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 Articles of Incorporation as subsequently amended and restated.

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 France		Non-diversified
MSCI Netherlands		Non-diversified
MSCI Sweden		Non-diversified

Pursuant to the Company’s organizational documents, the Funds’ officers and directors are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

The following significant accounting policies are consistently followed by each 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. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

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”).

•

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.


40		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

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

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 NAV 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

•

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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION


NOTES TO FINANCIAL STATEMENTS			41

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

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.

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, 2016, 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. Any additional required collateral is delivered to the Funds and any excess collateral is returned by 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 but does not receive interest income on securities received as collateral. 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.


42		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

On July 23, 2014, the U.S. Securities and Exchange Commission (the “SEC”) adopted amendments to Rule 2a-7 under the 1940 Act, which governs the operations of U.S. money market funds. When implemented in October 2016, the change may affect the Funds with regard to the reinvestment of cash collateral received for securities on loan. The Funds may be exposed to additional risk from reinvesting the cash collateral in money market funds that do not maintain a fixed NAV per share of $1.00.

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, 2016, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of August 31, 2016 and the total 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 securities lending agreements which are subject to offset under an MSLA as of August 31, 2016:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Austria Capped
Deutsche Bank Securities Inc.	$	740,896	$	740,896	$	—
Morgan Stanley & Co. LLC		700,299		700,299		—
UBS Securities LLC		90,671		90,671		—

	$	1,531,866	$	1,531,866	$	—

MSCI Belgium Capped
Goldman Sachs & Co.	$	1,829,860	$	1,829,860	$	—
JPMorgan Clearing Corp.		881,061		881,061		—
Morgan Stanley & Co. LLC		898,391		898,391		—
State Street Bank & Trust Company		453,225		453,225		—
UBS Securities LLC		106,525		106,525		—
Wells Fargo Securities LLC		110,274		110,274		—

	$	4,279,336	$	4,279,336	$	—


NOTES TO FINANCIAL STATEMENTS			43

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI France
Goldman Sachs & Co.	$	133,499	$	133,499	$	—

MSCI Netherlands
Credit Suisse Securities (USA) LLC	$	426,979	$	426,979	$	—
Morgan Stanley & Co. LLC		138,504		138,504		—
State Street Bank & Trust Company		1,953		1,953		—

	$	567,436	$	567,436	$	—

Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

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.

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the 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

The SEC 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 the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% 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 the calendar year 2013, each Fund, pursuant to a


44		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

For the year ended August 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Austria Capped	$	1,087
MSCI Belgium Capped		36,495
MSCI France		43,019
MSCI Netherlands		4,688
MSCI Sweden		3,392

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 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.

For the year ended August 31, 2016, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
MSCI Austria Capped	$	404,993	$	—
MSCI Belgium Capped		1,386,520		2,729,909
MSCI France		889,010		472,330
MSCI Netherlands		15,165		2,762,588
MSCI Sweden		2,190,833		2,847,026

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 “Dividends – 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.


NOTES TO FINANCIAL STATEMENTS			45

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, 2016 were as follows:


iShares ETF	Purchases		Sales
MSCI Austria Capped	$	9,355,975	$	8,687,139
MSCI Belgium Capped		34,885,133		35,158,832
MSCI France		21,132,013		22,874,324
MSCI Netherlands		45,914,936		44,751,965
MSCI Sweden		24,396,040		22,059,092

In-kind transactions (see Note 4) for the year ended August 31, 2016 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Austria Capped	$	47,423,694	$	41,659,875
MSCI Belgium Capped		304,984,654		327,029,354
MSCI France		116,268,615		119,495,531
MSCI Netherlands		107,245,271		101,783,421
MSCI Sweden		49,238,278		72,080,625

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 NAV. 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.	*PRINCIPAL RISKS*

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.


46		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 direct and/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.

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.

Investing in the securities of non-U.S. issuers, whether directly or indirectly, 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 a 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 economies and markets of European countries are often closely connected and interdependent, and events in one European country can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of several European countries. Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union.

When a fund concentrates its investments in issuers located in a single country, whether directly or indirectly, 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			47

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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.

6.	*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.

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 NAV per share. The following permanent differences as of August 31, 2016, 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 Austria Capped	$	(4,529,461	)	$	(172,510	)	$	4,701,971
MSCI Belgium Capped		(2,257,982	)		263,220			1,994,762
MSCI France		(341,978	)		13,320			328,658
MSCI Netherlands		(5,123,080	)		9,453			5,113,627
MSCI Sweden		(4,670,469	)		825,917			3,844,552

The tax character of distributions paid during the years ended August 31, 2016 and August 31, 2015 was as follows:


iShares ETF	2016		2015
MSCI Austria Capped
Ordinary income	$	1,345,976	$	1,034,120


MSCI Belgium Capped
Ordinary income	$	3,766,140	$	3,622,114


MSCI France
Ordinary income	$	10,111,706	$	9,469,883


MSCI Netherlands
Ordinary income	$	4,368,474	$	2,772,645


MSCI Sweden
Ordinary income	$	12,154,414	$	16,981,496


48		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2016, 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	$	2,792	$	(69,851,236	)	$	(26,913,872	)	$	(1,476,964	)	$	(98,239,280	)
MSCI Belgium Capped		117,860		(48,691,414	)		(15,348,655	)		(369,727	)		(64,291,936	)
MSCI France		181,248		(40,264,571	)		(86,548,763	)		(2,772,571	)		(129,404,657	)
MSCI Netherlands		2,099,033		(40,864,723	)		(15,546,123	)		(2,436,361	)		(56,748,174	)
MSCI Sweden		—		(42,035,539	)		(75,805,951	)		(6,061,041	)		(123,902,531	)

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the foreign withholding tax reclaims 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, 2016, the following 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 Austria Capped	$	32,264,922	$	7,102,366	$	16,657,011	$	13,826,937	$	69,851,236
MSCI Belgium Capped		12,888,603		5,953,120		10,826,174		19,023,517		48,691,414
MSCI France		26,988,853		3,408,374		7,008,530		2,858,814		40,264,571
MSCI Netherlands		10,460,395		5,819,153		22,256,170		2,329,005		40,864,723
MSCI Sweden		14,620,306		13,686,746		8,483,510		5,244,977		42,035,539

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.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2016, 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.

7.	*FOREIGN WITHHOLDING TAX CLAIMS*

The iShares MSCI Sweden ETF intends to file claims to recover taxes withheld by Sweden on dividend income on the basis that Sweden had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has received payments on certain of the claims resulting from a favorable court ruling that the imposition of a withholding tax by a European Union member state on dividends paid to a nonresident company, including the Fund, while exempting domestic funds from such taxes results in discriminatory tax withholding contrary to the free movement of capital. As a result of the favorable ruling, the Fund has recorded a receivable for claims on all taxes that have been withheld by Sweden since January 1, 2010. The Fund continues to evaluate developments in Sweden for potential impacts to the receivables recorded. Swedish tax claims are disclosed in the statement of assets and liabilities as “Foreign withholding tax claims”. Professional fees associated with the filing of claims in Sweden resulting in the recovery of foreign withholding taxes were approved by the Board as appropriate expenses of the Fund.


NOTES TO FINANCIAL STATEMENTS			49

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The Fund, under the approval of the Board, is seeking a closing agreement with the Internal Revenue Service (“IRS”) to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Fund has accrued a liability for the estimated IRS compliance fee related to foreign withholding tax claims from calendar years 2005 through 2014. Such amounts are disclosed in the statement of assets and liabilities as “IRS compliance fee for foreign withholding tax claims”. The actual IRS compliance fee may differ from the estimate and that difference may be material.

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, except as noted below.

On August 12, 2016, the Board approved several changes for the iShares MSCI Sweden ETF. Effective on or around November 30, 2016, the Fund will track a new underlying index, the MSCI Sweden 25/50 Index, and will cease to track the MSCI Sweden Index. Concurrently, the Fund will change its name to the iShares MSCI Sweden Capped ETF.


50		2016 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 Austria Capped ETF, iShares MSCI Belgium Capped ETF, iShares MSCI France ETF, iShares MSCI Netherlands ETF and iShares MSCI Sweden ETF (the “Funds”) at August 31, 2016, 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, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 21, 2016


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			51

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2016:


iShares ETF	Qualified Dividend Income
MSCI Austria Capped	$	1,892,092
MSCI Belgium Capped		4,612,466
MSCI France		13,376,033
MSCI Netherlands		7,219,368
MSCI Sweden		12,808,917

For the fiscal year ended August 31, 2016, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Austria Capped		1,982,058		178,409
MSCI Belgium Capped		5,103,068		761,322
MSCI France		13,612,909		1,926,372
MSCI Netherlands		7,339,352		930,657
MSCI Sweden		13,468,811		24,686


52		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract

iSHARES^®, INC.

I. iShares MSCI Austria Capped ETF, iShares MSCI Belgium Capped ETF and iShares MSCI Netherlands 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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 Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (including, where applicable, 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 Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the “last quarter” period ended December 31, 2015, to that of such relevant comparison funds for the same periods.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			53

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

The Board noted that each Fund seeks to track its own underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information on certain specific iShares funds requested by the Board, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.

Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Funds, on a Fund-by-Fund basis and in the aggregate, 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 profitability 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.


54		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue periodically, determined to approve 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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objectives and strategies as the Funds and that track the same respective indexes 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 and generally more extensive services provided to the Funds, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			55

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 France ETF and iShares MSCI Sweden ETF


56		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			57

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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, among other things, 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.

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objectives and strategies as the Funds and that track the same respective indexes 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 and generally more extensive services provided to the Funds, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


58		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			59

Supplemental Information (Unaudited)

iSHARES^®, INC.

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources 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 these 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	$	0.314234	$	—	$	0.014179	$	0.328413		96	%		—	%		4	%		100	%
MSCI Belgium Capped		0.230406		—		—		0.230406		100			—			—			100
MSCI France		0.702174		—		—		0.702174		100			—			—			100
MSCI Netherlands		0.490397		—		—		0.490397		100			—			—			100

Premium/Discount Information

The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a 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. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of a 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 the 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 of distributions of premiums and discounts for each of the Funds. The information shown for each Fund is for five calendar years (or from 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.


60		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.07	%
Greater than 2.5% and Less than 3.0%		3		0.22
Greater than 2.0% and Less than 2.5%		5		0.36
Greater than 1.5% and Less than 2.0%		12		0.87
Greater than 1.0% and Less than 1.5%		32		2.31
Greater than 0.5% and Less than 1.0%		162		11.71
Between 0.5% and –0.5%		954		68.99
Less than –0.5% and Greater than –1.0%		140		10.12
Less than –1.0% and Greater than –1.5%		43		3.11
Less than –1.5% and Greater than –2.0%		18		1.30
Less than –2.0% and Greater than –2.5%		7		0.51
Less than –2.5% and Greater than –3.0%		4		0.29
Less than –3.0%		2		0.14

		1,383		100.00	%

iShares MSCI Belgium Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		2		0.14	%
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		4		0.29
Greater than 1.5% and Less than 2.0%		10		0.72
Greater than 1.0% and Less than 1.5%		34		2.46
Greater than 0.5% and Less than 1.0%		167		12.08
Between 0.5% and –0.5%		1,015		73.40
Less than –0.5% and Greater than –1.0%		105		7.59
Less than –1.0% and Greater than –1.5%		35		2.53
Less than –1.5% and Greater than –2.0%		5		0.36
Less than –2.0% and Greater than –2.5%		4		0.29
Less than –2.5%		1		0.07

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			61

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI France ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		1		0.07
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		5		0.36
Greater than 1.5% and Less than 2.0%		15		1.08
Greater than 1.0% and Less than 1.5%		56		4.05
Greater than 0.5% and Less than 1.0%		199		14.39
Between 0.5% and –0.5%		951		68.77
Less than –0.5% and Greater than –1.0%		107		7.74
Less than –1.0% and Greater than –1.5%		29		2.10
Less than –1.5% and Greater than –2.0%		11		0.80
Less than –2.0% and Greater than –2.5%		4		0.29
Less than –2.5% and Greater than –3.0%		2		0.14
Less than –3.0%		1		0.07

		1,383		100.00	%

iShares MSCI Netherlands ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.07	%
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		3		0.22
Greater than 1.5% and Less than 2.0%		10		0.72
Greater than 1.0% and Less than 1.5%		30		2.17
Greater than 0.5% and Less than 1.0%		149		10.77
Between 0.5% and –0.5%		1,028		74.34
Less than –0.5% and Greater than –1.0%		114		8.24
Less than –1.0% and Greater than –1.5%		33		2.39
Less than –1.5% and Greater than –2.0%		9		0.65
Less than –2.0% and Greater than –2.5%		3		0.22
Less than –2.5% and Greater than –3.0%		2		0.14

		1,383		100.00	%


62		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Sweden ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		2		0.14	%
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		4		0.29
Greater than 1.5% and Less than 2.0%		19		1.37
Greater than 1.0% and Less than 1.5%		43		3.11
Greater than 0.5% and Less than 1.0%		172		12.44
Between 0.5% and –0.5%		922		66.67
Less than –0.5% and Greater than –1.0%		140		10.12
Less than –1.0% and Greater than –1.5%		50		3.62
Less than –1.5% and Greater than –2.0%		17		1.23
Less than –2.0% and Greater than –2.5%		5		0.36
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%		1		0.07

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			63

Director and Officer Information

iSHARES^®, INC.

The Board of Directors has responsibility for the overall management and operations of the Funds, 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. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, or his or her resignation or removal. 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 (the “BlackRock-advised Funds”) 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 and a Trustee of iShares U.S. ETF Trust and, as a result, oversees a total of 333 funds (as of August 31, 2016) within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito, Mark Wiedman and Benjamin Archibald, the address of each Director and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Wiedman and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52^nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. 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

^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.


64		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director During the Past 5 Years
Cecilia H. Herbert (67)	Director (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	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 media company (since 2011).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015).

Jane D. Carlin (60)	Director (since 2015); Risk Committee Chair (since 2016).	Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012).

Charles A. Hurty (72)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); 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 (61)	Director (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (55)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

Madhav V. Rajan (52)	Director (since 2011); Equity Plus Committee Chair and 15(c) Committee Chair (since 2016).	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); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).

^c	Robert H. Silver served as an Independent Director until March 31, 2016.


DIRECTOR AND OFFICER INFORMATION			65

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^d



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since January 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).

Jack Gee (56)	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).

Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).

Scott Radell (47)	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 (53)	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).

^d	Manish Mehta served as President until October 15, 2016.


66		2016 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 basis on the Funds’ website.

iS-AR-802-0816

AUGUST 31, 2016


2016 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Eurozone ETF | EZU | BATS

^Ø

iShares MSCI Germany ETF | EWG | NYSE Arca

^Ø

iShares MSCI Italy Capped ETF | EWI | NYSE Arca

^Ø

iShares MSCI Spain Capped ETF | EWP | NYSE Arca

^Ø

iShares MSCI Switzerland Capped ETF | EWL | 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 Eurozone ETF			17
iShares MSCI Germany ETF			21
iShares MSCI Italy Capped ETF			24
iShares MSCI Spain Capped ETF			26
iShares MSCI Switzerland Capped ETF			28
Financial Statements			30
Financial Highlights			37
Notes to Financial Statements			42
Report of Independent Registered Public Accounting Firm			54
Tax Information			55
Board Review and Approval of Investment Advisory Contract			56
Supplemental Information			66
Director and Officer Information			71

Management’s Discussions of Fund Performance

iSHARES^® INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussions of Fund Performance

iSHARES^® MSCI EUROZONE ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(2.53)%		(2.06)%		(2.51)%		(2.53)%		(2.06)%		(2.51)%
5 Years		4.55%		4.66%		4.64%		24.90%		25.59%		25.43%
10 Years		0.23%		0.25%		0.33%		2.37%		2.57%		3.31%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,091.60	$	2.58	$	1,000.00	$	1,022.70	$	2.49		0.49%


6		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussions of Fund Performance (Continued)

iSHARES^® MSCI EUROZONE ETF

The iShares MSCI Eurozone ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries that use the euro as their official currency, 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, 2016, the total return for the Fund was -2.53%, net of fees, while the total return for the Index was -2.51%.

Eurozone stocks, as represented by the Index, declined in U.S. dollar terms. The euro was little changed relative to the U.S. dollar during the reporting period, so currency fluctuations had comparatively little effect on the Index’s performance.

The Eurozone economy grew at a 0.3% annual rate in the second quarter of 2016, while the unemployment rate was 10.1% in July, the latest period for which data was available. Consumer prices in the Eurozone rose 0.2% for the year ended in August of 2016. To head off potential deflation and stimulate growth, the European Central Bank cut interest rates to 0% in March of 2016 and announced a corporate asset purchase program aimed at lowering long-term corporate borrowing costs.

Equities in Italy, Spain, and France, which together accounted for approximately 50% of the Index on average during the reporting period, were especially hard hit by the crisis in the banking sector, and they were leading detractors from the Index’s return. The Netherlands, Belgium, and Germany were the leading contributors to the Index’s performance.

From a sector standpoint, financials detracted the most from the Index’s return for the reporting period, driven by banks, which struggled with the difficult economic environment, negative interest rates, and poor performance on the European Banking Authority’s stress tests. Healthcare, telecommunication services, and consumer discretionary stocks also detracted from the Index’s return.

Stocks in the consumer staples sector contributed the most to the Index’s performance during the reporting period, led by the food, beverages, and tobacco industry and the household and personal products industry. The industrials, information technology, materials, and energy sectors were other sources of strength.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	17.46	%
Industrials	15.12
Consumer Discretionary	13.74
Consumer Staples	12.22
Materials	8.30
Health Care	7.93
Information Technology	7.56
Utilities	5.48
Energy	5.28
Telecommunication Services	4.73
Real Estate**	2.18

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country		Percentage of Total Investments*


France	32.00	%
Germany	30.03
Netherlands	10.85
Spain	10.03
Italy	6.54
Belgium	4.42
Finland	3.21
Ireland	1.60
Austria	0.59
Portugal	0.51

TOTAL	99.78	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussions of Fund Performance

iSHARES^® MSCI GERMANY ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		1.81%		1.92%		1.94%		1.81%		1.92%		1.94%
5 Years		6.77%		6.91%		6.94%		38.75%		39.69%		39.85%
10 Years		3.60%		3.58%		3.72%		42.49%		42.19%		44.13%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,137.70	$	2.63	$	1,000.00	$	1,022.70	$	2.49		0.49%


8		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussions 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, 2016, the total return for the Fund was 1.81%, net of fees, while the total return for the Index was 1.94%.

German equities, as represented by the Index, posted positive returns in U.S. dollar terms. The euro was little changed relative to the U.S. dollar during the reporting period, so currency fluctuations had comparatively little effect on performance.

The German economy expanded at a 3.1% annual rate in the second quarter of 2016, while the unemployment rate was 4.2% in July, the lowest level in more than 35 years. In addition, corporate profits, consumer confidence, and industrial output all improved over the course of the reporting period. At the same time, German inflation ran at just a 0.4% annual rate through August of 2016, well below the European Central Bank’s (“ECB’s”) stated inflation target of 2%. To head off potential deflation and stimulate growth, the ECB cut interest rates to 0% in March 2016 and announced a corporate asset purchase program aimed at lowering long-term corporate borrowing costs.

Stocks in the information technology sector contributed the most to the Index’s performance during the reporting period, led by the software and semiconductors industries. In the industrials sector, industrial conglomerates helped performance the most, followed by transportation and machinery companies. The consumer staples and materials sectors were other sources of strength.

At the other end of the spectrum, the financials sector detracted the most from the Index’s return for the reporting period. Capital market companies and banks were the main sources of weakness, as they struggled with the poor outlook for growth, currency and financial market uncertainty, and the low level of interest rates in the wake of the Brexit vote. Healthcare, consumer discretionary, and utilities stocks were other sources of weakness.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Consumer Discretionary	19.53	%
Materials	14.26
Health Care	14.15
Industrials	14.08
Financials**	13.29
Information Technology	9.94
Telecommunication Services	5.12
Consumer Staples	4.48
Real Estate**	2.77
Utilities	2.38

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Siemens AG Registered	8.22	%
Bayer AG Registered	7.97
SAP SE	7.77
BASF SE	6.72
Allianz SE Registered	6.13
Daimler AG Registered	6.00
Deutsche Telekom AG Registered	4.85
Linde AG	2.86
adidas AG	2.81
Deutsche Post AG Registered	2.77

TOTAL	56.10	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussions of Fund Performance

iSHARES^® MSCI ITALY CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(20.97)%		(21.30)%		(20.78)%		(20.97)%		(21.30)%		(20.78)%
5 Years		(0.93)%		(0.98)%		(1.00)%		(4.55)%		(4.82)%		(4.91)%
10 Years		(6.33)%		(6.37)%		(6.32)%		(48.00)%		(48.22)%		(47.96)%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,020.30	$	2.49	$	1,000.00	$	1,022.70	$	2.49		0.49%


10		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussions 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, 2016, the total return for the Fund was -20.97%, net of fees, while the total return for the Index was -20.78%.

Italian stocks, as measured by the Index, declined during the reporting period. Italy’s currency, the euro, was little changed relative to the U.S. dollar and had little effect on the Index’s performance.

The Italian economy expanded at a 0.8% annual rate in the second quarter of 2016, while the unemployment rate was 11.4% in July, the latest period for which data was available. Consumer prices in Italy declined 0.1% for the year ended in August, well below the European Central Bank’s (“ECB’s”) stated inflation target of 2%. To head off potential deflation and stimulate growth, the ECB cut interest rates to 0% in March 2016 and announced a corporate asset purchase program aimed at lowering long-term corporate borrowing costs.

The financials sector, which made up about 37% of the Index on average during the reporting period, detracted the most from the Index’s performance. Weak performance in this sector was driven by Italian banks, which faced a number of challenges, including large exposure to non-performing loans and a need to raise capital to meet reserve requirements, which led to poor performance on the European Banking Authority’s stress tests. Italian banks faced additional challenges in the form of low interest rates and a difficult macroeconomic environment. Consumer discretionary, telecommunication services, and energy stocks were other detractors from the Index’s performance.

At the other end of the spectrum, utilities stocks contributed the most to the Index’s performance for the reporting period. Electric utilities in particular tend to be capital intensive businesses, which benefited from the ECB’s decision to purchase corporate bonds. Industrials stocks also helped the Index’s performance, led by the electrical equipment segment.

Special Note: At the meeting of the Board of Directors held on September 28-29, 2016, the Board approved a one-for-two reverse stock split for the Fund, effective after the close of trading on November 4, 2016. The impact of the stock split will be to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Fund.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials	31.60	%
Utilities	21.13
Energy	18.91
Industrials	13.65
Consumer Discretionary	10.23
Telecommunication Services	4.48

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Eni SpA	14.73	%
Enel SpA	12.77
Intesa Sanpaolo SpA	11.34
Assicurazioni Generali SpA	4.98
UniCredit SpA	4.70
Atlantia SpA	4.41
Snam SpA	4.40
Terna Rete Elettrica Nazionale SpA	3.96
CNH Industrial NV	3.83
Luxottica Group SpA	3.70

TOTAL	68.82	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussions of Fund Performance

iSHARES^® MSCI SPAIN CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(13.82)%		(13.89)%		(13.42)%		(13.82)%		(13.89)%		(13.42)%
5 Years		(1.01)%		(1.02)%		(0.87)%		(4.94)%		(5.00)%		(4.28)%
10 Years		(0.60)%		(0.63)%		(0.74)%		(5.89)%		(6.09)%		(7.15)%

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.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,070.80	$	2.55	$	1,000.00	$	1,022.70	$	2.49		0.49%


12		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussions 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, 2016, the total return for the Fund was -13.82%, net of fees, while the total return for the Index was -13.42%.

Spanish stock prices, as measured by the Index, declined during the reporting period. Spain’s currency, the euro, was little changed relative to the U.S. dollar and had little effect on the Index’s performance.

The Spanish economy grew at a 3.2% annual rate in the second quarter of 2016, while the unemployment rate fell to 20% in June, the latest period for which data was available. Consumer prices in Spain declined 0.1% for the year ended in August, well below the European Central Bank’s (“ECB’s”) stated inflation target of 2%. To head off potential deflation and stimulate growth, the ECB cut interest rates to 0% in March 2016 and announced a corporate asset purchase program aimed at lowering long-term corporate borrowing costs.

The financials sector, which made up about 38% of the Index on average during the reporting period, detracted the most from the Index’s performance. Weak performance in this sector was driven by Spanish banks, which performed poorly on the European Banking Authority’s stress tests due to concerns about exposure to non-performing loans and the need to raise capital to meet reserve requirements. Additional challenges included low interests rates and a difficult macroeconomic environment. Telecommunication services stocks also detracted from the Index’s return.

Conversely, utilities stocks contributed the most to the Index’s performance for the reporting period, with electric and gas utilities as sources of strength. Consumer discretionary stocks also aided performance, benefiting from the upturn in the Spanish economy in general and retail sales activity in particular. Information technology, healthcare, industrials, and consumer staples were other contributors to the Index’s performance during the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials	35.38	%
Utilities	18.48
Industrials	16.17
Telecommunication Services	9.14
Consumer Discretionary	7.45
Energy	4.46
Information Technology	4.38
Health Care	2.58
Consumer Staples	1.96

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Banco Santander SA	14.41	%
Telefonica SA	9.14
Banco Bilbao Vizcaya Argentaria SA	7.83
Industria de Diseno Textil SA	7.45
Iberdrola SA	6.64
Repsol SA	4.45
Amadeus IT Holding SA Class A	4.38
Abertis Infraestructuras SA	3.84
Aena SA	3.62
Red Electrica Corp. SA	3.49

TOTAL	65.25	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussions of Fund Performance

iSHARES^® MSCI SWITZERLAND CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(2.76)%		(2.63)%		(2.66)%		(2.76)%		(2.63)%		(2.66)%
5 Years		6.71%		6.67%		6.94%		38.37%		38.10%		39.87%
10 Years		5.22%		5.15%		4.72%		66.26%		65.26%		58.58%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,086.90	$	2.57	$	1,000.00	$	1,022.70	$	2.49		0.49%


14		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussions 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, 2016, the total return for the Fund was -2.76%, net of fees, while the total return for the Index was -2.66%.

Swiss stocks, as represented by the Index, declined modestly during the reporting period. The Swiss franc depreciated by approximately 2% relative to the U.S. dollar, which detracted modestly from the Index’s performance in U.S. dollar terms.

The Swiss economy grew at a 2.0% annual rate in the second quarter of 2016. Measures of Swiss consumer confidence declined during the reporting period, while retail sales activity also fell. In addition, the Swiss economy experienced deflation during the reporting period, with consumer prices declining 0.1% for the 12 months ended in August of 2016. On a positive note, the unemployment rate remained comparatively low at 3.2% in August of 2016. To stimulate growth and head off deflation, the Swiss central bank maintained negative interest rates throughout the reporting period.

The healthcare sector, which represented about 31% of the Index on average, was the largest detractor from the Index’s performance for the reporting period. Within the sector, the pharmaceuticals industry hindered the Index’s return. The financials sector also detracted, as Swiss banks struggled with negative interest rates, the poor outlook for growth, concerns about ongoing restructuring, and a need to raise capital to meet reserve requirements. Consumer discretionary, energy, and telecommunication services stocks also hindered the Index’s performance.

The leading contributor to the Index’s return for the reporting period was the consumer staples sector, led by food products companies. Other contributions came from the industrials and materials sectors. Among industrials stocks, electrical equipment and building products companies helped the most. In the materials sector, specialty chemical and fertilizer companies were leading sources of strength.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Health Care	29.83	%
Consumer Staples	22.48
Financials**	18.13
Industrials	11.65
Materials	10.74
Consumer Discretionary	4.91
Telecommunication Services	1.38
Real Estate**	0.88

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Nestle SA Registered	19.51	%
Novartis AG Registered	12.86
Roche Holding AG	12.45
UBS Group AG	4.52
ABB Ltd. Registered	4.27
Syngenta AG Registered	4.01
Zurich Insurance Group AG	3.72
Swiss Re AG	2.96
Cie. Financiere Richemont SA Class A Registered	2.93
LafargeHolcim Ltd. Registered	2.54

TOTAL	69.77	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

About Fund Performance

Shareholder Expenses


16		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EUROZONE ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 97.72%

AUSTRIA — 0.58%
Andritz AG		164,980	$	8,405,479
Erste Group Bank AG		660,571		18,528,871
IMMOEAST AG Escrow^a		105,078		1
IMMOFINANZ AG Escrow^a		68,575		1
OMV AG		332,219		9,294,619
Raiffeisen Bank International AG^a		262,054		3,718,328
Voestalpine AG		254,213		8,400,455

				48,347,754
BELGIUM — 4.40%
Ageas		451,557		15,575,475
Anheuser-Busch InBev SA/NV		1,795,894		222,119,542
Colruyt SA		157,482		8,630,335
Groupe Bruxelles Lambert SA		179,467		15,724,660
KBC Group NV^a		559,645		33,078,760
Proximus SADP		339,892		10,383,751
Solvay SA		165,012		18,085,989
Telenet Group Holding NV^a,b		121,310		5,680,656
UCB SA		283,730		23,261,064
Umicore SA		213,497		12,588,188

				365,128,420
FINLAND — 3.20%
Elisa OYJ		320,163		11,246,576
Fortum OYJ		1,004,240		15,479,649
Kone OYJ Class B		751,880		37,725,138
Metso OYJ		250,108		6,991,797
Neste OYJ		290,346		12,074,737
Nokia OYJ		13,039,606		73,195,185
Nokian Renkaat OYJ		255,855		9,224,102
Orion OYJ Class B		228,046		8,620,288
Sampo OYJ Class A		996,678		42,725,808
Stora Enso OYJ Class R		1,229,379		10,837,378
UPM-Kymmene OYJ		1,191,393		23,897,709
Wartsila OYJ Abp		329,857		13,548,903

				265,567,270
FRANCE — 31.90%
Accor SA		396,091		14,930,591
Aeroports de Paris		67,087		6,911,425
Air Liquide SA		768,742		84,188,768
Airbus Group SE		1,315,933		76,637,252
Alstom SA^a		342,918		9,057,345
ArcelorMittal^a		4,127,866		24,324,889


Security	Shares		Value
Arkema SA		150,372	$	13,403,163
Atos SE		195,141		19,171,401
AXA SA		4,337,257		90,912,224
BNP Paribas SA		2,366,291		120,189,940
Bollore SA		1,925,506		6,943,992
Bouygues SA		460,814		14,591,167
Bureau Veritas SA		597,366		12,787,375
Capgemini SA		364,424		35,449,300
Carrefour SA		1,229,477		30,905,763
Casino Guichard Perrachon SA^b		125,050		6,176,122
Christian Dior SE		121,333		20,945,857
Cie. de Saint-Gobain		1,095,018		47,953,717
Cie. Generale des Etablissements Michelin Class B		409,135		43,425,721
CNP Assurances		372,844		5,992,127
Credit Agricole SA		2,357,571		22,292,562
Danone SA		1,315,471		99,788,309
Dassault Systemes		286,931		24,133,870
Edenred		463,645		10,079,823
Eiffage SA		127,087		9,936,324
Electricite de France SA		561,472		7,178,893
Engie SA		3,289,954		52,361,196
Essilor International SA		458,327		58,116,036
Eurazeo SA		94,026		5,695,797
Eutelsat Communications SA		387,908		7,528,163
Fonciere des Regions		72,769		6,788,449
Gecina SA		90,851		14,191,232
Groupe Eurotunnel SE Registered		1,047,824		11,506,752
Hermes International		59,618		25,138,857
ICADE		80,928		6,235,437
Iliad SA		59,592		12,268,598
Imerys SA		80,108		5,636,043
Ingenico Group SA		123,699		13,300,286
JCDecaux SA		168,549		5,781,818
Kering		169,577		32,097,826
Klepierre		493,022		23,067,817
L’Oreal SA		565,049		106,575,853
Lagardere SCA		266,844		6,498,220
Legrand SA		597,278		35,728,862
LVMH Moet Hennessy Louis Vuitton SE		623,230		105,298,319
Natixis SA		2,097,371		9,264,361
Orange SA		4,431,182		67,563,252
Pernod Ricard SA		474,209		54,346,637


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2016


Security	Shares		Value
Peugeot SA^a		1,080,996	$	15,922,354
Publicis Groupe SA		422,085		31,284,951
Remy Cointreau SA		51,967		4,527,813
Renault SA		429,795		35,092,320
Rexel SA		677,326		10,866,721
Safran SA		699,802		48,853,049
Sanofi		2,604,131		200,327,140
Schneider Electric SE		1,248,414		84,940,783
SCOR SE		356,985		10,486,485
SES SA		814,856		18,686,360
SFR Group SA		243,800		6,476,041
Societe BIC SA		65,562		9,554,620
Societe Generale SA		1,747,151		63,523,530
Sodexo SA		211,063		24,412,155
STMicroelectronics NV		1,422,820		10,622,010
Suez		745,661		11,265,455
Technip SA		244,725		14,437,627
Thales SA		237,330		20,519,640
Total SA		4,975,277		236,886,816
Unibail-Rodamco SE		223,173		61,145,467
Valeo SA		534,304		27,605,798
Veolia Environnement SA		1,035,515		21,987,746
Vinci SA		1,119,140		84,745,562
Vivendi SA		2,589,484		50,124,553
Wendel SA		64,784		7,356,013
Zodiac Aerospace		454,020		10,315,556

				2,645,264,296
GERMANY — 28.14%
adidas AG		421,425		69,911,450
Allianz SE Registered		1,020,799		151,834,909
Axel Springer SE		99,034		5,036,255
BASF SE		2,052,066		166,612,031
Bayer AG Registered		1,847,814		197,506,437
Bayerische Motoren Werke AG		739,216		64,225,744
Beiersdorf AG		226,447		21,036,438
Brenntag AG		346,664		18,837,665
Commerzbank AG		2,363,272		16,597,978
Continental AG		245,689		51,416,203
Covestro AG^c		156,675		8,145,506
Daimler AG Registered		2,153,971		148,928,929
Deutsche Bank AG Registered^a		3,084,897		45,386,949
Deutsche Boerse AG^a		440,933		37,617,409
Deutsche Lufthansa AG Registered		534,165		6,214,002


Security	Shares		Value
Deutsche Post AG Registered		2,165,525	$	68,496,605
Deutsche Telekom AG Registered		7,201,270		120,065,546
Deutsche Wohnen AG Bearer		756,701		28,401,529
E.ON SE		4,480,413		41,202,905
Evonik Industries AG		354,499		11,897,993
Fraport AG Frankfurt Airport Services Worldwide		94,583		5,268,142
Fresenius Medical Care AG & Co. KGaA		490,010		43,299,676
Fresenius SE & Co. KGaA		914,120		66,604,145
GEA Group AG		409,805		21,960,653
Hannover Rueck SE		135,619		13,835,776
HeidelbergCement AG		314,851		29,199,886
Henkel AG & Co. KGaA		230,976		25,892,152
HOCHTIEF AG		45,864		6,157,815
HUGO BOSS AG		149,307		9,104,410
Infineon Technologies AG		2,531,318		42,556,640
K+S AG Registered		427,055		8,927,618
Lanxess AG		203,740		10,855,629
Linde AG		414,797		70,937,019
MAN SE		83,691		8,692,840
Merck KGaA		289,064		30,372,279
METRO AG		396,997		11,761,328
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered		368,429		66,495,208
Osram Licht AG		199,848		10,447,933
ProSiebenSat.1 Media SE Registered		491,000		21,086,574
QIAGEN NV^a		495,635		13,104,794
RTL Group SA^a		88,189		7,410,733
RWE AG^a		1,097,554		17,926,499
SAP SE		2,194,888		192,533,177
Siemens AG Registered		1,709,313		203,796,055
Symrise AG		277,813		20,424,423
Telefonica Deutschland Holding AG		1,646,578		6,755,997
ThyssenKrupp AG		826,415		19,232,160
United Internet AG Registered^d		276,457		11,349,335
Volkswagen AG		73,151		10,628,008
Vonovia SE		1,040,332		40,420,175
Zalando SE^a,c		193,833		7,401,494

				2,333,811,056


18		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2016


Security	Shares		Value
IRELAND — 1.60%
Bank of Ireland^a		61,301,643	$	13,791,484
CRH PLC		1,842,252		62,272,348
Irish Bank Resolution Corp. Ltd.^a		446,666		5
Kerry Group PLC Class A		358,478		30,415,221
Paddy Power Betfair PLC		180,312		21,518,119
Ryanair Holdings PLC		42,432		566,631
Ryanair Holdings PLC ADR		53,355		3,874,107

				132,437,915
ITALY — 6.34%
Assicurazioni Generali SpA		2,606,559		33,094,812
Atlantia SpA		924,633		23,747,407
CNH Industrial NV		2,242,410		16,358,513
Enel SpA		17,212,846		75,878,018
Eni SpA		5,670,283		85,508,819
EXOR SpA		248,850		10,213,219
Ferrari NV		277,300		13,342,006
Fiat Chrysler Automobiles NV		2,001,600		13,810,395
Intesa Sanpaolo SpA		28,261,118		67,043,464
Leonardo-Finmeccanica SpA^a		977,801		11,140,729
Luxottica Group SpA		378,746		18,244,068
Mediobanca SpA		1,268,589		9,395,721
Poste Italiane SpA^c		1,139,781		7,933,941
Prysmian SpA		440,350		10,848,523
Saipem SpA^a		13,519,949		6,187,265
Snam SpA		5,528,234		30,600,626
Telecom Italia SpA/Milano^a		22,862,714		20,714,423
Tenaris SA		1,051,127		14,422,927
Terna Rete Elettrica Nazionale SpA		3,468,803		17,895,164
UniCredit SpA		11,643,519		29,904,123
Unione di Banche Italiane SpA		1,998,832		5,369,590
UnipolSai SpA		2,507,908		4,181,392

				525,835,145
NETHERLANDS — 10.82%
ABN AMRO Group NV^c		518,972		10,649,738
Aegon NV		4,066,294		16,638,932
AerCap Holdings NV^a,b		377,500		15,088,675
Akzo Nobel NV		555,771		37,498,393
Altice NV Class A^a,b		793,399		13,188,442
Altice NV Class B^a		273,806		4,545,299
ASML Holding NV		822,751		87,391,201
Boskalis Westminster		196,755		7,023,302
Gemalto NV		179,893		12,512,215


Security	Shares		Value
Heineken Holding NV		225,786	$	18,120,859
Heineken NV		516,067		46,039,024
ING Groep NV		8,654,512		108,149,110
Koninklijke Ahold Delhaize NV		2,896,055		69,234,922
Koninklijke DSM NV		407,108		28,333,986
Koninklijke KPN NV		7,631,209		24,877,319
Koninklijke Philips NV		2,083,231		60,417,940
Koninklijke Vopak NV		159,189		8,059,906
NN Group NV		708,111		21,037,459
NXP Semiconductors NV^a		657,670		57,888,113
OCI NV^a		211,228		3,691,152
Randstad Holding NV		266,796		12,561,758
RELX NV		2,219,996		39,313,058
Unilever NV CVA		3,639,965		166,680,582
Wolters Kluwer NV		679,963		28,493,729

				897,435,114
PORTUGAL — 0.51%
EDP — Energias de Portugal SA		5,185,635		17,355,372
Galp Energia SGPS SA		1,092,079		15,848,420
Jeronimo Martins SGPS SA		556,901		8,971,890

				42,175,682
SPAIN — 10.00%
Abertis Infraestructuras SA		1,438,186		22,240,700
ACS Actividades de Construccion y Servicios SA		449,947		12,731,163
Aena SA^c		152,825		21,573,961
Amadeus IT Holding SA Class A		986,998		45,284,365
Banco Bilbao Vizcaya Argentaria SA		14,560,351		90,456,100
Banco de Sabadell SA		11,911,398		16,118,570
Banco Popular Espanol SA		7,432,784		10,041,528
Banco Santander SA		32,274,329		144,500,976
Bankia SA		10,480,570		8,824,583
Bankinter SA		1,559,132		11,419,108
CaixaBank SA		5,997,034		16,116,894
Distribuidora Internacional de Alimentacion SA		1,411,361		8,606,167
Enagas SA		428,279		12,556,907
Endesa SA		713,863		14,517,878
Ferrovial SA		1,102,445		21,689,927
Gas Natural SDG SA		795,011		16,385,124
Grifols SA		670,449		14,180,065
Iberdrola SA		12,195,681		80,139,305
Industria de Diseno Textil SA		2,448,023		86,606,774


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2016


Security	Shares		Value
International Consolidated Airlines Group SA		1,852,513	$	9,309,318
Mapfre SA		2,508,207		6,768,685
Red Electrica Corp. SA		961,723		20,677,942
Repsol SA		2,495,797		33,467,498
Telefonica SA		10,035,912		100,932,749
Zardoya Otis SA		439,955		4,140,497
Zardoya Otis SA New^a		19,957		187,818

				829,474,602
UNITED KINGDOM — 0.23%
Coca-Cola European Partners PLC^a		484,355		18,557,084

				18,557,084

TOTAL COMMON STOCKS
(Cost: $9,664,562,825)				8,104,034,338

PREFERRED STOCKS — 1.97%

GERMANY — 1.80%
Bayerische Motoren Werke AG		123,717		9,258,093
Fuchs Petrolub SE		156,916		7,126,921
Henkel AG & Co. KGaA		399,688		52,372,167
Porsche Automobil Holding SE		341,953		17,300,110
Schaeffler AG		367,811		5,685,932
Volkswagen AG		415,123		57,561,706

				149,304,929
ITALY — 0.17%
Intesa Sanpaolo SpA		2,136,401		4,725,519
Telecom Italia SpA/Milano		13,270,531		9,710,491

				14,436,010

TOTAL PREFERRED STOCKS
(Cost: $228,669,382)				163,740,939


Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.24%

MONEY MARKET FUNDS — 0.24%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^e,f,g		19,587,492	$	19,587,492
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^e,f		326,934		326,934

				19,914,426

TOTAL SHORT-TERM INVESTMENTS
(Cost: $19,914,426)				19,914,426


TOTAL INVESTMENTS IN SECURITIES — 99.93%
(Cost: $9,913,146,633)^h				8,287,689,703
Other Assets, Less Liabilities — 0.07%				5,901,145

NET ASSETS — 100.00%			$	8,293,590,848

ADR — 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	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 money market fund.

^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.

^h	The cost of investments for federal income tax purposes was $10,078,274,967. Net unrealized depreciation was $1,790,585,264, of which $233,608,157 represented gross unrealized appreciation on securities and $2,024,193,421 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	8,103,846,513	$	187,818	$	7	$	8,104,034,338
Preferred stocks		163,740,939		—		—		163,740,939
Money market funds		19,914,426		—		—		19,914,426

Total	$	8,287,501,878	$	187,818	$	7	$	8,287,689,703

See notes to financial statements.


20		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GERMANY ETF

August 31, 2016


Security	Shares		Value

COMMON STOCKS — 93.45%

AIR FREIGHT & LOGISTICS — 2.75%
Deutsche Post AG Registered		3,126,637	$	98,897,044

				98,897,044

AIRLINES — 0.24%
Deutsche Lufthansa AG Registered		751,214		8,738,957

				8,738,957

AUTO COMPONENTS — 2.06%
Continental AG		354,537		74,195,207

				74,195,207

AUTOMOBILES — 8.97%
Bayerische Motoren Werke AG		1,067,355		92,735,640
Daimler AG Registered		3,103,305		214,567,369
Volkswagen AG		104,719		15,214,479

				322,517,488

BANKS — 0.67%
Commerzbank AG		3,430,766		24,095,313

				24,095,313

CAPITAL MARKETS — 3.29%
Deutsche Bank AG Registered^a		4,444,910		65,396,318
Deutsche Boerse AG^a		621,733		53,042,037

				118,438,355

CHEMICALS — 11.96%
BASF SE		2,960,569		240,375,512
Covestro AG^b		228,548		11,882,170
Evonik Industries AG		525,789		17,646,972
K+S AG Registered		616,620		12,890,489
Lanxess AG		294,866		15,710,984
Linde AG		598,815		102,407,084
Symrise AG		397,508		29,224,232

				430,137,443

CONSTRUCTION & ENGINEERING — 0.25%
HOCHTIEF AG		66,874		8,978,670

				8,978,670

CONSTRUCTION MATERIALS — 1.17%
HeidelbergCement AG		454,339		42,136,270

				42,136,270


Security	Shares		Value
DIVERSIFIED TELECOMMUNICATION SERVICES — 5.09%
Deutsche Telekom AG Registered		10,393,452	$	173,288,252
Telefonica Deutschland Holding AG		2,396,548		9,833,164

				183,121,416
ELECTRICAL EQUIPMENT — 0.42%
Osram Licht AG		286,715		14,989,288

				14,989,288
FOOD & STAPLES RETAILING — 0.47%
METRO AG		574,318		17,014,593

				17,014,593
HEALTH CARE PROVIDERS & SERVICES — 4.41%
Fresenius Medical Care AG & Co. KGaA		705,544		62,345,312
Fresenius SE & Co. KGaA		1,319,783		96,161,356

				158,506,668
HOUSEHOLD PRODUCTS — 1.04%
Henkel AG & Co. KGaA		334,925		37,544,718

				37,544,718
INDUSTRIAL CONGLOMERATES — 8.17%
Siemens AG Registered		2,465,642		293,970,802

				293,970,802
INSURANCE — 9.25%
Allianz SE Registered		1,473,052		219,103,582
Hannover Rueck SE		194,647		19,857,780
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered		519,178		93,702,855

				332,664,217
INTERNET & DIRECT MARKETING RETAIL — 0.30%
Zalando SE^a,b		278,389		10,630,256

				10,630,256
INTERNET SOFTWARE & SERVICES — 0.45%
United Internet AG Registered^c		396,516		16,278,094

				16,278,094
LIFE SCIENCES TOOLS & SERVICES — 0.52%
QIAGEN NV^a		713,948		18,877,079

				18,877,079
MACHINERY — 1.21%
GEA Group AG		589,567		31,593,749
MAN SE		113,296		11,767,860

				43,361,609


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY ETF

August 31, 2016


Security	Shares		Value
MEDIA — 1.33%
Axel Springer SE		139,232	$	7,080,476
ProSiebenSat.1 Media SE Registered		705,023		30,278,044
RTL Group SA^a		124,979		10,502,285

				47,860,805
METALS & MINING — 0.77%
ThyssenKrupp AG		1,185,502		27,588,760

				27,588,760
MULTI-UTILITIES — 2.36%
E.ON SE		6,448,471		59,301,618
RWE AG^a		1,577,038		25,757,976

				85,059,594
PERSONAL PRODUCTS — 0.84%
Beiersdorf AG		324,854		30,178,236

				30,178,236
PHARMACEUTICALS — 9.14%
Bayer AG Registered		2,665,303		284,885,004
Merck KGaA		416,635		43,776,308

				328,661,312
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.76%
Deutsche Wohnen AG Bearer		1,087,301		40,810,056
Vonovia SE		1,501,726		58,346,786

				99,156,842
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.71%
Infineon Technologies AG		3,647,519		61,322,265

				61,322,265
SOFTWARE — 7.73%
SAP SE		3,167,642		277,862,095

				277,862,095
TEXTILES, APPAREL & LUXURY GOODS — 3.16%
adidas AG		606,857		100,673,318
HUGO BOSS AG		215,405		13,134,919

				113,808,237
TRADING COMPANIES & DISTRIBUTORS — 0.75%
Brenntag AG		498,084		27,065,803

				27,065,803
TRANSPORTATION INFRASTRUCTURE — 0.21%
Fraport AG Frankfurt Airport Services Worldwide		134,194		7,474,419

				7,474,419

TOTAL COMMON STOCKS
(Cost: $4,066,137,228)				3,361,131,855


Security	Shares		Value
PREFERRED STOCKS — 5.97%

AUTO COMPONENTS — 0.23%
Schaeffler AG		536,318	$	8,290,855

				8,290,855
AUTOMOBILES — 3.37%
Bayerische Motoren Werke AG		175,876		13,161,298
Porsche Automobil Holding SE		493,715		24,978,063
Volkswagen AG		597,865		82,901,042

				121,040,403
CHEMICALS — 0.28%
Fuchs Petrolub SE		223,870		10,167,885

				10,167,885
HOUSEHOLD PRODUCTS — 2.09%
Henkel AG & Co. KGaA		574,442		75,270,643

				75,270,643

TOTAL PREFERRED STOCKS
(Cost: $296,945,544)				214,769,786

SHORT-TERM INVESTMENTS — 0.00%

MONEY MARKET FUNDS — 0.00%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		33,859		33,859

				33,859

TOTAL SHORT-TERM INVESTMENTS
(Cost: $33,859)				33,859


TOTAL INVESTMENTS IN SECURITIES — 99.42%
(Cost: $4,363,116,631)^f				3,575,935,500
Other Assets, Less Liabilities — 0.58%				20,966,456

NET ASSETS — 100.00%			$	3,596,901,956

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

^d	Affiliated money market fund.

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

^f	The cost of investments for federal income tax purposes was $4,423,862,208. Net unrealized depreciation was $847,926,708, of which $154,447,231 represented gross unrealized appreciation on securities and $1,002,373,939 represented gross unrealized depreciation on securities.


22		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY ETF

August 31, 2016

Schedule 1 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2016 were as follows:


Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
DAX Index		69		Sep. 2016		Eurex	$	18,358,049	$	20,385,082	$	2,027,033

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,361,131,855	$	—	$	—	$	3,361,131,855
Preferred stocks		214,769,786		—		—		214,769,786
Money market funds		33,859		—		—		33,859

Total	$	3,575,935,500	$	—	$	—	$	3,575,935,500

Derivative financial instruments^a:
Assets:
Futures contracts	$	2,027,033	$	—	$	—	$	2,027,033

Total	$	2,027,033	$	—	$	—	$	2,027,033

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			23

Schedule of Investments

iSHARES^® MSCI ITALY CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 97.93%

AEROSPACE & DEFENSE — 2.67%
Leonardo-Finmeccanica SpA^a		1,079,864	$	12,303,600

				12,303,600
AUTOMOBILES — 6.53%
Ferrari NV		306,645		14,753,910
Fiat Chrysler Automobiles NV^b		2,225,989		15,358,607

				30,112,517
BANKS — 20.09%
Intesa Sanpaolo SpA		22,036,800		52,277,600
Mediobanca SpA		1,559,218		11,548,245
UniCredit SpA		8,431,531		21,654,754
Unione di Banche Italiane SpA		2,664,510		7,157,843

				92,638,442
DIVERSIFIED FINANCIAL SERVICES — 2.65%
EXOR SpA		297,482		12,209,157

				12,209,157
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.23%
Telecom Italia SpA/Milano^a		16,419,595		14,876,731

				14,876,731
ELECTRIC UTILITIES — 16.73%
Enel SpA		13,354,884		58,871,272
Terna Rete Elettrica Nazionale SpA		3,542,928		18,277,567

				77,148,839
ELECTRICAL EQUIPMENT — 2.74%
Prysmian SpA		513,438		12,649,129

				12,649,129
ENERGY EQUIPMENT & SERVICES — 4.18%
Saipem SpA^a		7,661,030		3,505,991
Tenaris SA		1,147,701		15,748,057

				19,254,048
GAS UTILITIES — 4.40%
Snam SpA		3,662,220		20,271,614

				20,271,614
INSURANCE — 8.04%
Assicurazioni Generali SpA		1,807,388		22,947,942
Poste Italiane SpA^c		1,093,234		7,609,930
UnipolSai SpA		3,918,375		6,533,040

				37,090,912


Security	Shares		Value
MACHINERY — 3.83%
CNH Industrial NV		2,420,364	$	17,656,698

				17,656,698
OIL, GAS & CONSUMABLE FUELS — 14.73%
Eni SpA		4,503,372		67,911,605

				67,911,605
TEXTILES, APPAREL & LUXURY GOODS — 3.70%
Luxottica Group SpA		354,171		17,060,298

				17,060,298
TRANSPORTATION INFRASTRUCTURE — 4.41%
Atlantia SpA		791,948		20,339,650

				20,339,650

TOTAL COMMON STOCKS
(Cost: $665,169,600)				451,523,240

PREFERRED STOCKS — 2.06%

BANKS — 0.81%
Intesa Sanpaolo SpA		1,681,094		3,718,423

				3,718,423
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.25%
Telecom Italia SpA/Milano		7,885,573		5,770,137

				5,770,137

TOTAL PREFERRED STOCKS
(Cost: $12,958,023)				9,488,560

SHORT-TERM INVESTMENTS — 3.21%

MONEY MARKET FUNDS — 3.21%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		14,628,660		14,628,660
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		160,632		160,632

				14,789,292

TOTAL SHORT-TERM INVESTMENTS
(Cost: $14,789,292)				14,789,292


24		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ITALY CAPPED ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 103.20%
(Cost: $692,916,915)^g	$	475,801,092
Other Assets, Less Liabilities — (3.20)%		(14,770,470	)

NET ASSETS — 100.00%	$	461,030,622

^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	Affiliated money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $701,459,658. Net unrealized depreciation was $225,658,566, of which $5,370,438 represented gross unrealized appreciation on securities and $231,029,004 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	451,523,240	$	—	$	—	$	451,523,240
Preferred stocks		9,488,560		—		—		9,488,560
Money market funds		14,789,292		—		—		14,789,292

Total	$	475,801,092	$	—	$	—	$	475,801,092

See notes to financial statements.


SCHEDULES OF INVESTMENTS			25

Schedule of Investments

iSHARES^® MSCI SPAIN CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.92%

AIRLINES — 1.69%
International Consolidated Airlines Group SA		2,012,166	$	10,111,612

				10,111,612
BANKS — 33.55%
Banco Bilbao Vizcaya Argentaria SA		7,560,897		46,972,031
Banco de Sabadell SA		11,737,046		15,882,636
Banco Popular Espanol SA^a		8,783,063		11,865,726
Banco Santander SA		19,289,793		86,365,666
Bankia SA		12,375,849		10,420,398
Bankinter SA		1,869,290		13,690,711
CaixaBank SA		5,981,413		16,074,912

				201,272,080
BIOTECHNOLOGY — 2.58%
Grifols SA		731,594		15,473,288

				15,473,288
CONSTRUCTION & ENGINEERING — 5.69%
ACS Actividades de Construccion y Servicios SA		507,589		14,362,132
Ferrovial SA		1,006,594		19,804,117

				34,166,249
DIVERSIFIED TELECOMMUNICATION SERVICES — 9.13%
Telefonica SA		5,446,598		54,777,295

				54,777,295
ELECTRIC UTILITIES — 12.85%
Endesa SA		807,004		16,412,093
Iberdrola SA		6,057,035		39,801,515
Red Electrica Corp. SA		972,154		20,902,218

				77,115,826
FOOD & STAPLES RETAILING — 1.96%
Distribuidora Internacional de Alimentacion SA		1,930,736		11,773,200

				11,773,200
GAS UTILITIES — 5.61%
Enagas SA		542,255		15,898,621
Gas Natural SDG SA		862,550		17,777,098

				33,675,719


Security	Shares		Value
INSURANCE — 1.81%
Mapfre SA		4,017,284	$	10,841,103

				10,841,103
IT SERVICES — 4.38%
Amadeus IT Holding SA Class A		572,090		26,248,009

				26,248,009
MACHINERY — 1.32%
Zardoya Otis SA		801,035		7,538,687
Zardoya Otis SA New^b		40,528		381,414

				7,920,101
OIL, GAS & CONSUMABLE FUELS — 4.45%
Repsol SA		1,991,923		26,710,778

				26,710,778
SPECIALTY RETAIL — 7.44%
Industria de Diseno Textil SA		1,262,107		44,651,139

				44,651,139
TRANSPORTATION INFRASTRUCTURE — 7.46%
Abertis Infraestructuras SA		1,489,801		23,038,896
Aena SA^c		153,712		21,699,176

				44,738,072

TOTAL COMMON STOCKS
(Cost: $916,608,506)				599,474,471

SHORT-TERM INVESTMENTS — 0.01%

MONEY MARKET FUNDS — 0.01%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		61,979		61,979
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		7,135		7,135

				69,114

TOTAL SHORT-TERM INVESTMENTS
(Cost: $69,114)				69,114


26		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SPAIN CAPPED ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.93%
(Cost: $916,677,620)^g	$	599,543,585
Other Assets, Less Liabilities — 0.07%		400,311

NET ASSETS — 100.00%	$	599,943,896

^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 institutional buyers under Rule 144A of the Securities Act of 1933.

^d	Affiliated money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $925,765,070. Net unrealized depreciation was $326,221,485, of which $19,165,386 represented gross unrealized appreciation on securities and $345,386,871 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	599,093,057	$	381,414	$	—	$	599,474,471
Money market funds		69,114		—		—		69,114

Total	$	599,162,171	$	381,414	$	—	$	599,543,585

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Schedule of Investments

iSHARES^® MSCI SWITZERLAND CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 98.83%

BIOTECHNOLOGY — 1.92%
Actelion Ltd. Registered		125,911	$	20,977,691

				20,977,691
BUILDING PRODUCTS — 1.87%
Geberit AG Registered		46,722		20,399,713

				20,399,713
CAPITAL MARKETS — 8.92%
Credit Suisse Group AG Registered		1,869,062		24,367,904
Julius Baer Group Ltd.		296,313		12,433,958
Partners Group Holding AG		25,514		11,711,174
UBS Group AG		3,373,437		48,822,222

				97,335,258
CHEMICALS — 8.10%
EMS-Chemie Holding AG Registered		15,702		8,365,983
Givaudan SA Registered		10,893		22,538,771
Sika AG Bearer		3,002		14,317,207
Syngenta AG Registered		99,209		43,245,855

				88,467,816
CONSTRUCTION MATERIALS — 2.51%
LafargeHolcim Ltd. Registered		515,859		27,379,825

				27,379,825
DIVERSIFIED FINANCIAL SERVICES — 0.51%
Pargesa Holding SA Bearer		80,454		5,551,658

				5,551,658
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.36%
Swisscom AG Registered		31,089		14,868,171

				14,868,171
ELECTRICAL EQUIPMENT — 4.22%
ABB Ltd. Registered		2,123,878		46,063,651

				46,063,651
FOOD PRODUCTS — 22.22%
Aryzta AG		138,299		5,514,788
Barry Callebaut AG Registered		5,469		7,035,587
Chocoladefabriken Lindt & Sprungli AG Participation Certificates		1,572		9,111,536
Chocoladefabriken Lindt & Sprungli AG Registered		151		10,402,718
Nestle SA Registered		2,641,866		210,531,889

				242,596,518
HEALTH CARE EQUIPMENT & SUPPLIES — 0.98%
Sonova Holding AG Registered		77,171		10,689,505

				10,689,505


Security	Shares		Value
INSURANCE — 8.49%
Baloise Holding AG Registered		75,934	$	9,042,062
Swiss Life Holding AG Registered		46,440		11,627,134
Swiss Re AG		378,377		31,963,046
Zurich Insurance Group AG		156,680		40,088,903

				92,721,145
LIFE SCIENCES TOOLS & SERVICES — 1.29%
Lonza Group AG Registered		74,112		14,059,821

				14,059,821
MACHINERY — 1.83%
Schindler Holding AG Participation Certificates		64,521		12,154,941
Schindler Holding AG Registered		41,380		7,824,949

				19,979,890
MARINE — 1.02%
Kuehne + Nagel International AG Registered		79,822		11,154,201

				11,154,201
PHARMACEUTICALS — 25.29%
Galenica AG Registered		2,554		2,965,868
Novartis AG Registered		1,761,318		138,747,151
Roche Holding AG		550,639		134,388,308

				276,101,327
PROFESSIONAL SERVICES — 2.58%
Adecco Group AG Registered		217,083		12,505,112
SGS SA Registered		7,125		15,670,577

				28,175,689
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.87%
Swiss Prime Site AG Registered		108,323		9,536,349

				9,536,349
SPECIALTY RETAIL — 0.62%
Dufry AG Registered^a,b		57,621		6,744,099

				6,744,099
TEXTILES, APPAREL & LUXURY GOODS — 4.23%
Cie. Financiere Richemont SA Class A Registered		547,761		31,581,762
Swatch Group AG (The) Bearer^a		38,397		9,890,877
Swatch Group AG (The) Registered		92,926		4,724,089

				46,196,728

TOTAL COMMON STOCKS (Cost: $1,181,526,260)				1,078,999,055


28		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SWITZERLAND CAPPED ETF

August 31, 2016


Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.42%

MONEY MARKET FUNDS — 0.42%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		4,549,701	$	4,549,701
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		51,921		51,921

				4,601,622

TOTAL SHORT-TERM INVESTMENTS (Cost: $4,601,622)				4,601,622


TOTAL INVESTMENTS IN SECURITIES — 99.25% (Cost: $1,186,127,882)^f				1,083,600,677
Other Assets, Less Liabilities —0.75%				8,134,297

NET ASSETS — 100.00%			$	1,091,734,974

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

^b	Non-income earning security.

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $1,195,429,793. Net unrealized depreciation was $111,829,116, of which $57,234,094 represented gross unrealized appreciation on securities and $169,063,210 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,078,999,055	$	—	$	—	$	1,078,999,055
Money market funds		4,601,622		—		—		4,601,622

Total	$	1,083,600,677	$	—	$	—	$	1,083,600,677

See notes to financial statements.


SCHEDULES OF INVESTMENTS			29

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Eurozone ETF			iShares MSCI Germany ETF			iShares MSCI Italy Capped ETF

ASSETS
Investments, at cost:
Unaffiliated	$	9,893,232,207		$	4,363,082,772		$	678,127,623
Affiliated (Note 2)		19,914,426			33,859			14,789,292

Total cost of investments	$	9,913,146,633		$	4,363,116,631		$	692,916,915

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	8,267,775,277		$	3,575,901,641		$	461,011,800
Affiliated (Note 2)		19,914,426			33,859			14,789,292

Total fair value of investments		8,287,689,703			3,575,935,500			475,801,092
Foreign currency, at value^b		7,777,222			7,138,177			274,164
Receivables:
Investment securities sold		12,368,834			3,433,545			8,998,652
Dividends and interest		2,539,554			118			5,606
Capital shares sold		—			95,404			—
Futures variation margin		—			2,027,033			—
Tax reclaims		10,963,116			13,484,537			325
Foreign withholding tax claims (Note 8)		6,488,796			—			—

Total Assets		8,327,827,225			3,602,114,314			485,079,839


LIABILITIES
Payables:
Investment securities purchased		10,756,009			3,349,774			8,871,757
Due to broker for foreign currency pledged for futures, at value^b		—			291,311			—
Collateral for securities on loan (Note 1)		19,587,492			—			14,628,660
Capital shares redeemed		—			—			334,795
Securities related to in-kind transactions (Note 4)		284,025			—			—
Professional fees (Note 8)		37,876			—			—
Investment advisory fees (Note 2)		3,570,975			1,571,273			214,005

Total Liabilities		34,236,377			5,212,358			24,049,217


NET ASSETS	$	8,293,590,848		$	3,596,901,956		$	461,030,622


Net assets consist of:
Paid-in capital	$	10,372,614,001		$	4,578,810,943		$	873,867,863
Undistributed net investment income		25,909,364			—			—
Undistributed net realized loss		(479,192,573	)		(196,440,259	)		(195,721,236	)
Net unrealized depreciation		(1,625,739,944	)		(785,468,728	)		(217,116,005	)

NET ASSETS	$	8,293,590,848		$	3,596,901,956		$	461,030,622


Shares outstanding^c		242,500,000			137,400,000			40,800,000


Net asset value per share	$	34.20		$	26.18		$	11.30

^a	Securities on loan with values of $15,270,066, $ — and $13,826,444, respectively. See Note 1.

^b	Cost of foreign currency including currency pledged to broker: $7,834,199, $6,950,722 and $274,509, respectively.

^c	$0.001 par value, number of shares authorized: 1 billion, 482.2 million and 295.4 million, respectively.

See notes to financial statements.


30		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Spain Capped ETF			iShares MSCI Switzerland Capped ETF

ASSETS
Investments, at cost:
Unaffiliated	$	916,608,506		$	1,181,526,260
Affiliated (Note 2)		69,114			4,601,622

Total cost of investments	$	916,677,620		$	1,186,127,882

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	599,474,471		$	1,078,999,055
Affiliated (Note 2)		69,114			4,601,622

Total fair value of investments		599,543,585			1,083,600,677
Foreign currency, at value^b		409,280			1,331,240
Receivables:
Investment securities sold		5,258,014			3,763,089
Interest		83			603
Tax reclaims		92,780			11,948,504

Total Assets		605,303,742			1,100,644,113


LIABILITIES
Payables:
Investment securities purchased		5,029,593			3,899,247
Collateral for securities on loan (Note 1)		61,979			4,549,701
Investment advisory fees (Note 2)		268,274			460,191

Total Liabilities		5,359,846			8,909,139


NET ASSETS	$	599,943,896		$	1,091,734,974


Net assets consist of:
Paid-in capital	$	1,041,272,779		$	1,284,734,064
Undistributed net investment income		7,780,534			510,619
Undistributed net realized loss		(131,970,464	)		(90,474,348	)
Net unrealized depreciation		(317,138,953	)		(103,035,361	)

NET ASSETS	$	599,943,896		$	1,091,734,974


Shares outstanding^c		22,650,000			36,125,000


Net asset value per share	$	26.49		$	30.22

^a	Securities on loan with values of $57,746 and $4,294,436, respectively. See Note 1.

^b	Cost of foreign currency: $414,535 and $1,337,666, respectively.

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

See notes to financial statements.


FINANCIAL STATEMENTS			31

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Eurozone ETF			iShares MSCI Germany ETF			iShares MSCI Italy Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	360,570,216		$	121,067,906		$	26,672,459
Dividends — affiliated (Note 2)		9,930			4,746			1,256
Miscellaneous income		21,311			—			—
Securities lending income — affiliated — net (Note 2)		2,829,291			181,203			183,065
Foreign withholding tax claims (Note 8)		6,488,910			—			—

Total investment income		369,919,658			121,253,855			26,856,780


EXPENSES
Investment advisory fees (Note 2)		56,101,620			24,428,612			4,260,265
Professional fees (Note 8)		37,876			—			—

Total expenses		56,139,496			24,428,612			4,260,265

Net investment income		313,780,162			96,825,243			22,596,515


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(179,288,298	)		(61,776,838	)		(77,931,236	)
In-kind redemptions — unaffiliated		(173,841,776	)		(135,895,299	)		(90,275,907	)
Futures contracts		—			(4,686,193	)		—
Foreign currency transactions		(566,326	)		(217,870	)		(187,840	)

Net realized loss		(353,696,400	)		(202,576,200	)		(168,394,983	)

Net change in unrealized appreciation/depreciation on:
Investments		(558,743,796	)		32,258,427			(101,935,060	)
Futures contracts		—			4,372,096			—
Translation of assets and liabilities in foreign currencies		(228,923	)		160,391			(7,346	)

Net change in unrealized appreciation/depreciation		(558,972,719	)		36,790,914			(101,942,406	)

Net realized and unrealized loss		(912,669,119	)		(165,785,286	)		(270,337,389	)

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(598,888,957	)	$	(68,960,043	)	$	(247,740,874	)

^a	Net of foreign withholding tax of $53,367,824, $18,202,301 and $4,290,513, respectively.

See notes to financial statements.


32		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Spain Capped ETF			iShares MSCI Switzerland Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	44,033,583		$	35,938,842
Dividends — affiliated (Note 2)		1,202			1,696
Miscellaneous income		21,620			—
Securities lending income — affiliated — net (Note 2)		144,962			326,153

Total investment income		44,201,367			36,266,691


EXPENSES
Investment advisory fees (Note 2)		5,289,563			5,530,695

Total expenses		5,289,563			5,530,695

Net investment income		38,911,804			30,735,996

NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(72,886,367	)		(37,591,234	)
In-kind redemptions — unaffiliated		(209,893,862	)		26,285,223
Foreign currency transactions		205,873			(48,918	)

Net realized loss		(282,574,356	)		(11,354,929	)

Net change in unrealized appreciation/depreciation on:
Investments		23,014,708			(51,746,339	)
Translation of assets and liabilities in foreign currencies		(25,025	)		(163,061	)

Net change in unrealized appreciation/depreciation		22,989,683			(51,909,400	)

Net realized and unrealized loss		(259,584,673	)		(63,264,329	)

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(220,672,869	)	$	(32,528,333	)

^a	Net of foreign withholding tax of $3,903,490 and $5,011,622, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			33

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Eurozone ETF						iShares MSCI Germany ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	313,780,162		$	225,781,969		$	96,825,243		$	121,304,245
Net realized gain (loss)		(353,696,400	)		48,868,113			(202,576,200	)		126,916,177
Net change in unrealized appreciation/depreciation		(558,972,719	)		(1,145,598,692	)		36,790,914			(857,695,814	)

Net decrease in net assets resulting from operations		(598,888,957	)		(870,948,610	)		(68,960,043	)		(609,475,392	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(293,025,178	)		(233,277,080	)		(97,625,093	)		(127,874,456	)

Total distributions to shareholders		(293,025,178	)		(233,277,080	)		(97,625,093	)		(127,874,456	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		5,702,626,726			5,243,729,213			800,372,366			3,934,318,439
Cost of shares redeemed		(6,651,737,571	)		(2,707,524,817	)		(3,643,941,594	)		(1,387,346,200	)

Net increase (decrease) in net assets from capital share transactions		(949,110,845	)		2,536,204,396			(2,843,569,228	)		2,546,972,239

INCREASE (DECREASE) IN NET ASSETS		(1,841,024,980	)		1,431,978,706			(3,010,154,364	)		1,809,622,391

NET ASSETS
Beginning of year		10,134,615,828			8,702,637,122			6,607,056,320			4,797,433,929

End of year	$	8,293,590,848		$	10,134,615,828		$	3,596,901,956		$	6,607,056,320

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	25,909,364		$	5,210,075		$	—		$	(4,090,809	)


SHARES ISSUED AND REDEEMED
Shares sold		161,500,000			136,000,000			32,400,000			135,600,000
Shares redeemed		(200,200,000	)		(72,500,000	)		(145,800,000	)		(50,400,000	)

Net increase (decrease) in shares outstanding		(38,700,000	)		63,500,000			(113,400,000	)		85,200,000

See notes to financial statements.


34		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Italy Capped ETF						iShares MSCI Spain Capped ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	22,596,515		$	24,227,811		$	38,911,804		$	65,134,793
Net realized loss		(168,394,983	)		(44,864,340	)		(282,574,356	)		(29,776,219	)
Net change in unrealized appreciation/depreciation		(101,942,406	)		(76,897,587	)		22,989,683			(436,158,087	)

Net decrease in net assets resulting from operations		(247,740,874	)		(97,534,116	)		(220,672,869	)		(400,799,513	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(22,347,848	)		(24,941,571	)		(41,241,786	)		(77,875,309	)
Return of capital		(780,522	)		—			—			—

Total distributions to shareholders		(23,128,370	)		(24,941,571	)		(41,241,786	)		(77,875,309	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		265,361,545			342,752,870			42,497,240			635,385,021
Cost of shares redeemed		(610,898,923	)		(699,700,191	)		(846,729,289	)		(963,657,247	)

Net decrease in net assets from capital share transactions		(345,537,378	)		(356,947,321	)		(804,232,049	)		(328,272,226	)

DECREASE IN NET ASSETS		(616,406,622	)		(479,423,008	)		(1,066,146,704	)		(806,947,048	)

NET ASSETS
Beginning of year		1,077,437,244			1,556,860,252			1,666,090,600			2,473,037,648

End of year	$	461,030,622		$	1,077,437,244		$	599,943,896		$	1,666,090,600

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	—		$	(60,827	)	$	7,780,534		$	9,904,643


SHARES ISSUED AND REDEEMED
Shares sold		17,850,000			23,100,000			1,500,000			18,075,000
Shares redeemed		(50,100,000	)		(47,250,000	)		(30,975,000	)		(26,850,000	)

Net decrease in shares outstanding		(32,250,000	)		(24,150,000	)		(29,475,000	)		(8,775,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			35

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Switzerland Capped ETF
	Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	30,735,996		$	28,397,908
Net realized gain (loss)		(11,354,929	)		173,784,011
Net change in unrealized appreciation/depreciation		(51,909,400	)		(251,839,482	)

Net decrease in net assets resulting from operations		(32,528,333	)		(49,657,563	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(29,917,479	)		(28,746,817	)

Total distributions to shareholders		(29,917,479	)		(28,746,817	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		179,880,379			875,666,580
Cost of shares redeemed		(225,863,531	)		(669,255,531	)

Net increase (decrease) in net assets from capital share transactions		(45,983,152	)		206,411,049

INCREASE (DECREASE) IN NET ASSETS		(108,428,964	)		128,006,669

NET ASSETS
Beginning of year		1,200,163,938			1,072,157,269

End of year	$	1,091,734,974		$	1,200,163,938

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	510,619		$	(258,980	)


SHARES ISSUED AND REDEEMED
Shares sold		5,875,000			25,875,000
Shares redeemed		(7,375,000	)		(20,125,000	)

Net increase (decrease) in shares outstanding		(1,500,000	)		5,750,000

See notes to financial statements.


36		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Eurozone ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	36.04		$	39.98		$	34.64		$	29.09		$	31.55

Income from investment operations:
Net investment income^a		0.92	^b		0.96			1.18			0.92			1.02
Net realized and unrealized gain (loss)^c		(1.84	)		(3.95	)		5.10			5.55			(2.38	)

Total from investment operations		(0.92	)		(2.99	)		6.28			6.47			(1.36	)

Less distributions from:
Net investment income		(0.92	)		(0.95	)		(0.94	)		(0.92	)		(1.10	)

Total distributions		(0.92	)		(0.95	)		(0.94	)		(0.92	)		(1.10	)

Net asset value, end of year	$	34.20		$	36.04		$	39.98		$	34.64		$	29.09


Total return		(2.53	)%^b		(7.62	)%		18.02	%		22.43	%		(3.99	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	8,293,591		$	10,134,616		$	8,702,637		$	3,539,980		$	794,226
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.53	%
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Notes 8)		0.48	%		n/a			n/a			n/a			n/a
Ratio of net investment income to average net assets		2.69	%^b		2.50	%		2.89	%		2.74	%		3.55	%
Portfolio turnover rate^d		4	%		5	%		7	%		5	%		7	%

^a	Based on average shares outstanding throughout each period.

^b	Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees (See Note 8), which resulted in the following increases for the year ended August 31, 2016:

•

Net investment income per share by $0.02.

•

Total return by 0.08%.

•

Ratio of net investment income to average net assets by 0.06%.

^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.


FINANCIAL HIGHLIGHTS			37

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Germany ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	26.34		$	28.97		$	25.61		$	21.34		$	21.02

Income from investment operations:
Net investment income^a		0.49			0.58			0.59			0.46			0.56
Net realized and unrealized gain (loss)^b		(0.04	)		(2.70	)		3.40			4.24			0.34

Total from investment operations		0.45			(2.12	)		3.99			4.70			0.90

Less distributions from:
Net investment income		(0.61	)		(0.51	)		(0.63	)		(0.43	)		(0.58	)

Total distributions		(0.61	)		(0.51	)		(0.63	)		(0.43	)		(0.58	)

Net asset value, end of year	$	26.18		$	26.34		$	28.97		$	25.61		$	21.34


Total return		1.81	%		(7.50	)%		15.41	%		22.11	%		4.55	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,596,902		$	6,607,056		$	4,797,434		$	4,655,875		$	2,797,029
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		1.90	%		2.03	%		1.95	%		1.88	%		2.72	%
Portfolio turnover rate^c		3	%		3	%		6	%		4	%		4	%

^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.


38		2016 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, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	14.75		$	16.02		$	13.06		$	11.78		$	13.58

Income from investment operations:
Net investment income^a		0.33			0.35			0.41			0.36			0.41
Net realized and unrealized gain (loss)^b		(3.41	)		(1.25	)		2.89			1.23			(1.79	)

Total from investment operations		(3.08	)		(0.90	)		3.30			1.59			(1.38	)

Less distributions from:
Net investment income		(0.36	)		(0.37	)		(0.34	)		(0.30	)		(0.42	)
Return of capital		(0.01	)		—			—			(0.01	)		(0.00	)^c

Total distributions		(0.37	)		(0.37	)		(0.34	)		(0.31	)		(0.42	)

Net asset value, end of year	$	11.30		$	14.75		$	16.02		$	13.06		$	11.78


Total return		(20.97	)%		(5.66	)%		25.20	%		13.58	%		(9.98	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	461,031		$	1,077,437		$	1,556,860		$	717,122		$	196,212
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.53	%
Ratio of net investment income to average net assets		2.54	%		2.34	%		2.49	%		2.78	%		3.41	%
Portfolio turnover rate^d		16	%		22	%		24	%		45	%		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	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			39

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Spain Capped ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	31.96		$	40.61		$	30.44		$	26.28		$	35.89

Income from investment operations:
Net investment income^a		1.00			1.32			1.80			1.33			2.12
Net realized and unrealized gain (loss)^b		(5.40	)		(8.35	)		9.53			4.07			(8.93	)

Total from investment operations		(4.40	)		(7.03	)		11.33			5.40			(6.81	)

Less distributions from:
Net investment income		(1.07	)		(1.62	)		(1.16	)		(1.24	)		(2.80	)

Total distributions		(1.07	)		(1.62	)		(1.16	)		(1.24	)		(2.80	)

Net asset value, end of year	$	26.49		$	31.96		$	40.61		$	30.44		$	26.28


Total return		(13.82	)%		(17.63	)%		37.39	%		20.88	%		(19.36	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	599,944		$	1,666,091		$	2,473,038		$	417,778		$	195,093
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		3.53	%		3.70	%		4.48	%		4.45	%		7.60	%
Portfolio turnover rate^c		9	%		15	%		15	%		24	%		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.


40		2016 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, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	31.90		$	33.64		$	29.36		$	23.85		$	24.67

Income from investment operations:
Net investment income^a		0.81			0.83			0.80			0.67			0.63
Net realized and unrealized gain (loss)^b		(1.70	)		(1.77	)		4.27			5.44			(0.80	)

Total from investment operations		(0.89	)		(0.94	)		5.07			6.11			(0.17	)

Less distributions from:
Net investment income		(0.79	)		(0.80	)		(0.79	)		(0.60	)		(0.65	)

Total distributions		(0.79	)		(0.80	)		(0.79	)		(0.60	)		(0.65	)

Net asset value, end of year	$	30.22		$	31.90		$	33.64		$	29.36		$	23.85


Total return		(2.76	)%		(2.92	)%		17.21	%		25.71	%		(0.53	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,091,735		$	1,200,164		$	1,072,157		$	902,860		$	554,570
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		2.68	%		2.49	%		2.41	%		2.38	%		2.73	%
Portfolio turnover rate^c		6	%		7	%		5	%		13	%		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.


FINANCIAL HIGHLIGHTS			41

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 Eurozone		Diversified
MSCI Germany		Non-diversified
MSCI Italy Capped		Non-diversified
MSCI Spain Capped		Non-diversified
MSCI Switzerland Capped		Non-diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•


42		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

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

•

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			43

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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, 2016 are reflected in tax reclaims 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.

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


44		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. 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.


NOTES TO FINANCIAL STATEMENTS			45

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2016:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount^b
MSCI Eurozone
Goldman Sachs & Co.	$	4,611,471	$	4,611,471	$	—
Merrill Lynch, Pierce, Fenner & Smith		531,601		531,601		—
Morgan Stanley & Co. LLC		1,238,857		1,223,004		(15,853	)
National Financial Services LLC		6,677,748		6,677,748		—
State Street Bank & Trust Company		645,739		645,739		—
UBS Securities LLC		1,564,650		1,564,650		—

	$	15,270,066	$	15,254,213	$	(15,853	)

MSCI Italy Capped
Deutsche Bank Securities Inc.	$	27,088	$	27,088	$	—
Wells Fargo Securities LLC		13,799,356		13,799,356		—

	$	13,826,444	$	13,826,444	$	—

MSCI Spain Capped
UBS Securities LLC	$	57,746	$	57,746	$	—

	$	57,746	$	57,746	$	—

MSCI Switzerland Capped
JPMorgan Clearing Corp.	$	911,886	$	911,886	$	—
State Street Bank & Trust Company		3,382,550		3,382,550		—

	$	4,294,436	$	4,294,436	$	—

Additional collateral is delivered to the Funds on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty.

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


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


46		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Eurozone	$	710,939
MSCI Germany		49,438
MSCI Italy Capped		47,213
MSCI Spain Capped		34,326
MSCI Switzerland Capped		81,689

For the year ended August 31, 2016, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
MSCI Eurozone	$	23,364,421	$	29,426,428
MSCI Germany		4,004,205		6,399,331
MSCI Italy Capped		8,617,298		4,426,292
MSCI Spain Capped		15,349,772		4,661,847
MSCI Switzerland Capped		13,043,506		7,416,866


NOTES TO FINANCIAL STATEMENTS			47

Notes to 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, 2016 were as follows:


iShares ETF	Purchases		Sales
MSCI Eurozone	$	663,505,658	$	429,886,543
MSCI Germany		182,093,185		178,774,180
MSCI Italy Capped		142,302,471		161,427,913
MSCI Spain Capped		103,403,465		204,249,271
MSCI Switzerland Capped		68,284,891		74,263,708

In-kind transactions (see Note 4) for the year ended August 31, 2016 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Eurozone	$	5,330,745,117	$	6,501,707,629
MSCI Germany		780,355,626		3,619,336,473
MSCI Italy Capped		249,483,858		583,956,966
MSCI Spain Capped		37,005,789		760,904,216
MSCI Switzerland Capped		175,015,591		219,047,030

4.	*CAPITAL SHARE TRANSACTIONS*


48		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

5.	*FUTURES CONTRACTS*

Each Fund may purchase or sell futures contracts in an effort to help such Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy or 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.

The following table shows the value of futures contracts held by the iShares MSCI Germany ETF as of August 31, 2016 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 depreciation^a	$	2,027,033

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 Germany ETF during the year ended August 31, 2016 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	$	(4,686,193	)	$	4,372,096

The following table shows the average quarter-end balances of open futures contracts for the iShares MSCI Germany ETF for the year ended August 31, 2016:


Average value of contracts purchased	$	26,820,835

6.	*PRINCIPAL RISKS*


NOTES TO FINANCIAL STATEMENTS			49

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 and/or indirect 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.

Investing in the securities of non-U.S. issuers, whether directly or indirectly, 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.

CREDIT RISK


50		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 Eurozone	$	(310,744,940	)	$	(55,695	)	$	310,800,635
MSCI Germany		(247,167,146	)		4,890,659			242,276,487
MSCI Italy Capped		(114,953,402	)		(187,840	)		115,141,242
MSCI Spain Capped		(270,057,391	)		205,873			269,851,518
MSCI Switzerland Capped		23,342,740			(48,918	)		(23,293,822	)

The tax character of distributions paid during the years ended August 31, 2016 and August 31, 2015 was as follows:


iShares ETF	2016		2015
MSCI Eurozone
Ordinary income	$	293,025,178	$	233,277,080


MSCI Germany
Ordinary income	$	97,625,093	$	127,874,456


MSCI Italy Capped
Ordinary income	$	22,347,848	$	24,941,571
Return of capital		780,522		—

	$	23,128,370	$	24,941,571


MSCI Spain Capped
Ordinary income	$	41,241,786	$	77,875,309


MSCI Switzerland Capped
Ordinary income	$	29,917,479	$	28,746,817


NOTES TO FINANCIAL STATEMENTS			51

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2016, 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 Eurozone	$	19,617,289	$	(219,593,909	)	$	(1,784,406,457	)	$	(94,640,076	)	$	(2,079,023,153	)
MSCI Germany		—		(129,902,809	)		(848,241,338	)		(3,764,840	)		(981,908,987	)
MSCI Italy Capped		—		(99,044,255	)		(225,658,748	)		(88,134,238	)		(412,837,241	)
MSCI Spain Capped		7,780,534		(81,371,519	)		(326,226,403	)		(41,511,495	)		(441,328,883	)
MSCI Switzerland Capped		618,789		(48,149,768	)		(112,337,272	)		(33,130,839	)		(192,999,090	)

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, the foreign withholding tax reclaims, 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, 2016, the following 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 Eurozone	$	94,683,428	$	26,644,200	$	68,035,542	$	30,230,739	$	219,593,909
MSCI Germany		41,405,856		27,790,050		28,490,949		32,215,954		129,902,809
MSCI Italy Capped		68,671,316		2,743,650		18,169,627		9,459,662		99,044,255
MSCI Spain Capped		51,684,017		5,946,927		15,120,672		8,619,903		81,371,519
MSCI Switzerland Capped		15,786,844		2,837,786		22,569,380		6,955,758		48,149,768

Must be utilized prior to losses subject to expiration.

8.	*FOREIGN WITHHOLDING TAX CLAIMS*

The iShares MSCI Eurozone ETF intends to file claims to recover taxes withheld by Finland on dividend income on the basis that Finland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has recorded a receivable for all recoverable taxes withheld by Finland based upon recent favorable determinations issued by the Finnish Tax Authority. Withholding tax claims may be for the current year and potentially for a limited number of prior calendar years, depending upon the member state’s statute of limitation on taxes. The Fund continues to evaluate developments in Finland for potential impact to the receivables recorded. Such foreign withholding tax claims are disclosed in the statement of assets and liabilities and statement of operations. Professional fees associated with the filing of these claims resulting in the recovery of foreign withholding taxes were approved by the Board as appropriate expenses of the Fund.


52		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The Internal Revenue Service has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.

9.	*SUBSEQUENT EVENTS*

At the meeting of the Board held on September 28-29, 2016, the Board approved a one-for-two reverse stock split for the iShares MSCI Italy Capped ETF, effective after the close of trading on November 4, 2016. The impact of the stock split will be to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Fund.


NOTES TO FINANCIAL STATEMENTS			53

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 Eurozone ETF, iShares MSCI Germany ETF, iShares MSCI Italy Capped ETF, iShares MSCI Spain Capped ETF and iShares MSCI Switzerland Capped ETF (the “Funds”) at August 31, 2016, 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, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 21, 2016


54		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2016:


iShares ETF	Qualified Dividend Income
MSCI Eurozone	$	405,965,202
MSCI Germany		130,480,278
MSCI Italy Capped		30,644,109
MSCI Spain Capped		47,710,081
MSCI Switzerland Capped		39,291,051

For the fiscal year ended August 31, 2016, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Eurozone	$	413,927,139	$	50,620,573
MSCI Germany		139,279,576		18,153,495
MSCI Italy Capped		30,962,972		4,290,513
MSCI Spain Capped		47,958,195		3,900,934
MSCI Switzerland Capped		40,950,464		5,011,622


TAX INFORMATION			55

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI Eurozone 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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 Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (including, where applicable, 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 Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the “last quarter” period ended December 31, 2015, to that of such relevant comparison funds for the same periods.


56		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

The Board noted that the Fund seeks to track its own underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information on certain specific iShares funds requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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 its 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 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 profitability 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.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			57

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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.


58		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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.

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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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 (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			59

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


60		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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, among other things, 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 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.

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			61

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 Italy Capped ETF, iShares MSCI Spain Capped ETF and iShares MSCI Switzerland Capped ETF


62		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			63

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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.


64		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			65

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 Eurozone	$	0.917807	$	—	$	—	$	0.917807		100	%		—	%		—	%		100	%
MSCI Spain Capped		1.073865		—		—		1.073865		100			—			—			100

Premium/Discount Information


66		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Eurozone ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		2		0.14
Greater than 2.0% and Less than 2.5%		5		0.36
Greater than 1.5% and Less than 2.0%		14		1.01
Greater than 1.0% and Less than 1.5%		43		3.11
Greater than 0.5% and Less than 1.0%		201		14.54
Between 0.5% and –0.5%		952		68.85
Less than –0.5% and Greater than –1.0%		113		8.17
Less than –1.0% and Greater than –1.5%		27		1.95
Less than –1.5% and Greater than –2.0%		15		1.08
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%		1		0.07

		1,383		100.00	%

iShares MSCI Germany ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		1		0.07	%
Greater than 2.0% and Less than 2.5%		5		0.36
Greater than 1.5% and Less than 2.0%		16		1.16
Greater than 1.0% and Less than 1.5%		36		2.60
Greater than 0.5% and Less than 1.0%		171		12.36
Between 0.5% and –0.5%		991		71.67
Less than –0.5% and Greater than –1.0%		110		7.95
Less than –1.0% and Greater than –1.5%		33		2.39
Less than –1.5% and Greater than –2.0%		12		0.87
Less than –2.0% and Greater than –2.5%		3		0.22
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

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			67

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Italy Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
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%		3		0.22
Greater than 2.0% and Less than 2.5%		4		0.29
Greater than 1.5% and Less than 2.0%		20		1.45
Greater than 1.0% and Less than 1.5%		74		5.35
Greater than 0.5% and Less than 1.0%		233		16.86
Between 0.5% and –0.5%		847		61.24
Less than –0.5% and Greater than –1.0%		126		9.11
Less than –1.0% and Greater than –1.5%		45		3.25
Less than –1.5% and Greater than –2.0%		14		1.01
Less than –2.0% and Greater than –2.5%		6		0.43
Less than –2.5% and Greater than –3.0%		5		0.36
Less than –3.0%		1		0.07

		1,383		100.00	%

iShares MSCI Spain Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		1		0.07
Greater than 2.0% and Less than 2.5%		10		0.72
Greater than 1.5% and Less than 2.0%		12		0.87
Greater than 1.0% and Less than 1.5%		62		4.48
Greater than 0.5% and Less than 1.0%		204		14.76
Between 0.5% and –0.5%		863		62.41
Less than –0.5% and Greater than –1.0%		144		10.41
Less than –1.0% and Greater than –1.5%		52		3.76
Less than –1.5% and Greater than –2.0%		19		1.37
Less than –2.0% and Greater than –2.5%		6		0.43
Less than –2.5% and Greater than –3.0%		4		0.29
Less than –3.0%		2		0.14

		1,383		100.00	%


68		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Switzerland Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		1		0.07	%
Greater than 2.0% and Less than 2.5%		2		0.14
Greater than 1.5% and Less than 2.0%		8		0.58
Greater than 1.0% and Less than 1.5%		28		2.02
Greater than 0.5% and Less than 1.0%		138		9.98
Between 0.5% and –0.5%		1,079		78.03
Less than –0.5% and Greater than –1.0%		94		6.80
Less than –1.0% and Greater than –1.5%		25		1.81
Less than –1.5% and Greater than –2.0%		6		0.43
Less than –2.0% and Greater than –2.5%		2		0.14

		1,383		100.00	%

Regulation under the Alternative Investment Fund Managers Directive (“AIFMD” or the “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 of 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 Germany ETF (the “Fund”) for marketing to 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 (a) the staff of BFA; (b) staff who are senior management; and (c) staff 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.

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.


SUPPLEMENTAL INFORMATION			69

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Compensation decisions for employees are made based on BlackRock’s 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.

Members of staff and senior management of BFA typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of BFA and across the broader BlackRock group. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Fund according to an objective apportionment methodology which acknowledges the multiple-service nature of BFA. 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 Fund in respect of BFA’s financial year ending December 31, 2015 is USD 992.83 thousand. This figure is comprised of fixed remuneration of USD 386.12 thousand and variable remuneration of USD 606.72 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 117.99 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 28.58 thousand.


70		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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.


DIRECTOR AND OFFICER INFORMATION			71

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director During the Past 5 Years
Cecilia H. Herbert (67)	Director (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	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 media company (since 2011).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015).

Jane D. Carlin (60)	Director (since 2015); Risk Committee Chair (since 2016).	Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012).

Charles A. Hurty (72)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); 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 (61)	Director (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (55)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).


72		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c (Continued)

^c	Robert H. Silver served as an Independent Director until March 31, 2016.


DIRECTOR AND OFFICER INFORMATION			73

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^d



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since January 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).

Jack Gee (56)	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).

Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).

Scott Radell (47)	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 (53)	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).

^d	Manish Mehta served as President until October 15, 2016.


74		2016 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-807-0816

AUGUST 31, 2016


2016 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Hong Kong ETF | EWH | NYSE Arca

^Ø

iShares MSCI Japan Small-Cap ETF | SCJ | NYSE Arca

^Ø

iShares MSCI Malaysia ETF | EWM | NYSE Arca

^Ø

iShares MSCI Pacific ex Japan ETF | EPP | NYSE Arca

^Ø

iShares MSCI Singapore ETF | EWS | NYSE Arca

^Ø

iShares MSCI Taiwan ETF | EWT | NYSE Arca

^Ø

iShares MSCI Thailand Capped ETF | THD | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			20
Shareholder Expenses			20
Schedules of Investments			21
iShares MSCI Hong Kong ETF			21
iShares MSCI Japan Small-Cap ETF			23
iShares MSCI Malaysia ETF			35
iShares MSCI Pacific ex Japan ETF			37
iShares MSCI Singapore ETF			40
iShares MSCI Taiwan ETF			42
iShares MSCI Thailand Capped ETF			45
Financial Statements			49
Financial Highlights			59
Notes to Financial Statements			66
Report of Independent Registered Public Accounting Firm			80
Tax Information			81
Board Review and Approval of Investment Advisory Contract			82
Supplemental Information			95
Director and Officer Information			102

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 HONG KONG ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.94%		12.49%		12.42%		11.94%		12.49%		12.42%
5 Years		6.89%		6.77%		7.48%		39.55%		38.77%		43.45%
10 Years		7.26%		7.26%		7.86%		101.48%		101.51%		113.11%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,194.00	$	2.70	$	1,000.00	$	1,022.70	$	2.49		0.49%


6		2016 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, 2016, the total return for the Fund was 11.94%, net of fees, while the total return for the Index was 12.42%.

As represented by the Index, Hong Kong equities posted positive returns for the reporting period and outperformed the broad global equity market. The Hong Kong dollar is pegged to the U.S. dollar, so currency effects had no meaningful impact on the Index’s performance in U.S. dollar terms.

Hong Kong’s economy grew by 1.7% for the year ended June 30, 2016 (the most recent data available). While economic growth was modest, inflation remained tame — consumer prices in Hong Kong rose 2.4% year over year through June.

In this environment, Hong Kong stocks benefited from demand from mainland Chinese investors troubled by economic, market, and regulatory uncertainty there. Hong Kong stocks were also preferred to Chinese stocks for their greater currency stability and higher dividend yields. Furthermore, the Hong Kong market benefited as the global leader in initial public offerings (IPOs) — both by number of IPOs and by funds raised — in the first five months of 2016, due in part to mainland Chinese companies choosing to list in Hong Kong.

Financials stocks, which represented more than 60% of the Index on average during the reporting period, contributed the most to performance. Within the sector, real estate-related companies helped the most, led by real estate management and development firms. Insurance stocks were also a source of strength in the financials sector. The utilities sector made a meaningful contribution to Index performance, led by electric utilities. Other notable contributions came from industrials, consumer discretionary, consumer staples, and telecommunication services stocks. No single sector detracted from performance during the reporting period.

ALLOCATION BY SECTOR As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	32.83	%
Real Estate**	27.65
Industrials	14.84
Utilities	12.62
Consumer Discretionary	9.00
Telecommunication Services	1.51
Consumer Staples	1.10
Information Technology	0.45

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/16


Security		Percentage of Total Investments*


AIA Group Ltd.	18.22	%
CK Hutchison Holdings Ltd.	8.30
Hong Kong Exchanges and Clearing Ltd.	6.76
Sun Hung Kai Properties Ltd.	4.87
Cheung Kong Property Holdings Ltd.	4.52
CLP Holdings Ltd.	4.03
Link REIT	3.90
Jardine Matheson Holdings Ltd.	3.56
Hong Kong & China Gas Co. Ltd.	3.48
Hang Seng Bank Ltd.	3.21

TOTAL	60.85	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI JAPAN SMALL-CAP ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		9.10%		9.67%		9.02%		9.10%		9.67%		9.02%
5 Years		7.95%		7.79%		8.32%		46.61%		45.51%		49.14%
Since Inception		4.66%		4.66%		5.01%		48.64%		48.61%		53.01%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,121.30	$	2.61	$	1,000.00	$	1,022.70	$	2.49		0.49%


8		2016 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, 2016, the total return for the Fund was 9.10%, net of fees, while the total return for the Index was 9.02%.

As represented by the Index, Japanese small-cap stocks posted positive returns for the reporting period. However, the positive performance was due entirely to a rally in the Japanese yen, which appreciated by 15% relative to the U.S. dollar for the reporting period. In local currency terms, the Index returned -6.95% for the reporting period.

Japan’s economy grew by just 0.8% for the year ended June 30, 2016 (the most recent data available). Business investment declined, consumer spending was relatively weak, and the stronger yen weighed on Japanese exports. In terms of inflation, consumer prices in Japan fell by 0.4% for the year ended July 31, 2016, marking the fifth straight month of year-over-year price declines. In this environment, the Bank of Japan introduced negative interest rates in January 2016, while the government announced new fiscal stimulus in August 2016. These efforts provided a favorable environment for Japanese equity market performance.

The consumer staples and financials sectors contributed the most to Index performance for the reporting period. In the consumer staples sector, food, beverage, and tobacco companies were the main sources of strength. Financials sector performance was led by real estate-related companies, which represented more than 10% of the Index on average during the reporting period. Other significant contributions came from the materials, industrials, and information technology sectors, led by the chemicals, capital goods, and semiconductor industry groups, respectively.

At the other end of the spectrum, energy, utilities, and telecommunication services stocks detracted fractionally from Index performance. Each of these sectors represented less than 1% of the Index on average during the reporting period.

ALLOCATION BY SECTOR As of 8/31/16


Sector		Percentage of Total Investments*


Industrials	23.54	%
Consumer Discretionary	16.64
Information Technology	11.68
Consumer Staples	11.17
Real Estate**	10.89
Materials	10.63
Financials**	8.37
Health Care	5.96
Energy	0.65
Utilities	0.44
Telecommunication Services	0.03

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/16


Security		Percentage of Total Investments*


MISUMI Group Inc.	0.74	%
Orix JREIT Inc.	0.66
Nissan Chemical Industries Ltd.	0.61
Advance Residence Investment Corp.	0.57
Disco Corp.	0.56
DeNA Co. Ltd.	0.54
Japan Hotel REIT Investment Corp.	0.51
Tosoh Corp.	0.50
Kewpie Corp.	0.50
Pigeon Corp.	0.48

TOTAL	5.67	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI MALAYSIA ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		12.58%		11.07%		12.83%		12.58%		11.07%		12.83%
5 Years		(1.22)%		(1.93)%		(0.89)%		(5.97)%		(9.29)%		(4.39)%
10 Years		7.07%		6.97%		7.52%		98.07%		96.18%		106.53%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,074.00	$	2.55	$	1,000.00	$	1,022.70	$	2.49		0.49%


10		2016 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, 2016, the total return for the Fund was 12.58%, net of fees, while the total return for the Index was 12.83%.

As represented by the Index, Malaysian equities posted a positive return for the reporting period and outpaced the broad global equity market. The Malaysian ringgit appreciated modestly relative to the U.S. dollar during the reporting period, which had a positive effect on Index performance as returns on Malaysian investments were higher when translated back into U.S. dollars.

Although the Malaysian economy expanded in the second quarter of 2016, it was the fifth straight quarter in which the rate of growth slowed, reflecting a decline in exports. In July 2016, the latest period for which data were available, Malaysia’s exports fell most sharply to China and Japan, two of the country’s leading trade partners. In addition, an ongoing corruption investigation raised concern about the country’s leadership. To promote economic growth, the Central Bank of Malaysia lowered interest rates in July 2016, specifically citing poor exports and weak global growth.

From a sector standpoint, utilities stocks contributed the most to the Index’s performance for the reporting period. Electric utility companies in particular benefited from rising demand, increases in production capacity, and low regulatory hurdles. The industrials sector was another key contributor during the reporting period, led by transportation companies and industrial conglomerates. In the financials sector, banks were the leading contributors, benefiting from solid loan growth and fee-generating business. Consumer stocks made a notable contribution to Index performance during the reporting period, led by food products companies and casinos and gaming companies. No single sector detracted from Index performance during the reporting period.

Special Note: At the meeting of the Board of Directors held on September 28-29, 2016, the Board approved a one-for-four reverse stock split for the Fund, effective after the close of trading on November 4, 2016. The impact of the stock split will be to decrease the number of shares outstanding by a factor of four, while increasing the NAV per share by a factor of four, resulting in no effect on the net assets of the Fund.

ALLOCATION BY SECTOR As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	27.20	%
Utilities	16.60
Industrials	15.14
Telecommunication Services	11.33
Consumer Staples	8.83
Consumer Discretionary	8.81
Health Care	4.76
Materials	4.12
Energy	2.36
Real Estate**	0.85

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/16


Security		Percentage of Total Investments*


Public Bank Bhd	11.83	%
Tenaga Nasional Bhd	10.97
Malayan Banking Bhd	5.88
Sime Darby Bhd	4.39
IHH Healthcare Bhd	4.14
DiGi.Com Bhd	3.85
Genting Bhd	3.84
Petronas Chemicals Group Bhd	3.53
Petronas Gas Bhd	3.37
CIMB Group Holdings Bhd	3.33

TOTAL	55.13	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI PACIFIC ex JAPAN ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		12.20%		12.15%		12.67%		12.20%		12.15%		12.67%
5 Years		2.72%		2.50%		3.14%		14.36%		13.15%		16.72%
10 Years		5.28%		5.23%		5.53%		67.24%		66.52%		71.34%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,182.60	$	2.69	$	1,000.00	$	1,022.70	$	2.49		0.49%


12		2016 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, 2016, the total return for the Fund was 12.20%, net of fees, while the total return for the Index was 12.67%.

Countries represented in the Index collectively advanced for the reporting period in an environment of high volatility. The Australian, Singaporean, and New Zealand dollars appreciated by 6%, 3%, and 13%, respectively, relative to the U.S. dollar. (The Hong Kong dollar is pegged to the U.S. dollar.) As a result, currency effects contributed significantly to the Index’s performance in U.S. dollar terms.

Australian stocks, which represented nearly 60% of the Index on average during the reporting period, contributed the most to performance. The Australian economy grew by 3.3% for the year ended June 30, 2016 (the most recent data available), thanks to strength in mining and agricultural exports. Consumer prices in Australia rose just 1% year over year through June 2016, the latest period for which data were available. In that environment, the Bank of Australia cut interest rates twice during the reporting period to a fresh record low.

Hong Kong equities, which represented more than a quarter of the Index on average during the reporting period, contributed significantly to performance. These stocks benefited from mainland Chinese investors’ preference for Hong Kong’s greater currency stability and higher dividend yields. New Zealand and Singapore equities also contributed to performance during the reporting period.

In sector terms, financials stocks, which made up more than half of the Index on average during the reporting period, contributed the most to performance, led by real estate-related companies. Energy was the only sector to detract from performance during the reporting period.

ALLOCATION BY SECTOR As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	38.11	%
Real Estate**	15.62
Industrials	9.73
Materials	8.84
Utilities	5.66
Consumer Staples	5.40
Consumer Discretionary	5.01
Health Care	4.41
Telecommunication Services	4.02
Energy	2.84
Information Technology	0.36

TOTAL	100.00	%

ALLOCATION BY COUNTRY As of 8/31/16


Country		Percentage of Total Investments*


Australia	59.72	%
Hong Kong	27.20
Singapore	11.39
New Zealand	1.69

TOTAL	100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI SINGAPORE ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		2.87%		3.26%		3.18%		2.87%		3.26%		3.18%
5 Years		(0.47)%		(0.47)%		(0.05)%		(2.33)%		(2.34)%		(0.26)%
10 Years		5.46%		5.47%		5.76%		70.16%		70.31%		75.09%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,098.10	$	2.58	$	1,000.00	$	1,022.70	$	2.49		0.49%


14		2016 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, 2016, the total return for the Fund was 2.87%, net of fees, while the total return for the Index was 3.18%.

As represented by the Index, Singaporean equities posted a positive return for the reporting period but trailed the broad global equity market. The Singapore dollar appreciated modestly relative to the U.S. dollar during the reporting period, which had a positive effect on Index performance as returns on Singaporean investments were higher when translated back into U.S. dollars.

Singapore’s economy grew by 2.1% for the year ended June 30, 2016 (the most recent data available). The Singapore Purchasing Managers’ Index (PMI) — a measure of manufacturing activity — fell for the fourteenth straight month in August. Similarly, industrial production declined for the year ended July 31, 2016, with electronics the only manufacturing segment to improve during the period. Meanwhile, inflation remained subdued as consumer prices in Singapore fell 0.7% for the reporting period, marking 21 consecutive months of year-over-year declines.

The leading contribution to Index performance for the reporting period came from the telecommunication services sector, where the integrated telecommunication industry was the leading source of strength. In the consumer discretionary sector, casino and gaming companies helped the most. Financials stocks were contributors overall, thanks to real estate and diversified financial services firms, even as Singaporean banks struggled with exposure to corruption and financial scandals unfolding in neighboring Malaysia. Consumer staples stocks also contributed to Index performance.

At the other end of the spectrum, the industrials sector detracted the most from Index performance during the reporting period. Industrial conglomerates, trading companies, and construction firms were the leading sources of weakness in the sector.

Special Notes: At the meeting of the Board of Directors held on September 28-29, 2016, the Board approved a one-for-two reverse stock split for the Fund, effective after the close of trading on November 4, 2016. The impact of the stock split will be to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Fund.

On August 12, 2016, the Board approved several changes for the Fund. Effective on or around November 30, 2016, the Fund will track a new underlying index, the MSCI Singapore 25/50 Index, and cease to track the MSCI Singapore Index. Concurrently, the Fund will change its name to the iShares MSCI Singapore Capped ETF.

ALLOCATION BY SECTOR As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	37.46	%
Real Estate**	18.43
Industrials	16.95
Telecommunication Services	15.96
Consumer Discretionary	6.95
Consumer Staples	4.25

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/16


Security		Percentage of Total Investments*


Singapore Telecommunications Ltd.	14.73	%
Oversea-Chinese Banking Corp. Ltd.	12.02
DBS Group Holdings Ltd.	11.85
United Overseas Bank Ltd.	10.71
CapitaLand Ltd.	3.95
Keppel Corp. Ltd.	3.73
ComfortDelGro Corp. Ltd.	3.07
Wilmar International Ltd.	2.99
Singapore Exchange Ltd.	2.89
Singapore Airlines Ltd.	2.79

TOTAL	68.73	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

Management’s Discussion of Fund Performance

iSHARES^® MSCI TAIWAN ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.02%		16.05%		16.09%		15.02%		16.05%		16.09%
5 Years		4.62%		4.48%		5.22%		25.35%		24.52%		29.00%
10 Years		4.94%		4.87%		5.49%		61.93%		60.86%		70.66%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,179.00	$	3.45	$	1,000.00	$	1,022.00	$	3.20		0.63%


16		2016 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, 2016, the total return for the Fund was 15.02%, net of fees, while the total return for the Index was 16.09%.

As represented by the Index, Taiwanese equities posted a strong return for the reporting period and outpaced the broad global equity market. The New Taiwan dollar appreciated modestly relative to the U.S. dollar during the reporting period, which had a positive effect on Index performance as returns on Taiwanese investments were higher when translated back into U.S. dollars.

The Taiwanese economy emerged from recession during the reporting period, expanding by 0.7% for the year ended June 30, 2016, after three consecutive quarters of negative year-over-year growth. The rebound was driven by a recovery in exports, which account for approximately 70% of the country’s gross domestic product and are heavily dependent upon China. While economic activity began to improve, inflation remained tame as consumer prices in Taiwan rose just 0.6% for the reporting period. To support the economy in the wake of China’s economic slowdown and uncertainty about global growth, Taiwan’s central bank cut interest rates four times during the reporting period.

The largest contribution to Index performance came from the information technology sector, which represented 58% of the Index on average during the reporting period. More than half of the technology sector was comprised of semiconductor companies, which benefited from new orders ahead of the new Apple product cycle. The materials and telecommunication services sectors were other notable contributors, led by chemicals companies and integrated telecommunication firms, respectively. The industrials, healthcare, and financials sectors detracted modestly from the Index’s performance during the reporting period.

On August 12, 2016, the Board approved several changes for the Fund. Effective on or around November 30, 2016, the Fund will track a new underlying index, the MSCI Taiwan 25/50 Index, and cease to track the MSCI Taiwan Index. Concurrently, the Fund will change its name to the iShares MSCI Taiwan Capped ETF.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Information Technology	59.20	%
Financials**	15.99
Materials	9.05
Telecommunication Services	5.27
Consumer Discretionary	4.30
Consumer Staples	3.15
Industrials	1.43
Energy	0.68
Health Care	0.47
Real Estate**	0.46

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Taiwan Semiconductor Manufacturing Co. Ltd.	24.85	%
Hon Hai Precision Industry Co. Ltd.	8.35
Chunghwa Telecom Co. Ltd.	3.00
MediaTek Inc.	2.62
Largan Precision Co. Ltd.	2.30
Delta Electronics Inc.	2.26
Formosa Plastics Corp.	2.23
Cathay Financial Holding Co. Ltd.	2.11
Uni-President Enterprises Corp.	2.02
Nan Ya Plastics Corp.	1.98

TOTAL	51.72	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			17

Management’s Discussion of Fund Performance

iSHARES^® MSCI THAILAND CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.87%		20.11%		20.47%		19.87%		20.11%		20.47%
5 Years		5.47%		5.33%		5.67%		30.52%		29.67%		31.75%
Since Inception		7.96%		7.89%		8.30%		90.75%		89.77%		95.82%

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.

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,225.80	$	3.52	$	1,000.00	$	1,022.00	$	3.20		0.63%


18		2016 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, 2016, the total return for the Fund was 19.87%, net of fees, while the total return for the Index was 20.47%.

As represented by the Index, Thai equities posted a strong return for the reporting period and outpaced the broad global equity market. The Thai baht appreciated modestly relative to the U.S. dollar during the reporting period, which had a positive effect on Index performance as returns on Thai investments were higher when translated back into U.S. dollars.

Thailand’s economy grew by 3.5% for the year ended June 30, 2016 (the most recent data available), the fastest rate of growth in more than three years. Growth was driven by an increase in private consumption as retail sales in Thailand rose 5.7% year over year in June 2016, while consumer confidence rose for the second consecutive month in July 2016. While growth improved, inflation remained tame — consumer prices in Thailand rose by approximately 0.3% for the reporting period.

The financials sector contributed the most to Index performance for the reporting period, led by banks and real estate-related companies. Energy and consumer staples stocks also contributed meaningfully to Index performance. In the energy sector, integrated oil and gas companies were the main sources of strength, while packaged foods companies and food retailers led the advance in the consumer staples sector.

At the other end of the spectrum, the telecommunication services sector was the only sector of the Index to detract from performance for the reporting period. Wireless telecommunication services companies were the main source of weakness in the sector.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	21.22	%
Energy	15.81
Consumer Staples	12.23
Industrials	10.20
Materials	9.87
Telecommunication Services	6.88
Consumer Discretionary	6.84
Real Estate**	5.96
Health Care	4.86
Utilities	3.65
Information Technology	2.48

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


PTT PCL NVDR	8.49	%
CP ALL PCL NVDR	7.49
Siam Commercial Bank PCL (The) NVDR	6.08
Kasikornbank PCL Foreign	5.65
Airports of Thailand PCL NVDR	4.20
Advanced Info Service PCL NVDR	4.19
Siam Cement PCL (The) Foreign	3.87
PTT Global Chemical PCL NVDR	3.08
Kasikornbank PCL NVDR	2.76
PTT Exploration & Production PCL NVDR	2.75

TOTAL	48.56	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			19

About Fund Performance

Shareholder Expenses


20		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI HONG KONG ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.45%

AIRLINES — 0.41%
Cathay Pacific Airways Ltd.^a		4,489,000	$	6,458,535

				6,458,535
BANKS — 7.43%
Bank of East Asia Ltd. (The)^a		4,580,010		18,510,757
BOC Hong Kong Holdings Ltd.		14,058,000		49,205,492
Hang Seng Bank Ltd.		2,904,200		50,957,117

				118,673,366
CAPITAL MARKETS — 6.72%
Hong Kong Exchanges and Clearing Ltd.^a		4,388,700		107,330,569

				107,330,569
DIVERSIFIED FINANCIAL SERVICES — 0.38%
First Pacific Co. Ltd./Hong Kong		8,080,999		6,052,871

				6,052,871
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.50%
HKT Trust & HKT Ltd.		10,075,500		13,898,585
PCCW Ltd.		15,896,169		10,082,722

				23,981,307
ELECTRIC UTILITIES — 9.08%
Cheung Kong Infrastructure Holdings Ltd.		2,513,000		21,107,029
CLP Holdings Ltd.		6,238,700		63,981,511
HK Electric Investments & HK Electric Investments Ltd.^b		10,100,000		9,479,228
Power Assets Holdings Ltd.		5,273,500		50,445,573

				145,013,341
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.88%
Link REIT		8,512,000		61,891,488

				61,891,488
FOOD PRODUCTS — 1.10%
WH Group Ltd.^b		22,291,500		17,530,300

				17,530,300
GAS UTILITIES — 3.46%
Hong Kong & China Gas Co. Ltd.		28,980,912		55,296,032

				55,296,032
HOTELS, RESTAURANTS & LEISURE — 6.15%
Galaxy Entertainment Group Ltd.^a		8,899,000		28,968,286
Melco Crown Entertainment Ltd. ADR		719,978		9,345,314
MGM China Holdings Ltd.^a		3,642,288		5,606,590
Sands China Ltd.^a		9,203,200		36,187,527
Shangri-La Asia Ltd.		4,784,000		5,180,726


Security	Shares		Value
SJM Holdings Ltd.^a		7,459,000	$	4,692,677
Wynn Macau Ltd.^a		5,912,400		8,232,046

				98,213,166
HOUSEHOLD DURABLES — 1.33%
Techtronic Industries Co. Ltd.		5,235,147		21,226,077

				21,226,077
INDUSTRIAL CONGLOMERATES — 12.45%
CK Hutchison Holdings Ltd.		10,257,767		131,846,375
Jardine Matheson Holdings Ltd.		943,900		56,492,415
NWS Holdings Ltd.		5,800,000		10,363,619

				198,702,409
INSURANCE — 18.12%
AIA Group Ltd.		45,749,200		289,296,195

				289,296,195
REAL ESTATE MANAGEMENT & DEVELOPMENT — 23.62%
Cheung Kong Property Holdings Ltd.		10,218,767		71,798,472
Hang Lung Properties Ltd.		8,582,000		19,560,997
Henderson Land Development Co. Ltd.		4,150,966		24,268,709
Hongkong Land Holdings Ltd.		4,466,600		28,988,234
Hysan Development Co. Ltd.^a		2,399,000		11,582,499
Kerry Properties Ltd.		2,482,000		7,215,535
New World Development Co. Ltd.		21,314,066		26,736,180
Sino Land Co. Ltd.		11,716,000		20,058,463
Sun Hung Kai Properties Ltd.^a		5,492,000		77,316,711
Swire Pacific Ltd. Class A		2,065,000		22,815,032
Swire Properties Ltd.		4,444,000		12,518,310
Wharf Holdings Ltd. (The)		5,183,150		36,617,993
Wheelock & Co. Ltd.		3,077,357		17,614,935

				377,092,070
ROAD & RAIL — 1.90%
MTR Corp. Ltd.		5,562,083		30,403,496

				30,403,496
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.45%
ASM Pacific Technology Ltd.^a		919,000		7,156,038

				7,156,038
TEXTILES, APPAREL & LUXURY GOODS — 1.47%
Li & Fung Ltd.^a		22,294,000		11,467,826
Yue Yuen Industrial Holdings Ltd.		2,823,000		12,010,056

				23,477,882

TOTAL COMMON STOCKS (Cost: $1,720,289,579)				1,587,795,142


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI HONG KONG ETF

August 31, 2016


Security	Shares		Value
SHORT-TERM INVESTMENTS — 2.16%

MONEY MARKET FUNDS — 2.16%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		34,450,945	$	34,450,945
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		69,762		69,762

				34,520,707

TOTAL SHORT-TERM INVESTMENTS (Cost: $34,520,707)				34,520,707

TOTAL INVESTMENTS IN SECURITIES — 101.61% (Cost: $1,754,810,286)^f				1,622,315,849
Other Assets, Less Liabilities — (1.61)%				(25,740,035	)

NET ASSETS — 100.00%			$	1,596,575,814

ADR — American Depositary Receipts

^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	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $1,771,512,710. Net unrealized depreciation was $149,196,861, of which $65,034,376 represented gross unrealized appreciation on securities and $214,231,237 represented gross unrealized depreciation on securities.

Schedule 1 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2016 were as follows:


Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
Hang Seng Index		56		Sep. 2016		Hong Kong Futures	$	8,232,908	$	8,276,817	$	43,909

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,587,795,142	$	—	$	—	$	1,587,795,142
Money market funds		34,520,707		—		—		34,520,707

Total	$	1,622,315,849	$	—	$	—	$	1,622,315,849

Derivative financial instruments^a:
Assets:
Futures contracts	$	43,909	$	—	$	—	$	43,909

Total	$	43,909	$	—	$	—	$	43,909

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

See notes to financial statements.


22		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.76%

AEROSPACE & DEFENSE — 0.03%
Jamco Corp.^a		2,700	$	49,936

				49,936
AIR FREIGHT & LOGISTICS — 0.22%
Kintetsu World Express Inc.		10,800		131,352
Konoike Transport Co. Ltd.		8,100		105,484
Mitsui-Soko Holdings Co. Ltd.		27,000		79,354
Yusen Logistics Co. Ltd.		5,400		53,564

				369,754
AUTO COMPONENTS — 3.38%
Aisan Industry Co. Ltd.		10,800		83,426
Akebono Brake Industry Co. Ltd.^b		27,000		48,813
Calsonic Kansei Corp.		35,000		275,100
Daikyonishikawa Corp.		10,800		115,481
Eagle Industry Co. Ltd.		5,400		69,226
Exedy Corp.		8,100		200,630
FCC Co. Ltd.		8,100		162,102
Futaba Industrial Co. Ltd.		13,500		63,431
G-Tekt Corp.		5,400		96,060
Kasai Kogyo Co. Ltd.		8,100		74,786
Keihin Corp.		10,800		165,913
KYB Corp.		54,000		219,268
Mitsuba Corp.		8,100		111,435
Musashi Seimitsu Industry Co. Ltd.		5,400		108,486
Nifco Inc./Japan		10,800		543,994
Nippon Seiki Co. Ltd.		8,000		150,897
Nissin Kogyo Co. Ltd.		10,800		157,247
Pacific Industrial Co. Ltd.		10,800		122,999
Piolax Inc.		2,700		154,010
Press Kogyo Co. Ltd.		27,000		115,899
Riken Corp.		27,000		87,707
Sanden Holdings Corp.		27,000		77,005
Showa Corp.		13,500		80,137
Sumitomo Riko Co. Ltd.		10,800		100,550
Tachi-S Co. Ltd.		8,100		134,693
Taiho Kogyo Co. Ltd.		5,400		58,472
Takata Corp.^b		8,100		31,794
Tokai Rika Co. Ltd.		13,500		266,907
Topre Corp.		8,100		159,126
Toyo Tire & Rubber Co. Ltd.		27,000		379,804
Toyota Boshoku Corp.		18,900		432,141
TPR Co. Ltd.		5,400		138,035
TS Tech Co. Ltd.		13,500		313,371
Unipres Corp.		10,800		192,747


Security	Shares		Value
Yorozu Corp.		5,400	$	69,017

				5,560,709
AUTOMOBILES — 0.12%
Nissan Shatai Co. Ltd.		21,600		196,506

				196,506
BANKS — 5.03%
77 Bank Ltd. (The)		81,000		337,516
Aichi Bank Ltd. (The)		2,700		123,077
Akita Bank Ltd. (The)		54,000		159,230
Aomori Bank Ltd. (The)		54,000		159,753
Ashikaga Holdings Co. Ltd.		32,400		109,321
Awa Bank Ltd. (The)		54,000		339,344
Bank of Iwate Ltd. (The)		2,700		105,588
Bank of Nagoya Ltd. (The)		27,000		90,579
Bank of Saga Ltd. (The)		27,000		60,821
Bank of the Ryukyus Ltd.		10,800		123,521
Chiba Kogyo Bank Ltd. (The)		13,500		52,990
Chukyo Bank Ltd. (The)		27,000		62,126
Daishi Bank Ltd. (The)		81,000		310,108
Eighteenth Bank Ltd. (The)		54,000		165,495
Gunma Bank Ltd. (The)		89,100		420,368
Hokkoku Bank Ltd. (The)		81,000		245,110
Hokuetsu Bank Ltd. (The)		54,000		120,075
Hokuhoku Financial Group Inc.		324,000		447,934
Hyakugo Bank Ltd. (The)		54,000		198,385
Hyakujushi Bank Ltd. (The)		54,000		161,841
Jimoto Holdings Inc.		43,200		62,230
Juroku Bank Ltd. (The)		81,000		224,750
Kansai Urban Banking Corp.		8,100		78,075
Keiyo Bank Ltd. (The)		54,000		219,790
Kiyo Bank Ltd. (The)		16,200		252,472
Mie Bank Ltd. (The)		27,000		52,468
Minato Bank Ltd. (The)		54,000		85,619
Miyazaki Bank Ltd. (The)		54,000		142,002
Musashino Bank Ltd. (The)		8,100		209,088
Nanto Bank Ltd. (The)		54,000		190,554
Nishi-Nippon City Bank Ltd. (The)		189,000		392,855
North Pacific Bank Ltd.		78,300		264,949
Ogaki Kyoritsu Bank Ltd. (The)		81,000		276,435
Oita Bank Ltd. (The)		27,000		88,229
San-in Godo Bank Ltd. (The)		37,800		258,371
Senshu Ikeda Holdings Inc.		62,100		280,977
Shiga Bank Ltd. (The)		54,000		259,989
Shikoku Bank Ltd. (The)		54,000		110,156
Tochigi Bank Ltd. (The)		27,000		108,068


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Toho Bank Ltd. (The)		54,000	$	182,723
Tokyo TY Financial Group Inc.		8,130		238,551
TOMONY Holdings Inc.		35,100		155,080
Towa Bank Ltd. (The)		81,000		68,130
Tsukuba Bank Ltd.		21,600		62,022
Yamagata Bank Ltd. (The)		27,000		112,767
Yamanashi Chuo Bank Ltd. (The)		27,000		113,289

				8,282,821
BEVERAGES — 1.15%
Coca-Cola East Japan Co. Ltd.		16,266		286,210
Coca-Cola West Co. Ltd.		18,900		428,487
Ito EN Ltd.		13,500		405,907
Sapporo Holdings Ltd.		16,200		397,502
Takara Holdings Inc.		43,200		373,382

				1,891,488
BIOTECHNOLOGY — 0.56%
AnGes MG Inc.^a,b		16,200		39,625
GreenPeptide Co. Ltd.^b		5,400		40,043
Japan Tissue Engineering Co. Ltd.^b		5,400		64,736
NanoCarrier Co. Ltd.^a,b		10,800		96,374
OncoTherapy Science Inc.^b		32,400		77,057
PeptiDream Inc.^a,b		8,100		346,522
SanBio Co. Ltd.^a,b		5,400		68,547
Takara Bio Inc.		13,500		195,122

				928,026
BUILDING PRODUCTS — 1.70%
Aica Kogyo Co. Ltd.		13,500		335,558
Bunka Shutter Co. Ltd.		13,500		94,103
Central Glass Co. Ltd.		54,000		207,261
Nichias Corp.		27,000		240,934
Nichiha Corp.		8,100		149,807
Nippon Sheet Glass Co. Ltd.^b		243,000		187,944
Nitto Boseki Co. Ltd.		54,000		183,245
Noritz Corp.		8,100		158,578
Okabe Co. Ltd.		10,800		87,290
Sankyo Tateyama Inc.		8,100		122,242
Sanwa Holdings Corp.		54,000		479,257
Sekisui Jushi Corp.		8,100		126,627
Takara Standard Co. Ltd.		27,000		224,750
Takasago Thermal Engineering Co. Ltd.		13,500		200,213

				2,797,809
CAPITAL MARKETS — 1.46%
Ichigo Inc.		56,700		230,780
Ichiyoshi Securities Co. Ltd.		10,800		85,201


Security	Shares		Value
IwaiCosmo Holdings Inc.		5,400	$	48,083
Jafco Co. Ltd.		10,800		314,807
kabu.com Securities Co. Ltd.		37,800		123,521
Kyokuto Securities Co. Ltd.		5,400		68,234
Marusan Securities Co. Ltd.		13,500		110,939
Matsui Securities Co. Ltd.		27,000		240,673
Monex Group Inc.		48,600		116,995
Nihon M&A Center Inc.		8,100		445,584
Okasan Securities Group Inc.		54,000		274,607
Sawada Holdings Co. Ltd.		5,400		48,813
SPARX Group Co. Ltd.		24,300		42,053
Tokai Tokyo Financial Holdings Inc.		51,300		243,518

				2,393,808
CHEMICALS — 6.57%
Achilles Corp.		54,000		74,133
ADEKA Corp.		21,600		317,626
C Uyemura & Co. Ltd.		2,700		113,811
Chugoku Marine Paints Ltd.		27,000		190,293
Dainichiseika Color & Chemicals Manufacturing Co. Ltd.		27,000		122,425
Denka Co. Ltd.		108,000		456,287
DIC Corp.		21,600		656,760
Fujimi Inc.		5,400		72,097
Fujimori Kogyo Co. Ltd.		5,400		121,746
Ihara Chemical Industry Co. Ltd.		5,400		46,099
Ishihara Sangyo Kaisha Ltd.^b		108,000		69,957
JSP Corp.		2,700		53,173
Konishi Co. Ltd.		8,100		89,195
Kumiai Chemical Industry Co. Ltd.		10,800		60,247
Kureha Corp.		27,000		101,803
Lintec Corp.		13,500		253,594
Nihon Nohyaku Co. Ltd.^a		13,500		66,433
Nihon Parkerizing Co. Ltd.		24,300		324,439
Nippon Kayaku Co. Ltd.		33,000		361,154
Nippon Shokubai Co. Ltd.		6,000		368,347
Nippon Soda Co. Ltd.		27,000		136,259
Nippon Synthetic Chemical Industry Co. Ltd. (The)		9,000		79,006
Nissan Chemical Industries Ltd.		32,400		996,104
NOF Corp.		27,000		272,780
Okamoto Industries Inc.		27,000		299,405
Osaka Soda Co. Ltd.		27,000		101,542
Sakai Chemical Industry Co. Ltd.		27,000		80,920
Sakata INX Corp.		10,800		127,384
Sanyo Chemical Industries Ltd.		6,000		50,582


24		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Shin-Etsu Polymer Co. Ltd.		10,800	$	71,941
Showa Denko KK		35,100		434,699
Sumitomo Bakelite Co. Ltd.		54,000		268,342
Taiyo Holdings Co. Ltd.		5,400		187,161
Takasago International Corp.		2,700		63,562
Tenma Corp.		5,400		83,270
Toagosei Co. Ltd.		27,000		288,703
Tokai Carbon Co. Ltd.		54,000		142,524
Tokuyama Corp.^a,b		81,000		330,468
Tokyo Ohka Kogyo Co. Ltd.		10,800		339,344
Tosoh Corp.		135,000		831,392
Toyo Ink SC Holdings Co. Ltd.		54,000		230,754
Toyobo Co. Ltd.		216,000		342,476
Ube Industries Ltd.		297,000		539,817
W-Scope Corp.^a		8,100		126,471
Zeon Corp.		54,000		464,640

				10,809,165
COMMERCIAL SERVICES & SUPPLIES — 1.59%
Aeon Delight Co. Ltd.		5,400		151,974
Bell System24 Holdings Inc.		8,100		66,015
Daiseki Co. Ltd.		10,860		188,883
Duskin Co. Ltd.		10,800		185,438
Itoki Corp.		10,800		66,720
Kokuyo Co. Ltd.		21,600		298,414
Kyodo Printing Co. Ltd.		27,000		83,792
Matsuda Sangyo Co. Ltd.		5,460		67,567
Mitsubishi Pencil Co. Ltd.		5,400		263,644
Nippon Kanzai Co. Ltd.		5,400		82,852
Nippon Parking Development Co. Ltd.		51,300		64,475
Nissha Printing Co. Ltd.^a		8,100		195,305
Okamura Corp.		18,900		173,222
Oyo Corp.		5,400		54,713
Pilot Corp.		8,100		318,330
Relia Inc.		10,800		102,221
Sato Holdings Corp.		5,400		113,706
Toppan Forms Co. Ltd.		13,500		142,263

				2,619,534
COMMUNICATIONS EQUIPMENT — 0.34%
Denki Kogyo Co. Ltd.		27,000		121,642
Hitachi Kokusai Electric Inc.		21,600		383,406
Icom Inc.		2,700		48,761

				553,809
CONSTRUCTION & ENGINEERING — 4.87%
Chiyoda Corp.		36,000		290,965


Security	Shares		Value
Chudenko Corp.		8,100	$	154,427
COMSYS Holdings Corp.		27,000		510,321
Daiho Corp.		27,000		140,958
Fudo Tetra Corp.		43,200		71,419
Hazama Ando Corp.		45,900		256,048
Hibiya Engineering Ltd.		5,400		84,262
Kandenko Co. Ltd.		27,000		240,412
Kinden Corp.		32,400		354,901
Kumagai Gumi Co. Ltd.		108,000		291,313
Kyowa Exeo Corp.		21,600		310,526
Kyudenko Corp.		10,800		341,432
Maeda Corp.		27,000		225,272
Maeda Road Construction Co. Ltd.		27,000		459,419
Mirait Holdings Corp.		16,200		136,729
Nippo Corp.		14,000		253,783
Nippon Densetsu Kogyo Co. Ltd.		8,100		152,313
Nippon Koei Co. Ltd.		27,000		104,413
Nippon Road Co. Ltd. (The)		27,000		104,152
Nishimatsu Construction Co. Ltd.		81,000		368,840
Okumura Corp.		54,000		291,313
OSJB Holdings Corp.		35,100		69,565
Penta-Ocean Construction Co. Ltd.		72,900		384,816
Raito Kogyo Co. Ltd.		10,800		116,421
Sanki Engineering Co. Ltd.		10,800		87,185
SHO-BOND Holdings Co. Ltd.		5,400		238,324
Sumitomo Densetsu Co. Ltd.		5,400		56,383
Sumitomo Mitsui Construction Co. Ltd.		216,000		202,562
Taikisha Ltd.		8,100		181,601
Takamatsu Construction Group Co. Ltd.		2,700		62,309
Tekken Corp.		27,000		85,880
Toa Corp./Tokyo		54,000		97,627
Toda Corp.		54,000		275,129
Tokyu Construction Co. Ltd.		21,640		211,933
Toshiba Plant Systems & Services Corp.		10,800		169,776
Totetsu Kogyo Co. Ltd.		8,100		223,497
Toyo Construction Co. Ltd.		18,900		80,216
Toyo Engineering Corp.		54,000		166,539
Yahagi Construction Co. Ltd.		8,100		72,750
Yokogawa Bridge Holdings Corp.		8,100		89,822

				8,015,553
CONSTRUCTION MATERIALS — 0.30%
Sumitomo Osaka Cement Co. Ltd.		108,000		488,655

				488,655


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
CONSUMER FINANCE — 0.62%
Aiful Corp.^a,b		83,700	$	268,656
Hitachi Capital Corp.		13,500		280,872
J Trust Co. Ltd.		18,900		143,438
Jaccs Co. Ltd.		27,000		102,325
Orient Corp.^b		113,400		225,846

				1,021,137
CONTAINERS & PACKAGING — 0.53%
FP Corp.		5,400		285,049
Fuji Seal International Inc.		5,400		205,172
Pack Corp. (The)		2,700		63,953
Rengo Co. Ltd.		54,000		321,071

				875,245
DISTRIBUTORS — 0.31%
Canon Marketing Japan Inc.		13,500		236,888
Doshisha Co. Ltd.		5,400		102,743
PALTAC Corp.		8,100		168,366

				507,997
DIVERSIFIED CONSUMER SERVICES — 0.03%
Meiko Network Japan Co. Ltd.		5,400		50,640

				50,640
DIVERSIFIED FINANCIAL SERVICES — 1.04%
Century Tokyo Leasing Corp.		10,880		408,651
Financial Products Group Co. Ltd.		18,900		169,385
Fuyo General Lease Co. Ltd.		5,400		254,247
IBJ Leasing Co. Ltd.		5,400		109,895
Japan Securities Finance Co. Ltd.		21,600		97,940
Ricoh Leasing Co. Ltd.		5,400		140,540
Zenkoku Hosho Co. Ltd.		13,500		530,550

				1,711,208
ELECTRIC UTILITIES — 0.34%
Hokkaido Electric Power Co. Inc.		48,600		394,213
Okinawa Electric Power Co. Inc. (The)		8,100		165,234

				559,447
ELECTRICAL EQUIPMENT — 1.54%
Chiyoda Integre Co. Ltd.		2,700		51,136
Cosel Co. Ltd.		5,400		56,383
Daihen Corp.		27,000		141,741
Denyo Co. Ltd.		5,400		52,207
Fujikura Ltd.		81,000		454,981
Furukawa Electric Co. Ltd.		189,000		487,872
Futaba Corp.		8,100		121,459
GS Yuasa Corp.		108,000		420,786


Security	Shares		Value
Idec Corp./Japan		8,100	$	71,027
Nissin Electric Co. Ltd.		13,500		209,610
Nitto Kogyo Corp.		8,100		100,863
Toyo Tanso Co. Ltd.		2,700		35,579
Ushio Inc.		29,700		330,495

				2,534,139
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.85%
Ai Holdings Corp.		10,800		256,126
Amano Corp.		16,200		232,894
Anritsu Corp.		37,800		208,305
Azbil Corp.		16,200		474,559
Canon Electronics Inc.		5,400		79,511
Citizen Holdings Co. Ltd.		72,900		403,140
Daiwabo Holdings Co. Ltd.		54,000		114,855
Dexerials Corp.^b		13,500		115,116
Elematec Corp.		2,700		54,295
Enplas Corp.		2,700		75,621
HORIBA Ltd.		10,800		501,706
Hosiden Corp.		16,200		121,224
Ibiden Co. Ltd.		29,700		376,149
Iriso Electronics Co. Ltd.^a		2,700		159,491
Japan Aviation Electronics Industry Ltd.		27,000		418,959
Japan Cash Machine Co. Ltd.^a		5,400		63,953
Japan Display Inc.^b		94,500		134,302
Kaga Electronics Co. Ltd.		5,400		63,379
Koa Corp.		8,100		63,353
Macnica Fuji Electronics Holdings Inc.		8,100		84,262
Maruwa Co. Ltd./Aichi		2,700		92,275
Mitsumi Electric Co. Ltd.^a,b		21,600		133,858
Nichicon Corp.		13,500		109,634
Nippon Ceramic Co. Ltd.		5,400		101,438
Nippon Signal Co. Ltd.		13,500		109,634
Nohmi Bosai Ltd.		5,400		77,005
Oki Electric Industry Co. Ltd.		216,000		288,181
Optex Co. Ltd.		2,700		56,775
Ryosan Co. Ltd.		8,100		243,153
Ryoyo Electro Corp.		5,400		63,327
SIIX Corp.		5,400		203,606
SMK Corp.		27,000		90,579
Taiyo Yuden Co. Ltd.		27,000		279,567
Topcon Corp.		27,000		353,439
Toyo Corp./Chuo-ku		5,400		53,877


26		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
UKC Holdings Corp.		5,400	$	82,434

				6,339,982
ENERGY EQUIPMENT & SERVICES — 0.15%
Modec Inc.		5,400		92,354
Shinko Plantech Co. Ltd.		13,500		91,753
Toyo Kanetsu KK		27,000		55,339

				239,446
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 9.53%
Activia Properties Inc.		135		689,129
Advance Residence Investment Corp.		351		936,588
AEON REIT Investment Corp.		270		335,950
Comforia Residential REIT Inc.		135		310,891
Daiwa House Residential Investment Corp.^b		15		91,507
Daiwa Office Investment Corp.		81		484,739
Frontier Real Estate Investment Corp.		135		660,415
Fukuoka REIT Corp.		189		340,048
Global One Real Estate Investment Corp.		54		205,694
GLP J-REIT		621		770,884
Hankyu REIT Inc.		135		184,812
Heiwa Real Estate REIT Inc.		216		178,756
Hoshino Resorts REIT Inc.		27		321,854
Hulic Reit Inc.		243		428,513
Ichigo Office REIT Investment		297		221,383
Industrial & Infrastructure Fund Investment Corp.		81		404,080
Invesco Office J-Reit Inc.		216		194,835
Invincible Investment Corp.		783		503,403
Japan Excellent Inc.		324		436,657
Japan Hotel REIT Investment Corp.		972		835,412
Japan Logistics Fund Inc.		216		492,622
Japan Rental Housing Investments Inc.		432		342,894
Kenedix Office Investment Corp.		108		651,540
Kenedix Residential Investment Corp.		108		297,787
Kenedix Retail REIT Corp.		108		270,013
LaSalle Logiport REIT		297		300,919
MCUBS MidCity Investment Corp.		81		272,911
Mori Hills REIT Investment Corp.		378		571,924
MORI TRUST Sogo REIT Inc.		270		477,169


Security	Shares		Value
Nippon Accommodations Fund Inc.		135	$	578,189
NIPPON REIT Investment Corp.		108		267,716
Orix JREIT Inc.		621		1,086,082
Premier Investment Corp.		351		476,099
Sekisui House Reit Inc.		216		304,678
Sekisui House SI Residential Investment Corp.		270		312,196
TOKYU REIT Inc.		243		333,131
Top REIT Inc.^b		28		117,498

				15,688,918
FOOD & STAPLES RETAILING — 3.01%
Ain Holdings Inc.		5,400		306,453
Arcs Co. Ltd.		10,800		247,877
Axial Retailing Inc.		2,700		83,922
Belc Co. Ltd.		2,700		100,889
Cawachi Ltd.		5,400		119,501
Cocokara fine Inc.		5,400		182,462
Cosmos Pharmaceutical Corp.		2,700		490,221
Create SD Holdings Co. Ltd.		8,100		177,451
Daikokutenbussan Co. Ltd.		2,700		120,075
Heiwado Co. Ltd.		8,100		145,813
Kato Sangyo Co. Ltd.		5,400		118,457
Kobe Bussan Co. Ltd.		2,700		55,078
Kusuri No Aoki Co. Ltd.		2,700		98,801
Life Corp.		2,700		73,481
Matsumotokiyoshi Holdings Co. Ltd.		10,800		475,603
Ministop Co. Ltd.		5,400		82,695
Mitsubishi Shokuhin Co. Ltd.		2,700		77,162
Qol Co. Ltd.		5,400		77,945
San-A Co. Ltd.		5,400		253,203
Sogo Medical Co. Ltd.		2,700		89,274
Sugi Holdings Co. Ltd.		10,800		529,376
United Super Markets Holdings Inc.		13,500		122,555
Valor Holdings Co. Ltd.		10,800		291,418
Welcia Holdings Co. Ltd.		5,400		316,895
Yaoko Co. Ltd.		5,400		210,132
Yokohama Reito Co. Ltd.		10,800		107,337

				4,954,076
FOOD PRODUCTS — 4.83%
Ariake Japan Co. Ltd.		5,400		255,552
Dydo Drinco Inc.		2,700		131,822
Ezaki Glico Co. Ltd.		13,500		676,077
Fuji Oil Holdings Inc.		16,200		314,963
Fujicco Co. Ltd.		5,400		111,827
Fujiya Co. Ltd.^b		54,000		103,369


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Hokuto Corp.		5,400	$	92,301
House Foods Group Inc.		16,200		348,636
Itoham Yonekyu Holdings Inc.^b		37,800		357,773
J-Oil Mills Inc.		27,000		86,402
Kagome Co. Ltd.		21,600		491,370
Kameda Seika Co. Ltd.		2,700		130,778
Kewpie Corp.		29,700		816,330
KEY Coffee Inc.		5,400		100,602
Kotobuki Spirits Co. Ltd.		5,400		112,192
Marudai Food Co. Ltd.		27,000		119,292
Maruha Nichiro Corp.		10,800		250,801
MEGMILK SNOW BRAND Co. Ltd.		13,500		416,348
Mitsui Sugar Co. Ltd.		27,000		123,469
Morinaga & Co. Ltd./Japan		54,000		435,404
Morinaga Milk Industry Co. Ltd.		54,000		342,998
Nichirei Corp.		60,000		594,576
Nippon Beet Sugar Manufacturing Co. Ltd.		54,000		97,627
Nippon Flour Mills Co. Ltd.		27,000		187,422
Nippon Suisan Kaisha Ltd.		62,100		260,564
Nisshin OilliO Group Ltd. (The)		27,000		115,377
Prima Meat Packers Ltd.		54,000		176,459
Riken Vitamin Co. Ltd.		2,700		110,287
Rock Field Co. Ltd.		8,100		108,459
S Foods Inc.^a		2,700		65,780
Sakata Seed Corp.		8,100		179,408
Showa Sangyo Co. Ltd.		27,000		129,212
Warabeya Nichiyo Co. Ltd.		5,400		98,618

				7,942,095
GAS UTILITIES — 0.10%
K&O Energy Group Inc.		5,400		67,451
Shizuoka Gas Co. Ltd.		13,500		96,974

				164,425
HEALTH CARE EQUIPMENT & SUPPLIES — 1.74%
Asahi Intecc Co. Ltd.		13,500		600,377
Eiken Chemical Co. Ltd.		5,400		137,147
Fukuda Denshi Co. Ltd.		2,700		159,230
Hogy Medical Co. Ltd.		2,700		183,507
JEOL Ltd.		27,000		99,193
Mani Inc.		5,400		108,955
Menicon Co. Ltd.		2,700		67,634
Nagaileben Co. Ltd.		5,400		109,739
Nakanishi Inc.		5,400		195,253
Nihon Kohden Corp.		18,900		430,496
Nikkiso Co. Ltd.		16,200		142,524


Security	Shares		Value
Nipro Corp.		35,100	$	437,075
Paramount Bed Holdings Co. Ltd.		5,400		194,731

				2,865,861
HEALTH CARE PROVIDERS & SERVICES — 0.78%
AS ONE Corp.		2,700		102,978
BML Inc.		5,400		132,448
Japan Lifeline Co. Ltd.		2,700		117,596
NichiiGakkan Co. Ltd.^a		10,800		85,932
Ship Healthcare Holdings Inc.		10,800		288,494
Toho Holdings Co. Ltd.		13,500		262,469
Tokai Corp./Gifu		2,700		86,011
Tsukui Corp.		16,200		102,743
Vital KSK Holdings Inc.		10,800		98,253

				1,276,924
HOTELS, RESTAURANTS & LEISURE — 3.22%
Accordia Golf Co. Ltd.		16,200		162,572
Atom Corp.		24,300		161,632
BRONCO BILLY Co. Ltd.		2,700		76,874
Colowide Co. Ltd.^a		16,200		277,687
Create Restaurants Holdings Inc.		13,500		125,949
Doutor Nichires Holdings Co. Ltd.		8,100		143,307
Fuji Kyuko Co. Ltd.		12,000		129,125
Fujita Kanko Inc.		27,000		98,671
Hiday Hidaka Corp.		3,380		73,622
Hiramatsu Inc.		8,100		46,986
HIS Co. Ltd.		10,800		271,892
Kappa Create Co. Ltd.		8,100		94,755
Kisoji Co. Ltd.		5,400		111,148
KNT-CT Holdings Co. Ltd.^b		27,000		30,019
Koshidaka Holdings Co. Ltd.		2,700		46,777
Kura Corp.		2,700		132,083
Kyoritsu Maintenance Co. Ltd.^a		2,740		178,808
MOS Food Services Inc.		8,100		234,382
Ohsho Food Service Corp.		2,700		103,761
Plenus Co. Ltd.		5,400		89,691
Resorttrust Inc.		21,600		460,254
Ringer Hut Co. Ltd.^a		5,400		119,345
Round One Corp.		18,900		132,475
Royal Holdings Co. Ltd.		8,100		131,796
Saizeriya Co. Ltd.		8,100		169,228
Skylark Co. Ltd.		27,000		335,689
St. Marc Holdings Co. Ltd.		5,400		138,191
Tokyo Dome Corp.		27,000		243,283
Tokyotokeiba Co. Ltd.		27,000		52,207
Toridoll.corp.		5,400		113,654


28		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Tosho Co. Ltd.		2,700	$	118,640
WATAMI Co. Ltd.		5,400		53,668
Yoshinoya Holdings Co. Ltd.^a		16,200		220,051
Zensho Holdings Co. Ltd.		24,300		417,236

				5,295,458
HOUSEHOLD DURABLES — 2.21%
Alpine Electronics Inc.		10,800		129,995
Chofu Seisakusho Co. Ltd.		5,400		128,689
Clarion Co. Ltd.		27,000		74,656
Foster Electric Co. Ltd.		5,400		94,599
France Bed Holdings Co. Ltd.		5,400		45,054
Fujitsu General Ltd.		27,000		549,214
Haseko Corp.		75,600		715,545
JVC Kenwood Corp.		35,100		82,460
Misawa Homes Co. Ltd.		8,100		60,612
PanaHome Corp.		27,000		199,691
Pioneer Corp.^b		81,000		177,764
Pressance Corp.		2,700		111,200
Sangetsu Co. Ltd.		13,500		238,454
Starts Corp. Inc.		8,100		139,157
Sumitomo Forestry Co. Ltd.		35,100		475,081
Tamron Co. Ltd.		5,400		83,270
Token Corp.		2,720		200,644
Zojirushi Corp.		8,700		136,175

				3,642,260
HOUSEHOLD PRODUCTS — 1.01%
Earth Chemical Co. Ltd.		2,700		114,593
Lion Corp.		54,000		755,953
Pigeon Corp.		29,700		790,488

				1,661,034
INDUSTRIAL CONGLOMERATES — 0.31%
Katakura Industries Co. Ltd.		5,400		58,941
Nisshinbo Holdings Inc.		32,400		329,529
TOKAI Holdings Corp.		21,600		126,758

				515,228
INSURANCE — 0.07%
Anicom Holdings Inc.^a		5,400		122,790

				122,790
INTERNET & DIRECT MARKETING RETAIL — 0.20%
ASKUL Corp.^a		5,400		194,470
Belluna Co. Ltd.		13,500		83,009
Senshukai Co. Ltd.		8,100		54,112

				331,591


Security	Shares		Value
INTERNET SOFTWARE & SERVICES — 1.52%
COOKPAD Inc.^a		13,500	$	134,563
CROOZ Inc.		2,700		56,122
DeNA Co. Ltd.		29,700		881,510
Dip Corp.		8,100		233,364
F@N Communications Inc.		10,800		76,535
GMO Internet Inc.		18,900		273,720
Gree Inc.		29,700		150,747
Gurunavi Inc.		8,100		200,474
Infomart Corp.^a		10,800		102,116
Internet Initiative Japan Inc.		8,100		149,337
Istyle Inc.^a		10,800		72,358
SMS Co. Ltd.		8,100		172,909

				2,503,755
IT SERVICES — 1.86%
Digital Garage Inc.		10,800		181,888
DTS Corp.		5,400		111,044
GMO Payment Gateway Inc.^a		5,474		252,439
Ines Corp.		8,100		91,779
Information Services International-Dentsu Ltd.		2,700		49,309
Itochu Techno-Solutions Corp.		13,500		329,555
Kanematsu Electronics Ltd.		2,700		49,596
NEC Networks & System Integration Corp.		5,400		88,177
NET One Systems Co. Ltd.		21,600		146,805
Nihon Unisys Ltd.		16,200		206,269
NS Solutions Corp.		10,800		186,796
SCSK Corp.		13,556		498,676
TIS Inc.		21,648		513,809
TKC Corp.		5,400		159,492
Transcosmos Inc.		8,100		188,022

				3,053,656
LEISURE PRODUCTS — 0.57%
Fields Corp.^a		2,700		33,465
Heiwa Corp.		13,516		289,960
Mars Engineering Corp.		2,700		49,831
Mizuno Corp.		27,000		130,778
Tomy Co. Ltd.		16,200		145,343
Universal Entertainment Corp.^b		5,400		165,234
Yonex Co. Ltd.^a		2,700		131,039

				945,650
LIFE SCIENCES TOOLS & SERVICES — 0.10%
EPS Holdings Inc.		8,100		101,803
Linical Co. Ltd.		5,400		64,528

				166,331


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
MACHINERY — 6.30%
Aichi Corp.		8,100	$	59,672
Aida Engineering Ltd.		13,500		94,625
Anest Iwata Corp.		10,800		99,610
Asahi Diamond Industrial Co. Ltd.		13,500		111,070
Bando Chemical Industries Ltd.		27,000		120,075
CKD Corp.		13,500		146,831
Daifuku Co. Ltd.		24,300		421,230
Daiwa Industries Ltd.		8,100		72,828
DMG Mori Co. Ltd.		29,700		327,910
Ebara Corp.		135,000		694,349
Fuji Machine Manufacturing Co. Ltd.		18,900		216,527
Fujitec Co. Ltd.		13,500		150,225
Fukushima Industries Corp.		2,700		83,009
Furukawa Co. Ltd.		81,000		122,947
Glory Ltd.		16,200		519,196
Harmonic Drive Systems Inc.^a		8,100		227,256
Hitachi Koki Co. Ltd.		13,500		94,886
Hitachi Zosen Corp.		43,200		225,533
Iseki & Co. Ltd.		54,000		135,737
Japan Steel Works Ltd. (The)		81,000		377,454
Juki Corp.		8,100		57,323
Kato Works Co. Ltd.		27,000		105,719
Kitz Corp.		21,600		121,537
Komori Corp.		13,500		166,148
Kyokuto Kaihatsu Kogyo Co. Ltd.		8,100		85,750
Makino Milling Machine Co. Ltd.		27,000		172,804
Max Co. Ltd.		4,000		43,235
Meidensha Corp.		54,000		170,194
METAWATER Co. Ltd.		2,700		76,770
Mitsui Engineering & Shipbuilding Co. Ltd.		189,000		261,295
Miura Co. Ltd.		24,300		458,819
Morita Holdings Corp.		8,100		104,152
Nachi-Fujikoshi Corp.		54,000		183,768
Namura Shipbuilding Co. Ltd.		13,500		84,575
Nippon Sharyo Ltd.^a,b		27,000		69,174
Nippon Thompson Co. Ltd.		16,200		56,853
Nitta Corp.		5,400		125,975
Nitto Kohki Co. Ltd.		2,700		58,941
Noritake Co. Ltd./Nagoya Japan		27,000		60,560
NTN Corp.		108,000		395,727
Obara Group Inc.		2,700		95,669
Oiles Corp.		5,496		89,479
OKUMA Corp.		27,000		206,477


Security	Shares		Value
OSG Corp.		21,600	$	400,947
Ryobi Ltd.		27,000		119,292
Shibuya Corp.		5,400		99,558
Shima Seiki Manufacturing Ltd.		8,100		178,312
Shinmaywa Industries Ltd.		27,000		171,499
Sintokogio Ltd.		10,800		86,245
Sodick Co. Ltd.		10,800		72,150
Star Micronics Co. Ltd.		10,800		125,087
Tadano Ltd.		27,000		268,081
Takeuchi Manufacturing Co. Ltd.		8,100		116,839
Takuma Co. Ltd.		27,000		232,320
Teikoku Sen-I Co. Ltd.		5,400		71,001
Tocalo Co. Ltd.		5,400		109,216
Toshiba Machine Co. Ltd.		27,000		89,012
Tsubakimoto Chain Co.		27,000		203,867
Tsugami Corp.		27,000		125,296
Tsukishima Kikai Co. Ltd.		8,100		78,310
Tsurumi Manufacturing Co. Ltd.		5,400		77,892
Union Tool Co.		2,700		71,132
YAMABIKO Corp.		8,100		66,564
Yushin Precision Equipment Co. Ltd.^a		2,700		59,646

				10,374,180
MARINE — 0.45%
Iino Kaiun Kaisha Ltd.		24,300		87,394
Kawasaki Kisen Kaisha Ltd.^a		243,000		613,168
NS United Kaiun Kaisha Ltd.		27,000		34,195

				734,757
MEDIA — 1.84%
Adways Inc.^a		8,100		44,872
Asatsu-DK Inc.		8,100		198,594
Avex Group Holdings Inc.		8,100		104,936
CyberAgent Inc.		13,500		732,199
Daiichikosho Co. Ltd.		10,800		418,176
Kadokawa Dwango^b		13,508		166,246
Next Co. Ltd.		13,500		92,928
Septeni Holdings Co. Ltd.^a		5,400		140,540
Shochiku Co. Ltd.		27,000		289,486
SKY Perfect JSAT Holdings Inc.		40,500		184,029
Toei Co. Ltd.		27,000		203,345
Tokyo Broadcasting System Holdings Inc.		10,800		148,371
TV Asahi Holdings Corp.		5,400		86,350
USEN Corp.		27,080		86,396
Zenrin Co. Ltd.		8,100		130,543

				3,027,011


30		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
METALS & MINING — 2.50%
Aichi Steel Corp.		27,000	$	143,307
Asahi Holdings Inc.		8,100		138,922
Daido Steel Co. Ltd.		81,000		368,057
Dowa Holdings Co. Ltd.		54,000		361,793
Godo Steel Ltd.		27,000		46,725
Kyoei Steel Ltd.		5,400		104,831
Mitsubishi Steel Manufacturing Co. Ltd.		54,000		86,663
Mitsui Mining & Smelting Co. Ltd.		162,000		330,469
Nakayama Steel Works Ltd.^b		54,000		31,846
Neturen Co. Ltd.		8,100		56,305
Nippon Denko Co. Ltd.		29,700		48,239
Nippon Light Metal Holdings Co. Ltd.		126,900		269,909
Nisshin Steel Co. Ltd.		24,300		312,222
Nittetsu Mining Co. Ltd.		27,000		95,799
Osaka Steel Co. Ltd.		2,700		45,550
OSAKA Titanium Technologies Co. Ltd.^a		5,400		81,912
Pacific Metals Co. Ltd.^a,b		54,000		150,877
Sanyo Special Steel Co. Ltd.		27,000		147,484
Toho Titanium Co. Ltd.		8,100		57,950
Toho Zinc Co. Ltd.		27,000		83,009
Tokyo Rope Manufacturing Co. Ltd.		54,000		93,972
Tokyo Steel Manufacturing Co. Ltd.		27,000		190,032
Topy Industries Ltd.		54,000		109,634
Toyo Kohan Co. Ltd.		13,500		35,631
UACJ Corp.		81,140		253,379
Yamato Kogyo Co. Ltd.		10,800		330,468
Yodogawa Steel Works Ltd.		5,400		141,846

				4,116,831
MULTILINE RETAIL — 0.83%
Fuji Co. Ltd./Ehime		5,400		98,462
H2O Retailing Corp.		21,635		294,505
Izumi Co. Ltd.		10,800		423,918
Kintetsu Department Store Co. Ltd.^b		27,000		89,273
Matsuya Co. Ltd.^a		8,100		57,245
Parco Co. Ltd.		5,400		46,568
Seria Co. Ltd.		5,400		357,094

				1,367,065
OIL, GAS & CONSUMABLE FUELS — 0.51%
Cosmo Energy Holdings Co. Ltd.		16,200		169,150
ITOCHU Enex Co. Ltd.		13,500		97,887
Japan Petroleum Exploration Co. Ltd.		8,100		178,469


Security	Shares		Value
Nippon Gas Co. Ltd.		10,800	$	301,128
San-Ai Oil Co. Ltd.		13,500		84,836

				831,470
PAPER & FOREST PRODUCTS — 0.71%
Daiken Corp.		27,000		100,237
Daio Paper Corp.^a		18,900		200,813
Hokuetsu Kishu Paper Co. Ltd.		35,100		220,573
Mitsubishi Paper Mills Ltd.^b		81,000		54,817
Nippon Paper Industries Co. Ltd.		27,000		500,401
Tokushu Tokai Paper Co. Ltd.		27,000		91,101

				1,167,942
PERSONAL PRODUCTS — 1.15%
Artnature Inc.		5,400		36,701
Ci:z Holdings Co. Ltd.		8,100		206,347
Euglena Co. Ltd.^a,b		16,200		228,352
Fancl Corp.		10,800		170,507
Kobayashi Pharmaceutical Co. Ltd.		16,200		752,560
Mandom Corp.		5,400		221,096
Milbon Co. Ltd.		2,700		116,943
Noevir Holdings Co. Ltd.		5,400		157,925

				1,890,431
PHARMACEUTICALS — 2.76%
ASKA Pharmaceutical Co. Ltd.		5,400		84,732
JCR Pharmaceuticals Co. Ltd.		5,400		139,914
Kaken Pharmaceutical Co. Ltd.		8,400		474,269
Kissei Pharmaceutical Co. Ltd.		5,400		129,995
KYORIN Holdings Inc.		10,800		216,449
Mochida Pharmaceutical Co. Ltd.		2,700		186,639
Nichi-Iko Pharmaceutical Co. Ltd.		10,850		191,646
Nippon Shinyaku Co. Ltd.		13,500		625,828
Rohto Pharmaceutical Co. Ltd.		24,300		380,822
Sawai Pharmaceutical Co. Ltd.		8,100		532,508
Seikagaku Corp.		10,800		152,548
Sosei Group Corp.^a,b		4,500		727,848
Torii Pharmaceutical Co. Ltd.		2,700		54,164
Towa Pharmaceutical Co. Ltd.		2,700		102,064
Tsumura & Co.		16,200		426,633
ZERIA Pharmaceutical Co. Ltd.		8,100		114,568

				4,540,627
PROFESSIONAL SERVICES — 1.20%
Benefit One Inc.		5,400		157,925
en-japan Inc.		8,100		152,000
Funai Soken Holdings Inc.		6,800		90,724
JAC Recruitment Co. Ltd.		5,400		57,323
Meitec Corp.		8,100		259,989


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Nomura Co. Ltd.		10,800	$	147,014
Outsourcing Inc.		2,700		101,020
Tanseisha Co. Ltd.		8,100		56,305
TechnoPro Holdings Inc.		8,100		263,513
Temp Holdings Co. Ltd.		37,800		603,353
Yumeshin Holdings Co. Ltd.^a		10,800		80,712

				1,969,878
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.46%
Ardepro Co. Ltd.^a		32,400		33,517
Daibiru Corp.		13,500		124,252
Daikyo Inc.		81,000		128,428
Goldcrest Co. Ltd.		5,400		86,559
Heiwa Real Estate Co. Ltd.		10,800		139,496
Kenedix Inc.		67,500		309,977
Leopalace21 Corp.		64,800		429,766
Open House Co. Ltd.		8,100		175,023
Relo Group Inc.		2,700		382,936
Sumitomo Real Estate Sales Co. Ltd.		5,400		101,960
Takara Leben Co. Ltd.		21,600		140,958
TOC Co. Ltd.		16,200		128,115
Tosei Corp.		8,100		57,010
Unizo Holdings Co. Ltd.		5,400		156,046

				2,394,043
ROAD & RAIL — 2.12%
Fukuyama Transporting Co. Ltd.		27,000		156,098
Hitachi Transport System Ltd.		13,500		264,296
Nankai Electric Railway Co. Ltd.		135,000		622,565
Nikkon Holdings Co. Ltd.		16,200		349,419
Nishi-Nippon Railroad Co. Ltd.		81,000		372,756
Sankyu Inc.		81,000		461,246
Seino Holdings Co. Ltd.		37,800		396,145
Senko Co. Ltd.		27,000		163,407
Sotetsu Holdings Inc.		108,000		540,861
Trancom Co. Ltd.		2,700		162,624

				3,489,417
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.33%
Advantest Corp.		40,500		606,511
Disco Corp.		8,100		914,661
Japan Material Co. Ltd.		2,700		99,976
Megachips Corp.^a		5,400		85,410
Micronics Japan Co. Ltd.		8,100		107,990
Sanken Electric Co. Ltd.		27,000		87,185
SCREEN Holdings Co. Ltd.		54,000		700,092


Security	Shares		Value
Shindengen Electric Manufacturing Co. Ltd.		27,000	$	106,502
Shinko Electric Industries Co. Ltd.		18,900		104,700
Sumco Corp.		48,600		424,754
Tokyo Seimitsu Co. Ltd.		10,800		287,032
ULVAC Inc.		10,800		304,261

				3,829,074
SOFTWARE — 1.18%
Broadleaf Co. Ltd.		8,100		83,635
Capcom Co. Ltd.		10,800		234,930
COLOPL Inc.		13,500		201,779
Fuji Soft Inc.		5,400		146,231
Justsystems Corp.		8,100		67,738
Koei Tecmo Holdings Co. Ltd.		10,840		195,033
Marvelous Inc.^a		8,100		57,715
NSD Co. Ltd.		8,100		125,296
OBIC Business Consultants Co. Ltd.		2,700		123,208
Square Enix Holdings Co. Ltd.		24,300		711,838

				1,947,403
SPECIALTY RETAIL — 2.77%
Adastria Co. Ltd.		8,100		180,426
Alpen Co. Ltd.		5,400		97,157
AOKI Holdings Inc.		10,800		111,409
Aoyama Trading Co. Ltd.		13,500		438,536
Arcland Sakamoto Co. Ltd.		5,400		57,897
Asahi Co. Ltd.^a		5,400		68,391
Autobacs Seven Co. Ltd.		16,200		224,437
BIC Camera Inc.		24,300		191,703
Chiyoda Co. Ltd.		5,400		113,602
DCM Holdings Co. Ltd.		24,300		185,125
EDION Corp.		18,900		148,371
Geo Holdings Corp.		8,100		103,134
IDOM Inc.^a		16,200		96,635
Jin Co. Ltd.^a		2,700		123,991
Joshin Denki Co. Ltd.		7,000		57,524
Joyful Honda Co. Ltd.		8,100		195,853
K’s Holdings Corp.		21,600		341,014
Kohnan Shoji Co. Ltd.		8,100		147,301
Komeri Co. Ltd.		8,100		187,944
Laox Co. Ltd.^a,b		8,100		59,437
Nishimatsuya Chain Co. Ltd.		13,500		185,595
Nojima Corp.^a		5,400		61,552
Pal Co. Ltd.		2,700		56,383
PC Depot Corp.^a		8,100		55,835
Sac’s Bar Holdings Inc.		5,400		53,930


32		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Sanrio Co. Ltd.		13,500	$	251,245
Shimachu Co. Ltd.		13,500		301,624
T-Gaia Corp.		8,100		110,809
United Arrows Ltd.		5,400		138,191
VT Holdings Co. Ltd.		18,900		79,485
Xebio Holdings Co. Ltd.		5,400		82,017
Yellow Hat Ltd.		2,700		49,701

				4,556,254
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.57%
Eizo Corp.		5,400		135,476
Elecom Co. Ltd.		5,400		128,376
Hitachi Maxell Ltd.		10,800		168,836
Japan Digital Laboratory Co. Ltd.		5,400		76,796
Melco Holdings Inc.		2,700		64,632
Riso Kagaku Corp.		5,400		88,543
Roland DG Corp.		2,700		55,470
Toshiba TEC Corp.^b		27,000		105,458
Wacom Co. Ltd.		37,800		118,405

				941,992
TEXTILES, APPAREL & LUXURY GOODS — 1.11%
Descente Ltd.		10,800		120,806
Fujibo Holdings Inc.		27,000		80,398
Gunze Ltd.		54,000		159,231
Japan Wool Textile Co. Ltd. (The)		27,000		182,724
Kurabo Industries Ltd.		54,000		96,582
Onward Holdings Co. Ltd.		27,000		190,032
Sanyo Shokai Ltd.		27,000		42,810
Seiko Holdings Corp.		54,000		167,062
Seiren Co. Ltd.		13,500		150,616
TSI Holdings Co. Ltd.		18,900		104,335
Tsutsumi Jewelry Co. Ltd.		2,700		42,053
Unitika Ltd.^b		162,000		86,141
Wacoal Holdings Corp.		27,000		288,703
Yondoshi Holdings Inc.		5,400		114,750

				1,826,243
TRADING COMPANIES & DISTRIBUTORS — 3.02%
Hanwa Co. Ltd.		54,000		301,233
Inaba Denki Sangyo Co. Ltd.		5,400		177,242
Inabata & Co. Ltd.		10,800		100,863
Iwatani Corp.		54,000		296,534
Japan Pulp & Paper Co. Ltd.		27,000		86,924
Kamei Corp.		5,400		43,175
Kanamoto Co. Ltd.		8,100		171,108
Kanematsu Corp.		108,000		158,708


Security	Shares		Value
Kuroda Electric Co. Ltd.		8,100	$	152,156
MISUMI Group Inc.		70,200		1,225,709
MonotaRO Co. Ltd.^a		16,200		408,935
Nagase & Co. Ltd.		27,000		299,667
Nippon Steel & Sumikin Bussan Corp.		28,440		97,334
Nishio Rent All Co. Ltd.		5,400		133,440
Sojitz Corp.		324,000		776,836
Trusco Nakayama Corp.		5,400		247,982
Wakita & Co. Ltd.		10,800		76,013
Yamazen Corp.		13,500		102,586
Yuasa Trading Co. Ltd.		5,400		104,570

				4,961,015
TRANSPORTATION INFRASTRUCTURE — 0.13%
Nissin Corp.		27,000		74,917
Sumitomo Warehouse Co. Ltd. (The)		27,000		133,910

				208,827
WIRELESS TELECOMMUNICATION SERVICES — 0.03%
Japan Communications Inc.^b		27,000		48,552

				48,552

TOTAL COMMON STOCKS (Cost: $169,476,980)				164,149,878

SHORT-TERM INVESTMENTS — 4.22%

MONEY MARKET FUNDS — 4.22%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		6,934,592		6,934,592
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		14,128		14,128

				6,948,720

TOTAL SHORT-TERM INVESTMENTS (Cost: $6,948,720)				6,948,720


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 103.98% (Cost: $176,425,700)^f	$	171,098,598
Other Assets, Less Liabilities — (3.98)%		(6,545,192	)

NET ASSETS — 100.00%	$	164,553,406

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

^b	Non-income earning security.

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $179,223,093. Net unrealized depreciation was $8,124,495, of which $14,202,678 represented gross unrealized appreciation on securities and $22,327,173 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	163,940,873	$	209,005	$	—	$	164,149,878
Money market funds		6,948,720		—		—		6,948,720

Total	$	170,889,593	$	209,005	$	—	$	171,098,598

See notes to financial statements.


34		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI MALAYSIA ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.67%

AIRLINES — 0.82%
AirAsia Bhd^a		3,728,000	$	2,757,736

				2,757,736
AUTOMOBILES — 0.57%
UMW Holdings Bhd^a		1,391,500		1,911,147

				1,911,147
BANKS — 27.11%
Alliance Financial Group Bhd		2,997,400		2,919,425
AMMB Holdings Bhd		5,384,937		5,829,090
CIMB Group Holdings Bhd		9,414,692		11,143,021
Hong Leong Bank Bhd		1,931,040		6,228,086
Hong Leong Financial Group Bhd		683,300		2,709,275
Malayan Banking Bhd^a		10,191,593		19,651,894
Public Bank Bhd		8,100,480		39,548,639
RHB Bank Bhd^a		2,364,002		2,914,563
RHB Bank Bhd New^b		1,621,200		4

				90,943,997
CHEMICALS — 3.51%
Petronas Chemicals Group Bhd		7,143,100		11,783,341

				11,783,341
CONSTRUCTION & ENGINEERING — 5.02%
Dialog Group Bhd		9,406,754		3,572,038
Gamuda Bhd		5,026,100		6,047,927
IJM Corp. Bhd		8,554,080		7,234,742

				16,854,707
CONSTRUCTION MATERIALS — 0.60%
Lafarge Malaysia Bhd		1,011,560		2,007,905

				2,007,905
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.69%
Telekom Malaysia Bhd		3,362,500		5,671,187

				5,671,187
ELECTRIC UTILITIES — 10.94%
Tenaga Nasional Bhd		10,094,312		36,688,487

				36,688,487
ENERGY EQUIPMENT & SERVICES — 1.34%
Sapurakencana Petroleum Bhd^a		11,509,700		4,484,114

				4,484,114
FOOD PRODUCTS — 7.26%
Felda Global Ventures Holdings Bhd^a		3,930,500		2,200,033
Genting Plantations Bhd		698,300		1,825,171
IOI Corp. Bhd		6,733,730		7,338,944


Security	Shares		Value
Kuala Lumpur Kepong Bhd		1,271,600	$	7,393,497
PPB Group Bhd		1,412,366		5,600,011

				24,357,656
GAS UTILITIES — 3.36%
Petronas Gas Bhd		2,060,600		11,279,822

				11,279,822
HEALTH CARE EQUIPMENT & SUPPLIES — 0.63%
Hartalega Holdings Bhd^a		1,947,000		2,102,789

				2,102,789
HEALTH CARE PROVIDERS & SERVICES — 4.12%
IHH Healthcare Bhd		8,573,200		13,825,355

				13,825,355
HOTELS, RESTAURANTS & LEISURE — 7.21%
Berjaya Sports Toto Bhd		1,989,517		1,643,418
Genting Bhd		6,681,600		12,850,815
Genting Malaysia Bhd		8,842,900		9,681,291

				24,175,524
INDUSTRIAL CONGLOMERATES — 5.37%
HAP Seng Consolidated Bhd		1,747,900		3,353,141
Sime Darby Bhd		7,535,114		14,659,610

				18,012,751
MARINE — 1.85%
MISC Bhd		3,324,020		6,196,422

				6,196,422
MEDIA — 1.00%
Astro Malaysia Holdings Bhd		4,621,500		3,361,713

				3,361,713
MULTI-UTILITIES — 2.24%
YTL Corp. Bhd^a		12,860,112		5,327,330
YTL Power International Bhd		5,983,000		2,198,168

				7,525,498
OIL, GAS & CONSUMABLE FUELS — 1.02%
Petronas Dagangan Bhd		592,800		3,420,422

				3,420,422
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.85%
IOI Properties Group Bhd		4,582,700		2,847,591

				2,847,591
TOBACCO — 1.54%
British American Tobacco Malaysia Bhd		424,900		5,156,843

				5,156,843


SCHEDULES OF INVESTMENTS			35

Schedule of Investments (Continued)

iSHARES^® MSCI MALAYSIA ETF

August 31, 2016


Security	Shares		Value
TRANSPORTATION INFRASTRUCTURE — 2.02%
Malaysia Airports Holdings Bhd		2,220,800	$	3,449,893
Westports Holdings Bhd		3,051,000		3,347,787

				6,797,680
WIRELESS TELECOMMUNICATION SERVICES — 9.60%
Axiata Group Bhd		7,873,000		10,657,815
DiGi.Com Bhd^a		10,410,300		12,886,132
Maxis Bhd^a		5,586,100		8,650,156

				32,194,103

TOTAL COMMON STOCKS
(Cost: $200,411,890)				334,356,790

SHORT-TERM INVESTMENTS — 7.78%

MONEY MARKET FUNDS — 7.78%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		25,872,953		25,872,953
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		228,825		228,825

				26,101,778

TOTAL SHORT-TERM INVESTMENTS
(Cost: $26,101,778)				26,101,778


	Value
TOTAL INVESTMENTS IN SECURITIES — 107.45%
(Cost: $226,513,668)^f	$	360,458,568
Other Assets, Less Liabilities — (7.45)%		(25,003,382	)

NET ASSETS — 100.00%	$	335,455,186

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

^b	Non-income earning security.

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $251,534,835. Net unrealized appreciation was $108,923,733, of which $134,619,955 represented gross unrealized appreciation on securities and $25,696,222 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	334,356,786	$	—	$	4	$	334,356,790
Money market funds		26,101,778		—		—		26,101,778

Total	$	360,458,564	$	—	$	4	$	360,458,568

See notes to financial statements.


36		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI PACIFIC ex JAPAN ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.19%

AUSTRALIA — 59.23%
AGL Energy Ltd.		1,064,448	$	14,839,744
Alumina Ltd.		3,855,744		3,854,055
Amcor Ltd./Australia		1,827,840		21,979,418
AMP Ltd.		4,668,480		18,455,222
APA Group		1,762,176		12,237,122
Aristocrat Leisure Ltd.		853,440		9,685,186
ASX Ltd.		306,240		11,772,416
Aurizon Holdings Ltd.		3,240,000		10,689,750
AusNet Services		2,807,382		3,629,009
Australia & New Zealand Banking Group Ltd.		4,603,200		93,061,523
Bank of Queensland Ltd.		600,192		4,758,836
Bendigo & Adelaide Bank Ltd.		725,760		5,988,987
BHP Billiton Ltd.		5,067,072		77,800,694
Boral Ltd.		1,172,544		5,824,902
Brambles Ltd.		2,497,152		23,121,378
Caltex Australia Ltd.		414,144		10,566,939
Challenger Ltd./Australia		897,024		6,195,518
CIMIC Group Ltd.		156,480		3,482,213
Coca-Cola Amatil Ltd.		907,392		6,669,478
Cochlear Ltd.		90,432		9,576,155
Commonwealth Bank of Australia		2,703,552		145,907,523
Computershare Ltd.		733,440		5,446,024
Crown Resorts Ltd.		573,120		5,655,465
CSL Ltd.		721,536		58,619,449
Dexus Property Group		1,526,208		11,149,054
Domino’s Pizza Enterprises Ltd.		96,576		5,493,710
DUET Group		3,776,064		7,463,682
Flight Centre Travel Group Ltd.^a		86,592		2,398,133
Fortescue Metals Group Ltd.		2,452,800		9,032,672
Goodman Group		2,798,976		15,966,105
GPT Group (The)		2,824,704		11,315,094
Harvey Norman Holdings Ltd.		876,096		3,542,354
Healthscope Ltd.		2,737,536		6,295,631
Incitec Pivot Ltd.		2,664,000		5,706,070
Insurance Australia Group Ltd.		3,847,296		16,076,386
James Hardie Industries PLC		702,528		11,451,997
LendLease Group		866,880		9,003,784
Macquarie Group Ltd.		482,880		29,286,723
Medibank Pvt Ltd.		4,352,064		8,798,438
Mirvac Group		5,816,832		10,142,209
National Australia Bank Ltd.		4,170,240		85,687,523
Newcrest Mining Ltd.^b		1,207,680		20,140,359


Security	Shares		Value
Oil Search Ltd.		2,130,238	$	10,758,592
Orica Ltd.		589,248		6,536,458
Origin Energy Ltd.		2,766,528		10,936,512
Platinum Asset Management Ltd.		377,664		1,527,024
Qantas Airways Ltd.		813,312		1,980,433
QBE Insurance Group Ltd.		2,163,840		16,132,246
Ramsay Health Care Ltd.		223,296		13,923,873
REA Group Ltd.		83,904		3,695,834
Rio Tinto Ltd.		669,504		23,950,697
Santos Ltd.		2,524,992		8,425,603
Scentre Group		8,380,032		31,301,136
Seek Ltd.		516,288		6,235,423
Sonic Healthcare Ltd.		619,968		10,716,554
South32 Ltd.^b		8,394,816		12,113,522
Stockland		3,758,976		13,701,538
Suncorp Group Ltd.		2,032,320		19,413,135
Sydney Airport		1,726,848		9,448,079
Tabcorp Holdings Ltd.		1,307,328		4,883,138
Tatts Group Ltd.		2,304,000		6,597,289
Telstra Corp. Ltd.		6,751,680		26,690,433
TPG Telecom Ltd.		536,256		4,912,854
Transurban Group		3,211,392		27,658,968
Treasury Wine Estates Ltd.		1,163,904		9,823,244
Vicinity Centres		5,300,160		13,184,844
Vocus Communications Ltd.		794,688		4,592,837
Wesfarmers Ltd.		1,777,152		56,683,672
Westfield Corp.		3,110,592		23,891,971
Westpac Banking Corp.		5,262,336		116,511,648
Woodside Petroleum Ltd.		1,198,080		25,778,948
Woolworths Ltd.		2,015,232		35,909,936

				1,396,683,371
HONG KONG — 26.98%
AIA Group Ltd.		19,008,014		120,197,646
ASM Pacific Technology Ltd.		384,000		2,990,118
Bank of East Asia Ltd. (The)^a		1,882,520		7,608,470
BOC Hong Kong Holdings Ltd.		5,856,000		20,497,038
Cathay Pacific Airways Ltd.		1,859,000		2,674,630
Cheung Kong Infrastructure Holdings Ltd.		1,036,208		8,703,252
Cheung Kong Property Holdings Ltd.		4,224,232		29,680,039
CK Hutchison Holdings Ltd.		4,224,232		54,295,411
CLP Holdings Ltd.		2,592,000		26,582,473
First Pacific Co. Ltd./Hong Kong		3,456,500		2,589,005
Galaxy Entertainment Group Ltd.		3,648,000		11,875,077


SCHEDULES OF INVESTMENTS			37

Schedule of Investments (Continued)

iSHARES^® MSCI PACIFIC ex JAPAN ETF

August 31, 2016


Security	Shares		Value
Hang Lung Properties Ltd.		3,551,736	$	8,095,490
Hang Seng Bank Ltd.		1,209,600		21,223,652
Henderson Land Development Co. Ltd.		1,729,820		10,113,429
HK Electric Investments & HK Electric Investments Ltd.^c		4,128,000		3,874,282
HKT Trust & HKT Ltd.		4,115,338		5,676,877
Hong Kong & China Gas Co. Ltd.		12,026,852		22,947,421
Hong Kong Exchanges and Clearing Ltd.		1,823,600		44,598,178
Hongkong Land Holdings Ltd.		1,843,200		11,962,368
Hysan Development Co. Ltd.		960,830		4,638,938
Kerry Properties Ltd.		1,023,500		2,975,463
Li & Fung Ltd.^a		9,359,200		4,814,285
Link REIT		3,561,586		25,896,600
Melco Crown Entertainment Ltd. ADR		299,136		3,882,785
MGM China Holdings Ltd.		1,536,000		2,364,372
MTR Corp. Ltd.		2,304,286		12,595,704
New World Development Co. Ltd.		8,832,921		11,079,940
NWS Holdings Ltd.		2,423,000		4,329,491
PCCW Ltd.		6,720,867		4,262,954
Power Assets Holdings Ltd.		2,208,000		21,121,423
Sands China Ltd.		3,818,400		15,014,175
Shangri-La Asia Ltd.		1,997,000		2,162,607
Sino Land Co. Ltd.		4,846,800		8,297,999
SJM Holdings Ltd.^a		3,072,000		1,932,686
Sun Hung Kai Properties Ltd.		2,304,000		32,435,853
Swire Pacific Ltd. Class A		864,000		9,545,854
Swire Properties Ltd.		1,834,000		5,166,197
Techtronic Industries Co. Ltd.		2,208,207		8,953,249
WH Group Ltd.^c		9,216,000		7,247,571
Wharf Holdings Ltd. (The)		2,150,600		15,193,590
Wheelock & Co. Ltd.		1,344,000		7,693,119
Wynn Macau Ltd.^a		2,457,600		3,421,804
Yue Yuen Industrial Holdings Ltd.		1,152,000		4,901,022

				636,112,537
NEW ZEALAND — 1.68%
Auckland International Airport Ltd.		1,498,560		8,154,038
Contact Energy Ltd.		1,134,800		4,281,146
Fletcher Building Ltd.		1,087,296		8,361,631
Mercury NZ Ltd.		1,095,360		2,519,147
Meridian Energy Ltd.		2,007,552		4,223,788
Ryman Healthcare Ltd.		586,954		4,088,017
Spark New Zealand Ltd.		2,883,456		7,959,858

				39,587,625


Security	Shares		Value
SINGAPORE — 11.30%
Ascendas REIT^a		3,571,225	$	6,420,003
CapitaLand Commercial Trust		3,283,200		3,722,012
CapitaLand Ltd.		4,051,200		9,125,864
CapitaLand Mall Trust		3,936,000		6,238,221
City Developments Ltd.^a		652,800		4,066,678
ComfortDelGro Corp. Ltd.		3,417,600		7,096,752
DBS Group Holdings Ltd.^a		2,764,800		30,410,061
Genting Singapore PLC		9,619,200		5,081,868
Global Logistic Properties Ltd.^a		4,243,200		5,650,958
Golden Agri-Resources Ltd.		11,214,087		2,962,227
Hutchison Port Holdings Trust		8,294,400		3,566,592
Jardine Cycle & Carriage Ltd.^a		153,600		4,789,962
Jardine Matheson Holdings Ltd.		392,000		23,461,200
Keppel Corp. Ltd.^a		2,304,000		8,757,178
Noble Group Ltd.^a,b		14,012,916		1,223,566
Oversea-Chinese Banking Corp. Ltd.^a		4,876,824		30,738,466
SembCorp Industries Ltd.^a		1,574,440		3,142,295
Sembcorp Marine Ltd.^a		1,382,400		1,293,290
Singapore Airlines Ltd.		864,000		6,656,639
Singapore Exchange Ltd.		1,264,300		7,013,323
Singapore Press Holdings Ltd.^a		2,157,717		5,968,810
Singapore Technologies Engineering Ltd.		2,476,800		5,870,099
Singapore Telecommunications Ltd.		12,614,428		37,208,791
StarHub Ltd.		998,400		2,681,252
Suntec REIT		3,820,800		4,695,924
United Overseas Bank Ltd.		2,037,800		26,929,433
UOL Group Ltd.		748,800		3,054,869
Wilmar International Ltd.		3,052,800		6,899,236
Yangzijiang Shipbuilding Holdings Ltd.		3,129,600		1,756,719

				266,482,288

TOTAL COMMON STOCKS
(Cost: $2,558,288,101)				2,338,865,821

SHORT-TERM INVESTMENTS — 1.70%

MONEY MARKET FUNDS — 1.70%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		38,660,645		38,660,645


38		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI PACIFIC ex JAPAN ETF

August 31, 2016


Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		1,504,324	$	1,504,324

				40,164,969

TOTAL SHORT-TERM INVESTMENTS
(Cost: $40,164,969)				40,164,969

TOTAL INVESTMENTS IN SECURITIES — 100.89%
(Cost: $2,598,453,070)^g				2,379,030,790
Other Assets, Less Liabilities — (0.89)%				(21,068,705	)

NET ASSETS — 100.00%			$	2,357,962,085

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

^d	Affiliated money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $2,681,988,657. Net unrealized depreciation was $302,957,867, of which $208,671,390 represented gross unrealized appreciation on securities and $511,629,257 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	2,338,865,821	$	—	$	—	$	2,338,865,821
Money market funds		40,164,969		—		—		40,164,969

Total	$	2,379,030,790	$	—	$	—	$	2,379,030,790

See notes to financial statements.


SCHEDULES OF INVESTMENTS			39

Schedule of Investments

iSHARES^® MSCI SINGAPORE ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 98.86%

AEROSPACE & DEFENSE — 2.55%
Singapore Technologies Engineering Ltd.		6,042,000	$	14,319,742

				14,319,742
AIRLINES — 2.76%
Singapore Airlines Ltd.		2,014,267		15,518,805

				15,518,805
BANKS — 34.18%
DBS Group Holdings Ltd.^a		5,989,500		65,878,567
Oversea-Chinese Banking Corp. Ltd.^a		10,600,250		66,813,037
United Overseas Bank Ltd.		4,505,000		59,533,368

				192,224,972
CAPITAL MARKETS — 2.85%
Singapore Exchange Ltd.		2,894,000		16,053,594

				16,053,594
DISTRIBUTORS — 2.06%
Jardine Cycle & Carriage Ltd.^a		371,044		11,570,877

				11,570,877
DIVERSIFIED TELECOMMUNICATION SERVICES — 14.57%
Singapore Telecommunications Ltd.		27,772,268		81,919,886

				81,919,886
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 8.88%
Ascendas REIT^a		8,427,081		15,149,392
CapitaLand Commercial Trust		7,897,000		8,952,464
CapitaLand Mall Trust^a		9,275,000		14,700,077
Suntec REIT^a		9,063,000		11,138,808

				49,940,741
FOOD PRODUCTS — 4.20%
Golden Agri-Resources Ltd.		26,447,228		6,986,097
Wilmar International Ltd.		7,367,000		16,649,198

				23,635,295
HOTELS, RESTAURANTS & LEISURE — 2.14%
Genting Singapore PLC		22,737,000		12,012,063

				12,012,063
INDUSTRIAL CONGLOMERATES — 5.04%
Keppel Corp. Ltd.^a		5,459,000		20,748,886
SembCorp Industries Ltd.		3,816,000		7,616,040

				28,364,926


Security	Shares		Value
MACHINERY — 1.34%
Sembcorp Marine Ltd.^a		3,233,000	$	3,024,599
Yangzijiang Shipbuilding Holdings Ltd.^a		8,056,000		4,522,024

				7,546,623
MEDIA — 2.67%
Singapore Press Holdings Ltd.^a		5,439,300		15,046,528

				15,046,528
REAL ESTATE MANAGEMENT & DEVELOPMENT — 9.34%
CapitaLand Ltd.		9,752,000		21,967,671
City Developments Ltd.^a		1,537,000		9,574,883
Global Logistic Properties Ltd.^a		9,907,400		13,194,358
UOL Group Ltd.		1,908,000		7,784,041

				52,520,953
ROAD & RAIL — 3.03%
ComfortDelGro Corp. Ltd.		8,215,000		17,058,700

				17,058,700
TRADING COMPANIES & DISTRIBUTORS — 0.51%
Noble Group Ltd.^a,b		32,962,598		2,878,196

				2,878,196
TRANSPORTATION INFRASTRUCTURE — 1.53%
Hutchison Port Holdings Trust^a		19,978,300		8,590,669

				8,590,669
WIRELESS TELECOMMUNICATION SERVICES — 1.21%
StarHub Ltd.^a		2,544,000		6,832,036

				6,832,036

TOTAL COMMON STOCKS				556,034,606
(Cost: $687,054,232)

SHORT-TERM INVESTMENTS — 9.30%

MONEY MARKET FUNDS — 9.30%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		51,547,511		51,547,511
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		748,216		748,216

				52,295,727

TOTAL SHORT-TERM INVESTMENTS
(Cost: $52,295,727)				52,295,727


40		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SINGAPORE ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 108.16%
(Cost: $739,349,959)^f	$	608,330,333
Other Assets, Less Liabilities — (8.16)%		(45,911,895	)

NET ASSETS — 100.00%	$	562,418,438

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

^b	Non-income earning security.

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $753,857,735. Net unrealized depreciation was $145,527,402, of which $10,686,689 represented gross unrealized appreciation on securities and $156,214,091 represented gross unrealized depreciation on securities.

Schedule 1 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2016 were as follows:


Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
MSCI Singapore Index		279		Sep. 2016		Singapore Exchange	$	6,486,821	$	6,354,448	$	(132,373	)

Schedule 2 — Fair Value Measurements


	Level 1			Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	556,034,606		$	—	$	—	$	556,034,606
Money market funds		52,295,727			—		—		52,295,727

Total	$	608,330,333		$	—	$	—	$	608,330,333

Derivative financial instruments^a:
Liabilities:
Futures contracts	$	(132,373	)	$	—	$	—	$	(132,373	)

Total	$	(132,373	)	$	—	$	—	$	(132,373	)

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			41

Schedule of Investments

iSHARES^® MSCI TAIWAN ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 98.74%

AIRLINES — 0.39%
China Airlines Ltd.		16,663,761	$	4,836,773
EVA Airways Corp.		11,969,193		5,545,048

				10,381,821
AUTO COMPONENTS — 0.84%
Cheng Shin Rubber Industry Co. Ltd.^a		10,508,670		22,321,878

				22,321,878
AUTOMOBILES — 0.14%
Yulon Motor Co. Ltd.^a		4,385,362		3,793,769

				3,793,769
BANKS — 9.78%
Chang Hwa Commercial Bank Ltd.		28,816,570		14,485,252
China Development Financial Holding Corp.^a		74,545,508		18,841,650
CTBC Financial Holding Co. Ltd.		87,700,783		50,718,059
E.Sun Financial Holding Co. Ltd.		45,604,115		25,654,605
First Financial Holding Co. Ltd.		53,140,090		27,298,135
Hua Nan Financial Holdings Co. Ltd.		43,850,711		22,595,267
Mega Financial Holding Co. Ltd.^a		60,513,271		41,193,383
SinoPac Financial Holdings Co. Ltd.		55,251,118		16,158,913
Taishin Financial Holding Co. Ltd.		47,962,210		18,138,590
Taiwan Business Bank^b		22,802,652		6,094,026
Taiwan Cooperative Financial Holding Co. Ltd.^a		42,227,286		18,564,808

				259,742,688
BIOTECHNOLOGY — 0.46%
OBI Pharma Inc.^a,b		547,000		6,843,857
TaiMed Biologics Inc.^b		877,000		5,431,068

				12,274,925
CAPITAL MARKETS — 0.67%
Yuanta Financial Holding Co. Ltd.		49,989,248		17,723,611

				17,723,611
CHEMICALS — 6.09%
Formosa Chemicals & Fibre Corp.		17,540,610		45,550,693
Formosa Plastics Corp.		23,679,518		58,432,935
Nan Ya Plastics Corp.		27,187,938		51,924,459


Security	Shares		Value
Taiwan Fertilizer Co. Ltd.		4,385,000	$	5,790,375

				161,698,462
CONSTRUCTION MATERIALS — 1.21%
Asia Cement Corp.		12,278,136		10,970,049
Taiwan Cement Corp.		18,417,504		21,040,782

				32,010,831
DIVERSIFIED FINANCIAL SERVICES — 2.26%
Chailease Holding Co. Ltd.^a		5,262,937		9,089,329
Fubon Financial Holding Co. Ltd.		35,957,515		50,881,405

				59,970,734
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.09%
Asia Pacific Telecom Co. Ltd.^b		9,647,000		3,253,113
Chunghwa Telecom Co. Ltd.		21,925,648		78,773,542

				82,026,655
ELECTRICAL EQUIPMENT — 0.33%
Teco Electric and Machinery Co. Ltd.		10,524,092		8,855,620
Ya Hsin Industrial Co. Ltd.^b		6,845,461		2

				8,855,622
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 15.18%
AU Optronics Corp.^a		51,743,830		20,384,106
Delta Electronics Inc.		11,401,180		59,286,639
Hon Hai Precision Industry Co. Ltd.		78,930,003		218,901,066
Innolux Corp.^a		48,235,873		17,025,946
Largan Precision Co. Ltd.		536,794		60,225,545
Pacific Electric Wire & Cable Co. Ltd.^b		197		—
Simplo Technology Co. Ltd.^a		1,520,835		5,008,659
Synnex Technology International Corp.		7,367,364		7,778,216
WPG Holdings Ltd.		8,754,744		10,415,581
Zhen Ding Technology Holding Ltd.^a		2,162,072		4,333,615

				403,359,373
FOOD & STAPLES RETAILING — 0.93%
President Chain Store Corp.		3,118,215		24,813,642

				24,813,642
FOOD PRODUCTS — 2.18%
Standard Foods Corp.		1,946,439		4,803,145
Uni-President Enterprises Corp.		28,064,189		53,067,280

				57,870,425


42		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI TAIWAN ETF

August 31, 2016


Security	Shares		Value
HOUSEHOLD DURABLES — 0.37%
Nien Made Enterprise Co. Ltd.		877,000	$	9,950,048

				9,950,048
INDUSTRIAL CONGLOMERATES — 0.41%
Far Eastern New Century Corp.		14,909,843		10,995,425

				10,995,425
INSURANCE — 3.08%
Cathay Financial Holding Co. Ltd.		43,850,483		55,416,850
China Life Insurance Co. Ltd./Taiwan		19,274,193		17,068,903
Shin Kong Financial Holding Co. Ltd.^b		42,973,205		9,426,057

				81,911,810
LEISURE PRODUCTS — 0.54%
Giant Manufacturing Co. Ltd.^a		1,517,590		9,780,721
Merida Industry Co. Ltd.^a		1,140,100		4,653,029

				14,433,750
MACHINERY — 0.17%
Hiwin Technologies Corp.^a		895,532		4,628,583

				4,628,583
MARINE — 0.10%
Evergreen Marine Corp. Taiwan Ltd.		7,016,673		2,653,601

				2,653,601
METALS & MINING — 1.65%
China Steel Corp.^a		63,144,977		43,780,889

				43,780,889
OIL, GAS & CONSUMABLE FUELS — 0.68%
Formosa Petrochemical Corp.^a		6,139,950		17,957,087

				17,957,087
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.45%
Highwealth Construction Corp.^a		4,385,790		6,814,246
Ruentex Development Co. Ltd.^a,b		4,393,773		5,144,220

				11,958,466
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 34.53%
Advanced Semiconductor Engineering Inc.^a		40,342,448		49,584,957
Hermes Microvision Inc.^a		208,000		8,915,082
Inotera Memories Inc.^b		17,540,000		14,869,794
MediaTek Inc.		8,754,175		68,834,927
Nanya Technology Corp.^a		5,246,000		6,199,871
Novatek Microelectronics Corp.^a		3,165,544		10,824,334
Phison Electronics Corp.^a		1,616,698		11,693,235


Security	Shares		Value
Powertech Technology Inc.		5,262,036	$	13,731,160
Realtek Semiconductor Corp.		3,508,063		14,040,876
Siliconware Precision Industries Co. Ltd.		14,032,834		20,940,568
Taiwan Semiconductor Manufacturing Co. Ltd.		117,518,882		651,843,596
United Microelectronics Corp.^a		94,716,501		34,327,847
Vanguard International Semiconductor Corp.		6,139,000		11,511,653

				917,317,900
SPECIALTY RETAIL — 0.56%
Hotai Motor Co. Ltd.		1,355,000		14,988,891

				14,988,891
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 8.75%
Acer Inc.^a		17,540,737		7,877,452
Advantech Co. Ltd.^a		1,754,444		14,348,284
Asustek Computer Inc.^a		3,868,857		32,737,842
Casetek Holdings Ltd.^a		726,000		2,551,142
Catcher Technology Co. Ltd.^a		3,508,743		25,212,127
Chicony Electronics Co. Ltd.		2,678,826		6,627,309
Compal Electronics Inc.		26,310,554		15,588,737
Foxconn Technology Co. Ltd.		5,262,871		14,761,681
HTC Corp.^a,b		3,508,884		9,399,636
Inventec Corp.		16,663,868		12,367,725
Lite-On Technology Corp.		13,208,071		19,980,379
Pegatron Corp.		11,401,037		27,558,959
Quanta Computer Inc.		15,786,240		29,203,835
Transcend Information Inc.		877,905		2,531,580
Wistron Corp.		15,786,308		11,592,032

				232,338,720
TEXTILES, APPAREL & LUXURY GOODS — 1.78%
Eclat Textile Co. Ltd.^a		972,080		12,315,474
Feng TAY Enterprise Co. Ltd.^a		1,864,476		8,872,721
Formosa Taffeta Co. Ltd.		4,385,515		4,236,178
Pou Chen Corp.		12,278,103		17,799,680
Ruentex Industries Ltd.		2,631,262		4,084,072

				47,308,125
WIRELESS TELECOMMUNICATION SERVICES — 2.12%
Far EasTone Telecommunications Co. Ltd.		9,647,259		22,468,365
Taiwan Mobile Co. Ltd.		9,631,609		33,845,177

				56,313,542

TOTAL COMMON STOCKS
(Cost: $1,382,410,355)				2,623,381,273


SCHEDULES OF INVESTMENTS			43

Schedule of Investments (Continued)

iSHARES^® MSCI TAIWAN ETF

August 31, 2016


Security	Shares		Value
SHORT-TERM INVESTMENTS — 5.09%

MONEY MARKET FUNDS — 5.09%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		116,215,500	$	116,215,500
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		19,070,044		19,070,044

				135,285,544

TOTAL SHORT-TERM INVESTMENTS
(Cost: $135,285,544)				135,285,544

TOTAL INVESTMENTS IN SECURITIES — 103.83%
(Cost: $1,517,695,899)^f				2,758,666,817
Other Assets, Less Liabilities — (3.83)%				(101,777,704	)

NET ASSETS — 100.00%			$	2,656,889,113

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

^b	Non-income earning security.

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $1,723,065,143. Net unrealized appreciation was $1,035,601,674, of which $1,273,469,765 represented gross unrealized appreciation on securities and $237,868,091 represented gross unrealized depreciation on securities.

Schedule 1 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2016 were as follows:


Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
MSCI Taiwan Index		956		Sep. 2016		Taiwanese Exchange	$	32,425,283	$	32,054,680	$	(370,603	)

Schedule 2 — Fair Value Measurements


	Level 1			Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	2,623,381,271		$	—	$	2	$	2,623,381,273
Money market funds		135,285,544			—		—		135,285,544

Total	$	2,758,666,815		$	—	$	2	$	2,758,666,817

Derivative financial instruments^a:
Liabilities:
Futures contracts	$	(370,603	)	$	—	$	—	$	(370,603	)

Total	$	(370,603	)	$	—	$	—	$	(370,603	)

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

See notes to financial statements.


44		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.44%

AIRLINES — 0.88%
Bangkok Airways Co. Ltd.^a		2,363,300	$	1,706,822
Thai Airways International PCL NVDR^a,b		2,456,666		2,235,559

				3,942,381
AUTO COMPONENTS — 0.18%
Sri Trang Agro-Industry PCL NVDR^a		2,352,671		822,387

				822,387
BANKS — 19.35%
Bangkok Bank PCL Foreign		932,100		4,564,168
Kasikornbank PCL Foreign		4,403,800		25,189,652
Kasikornbank PCL NVDR^a		2,157,100		12,307,413
Kiatnakin Bank PCL NVDR		1,397,173		2,088,767
Krung Thai Bank PCL NVDR^a		13,128,400		7,206,009
LH Financial Group PCL NVDR		12,793,419		661,560
Siam Commercial Bank PCL (The) NVDR		5,864,800		27,108,318
Thanachart Capital PCL NVDR		2,349,200		2,714,622
Tisco Financial Group PCL NVDR		1,051,310		1,640,038
TMB Bank PCL NVDR		49,396,400		3,225,025

				86,705,572
BEVERAGES — 0.43%
Carabao Group PCL		937,200		1,922,295

				1,922,295
BUILDING PRODUCTS — 0.39%
Dynasty Ceramic PCL NVDR		8,572,140		1,094,564
Vanachai Group PCL NVDR^a		1,468,900		645,008

				1,739,572
CAPITAL MARKETS — 0.15%
AIRA Capital Co. Ltd.^a		4,137,840		284,498
Asia Plus Group Holdings PCL NVDR^a		3,871,300		386,957

				671,455
CHEMICALS — 4.47%
Eastern Polymer Group PCL^a		3,151,700		1,265,579
Indorama Ventures PCL NVDR		5,429,610		5,019,356
PTT Global Chemical PCL NVDR		7,788,907		13,725,739

				20,010,674
CONSTRUCTION & ENGINEERING — 1.27%
CH Karnchang PCL NVDR^a		1,587,800		1,444,893
Italian-Thai Development PCL NVDR^a,b		6,339,148		1,162,878


Security	Shares		Value
Sino-Thai Engineering & Construction PCL NVDR^a		2,802,928	$	2,024,330
Unique Engineering & Construction PCL^a		1,986,800		1,079,050

				5,711,151
CONSTRUCTION MATERIALS — 5.24%
Siam Cement PCL (The) Foreign		1,126,600		17,249,440
Siam Cement PCL (The) NVDR		405,700		6,211,697

				23,461,137
CONSUMER FINANCE — 1.42%
Group Lease PCL^a		1,430,500		1,694,342
Krungthai Card PCL NVDR		388,100		1,558,432
Muangthai Leasing PCL^a		1,987,800		1,102,563
Srisawad Power 1979 PCL NVDR		1,764,283		2,013,236

				6,368,573
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.67%
Jasmine International PCL NVDR		13,114,668		2,121,655
Thaicom PCL NVDR^a		1,644,200		1,044,977
True Corp. PCL NVDR^a		37,603,218		8,799,123

				11,965,755
ELECTRICAL EQUIPMENT — 0.33%
Gunkul Engineering PCL NVDR^a		9,542,374		1,488,605

				1,488,605
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.46%
Cal-Comp Electronics Thailand PCL NVDR		7,685,512		617,230
Delta Electronics Thailand PCL NVDR^a		1,875,744		4,009,911
Hana Microelectronics PCL NVDR		2,113,800		1,862,486
KCE Electronics PCL NVDR^a		1,060,800		2,995,571
Samart Corp. PCL NVDR^a		1,849,137		817,316
SVI PCL NVDR^a		5,100,415		719,043

				11,021,557
FOOD & STAPLES RETAILING — 7.45%
CP ALL PCL NVDR		18,553,500		33,365,266

				33,365,266
FOOD PRODUCTS — 3.92%
Charoen Pokphand Foods PCL NVDR		10,178,000		9,555,979
GFPT PCL NVDR		1,881,000		858,569


SCHEDULES OF INVESTMENTS			45

Schedule of Investments (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2016


Security	Shares		Value
Ichitan Group PCL NVDR^a		1,706,100	$	596,375
Khon Kaen Sugar Industry PCL NVDR^a		5,790,378		642,344
Thai Union Group PCL NVDR		7,176,300		4,457,265
Thai Vegetable Oil PCL NVDR		1,484,953		1,437,100

				17,547,632
GAS UTILITIES — 0.07%
Scan Inter PCL^a		1,350,000		327,599

				327,599
HEALTH CARE PROVIDERS & SERVICES — 4.69%
Bangkok Chain Hospital PCL NVDR		4,584,025		1,562,638
Bangkok Dusit Medical Services PCL NVDR		14,545,200		9,874,542
Bumrungrad Hospital PCL NVDR		1,340,976		6,585,660
Chularat Hospital PCL NVDR^a		18,573,300		1,395,056
Vibhavadi Medical Center PCL NVDR		18,922,500		1,585,280

				21,003,176
HOTELS, RESTAURANTS & LEISURE — 2.30%
Erawan Group PCL (The) NVDR^a		4,592,700		670,021
Minor International PCL NVDR		8,101,210		9,653,910

				10,323,931
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 3.04%
CK Power PCL NVDR^a		6,911,860		630,974
Electricity Generating PCL NVDR		494,500		2,821,388
Glow Energy PCL NVDR		1,923,800		4,446,101
Inter Far East Energy Corp.		3,647,400		669,093
SPCG PCL NVDR		1,697,100		1,024,668
Superblock PCL^a,b		41,046,950		2,134,434
surGlobal Power Synergy Co. Ltd. NVDR^a		1,405,300		1,461,507
Thai Solar Energy PCL		2,722,600		412,926

				13,601,091
INSURANCE — 0.18%
Thai Reinsurance PCL NVDR^a,b		10,279,740		783,999

				783,999
INTERNET & DIRECT MARKETING RETAIL — 0.07%
OfficeMate PCL NVDR		299,400		304,888

				304,888


Security	Shares		Value
MACHINERY — 0.06%
BJC Heavy Industries PCL NVDR^a		1,500,550	$	270,932

				270,932
MARINE — 0.27%
Precious Shipping PCL NVDR^a,b		2,046,800		363,647
Thoresen Thai Agencies PCL NVDR^a		3,075,789		830,802

				1,194,449
MEDIA — 1.46%
BEC World PCL NVDR^a		3,676,100		2,378,837
Major Cineplex Group PCL NVDR		1,640,900		1,540,618
Plan B Media PCL^a		1,973,600		364,895
RS PCL NVDR^a		1,704,400		467,762
VGI Global Media PCL NVDR^a		6,437,840		1,190,281
Workpoint Entertainment PCL		468,300		618,934

				6,561,327
METALS & MINING — 0.11%
STP & I PCL NVDR^a		1,829,410		504,712

				504,712
MULTILINE RETAIL — 0.78%
Robinson Department Store PCL NVDR		1,879,000		3,474,051

				3,474,051
OIL, GAS & CONSUMABLE FUELS — 15.72%
Bangchak Petroleum PCL (The) NVDR		1,290,800		1,258,526
Banpu PCL NVDR^a		5,811,600		2,635,875
Energy Absolute PCL NVDR^a		4,197,300		3,061,687
Energy Earth PCL NVDR		4,600,000		621,918
Esso Thailand PCL NVDR^b		4,544,800		787,763
IRPC PCL NVDR		37,638,400		5,262,667
PTT Exploration & Production PCL NVDR		5,218,184		12,248,196
PTT PCL NVDR		3,754,100		37,849,544
Siamgas & Petrochemicals PCL NVDR^a		1,377,700		457,701
Thai Oil PCL NVDR		3,065,800		6,266,134

				70,450,011
PERSONAL PRODUCTS — 0.37%
Beauty Community PCL		6,189,900		1,663,014

				1,663,014
PHARMACEUTICALS — 0.14%
Mega Lifesciences PCL NVDR^a		1,135,800		646,394

				646,394


46		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2016


Security	Shares		Value
REAL ESTATE MANAGEMENT & DEVELOPMENT — 5.93%
Amata Corp. PCL NVDR		1,961,400	$	713,947
Ananda Development PCL NVDR		5,626,100		776,899
AP Thailand PCL NVDR^a		3,541,086		762,118
Bangkok Land PCL NVDR		37,988,700		1,997,355
Central Pattana PCL NVDR		5,057,600		8,803,004
Country Group Development PCL NVDR^b		13,488,200		409,141
Golden Land Property Development PCL NVDR		1,742,500		329,719
LPN Development PCL NVDR^a		2,159,547		779,834
Platinum Group PCL (The) NVDR		3,151,700		619,132
Quality Houses PCL NVDR^a		16,079,531		1,263,490
Rojana Industrial Park PCL NVDR		1,845,683		277,262
Sansiri PCL NVDR		20,903,737		1,117,185
SC Asset Corp. PCL NVDR		5,488,404		542,252
Siam Future Development PCL NVDR		3,265,028		580,085
Singha Estate PCL^a,b		6,508,900		1,005,983
Supalai PCL NVDR^a		2,254,300		1,569,488
TICON Industrial Connection PCL NVDR^a		1,855,391		841,520
U City PCL NVDR^b		1,032,103,600		1,192,649
Univentures PCL NVDR^a		2,509,500		467,602
WHA Corp. PCL NVDR^a,b		24,182,440		2,514,965

				26,563,630
ROAD & RAIL — 1.28%
BTS Group Holdings PCL NVDR		21,969,200		5,743,706

				5,743,706
SPECIALTY RETAIL — 1.89%
DNA 2002 PCL^a,b		5,955,200		406,011
Home Product Center PCL NVDR		14,802,771		4,661,213
PTG Energy PCL		1,879,300		1,642,294
Siam Global House PCL NVDR^a		4,118,284		1,748,892

				8,458,410
TEXTILES, APPAREL & LUXURY GOODS — 0.12%
MC Group PCL NVDR^a		1,350,000		530,398

				530,398
TRANSPORTATION INFRASTRUCTURE — 5.66%
Airports of Thailand PCL NVDR^a		1,609,500		18,691,598


Security	Shares		Value
Bangkok Aviation Fuel Services PCL NVDR		596,800	$	624,980
Bangkok Expressway & Metro PCL		25,853,453		5,750,938
Namyong Terminal PCL NVDR		814,300		312,871

				25,380,387
WATER UTILITIES — 0.52%
Eastern Water Resources Development and Management PCL NVDR^a		1,871,600		675,853
TTW PCL NVDR		5,239,866		1,665,108

				2,340,961
WIRELESS TELECOMMUNICATION SERVICES — 4.17%
Advanced Info Service PCL NVDR		3,907,719		18,683,176

				18,683,176

TOTAL COMMON STOCKS (Cost: $469,525,261)				445,554,254

RIGHTS — 0.00%

CONSTRUCTION MATERIALS — 0.00%
Jay Mart PCL^b		151,200		14,414

				14,414
OIL, GAS & CONSUMABLE FUELS — 0.00%
Bangchak Petroleum PCL (The)^b		64,540		—

				—

TOTAL RIGHTS (Cost: $0)				14,414

WARRANTS — 0.01%

CONSUMER FINANCE — 0.01%
Group Lease PCL (Expires 07/31/18)^a,b		134,743		59,167

				59,167

TOTAL WARRANTS (Cost: $0)				59,167

SHORT-TERM INVESTMENTS — 7.17%

MONEY MARKET FUNDS — 7.17%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		31,029,897		31,029,897


SCHEDULES OF INVESTMENTS			47

Schedule of Investments (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2016


Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		1,099,513	$	1,099,513

				32,129,410

TOTAL SHORT-TERM INVESTMENTS (Cost: $32,129,410)				32,129,410
TOTAL INVESTMENTS IN SECURITIES — 106.62% (Cost: $501,654,671)^f				477,757,245
Other Assets, Less Liabilities — (6.62)%				(29,682,157	)

NET ASSETS — 100.00%			$	448,075,088

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	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $514,462,844. Net unrealized depreciation was $36,705,599, of which $23,126,710 represented gross unrealized appreciation on securities and $59,832,309 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	445,554,254	$	—	$	—	$	445,554,254
Rights		—		14,414		—		14,414
Warrants		59,167		—		—		59,167
Money market funds		32,129,410		—		—		32,129,410

Total	$	477,742,831	$	14,414	$	—	$	477,757,245

See notes to financial statements.


48		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Hong Kong ETF			iShares MSCI Japan Small-Cap ETF			iShares MSCI Malaysia ETF

ASSETS
Investments, at cost:
Unaffiliated	$	1,720,289,579		$	169,476,980		$	200,411,890
Affiliated (Note 2)		34,520,707			6,948,720			26,101,778

Total cost of investments	$	1,754,810,286		$	176,425,700		$	226,513,668

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	1,587,795,142		$	164,149,878		$	334,356,790
Affiliated (Note 2)		34,520,707			6,948,720			26,101,778

Total fair value of investments		1,622,315,849			171,098,598			360,458,568
Foreign currency, at value^b		5,258,965			11,100			1,061,931
Foreign currency pledged to broker, at value^b		521,710			—			—
Receivables:
Investment securities sold		1,272,111			110,510			447,211
Dividends and interest		4,150,990			331,409			738,143
Capital shares sold		290,818			—			9,979,158
Futures variation margin		43,909			—			—
Tax reclaims		—			6,517			—

Total Assets		1,633,854,352			171,558,134			372,685,011


LIABILITIES
Payables:
Investment securities purchased		2,166,689			—			11,221,267
Collateral for securities on loan (Note 1)		34,450,945			6,934,592			25,872,953
Investment advisory fees (Note 2)		660,904			70,136			135,605

Total Liabilities		37,278,538			7,004,728			37,229,825


NET ASSETS	$	1,596,575,814		$	164,553,406		$	335,455,186


Net assets consist of:
Paid-in capital	$	2,223,921,811		$	174,843,616		$	226,945,180
Undistributed (distributions in excess of) net investment income		5,722,325			378,670			(1,310,602	)
Accumulated net realized loss		(500,616,484	)		(5,340,912	)		(24,109,001	)
Net unrealized appreciation (depreciation)		(132,451,838	)		(5,327,968	)		133,929,609

NET ASSETS	$	1,596,575,814		$	164,553,406		$	335,455,186


Shares outstanding^c		75,750,000			2,700,000			40,500,000


Net asset value per share	$	21.08		$	60.95		$	8.28

^a	Securities on loan with values of $32,552,929, $6,586,383 and $24,628,356, respectively. See Note 1.

^b	Cost of foreign currency including currency pledged to broker: $5,780,955, $11,100 and $1,072,559, respectively.

^c	$0.001 par value, number of shares authorized: 375 million, 500 million and 300 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			49

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Pacific ex Japan ETF			iShares MSCI Singapore ETF			iShares MSCI Taiwan ETF

ASSETS
Investments, at cost:
Unaffiliated	$	2,558,288,101		$	687,054,232		$	1,382,410,355
Affiliated (Note 2)		40,164,969			52,295,727			135,285,544

Total cost of investments	$	2,598,453,070		$	739,349,959		$	1,517,695,899

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	2,338,865,821		$	556,034,606		$	2,623,381,273
Affiliated (Note 2)		40,164,969			52,295,727			135,285,544

Total fair value of investments		2,379,030,790			608,330,333			2,758,666,817
Foreign currency, at value^b		4,997,287			3,870,779			2,225,023
Foreign currency pledged to broker, at value^b		—			448,163			1,262,000
Receivables:
Investment securities sold		2,725,398			5,039,447			—
Dividends and interest		13,635,217			3,452,839			13,590,584

Total Assets		2,400,388,692			621,141,561			2,775,744,424


LIABILITIES
Payables:
Investment securities purchased		2,768,711			6,805,472			—
Collateral for securities on loan (Note 1)		38,660,645			51,547,511			116,215,500
Futures variation margin		—			132,373			191,200
Foreign taxes (Note 1)		—			—			1,033,704
Investment advisory fees (Note 2)		997,251			237,767			1,414,907

Total Liabilities		42,426,607			58,723,123			118,855,311


NET ASSETS	$	2,357,962,085		$	562,418,438		$	2,656,889,113


Net assets consist of:
Paid-in capital	$	3,130,611,305		$	929,109,362		$	2,625,610,977
Undistributed net investment income		11,915,309			3,947,970			52,002,232
Accumulated net realized loss		(564,968,308	)		(239,396,448	)		(1,261,247,341	)
Net unrealized appreciation (depreciation)		(219,596,221	)		(131,242,446	)		1,240,523,245

NET ASSETS	$	2,357,962,085		$	562,418,438		$	2,656,889,113


Shares outstanding^c		57,600,000			53,000,000			175,400,000


Net asset value per share	$	40.94		$	10.61		$	15.15

^a	Securities on loan with values of $36,439,301, $47,238,763 and $108,323,692, respectively. See Note 1.

^b	Cost of foreign currency including currency pledged to broker: $5,022,491, $4,365,280 and $3,486,872, respectively.

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

See notes to financial statements.


50		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Thailand Capped ETF

ASSETS
Investments, at cost:
Unaffiliated	$	469,525,261
Affiliated (Note 2)		32,129,410

Total cost of investments	$	501,654,671

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	445,627,835
Affiliated (Note 2)		32,129,410

Total fair value of investments		477,757,245
Receivables:
Dividends and interest		2,012,763
Capital shares sold		83,381

Total Assets		479,853,389


LIABILITIES
Payables:
Investment securities purchased		488,588
Collateral for securities on loan (Note 1)		31,029,897
Capital shares redeemed		28,216
Investment advisory fees (Note 2)		231,600

Total Liabilities		31,778,301


NET ASSETS	$	448,075,088


Net assets consist of:
Paid-in capital	$	521,716,506
Undistributed net investment income		2,416,276
Accumulated net realized loss		(52,160,264	)
Net unrealized depreciation		(23,897,430	)

NET ASSETS	$	448,075,088


Shares outstanding^b		5,900,000


Net asset value per share	$	75.94

^a	Securities on loan with a value of $28,183,195. See Note 1.

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

See notes to financial statements.


FINANCIAL STATEMENTS			51

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Hong Kong ETF			iShares MSCI Japan Small-Cap ETF			iShares MSCI Malaysia ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	65,244,641		$	3,148,213		$	8,677,285
Dividends — affiliated (Note 2)		3,366			119			635
Securities lending income — affiliated — net (Note 2)		543,669			311,205			691,781

Total investment income		65,791,676			3,459,537			9,369,701


EXPENSES
Investment advisory fees (Note 2)		9,828,837			865,162			1,350,953

Total expenses		9,828,837			865,162			1,350,953

Net investment income		55,962,839			2,594,375			8,018,748


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(90,654,251	)		(479,746	)		3,674,658
In-kind redemptions — unaffiliated		(24,143,904	)		2,020,717			—
Futures contracts		2,176,995			—			—
Foreign currency transactions		2,324			219,687			(1,400,023	)

Net realized gain (loss)		(112,618,836	)		1,760,658			2,274,635

Net change in unrealized appreciation/depreciation on:
Investments		207,189,966			10,485,055			8,109,924
Futures contracts		(198,024	)		—			—
Translation of assets and liabilities in foreign currencies		(4,901	)		(18,465	)		9,212

Net change in unrealized appreciation/depreciation		206,987,041			10,466,590			8,119,136

Net realized and unrealized gain		94,368,205			12,227,248			10,393,771

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	150,331,044		$	14,821,623		$	18,412,519

^a	Net of foreign withholding tax of $ —, $346,165 and $ —, respectively.

See notes to financial statements.


52		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Pacific ex Japan ETF			iShares MSCI Singapore ETF			iShares MSCI Taiwan ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	88,811,359		$	23,817,955		$	81,172,401
Dividends — affiliated (Note 2)		3,749			860			12,528
Interest — unaffiliated		—			—			456
Securities lending income — affiliated — net (Note 2)^b		663,086			808,726			2,325,804

		89,478,194			24,627,541			83,511,189
Less: Other foreign taxes (Note 1)		—			—			(1,696,561	)

Total investment income		89,478,194			24,627,541			81,814,628


EXPENSES
Investment advisory fees (Note 2)		9,789,421			2,669,085			16,552,838

Total expenses		9,789,421			2,669,085			16,552,838

Net investment income		79,688,773			21,958,456			65,261,790


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(55,416,652	)		(18,194,693	)		(137,997,019	)
In-kind redemptions — unaffiliated		8,768,468			(11,602,834	)		—
Futures contracts		—			(12,392	)		6,183,260
Foreign currency transactions		887,534			(86,829	)		534,053
Payment from affiliate (Note 2)		—			—			69,864

Net realized loss		(45,760,650	)		(29,896,748	)		(131,209,842	)

Net change in unrealized appreciation/depreciation on:
Investments		190,149,741			14,349,937			329,229,811
Futures contracts		—			(292,072	)		(1,831,937	)
Translation of assets and liabilities in foreign currencies		122,832			(7,469	)		424,382

Net change in unrealized appreciation/depreciation		190,272,573			14,050,396			327,822,256

Net realized and unrealized gain (loss)		144,511,923			(15,846,352	)		196,612,414

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	224,200,696		$	6,112,104		$	261,874,204

^a	Net of foreign withholding tax of $1,618,242, $287,747 and $19,409,102, respectively.

^b	Net of securities lending income tax paid of $ —, $ — and $554,945, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			53

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Thailand Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	9,872,725
Dividends — affiliated (Note 2)		1,788
Securities lending income — affiliated — net (Note 2)		970,523

Total investment income		10,845,036


EXPENSES
Investment advisory fees (Note 2)		1,855,406

Total expenses		1,855,406

Net investment income		8,989,630


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(32,718,772	)
In-kind redemptions — unaffiliated		5,749,349
Foreign currency transactions		(46,989	)

Net realized loss		(27,016,412	)

Net change in unrealized appreciation/depreciation on:
Investments		81,703,210
Translation of assets and liabilities in foreign currencies		9,134

Net change in unrealized appreciation/depreciation		81,712,344

Net realized and unrealized gain		54,695,932

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	63,685,562

^a	Net of foreign withholding tax of $1,065,562.

See notes to financial statements.


54		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.



	iShares MSCI Hong Kong ETF						iShares MSCI Japan Small-Cap ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	55,962,839		$	76,462,467		$	2,594,375		$	1,851,342
Net realized gain (loss)		(112,618,836	)		94,497,147			1,760,658			18,722,198
Net change in unrealized appreciation/depreciation		206,987,041			(535,725,809	)		10,466,590			(31,986,475	)

Net increase (decrease) in net assets resulting from operations		150,331,044			(364,766,195	)		14,821,623			(11,412,935	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(57,946,909	)		(74,964,011	)		(3,054,464	)		(2,993,420	)

Total distributions to shareholders		(57,946,909	)		(74,964,011	)		(3,054,464	)		(2,993,420	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		22,375,546			1,076,021,470			45,471,321			249,704,421
Cost of shares redeemed		(1,240,407,729	)		(1,135,379,620	)		(51,689,221	)		(246,130,624	)

Net increase (decrease) in net assets from capital share transactions		(1,218,032,183	)		(59,358,150	)		(6,217,900	)		3,573,797

INCREASE (DECREASE) IN NET ASSETS		(1,125,648,048	)		(499,088,356	)		5,549,259			(10,832,558	)

NET ASSETS
Beginning of year		2,722,223,862			3,221,312,218			159,004,147			169,836,705

End of year	$	1,596,575,814		$	2,722,223,862		$	164,553,406		$	159,004,147

Undistributed net investment income included in net assets at end of year	$	5,722,325		$	7,704,071		$	378,670		$	217,281


SHARES ISSUED AND REDEEMED
Shares sold		1,125,000			47,625,000			800,000			4,300,000
Shares redeemed		(65,550,000	)		(54,600,000	)		(900,000	)		(4,500,000	)

Net decrease in shares outstanding		(64,425,000	)		(6,975,000	)		(100,000	)		(200,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			55

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.



	iShares MSCI Malaysia ETF						iShares MSCI Pacific ex Japan ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	8,018,748		$	13,468,130		$	79,688,773		$	118,017,798
Net realized gain (loss)		2,274,635			87,766,817			(45,760,650	)		67,853,487
Net change in unrealized appreciation/depreciation		8,119,136			(328,400,917	)		190,272,573			(853,844,715	)

Net increase (decrease) in net assets resulting from operations		18,412,519			(227,165,970	)		224,200,696			(667,973,430	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(12,913,175	)		(15,389,546	)		(80,779,861	)		(121,558,328	)
From net realized gain		(61,020,000	)		(1,987,267	)		—			—

Total distributions to shareholders		(73,933,175	)		(17,376,813	)		(80,779,861	)		(121,558,328	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		235,390,658			107,286,599			430,991,170			27,284,262
Cost of shares redeemed		(107,993,581	)		(385,625,950	)		(200,654,534	)		(725,596,210	)

Net increase (decrease) in net assets from capital share transactions		127,397,077			(278,339,351	)		230,336,636			(698,311,948	)

INCREASE (DECREASE) IN NET ASSETS		71,876,421			(522,882,134	)		373,757,471			(1,487,843,706	)

NET ASSETS
Beginning of year		263,578,765			786,460,899			1,984,204,614			3,472,048,320

End of year	$	335,455,186		$	263,578,765		$	2,357,962,085		$	1,984,204,614

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(1,310,602	)	$	3,673,177		$	11,915,309		$	11,524,396


SHARES ISSUED AND REDEEMED
Shares sold		26,025,000			8,250,000			10,800,000			600,000
Shares redeemed		(11,400,000	)		(31,125,000	)		(5,400,000	)		(16,200,000	)

Net increase (decrease) in shares outstanding		14,625,000			(22,875,000	)		5,400,000			(15,600,000	)

See notes to financial statements.


56		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.



	iShares MSCI Singapore ETF						iShares MSCI Taiwan ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	21,958,456		$	26,302,403		$	65,261,790		$	85,413,696
Net realized loss		(29,896,748	)		(5,218,751	)		(131,209,842	)		(120,497,220	)
Net change in unrealized appreciation/depreciation		14,050,396			(209,292,899	)		327,822,256			(617,626,511	)

Net increase (decrease) in net assets resulting from operations		6,112,104			(188,209,247	)		261,874,204			(652,710,035	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(16,842,459	)		(27,289,993	)		(85,498,003	)		(61,969,914	)

Total distributions to shareholders		(16,842,459	)		(27,289,993	)		(85,498,003	)		(61,969,914	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		117,265,015			32,838,329			512,970,562			1,059,504,564
Cost of shares redeemed		(154,043,146	)		(191,867,107	)		(1,308,867,457	)		(367,078,617	)

Net increase (decrease) in net assets from capital share transactions		(36,778,131	)		(159,028,778	)		(795,896,895	)		692,425,947

DECREASE IN NET ASSETS		(47,508,486	)		(374,528,018	)		(619,520,694	)		(22,254,002	)

NET ASSETS
Beginning of year		609,926,924			984,454,942			3,276,409,807			3,298,663,809

End of year	$	562,418,438		$	609,926,924		$	2,656,889,113		$	3,276,409,807

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	3,947,970		$	(1,115,300	)	$	52,002,232		$	71,038,580


SHARES ISSUED AND REDEEMED
Shares sold		10,700,000			2,500,000			35,800,000			66,600,000
Shares redeemed		(15,100,000	)		(15,600,000	)		(101,600,000	)		(26,000,000	)

Net increase (decrease) in shares outstanding		(4,400,000	)		(13,100,000	)		(65,800,000	)		40,600,000

See notes to financial statements.


FINANCIAL STATEMENTS			57

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.



	iShares MSCI Thailand Capped ETF
	Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	8,989,630		$	9,130,803
Net realized loss		(27,016,412	)		(15,288,875	)
Net change in unrealized appreciation/depreciation		81,712,344			(81,366,379	)

Net increase (decrease) in net assets resulting from operations		63,685,562			(87,524,451	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(7,604,719	)		(9,842,483	)

Total distributions to shareholders		(7,604,719	)		(9,842,483	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		240,640,360			232,829,500
Cost of shares redeemed		(85,949,624	)		(469,528,663	)

Net increase (decrease) in net assets from capital share transactions		154,690,736			(236,699,163	)

INCREASE (DECREASE) IN NET ASSETS		210,771,579			(334,066,097	)

NET ASSETS
Beginning of year		237,303,509			571,369,606

End of year	$	448,075,088		$	237,303,509

Undistributed net investment income included in net assets at end of year	$	2,416,276		$	1,078,328


SHARES ISSUED AND REDEEMED
Shares sold		3,550,000			2,900,000
Shares redeemed		(1,300,000	)		(6,100,000	)

Net increase (decrease) in shares outstanding		2,250,000			(3,200,000	)

See notes to financial statements.


58		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Hong Kong ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	19.42		$	21.89		$	18.91		$	16.94		$	17.59

Income from investment operations:
Net investment income^a		0.54			0.52			0.66			0.48			0.54
Net realized and unrealized gain (loss)^b		1.72			(2.50	)		3.04			2.05			(0.65	)

Total from investment operations		2.26			(1.98	)		3.70			2.53			(0.11	)

Less distributions from:
Net investment income		(0.60	)		(0.49	)		(0.72	)		(0.56	)		(0.54	)

Total distributions		(0.60	)		(0.49	)		(0.72	)		(0.56	)		(0.54	)

Net asset value, end of year	$	21.08		$	19.42		$	21.89		$	18.91		$	16.94


Total return		11.94	%		(9.29	)%		19.87	%		15.04	%		(0.33	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,596,576		$	2,722,224		$	3,221,312		$	2,124,856		$	1,865,974
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		2.73	%		2.36	%		3.24	%		2.47	%		3.26	%
Portfolio turnover rate^c		9	%		7	%		6	%		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			59

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Japan Small-Cap ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	56.79		$	56.61		$	49.44		$	42.82		$	46.49

Income from investment operations:
Net investment income^a		0.84			0.70			0.70			0.65			0.82
Net realized and unrealized gain (loss)^b		4.29			0.71			7.61			6.97			(3.25	)

Total from investment operations		5.13			1.41			8.31			7.62			(2.43	)

Less distributions from:
Net investment income		(0.97	)		(1.23	)		(1.14	)		(1.00	)		(1.24	)

Total distributions		(0.97	)		(1.23	)		(1.14	)		(1.00	)		(1.24	)

Net asset value, end of year	$	60.95		$	56.79		$	56.61		$	49.44		$	42.82


Total return		9.10	%		2.63	%		16.94	%		18.07	%		(5.18	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	164,553		$	159,004		$	169,837		$	88,988		$	42,817
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.53	%
Ratio of net investment income to average net assets		1.44	%		1.26	%		1.31	%		1.36	%		1.84	%
Portfolio turnover rate^c		12	%		10	%		14	%		17	%		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.


60		2016 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, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	10.19		$	16.13		$	14.60		$	14.52		$	13.92

Income from investment operations:
Net investment income^a		0.25			0.36			0.54			0.41			0.38
Net realized and unrealized gain (loss)^b		0.69			(5.86	)		1.51			0.04			0.76

Total from investment operations		0.94			(5.50	)		2.05			0.45			1.14

Less distributions from:
Net investment income		(0.45	)		(0.39	)		(0.52	)		(0.37	)		(0.52	)
Net realized gain		(2.40	)		(0.05	)		—			—			—
Return of capital		—			—			—			—			(0.02	)

Total distributions		(2.85	)		(0.44	)		(0.52	)		(0.37	)		(0.54	)

Net asset value, end of year	$	8.28		$	10.19		$	16.13		$	14.60		$	14.52


Total return		12.58	%		(34.62	)%		14.17	%		3.02	%		8.61	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	335,455		$	263,579		$	786,461		$	809,138		$	936,692
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		2.86	%		2.61	%		3.48	%		2.71	%		2.73	%
Portfolio turnover rate^c		72	%		24	%		16	%		17	%		24	%

^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 cash transactions, the portfolio turnover rates for the years ended August 31, 2016, August 31, 2015, August 31, 2014, August 31, 2013 and August 31, 2012 were 17%, 5%, 10%, 8% and 14%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			61

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Pacific ex Japan ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	38.01		$	51.21		$	44.56		$	43.21		$	44.47

Income from investment operations:
Net investment income^a		1.54			1.97			1.88			1.69			1.73
Net realized and unrealized gain (loss)^b		2.98			(13.09	)		6.51			1.71			(1.14	)

Total from investment operations		4.52			(11.12	)		8.39			3.40			0.59

Less distributions from:
Net investment income		(1.59	)		(2.08	)		(1.74	)		(2.05	)		(1.85	)

Total distributions		(1.59	)		(2.08	)		(1.74	)		(2.05	)		(1.85	)

Net asset value, end of year	$	40.94		$	38.01		$	51.21		$	44.56		$	43.21


Total return		12.20	%		(22.19	)%		19.25	%		7.87	%		1.82	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	2,357,962		$	1,984,205		$	3,472,048		$	3,008,067		$	3,188,582
Ratio of expenses to average net assets		0.49	%		0.49	%		0.49	%		0.50	%		0.50	%
Ratio of net investment income to average net assets		4.00	%		4.31	%		3.90	%		3.59	%		4.16	%
Portfolio turnover rate^c		6	%		7	%		8	%		8	%		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.


62		2016 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, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	10.63		$	13.96		$	12.49		$	13.10		$	13.05

Income from investment operations:
Net investment income^a		0.42			0.41			0.40			0.44			0.41
Net realized and unrealized gain (loss)^b		(0.12	)		(3.31	)		1.52			(0.47	)		0.11

Total from investment operations		0.30			(2.90	)		1.92			(0.03	)		0.52

Less distributions from:
Net investment income		(0.32	)		(0.43	)		(0.45	)		(0.58	)		(0.47	)

Total distributions		(0.32	)		(0.43	)		(0.45	)		(0.58	)		(0.47	)

Net asset value, end of year	$	10.61		$	10.63		$	13.96		$	12.49		$	13.10


Total return		2.87	%		(21.27	)%		15.65	%		(0.38	)%		4.67	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	562,418		$	609,927		$	984,455		$	1,135,477		$	1,512,687
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		3.96	%		3.15	%		2.99	%		3.23	%		3.32	%
Portfolio turnover rate^c		7	%		10	%		4	%		10	%		3	%

^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			63

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Taiwan ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	13.58		$	16.44		$	13.60		$	12.58		$	13.78

Income from investment operations:
Net investment income^a		0.34			0.37			0.29			0.24			0.28
Net realized and unrealized gain (loss)^b		1.63			(2.94	)		2.81			1.05			(1.01	)

Total from investment operations		1.97			(2.57	)		3.10			1.29			(0.73	)

Less distributions from:
Net investment income		(0.40	)		(0.29	)		(0.26	)		(0.27	)		(0.47	)

Total distributions		(0.40	)		(0.29	)		(0.26	)		(0.27	)		(0.47	)

Net asset value, end of year	$	15.15		$	13.58		$	16.44		$	13.60		$	12.58


Total return		15.02	%		(15.79	)%		23.24	%		10.30	%		(4.80	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	2,656,889		$	3,276,410		$	3,298,664		$	2,641,997		$	2,247,128
Ratio of expenses to average net assets		0.64	%		0.62	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		2.51	%		2.36	%		1.98	%		1.80	%		2.25	%
Portfolio turnover rate^c		27	%		14	%		11	%		21	%		22	%

^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.


64		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Thailand Capped ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	65.01		$	83.41		$	67.73		$	70.53		$	66.27

Income from investment operations:
Net investment income^a		2.05			1.66			1.67			1.84			1.76
Net realized and unrealized gain (loss)^b		10.54			(17.98	)		15.84			(2.75	)		4.37

Total from investment operations		12.59			(16.32	)		17.51			(0.91	)		6.13

Less distributions from:
Net investment income		(1.66	)		(2.08	)		(1.83	)		(1.89	)		(1.87	)

Total distributions		(1.66	)		(2.08	)		(1.83	)		(1.89	)		(1.87	)

Net asset value, end of year	$	75.94		$	65.01		$	83.41		$	67.73		$	70.53


Total return		19.87	%		(19.92	)%		26.18	%		(1.65	)%		9.57	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	448,075		$	237,304		$	571,370		$	541,873		$	595,968
Ratio of expenses to average net assets		0.63	%		0.62	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		3.08	%		2.09	%		2.24	%		2.22	%		2.66	%
Portfolio turnover rate^c		16	%		13	%		9	%		24	%		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	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

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 Hong Kong		Non-diversified
MSCI Japan Small-Cap		Diversified
MSCI Malaysia		Non-diversified
MSCI Pacific ex Japan		Diversified
MSCI Singapore		Non-diversified
MSCI Taiwan		Non-diversified
MSCI Thailand Capped		Non-diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•


66		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

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

•

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			67

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


68		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

not receive interest income on securities received as collateral. 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.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2016:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Hong Kong
Credit Suisse Securities (USA) LLC	$	1,273,435	$	1,273,435	$	—
Deutsche Bank Securities Inc.		3,517,921		3,517,921		—
Goldman Sachs & Co.		7,497,652		7,497,652		—
HSBC Bank PLC		1,385,769		1,385,769		—
JPMorgan Clearing Corp.		3,175		3,175		—
Morgan Stanley & Co. LLC		16,605,656		16,605,656		—
State Street Bank & Trust Company		2,269,321		2,269,321		—

	$	32,552,929	$	32,552,929	$	—


NOTES TO FINANCIAL STATEMENTS			69

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Japan Small-Cap
Barclays Capital Inc.	$	640,145	$	640,145	$	—
Citigroup Global Markets Inc.		436,669		436,669		—
Credit Suisse Securities (USA) LLC		534,474		534,474		—
Deutsche Bank Securities Inc.		166,268		166,268		—
Goldman Sachs & Co.		1,608,725		1,608,725		—
JPMorgan Clearing Corp.		816,089		816,089		—
Merrill Lynch, Pierce, Fenner & Smith		731,985		731,985		—
Mizuho Securities USA Inc.		5,793		5,793		—
Morgan Stanley & Co. LLC		806,155		806,155		—
Scotia Capital (USA) Inc.		32,130		32,130		—
State Street Bank & Trust Company		37,882		37,882		—
UBS Securities LLC		770,068		770,068		—

	$	6,586,383	$	6,586,383	$	—

MSCI Malaysia
Morgan Stanley & Co. International PLC	$	24,628,356	$	24,628,356	$	—

MSCI Pacific ex Japan
Citigroup Global Markets Inc.	$	1,075,070	$	1,075,070	$	—
Credit Suisse Securities (USA) LLC		2,524,834		2,524,834		—
Deutsche Bank Securities Inc.		3,379,709		3,379,709		—
Goldman Sachs & Co.		1,888,064		1,888,064		—
Jefferies LLC		563,800		563,800		—
JPMorgan Clearing Corp.		60,511		60,511		—
Morgan Stanley & Co. LLC		22,329,479		22,329,479		—
State Street Bank & Trust Company		2,780,351		2,780,351		—
UBS Securities LLC		1,837,483		1,837,483		—

	$	36,439,301	$	36,439,301	$	—

MSCI Singapore
Citigroup Global Markets Inc.	$	1,361,443	$	1,361,443	$	—
Credit Suisse Securities (USA) LLC		479,985		479,985		—
Goldman Sachs & Co.		6,447,664		6,447,664		—
JPMorgan Clearing Corp.		10,778		10,778		—
Merrill Lynch, Pierce, Fenner & Smith		3,174,084		3,174,084		—
Morgan Stanley & Co. LLC		29,932,712		29,932,712		—
State Street Bank & Trust Company		5,832,097		5,832,097		—

	$	47,238,763	$	47,238,763	$	—

MSCI Taiwan
Credit Suisse Securities (Europe) Ltd.	$	29,287,565	$	29,287,565	$	—
Deutsche Bank AG		2,836,502		2,836,502		—
JP Morgan Securities PLC		274,027		274,027		—
Morgan Stanley & Co. International PLC		66,626,529		66,626,529		—
UBS Ltd.		9,299,069		9,299,069		—

	$	108,323,692	$	108,323,692	$	—


70		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Thailand Capped
Citigroup Global Markets Inc.	$	369,776	$	369,776	$	—
Credit Suisse Securities (USA) LLC		4,802,648		4,802,648		—
Deutsche Bank Securities Inc.		415,709		415,709		—
Goldman Sachs & Co.		2,166,705		2,166,705		—
JPMorgan Clearing Corp.		2,295,654		2,295,654		—
Morgan Stanley & Co. LLC		10,012,031		10,012,031		—
UBS Securities LLC		8,120,672		8,120,672		—

	$	28,183,195	$	28,183,195	$	—

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

For its investment advisory services to each of the 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

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 $111 billion
	0.4287	^a	Over $111 billion, up to and including $141 billion
	0.4073	^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			71

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For its investment advisory services to each of the 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 $24 billion^a
	0.48		Over $24 billion, up to and including $32 billion^a
	0.45		Over $32 billion

Breakpoint level was added or amended effective July 1, 2016.

For the year ended August 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Hong Kong	$	148,282
MSCI Japan Small-Cap		76,901
MSCI Malaysia		171,876
MSCI Pacific ex Japan		172,753
MSCI Singapore		207,946
MSCI Taiwan		723,782
MSCI Thailand Capped		241,499


72		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2016, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares MSCI Taiwan ETF in the amount of $106,025, related to the foreign tax on the securities lending income. Such reimbursement is included in “Securities lending income – affiliated – net” in the Fund’s statement of operations.

The iShares MSCI Taiwan ETF received a payment from BFA to compensate the Fund for losses incurred on trades that were executed due to the incorrect processing of a corporate action. The payment covers the transaction costs (commissions and fees), as well as the change in market value on the security between the date the corporate action was incorrectly processed and the date of the subsequent sale of the security. The payment is reported in the Fund’s statement of operations under “Payment from affiliate”.

For the year ended August 31, 2016, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
MSCI Hong Kong	$	5,960,077	$	975,662
MSCI Japan Small-Cap		1,674,663		4,023,117
MSCI Pacific ex Japan		5,835,895		1,183,338
MSCI Singapore		3,593,197		5,169,128
MSCI Taiwan		1,585,105		1,018,675

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, 2016 were as follows:


iShares ETF	Purchases		Sales
MSCI Hong Kong	$	192,750,558	$	231,007,659
MSCI Japan Small-Cap		21,876,439		21,793,240
MSCI Malaysia		262,598,652		202,108,146
MSCI Pacific ex Japan		168,198,686		124,059,414
MSCI Singapore		37,278,509		37,687,486
MSCI Taiwan		704,275,832		1,539,383,677
MSCI Thailand Capped		47,268,637		47,325,404


NOTES TO FINANCIAL STATEMENTS			73

Notes to Financial Statements (Continued)

iSHARES^®, INC

In-kind transactions (see Note 4) for the year ended August 31, 2016 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Hong Kong	$	21,675,567	$	1,194,551,156
MSCI Japan Small-Cap		44,721,141		50,893,772
MSCI Pacific ex Japan		381,943,057		197,030,842
MSCI Singapore		113,250,303		148,258,081
MSCI Thailand Capped		238,879,766		85,096,870

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FUTURES CONTRACTS*

Each Fund may purchase or sell futures contracts, in an effort to help such Fund track its underlying index. A futures contract is a standardized, exchange-traded agreement to buy or 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.


74		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the value of futures contracts held as of August 31, 2016 and the related locations in the statements of assets and liabilities, presented by risk exposure category:


Assets
	iShares MSCI Hong Kong ETF
Equity contracts:
Variation margin/Net assets consist of – net unrealized appreciation (depreciation)^a	$	43,909

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


Liabilities
	iShares MSCI Singapore ETF		iShares MSCI Taiwan ETF
Equity contracts:
Variation margin /Net assets consist of – net unrealized appreciation (depreciation)^b	$	132,373	$	370,603

Represents cumulative depreciation 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 for the iShares MSCI Taiwan ETF.

The following table shows the realized and unrealized gains (losses) on futures contracts held during the year ended August 31, 2016 and the related locations in the statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)
	iShares MSCI Hong Kong ETF			iShares MSCI Singapore ETF			iShares MSCI Taiwan ETF
Equity contracts:
Futures contracts	$	2,176,995		$	(12,392	)	$	6,183,260


	Net Change in Unrealized Appreciation/Depreciation
	iShares MSCI Hong Kong ETF			iShares MSCI Singapore ETF			iShares MSCI Taiwan ETF
Equity contracts:
Futures contracts	$	(198,024	)	$	(292,072	)	$	(1,831,937	)


NOTES TO FINANCIAL STATEMENTS			75

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, 2016:


	iShares MSCI Hong Kong ETF		iShares MSCI Singapore ETF		iShares MSCI Taiwan ETF
Average value of contracts purchased	$	12,127,778	$	4,736,215	$	19,163,570

6.	*PRINCIPAL RISKS*

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 and/or indirect 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.

Each Fund, except for the iShares MSCI Pacific ex Japan ETF invests all or substantially all of its assets in issuers located in a single country. When a fund concentrates its investments in issuers located in a single country, whether directly or indirectly, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.


76		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 they believe 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.

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 NAV per share. The following permanent differences as of August 31, 2016, attributable to the use of equalization, 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 Hong Kong	$	(64,827,088	)	$	2,324		$	64,824,764
MSCI Japan Small-Cap		1,884,671			621,478			(2,506,149	)
MSCI Malaysia		189,140			(89,352	)		(99,788	)
MSCI Pacific ex Japan		(7,723,568	)		1,482,001			6,241,567
MSCI Singapore		(17,733,455	)		(52,727	)		17,786,182
MSCI Taiwan		(16,734,578	)		1,199,865			15,534,713
MSCI Thailand Capped		2,810,293			(46,963	)		(2,763,330	)


NOTES TO FINANCIAL STATEMENTS			77

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The tax character of distributions paid during the years ended August 31, 2016 and August 31, 2015 was as follows:


iShares ETF	2016		2015
MSCI Hong Kong
Ordinary income	$	57,946,909	$	74,964,011


MSCI Japan Small-Cap
Ordinary income	$	3,054,464	$	2,993,420


MSCI Malaysia
Ordinary income	$	12,913,175	$	15,389,546
Long-term capital gain		61,020,000		1,987,267

	$	73,933,175	$	17,376,813

MSCI Pacific ex Japan
Ordinary income	$	80,779,861	$	121,558,328


MSCI Singapore
Ordinary income	$	16,842,459	$	27,289,993


MSCI Taiwan
Ordinary income	$	85,498,003	$	61,969,914


MSCI Thailand Capped
Ordinary income	$	7,604,719	$	9,842,483

As of August 31, 2016, 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 Hong Kong	$	5,722,325	$	(400,842,062	)	$	(149,154,262	)	$	(83,071,998	)	$	(627,345,997	)
MSCI Japan Small-Cap		2,646,522		(4,017,554	)		(8,125,365	)		(793,813	)		(10,290,210	)
MSCI Malaysia		8,680,775		—			108,908,442			(9,079,211	)		108,510,006
MSCI Pacific ex Japan		28,210,824		(472,475,538	)		(303,131,808	)		(25,252,698	)		(772,649,220	)
MSCI Singapore		5,404,832		(213,537,624	)		(145,750,222	)		(12,807,910	)		(366,690,924	)
MSCI Taiwan		61,328,772		(937,888,078	)		1,035,154,001			(127,316,559	)		31,278,136
MSCI Thailand Capped		2,536,432		(16,877,534	)		(36,705,603	)		(22,594,713	)		(73,641,418	)

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.


78		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2016, the following 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 Hong Kong	$	222,203,643	$	29,235,556	$	114,836,904	$	34,565,959	$	400,842,062
MSCI Japan Small-Cap		3,140,817		131,718		541,322		203,697		4,017,554
MSCI Pacific ex Japan		264,867,220		66,207,828		104,799,503		36,600,987		472,475,538
MSCI Singapore		53,847,762		15,680,510		132,420,824		11,588,528		213,537,624
MSCI Taiwan		211,790,962		343,375,145		363,052,013		19,669,958		937,888,078
MSCI Thailand Capped		12,695,752		555,444		2,321,428		1,304,910		16,877,534

Must be utilized prior to losses subject to expiration.

8.	*SUBSEQUENT EVENTS*

At the meeting of the Board held on September 28-29, 2016, the Board approved a one-for-four reverse stock split for the iShares MSCI Malaysia ETF (“EWM”) and a one-for-two reverse stock split for each of the iShares MSCI Singapore ETF (“EWS”) and iShares MSCI Taiwan ETF (“EWT”), effective after the close of trading on November 4, 2016. The impact of the stock splits will be to decrease the number of shares outstanding by a factor of four for EWM and a factor of two for EWS and EWT, while increasing the NAV per share by factors of four, two and two, respectively, resulting in no effect on the net assets of the Funds.

On August 12, 2016, the Board approved several changes for EWS and EWT. Effective on or around November 30, 2016, EWS will track a new underlying index, the MSCI Singapore 25/50 Index, and cease to track the MSCI Singapore Index. EWT will track a new underlying index, the MSCI Taiwan 25/50 Index, and cease to track the MSCI Taiwan Index. Concurrently, EWS and EWT will change their names to the iShares MSCI Singapore Capped ETF and iShares MSCI Taiwan Capped ETF, respectively.


NOTES TO FINANCIAL STATEMENTS			79

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 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 Taiwan ETF and iShares MSCI Thailand Capped ETF (the “Funds”) at August 31, 2016, 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, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 21, 2016


80		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2016:


iShares ETF	Qualified Dividend Income
MSCI Japan Small-Cap	$	2,707,727
MSCI Pacific ex Japan		55,978,533
MSCI Thailand Capped		10,586,994

For the fiscal year ended August 31, 2016, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Hong Kong	$	65,244,814	$	—
MSCI Japan Small-Cap		3,494,378		346,165
MSCI Malaysia		8,677,285		—
MSCI Pacific ex Japan		90,429,601		1,618,242
MSCI Singapore		24,105,805		287,747
MSCI Taiwan		100,581,503		21,105,663
MSCI Thailand Capped		10,938,287		1,065,126

The iShares MSCI Malaysia ETF hereby designates $61,209,140 as 20% rate long-term capital gain dividends for the fiscal year ended August 31, 2016.


TAX INFORMATION			81

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI Hong Kong ETF, iShares MSCI Malaysia ETF, iShares MSCI Pacific ex Japan ETF and iShares MSCI Singapore ETF


82		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			83

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objectives and strategies as the Funds and that track the same respective indexes 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 and generally more extensive services provided to the Funds, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


84		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

II. iShares MSCI Japan Small-Cap 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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 (net of waivers and reimbursements) for the Fund were within range of the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			85

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


86		2016 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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			87

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 Taiwan 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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:


88		2016 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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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			89

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, among other things, 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, in a manner more favorable to the Fund, 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.

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


90		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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.

IV. iShares MSCI Thailand Capped 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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			91

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


92		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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, among other things, 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, in a manner more favorable to the Fund, 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.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			93

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 certain of the Other Accounts (particularly institutional clients) 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.


94		2016 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 Hong Kong	$	0.603635	$	—	$	—	$	0.603635		100	%		—	%		—	%		100	%
MSCI Japan Small-Cap		0.854023		—		0.114093		0.968116		88			—			12			100
MSCI Malaysia		0.451993		2.400000		—		2.851993		16			84			—			100
MSCI Pacific ex Japan		1.492272		—		0.096340		1.588612		94			—			6			100
MSCI Singapore		0.238213		—		0.077220		0.315433		76			—			24			100
MSCI Taiwan		0.398551		—		0.000227		0.398778		100			—			0	^a		100
MSCI Thailand Capped		1.662693		—		—		1.662693		100			—			—			100

^a	Rounds to less than 1%.

Premium/Discount Information


SUPPLEMENTAL INFORMATION			95

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Hong Kong ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		1		0.07
Greater than 3.0% and Less than 3.5%		3		0.22
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		13		0.94
Greater than 1.5% and Less than 2.0%		11		0.80
Greater than 1.0% and Less than 1.5%		57		4.12
Greater than 0.5% and Less than 1.0%		227		16.42
Between 0.5% and –0.5%		785		56.77
Less than –0.5% and Greater than –1.0%		170		12.29
Less than –1.0% and Greater than –1.5%		68		4.92
Less than –1.5% and Greater than –2.0%		23		1.66
Less than –2.0% and Greater than –2.5%		8		0.58
Less than –2.5% and Greater than –3.0%		4		0.29
Less than –3.0% and Greater than –3.5%		6		0.43
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

		1,383		100.00	%


96		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Japan Small-Cap ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0%		3		0.22	%
Greater than 4.5% and Less than 5.0%		1		0.07
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 3.5% and Less than 4.0%		4		0.29
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%		13		0.94
Greater than 1.5% and Less than 2.0%		40		2.89
Greater than 1.0% and Less than 1.5%		106		7.66
Greater than 0.5% and Less than 1.0%		232		16.78
Between 0.5% and –0.5%		635		45.92
Less than –0.5% and Greater than –1.0%		172		12.44
Less than –1.0% and Greater than –1.5%		88		6.36
Less than –1.5% and Greater than –2.0%		46		3.33
Less than –2.0% and Greater than –2.5%		21		1.52
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%		4		0.29
Less than –4.0% and Greater than –4.5%		2		0.14

		1,383		100.00	%

iShares MSCI Malaysia ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5% and Less than 5.0%		1		0.07	%
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 3.5% and Less than 4.0%		3		0.22
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%		13		0.94
Greater than 1.5% and Less than 2.0%		28		2.02
Greater than 1.0% and Less than 1.5%		87		6.29
Greater than 0.5% and Less than 1.0%		214		15.48
Between 0.5% and –0.5%		693		50.12
Less than –0.5% and Greater than –1.0%		200		14.47
Less than –1.0% and Greater than –1.5%		70		5.06
Less than –1.5% and Greater than –2.0%		44		3.18
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

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			97

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Pacific ex Japan ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		1		0.07
Greater than 2.5% and Less than 3.0%		4		0.29
Greater than 2.0% and Less than 2.5%		6		0.43
Greater than 1.5% and Less than 2.0%		19		1.37
Greater than 1.0% and Less than 1.5%		66		4.78
Greater than 0.5% and Less than 1.0%		197		14.25
Between 0.5% and –0.5%		811		58.65
Less than –0.5% and Greater than –1.0%		163		11.79
Less than –1.0% and Greater than –1.5%		64		4.63
Less than –1.5% and Greater than –2.0%		24		1.74
Less than –2.0% and Greater than –2.5%		13		0.94
Less than –2.5% and Greater than –3.0%		5		0.36
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%		1		0.07
Less than –4.5% and Greater than –5.0%		1		0.07

		1,383		100.00	%

iShares MSCI Singapore ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		3		0.22	%
Greater than 2.0% and Less than 2.5%		2		0.14
Greater than 1.5% and Less than 2.0%		12		0.87
Greater than 1.0% and Less than 1.5%		40		2.89
Greater than 0.5% and Less than 1.0%		182		13.16
Between 0.5% and –0.5%		925		66.88
Less than –0.5% and Greater than –1.0%		147		10.63
Less than –1.0% and Greater than –1.5%		40		2.89
Less than –1.5% and Greater than –2.0%		17		1.23
Less than –2.0% and Greater than –2.5%		8		0.58
Less than –2.5% and Greater than –3.0%		3		0.22
Less than –3.0%		4		0.29

		1,383		100.00	%


98		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Taiwan ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5% and Less than 4.0%		5		0.36	%
Greater than 3.0% and Less than 3.5%		3		0.22
Greater than 2.5% and Less than 3.0%		8		0.58
Greater than 2.0% and Less than 2.5%		12		0.87
Greater than 1.5% and Less than 2.0%		26		1.88
Greater than 1.0% and Less than 1.5%		81		5.86
Greater than 0.5% and Less than 1.0%		226		16.34
Between 0.5% and –0.5%		670		48.44
Less than –0.5% and Greater than –1.0%		190		13.74
Less than –1.0% and Greater than –1.5%		82		5.92
Less than –1.5% and Greater than –2.0%		38		2.75
Less than –2.0% and Greater than –2.5%		20		1.45
Less than –2.5% and Greater than –3.0%		11		0.80
Less than –3.0% and Greater than –3.5%		5		0.36
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% and Greater than –5.0%		1		0.07

		1,383		100.00	%

iShares MSCI Thailand Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		5		0.36	%
Greater than 2.5% and Less than 3.0%		7		0.51
Greater than 2.0% and Less than 2.5%		13		0.94
Greater than 1.5% and Less than 2.0%		34		2.46
Greater than 1.0% and Less than 1.5%		102		7.38
Greater than 0.5% and Less than 1.0%		236		17.06
Between 0.5% and –0.5%		613		44.32
Less than –0.5% and Greater than –1.0%		209		15.12
Less than –1.0% and Greater than –1.5%		96		6.94
Less than –1.5% and Greater than –2.0%		32		2.31
Less than –2.0% and Greater than –2.5%		24		1.74
Less than –2.5% and Greater than –3.0%		5		0.36
Less than –3.0% and Greater than –3.5%		5		0.36
Less than –3.5		2		0.14

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			99

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Regulation under the Alternative Investment Fund Managers Directive (“AIFMD” or the “Directive”)

BFA has registered the iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI Taiwan ETF and the iShares MSCI Thailand Capped ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden, and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to (a) the staff of BFA; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Funds.

Members of staff and senior management of BFA typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of BFA and across the broader BlackRock group. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Funds according to an objective apportionment methodology which acknowledges the multiple-service nature of BFA. Accordingly the figures are not representative of any individual’s actual remuneration or their remuneration structure.


100		2016 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 Hong Kong ETF in respect of BFA’s financial year ending December 31, 2015 is USD 402.36 thousand. This figure is comprised of fixed remuneration of USD 156.48 thousand and variable remuneration of USD 245.88 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Hong Kong ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 47.82 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 11.58 thousand.

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, 2015 is USD 34.1 thousand. This figure is comprised of fixed remuneration of USD 13.26 thousand and variable remuneration of USD 20.84 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Japan Small-Cap ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 4.05 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.98 thousand.

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, 2015 is USD 34.94 thousand. This figure is comprised of fixed remuneration of USD 13.59 thousand and variable remuneration of USD 21.35 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Malaysia ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 4.15 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 1.01 thousand.

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, 2015 is USD 457.15 thousand. This figure is comprised of fixed remuneration of USD 177.78 thousand and variable remuneration of USD 279.36 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Taiwan ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 54.33 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 13.16 thousand.

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, 2015 is USD 36.09 thousand. This figure is comprised of fixed remuneration of USD 14.04 thousand and variable remuneration of USD 22.05 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Thailand Capped ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 4.29 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 1.04 thousand.


SUPPLEMENTAL INFORMATION			101

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.}


102		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director During the Past 5 Years
Cecilia H. Herbert (67)	Director (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	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 media company (since 2011).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015).

Jane D. Carlin (60)	Director (since 2015); Risk Committee Chair (since 2016).	Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012).

Charles A. Hurty (72)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); 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 (61)	Director (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (55)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).


DIRECTOR AND OFFICER INFORMATION			103

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c (Continued)

^c	Robert H. Silver served as an Independent Director until March 31, 2016.


104		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^d



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since January 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).

Jack Gee (56)	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).

Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).

Scott Radell (47)	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 (53)	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).

^d	Manish Mehta served as President until October 15, 2016.


DIRECTOR AND OFFICER INFORMATION			105

Notes:


106		2016 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”).

Certain financial information required by regulations or listing exchange rules in jurisdictions outside the U.S. in which iShares Funds are cross-listed may be publicly filed in those jurisdictions. This information is available upon request by calling 1-800-474-2737.

iS-AR-803-0816

AUGUST 31, 2016


2016 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Brazil Capped ETF | EWZ | NYSE Arca

^Ø

iShares MSCI Chile Capped ETF | ECH | NYSE Arca

^Ø

iShares MSCI Colombia Capped ETF | ICOL | NYSE Arca

^Ø

iShares MSCI Israel Capped ETF | EIS | NYSE Arca

^Ø

iShares MSCI Russia Capped ETF | ERUS | NYSE Arca

^Ø

iShares MSCI South Africa ETF | EZA | NYSE Arca

^Ø

iShares MSCI Turkey ETF | TUR | NYSE Arca

^Ø

iShares MSCI USA Equal Weighted ETF | EUSA | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			22
Shareholder Expenses			22
Schedules of Investments			23
iShares MSCI Brazil Capped ETF			23
iShares MSCI Chile Capped ETF			26
iShares MSCI Colombia Capped ETF			28
iShares MSCI Israel Capped ETF			30
iShares MSCI Russia Capped ETF			33
iShares MSCI South Africa ETF			35
iShares MSCI Turkey ETF			37
iShares MSCI USA Equal Weighted ETF			40
Financial Statements			50
Financial Highlights			60
Notes to Financial Statements			68
Report of Independent Registered Public Accounting Firm			80
Tax Information			81
Board Review and Approval of Investment Advisory Contract			82
Supplemental Information			98
Director and Officer Information			105

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI BRAZIL CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		38.22%		37.27%		39.19%		38.22%		37.27%		39.19%
5 Years		(9.95)%		(10.10)%		(9.40)%		(40.78)%		(41.27)%		(38.97)%
10 Years		1.68%		1.58%		2.28%		18.17%		16.98%		25.27%

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.

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,636.20	$	4.17	$	1,000.00	$	1,022.00	$	3.20		0.63%


6		2016 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, 2016, the total return for the Fund was 38.22%, net of fees, while the total return for the Index was 39.19%.

Brazilian equities, as represented by the Index, advanced for the reporting period and outperformed broader global equity markets. The Brazilian real appreciated 10% relative to the U.S. dollar, making returns on Brazilian investments higher when translated back into U.S. dollars.

Brazilian stocks experienced volatile market conditions, declining for roughly the first half of the reporting period amid lower prices for oil and other commodities. Economic cooling in China, Brazil’s largest export partner, weighed on economic activity as Chinese demand for Brazil’s exports softened. A corruption scandal at a large Brazilian state-owned oil company and the impeachment of the Brazilian president also unsettled the economy and added to market volatility. Manufacturing production declined in July 2016, while unemployment climbed to 11.6%. Largely as a result of these weaknesses, Brazil’s economy contracted year over year through the second quarter of 2016, marking the ninth consecutive quarter of negative growth. Inflation, which ran at a 9% annual rate in August, limited the central bank’s ability to lower interest rates as a means to stimulate growth.

Despite these challenges, Brazilian equities produced gains, driven by a rebound in commodity prices late in the reporting period, signs of a stabilizing Chinese economy, and encouraging signals from the new government.

Within the Index, all sectors contributed positively to performance during the reporting period. The financials sector contributed significantly, supported by strength within the banking industry. Energy stocks benefited from the rebound in oil prices, and utilities were aided by a rebound in hydroelectric supply. The consumer discretionary, materials, and consumer staples sectors also made notable contributions to Index performance during the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	34.62	%
Consumer Staples	18.07
Energy	12.60
Materials	8.53
Utilities	6.90
Consumer Discretionary	5.55
Industrials	4.81
Information Technology	4.06
Telecommunication Services	2.66
Real Estate**	1.39
Health Care	0.81

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Itau Unibanco Holding SA (Preferred)	10.94	%
Ambev SA	9.05
Banco Bradesco SA (Preferred)	8.16
Petroleo Brasileiro SA (Preferred)	4.94
Petroleo Brasileiro SA	4.22
Cielo SA	3.60
BRF SA	3.41
BM&FBovespa SA-Bolsa de Valores Mercadorias e Futuros	3.39
Itausa-Investimentos Itau SA (Preferred)	3.19
Ultrapar Participacoes SA	2.84

TOTAL	53.74	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI CHILE CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		8.17%		6.76%		8.48%		8.17%		6.76%		8.48%
5 Years		(9.87)%		(10.10)%		(9.46)%		(40.52)%		(41.27)%		(39.16)%
Since Inception		(1.70)%		(1.78)%		(1.16)%		(14.03)%		(14.61)%		(9.76)%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,123.80	$	3.36	$	1,000.00	$	1,022.00	$	3.20		0.63%


8		2016 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, 2016, the total return for the Fund was 8.17%, net of fees, while the total return for the Index was 8.48%.

Chilean equities, as represented by the Index, advanced for the reporting period and performed in line with broader global equity markets. The Chilean peso appreciated 2% relative to the U.S. dollar during the reporting period, making returns on Chilean investments moderately higher when translated back into U.S. dollars.

As a major copper exporter, Chile’s economy continued to feel the brunt of lower copper prices during the reporting period. Industrial production and mining output declined year over year through July 2016, the latest period for which data was available. Similarly, manufacturing levels dropped considerably for the 12 months ended in July of 2016. Unemployment levels rose steadily in 2016, reaching the highest level in nearly five years at 7.1% in July 2016.

Against that backdrop, Chile’s economy grew at a 1.5% annual rate in the second quarter of 2016, its lowest rate since the third quarter of 2014. In response to the weak conditions, Chile’s government cut its estimates for 2016 growth and predicted the nation’s second largest fiscal deficit in 25 years. Despite the weak conditions, a rebound in commodity prices and growing copper demand from China late in the reporting period helped to support Chilean equities.

Within the Index, the financials sector contributed the most to returns during the reporting period. Within the sector, banks and real estate-related investments were sources of strength. Consumer staples, consumer discretionary, industrials, and materials stocks were all notable contributors to Index performance. Energy was the only sector to detract meaningfully from Index performance for the reporting period, reflecting a weakness in oil prices.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Utilities	28.30	%
Financials**	17.48
Consumer Staples	13.71
Materials	10.14
Consumer Discretionary	9.88
Energy	7.27
Industrials	5.51
Telecommunication Services	2.98
Real Estate**	2.90
Information Technology	1.83

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


SACI Falabella	7.86	%
Empresas COPEC SA	7.27
Cencosud SA	6.99
Banco Santander Chile	6.28
Enersis Americas SA	5.88
Sociedad Quimica y Minera de Chile SA Series B (Preferred)	4.54
Empresas CMPC SA	4.53
LATAM Airlines Group SA	4.49
Empresa Nacional de Electricidad SA/Chile	4.36
Banco de Chile	4.23

TOTAL	56.43	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI COLOMBIA CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		12.49%		11.38%		12.33%		12.49%		11.38%		12.33%
Since Inception		(16.66)%		(16.73)%		(16.34)%		(44.25)%		(44.39)%		(43.50)%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,207.40	$	3.38	$	1,000.00	$	1,022.10	$	3.10		0.61%


10		2016 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, 2016, the total return for the Fund was 12.49%, net of fees, while the total return for the Index was 12.33%.

Colombian equities, as represented by the Index, rose during the reporting period. In addition, the Colombian peso appreciated 4% relative to the U.S. dollar, making returns on Colombian investments higher when translated back into U.S. dollars.

During the reporting period, Colombia’s economy continued to be affected by the poor pricing environment for oil and coal, the country’s leading exports. Although oil and coal prices actually improved in the final months of the reporting period, the considerable weakness in these commodities in recent years resulted in a drop in both Colombian exports and investment, and led the government to curb spending in order to reach its fiscal targets. The drop in commodity-related revenues detracted from economic growth. Year over year through the second quarter of 2016, Colombian gross domestic product advanced 2%, marking the weakest growth rate since 2009.

Despite the challenging economic conditions, inflation rose at the fastest pace in more than 15 years during the reporting period, ultimately rising 8.1% year over year through August 2016. In an effort to slow inflation, the Colombian central bank raised its benchmark interest rate a total of 3.25% during the course of the reporting period, from 4.50% to 7.75%.

The weak economic conditions were not reflected in the local stock market, which advanced during the reporting period largely as a reflection of investors’ apparent willingness to return to the relative risk of developing markets. Signs of stability in oil prices, combined with comparatively weak growth and low interest rates in the U.S. and other global economies, led foreign investors to Colombian equities.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials	41.91	%
Materials	18.85
Utilities	10.05
Energy	9.98
Consumer Staples	9.84
Industrials	6.76
Telecommunication Services	2.61

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Bancolombia SA (Preferred)	12.61	%
Grupo de Inversiones Suramericana SA	8.57
Ecopetrol SA	5.47
Grupo Nutresa SA	4.95
Banco Davivienda SA (Preferred)	4.89
Almacenes Exito SA	4.88
Grupo Argos SA/Colombia	4.85
Bancolombia SA	4.77
Interconexion Electrica SA ESP	4.74
Cemex Latam Holdings SA	4.73

TOTAL	60.46	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI ISRAEL CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(0.23)%		0.01%		0.40%		(0.23)%		0.01%		0.40%
5 Years		3.81%		3.82%		4.06%		20.54%		20.64%		21.99%
Since Inception		2.21%		2.20%		2.70%		20.27%		20.19%		25.22%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,084.10	$	3.30	$	1,000.00	$	1,022.00	$	3.20		0.63%


12		2016 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, 2016, the total return for the Fund was -0.23%, net of fees, while the total return for the Index was 0.40%.

Israeli equities, as represented by the Index, achieved a slightly positive return for the reporting period and lagged most international equity indexes. The Israeli shekel appreciated 4% relative to the U.S. dollar, making returns on Israeli investments more valuable when translated back into U.S. dollars.

Israel’s economy experienced moderate growth during the reporting period, expanding 2.9% year over year through the second quarter of 2016. Unemployment levels fell throughout the reporting period, reaching a record low of 4.7% in June of 2016. As unemployment levels declined, consumer spending rose, reaching a record high in the second quarter of 2016. A real estate boom continued throughout the reporting period, supported by low construction volumes, expansionary monetary policy, and a dearth of investment alternatives. However, tourism, a major portion of the Israeli economy, continued to struggle in the aftermath of the 2014 Israel-Gaza conflict. For the first half of 2016, hotel occupancy rates represented a 9% decline compared to the first half of 2014, before the Gaza conflict.

Within the Index, the financials sector contributed the most to performance during the reporting period, reflecting strength within the banking and real estate industries. The information technology sector also contributed to Index performance, as financing deals among high-technology companies accelerated. Telecommunications, industrials, consumer staples, and energy stocks also contributed to returns during the reporting period. On the other side of the spectrum, the healthcare sector detracted the most from Index performance due to weakness among pharmaceuticals companies. The materials sector also detracted meaningfully during the reporting period, reflecting the price declines in oil and commodities.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Information Technology	26.08	%
Health Care	23.94
Financials**	17.12
Real Estate**	9.19
Telecommunication Services	5.62
Industrials	5.31
Materials	5.02
Energy	4.10
Consumer Staples	2.04
Consumer Discretionary	1.15
Utilities	0.43

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Teva Pharmaceutical Industries Ltd.	22.20	%
Check Point Software Technologies Ltd.	7.92
Mobileye NV	6.76
Bank Hapoalim BM	5.01
Bank Leumi le-Israel BM	4.51
Bezeq The Israeli Telecommunication Corp. Ltd.	3.73
Nice Ltd.	3.73
Elbit Systems Ltd.	2.21
Israel Chemicals Ltd.	2.12
Frutarom Industries Ltd.	2.02

TOTAL	60.21	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI RUSSIA CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.62%		10.92%		17.01%		15.62%		10.92%		17.01%
5 Years		(8.29)%		(8.27)%		(7.63)%		(35.12)%		(35.05)%		(32.75)%
Since Inception		(6.90)%		(6.97)%		(6.30)%		(33.98)%		(34.30)%		(31.46)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 11/9/10. The first day of secondary market trading was 11/10/10.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,244.10	$	3.55	$	1,000.00	$	1,022.00	$	3.20		0.63%


14		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI RUSSIA CAPPED ETF

The iShares MSCI Russia Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Russian equities, as represented by the MSCI Russia 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, 2016, the total return for the Fund was 15.62%, net of fees, while the total return for the Index was 17.01%.

Russian equities, as represented by the Index, advanced for the reporting period and outperformed broader global equity markets.

Russia’s economy remained in recession during the reporting period. Ongoing sanctions placed on Russia after its 2014 conflict in Ukraine limited investment into Russia and cut Russian companies off from access to finance from Europe and the U.S. Because Russia relies on oil and energy products for more than 60% of its exports, its economy is disproportionately affected by oil and commodities prices. The energy price decline in the first half of the reporting period drove many economic indicators lower, and a subsequent rebound in oil prices led to more positive economic activity late in the reporting period. In January of 2016, industrial production contracted for its twelfth consecutive month and export levels declined to a multi-year low before both improved for much of the remainder of the reporting period. Annual gross domestic product contracted for its sixth consecutive quarter in the second quarter of 2016, but the decline was less than in previous quarters. Despite weak economic conditions, Russia’s stock market gained, largely due to the climb in oil prices late in the reporting period.

Within the Index, the financials sector contributed significantly to returns during the reporting period, reflecting strength within the banking industry. The energy sector, which represented 48% of the Index on average during the reporting period, contributed as oil prices recovered. The telecommunications, utilities, and materials sectors were other sources of strength. On the other side of the spectrum, the consumer staples sector detracted from Index performance.

Special Notes: At the meeting of the Board of Directors held on September 28-29, 2016, the Board approved a one-for-two reverse stock split for the Fund, effective after the close of trading on November 4, 2016. The impact of the stock split will be to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Fund.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Energy	47.78	%
Financials	21.79
Materials	13.75
Telecommunication Services	8.63
Consumer Staples	5.20
Utilities	2.85

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Gazprom PJSC	9.06	%
Lukoil PJSC	8.14
Sberbank of Russia PJSC	7.99
Gazprom PJSC ADR	5.71
Sberbank of Russia PJSC ADR	5.62
Magnit PJSC GDR	5.20
Novatek OJSC GDR	4.49
Tatneft PJSC Class S	4.48
MMC Norilsk Nickel PJSC	4.47
Alrosa PJSC	3.86

TOTAL	59.02	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

Management’s Discussion of Fund Performance

iSHARES^® MSCI SOUTH AFRICA ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(3.64)%		(4.17)%		(3.03)%		(3.64)%		(4.17)%		(3.03)%
5 Years		(2.25)%		(2.29)%		(1.62)%		(10.78)%		(10.94)%		(7.85)%
10 Years		4.15%		3.99%		4.97%		50.15%		47.88%		62.38%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,199.20	$	3.48	$	1,000.00	$	1,022.00	$	3.20		0.63%


16		2016 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, 2016, the total return for the Fund was -3.64%, net of fees, while the total return for the Index was -3.03%.

South African equities, as represented by the Index, declined for the reporting period and lagged broader global equity markets. The South African rand depreciated 11% relative to the U.S. dollar, making returns on South African investments lower when translated back into U.S. dollars.

South Africa struggled with poor growth for much of the reporting period before the economy rebounded to expand at a 3.3% annual rate in the second quarter of 2016. High energy costs and labor strikes weighed on growth, while low commodity prices continued to impact the country’s mining industry. Unemployment remained high, reaching 26.6% in the second quarter of 2016. As credit rating agencies threatened to downgrade South Africa debt to junk status, South Africa’s finance minister announced measures to address the problems, including government spending cuts, a freeze on civil service jobs, and tax increases, largely on tobacco, alcohol, fuel, and property sales. In the final months of the reporting period, rising commodity prices contributed to improved mining activity, rising export levels, and higher gross domestic product growth.

Sector performance was mixed for the reporting period. Reflecting the challenges the country’s banks faced, the financials sector detracted meaningfully from Index performance for the reporting period. The telecommunications and energy sectors were other notable detractors from Index performance. On the other side of the spectrum, consumer discretionary, the largest sector in the Index at 34% of assets on average during the reporting period, contributed meaningfully to returns. Materials companies also made a notable contribution, benefiting from the increased mining activity late in the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Consumer Discretionary	36.85	%
Financials**	22.37
Materials	8.37
Consumer Staples	8.30
Telecommunication Services	6.69
Real Estate**	6.16
Energy	5.37
Health Care	4.70
Industrials	1.19

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Naspers Ltd. Class N	24.95	%
Steinhoff International Holdings NV Class H	6.39
Sasol Ltd.	5.07
MTN Group Ltd.	4.90
Standard Bank Group Ltd.	4.23
FirstRand Ltd.	3.64
Aspen Pharmacare Holdings Ltd.	2.99
Remgro Ltd.	2.98
AngloGold Ashanti Ltd.	2.44
Bid Corp. Ltd.	2.26

TOTAL	59.85	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			17

Management’s Discussion of Fund Performance

iSHARES^® MSCI TURKEY ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		1.98%		1.47%		2.08%		1.98%		1.47%		2.08%
5 Years		(2.37)%		(3.15)%		(2.01)%		(11.32)%		(14.77)%		(9.64)%
Since Inception		(1.14)%		(1.21)%		(0.78)%		(9.25)%		(9.73)%		(6.41)%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,025.90	$	3.21	$	1,000.00	$	1,022.00	$	3.20		0.63%


18		2016 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, 2016, the total return for the Fund was 1.98%, net of fees, while the total return for the Index was 2.08%.

Turkish equities, as represented by the Index, advanced for the reporting period but underperformed broader equity markets. The Turkish lira depreciated 2% relative to the U.S. dollar. As a result, returns on Turkish investments were modestly lower when translated back into U.S. dollars.

The Turkish economy grew moderately during the reporting period. While growth domestic product growth was positive, it was supported largely by household spending and public expenditure, while contributions from export demand and fixed investment were low. Business confidence levels remained weak.

In July 2016, military officers attempted a coup against the Turkish government. Although the government prevailed, the lira and stock market both immediately sank as investors sold off Turkish equities on the largest scale since 2008. Markets recovered as Turkey’s central bank took steps to restore investor confidence by maintaining efficient functioning in financial markets. In response to the coup attempt, the government suspended or detained 50,000 government workers and closed dozens of media outlets.

Within the Index, sector performance was mixed. The financials sector advanced modestly during the reporting period. Because the sector was the largest weighting, representing 43% of the Index on average during the reporting period, it was the most significant contributor to Index performance. The consumer discretionary and materials sectors also contributed to Index performance. On the other side of the spectrum, the energy sector detracted the most from Index performance, reflecting generally poor oil prices during the reporting period. The telecommunications and industrials sectors were other notable detractors.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	39.90	%
Consumer Staples	13.44
Industrials	12.34
Materials	9.03
Consumer Discretionary	8.44
Telecommunication Services	6.92
Energy	4.38
Real Estate**	4.24
Utilities	1.11
Health Care	0.20

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Turkiye Garanti Bankasi AS	10.65	%
Akbank TAS	10.40
BIM Birlesik Magazalar AS	6.51
Turkcell Iletisim Hizmetleri AS	5.28
Haci Omer Sabanci Holding AS	5.07
KOC Holding AS	4.92
Turkiye Is Bankasi Class C	4.58
Tupras Turkiye Petrol Rafinerileri AS	4.38
Eregli Demir ve Celik Fabrikalari TAS	3.76
Turkiye Halk Bankasi AS	3.35

TOTAL	58.90	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			19

Management’s Discussion of Fund Performance

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		10.54%		10.57%		10.69%		10.54%		10.57%		10.69%
5 Years		14.15%		14.15%		14.32%		93.78%		93.85%		95.27%
Since Inception		12.34%		12.34%		12.53%		108.81%		108.81%		110.82%

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.

Index performance through August 31, 2015 reflects the performance of the MSCI USA Index. Index performance beginning on September 1, 2015 reflects the performance of the MSCI USA Equal Weighted Index.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,166.40	$	0.82	$	1,000.00	$	1,024.40	$	0.76		0.15%


20		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

The iShares MSCI USA Equal Weighted ETF (the “Fund”) seeks to track the investment results of an index composed of equal weighted U.S. equities, as represented by the MSCI USA Equal Weighted 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, 2016, the total return for the Fund was 10.54%, net of fees, while the total return for the Index was 10.69%.

Equal-weighted U.S. large- and mid-capitalization stocks, as represented by the Index, delivered positive results for the reporting period, outperforming the capitalization-weighted MSCI USA Index.

The pace of U.S. economic growth slowed during the reporting period, with the U.S. economy expanding at just a 1.2% annual rate in the second quarter of 2016. Although the unemployment rate declined and consumer spending rose during the reporting period, other areas of the economy weakened: industrial production contracted for the 12 months ended in July 2016; and the services sector, as measured by the ISM Non-Manufacturing PMI index, fell in August 2016 to its lowest level since February 2010. In response to these mixed conditions, the Fed, which had been expected to enact a series of interest rate increases, raised its benchmark rate only once, in December 2015. The 0.25% increase was the first in more than nine years.

Nevertheless, the U.S. economy’s modest growth compared favorably to that of many other countries around the globe. That relative economic strength, combined with the Fed’s decision to maintain accommodative monetary policy, drove equity market gains during the reporting period.

Within the Index, the information technology sector was the largest contributor to performance during the reporting period, led by the semiconductor and software industries. Financials stocks contributed meaningfully to returns, reflecting strength in real estate investment trusts and insurance companies. Other notable contributions to Index performance came from the industrials, consumer staples, utilities, and materials sectors. No single sector detracted from Index performance during the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Consumer Discretionary	16.65	%
Information Technology	14.89
Financials**	13.68
Industrials	11.90
Health Care	11.62
Consumer Staples	6.68
Energy	6.56
Real Estate**	6.05
Materials	5.37
Utilities	5.30
Telecommunication Services	1.30

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


CF Industries Holdings Inc.	0.18	%
United Continental Holdings Inc.	0.18
Autodesk Inc.	0.17
Mosaic Co. (The)	0.17
Seagate Technology PLC	0.17
MetLife Inc.	0.17
Wells Fargo & Co.	0.17
Capital One Financial Corp.	0.17
PNC Financial Services Group Inc. (The)	0.17
Twitter Inc.	0.17

TOTAL	1.72	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			21

About Fund Performance

Shareholder Expenses


22		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI BRAZIL CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 62.00%

AEROSPACE & DEFENSE — 1.02%
Embraer SA		9,006,732	$	39,911,704

				39,911,704
BANKS — 5.13%
Banco Bradesco SA		9,775,470		87,966,534
Banco do Brasil SA		10,091,197		72,427,696
Banco Santander Brasil SA Units		5,658,200		39,683,337

				200,077,567
BEVERAGES — 9.03%
Ambev SA		59,312,360		351,971,114

				351,971,114
CAPITAL MARKETS — 4.45%
BM&FBovespa SA-Bolsa de Valores Mercadorias e Futuros		23,807,100		131,852,669
CETIP SA – Mercados Organizados		3,080,403		41,627,067

				173,479,736
CONTAINERS & PACKAGING — 0.91%
Klabin SA Units		6,775,020		35,616,099

				35,616,099
DIVERSIFIED CONSUMER SERVICES — 1.99%
Kroton Educacional SA		18,166,764		77,525,309

				77,525,309
ELECTRIC UTILITIES — 2.34%
CPFL Energia SA		3,781,253		27,186,014
EDP – Energias do Brasil SA		5,676,000		25,099,511
Equatorial Energia SA		1,663,500		26,013,729
Transmissora Alianca de Energia Eletrica SA Units		1,783,600		12,795,943

				91,095,197
FOOD & STAPLES RETAILING — 1.53%
Raia Drogasil SA		3,235,500		59,711,374

				59,711,374
FOOD PRODUCTS — 4.99%
BRF SA		7,965,050		132,635,891
JBS SA		10,513,422		40,638,807
M. Dias Branco SA		570,800		21,357,783

				194,632,481
HEALTH CARE PROVIDERS & SERVICES — 0.81%
Odontoprev SA		2,631,300		10,374,505
Qualicorp SA		3,027,800		21,235,235

				31,609,740


Security	Shares		Value
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.98%
AES Tiete Energia SA		1,622,900	$	8,380,985
Engie Brasil Energia SA		2,479,000		29,897,025

				38,278,010
INSURANCE — 2.71%
BB Seguridade Participacoes SA		8,205,800		73,968,418
Porto Seguro SA		1,887,400		16,079,495
Sul America SA		3,121,750		15,764,171

				105,812,084
IT SERVICES — 3.59%
Cielo SA		13,462,355		139,835,644

				139,835,644
MACHINERY — 1.06%
WEG SA		8,048,460		41,140,777

				41,140,777
METALS & MINING — 2.53%
Cia. Siderurgica Nacional SA^a		10,964,154		29,158,181
Vale SA		13,255,300		69,436,818

				98,594,999
MULTILINE RETAIL — 2.23%
Lojas Americanas SA		3,670,260		15,855,505
Lojas Renner SA		8,977,700		71,154,200

				87,009,705
OIL, GAS & CONSUMABLE FUELS — 7.63%
Cosan SA Industria e Comercio		1,995,790		23,217,768
Petroleo Brasileiro SA^a		35,996,144		164,074,204
Ultrapar Participacoes SA		4,797,800		110,427,440

				297,719,412
PAPER & FOREST PRODUCTS — 0.84%
Duratex SA		3,189,011		8,569,641
Fibria Celulose SA		3,546,226		24,136,445

				32,706,086
PERSONAL PRODUCTS — 1.71%
Hypermarcas SA		5,178,300		41,794,060
Natura Cosmeticos SA		2,590,500		24,961,339

				66,755,399
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.39%
BR Malls Participacoes SA^a		8,123,920		31,000,425
Multiplan Empreendimentos Imobiliarios SA		1,280,100		23,082,018

				54,082,443


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI BRAZIL CAPPED ETF

August 31, 2016


Security	Shares		Value
ROAD & RAIL — 1.09%
Localiza Rent A Car SA		2,287,240	$	28,510,930
Rumo Logistica Operadora Multimodal SA^a		6,209,700		13,825,790

				42,336,720
SOFTWARE — 0.46%
TOTVS SA		1,944,000		18,034,510

				18,034,510
TRANSPORTATION INFRASTRUCTURE — 1.63%
CCR SA		12,057,300		63,608,615

				63,608,615
WATER UTILITIES — 1.17%
Cia. de Saneamento Basico do Estado de Sao Paulo		5,033,000		45,741,811

				45,741,811
WIRELESS TELECOMMUNICATION SERVICES — 0.78%
TIM Participacoes SA		11,845,990		30,441,022

				30,441,022

TOTAL COMMON STOCKS
(Cost: $1,642,761,641)				2,417,727,558

PREFERRED STOCKS — 37.68%

BANKS — 22.22%
Banco Bradesco SA		35,302,635		317,241,194
Itau Unibanco Holding SA		38,354,862		425,203,106
Itausa-Investimentos Itau SA		46,598,197		123,923,710

				866,368,010
CHEMICALS — 0.51%
Braskem SA Class A		2,676,536		19,955,249

				19,955,249
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.87%
Telefonica Brasil SA		4,840,974		72,888,559

				72,888,559
ELECTRIC UTILITIES — 2.08%
Centrais Eletricas Brasileiras SA Class B		4,014,451		35,380,003
Cia. Energetica de Minas Gerais		10,456,290		28,292,577
Cia. Paranaense de Energia Class B		1,712,000		17,449,292

				81,121,872
FOOD & STAPLES RETAILING — 0.76%
Cia. Brasileira de Distribuicao		1,893,364		29,485,377

				29,485,377


Security	Shares		Value
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.30%
Cia. Energetica de Sao Paulo Class B		2,839,470	$	11,845,028

				11,845,028
METALS & MINING — 3.28%
Gerdau SA		12,250,646		34,397,880
Vale SA		20,917,900		93,599,485

				127,997,365
MULTILINE RETAIL — 1.31%
Lojas Americanas SA		8,573,427		50,982,437

				50,982,437
OIL, GAS & CONSUMABLE FUELS — 4.92%
Petroleo Brasileiro SA		48,336,078		192,070,815

				192,070,815
PAPER & FOREST PRODUCTS — 0.43%
Suzano Papel e Celulose SA Class A		5,343,100		16,853,120

				16,853,120

TOTAL PREFERRED STOCKS
(Cost: $1,006,921,235)				1,469,567,832

RIGHTS — 0.00%

ELECTRIC UTILITIES — 0.00%
AES Tiete Energia SA^a		51,384		65,624

				65,624

TOTAL RIGHTS
(Cost: $0)				65,624

SHORT-TERM INVESTMENTS — 0.05%

MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^b,c		1,839,027		1,839,027

				1,839,027

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,839,027)				1,839,027


24		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI BRAZIL CAPPED ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.73%
(Cost: $2,651,521,903)^d	$	3,889,200,041
Other Assets, Less Liabilities — 0.27%		10,429,508

NET ASSETS — 100.00%	$	3,899,629,549

^a	Non-income earning security.

^b	Affiliated money market fund.

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

^d	The cost of investments for federal income tax purposes was $3,228,788,109. Net unrealized appreciation was $660,411,932, of which $1,269,057,573 represented gross unrealized appreciation on securities and $608,645,641 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	2,417,727,558	$	—	$	—	$	2,417,727,558
Preferred stocks		1,469,567,832		—		—		1,469,567,832
Rights		65,624		—		—		65,624
Money market funds		1,839,027		—		—		1,839,027

Total	$	3,889,200,041	$	—	$	—	$	3,889,200,041

See notes to financial statements.


SCHEDULES OF INVESTMENTS			25

Schedule of Investments

iSHARES^® MSCI CHILE CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 93.36%

AIRLINES — 4.49%
LATAM Airlines Group SA^a		1,842,308	$	14,690,865

				14,690,865
BANKS — 16.55%
Banco de Chile		124,696,666		13,842,123
Banco de Credito e Inversiones		245,762		10,886,032
Banco Santander Chile		389,262,103		20,521,581
Itau CorpBanca		1,032,047,010		8,905,449

				54,155,185
BEVERAGES — 4.74%
Cia. Cervecerias Unidas SA		974,644		10,330,899
Vina Concha y Toro SA		3,108,427		5,173,996

				15,504,895
CONSTRUCTION & ENGINEERING — 0.70%
SalfaCorp SA		3,058,817		2,297,898

				2,297,898
DIVERSIFIED FINANCIAL SERVICES — 0.91%
Inversiones La Construccion SA		280,766		2,969,450

				2,969,450
ELECTRIC UTILITIES — 11.47%
Enersis Americas SA		115,633,372		19,213,181
Enersis Chile SA		112,774,899		12,100,111
Engie Energia Chile SA		3,651,663		6,207,311

				37,520,603
FOOD & STAPLES RETAILING — 6.98%
Cencosud SA		7,759,499		22,833,419

				22,833,419
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 12.29%
AES Gener SA		17,218,322		6,908,837
Colbun SA		51,742,099		10,887,578
Empresa Nacional de Electricidad SA/Chile		19,059,717		14,266,432
Endesa Americas SA		18,211,643		8,156,985

				40,219,832
IT SERVICES — 1.82%
SONDA SA		3,332,230		5,970,605

				5,970,605
MARINE — 0.31%
Cia. Sud Americana de Vapores SA^a		66,319,834		1,031,607

				1,031,607


Security	Shares		Value
METALS & MINING — 1.07%
CAP SA		699,725	$	3,507,901

				3,507,901
MULTILINE RETAIL — 8.99%
Ripley Corp. SA		6,185,635		3,746,752
SACI Falabella		3,595,108		25,687,059

				29,433,811
OIL, GAS & CONSUMABLE FUELS — 7.26%
Empresas COPEC SA		2,704,032		23,752,687

				23,752,687
PAPER & FOREST PRODUCTS — 4.53%
Empresas CMPC SA		7,429,900		14,814,272

				14,814,272
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.90%
Parque Arauco SA		4,208,247		9,486,656

				9,486,656
TEXTILES, APPAREL & LUXURY GOODS — 0.87%
Forus SA		793,802		2,852,697

				2,852,697
WATER UTILITIES — 4.50%
Aguas Andinas SA Series A		16,771,099		10,077,531
Inversiones Aguas Metropolitanas SA		2,689,174		4,661,531

				14,739,062
WIRELESS TELECOMMUNICATION SERVICES — 2.98%
Empresa Nacional de Telecomunicaciones SA^a		1,028,543		9,748,796

				9,748,796

TOTAL COMMON STOCKS
(Cost: $262,854,178)				305,530,241

PREFERRED STOCKS — 6.51%

BEVERAGES — 1.98%
Embotelladora Andina SA Class B		1,805,761		6,484,067

				6,484,067
CHEMICALS — 4.53%
Sociedad Quimica y Minera de Chile SA Series B		578,910		14,827,491

				14,827,491

TOTAL PREFERRED STOCKS
(Cost: $15,474,850)				21,311,558


26		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CHILE CAPPED ETF

August 31, 2016


Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.11%

MONEY MARKET FUNDS — 0.11%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^b,c		345,371	$	345,371

				345,371

TOTAL SHORT-TERM INVESTMENTS
(Cost: $345,371)				345,371

TOTAL INVESTMENTS IN SECURITIES — 99.98%
(Cost: $278,674,399)^d				327,187,170
Other Assets, Less Liabilities — 0.02%				57,062

NET ASSETS — 100.00%			$	327,244,232

^a	Non-income earning security.

^b	Affiliated money market fund.

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

^d	The cost of investments for federal income tax purposes was $322,883,753. Net unrealized appreciation was $4,303,417, of which $53,729,430 represented gross unrealized appreciation on securities and $49,426,013 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	305,530,241	$	—	$	—	$	305,530,241
Preferred stocks		21,311,558		—		—		21,311,558
Money market funds		345,371		—		—		345,371

Total	$	327,187,170	$	—	$	—	$	327,187,170

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Schedule of Investments

iSHARES^® MSCI COLOMBIA CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 69.50%

BANKS — 6.19%
Banco de Bogota SA		6,422	$	131,579
Bancolombia SA		89,976		816,358
Grupo Aval Acciones y Valores SA		265,684		112,433

				1,060,370
CAPITAL MARKETS — 1.96%
Bolsa de Valores de Colombia		51,918,750		335,720

				335,720
CONSTRUCTION & ENGINEERING — 2.40%
Construcciones El Condor SA		447,772		183,426
Constructora Conconcreto SA		600,000		228,519

				411,945
CONSTRUCTION MATERIALS — 14.04%
Cementos Argos SA		191,698		765,806
Cemex Latam Holdings SA^a		179,608		809,932
Grupo Argos SA/Colombia		124,332		830,059

				2,405,797
DIVERSIFIED FINANCIAL SERVICES — 10.55%
Corp. Financiera Colombiana SA		25,766		339,848
Grupo de Inversiones Suramericana SA		112,164		1,467,268

				1,807,116
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.62%
Empresa de Telecomunicaciones de Bogota		2,205,372		447,973

				447,973
ELECTRIC UTILITIES — 5.64%
Celsia SA ESP		114,218		155,059
Interconexion Electrica SA ESP		242,268		811,989

				967,048
FOOD & STAPLES RETAILING — 4.88%
Almacenes Exito SA		169,208		836,359

				836,359
FOOD PRODUCTS — 4.95%
Grupo Nutresa SA		95,966		848,613

				848,613
GAS UTILITIES — 4.40%
Empresa de Energia de Bogota SA ESP		1,203,228		753,596

				753,596


Security	Shares		Value
METALS & MINING — 1.90%
Mineros SA		409,786	$	326,020

				326,020
OIL, GAS & CONSUMABLE FUELS — 9.97%
Canacol Energy Ltd.^a		243,360		771,600
Ecopetrol SA^a		2,097,602		937,380

				1,708,980

TOTAL COMMON STOCKS
(Cost: $10,937,843)				11,909,537

PREFERRED STOCKS — 30.45%

AIRLINES — 4.35%
Avianca Holdings SA		868,114		746,499

				746,499
BANKS — 20.64%
Banco Davivienda SA		84,786		837,584
Bancolombia SA		219,206		2,159,555
Grupo Aval Acciones y Valores SA		1,275,300		539,686

				3,536,825
CONSTRUCTION MATERIALS — 2.90%
Cementos Argos SA		49,114		186,560
Grupo Argos SA/Colombia		48,438		309,932

				496,492
DIVERSIFIED FINANCIAL SERVICES — 2.56%
Grupo de Inversiones Suramericana SA		33,956		439,136

				439,136

TOTAL PREFERRED STOCKS
(Cost: $4,694,649)				5,218,952

SHORT-TERM INVESTMENTS — 0.06%

MONEY MARKET FUNDS — 0.06%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^b,c		10,146		10,146

				10,146

TOTAL SHORT-TERM INVESTMENTS
(Cost: $10,146)				10,146


28		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI COLOMBIA CAPPED ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 100.01%
(Cost: $15,642,638)^d	$	17,138,635
Other Assets, Less Liabilities — (0.01)%		(2,421	)

NET ASSETS — 100.00%	$	17,136,214

^a	Non-income earning security.

^b	Affiliated money market fund.

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

^d	The cost of investments for federal income tax purposes was $20,972,127. Net unrealized depreciation was $3,833,492, of which $1,642,862 represented gross unrealized appreciation on securities and $5,476,354 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	11,909,537	$	—	$	—	$	11,909,537
Preferred stocks		5,218,952		—		—		5,218,952
Money market funds		10,146		—		—		10,146

Total	$	17,138,635	$	—	$	—	$	17,138,635

See notes to financial statements.


SCHEDULES OF INVESTMENTS			29

Schedule of Investments

iSHARES^® MSCI ISRAEL CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.72%

AEROSPACE & DEFENSE — 2.20%
Elbit Systems Ltd.		21,305	$	2,068,069

				2,068,069
AIRLINES — 0.10%
El Al Israel Airlines		111,422		93,076

				93,076
BANKS — 13.82%
Bank Hapoalim BM		874,191		4,681,949
Bank Leumi le-Israel BM^a		1,128,130		4,216,862
First International Bank of Israel Ltd.^b		52,555		658,526
Israel Discount Bank Ltd. Class A^a		994,255		1,792,516
Mizrahi Tefahot Bank Ltd.		134,089		1,614,591

				12,964,444
BUILDING PRODUCTS — 0.88%
Caesarstone Ltd.^a		20,897		821,670

				821,670
CHEMICALS — 5.00%
Frutarom Industries Ltd.		35,796		1,886,864
Israel Chemicals Ltd.		468,236		1,980,458
Israel Corp. Ltd. (The)^b		4,493		825,471

				4,692,793
COMMUNICATIONS EQUIPMENT — 1.47%
Ituran Location and Control Ltd.^b		27,696		686,861
Radware Ltd.^a		51,309		695,237

				1,382,098
CONSTRUCTION & ENGINEERING — 1.67%
Electra Ltd./Israel		3,647		519,836
Shapir Engineering and Industry Ltd.		237,916		464,216
Shikun & Binui Ltd.^b		337,745		584,180

				1,568,232
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.23%
B Communications Ltd.		19,254		470,757
Bezeq The Israeli Telecommunication Corp. Ltd.		1,743,302		3,493,655

				3,964,412
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.26%
Orbotech Ltd.^a		41,296		1,180,240

				1,180,240


Security	Shares		Value
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.78%
REIT 1 Ltd.		227,206	$	732,758

				732,758
FOOD & STAPLES RETAILING — 1.13%
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.		12,824		508,505
Shufersal Ltd.		143,059		550,249

				1,058,754
FOOD PRODUCTS — 0.91%
Strauss Group Ltd.^b		53,504		848,913

				848,913
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.43%
Kenon Holdings Ltd./Singapore^a,b		38,077		402,628

				402,628
INSURANCE — 3.25%
Clal Insurance Enterprises Holdings Ltd.^a		45,196		481,489
Harel Insurance Investments & Financial Services Ltd.		169,017		610,326
IDI Insurance Co. Ltd.		11,278		540,519
Menora Mivtachim Holdings Ltd.^a		60,946		481,562
Migdal Insurance & Financial Holding Ltd.^a,b		795,422		487,617
Phoenix Holdings Ltd. (The)^a		175,035		447,390

				3,048,903
INTERNET SOFTWARE & SERVICES — 1.27%
Wix.com Ltd.^a,b		28,501		1,191,912

				1,191,912
IT SERVICES — 0.65%
Formula Systems 1985 Ltd.		2,387		97,112
Matrix IT Ltd.^b		70,135		510,784

				607,896
MACHINERY — 0.45%
Kornit Digital Ltd.^a		37,052		417,946

				417,946
OIL, GAS & CONSUMABLE FUELS — 4.08%
Delek Group Ltd.		4,749		1,008,465
Jerusalem Oil Exploration^a		13,448		604,367
Naphtha Israel Petroleum Corp. Ltd.^a		78,331		469,422
Oil Refineries Ltd.^a,b		1,743,949		645,420


30		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ISRAEL CAPPED ETF

August 31, 2016


Security	Shares		Value
Paz Oil Co. Ltd.		6,788	$	1,103,565

				3,831,239
PHARMACEUTICALS — 23.87%
Neuroderm Ltd.^a		26,669		435,772
Taro Pharmaceutical Industries Ltd.^a,b		9,414		1,191,812
Teva Pharmaceutical Industries Ltd.		409,755		20,764,776

				22,392,360
REAL ESTATE MANAGEMENT & DEVELOPMENT — 8.38%
Africa Israel Properties Ltd.		27,693		497,798
Airport City Ltd.^a		74,057		806,569
Alony Hetz Properties & Investments Ltd.		109,926		1,000,793
Amot Investments Ltd.		160,143		716,290
Azrieli Group Ltd.		39,926		1,741,489
Bayside Land Corp.		1,340		533,471
Blue Square Real Estate Ltd.		2,227		93,605
Gazit-Globe Ltd.^b		106,248		1,101,001
Melisron Ltd.		21,170		897,633
Norstar Holdings Inc.^b		25,298		468,129

				7,856,778
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.36%
Tower Semiconductor Ltd.^a		81,626		1,275,249

				1,275,249
SOFTWARE — 20.00%
Check Point Software Technologies Ltd.^a,b		96,493		7,404,873
CyberArk Software Ltd.^a		17,730		936,144
Mobileye NV^a,b		129,391		6,325,926
Nice Ltd.		51,169		3,488,503
Sapiens International Corp. NV		44,319		601,722

				18,757,168
SPECIALTY RETAIL — 0.59%
Delek Automotive Systems Ltd.		63,987		557,350

				557,350
TEXTILES, APPAREL & LUXURY GOODS — 0.56%
Delta-Galil Industries Ltd.^b		18,584		520,746

				520,746


Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 1.38%
Cellcom Israel Ltd.^a		81,822	$	613,635
Partner Communications Co. Ltd.^a		142,595		677,382

				1,291,017

TOTAL COMMON STOCKS
(Cost: $103,956,381)				93,526,651

SHORT-TERM INVESTMENTS — 14.36%

MONEY MARKET FUNDS — 14.36%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		13,438,272		13,438,272
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		31,046		31,046

				13,469,318

TOTAL SHORT-TERM INVESTMENTS
(Cost: $13,469,318)				13,469,318

TOTAL INVESTMENTS IN SECURITIES — 114.08%
(Cost: $117,425,699)^f				106,995,969
Other Assets, Less Liabilities — (14.08)%				(13,203,406	)

NET ASSETS — 100.00%			$	93,792,563

^a	Non-income earning security.

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

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $119,264,484. Net unrealized depreciation was $12,268,515, of which $4,627,464 represented gross unrealized appreciation on securities and $16,895,979 represented gross unrealized depreciation on securities.


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI ISRAEL CAPPED ETF

August 31, 2016

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	93,526,651	$	—	$	—	$	93,526,651
Money market funds		13,469,318		—		—		13,469,318

Total	$	106,995,969	$	—	$	—	$	106,995,969

See notes to financial statements.


32		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI RUSSIA CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 93.63%

BANKS — 18.11%
Sberbank of Russia PJSC		11,591,520	$	25,433,312
Sberbank of Russia PJSC ADR		1,951,264		17,893,091
VTB Bank PJSC		7,767,195,000		8,094,976
VTB Bank PJSC GDR^a		3,160,706		6,463,644

				57,885,023
CAPITAL MARKETS — 3.61%
Moscow Exchange MICEX-RTS PJSC		5,936,170		11,534,843

				11,534,843
CHEMICALS — 2.01%
PhosAgro PJSC GDR^a		480,682		6,441,139

				6,441,139
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.19%
Rostelecom PJSC		5,581,400		7,006,806

				7,006,806
ELECTRIC UTILITIES — 2.84%
RusHydro PJSC		746,060,000		9,074,775

				9,074,775
FOOD & STAPLES RETAILING — 5.18%
Magnit PJSC GDR^a		419,836		16,558,332

				16,558,332
METALS & MINING — 11.69%
Alrosa PJSC		10,639,800		12,308,413
MMC Norilsk Nickel PJSC		96,807		14,252,337
Severstal PJSC		926,295		10,792,186

				37,352,936
OIL, GAS & CONSUMABLE FUELS — 41.59%
Gazprom PJSC		13,975,517		28,852,542
Gazprom PJSC ADR		4,496,667		18,189,018
Lukoil PJSC		578,302		25,931,436
Lukoil PJSC ADR		216,573		9,713,299
Novatek OJSC GDR^a		132,736		14,308,941
Rosneft PJSC		1,363,360		7,194,193
Rosneft PJSC GDR^a		1,328,983		6,943,936
Surgutneftegas OJSC		8,108,600		3,880,414
Surgutneftegas OJSC ADR		777,377		3,664,555
Tatneft PJSC Class S		2,911,585		14,256,596

				132,934,930
WIRELESS TELECOMMUNICATION SERVICES — 6.41%
MegaFon PJSC GDR^a		604,440		6,135,066
Mobile TeleSystems PJSC ADR		1,259,816		10,242,304


Security	Shares		Value
Sistema PJSC FC GDR^a		484,705	$	4,115,146

				20,492,516

TOTAL COMMON STOCKS
(Cost: $365,779,042)				299,281,300

PREFERRED STOCKS — 6.02%

OIL, GAS & CONSUMABLE FUELS — 6.02%
Surgutneftegas OJSC		15,332,200		7,719,774
Transneft PJSC		4,863		11,528,159

				19,247,933

TOTAL PREFERRED STOCKS
(Cost: $21,508,011)				19,247,933

SHORT-TERM INVESTMENTS — 0.24%

MONEY MARKET FUNDS — 0.24%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^b,c		749,898		749,898

				749,898

TOTAL SHORT-TERM INVESTMENTS
(Cost: $749,898)				749,898

TOTAL INVESTMENTS IN SECURITIES — 99.89%
(Cost: $388,036,951)^d				319,279,131
Other Assets, Less Liabilities — 0.11%				349,421

NET ASSETS — 100.00%			$	319,628,552

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

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

^b	Affiliated money market fund.

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

^d	The cost of investments for federal income tax purposes was $415,025,767. Net unrealized depreciation was $95,746,636, of which $9,572,843 represented gross unrealized appreciation on securities and $105,319,479 represented gross unrealized depreciation on securities.


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (Continued)

iSHARES^® MSCI RUSSIA CAPPED ETF

August 31, 2016

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	299,281,300	$	—	$	—	$	299,281,300
Preferred stocks		19,247,933		—		—		19,247,933
Money market funds		749,898		—		—		749,898

Total	$	319,279,131	$	—	$	—	$	319,279,131

See notes to financial statements.


34		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SOUTH AFRICA ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.82%

BANKS — 7.39%
African Bank Investments Ltd.^a,b		2,626,522	$	1,785
Barclays Africa Group Ltd.		621,535		6,289,630
Capitec Bank Holdings Ltd.^b		59,384		2,351,201
Nedbank Group Ltd.		300,472		4,217,266
Standard Bank Group Ltd.		1,897,816		17,172,261

				30,032,143
CAPITAL MARKETS — 1.99%
Brait SE^a		518,413		4,104,560
Coronation Fund Managers Ltd.		362,901		1,720,026
Investec Ltd.		387,413		2,260,105

				8,084,691
DISTRIBUTORS — 0.63%
Imperial Holdings Ltd.		240,743		2,580,508

				2,580,508
DIVERSIFIED FINANCIAL SERVICES — 8.08%
FirstRand Ltd.		4,935,168		14,781,204
PSG Group Ltd.		135,754		1,733,950
Remgro Ltd.		705,454		12,067,964
RMB Holdings Ltd.		1,069,766		4,267,679

				32,850,797
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.39%
Telkom SA SOC Ltd.		386,577		1,597,366

				1,597,366
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 5.19%
Fortress Income Fund Ltd.		1,117,692		2,587,209
Fortress Income Fund Ltd. Class A		1,403,906		1,567,619
Growthpoint Properties Ltd.		3,063,969		5,295,361
Hyprop Investments Ltd.		372,468		3,254,315
Redefine Properties Ltd.		6,586,694		4,933,032
Resilient REIT Ltd.		433,264		3,474,557

				21,112,093
FOOD & STAPLES RETAILING — 6.22%
Bid Corp. Ltd.^a		499,458		9,164,896
Massmart Holdings Ltd.		175,112		1,540,099
Pick n Pay Stores Ltd.^b		538,846		2,698,597
Shoprite Holdings Ltd.		640,620		8,206,853
SPAR Group Ltd. (The)		282,016		3,679,932

				25,290,377


Security	Shares		Value
FOOD PRODUCTS — 2.06%
Pioneer Foods Group Ltd.		187,581	$	2,167,218
Tiger Brands Ltd.		239,390		6,207,091

				8,374,309
HEALTH CARE PROVIDERS & SERVICES — 1.71%
Life Healthcare Group Holdings Ltd.		1,410,962		3,691,823
Netcare Ltd.		1,455,657		3,249,820

				6,941,643
HOTELS, RESTAURANTS & LEISURE — 0.28%
Tsogo Sun Holdings Ltd.		541,695		1,119,899

				1,119,899
HOUSEHOLD DURABLES — 6.38%
Steinhoff International Holdings NV Class H		4,326,512		25,939,989

				25,939,989
INDUSTRIAL CONGLOMERATES — 1.19%
Bidvest Group Ltd. (The)		467,218		4,826,452

				4,826,452
INSURANCE — 4.87%
Discovery Ltd.		522,134		4,252,542
Liberty Holdings Ltd.		185,918		1,424,885
MMI Holdings Ltd./South Africa		1,587,895		2,434,589
Rand Merchant Investment Holdings Ltd.		982,756		2,791,816
Sanlam Ltd.		2,097,011		8,904,439

				19,808,271
MEDIA — 24.91%
Naspers Ltd. Class N		619,142		101,239,667

				101,239,667
METALS & MINING — 6.46%
Anglo American Platinum Ltd.^a		79,172		2,127,033
AngloGold Ashanti Ltd.^a		606,043		9,876,003
Gold Fields Ltd.		1,230,031		6,278,829
Impala Platinum Holdings Ltd.^a		949,271		3,642,469
Sibanye Gold Ltd.		1,117,988		4,333,166

				26,257,500
MULTILINE RETAIL — 1.96%
Woolworths Holdings Ltd./South Africa		1,456,938		7,984,660

				7,984,660


SCHEDULES OF INVESTMENTS			35

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH AFRICA ETF

August 31, 2016


Security	Shares		Value
OIL, GAS & CONSUMABLE FUELS — 5.36%
Exxaro Resources Ltd.^b		236,397	$	1,208,642
Sasol Ltd.		817,323		20,561,180

				21,769,822
PAPER & FOREST PRODUCTS — 1.89%
Mondi Ltd.		180,481		3,642,946
Sappi Ltd.^a		822,670		4,048,453

				7,691,399
PHARMACEUTICALS — 2.99%
Aspen Pharmacare Holdings Ltd.		507,677		12,144,929

				12,144,929
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.96%
New Europe Property Investments PLC		350,644		3,895,316

				3,895,316
SPECIALTY RETAIL — 2.62%
Foschini Group Ltd. (The)		308,804		2,743,194
Mr. Price Group Ltd.		366,051		4,589,149
Truworths International Ltd.		636,838		3,295,822

				10,628,165
WIRELESS TELECOMMUNICATION SERVICES — 6.29%
MTN Group Ltd.		2,435,468		19,895,356
Vodacom Group Ltd.		545,453		5,669,110

				25,564,466

TOTAL COMMON STOCKS
(Cost: $532,271,180)				405,734,462


Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.94%

MONEY MARKET FUNDS — 0.94%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		3,684,420	$	3,684,420
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		122,367		122,367

				3,806,787

TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,806,787)				3,806,787

TOTAL INVESTMENTS IN SECURITIES — 100.76%
(Cost: $536,077,967)^f				409,541,249
Other Assets, Less Liabilities — (0.76)%				(3,098,238	)

NET ASSETS — 100.00%			$	406,443,011

^a	Non-income earning security.

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

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $556,561,010. Net unrealized depreciation was $147,019,761, of which $20,219,873 represented gross unrealized appreciation on securities and $167,239,634 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	405,732,677	$	—	$	1,785	$	405,734,462
Money market funds		3,806,787		—		—		3,806,787

Total	$	409,539,464	$	—	$	1,785	$	409,541,249

See notes to financial statements.


36		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI TURKEY ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.90%

AIRLINES — 1.98%
Pegasus Hava Tasimaciligi AS^a,b		234,998	$	961,720
Turk Hava Yollari AO^a,b		3,630,812		6,331,314

				7,293,034
AUTO COMPONENTS — 0.31%
EGE Endustri VE Ticaret AS^b		7,342		526,006
Goodyear Lastikleri TAS^b		531,783		605,626

				1,131,632
AUTOMOBILES — 3.00%
Ford Otomotiv Sanayi AS		460,785		4,995,432
Tofas Turk Otomobil Fabrikasi AS		820,703		6,035,111

				11,030,543
BANKS — 33.87%
Akbank TAS		14,470,659		38,241,544
Albaraka Turk Katilim Bankasi AS		1,772,723		754,835
Sekerbank TAS^a,b		1,546,938		606,417
Turkiye Garanti Bankasi AS		15,194,195		39,178,030
Turkiye Halk Bankasi AS		4,110,977		12,336,682
Turkiye Is Bankasi Class C		10,359,600		16,839,470
Turkiye Sinai Kalkinma Bankasi AS		5,383,894		2,474,433
Turkiye Vakiflar Bankasi Tao Class D^b		4,933,173		7,251,969
Yapi ve Kredi Bankasi AS^a,b		5,718,612		7,034,486

				124,717,866
BEVERAGES — 3.99%
Anadolu Efes Biracilik ve Malt Sanayii AS		1,363,101		8,452,875
Coca-Cola Icecek AS		501,035		6,258,070

				14,710,945
BUILDING PRODUCTS — 0.49%
Trakya Cam Sanayii AS^b		2,137,042		1,812,705

				1,812,705
CAPITAL MARKETS — 0.21%
Verusa Holding AS		163,471		772,304

				772,304
CHEMICALS — 2.68%
Gubre Fabrikalari TAS^b		548,212		955,958
Petkim Petrokimya Holding AS		4,431,800		6,874,375
Soda Sanayii AS		1,477,276		2,046,849

				9,877,182


Security	Shares		Value
CONSTRUCTION & ENGINEERING — 0.74%
Tekfen Holding AS		1,093,170	$	2,711,591

				2,711,591
CONSTRUCTION MATERIALS — 1.23%
Adana Cimento Sanayii TAS Class A		352,347		732,295
Akcansa Cimento AS^b		314,241		1,420,886
Cimsa Cimento Sanayi VE Ticaret AS		354,763		1,815,117
Konya Cimento Sanayii AS^b		6,490		564,758

				4,533,056
CONTAINERS & PACKAGING — 0.14%
Anadolu Cam Sanayii AS^a		739,225		529,606

				529,606
DISTRIBUTORS — 0.34%
Dogus Otomotiv Servis ve Ticaret AS^b		361,105		1,241,066

				1,241,066
DIVERSIFIED FINANCIAL SERVICES — 5.06%
Haci Omer Sabanci Holding AS		6,039,406		18,633,969

				18,633,969
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.64%
Turk Telekomunikasyon AS		2,987,361		6,027,017

				6,027,017
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 4.23%
Dogus Gayrimenkul Yatirim Ortakligi AS^a,b		453,105		571,147
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		12,497,390		12,290,022
Is Gayrimenkul Yatirim Ortakligi AS^b		2,790,394		1,518,210
Torunlar Gayrimenkul Yatirim Ortakligi AS		820,703		1,212,015

				15,591,394
FOOD & STAPLES RETAILING — 7.05%
BIM Birlesik Magazalar AS		1,397,851		23,950,203
Bizim Toptan Satis Magazalari AS		133,586		603,125
Migros Ticaret AS^a,b		233,766		1,390,383

				25,943,711
FOOD PRODUCTS — 2.10%
Pinar SUT Mamulleri Sanayii AS		119,743		598,897
Ulker Biskuvi Sanayi AS		1,012,289		7,122,388

				7,721,285


SCHEDULES OF INVESTMENTS			37

Schedule of Investments (Continued)

iSHARES^® MSCI TURKEY ETF

August 31, 2016


Security	Shares		Value
GAS UTILITIES — 0.50%
Aygaz AS^b		492,416	$	1,848,786

				1,848,786
HEALTH CARE PROVIDERS & SERVICES — 0.20%
Selcuk Ecza Deposu Ticaret ve Sanayi AS		815,454		735,785

				735,785
HOTELS, RESTAURANTS & LEISURE — 0.52%
NET Holding AS^a,b		1,801,077		1,911,183

				1,911,183
HOUSEHOLD DURABLES — 3.39%
Arcelik AS		1,555,624		11,123,992
Vestel Elektronik Sanayi ve Ticaret AS^a,b		550,630		1,352,804

				12,476,796
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.61%
Akenerji Elektrik Uretim AS^a,b		1,456,802		462,774
Aksa Enerji Uretim AS^a,b		1,022,809		850,296
Zorlu Enerji Elektrik Uretim AS^a,b		1,723,543		943,577

				2,256,647
INDUSTRIAL CONGLOMERATES — 7.44%
Alarko Holding AS^b		522,451		575,577
Dogan Sirketler Grubu Holding AS^a,b		6,872,646		2,113,517
Enka Insaat ve Sanayi AS		1		2
KOC Holding AS		4,170,010		18,094,330
Turkiye Sise ve Cam Fabrikalari AS		4,710,842		5,444,588
Yazicilar Holding AS^b		262,639		1,173,359

				27,401,373
INSURANCE — 0.72%
Anadolu Anonim Turk Sigorta Sirketi^a,b		1,168,886		667,573
Anadolu Hayat Emeklilik AS^b		564,638		973,152
AvivaSA Emeklilik ve Hayat AS^b		154,938		994,837

				2,635,562
MACHINERY — 0.54%
Otokar Otomotiv Ve Savunma Sanayi AS^b		55,142		1,995,778

				1,995,778


Security	Shares		Value
MEDIA — 0.50%
Besiktas Futbol Yatirimlari Sanayi ve Ticaret AS^a,b		787,701	$	1,054,137
Fenerbahce Futbol AS^a,b		66,019		796,485

				1,850,622
METALS & MINING — 4.96%
Borusan Mannesmann Boru Sanayi ve Ticaret AS^b		279,197		846,337
Eregli Demir ve Celik Fabrikalari TAS		9,208,609		13,848,235
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class D		4,610,431		2,181,273
Koza Altin Isletmeleri AS^a,b		300,363		1,403,812

				18,279,657
OIL, GAS & CONSUMABLE FUELS — 4.38%
Tupras Turkiye Petrol Rafinerileri AS		823,571		16,114,616

				16,114,616
PERSONAL PRODUCTS — 0.29%
EIS Eczacibasi Ilac ve Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS^b		899,782		1,058,173

				1,058,173
TEXTILES, APPAREL & LUXURY GOODS — 0.38%
Aksa Akrilik Kimya Sanayii AS		485,839		1,393,928

				1,393,928
TRANSPORTATION INFRASTRUCTURE — 1.14%
TAV Havalimanlari Holding AS		1,073,326		4,185,794

				4,185,794
WIRELESS TELECOMMUNICATION SERVICES — 5.27%
Turkcell Iletisim Hizmetleri AS^a		5,788,267		19,423,977

				19,423,977

TOTAL COMMON STOCKS
(Cost: $568,124,827)				367,847,583

SHORT-TERM INVESTMENTS — 10.02%

MONEY MARKET FUNDS — 10.02%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		36,614,575		36,614,575


38		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI TURKEY ETF

August 31, 2016


Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		284,911	$	284,911

				36,899,486

TOTAL SHORT-TERM INVESTMENTS
(Cost: $36,899,486)				36,899,486

TOTAL INVESTMENTS IN SECURITIES — 109.92%
(Cost: $605,024,313)^f				404,747,069
Other Assets, Less Liabilities — (9.92)%				(36,522,568	)

NET ASSETS — 100.00%			$	368,224,501

^a	Non-income earning security.

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

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $616,966,904. Net unrealized depreciation was $212,219,835, of which $2,610,962 represented gross unrealized appreciation on securities and $214,830,797 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	367,847,583	$	—	$	—	$	367,847,583
Money market funds		36,899,486		—		—		36,899,486

Total	$	404,747,069	$	—	$	—	$	404,747,069

See notes to financial statements.


SCHEDULES OF INVESTMENTS			39

Schedule of Investments

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.81%

AEROSPACE & DEFENSE — 1.94%
B/E Aerospace Inc.		2,399	$	121,269
Boeing Co. (The)		902		116,764
General Dynamics Corp.		786		119,645
Honeywell International Inc.		1,036		120,912
L-3 Communications Holdings Inc.		809		120,395
Lockheed Martin Corp.		483		117,355
Northrop Grumman Corp.		562		119,183
Raytheon Co.		854		119,671
Rockwell Collins Inc.		1,421		118,923
Textron Inc.		2,935		119,895
TransDigm Group Inc.^a		422		120,350
United Technologies Corp.		1,114		118,563

				1,432,925
AIR FREIGHT & LOGISTICS — 0.65%
CH Robinson Worldwide Inc.		1,742		120,930
Expeditors International of Washington Inc.		2,350		119,027
FedEx Corp.		725		119,574
United Parcel Service Inc. Class B		1,107		120,907

				480,438
AIRLINES — 0.66%
American Airlines Group Inc.		3,267		118,592
Delta Air Lines Inc.		3,290		120,907
Southwest Airlines Co.		3,270		120,598
United Continental Holdings Inc.^a		2,539		127,991

				488,088
AUTO COMPONENTS — 0.99%
Autoliv Inc.		1,138		120,833
BorgWarner Inc.		3,553		122,188
Delphi Automotive PLC		1,748		123,514
Goodyear Tire & Rubber Co. (The)		4,143		121,597
Johnson Controls Inc.		2,720		119,353
Lear Corp.		1,039		120,825

				728,310
AUTOMOBILES — 0.65%
Ford Motor Co.		9,621		121,225
General Motors Co.		3,804		121,424
Harley-Davidson Inc.		2,253		118,733
Tesla Motors Inc.^a,b		543		115,121

				476,503


Security	Shares		Value
BANKS — 3.19%
Bank of America Corp.		7,751	$	125,101
BB&T Corp.		3,175		122,237
CIT Group Inc.		3,338		123,105
Citigroup Inc.		2,568		122,596
Citizens Financial Group Inc.		5,075		125,708
Comerica Inc.		2,604		123,143
Fifth Third Bancorp.		6,145		123,883
First Republic Bank/CA		1,617		124,444
Huntington Bancshares Inc./OH		12,497		125,095
JPMorgan Chase & Co.		1,816		122,580
KeyCorp		9,785		122,900
M&T Bank Corp.		1,030		121,880
People’s United Financial Inc.		7,588		123,305
PNC Financial Services Group Inc. (The)^c		1,397		125,870
Regions Financial Corp.		12,432		123,947
Signature Bank/New York NY^a		1,021		124,572
SunTrust Banks Inc.		2,808		123,749
U.S. Bancorp.		2,764		122,031
Wells Fargo & Co.		2,480		125,984

				2,352,130
BEVERAGES — 1.13%
Brown-Forman Corp. Class B		2,354		114,287
Coca-Cola Co. (The)		2,747		119,302
Constellation Brands Inc. Class A		720		118,116
Dr Pepper Snapple Group Inc.		1,283		120,217
Molson Coors Brewing Co. Class B		1,188		121,556
Monster Beverage Corp.^a		762		117,264
PepsiCo Inc.		1,112		118,706

				829,448
BIOTECHNOLOGY — 2.26%
AbbVie Inc.		1,854		118,842
Alexion Pharmaceuticals Inc.^a		929		116,924
Alkermes PLC^a		2,716		118,879
Alnylam Pharmaceuticals Inc.^a		1,730		120,841
Amgen Inc.		705		119,892
Biogen Inc.^a		391		119,501
BioMarin Pharmaceutical Inc.^a		1,263		118,583
Celgene Corp.^a		1,112		118,695
Gilead Sciences Inc.		1,498		117,413
Incyte Corp.^a		1,498		121,488
Medivation Inc.^a		1,495		120,437
Regeneron Pharmaceuticals Inc.^a,b		300		117,765
United Therapeutics Corp.^a,b		982		120,079


40		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2016


Security	Shares		Value
Vertex Pharmaceuticals Inc.^a		1,245	$	117,665

				1,667,004
BUILDING PRODUCTS — 0.49%
AO Smith Corp.		1,256		121,179
Fortune Brands Home & Security Inc.		1,889		120,065
Masco Corp.		3,402		120,703

				361,947
CAPITAL MARKETS — 3.83%
Affiliated Managers Group Inc.^a		855		121,453
Ameriprise Financial Inc.		1,242		125,541
Bank of New York Mellon Corp. (The)		2,960		123,343
BlackRock Inc.^c		326		121,536
Charles Schwab Corp. (The)		3,935		123,795
CME Group Inc.		1,136		123,086
E*TRADE Financial Corp.^a		4,703		124,065
Eaton Vance Corp. NVS		3,033		121,411
Franklin Resources Inc.		3,331		121,582
Goldman Sachs Group Inc. (The)		729		123,536
Intercontinental Exchange Inc.		433		122,115
Invesco Ltd.		3,903		121,735
Moody’s Corp.		1,135		123,363
Morgan Stanley		3,874		124,200
MSCI Inc.		1,353		121,932
Nasdaq Inc.		1,699		120,986
Northern Trust Corp.		1,743		123,038
Raymond James Financial Inc.		2,129		123,844
S&P Global Inc.		991		122,428
SEI Investments Co.		2,597		119,722
State Street Corp.		1,738		122,077
T Rowe Price Group Inc.		1,746		121,417
TD Ameritrade Holding Corp.		3,774		124,033

				2,820,238
CHEMICALS — 3.27%
Air Products & Chemicals Inc.		777		120,917
Albemarle Corp.		1,463		116,996
Ashland Inc.		1,033		120,944
Axalta Coating Systems Ltd.^a		4,248		121,578
Celanese Corp. Series A		1,818		117,134
CF Industries Holdings Inc.		4,951		128,726
Dow Chemical Co. (The)		2,221		119,134
Eastman Chemical Co.		1,771		120,233
Ecolab Inc.		977		120,220
EI du Pont de Nemours & Co.		1,708		118,877
FMC Corp.		2,543		119,368


Security	Shares		Value
International Flavors & Fragrances Inc.		866	$	120,010
LyondellBasell Industries NV Class A		1,520		119,913
Monsanto Co.		1,131		120,452
Mosaic Co. (The)		4,209		126,565
PPG Industries Inc.		1,124		119,009
Praxair Inc.		975		118,989
Sherwin-Williams Co. (The)		419		118,874
Valspar Corp. (The)		1,136		119,746
WR Grace & Co.		1,526		119,226

				2,406,911
COMMERCIAL SERVICES & SUPPLIES — 0.97%
Cintas Corp.		1,034		121,505
Republic Services Inc.		2,346		118,520
Stericycle Inc.^a		1,416		121,748
Tyco International PLC		2,719		118,766
Waste Connections Inc.^a		1,549		118,390
Waste Management Inc.		1,840		117,650

				716,579
COMMUNICATIONS EQUIPMENT — 0.97%
Cisco Systems Inc.		3,834		120,541
F5 Networks Inc.^a		965		118,435
Harris Corp.		1,325		123,199
Juniper Networks Inc.		5,127		118,331
Motorola Solutions Inc.		1,567		120,643
Palo Alto Networks Inc.^a		855		113,860

				715,009
CONSTRUCTION & ENGINEERING — 0.32%
Fluor Corp.		2,269		117,761
Jacobs Engineering Group Inc.^a		2,207		116,287

				234,048
CONSTRUCTION MATERIALS — 0.32%
Martin Marietta Materials Inc.		633		115,858
Vulcan Materials Co.		1,029		117,172

				233,030
CONSUMER FINANCE — 1.00%
Ally Financial Inc.		6,077		121,783
American Express Co.		1,846		121,061
Capital One Financial Corp.		1,759		125,944
Discover Financial Services		2,068		124,080
Navient Corp.		8,360		120,217
Synchrony Financial		4,442		123,621

				736,706


SCHEDULES OF INVESTMENTS			41

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2016


Security	Shares		Value
CONTAINERS & PACKAGING — 1.14%
Avery Dennison Corp.		1,545	$	119,645
Ball Corp.		1,503		119,022
Crown Holdings Inc.^a		2,244		121,692
International Paper Co.		2,479		120,207
Packaging Corp. of America		1,525		119,911
Sealed Air Corp.		2,516		118,579
WestRock Co.		2,549		122,097

				841,153
DISTRIBUTORS — 0.32%
Genuine Parts Co.		1,152		118,449
LKQ Corp.^a		3,345		120,721

				239,170
DIVERSIFIED CONSUMER SERVICES — 0.14%
H&R Block Inc.		4,903		106,199

				106,199
DIVERSIFIED FINANCIAL SERVICES — 0.50%
Berkshire Hathaway Inc. Class B^a		807		121,445
Leucadia National Corp.		6,399		122,541
Voya Financial Inc.		4,233		123,773

				367,759
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.97%
AT&T Inc.		2,921		119,411
CenturyLink Inc.		4,116		114,425
Frontier Communications Corp.		25,967		119,448
Level 3 Communications Inc.^a		2,427		120,452
SBA Communications Corp. Class A^a		1,060		120,999
Verizon Communications Inc.		2,274		118,998

				713,733
ELECTRIC UTILITIES — 2.57%
Alliant Energy Corp.		3,086		117,114
American Electric Power Co. Inc.		1,820		117,517
Duke Energy Corp.		1,479		117,817
Edison International		1,641		119,333
Entergy Corp.		1,527		119,411
Eversource Energy		2,171		117,169
Exelon Corp.		3,476		118,184
FirstEnergy Corp.		3,643		119,235
NextEra Energy Inc.		971		117,433
OGE Energy Corp.		3,853		119,944
PG&E Corp.		1,891		117,129
Pinnacle West Capital Corp.		1,564		117,363
PPL Corp.		3,397		118,148
Southern Co. (The)		2,313		118,726


Security	Shares		Value
Westar Energy Inc.		2,206	$	121,198
Xcel Energy Inc.		2,840		117,462

				1,893,183
ELECTRICAL EQUIPMENT — 0.97%
Acuity Brands Inc.		442		121,603
AMETEK Inc.		2,410		117,488
Eaton Corp. PLC		1,780		118,441
Emerson Electric Co.		2,218		116,844
Rockwell Automation Inc.		1,028		119,176
Sensata Technologies Holding NV^a		3,102		118,124

				711,676
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.47%
Amphenol Corp. Class A		1,964		122,377
Arrow Electronics Inc.^a		1,826		120,206
Avnet Inc.		2,873		119,747
CDW Corp./DE		2,676		119,483
Corning Inc.		5,290		120,030
Flextronics International Ltd.^a		9,310		123,264
FLIR Systems Inc.		3,851		118,726
TE Connectivity Ltd.		1,894		120,401
Trimble Navigation Ltd.^a		4,374		119,848

				1,084,082
ENERGY EQUIPMENT & SERVICES — 1.26%
Baker Hughes Inc.		2,323		114,129
Core Laboratories NV		1,030		115,134
FMC Technologies Inc.^a		4,234		119,399
Halliburton Co.		2,696		115,955
Helmerich & Payne Inc.		1,916		115,841
National Oilwell Varco Inc.		3,408		114,304
Schlumberger Ltd.		1,484		117,236
Weatherford International PLC^a		21,734		118,885

				930,883
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 5.83%
Alexandria Real Estate Equities Inc.		1,108		121,980
American Capital Agency Corp.		4,818		93,036
American Tower Corp.		1,050		119,049
Annaly Capital Management Inc.		10,956		117,339
AvalonBay Communities Inc.		685		119,882
Boston Properties Inc.		854		119,671
Brixmor Property Group Inc.		4,236		120,980
Camden Property Trust		1,397		122,615
Crown Castle International Corp.		1,270		120,358
Digital Realty Trust Inc.^b		1,190		117,917


42		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2016


Security	Shares		Value
Duke Realty Corp.		4,298	$	120,860
Equinix Inc.		330		121,654
Equity Residential		1,829		118,647
Essex Property Trust Inc.		532		120,817
Extra Space Storage Inc.		1,494		120,342
Federal Realty Investment Trust		752		119,568
General Growth Properties Inc.		4,083		118,979
HCP Inc.		3,031		119,209
Host Hotels & Resorts Inc.		6,614		117,861
Iron Mountain Inc.^b		3,133		120,339
Kimco Realty Corp.		4,022		120,861
Liberty Property Trust		2,961		122,082
Macerich Co. (The)		1,452		118,904
Mid-America Apartment Communities Inc.		1,271		119,461
Prologis Inc.^b		2,250		119,498
Public Storage		536		120,032
Realty Income Corp.		1,815		119,300
Regency Centers Corp.		1,502		120,971
Simon Property Group Inc.		557		120,017
SL Green Realty Corp.		1,039		122,311
UDR Inc.		3,323		120,226
Ventas Inc.		1,632		118,597
VEREIT Inc.		11,491		120,081
Vornado Realty Trust		1,183		122,216
Welltower Inc.		1,558		119,576
Weyerhaeuser Co.		3,804		121,157

				4,296,393
FOOD & STAPLES RETAILING — 1.30%
Costco Wholesale Corp.		728		118,001
CVS Health Corp.		1,290		120,486
Kroger Co. (The)		3,662		117,147
Rite Aid Corp.^a		16,060		120,932
Sysco Corp.		2,287		118,604
Wal-Mart Stores Inc.		1,699		121,377
Walgreens Boots Alliance Inc.		1,496		120,742
Whole Foods Market Inc.		3,870		117,571

				954,860
FOOD PRODUCTS — 2.61%
Archer-Daniels-Midland Co.		2,819		123,359
Bunge Ltd.		1,922		122,816
Campbell Soup Co.		1,963		119,193
ConAgra Foods Inc.		2,604		121,372
General Mills Inc.		1,695		120,040
Hershey Co. (The)		1,081		107,981


Security	Shares		Value
Hormel Foods Corp.		3,122	$	119,448
Ingredion Inc.		888		121,621
JM Smucker Co. (The)		851		120,663
Kellogg Co.		1,449		119,122
Kraft Heinz Co. (The)		1,351		120,901
McCormick & Co. Inc./MD		1,185		120,823
Mead Johnson Nutrition Co.		1,441		122,586
Mondelez International Inc. Class A		2,785		125,381
Tyson Foods Inc. Class A		1,590		120,156
WhiteWave Foods Co. (The)^a		2,172		120,394

				1,925,856
GAS UTILITIES — 0.32%
Atmos Energy Corp.		1,609		118,583
UGI Corp.		2,626		119,431

				238,014
HEALTH CARE EQUIPMENT & SUPPLIES — 2.95%
Abbott Laboratories		2,800		117,656
Baxter International Inc.		2,547		119,021
Becton Dickinson and Co.		689		122,098
Boston Scientific Corp.^a		5,047		120,219
Cooper Companies Inc. (The)		653		121,406
CR Bard Inc.		562		124,112
Danaher Corp.		1,490		121,301
DENTSPLY SIRONA Inc.		1,974		121,322
Edwards Lifesciences Corp.^a		1,054		121,379
Hologic Inc.^a		3,122		119,947
IDEXX Laboratories Inc.^a		1,092		123,047
Intuitive Surgical Inc.^a		175		120,123
Medtronic PLC		1,413		122,973
ResMed Inc.		1,753		116,908
St. Jude Medical Inc.		1,542		120,153
Stryker Corp.		1,059		122,484
Varian Medical Systems Inc.^a,b		1,268		121,893
Zimmer Biomet Holdings Inc.		936		121,315

				2,177,357
HEALTH CARE PROVIDERS & SERVICES — 3.12%
Aetna Inc.		1,021		119,580
AmerisourceBergen Corp.		1,403		122,019
Anthem Inc.		944		118,076
Cardinal Health Inc.		1,512		120,461
Centene Corp.^a		1,772		121,010
Cigna Corp.		927		118,897
DaVita HealthCare Partners Inc.^a		1,868		120,729
Envision Healthcare Holdings Inc.^a		5,779		124,017
Express Scripts Holding Co.^a		1,672		121,554


SCHEDULES OF INVESTMENTS			43

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2016


Security	Shares		Value
HCA Holdings Inc.^a		1,599	$	120,804
Henry Schein Inc.^a		746		122,187
Humana Inc.		677		120,987
Laboratory Corp. of America Holdings^a		886		121,320
McKesson Corp.		660		121,849
MEDNAX Inc.^a		1,904		125,226
Patterson Companies Inc.		2,609		120,014
Quest Diagnostics Inc.		1,454		120,420
UnitedHealth Group Inc.		874		118,908
Universal Health Services Inc. Class B		999		120,410

				2,298,468
HEALTH CARE TECHNOLOGY — 0.33%
Cerner Corp.^a		1,861		120,109
IMS Health Holdings Inc.^a		4,117		122,769

				242,878
HOTELS, RESTAURANTS & LEISURE — 2.76%
Aramark		3,203		121,490
Carnival Corp.		2,542		121,508
Chipotle Mexican Grill Inc.^a,b		293		121,223
Darden Restaurants Inc.		1,904		117,363
Domino’s Pizza Inc.		799		119,506
Hilton Worldwide Holdings Inc.		4,957		118,324
Las Vegas Sands Corp.		2,383		119,650
Marriott International Inc./MD Class A		1,643		117,195
McDonald’s Corp.		1,048		121,212
MGM Resorts International^a		5,071		121,146
Norwegian Cruise Line Holdings Ltd.^a		3,316		119,011
Royal Caribbean Cruises Ltd.		1,714		121,883
Starbucks Corp.		2,101		118,139
Starwood Hotels & Resorts Worldwide Inc.		1,525		118,126
Wyndham Worldwide Corp.		1,698		120,201
Wynn Resorts Ltd.^b		1,337		119,421
Yum! Brands Inc.		1,334		121,007

				2,036,405
HOUSEHOLD DURABLES — 1.62%
DR Horton Inc.		3,677		117,885
Garmin Ltd.		2,375		116,565
Harman International Industries Inc.		1,403		118,820
Leggett & Platt Inc.		2,298		120,599
Lennar Corp. Class A		2,542		120,236
Mohawk Industries Inc.^a		573		121,923
Newell Brands Inc.		2,234		118,581


Security	Shares		Value
PulteGroup Inc.		5,562	$	118,860
Toll Brothers Inc.^a		3,840		119,385
Whirlpool Corp.		670		119,689

				1,192,543
HOUSEHOLD PRODUCTS — 0.82%
Church & Dwight Co. Inc.		1,213		120,596
Clorox Co. (The)		923		120,950
Colgate-Palmolive Co.		1,608		119,539
Kimberly-Clark Corp.		942		120,633
Procter & Gamble Co. (The)		1,365		119,178

				600,896
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.49%
AES Corp./VA		9,907		119,577
Calpine Corp.^a		9,659		120,544
NRG Energy Inc.		9,714		117,637

				357,758
INDUSTRIAL CONGLOMERATES — 0.49%
3M Co.		668		119,732
General Electric Co.		3,844		120,087
Roper Technologies Inc.		684		121,444

				361,263
INSURANCE — 4.68%
Aflac Inc.		1,653		122,620
Alleghany Corp.^a		166		89,009
Allstate Corp. (The)		1,765		121,714
American International Group Inc.		2,052		122,771
Aon PLC		1,090		121,371
Arch Capital Group Ltd.^a		1,522		123,191
Arthur J Gallagher & Co.		2,454		121,252
Assurant Inc.		1,369		122,594
Axis Capital Holdings Ltd.		2,153		122,441
Chubb Ltd.		952		120,837
Cincinnati Financial Corp.		1,560		120,292
Everest Re Group Ltd.		496		95,916
FNF Group		3,216		121,211
Hartford Financial Services Group Inc. (The)		2,993		122,923
Lincoln National Corp.		2,584		124,110
Loews Corp.		2,875		120,348
Markel Corp.^a		130		121,044
Marsh & McLennan Companies Inc.		1,789		120,990
MetLife Inc.		2,904		126,034
Principal Financial Group Inc.		2,500		122,675


44		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2016


Security	Shares		Value
Progressive Corp. (The)		3,711	$	120,830
Prudential Financial Inc.		1,552		123,198
RenaissanceRe Holdings Ltd.		759		90,852
Torchmark Corp.		1,893		122,439
Travelers Companies Inc. (The)		1,019		120,965
Unum Group		3,467		123,460
Willis Towers Watson PLC		982		121,778
WR Berkley Corp.		2,046		121,471
XL Group Ltd.		3,559		121,825

				3,450,161
INTERNET & DIRECT MARKETING RETAIL — 0.97%
Amazon.com Inc.^a		158		121,528
Expedia Inc.		1,069		116,649
Liberty Interactive Corp. QVC Group Series A^a		5,662		119,638
Netflix Inc.^a		1,233		120,156
Priceline Group Inc. (The)^a		85		120,422
TripAdvisor Inc.^a,b		1,938		118,218

				716,611
INTERNET SOFTWARE & SERVICES — 1.48%
Akamai Technologies Inc.^a,b		2,199		120,725
Alphabet Inc. Class A^a		75		59,239
Alphabet Inc. Class C^a		79		60,597
eBay Inc.^a		3,828		123,108
Facebook Inc. Class A^a		971		122,463
LinkedIn Corp. Class A^a		631		121,625
Twitter Inc.^a		6,549		125,806
VeriSign Inc.^a,b		1,599		119,046
Yahoo! Inc.^a		2,854		122,009
Zillow Group Inc. Class C^a		3,531		119,524

				1,094,142
IT SERVICES — 3.27%
Accenture PLC Class A		1,043		119,945
Alliance Data Systems Corp.^a		599		122,543
Automatic Data Processing Inc.		1,348		121,064
Broadridge Financial Solutions Inc.		1,737		120,374
Cognizant Technology Solutions Corp. Class A^a		2,084		119,705
Fidelity National Information Services Inc.		1,507		119,550
Fiserv Inc.^a		1,165		120,053
FleetCor Technologies Inc.^a		724		118,881
Gartner Inc.^a		1,321		120,211
Global Payments Inc.		1,566		118,938


Security	Shares		Value
International Business Machines Corp.		758	$	120,431
MasterCard Inc. Class A		1,255		121,271
Paychex Inc.		1,992		120,855
PayPal Holdings Inc.^a		3,198		118,806
Sabre Corp.		4,300		121,045
Total System Services Inc.		2,485		122,386
Vantiv Inc. Class A^a		2,250		120,915
Visa Inc. Class A		1,494		120,865
Western Union Co. (The)		5,585		120,189
Xerox Corp.		12,343		121,578

				2,409,605
LEISURE PRODUCTS — 0.48%
Hasbro Inc.		1,497		122,365
Mattel Inc.		3,619		119,897
Polaris Industries Inc.		1,316		114,018

				356,280
LIFE SCIENCES TOOLS & SERVICES — 0.98%
Agilent Technologies Inc.		2,547		119,658
Illumina Inc.^a		708		119,185
Mettler-Toledo International Inc.^a		299		120,518
Quintiles Transnational Holdings Inc.^a		1,585		122,520
Thermo Fisher Scientific Inc.		793		120,687
Waters Corp.^a		759		119,398

				721,966
MACHINERY — 2.77%
AGCO Corp.		2,470		119,894
Caterpillar Inc.		1,448		118,664
Cummins Inc.		965		121,214
Deere & Co.		1,386		117,186
Dover Corp.		1,628		118,030
Flowserve Corp.		2,466		119,280
Fortive Corp.		2,324		122,405
Illinois Tool Works Inc.		1,005		119,444
Ingersoll-Rand PLC		1,770		120,342
PACCAR Inc.		2,002		119,800
Parker-Hannifin Corp.		971		118,977
Pentair PLC		1,882		120,542
Snap-on Inc.		779		119,413
Stanley Black & Decker Inc.		993		122,884
WABCO Holdings Inc.^a		1,123		119,891
Wabtec Corp./DE		1,588		121,657
Xylem Inc./NY		2,372		120,640

				2,040,263


SCHEDULES OF INVESTMENTS			45

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2016


Security	Shares		Value
MEDIA — 3.10%
CBS Corp. Class B NVS		2,321	$	118,441
Charter Communications Inc.^a		476		122,432
Comcast Corp. Class A		1,836		119,817
Discovery Communications Inc. Class A^a,b		1,838		46,887
Discovery Communications Inc. Class C NVS^a		2,886		71,630
DISH Network Corp. Class A^a		2,454		123,264
Interpublic Group of Companies Inc. (The)		5,266		121,855
Liberty Broadband Corp. Class C^a		1,759		120,544
Liberty Global PLC Series A^a		1,237		39,151
Liberty Global PLC Series C NVS^a		2,702		83,303
Liberty Global PLC LiLAC Class C^a		4,311		123,122
Liberty SiriusXM Group Class A^a		1,162		38,939
Liberty SiriusXM Group Class C^a		2,504		83,208
News Corp. Class A		8,637		121,436
Omnicom Group Inc.		1,422		122,477
Scripps Networks Interactive Inc. Class A		1,872		118,629
Sirius XM Holdings Inc.^a,b		28,908		119,679
TEGNA Inc.		5,699		115,462
Time Warner Inc.		1,503		117,850
Twenty-First Century Fox Inc. Class A		3,464		85,007
Twenty-First Century Fox Inc. Class B		1,389		34,517
Viacom Inc. Class B NVS		2,897		116,865
Walt Disney Co. (The)		1,256		118,642

				2,283,157
METALS & MINING — 0.63%
Alcoa Inc.		11,906		120,012
Freeport-McMoRan Inc.		10,818		111,317
Newmont Mining Corp.		2,987		114,223
Nucor Corp.		2,454		119,044

				464,596
MULTI-UTILITIES — 1.76%
Ameren Corp.		2,399		118,558
CenterPoint Energy Inc.		5,283		118,709
CMS Energy Corp.		2,803		117,642
Consolidated Edison Inc.		1,569		118,067
Dominion Resources Inc./VA		1,574		116,728
DTE Energy Co.		1,261		117,147
NiSource Inc.		4,859		116,324
Public Service Enterprise Group Inc.		2,754		117,761
SCANA Corp.		1,658		117,138


Security	Shares		Value
Sempra Energy		1,136	$	118,860
WEC Energy Group Inc.		1,967		117,784

				1,294,718
MULTILINE RETAIL — 0.95%
Dollar General Corp.		1,587		116,502
Dollar Tree Inc.^a		1,403		116,028
Kohl’s Corp.		2,685		119,160
Macy’s Inc.		3,057		110,602
Nordstrom Inc.^b		2,327		117,421
Target Corp.		1,694		118,902

				698,615
OIL, GAS & CONSUMABLE FUELS — 5.28%
Anadarko Petroleum Corp.		2,175		116,297
Antero Resources Corp.^a,b		4,478		114,458
Apache Corp.		2,285		113,565
Cabot Oil & Gas Corp.		4,723		116,328
Cheniere Energy Inc.^a,b		2,769		118,790
Chevron Corp.		1,187		119,388
Cimarex Energy Co.		902		119,226
Concho Resources Inc.^a,b		909		117,443
ConocoPhillips		2,804		115,104
Continental Resources Inc./OK^a		2,456		117,790
Devon Energy Corp.		2,703		117,121
EOG Resources Inc.		1,340		118,577
EQT Corp.		1,676		119,834
Exxon Mobil Corp.		1,372		119,556
Hess Corp.		2,112		114,682
HollyFrontier Corp.		4,672		120,911
Kinder Morgan Inc./DE		5,577		121,857
Marathon Oil Corp.		7,493		112,545
Marathon Petroleum Corp.		2,863		121,706
Murphy Oil Corp.		4,145		110,754
Newfield Exploration Co.^a		2,707		117,376
Noble Energy Inc.		3,357		115,749
Occidental Petroleum Corp.		1,551		119,194
ONEOK Inc.		2,551		119,616
Phillips 66		1,517		119,009
Pioneer Natural Resources Co.		665		119,068
Plains GP Holdings LP Class A		10,496		119,445
Range Resources Corp.		2,990		115,324
Southwestern Energy Co.^a		8,514		118,430
Spectra Energy Corp.		3,361		119,719
Tesoro Corp.		1,619		122,105
Valero Energy Corp.		2,198		121,659
Williams Companies Inc. (The)		4,305		120,282

				3,892,908


46		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2016


Security	Shares		Value
PERSONAL PRODUCTS — 0.33%
Edgewell Personal Care Co.^a		1,534	$	122,735
Estee Lauder Companies Inc. (The) Class A		1,315		117,338

				240,073
PHARMACEUTICALS — 1.95%
Allergan PLC^a		508		119,146
Bristol-Myers Squibb Co.		2,042		117,190
Eli Lilly & Co.		1,538		119,580
Endo International PLC^a		5,705		118,094
Jazz Pharmaceuticals PLC^a		942		116,648
Johnson & Johnson		1,012		120,772
Mallinckrodt PLC^a		1,608		119,860
Merck & Co. Inc.		1,925		120,871
Mylan NV^a		2,800		118,608
Perrigo Co. PLC		1,356		123,382
Pfizer Inc.		3,450		120,060
Zoetis Inc.		2,377		121,465

				1,435,676
PROFESSIONAL SERVICES — 1.15%
Dun & Bradstreet Corp. (The)		878		120,857
Equifax Inc.		927		122,271
IHS Markit Ltd.^a		3,281		122,447
ManpowerGroup Inc.		1,688		120,624
Nielsen Holdings PLC		2,281		121,532
Robert Half International Inc.		3,124		119,743
Verisk Analytics Inc. Class A^a		1,446		120,090

				847,564
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.49%
CBRE Group Inc. Class A^a		4,085		122,101
Jones Lang LaSalle Inc.		1,038		121,187
Realogy Holdings Corp.		4,416		118,525

				361,813
ROAD & RAIL — 0.98%
AMERCO		354		121,673
CSX Corp.		4,277		120,953
JB Hunt Transport Services Inc.		1,474		117,021
Kansas City Southern		1,214		117,418
Norfolk Southern Corp.		1,303		122,352
Union Pacific Corp.		1,262		120,559

				719,976
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.79%
Analog Devices Inc.		1,913		119,677


Security	Shares		Value
Applied Materials Inc.		4,046	$	120,733
Broadcom Ltd.		687		121,200
Intel Corp.		3,419		122,708
KLA-Tencor Corp.		1,783		123,491
Lam Research Corp.		1,284		119,823
Linear Technology Corp.		2,052		119,508
Marvell Technology Group Ltd.		9,850		122,140
Maxim Integrated Products Inc.		2,933		119,432
Microchip Technology Inc.		1,963		121,529
Micron Technology Inc.^a		7,406		122,125
NVIDIA Corp.		1,950		119,613
Qorvo Inc.^a,b		2,071		118,937
QUALCOMM Inc.		1,915		120,779
Skyworks Solutions Inc.		1,614		120,824
Texas Instruments Inc.		1,718		119,470
Xilinx Inc.		2,218		120,238

				2,052,227
SOFTWARE — 3.74%
Activision Blizzard Inc.		2,941		121,669
Adobe Systems Inc.^a		1,180		120,726
ANSYS Inc.^a		1,230		116,961
Autodesk Inc.^a		1,898		127,925
CA Inc.		3,538		119,974
Cadence Design Systems Inc.^a		4,718		120,026
CDK Global Inc.		2,082		120,715
Citrix Systems Inc.^a		1,359		118,505
Electronic Arts Inc.^a		1,471		119,489
Fortinet Inc.^a		3,372		121,864
Intuit Inc.		1,094		121,926
Microsoft Corp.		2,080		119,517
NetSuite Inc.^a,b		1,111		120,988
Nuance Communications Inc.^a		8,257		120,387
Oracle Corp.		2,919		120,321
Red Hat Inc.^a		1,602		116,914
salesforce.com inc.^a		1,497		118,892
ServiceNow Inc.^a		1,630		118,452
Splunk Inc.^a		1,843		107,336
Symantec Corp.		5,056		122,001
Synopsys Inc.^a		2,042		121,070
VMware Inc. Class A^a,b		1,610		118,061
Workday Inc. Class A^a,b		1,406		119,215

				2,752,934
SPECIALTY RETAIL — 3.20%
Advance Auto Parts Inc.		749		117,878
AutoNation Inc.^a		2,543		120,411


SCHEDULES OF INVESTMENTS			47

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2016


Security	Shares		Value
AutoZone Inc.^a		157	$	116,463
Bed Bath & Beyond Inc.^b		2,588		120,006
Best Buy Co. Inc.		3,036		116,825
CarMax Inc.^a,b		2,055		121,142
Dick’s Sporting Goods Inc.		2,043		119,720
Foot Locker Inc.		1,793		117,693
Gap Inc. (The)		4,546		113,059
Home Depot Inc. (The)		886		118,830
L Brands Inc.		1,573		119,878
Lowe’s Companies Inc.		1,549		118,591
O’Reilly Automotive Inc.^a		426		119,259
Ross Stores Inc.		1,892		117,758
Signet Jewelers Ltd.		1,438		117,887
Staples Inc.		14,015		119,968
Tiffany & Co.		1,637		116,833
TJX Companies Inc. (The)		1,535		118,870
Tractor Supply Co.		1,427		119,797
Ulta Salon Cosmetics & Fragrance Inc.^a		442		109,267

				2,360,135
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 1.15%
Apple Inc.		1,125		119,362
EMC Corp.		4,182		121,236
Hewlett Packard Enterprise Co.		5,493		117,990
HP Inc.		8,349		119,975
NetApp Inc.		3,424		118,436
Seagate Technology PLC		3,743		126,289
Western Digital Corp.		2,592		120,969

				844,257
TEXTILES, APPAREL & LUXURY GOODS — 1.42%
Coach Inc.		3,012		114,998
Hanesbrands Inc.		4,382		116,298
lululemon athletica Inc.^a		1,489		113,923
Michael Kors Holdings Ltd.^a		2,387		116,844
NIKE Inc. Class B		2,042		117,701
PVH Corp.		1,127		121,445
Ralph Lauren Corp.		1,130		117,091
Under Armour Inc. Class A^a,b		1,479		58,613
Under Armour Inc. Class C^a		1,504		53,618
VF Corp.		1,868		115,909

				1,046,440
THRIFTS & MORTGAGE FINANCE — 0.17%
New York Community Bancorp. Inc.		8,325		125,791

				125,791


Security	Shares		Value
TOBACCO — 0.49%
Altria Group Inc.		1,820	$	120,284
Philip Morris International Inc.		1,202		120,116
Reynolds American Inc.		2,387		118,323

				358,723
TRADING COMPANIES & DISTRIBUTORS — 0.49%
Fastenal Co.		2,743		118,251
United Rentals Inc.^a		1,477		121,572
WW Grainger Inc.		520		119,943

				359,766
WATER UTILITIES — 0.16%
American Water Works Co. Inc.		1,578		116,756

				116,756
WIRELESS TELECOMMUNICATION SERVICES — 0.33%
Sprint Corp.^a,b		19,412		119,966
T-Mobile U.S. Inc.^a		2,592		120,113

				240,079

TOTAL COMMON STOCKS (Cost: $69,200,236)				73,535,075

SHORT-TERM INVESTMENTS — 3.15%

MONEY MARKET FUNDS — 3.15%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		2,263,088		2,263,088
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		59,159		59,159

				2,322,247

TOTAL SHORT-TERM INVESTMENTS (Cost: $2,322,247)				2,322,247

TOTAL INVESTMENTS IN SECURITIES — 102.96%
(Cost: $71,522,483)^g				75,857,322
Other Assets, Less Liabilities — (2.96)%				(2,183,937	)

NET ASSETS — 100.00%			$	73,673,385

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 Schedule 1.

^d	Affiliated money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $72,193,533. Net unrealized appreciation was $3,663,789, of which $5,959,550 represented gross unrealized appreciation on securities and $2,295,761 represented gross unrealized depreciation on securities.


48		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2016

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended August 31, 2016, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:


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)
BlackRock Inc.		226		210		(110	)		326	$	121,536	$	2,097	$	2,888
PNC Financial Services Group Inc. (The)		776		942		(321	)		1,397		125,870		1,770		1,437

										$	247,406	$	3,867	$	4,325

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	73,535,075	$	—	$	—	$	73,535,075
Money market funds		2,322,247		—		—		2,322,247

Total	$	75,857,322	$	—	$	—	$	75,857,322

See notes to financial statements.


SCHEDULES OF INVESTMENTS			49

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Brazil Capped ETF			iShares MSCI Chile Capped ETF			iShares MSCI Colombia Capped ETF

ASSETS
Investments, at cost:
Unaffiliated	$	2,649,682,876		$	278,329,028		$	15,632,492
Affiliated (Note 2)		1,839,027			345,371			10,146

Total cost of investments	$	2,651,521,903		$	278,674,399		$	15,642,638

Investments in securities, at fair value (Note 1):
Unaffiliated	$	3,887,361,014		$	326,841,799		$	17,128,489
Affiliated (Note 2)		1,839,027			345,371			10,146

Total fair value of investments		3,889,200,041			327,187,170			17,138,635
Foreign currency, at value^a		16,627,628			—			7,708
Cash		—			27,520			—
Receivables:
Investment securities sold		2,728,289			4,576,569			1,165,206
Dividends and interest		7,167,346			41,906			3,510

Total Assets		3,915,723,304			331,833,165			18,315,059


LIABILITIES
Payables:
Investment securities purchased		14,025,192			4,409,059			1,170,228
Investment advisory fees (Note 2)		2,068,563			179,874			8,617

Total Liabilities		16,093,755			4,588,933			1,178,845


NET ASSETS	$	3,899,629,549		$	327,244,232		$	17,136,214


Net assets consist of:
Paid-in capital	$	5,429,157,628		$	491,281,634		$	27,988,429
Undistributed (distributions in excess of) net investment income		13,940,149			(45,076	)		(11,506	)
Accumulated net realized loss		(2,781,421,835	)		(212,505,097	)		(12,336,618	)
Net unrealized appreciation		1,237,953,607			48,512,771			1,495,909

NET ASSETS	$	3,899,629,549		$	327,244,232		$	17,136,214


Shares outstanding^b		116,350,000			8,900,000			1,300,000


Net asset value per share	$	33.52		$	36.77		$	13.18

^a	Cost of foreign currency: $16,674,631, $ — and $7,724, respectively.

^b	$0.001 par value, number of shares authorized: 500 million, 200 million and 25 million, respectively.

See notes to financial statements.


50		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Israel Capped ETF			iShares MSCI Russia Capped ETF			iShares MSCI South Africa ETF

ASSETS
Investments, at cost:
Unaffiliated	$	103,956,381		$	387,287,053		$	532,271,180
Affiliated (Note 2)		13,469,318			749,898			3,806,787

Total cost of investments	$	117,425,699		$	388,036,951		$	536,077,967

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	93,526,651		$	318,529,233		$	405,734,462
Affiliated (Note 2)		13,469,318			749,898			3,806,787

Total fair value of investments		106,995,969			319,279,131			409,541,249
Foreign currency, at value^b		131,983			—			653,303
Cash		—			900,697			—
Receivables:
Investment securities sold		1,223,678			8,063,028			4,616,635
Dividends and interest		183,636			201,378			119,816

Total Assets		108,535,266			328,444,234			414,931,003


LIABILITIES
Payables:
Investment securities purchased		1,238,740			8,645,800			4,584,345
Collateral for securities on loan (Note 1)		13,438,272			—			3,684,420
Foreign taxes (Note 1)		15,813			—			—
Investment advisory fees (Note 2)		49,878			169,882			219,227

Total Liabilities		14,742,703			8,815,682			8,487,992


NET ASSETS	$	93,792,563		$	319,628,552		$	406,443,011


Net assets consist of:
Paid-in capital	$	157,470,801		$	465,972,256		$	652,834,351
Undistributed (distributions in excess of) net investment income		5,368			7,695,156			(6,378,230	)
Accumulated net realized loss		(53,239,822	)		(85,277,573	)		(113,443,183	)
Net unrealized depreciation		(10,443,784	)		(68,761,287	)		(126,569,927	)

NET ASSETS	$	93,792,563		$	319,628,552		$	406,443,011


Shares outstanding^c		1,900,000			22,900,000			7,700,000


Net asset value per share	$	49.36		$	13.96		$	52.78

^a	Securities on loan with values of $13,158,781, $ — and $3,348,852, respectively. See Note 1.

^b	Cost of foreign currency: $130,220, $ — and $683,939, respectively.

^c	$0.001 par value, number of shares authorized: 500 million, 1 billion and 400 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			51

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Turkey ETF			iShares MSCI USA Equal Weighted ETF

ASSETS
Investments, at cost:
Unaffiliated	$	568,124,827		$	68,972,984
Affiliated (Note 2)		36,899,486			2,549,499

Total cost of investments	$	605,024,313		$	71,522,483

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	367,847,583		$	73,287,669
Affiliated (Note 2)		36,899,486			2,569,653

Total fair value of investments		404,747,069			75,857,322
Foreign currency, at value^b		126,408			—
Receivables:
Investment securities sold		—			2,914,094
Dividends and interest		163,219			118,661

Total Assets		405,036,696			78,890,077


LIABILITIES
Payables:
Investment securities purchased		—			2,944,242
Collateral for securities on loan (Note 1)		36,614,575			2,263,088
Investment advisory fees (Note 2)		197,620			9,362

Total Liabilities		36,812,195			5,216,692


NET ASSETS	$	368,224,501		$	73,673,385


Net assets consist of:
Paid-in capital	$	645,028,727		$	71,955,822
Undistributed net investment income		173,958			163,769
Accumulated net realized loss		(76,698,852	)		(2,781,045	)
Net unrealized appreciation (depreciation)		(200,279,332	)		4,334,839

NET ASSETS	$	368,224,501		$	73,673,385


Shares outstanding^c		9,650,000			1,600,000


Net asset value per share	$	38.16		$	46.05

^a	Securities on loan with values of $34,463,486 and $2,198,450, respectively. See Note 1.

^b	Cost of foreign currency: $128,496 and $ —, respectively.

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

See notes to financial statements.


52		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Brazil Capped ETF			iShares MSCI Chile Capped ETF			iShares MSCI Colombia Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	77,841,500		$	7,735,706		$	409,450
Dividends — affiliated (Note 2)		3,581			1,945			64
Securities lending income — affiliated — net (Note 2)		—			—			31,820

Total investment income		77,845,081			7,737,651			441,334


EXPENSES
Investment advisory fees (Note 2)		16,208,706			1,731,868			97,210
Commitment fees (Note 7)		—			—			95

Total expenses		16,208,706			1,731,868			97,305

Net investment income		61,636,375			6,005,783			344,029


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^b		(256,094,301	)		(31,678,567	)		(5,229,500	)
In-kind redemptions — unaffiliated		—			—			94,669
Foreign currency transactions		(1,201,138	)		(46,460	)		(46,011	)

Net realized loss		(257,295,439	)		(31,725,027	)		(5,180,842	)

Net change in unrealized appreciation/depreciation on:
Investments		1,229,158,005			42,115,052			7,789,592
Translation of assets and liabilities in foreign currencies		1,707,295			(104	)		703

Net change in unrealized appreciation/depreciation		1,230,865,300			42,114,948			7,790,295

Net realized and unrealized gain		973,569,861			10,389,921			2,609,453

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,035,206,236		$	16,395,704		$	2,953,482

^a	Net of foreign withholding tax of $6,483,979, $1,956,410 and $990, respectively.

^b	Net of foreign capital gains taxes of $—, $88,367 and $—, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			53

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Israel Capped ETF			iShares MSCI Russia Capped ETF			iShares MSCI South Africa ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	1,994,976		$	12,169,154		$	9,309,652
Dividends — affiliated (Note 2)		222			1,873			384
Securities lending income — affiliated — net (Note 2)		312,306			—			30,386

Total investment income		2,307,504			12,171,027			9,340,422


EXPENSES
Investment advisory fees (Note 2)		700,713			1,610,412			2,287,159

Total expenses		700,713			1,610,412			2,287,159

Net investment income		1,606,791			10,560,615			7,053,263


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^b		(20,642,770	)		(36,414,589	)		(32,140,892	)
In-kind redemptions — unaffiliated		2,532,261			7,000,459			(14,182,994	)
Foreign currency transactions		18,452			(216,343	)		141,041

Net realized loss		(18,092,057	)		(29,630,473	)		(46,182,845	)

Net change in unrealized appreciation/depreciation on:
Investments^c		16,507,135			57,959,790			2,656,833
Translation of assets and liabilities in foreign currencies		6,293			4,503			(19,747	)

Net change in unrealized appreciation/depreciation		16,513,428			57,964,293			2,637,086

Net realized and unrealized gain (loss)		(1,578,629	)		28,333,820			(43,545,759	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	28,162		$	38,894,435		$	(36,492,496	)

^a	Net of foreign withholding tax of $535,091, $2,145,346 and $1,576,283, respectively.

^b	Net of foreign capital gains taxes of $27,291, $ — and $ —, respectively.

^c	Net of deferred foreign capital gains taxes of $15,813, $ — and $ —, respectively.

See notes to financial statements.


54		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Turkey ETF			iShares MSCI USA Equal Weighted ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	8,878,737		$	933,731
Dividends — affiliated (Note 2)		819			3,973
Securities lending income — affiliated — net (Note 2)		1,723,360			20,952

Total investment income		10,602,916			958,656


EXPENSES
Investment advisory fees (Note 2)		2,183,539			74,046

Total expenses		2,183,539			74,046

Net investment income		8,419,377			884,610


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(17,597,563	)		(919,008	)
Investments — affiliated (Note 2)		—			1,218
In-kind redemptions — unaffiliated		(39,200,001	)		1,016,091
In-kind redemptions — affiliated (Note 2)		—			3,107
Foreign currency transactions		43,828			—

Net realized gain (loss)		(56,753,736	)		101,408

Net change in unrealized appreciation/depreciation on:
Investments		45,100,509			4,112,797
Translation of assets and liabilities in foreign currencies		2,735			—

Net change in unrealized appreciation/depreciation		45,103,244			4,112,797

Net realized and unrealized gain (loss)		(11,650,492	)		4,214,205

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(3,231,115	)	$	5,098,815

^a	Net of foreign withholding tax of $1,394,118 and $248, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			55

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Brazil Capped ETF						iShares MSCI Chile Capped ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	61,636,375		$	101,434,362		$	6,005,783		$	4,543,461
Net realized loss		(257,295,439	)		(723,367,404	)		(31,725,027	)		(29,660,599	)
Net change in unrealized appreciation/depreciation		1,230,865,300			(2,274,062,591	)		42,114,948			(38,551,723	)

Net increase (decrease) in net assets resulting from operations		1,035,206,236			(2,895,995,633	)		16,395,704			(63,668,861	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(44,455,957	)		(96,651,627	)		(6,349,056	)		(4,099,138	)
Return of capital		—			—			(332,847	)		—

Total distributions to shareholders		(44,455,957	)		(96,651,627	)		(6,681,903	)		(4,099,138	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,270,213,076			2,005,630,203			244,807,233			172,176,839
Cost of shares redeemed		(350,468,855	)		(2,473,533,229	)		(161,813,177	)		(222,371,918	)

Net increase (decrease) in net assets from capital share transactions		919,744,221			(467,903,026	)		82,994,056			(50,195,079	)

INCREASE (DECREASE) IN NET ASSETS		1,910,494,500			(3,460,550,286	)		92,707,857			(117,963,078	)

NET ASSETS
Beginning of year		1,989,135,049			5,449,685,335			234,536,375			352,499,453

End of year	$	3,899,629,549		$	1,989,135,049		$	327,244,232		$	234,536,375

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	13,940,149		$	(3,041,915	)	$	(45,076	)	$	433,024


SHARES ISSUED AND REDEEMED
Shares sold		50,800,000			49,050,000			7,000,000			4,200,000
Shares redeemed		(14,950,000	)		(70,200,000	)		(4,850,000	)		(5,550,000	)

Net increase (decrease) in shares outstanding		35,850,000			(21,150,000	)		2,150,000			(1,350,000	)

See notes to financial statements.


56		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Colombia Capped ETF						iShares MSCI Israel Capped ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	344,029		$	444,783		$	1,606,791		$	3,084,931
Net realized gain (loss)		(5,180,842	)		(7,063,182	)		(18,092,057	)		3,551,272
Net change in unrealized appreciation/depreciation		7,790,295			(8,758,897	)		16,513,428			(10,073,032	)

Net increase (decrease) in net assets resulting from operations		2,953,482			(15,377,296	)		28,162			(3,436,829	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(224,626	)		(438,777	)		(2,029,827	)		(2,707,351	)
Return of capital		—			(7,256	)		—			—

Total distributions to shareholders		(224,626	)		(446,033	)		(2,029,827	)		(2,707,351	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		6,132,574			11,677,734			117,163,288			155,183,874
Cost of shares redeemed		(5,975,872	)		(6,999,421	)		(147,653,928	)		(144,400,134	)

Net increase (decrease) in net assets from capital share transactions		156,702			4,678,313			(30,490,640	)		10,783,740

INCREASE (DECREASE) IN NET ASSETS		2,885,558			(11,145,016	)		(32,492,305	)		4,639,560

NET ASSETS
Beginning of year		14,250,656			25,395,672			126,284,868			121,645,308

End of year	$	17,136,214		$	14,250,656		$	93,792,563		$	126,284,868

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(11,506	)	$	(84,898	)	$	5,368		$	396,916


SHARES ISSUED AND REDEEMED
Shares sold		550,000			750,000			2,400,000			2,900,000
Shares redeemed		(450,000	)		(450,000	)		(3,000,000	)		(2,800,000	)

Net increase (decrease) in shares outstanding		100,000			300,000			(600,000	)		100,000

See notes to financial statements.


FINANCIAL STATEMENTS			57

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Russia Capped ETF						iShares MSCI South Africa ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	10,560,615		$	8,597,464		$	7,053,263		$	8,757,656
Net realized loss		(29,630,473	)		(29,489,877	)		(46,182,845	)		(1,560,353	)
Net change in unrealized appreciation/depreciation		57,964,293			(57,254,526	)		2,637,086			(101,934,812	)

Net increase (decrease) in net assets resulting from operations		38,894,435			(78,146,939	)		(36,492,496	)		(94,737,509	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(7,677,207	)		(10,822,184	)		(15,854,819	)		(9,092,367	)

Total distributions to shareholders		(7,677,207	)		(10,822,184	)		(15,854,819	)		(9,092,367	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		139,225,914			110,271,226			340,977,105			193,254,026
Cost of shares redeemed		(61,726,895	)		(100,165,085	)		(255,533,050	)		(303,473,517	)

Net increase (decrease) in net assets from capital share transactions		77,499,019			10,106,141			85,444,055			(110,219,491	)

INCREASE (DECREASE) IN NET ASSETS		108,716,247			(78,862,982	)		33,096,740			(214,049,367	)

NET ASSETS
Beginning of year		210,912,305			289,775,287			373,346,271			587,395,638

End of year	$	319,628,552		$	210,912,305		$	406,443,011		$	373,346,271

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	7,695,156		$	5,010,420		$	(6,378,230	)	$	301,134


SHARES ISSUED AND REDEEMED
Shares sold		10,750,000			8,450,000			6,500,000			2,900,000
Shares redeemed		(4,700,000	)		(7,400,000	)		(5,300,000	)		(4,700,000	)

Net increase (decrease) in shares outstanding		6,050,000			1,050,000			1,200,000			(1,800,000	)

See notes to financial statements.


58		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Turkey ETF						iShares MSCI USA Equal Weighted ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	8,419,377		$	10,937,802		$	884,610		$	960,400
Net realized gain (loss)		(56,753,736	)		(25,265,900	)		101,408			3,191,069
Net change in unrealized appreciation/depreciation		45,103,244			(161,936,105	)		4,112,797			(3,583,310	)

Net increase (decrease) in net assets resulting from operations		(3,231,115	)		(176,264,203	)		5,098,815			568,159


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(8,065,957	)		(10,891,320	)		(944,600	)		(949,728	)

Total distributions to shareholders		(8,065,957	)		(10,891,320	)		(944,600	)		(949,728	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		189,059,577			224,563,809			39,301,537			32,136,610
Cost of shares redeemed		(180,762,552	)		(181,550,574	)		(14,414,232	)		(34,514,668	)

Net increase (decrease) in net assets from capital share transactions		8,297,025			43,013,235			24,887,305			(2,378,058	)

INCREASE (DECREASE) IN NET ASSETS		(3,000,047	)		(144,142,288	)		29,041,520			(2,759,627	)

NET ASSETS
Beginning of year		371,224,548			515,366,836			44,631,865			47,391,492

End of year	$	368,224,501		$	371,224,548		$	73,673,385		$	44,631,865

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	173,958		$	(229,909	)	$	163,769		$	144,655


SHARES ISSUED AND REDEEMED
Shares sold		4,600,000			4,150,000			900,000			750,000
Shares redeemed		(4,650,000	)		(3,700,000	)		(350,000	)		(800,000	)

Net increase (decrease) in shares outstanding		(50,000	)		450,000			550,000			(50,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			59

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Brazil Capped ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	24.71		$	53.61		$	42.52		$	52.61		$	65.00

Income from investment operations:
Net investment income^a		0.63			1.00			1.56			1.59			1.73
Net realized and unrealized gain (loss)^b		8.62			(28.87	)		11.08			(10.32	)		(12.64	)

Total from investment operations		9.25			(27.87	)		12.64			(8.73	)		(10.91	)

Less distributions from:
Net investment income		(0.44	)		(1.03	)		(1.55	)		(1.36	)		(0.56	)
Return of capital		—			—			—			—			(0.92	)

Total distributions		(0.44	)		(1.03	)		(1.55	)		(1.36	)		(1.48	)

Net asset value, end of year	$	33.52		$	24.71		$	53.61		$	42.52		$	52.61


Total return		38.22	%		(52.49	)%		30.33	%		(16.85	)%		(16.79	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,899,630		$	1,989,135		$	5,449,685		$	4,983,630		$	7,370,617
Ratio of expenses to average net assets		0.63	%		0.62	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		2.41	%		2.73	%		3.37	%		3.02	%		2.92	%
Portfolio turnover rate^c		18	%		63	%		54	%		56	%		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.

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 cash transactions, the portfolio turnover rates for the years ended August 31, 2016, August 31, 2015, August 31, 2014, August 31, 2013 and August 31, 2012 were 4%, 48%, 11%, 20% and 6%, respectively. See Note 4.

See notes to financial statements.


60		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Chile Capped ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	34.75		$	43.52		$	47.70		$	60.31		$	67.11

Income from investment operations:
Net investment income^a		0.78			0.66			0.69			0.68			0.97
Net realized and unrealized gain (loss)^b		2.03			(8.81	)		(4.18	)		(12.58	)		(6.80	)

Total from investment operations		2.81			(8.15	)		(3.49	)		(11.90	)		(5.83	)

Less distributions from:
Net investment income		(0.75	)		(0.62	)		(0.69	)		(0.68	)		(0.92	)
Return of capital		(0.04	)		—			—			(0.03	)		(0.05	)

Total distributions		(0.79	)		(0.62	)		(0.69	)		(0.71	)		(0.97	)

Net asset value, end of year	$	36.77		$	34.75		$	43.52		$	47.70		$	60.31


Total return		8.17	%		(18.85	)%		(7.40	)%		(19.87	)%		(8.68	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	327,244		$	234,536		$	352,499		$	364,890		$	548,797
Ratio of expenses to average net assets		0.64	%		0.62	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		2.20	%		1.64	%		1.49	%		1.12	%		1.55	%
Portfolio turnover rate^c		73	%		71	%		91	%		34	%		48	%

^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			61

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Colombia Capped ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Period from Jun. 18, 2013^a to Aug. 31, 2013
Net asset value, beginning of period	$	11.88		$	28.22		$	25.98		$	25.28

Income from investment operations:
Net investment income^b		0.25			0.46	^c		0.67			0.03
Net realized and unrealized gain (loss)^d		1.23			(16.34	)		2.24			0.67

Total from investment operations		1.48			(15.88	)		2.91			0.70

Less distributions from:
Net investment income		(0.18	)		(0.45	)		(0.63	)		—
Net realized gain		—			—			(0.03	)		—
Return of capital		—			(0.01	)		(0.01	)		—

Total distributions		(0.18	)		(0.46	)		(0.67	)		—

Net asset value, end of period	$	13.18		$	11.88		$	28.22		$	25.98


Total return		12.49	%		(56.73	)%		11.44	%		2.77	%^e


Ratios/Supplemental data:
Net assets, end of period (000s)	$	17,136		$	14,251		$	25,396		$	18,188
Ratio of expenses to average net assets^f		0.61	%		0.61	%		0.61	%		0.61	%
Ratio of net investment income to average net assets^f		2.16	%		2.60	%^c		2.54	%		0.61	%
Portfolio turnover rate^g		68	%		86	%		34	%		2	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

^c	Includes a distribution from Ecopetrol SA. Excluding such distribution, the net investment income would have been $0.33 per share and 1.87% of average net assets.

^d	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.

^e	Not annualized.

^f	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 cash transactions, the portfolio turnover rates for the years ended August 31, 2016, August 31, 2015, August 31, 2014 and for the period ended August 31, 2013 were 32%, 49%, 33% and 2%, respectively. See Note 4.

See notes to financial statements.


62		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Israel Capped ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	50.51		$	50.69		$	42.85		$	37.25		$	45.89

Income from investment operations:
Net investment income^a		0.71			1.23			0.87			0.95			1.12
Net realized and unrealized gain (loss)^b		(0.87	)		(0.34	)		7.95			5.68			(8.66	)

Total from investment operations		(0.16	)		0.89			8.82			6.63			(7.54	)

Less distributions from:
Net investment income		(0.99	)		(1.07	)		(0.98	)		(1.03	)		(1.07	)
Return of capital		—			—			—			—			(0.03	)

Total distributions		(0.99	)		(1.07	)		(0.98	)		(1.03	)		(1.10	)

Net asset value, end of year	$	49.36		$	50.51		$	50.69		$	42.85		$	37.25


Total return		(0.23	)%		1.80	%		20.67	%		17.82	%		(16.52	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	93,793		$	126,285		$	121,645		$	70,710		$	68,912
Ratio of expenses to average net assets		0.64	%		0.62	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		1.46	%		2.45	%		1.74	%		2.20	%		2.75	%
Portfolio turnover rate^c		46	%		14	%		15	%		14	%		20	%

^a	Based on average shares outstanding throughout each period.

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

^c	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 Russia Capped ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	12.52		$	18.34		$	19.84		$	21.15		$	25.13

Income from investment operations:
Net investment income^a		0.53			0.47			0.63			0.62			0.50
Net realized and unrealized gain (loss)^b		1.32			(5.63	)		(2.00	)		(1.35	)		(4.00	)

Total from investment operations		1.85			(5.16	)		(1.37	)		(0.73	)		(3.50	)

Less distributions from:
Net investment income		(0.41	)		(0.66	)		(0.13	)		(0.58	)		(0.48	)

Total distributions		(0.41	)		(0.66	)		(0.13	)		(0.58	)		(0.48	)

Net asset value, end of year	$	13.96		$	12.52		$	18.34		$	19.84		$	21.15


Total return		15.62	%		(27.57	)%		(7.00	)%		(3.40	)%		(13.75	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	319,629		$	210,912		$	289,775		$	310,511		$	147,026
Ratio of expenses to average net assets		0.64	%		0.62	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		4.17	%		3.33	%		3.14	%		2.87	%		2.22	%
Portfolio turnover rate^c		23	%		19	%		15	%		14	%		16	%

^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.


64		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI South Africa ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	57.44		$	70.77		$	58.88		$	64.65		$	69.06

Income from investment operations:
Net investment income^a		1.02			1.28			1.57			1.32			2.10
Net realized and unrealized gain (loss)^b		(3.24	)		(13.24	)		11.86			(5.31	)		(4.41	)

Total from investment operations		(2.22	)		(11.96	)		13.43			(3.99	)		(2.31	)

Less distributions from:
Net investment income		(2.44	)		(1.37	)		(1.54	)		(1.78	)		(2.10	)

Total distributions		(2.44	)		(1.37	)		(1.54	)		(1.78	)		(2.10	)

Net asset value, end of year	$	52.78		$	57.44		$	70.77		$	58.88		$	64.65


Total return		(3.64	)%		(17.07	)%		23.13	%		(6.35	)%		(3.17	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	406,443		$	373,346		$	587,396		$	547,569		$	471,922
Ratio of expenses to average net assets		0.64	%		0.62	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		1.96	%		1.94	%		2.40	%		2.08	%		3.26	%
Portfolio turnover rate^c		12	%		9	%		6	%		5	%		4	%

^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 Turkey ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	38.27		$	55.72		$	49.00		$	56.13		$	47.73

Income from investment operations:
Net investment income^a		0.96			1.13	^b		0.85			1.07			0.86
Net realized and unrealized gain (loss)^c		(0.17	)		(17.49	)		6.75			(7.08	)		8.70

Total from investment operations		0.79			(16.36	)		7.60			(6.01	)		9.56

Less distributions from:
Net investment income		(0.90	)		(1.09	)		(0.88	)		(1.12	)		(1.16	)

Total distributions		(0.90	)		(1.09	)		(0.88	)		(1.12	)		(1.16	)

Net asset value, end of year	$	38.16		$	38.27		$	55.72		$	49.00		$	56.13


Total return		1.98	%		(29.69	)%		15.52	%		(11.05	)%		20.37	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	368,225		$	371,225		$	515,367		$	436,076		$	561,284
Ratio of expenses to average net assets		0.64	%		0.62	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		2.45	%		2.31	%^b		1.64	%		1.67	%		1.75	%
Portfolio turnover rate^d		6	%		6	%		8	%		9	%		9	%

^a	Based on average shares outstanding throughout each period.

^b	Includes a special distribution from Turkcell Iletisim Hizmetleri AS. Excluding such special distribution, the net investment income would have been $0.76 per share and 1.55% 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.


66		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI USA Equal Weighted ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	42.51		$	43.08		$	35.26		$	30.31		$	26.17

Income from investment operations:
Net investment income^a		0.77			0.80			0.71			0.69			0.59
Net realized and unrealized gain (loss)^b		3.63			(0.57	)		8.01			4.96			3.94

Total from investment operations		4.40			0.23			8.72			5.65			4.53

Less distributions from:
Net investment income		(0.86	)		(0.80	)		(0.90	)		(0.70	)		(0.39	)

Total distributions		(0.86	)		(0.80	)		(0.90	)		(0.70	)		(0.39	)

Net asset value, end of year	$	46.05		$	42.51		$	43.08		$	35.26		$	30.31


Total return		10.54	%		0.48	%		24.98	%		18.85	%		17.44	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	73,673		$	44,632		$	47,391		$	179,830		$	145,470
Ratio of expenses to average net assets		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Ratio of net investment income to average net assets		1.79	%		1.82	%		1.82	%		2.10	%		2.04	%
Portfolio turnover rate^c		28	%		39	%		6	%		5	%		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			67

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 Chile Capped		Non-diversified
MSCI Colombia Capped		Non-diversified
MSCI Israel Capped		Non-diversified


iShares ETF	Diversification Classification
MSCI Russia Capped		Non-diversified
MSCI South Africa		Non-diversified
MSCI Turkey		Non-diversified
MSCI USA Equal Weighted		Diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•

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


68		2016 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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION


NOTES TO FINANCIAL STATEMENTS			69

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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


70		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

the Funds with regard to the reinvestment of cash collateral received for securities on loan. The Funds may be exposed to additional risk from reinvesting the cash collateral in money market funds that do not maintain a fixed NAV per share of $1.00.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2016:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount^b
MSCI Israel Capped
Citigroup Global Markets Inc.	$	616,669	$	616,669	$	—
Credit Suisse Securities (USA) LLC		18,480		18,480		—
Deutsche Bank Securities Inc.		5,666,449		5,666,449		—
Goldman Sachs & Co.		886,311		862,536		(23,775	)
Jefferies LLC		5,191		5,191		—
JPMorgan Clearing Corp.		141,068		141,068		—
National Financial Services LLC		1,756,627		1,756,627		—
SG Americas Securities LLC		241,501		241,501		—
UBS Securities LLC		3,297,424		3,297,424		—
Wells Fargo Securities LLC		529,061		529,061		—

	$	13,158,781	$	13,135,006	$	(23,775	)


NOTES TO FINANCIAL STATEMENTS			71

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount^b
MSCI South Africa
Goldman Sachs & Co.	$	3,333,349	$	3,333,349	$	—
Macquarie Capital (USA) Inc.		15,374		15,374		—
Morgan Stanley & Co. LLC		129		129		—

	$	3,348,852	$	3,348,852	$	—

MSCI Turkey
Citigroup Global Markets Inc.	$	641,796	$	641,796	$	—
Credit Suisse Securities (USA) LLC		12,695,942		12,695,942		—
Deutsche Bank Securities Inc.		10,781,285		10,781,285		—
Goldman Sachs & Co.		818,316		818,316		—
JPMorgan Clearing Corp.		887,426		887,426		—
Merrill Lynch, Pierce, Fenner & Smith		221,064		221,064		—
Morgan Stanley & Co. LLC		1,289,225		1,289,225		—
UBS Securities LLC		7,128,432		7,128,432		—

	$	34,463,486	$	34,463,486	$	—

MSCI USA Equal Weighted
Barclays Capital Inc.	$	4,326	$	4,326	$	—
BNP Paribas Prime Brokerage International Ltd.		202,121		202,121		—
Citigroup Global Markets Inc.		526,586		526,586		—
Credit Suisse Securities (USA) LLC		89,814		89,814		—
Deutsche Bank Securities Inc.		40,592		40,592		—
Goldman Sachs & Co.		137,868		137,868		—
HSBC Bank PLC		214,524		214,524		—
Merrill Lynch, Pierce, Fenner & Smith		59,397		59,397		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		337,132		337,132		—
National Financial Services LLC		856		856		—
Nomura Securities International Inc.		80,825		80,825		—
Scotia Capital (USA) Inc.		111,317		111,317		—
State Street Bank & Trust Company		375,417		375,417		—
UBS Securities LLC		17,675		17,675		—

	$	2,198,450	$	2,198,450	$	—

Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty.

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


72		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For its investment advisory services to each of the iShares MSCI Brazil Capped, iShares MSCI Chile Capped, iShares MSCI Israel Capped, iShares MSCI Russia 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 $24 billion^a
	0.48		Over $24 billion, up to and including $32 billion^a
	0.45		Over $32 billion

Breakpoint level was added or amended effective July 1, 2016.

For its investment advisory services to each of the following Funds, 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 Equal Weighted		0.15

Pursuant to a securities lending agreement, the iShares MSCI USA Equal Weighted ETF (the “Group 1 Fund”), retains 71.5% of securities lending income and 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, the iShares MSCI Brazil Capped, iShares MSCI Chile Capped, iShares MSCI Colombia Capped, iShares MSCI Israel Capped, iShares MSCI Russia Capped, iShares MSCI South Africa and iShares MSCI Turkey ETFs (the “Group 2 Funds”), retain 80% of securities lending income and the amount retained can never be less than 70% 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 the calendar year 2013, the Group 1 Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral


NOTES TO FINANCIAL STATEMENTS			73

Notes to Financial Statements (Continued)

iSHARES^®, INC.

investment fees. Each Group 2 Fund will receive for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

For the year ended August 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Colombia Capped	$	7,791
MSCI Israel Capped		79,655
MSCI South Africa		8,668
MSCI Turkey		424,624
MSCI USA Equal Weighted		8,860

For the year ended August 31, 2016, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
MSCI Israel Capped	$	3,540,688	$	10,727,199
MSCI Russia Capped		1,465,601		3,081,574
MSCI South Africa		1,274,230		4,528,449
MSCI USA Equal Weighted		3,076,515		2,768,596

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.


74		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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, 2016 were as follows:


iShares ETF	Purchases		Sales
MSCI Brazil Capped	$	1,384,315,981	$	447,837,069
MSCI Chile Capped		276,927,621		194,238,874
MSCI Colombia Capped		10,895,043		10,700,697
MSCI Israel Capped		49,456,798		49,611,538
MSCI Russia Capped		79,496,409		58,511,590
MSCI South Africa		52,000,241		44,087,636
MSCI Turkey		20,961,877		20,643,708
MSCI USA Equal Weighted		14,691,858		14,234,616

In-kind transactions (see Note 4) for the year ended August 31, 2016 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Colombia Capped	$	339,608	$	288,731
MSCI Israel Capped		116,743,796		147,199,156
MSCI Russia Capped		107,760,082		50,362,092
MSCI South Africa		330,177,189		253,599,870
MSCI Turkey		188,515,375		180,187,909
MSCI USA Equal Weighted		39,113,755		14,381,233

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*PRINCIPAL RISKS*


NOTES TO FINANCIAL STATEMENTS			75

Notes to Financial Statements (Continued)

iSHARES^®, INC.

MARKET RISK

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 a fund, whether directly or indirectly, 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


76		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

transactions only with counterparties that they believe 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.

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 NAV per share. The following permanent differences as of August 31, 2016, attributable to the characterization of corporate actions, 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 Brazil Capped	$	—		$	(198,354	)	$	198,354
MSCI Chile Capped		—			(134,827	)		134,827
MSCI Colombia Capped		92,566			(46,011	)		(46,555	)
MSCI Israel Capped		(3,446,739	)		31,488			3,415,251
MSCI Russia Capped		805,620			(198,672	)		(606,948	)
MSCI South Africa		(31,203,009	)		2,122,192			29,080,817
MSCI Turkey		(48,178,115	)		50,447			48,127,668
MSCI USA Equal Weighted		690,251			79,104			(769,355	)

The tax character of distributions paid during the years ended August 31, 2016 and August 31, 2015 was as follows:


iShares ETF	2016		2015
MSCI Brazil Capped
Ordinary income	$	44,455,957	$	96,651,627


MSCI Chile Capped
Ordinary income	$	6,349,056	$	4,099,138
Return of Capital		332,847		—

	$	6,681,903	$	4,099,138


MSCI Colombia Capped
Ordinary income	$	224,626	$	438,777
Return of Capital		—		7,256

	$	224,626	$	446,033


NOTES TO FINANCIAL STATEMENTS			77

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF	2016		2015
MSCI Israel Capped
Ordinary income	$	2,029,827	$	2,707,351


MSCI Russia Capped
Ordinary income	$	7,677,207	$	10,822,184


MSCI South Africa
Ordinary income	$	15,854,819	$	9,092,367


MSCI Turkey
Ordinary income	$	8,065,957	$	10,891,320


MSCI USA Equal Weighted
Ordinary income	$	944,600	$	949,728

As of August 31, 2016, 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	$	17,354,798	$	(2,050,837,173	)	$	660,687,401		$	(156,733,105	)	$	(1,529,528,079	)
MSCI Chile Capped		—		(150,854,118	)		4,303,417			(17,486,701	)		(164,037,402	)
MSCI Colombia Capped		—		(2,558,346	)		(3,833,580	)		(4,460,289	)		(10,852,215	)
MSCI Israel Capped		434,567		(37,739,720	)		(12,282,572	)		(14,090,513	)		(63,678,238	)
MSCI Russia Capped		7,708,481		(48,854,119	)		(95,750,103	)		(9,447,963	)		(146,343,704	)
MSCI South Africa		160,230		(86,924,515	)		(147,052,970	)		(12,574,085	)		(246,391,340	)
MSCI Turkey		217,096		(54,149,871	)		(212,221,923	)		(10,649,528	)		(276,804,226	)
MSCI USA Equal Weighted		163,769		(1,654,423	)		3,663,789			(455,572	)		1,717,563

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the characterization of corporate actions, 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, 2016, the following 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 Brazil Capped	$	1,852,610,863	$	—	$	198,226,310	$	—	$	2,050,837,173
MSCI Chile Capped		136,278,156		1,886,881		11,712,090		976,991		150,854,118
MSCI Colombia Capped		2,558,346		—		—		—		2,558,346
MSCI Israel Capped		19,023,801		784,479		10,801,191		7,130,249		37,739,720
MSCI Russia Capped		48,854,119		—		—		—		48,854,119
MSCI South Africa		50,591,544		15,339,464		14,856,365		6,137,142		86,924,515
MSCI Turkey		43,587,314		720,636		5,982,737		3,859,184		54,149,871
MSCI USA Equal Weighted		1,654,423		—		—		—		1,654,423

Must be utilized prior to losses subject to expiration.


78		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

7.	*LINE OF CREDIT*

The iShares MSCI Colombia Capped ETF, along with certain other iShares funds, are parties to a $250 million credit agreement with State Street Bank and Trust Company, which expires on October 25, 2017. 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 0.20% 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 (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) 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.

The terms of the credit agreement, as amended by the Board on September 17, 2015, became effective on October 28, 2015. Prior to this date, the maximum borrowing amount was $150 million and the commitment fee was 0.08% per annum on the unused portion of the credit agreement.

The Fund did not borrow under the credit agreement during the year ended August 31, 2016.

8.	*SUBSEQUENT EVENTS*

At the meeting of the Board held on September 28-29, 2016, the Board approved a one-for-two reverse stock split for the iShares MSCI Russia Capped ETF, effective after the close of trading on November 4, 2016. The impact of the stock split will be to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Fund.


NOTES TO FINANCIAL STATEMENTS			79

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 Chile Capped ETF, iShares MSCI Colombia Capped ETF, iShares MSCI Israel Capped ETF, iShares MSCI Russia Capped ETF, iShares MSCI South Africa ETF, iShares MSCI Turkey ETF and iShares MSCI USA Equal Weighted ETF (the “Funds”) at August 31, 2016, 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, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 21, 2016


80		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2016:


iShares ETF	Qualified Dividend Income
MSCI Israel Capped	$	2,225,865
MSCI Russia Capped		12,779,659
MSCI South Africa		17,772,940
MSCI Turkey		9,585,931
MSCI USA Equal Weighted		853,615

For corporate shareholders, the percentage of income dividends paid by the iShares MSCI USA Equal Weighted ETF during the fiscal year ended August 31, 2016 that qualified for the dividends-received deduction was 89.50%.

For the fiscal year ended August 31, 2016, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Brazil Capped	$	84,325,479	$	6,483,321
MSCI Chile Capped		9,692,116		2,027,791
MSCI Colombia Capped		410,440		961
MSCI Israel Capped		2,530,067		549,496


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Russia Capped	$	14,314,500	$	2,138,083
MSCI South Africa		18,170,515		1,572,983
MSCI Turkey		10,272,855		1,393,111


TAX INFORMATION			81

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI Brazil Capped ETF and iShares MSCI Chile Capped ETF

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were within range of the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds.


82		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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, among other things, 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, in a manner more favorable to the Funds, 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.


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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.

II. iShares MSCI Colombia Capped 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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			85

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


86		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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, among other things, 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 that are not otherwise shared, 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.

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			87

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 Israel Capped ETF, iShares MSCI Russia Capped ETF and iShares MSCI Turkey ETF


88		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds, except for iShares Russia Capped ETF, which were within range of the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			89

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 profitability 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, among other things, 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, in a manner more favorable to the Funds, 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.


90		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

IV. iShares MSCI South Africa 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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			91

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


92		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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, among other things, 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, in a manner more favorable to the Fund, 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.


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 certain of the Other Accounts (particularly institutional clients) 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.

V. iShares MSCI USA Equal Weighted 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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


94		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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:

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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


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Contract (Continued)

iSHARES^®, INC.

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 21-23, 2016 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, among other things, 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 that are not otherwise shared, 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.


96		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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			97

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	$	0.440937	$	—	$	—	$	0.440937		100	%		—	%		—	%		100	%
MSCI Chile Capped		0.791385		—		—		0.791385		100			—			—			100
MSCI Israel Capped		0.889169		—		0.102564		0.991733		90			—			10			100
MSCI Russia Capped		0.404848		—		0.007139		0.411987		98			—			2			100
MSCI South Africa		2.441854		—		—		2.441854		100			—			—			100
MSCI USA Equal Weighted		0.852167		—		0.010137		0.862304		99			—			1			100

Premium/Discount Information


98		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Brazil Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		2		0.14
Greater than 2.5% and Less than 3.0%		3		0.22
Greater than 2.0% and Less than 2.5%		14		1.01
Greater than 1.5% and Less than 2.0%		26		1.88
Greater than 1.0% and Less than 1.5%		92		6.65
Greater than 0.5% and Less than 1.0%		197		14.25
Between 0.5% and –0.5%		829		59.95
Less than –0.5% and Greater than –1.0%		155		11.21
Less than –1.0% and Greater than –1.5%		43		3.11
Less than –1.5% and Greater than –2.0%		10		0.72
Less than –2.0% and Greater than –2.5%		8		0.58
Less than –2.5% and Greater than –3.0%		1		0.07
Less than –3.0% and Greater than –3.5%		1		0.07

		1,383		100.00	%

iShares MSCI Chile Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		2		0.14	%
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		1		0.07
Greater than 1.5% and Less than 2.0%		5		0.36
Greater than 1.0% and Less than 1.5%		22		1.59
Greater than 0.5% and Less than 1.0%		121		8.75
Between 0.5% and –0.5%		935		67.61
Less than –0.5% and Greater than –1.0%		241		17.43
Less than –1.0% and Greater than –1.5%		31		2.24
Less than –1.5% and Greater than –2.0%		17		1.23
Less than –2.0% and Greater than –2.5%		4		0.29
Less than –2.5%		3		0.22

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			99

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Columbia Capped ETF

Period Covered: June 18, 2013 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5% and Less than 4.0%		1		0.13	%
Greater than 3.0% and Less than 3.5%		1		0.13
Greater than 2.5% and Less than 3.0%		5		0.65
Greater than 2.0% and Less than 2.5%		12		1.57
Greater than 1.5% and Less than 2.0%		32		4.18
Greater than 1.0% and Less than 1.5%		84		10.97
Greater than 0.5% and Less than 1.0%		189		24.67
Between 0.5% and –0.5%		370		48.30
Less than –0.5% and Greater than –1.0%		49		6.40
Less than –1.0% and Greater than –1.5%		16		2.09
Less than –1.5% and Greater than –2.0%		6		0.78
Less than –2.0% and Greater than –2.5%		1		0.13

		766		100.00	%

iShares MSCI Israel Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		1		0.07	%
Greater than 2.0% and Less than 2.5%		5		0.36
Greater than 1.5% and Less than 2.0%		14		1.01
Greater than 1.0% and Less than 1.5%		48		3.47
Greater than 0.5% and Less than 1.0%		176		12.74
Between 0.5% and –0.5%		841		60.82
Less than –0.5% and Greater than –1.0%		190		13.74
Less than –1.0% and Greater than –1.5%		57		4.12
Less than –1.5% and Greater than –2.0%		31		2.24
Less than –2.0% and Greater than –2.5%		9		0.65
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%		2		0.14
Less than –4.0%		1		0.07

		1,383		100.00	%


100		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Russia Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0%		3		0.22	%
Greater than 4.5% and Less than 5.0%		2		0.14
Greater than 4.0% and Less than 4.5%		4		0.29
Greater than 3.5% and Less than 4.0%		5		0.36
Greater than 3.0% and Less than 3.5%		7		0.51
Greater than 2.5% and Less than 3.0%		13		0.94
Greater than 2.0% and Less than 2.5%		19		1.37
Greater than 1.5% and Less than 2.0%		43		3.11
Greater than 1.0% and Less than 1.5%		93		6.72
Greater than 0.5% and Less than 1.0%		238		17.22
Between 0.5% and –0.5%		639		46.21
Less than –0.5% and Greater than –1.0%		150		10.85
Less than –1.0% and Greater than –1.5%		83		6.00
Less than –1.5% and Greater than –2.0%		43		3.11
Less than –2.0% and Greater than –2.5%		19		1.37
Less than –2.5% and Greater than –3.0%		7		0.51
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%		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
Less than –5.5%		1		0.07

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			101

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI South Africa ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		2		0.14
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 3.5% and Less than 4.0%		4		0.29
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%		13		0.94
Greater than 1.5% and Less than 2.0%		31		2.24
Greater than 1.0% and Less than 1.5%		104		7.52
Greater than 0.5% and Less than 1.0%		248		17.93
Between 0.5% and –0.5%		641		46.35
Less than –0.5% and Greater than –1.0%		185		13.38
Less than –1.0% and Greater than –1.5%		75		5.42
Less than –1.5% and Greater than –2.0%		37		2.68
Less than –2.0% and Greater than –2.5%		21		1.52
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%		2		0.14

		1,383		100.00	%

iShares MSCI Turkey ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		2		0.14
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		11		0.80
Greater than 2.0% and Less than 2.5%		7		0.51
Greater than 1.5% and Less than 2.0%		34		2.46
Greater than 1.0% and Less than 1.5%		67		4.84
Greater than 0.5% and Less than 1.0%		222		16.05
Between 0.5% and –0.5%		725		52.43
Less than –0.5% and Greater than –1.0%		164		11.86
Less than –1.0% and Greater than –1.5%		85		6.15
Less than –1.5% and Greater than –2.0%		29		2.10
Less than –2.0% and Greater than –2.5%		19		1.37
Less than –2.5% and Greater than –3.0%		5		0.36
Less than –3.0% and Greater than –3.5%		3		0.22
Less than –3.5% and Greater than –4.0%		2		0.14
Less than –4.0% and Greater than –4.5%		2		0.14
Less than –4.5% and Greater than –5.0%		1		0.07

		1,383		100.00	%


102		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI USA Equal Weighted ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.0% and Less than 1.5%		3		0.22	%
Greater than 0.5% and Less than 1.0%		7		0.51
Between 0.5% and –0.5%		1,361		98.40
Less than –0.5% and Greater than –1.0%		12		0.87

		1,383		100.00	%

Regulation under the Alternative Investment Fund Managers Directive (“AIFMD” or the “Directive”)

BFA has registered the iShares MSCI Brazil Capped ETF and the iShares MSCI USA Equal Weighted ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden, and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to (a) the staff of BFA; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Funds.


SUPPLEMENTAL INFORMATION			103

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Members of staff and senior management of BFA typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of BFA and across the broader BlackRock group. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Funds according to an objective apportionment methodology which acknowledges the multiple-service nature of BFA. 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 Brazil Capped ETF in respect of BFA’s financial year ending December 31, 2015 is USD 321.23 thousand. This figure is comprised of fixed remuneration of USD 124.93 thousand and variable remuneration of USD 196.3 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Brazil Capped ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 38.18 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 9.25 thousand.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI USA Equal Weighted ETF in respect of BFA’s financial year ending December 31, 2015 is USD 6.95 thousand. This figure is comprised of fixed remuneration of USD 2.7 thousand and variable remuneration of USD 4.25 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI USA Equal Weighted ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 0.83 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.2 thousand.


104		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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.


DIRECTOR AND OFFICER INFORMATION			105

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director During the Past 5 Years
Cecilia H. Herbert (67)	Director (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	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 media company (since 2011).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015).

Jane D. Carlin (60)	Director (since 2015); Risk Committee Chair (since 2016).	Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012).

Charles A. Hurty (72)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); 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 (61)	Director (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (55)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).


106		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c (Continued)

^c	Robert H. Silver served as an Independent Director until March 31, 2016.


DIRECTOR AND OFFICER INFORMATION			107

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^d



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since January 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).

Jack Gee (56)	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).

Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).

Scott Radell (47)	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 (53)	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).

^d	Manish Mehta served as President until October 15, 2016.


108		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			109

Notes:


110		2016 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-804-0816

AUGUST 31, 2016


2016 ANNUAL REPORT

iShares, Inc.

^Ø

iShares Edge MSCI Min Vol Global ETF | ACWV | NYSE Arca

^Ø

iShares MSCI Australia ETF | EWA | NYSE Arca

^Ø

iShares MSCI Canada ETF | EWC | NYSE Arca

^Ø

iShares MSCI Japan ETF | EWJ | NYSE Arca

^Ø

iShares MSCI Mexico Capped ETF | EWW | NYSE Arca

^Ø

iShares MSCI South Korea Capped ETF | EWY | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			18
Shareholder Expenses			18
Schedules of Investments			19
iShares Edge MSCI Min Vol Global ETF			19
iShares MSCI Australia ETF			25
iShares MSCI Canada ETF			28
iShares MSCI Japan ETF			31
iShares MSCI Mexico Capped ETF			38
iShares MSCI South Korea Capped ETF			41
Financial Statements			45
Financial Highlights			52
Notes to Financial Statements			58
Report of Independent Registered Public Accounting Firm			71
Tax Information			72
Board Review and Approval of Investment Advisory Contract			73
Supplemental Information			86
Director and Officer Information			92

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^® EDGE MSCI MIN VOL GLOBAL ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		14.76%		14.97%		14.51%		14.76%		14.97%		14.51%
Since Inception		11.31%		11.30%		11.03%		68.56%		68.51%		66.43%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,105.00	$	1.06	$	1,000.00	$	1,024.10	$	1.02		0.20%

The iShares Edge MSCI Min Vol Global ETF (the “Fund”) (formerly the iShares MSCI All Country World Minimum Volatility ETF) 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, 2016, the total return for the Fund was 14.76%, net of fees, while the total return for the Index was 14.51%.

As represented by the Index, lower-volatility global stocks posted a positive return for the reporting period. The U.S. comprised more than half of the Index on average. The top country weights in the remainder of the Index included Japan, Canada, Switzerland, Taiwan, and China.


6		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

During the reporting period, the Index outperformed and experienced less volatility than the MSCI All Country World Index (ACWI), a broad measure of global equity market performance.

Securities with minimum volatility characteristics tend to outperform the broader market when market volatility is higher, as seen over the past year amidst stalling global growth, geopolitical unrest, and the “Brexit” vote that surprised markets. Against this backdrop, the Index delivered on its objective to reduce volatility, resulting in outperformance of the broad market for global equities over the reporting period.

Within the Index, overweight allocations to Japan and gold mining stocks were the primary contributors to Index outperformance relative to the MSCI ACWI. An underweight allocation to the financials sector also contributed to performance by minimizing Index exposure to large global banks, which suffered from low interest rates.

The U.S., which represented about 58% of the Index on average, was the largest contributor to the Index’s total return for the reporting period. U.S. equity markets performed well amid a continued accommodative monetary policy and relatively strong economic growth compared to many other countries. Canada also contributed significantly to the Index’s return. Canadian equities generally benefited from improving consumer spending, which increased during most of the reporting period and hit an all-time high in the second quarter of 2016. Other countries that contributed to the Index’s performance during the reporting period included Japan, Taiwan, and Hong Kong. There were no significant detractors from the Index’s performance among the countries represented in the Index, although Israel and Thailand slightly hindered the Index’s return. Among sectors, consumer staples contributed the most to the Index’s performance. There were no detractors from the Index’s return at the sector level for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Health Care	16.75	%
Consumer Staples	15.71
Financials**	15.50
Information Technology	10.02
Consumer Discretionary	9.28
Telecommunication Services	9.09
Utilities	8.39
Industrials	8.21
Materials	3.04
Real Estate**	2.34
Energy	1.67

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country		Percentage of Total Investments*


United States	58.09	%
Japan	12.31
Canada	4.18
Switzerland	4.13
Taiwan	3.73
China	3.44
Hong Kong	3.25
United Kingdom	2.66
Singapore	1.02
South Korea	0.96

TOTAL	93.77	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI AUSTRALIA ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		13.36%		12.97%		13.80%		13.36%		12.97%		13.80%
5 Years		1.48%		1.24%		1.85%		7.61%		6.33%		9.62%
10 Years		4.38%		4.36%		4.53%		53.50%		53.18%		55.81%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,189.40	$	2.70	$	1,000.00	$	1,022.70	$	2.49		0.49%


8		2016 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, 2016, the total return for the Fund was 13.36%, net of fees, while the total return for the Index was 13.80%.

As represented by the Index, Australian stocks posted solid gains for the reporting period, outpacing the broad global equity market. One contributing factor to the Index’s performance was the Australian dollar, which appreciated by 6% against the U.S. dollar.

The reporting period was generally characterized by improving economic growth in Australia. The Australian economy grew by 3.3% for the year ended June 30, 2016 (the most recent data available), up from 2.0% for the prior 12 months. Firming commodity prices after several years of severe declines helped boost the Australian economy, as did signs of stabilization in China, which is Australia’s largest trading partner. To support the Australian economy and financial markets, the Reserve Bank of Australia lowered interest rates twice during the reporting period.

From a sector perspective, nine of the ten sectors in the Index posted positive returns for the reporting period. The financials sector, which represented more than half of the Index on average during the reporting period, had the largest positive impact on Index performance. Real estate investment trusts and banks contributed the most to the performance of the financials sector. Other leading sectors included healthcare, which benefited from strong performance in the biotechnology industry, and materials, which was led by the metals and mining industry. Several other sectors made notable contributions to Index performance, including industrials, consumer staples, and consumer discretionary. The only sector to detract from Index performance for the reporting period was energy, reflecting weakness in the price of oil.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	41.48	%
Materials	14.20
Real Estate**	10.02
Consumer Staples	7.80
Health Care	7.10
Industrials	5.91
Energy	4.76
Consumer Discretionary	3.01
Utilities	2.74
Telecommunication Services	2.59
Information Technology	0.39

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Commonwealth Bank of Australia	10.45	%
Westpac Banking Corp.	8.34
Australia & New Zealand Banking Group Ltd.	6.66
National Australia Bank Ltd.	6.13
BHP Billiton Ltd.	5.57
CSL Ltd.	4.20
Wesfarmers Ltd.	4.05
Woolworths Ltd.	2.57
Scentre Group	2.24
Macquarie Group Ltd.	2.10

TOTAL	52.31	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI CANADA ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		7.73%		6.62%		7.88%		7.73%		6.62%		7.88%
5 Years		(1.09)%		(1.07)%		(0.93)%		(5.34)%		(5.23)%		(4.55)%
10 Years		2.23%		2.18%		2.44%		24.68%		24.12%		27.32%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,177.60	$	2.68	$	1,000.00	$	1,022.70	$	2.49		0.49%


10		2016 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, 2016, the total return for the Fund was 7.73%, net of fees, while the total return for the Index was 7.88%.

As represented by the Index, Canadian stocks posted solid gains for the reporting period, performing in line with the broad global equity market. Economic growth in Canada remained muted during the reporting period, reflecting a continued downturn in the country’s energy production. In particular, the Canadian economy contracted in the second quarter of 2016 as wildfires in northern Alberta curtailed oil and natural gas production in the area. It was the largest quarterly contraction for the Canadian economy since the 2008–09 financial crisis.

On the positive side, economic growth in the U.S. — Canada’s largest trading partner — has been generally stronger than many other regions of the world. In addition, the housing market in Canada remained robust during the reporting period, though the sharp increase in housing prices in selected cities has led to concerns about a housing bubble.

From a sector perspective, nine of the ten sectors in the Index posted positive returns for the reporting period. The financials sector, which represented more than 40% of the Index on average during the reporting period, had the largest positive impact on Index performance. Banks and real estate stocks contributed the most to the performance of the financials sector. Other leading sectors included materials, which was led by the metals and mining industry, and energy, which held up despite the downturn in production late in the reporting period. The only sector to decline for the reporting period was healthcare.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	40.72	%
Energy	22.03
Materials	11.40
Industrials	7.55
Consumer Discretionary	5.03
Consumer Staples	5.00
Information Technology	2.58
Telecommunication Services	2.45
Utilities	1.61
Real Estate**	0.83
Health Care	0.80

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Royal Bank of Canada	7.88	%
Toronto-Dominion Bank (The)	7.05
Bank of Nova Scotia (The)	5.45
Canadian National Railway Co.	4.26
Suncor Energy Inc.	3.85
Bank of Montreal	3.63
Enbridge Inc.	3.12
TransCanada Corp.	3.08
Canadian Natural Resources Ltd.	2.90
Canadian Imperial Bank of Commerce/Canada	2.67

TOTAL	43.89	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI JAPAN ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		2.44%		2.87%		2.85%		2.44%		2.87%		2.85%
5 Years		6.20%		6.07%		6.66%		35.09%		34.30%		38.06%
10 Years		0.26%		0.32%		0.72%		2.63%		3.21%		7.43%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,129.50	$	2.62	$	1,000.00	$	1,022.70	$	2.49		0.49%


12		2016 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, 2016, the total return for the Fund was 2.44%, net of fees, while the total return for the Index was 2.85%.

As represented by the Index, Japanese stocks advanced for the reporting period but trailed the broad global equity market. Currency fluctuations had a significant impact on Index performance as the Japanese yen appreciated by 15% against the U.S dollar. In local currency terms, Japanese equities declined for the reporting period.

The Index underperformed the broad global equity market amid continued weakness in the Japanese economy, which grew by just 0.8% for the 12 months ended June 30, 2016 (the most recent data available). Japanese economic growth remained muted despite increased economic stimulus efforts from the Bank of Japan during the reporting period. In addition to maintaining its government bond purchase program, the Bank of Japan introduced negative interest rates in January 2016. The Japanese government also announced plans for a substantial fiscal stimulus package late in the reporting period.

From a sector perspective, seven of the ten sectors in the Index contributed to performance for the reporting period, led by the industrials and telecommunication services sectors. Machinery manufacturers led the advance in the industrials sector, while growing demand in the wireless industry paced the gain in the telecommunication services sector. Other leading contributors to Index performance included the materials and information technology sectors. On the downside, the financials sector detracted the most from Index performance; in particular, banks struggled as negative interest rates constrained profit growth. The other two declining sectors in the Index were utilities and energy.

Special Note: At the meeting of the Board of Directors held on September 28-29, 2016, the Board approved a one-for-four reverse stock split for the Fund, effective after the close of trading on November 4, 2016. The impact of the stock split will be to decrease the number of shares outstanding by a factor of four, while increasing the NAV per share by a factor of four, resulting in no effect on the net assets of the Fund.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Consumer Discretionary	21.18	%
Industrials	19.74
Financials**	13.00
Information Technology	10.53
Consumer Staples	8.01
Health Care	7.87
Telecommunication Services	6.22
Materials	5.93
Real Estate**	4.68
Utilities	2.07
Energy	0.77

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Toyota Motor Corp.	5.51	%
Mitsubishi UFJ Financial Group Inc.	2.39
SoftBank Group Corp.	2.14
KDDI Corp.	1.84
Honda Motor Co. Ltd.	1.72
Sumitomo Mitsui Financial Group Inc.	1.62
Japan Tobacco Inc.	1.48
Mizuho Financial Group Inc.	1.41
Sony Corp.	1.36
NTT DOCOMO Inc.	1.20

TOTAL	20.67	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI MEXICO CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(1.68)%		(1.90)%		(1.40)%		(1.68)%		(1.90)%		(1.40)%
5 Years		(1.21)%		(1.33)%		(1.28)%		(5.91)%		(6.46)%		(6.25)%
10 Years		3.75%		3.74%		3.39%		44.47%		44.41%		39.56%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,048.70	$	2.52	$	1,000.00	$	1,022.70	$	2.49		0.49%


14		2016 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, 2016, the total return for the Fund was -1.68%, net of fees, while the total return for the Index was -1.40%.

As represented by the Index, Mexican stocks declined for the reporting period, trailing the positive performance of the broad global equity market. Currency fluctuations had a significant impact on Index performance as the Mexican peso fell by 13% against the U.S dollar for the reporting period. In local currency terms, the Index posted a positive return for the reporting period.

The Mexican economy slowed during the reporting period, including a contraction in the second quarter of 2016 — the first quarterly contraction in three years. Declining industrial production and reduced energy output were the primary contributing factors to the recent economic weakness. Despite the economic slowdown, the Bank of Mexico raised interest rates three times during the reporting period to support the flagging Mexican peso.

From a sector perspective, just two of the seven sectors in the Index declined for the reporting period — telecommunication services and consumer discretionary, which together represented approximately a quarter of the Index on average during the reporting period. Increased price competition and regulatory challenges weighed on the wireless telecommunication services industry, while media companies and retailers detracted the most in the consumer discretionary sector. On the positive side, the materials and financials sectors contributed the most to Index performance during the reporting period. The metals and mining industry led the advance in the materials sector, while banks contributed the most in the financials sector. The consumer staples, industrials, and healthcare sectors also contributed positively to Index performance for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Consumer Staples	27.18	%
Financials**	15.54
Materials	14.71
Industrials	13.89
Telecommunication Services	10.89
Consumer Discretionary	10.74
Real Estate**	6.37
Health Care	0.68

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


America Movil SAB de CV	9.95	%
Fomento Economico Mexicano SAB de CV	8.73
Grupo Financiero Banorte SAB de CV	6.80
Grupo Televisa SAB	6.72
Wal-Mart de Mexico SAB de CV	5.95
Cemex SAB de CV CPO	5.68
Grupo Mexico SAB de CV Series B	4.53
Fibra Uno Administracion SA de CV	2.98
Grupo Bimbo SAB de CV	2.80
Alfa SAB de CV	2.75

TOTAL	56.89	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

Management’s Discussion of Fund Performance

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		20.92%		20.58%		21.07%		20.92%		20.58%		21.07%
5 Years		1.33%		1.15%		1.94%		6.83%		5.90%		10.07%
10 Years		3.34%		3.28%		3.80%		38.91%		38.11%		45.27%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,223.70	$	3.52	$	1,000.00	$	1,022.00	$	3.20		0.63%


16		2016 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, 2016, the total return for the Fund was 20.92%, net of fees, while the total return for the Index was 21.07%.

As represented by the Index, South Korean stocks posted solid gains for the reporting period and outpaced the broad global equity market. Index performance benefited from currency fluctuations as the South Korean won appreciated by 6% against the U.S dollar for the reporting period.

The Index’s solid return for the reporting period was driven in part by an improving economic environment in South Korea. The South Korean economy grew by 3.3% for the 12 months ended June 30, 2016 (the most recent data available), up from 2.2% for the prior 12 months. Nonetheless, the country’s economic growth rate remained below its long-term historical average, as growth in South Korea’s export-oriented economy has been hit by declining global demand. As a result, the Bank of Korea reduced short-term interest rates in June 2016 — the central bank’s fifth rate cut since mid-2014 — to stimulate economic activity. The improving South Korean economy and more accommodative interest rate policy provided a favorable backdrop for equity market performance.

Every sector in the Index advanced for the reporting period. Information technology, which represented more than a third of the Index on average during the reporting period, contributed the most to Index performance. The hardware, storage, and peripherals industry led the advance in the information technology sector, although the internet software and services industry also contributed meaningfully. Other leading contributors to Index performance included the materials and financials sectors. No single sector detracted from Index performance; however, the industrials and telecommunication services sectors contributed the least during the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Information Technology	34.01	%
Consumer Discretionary	14.49
Financials	13.66
Industrials	11.49
Consumer Staples	9.51
Materials	8.12
Utilities	2.52
Health Care	2.46
Energy	2.43
Telecommunication Services	1.31

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Samsung Electronics Co. Ltd.	21.53	%
NAVER Corp.	3.60
SK Hynix Inc.	3.24
Hyundai Motor Co.	3.05
Hyundai Mobis Co. Ltd.	2.72
Shinhan Financial Group Co. Ltd.	2.67
POSCO	2.48
KB Financial Group Inc.	2.31
Korea Electric Power Corp.	2.29
KT&G Corp.	2.11

TOTAL	46.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			17

About Fund Performance

Shareholder Expenses


18		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.48%

BELGIUM — 0.28%
Proximus SADP		146,540	$	4,476,819
UCB SA		55,372		4,539,568

				9,016,387
CANADA — 4.16%
Agnico Eagle Mines Ltd.		326,453		16,538,494
BCE Inc.		258,451		12,069,123
Fairfax Financial Holdings Ltd.		14,397		8,144,310
First Capital Realty Inc.		176,501		2,985,067
Franco-Nevada Corp.		273,254		19,083,316
Goldcorp Inc.		719,339		10,943,185
Intact Financial Corp.		217,476		15,776,354
RioCan REIT		172,460		3,619,945
Rogers Communications Inc. Class B		87,338		3,738,350
Shaw Communications Inc. Class B		642,550		12,845,613
Silver Wheaton Corp.		457,291		11,585,193
TELUS Corp.		284,776		9,337,345
Thomson Reuters Corp.		226,036		9,356,362

				136,022,657
CHILE — 0.38%
Aguas Andinas SA Series A		4,706,520		2,828,086
Banco de Chile		43,753,864		4,856,957
Empresas COPEC SA		533,602		4,687,253

				12,372,296
CHINA — 3.42%
Agricultural Bank of China Ltd. Class H		7,327,000		3,013,263
ANTA Sports Products Ltd.^a		1,293,000		3,500,564
Beijing Capital International Airport Co. Ltd. Class H		1,796,000		2,025,977
China Construction Bank Corp. Class H		13,050,000		9,757,953
China Huishan Dairy Holdings Co. Ltd.^a		7,758,000		2,980,480
China Medical System Holdings Ltd.^a		1,347,000		2,257,518
China Mobile Ltd.		2,245,000		27,726,948
China Unicom Hong Kong Ltd.		1,724,000		1,953,648
CITIC Ltd.^a		4,310,000		6,789,983
COSCO Pacific Ltd.^a		1,724,000		1,866,968
CSPC Pharmaceutical Group Ltd.		6,034,000		5,857,611


Security	Shares		Value
Guangdong Investment Ltd.		6,034,000	$	9,334,837
Hengan International Group Co. Ltd.^a		862,000		7,295,620
Industrial & Commercial Bank of China Ltd. Class H		3,017,000		1,917,531
Jiangsu Expressway Co. Ltd. Class H		1,796,000		2,523,789
Semiconductor Manufacturing International Corp.^a,b		22,412,000		2,455,951
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		3,592,000		2,324,664
Shenzhou International Group Holdings Ltd.^a		898,000		5,898,488
Sino Biopharmaceutical Ltd.		5,172,000		3,320,535
Sun Art Retail Group Ltd.^a		4,094,500		2,634,036
Zhejiang Expressway Co. Ltd. Class H		2,694,000		3,004,235
Zijin Mining Group Co. Ltd. Class H		10,344,000		3,440,554

				111,881,153
COLOMBIA — 0.06%
Corp. Financiera Colombiana SA		140,016		1,846,782

				1,846,782
CZECH REPUBLIC — 0.05%
Komercni Banka AS		44,567		1,505,834

				1,505,834
DENMARK — 0.14%
William Demant Holding A/S^a,b		222,893		4,649,580

				4,649,580
EGYPT — 0.07%
Commercial International Bank Egypt SAE		386,196		2,126,264

				2,126,264
GERMANY — 0.21%
MAN SE		64,650		6,715,084

				6,715,084
HONG KONG — 3.23%
Cheung Kong Infrastructure Holdings Ltd.		898,000		7,542,424
CLP Holdings Ltd.		2,245,000		23,023,786
Hang Seng Bank Ltd.^a		1,080,500		18,958,462
HK Electric Investments & HK Electric Investments Ltd.^a,c		4,490,000		4,214,033


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2016


Security	Shares		Value
HKT Trust & HKT Ltd.		4,490,000	$	6,193,702
Hong Kong & China Gas Co. Ltd.^a		4,234,046		8,078,626
Link REIT		1,347,000		9,794,153
MTR Corp. Ltd.		2,469,500		13,498,798
Power Assets Holdings Ltd.^a		898,000		8,590,144
Yue Yuen Industrial Holdings Ltd.		1,347,000		5,730,622

				105,624,750
INDIA — 0.25%
Wipro Ltd. ADR^a		785,942		8,110,921

				8,110,921
INDONESIA — 0.88%
Bank Central Asia Tbk PT		11,206,000		12,713,931
Hanjaya Mandala Sampoerna Tbk PT		10,131,500		3,039,832
Kalbe Farma Tbk PT		23,549,400		3,186,670
Telekomunikasi Indonesia Persero Tbk PT		22,017,000		6,987,680
Unilever Indonesia Tbk PT		853,100		2,935,847

				28,863,960
IRELAND — 0.20%
Kerry Group PLC Class A		52,582		4,461,343
Ryanair Holdings PLC ADR		30,432		2,209,667

				6,671,010
ISRAEL — 0.78%
Azrieli Group Ltd.^a		77,431		3,377,378
Bank Hapoalim BM		651,110		3,487,183
Bank Leumi le-Israel BM^b		570,507		2,132,511
Mizrahi Tefahot Bank Ltd.		258,451		3,112,056
Nice Ltd.		56,719		3,866,881
Teva Pharmaceutical Industries Ltd.		184,612		9,355,412

				25,331,421
JAPAN — 12.25%
ABC-Mart Inc.		44,900		2,821,579
Ajinomoto Co. Inc.		172,400		3,655,177
ANA Holdings Inc.		1,796,000		4,884,370
Astellas Pharma Inc.		673,500		10,291,166
Benesse Holdings Inc.		134,700		3,107,209
Canon Inc.		763,300		21,872,879
Chugai Pharmaceutical Co. Ltd.		89,800		2,817,238
Eisai Co. Ltd.		89,800		5,235,114
FamilyMart Co. Ltd.^a		88,000		6,304,249
FUJIFILM Holdings Corp.		89,800		3,374,608


Security	Shares		Value
Japan Airlines Co. Ltd.		224,500	$	6,830,391
Japan Prime Realty Investment Corp.		1,347		5,957,872
Japan Real Estate Investment Corp.		1,347		7,917,784
Japan Retail Fund Investment Corp.		4,041		9,075,500
Kakaku.com Inc.		224,500		3,754,870
Keikyu Corp.		898,000		8,317,146
Kintetsu Group Holdings Co. Ltd.		449,000		1,710,311
Konami Holdings Corp.		89,800		3,173,191
Kyowa Hakko Kirin Co. Ltd.		140,700		1,996,883
Lawson Inc.		134,700		9,454,459
M3 Inc.		86,200		2,579,291
McDonald’s Holdings Co. Japan Ltd.^a		134,700		3,719,275
Miraca Holdings Inc.		89,800		4,258,413
Mitsubishi Tanabe Pharma Corp.		404,100		7,501,059
Nagoya Railroad Co. Ltd.		898,000		4,401,663
Nippon Building Fund Inc.		1,010		6,180,983
Nippon Prologis REIT Inc.		2,694		6,467,059
Nippon Telegraph & Telephone Corp.		359,200		15,786,950
Nissin Foods Holdings Co. Ltd.		89,800		4,983,342
Nitori Holdings Co. Ltd.		95,900		9,725,828
Nomura Real Estate Master Fund Inc.		4,041		6,668,910
Nomura Research Institute Ltd.		192,300		6,506,985
NTT Data Corp.		224,500		11,698,700
NTT DOCOMO Inc.		517,200		13,015,629
Oracle Corp. Japan		44,900		2,613,216
Oriental Land Co. Ltd./Japan		134,700		7,890,437
Otsuka Corp.		89,800		3,806,961
Otsuka Holdings Co. Ltd.		493,900		21,406,233
Park24 Co. Ltd.		134,700		3,939,358
Recruit Holdings Co. Ltd.		449,000		17,081,404
Sankyo Co. Ltd.		89,800		3,116,759
Santen Pharmaceutical Co. Ltd.		646,500		8,137,893
Secom Co. Ltd.		224,500		17,042,336
Shimadzu Corp.		50,000		782,617
Shimamura Co. Ltd.		44,900		5,196,046
Shionogi & Co. Ltd.		44,900		2,005,057
Showa Shell Sekiyu KK		179,600		1,531,466
Suntory Beverage & Food Ltd.		224,500		8,909,678
Taisho Pharmaceutical Holdings Co. Ltd.		44,900		4,115,164


20		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2016


Security	Shares		Value
Takeda Pharmaceutical Co. Ltd.		673,500	$	29,691,690
Tobu Railway Co. Ltd.		1,347,000		6,537,381
Toho Co. Ltd./Tokyo		134,700		3,926,335
TonenGeneral Sekiyu KK		449,000		4,145,550
Toyo Suisan Kaisha Ltd.		134,700		5,515,101
United Urban Investment Corp.		4,741		8,447,492
USS Co. Ltd.		134,700		2,153,950
Yamato Holdings Co. Ltd.		269,400		6,358,970

				400,397,177
MALAYSIA — 0.93%
Axiata Group Bhd^a		3,241,500		4,388,074
Hong Leong Bank Bhd		628,600		2,027,392
IHH Healthcare Bhd		1,349,900		2,176,882
Malayan Banking Bhd^a		2,340,600		4,513,252
Maxis Bhd^a		2,969,200		4,597,849
Petronas Dagangan Bhd		269,400		1,554,422
Public Bank Bhd^a		1,529,560		7,467,708
Telekom Malaysia Bhd		2,116,100		3,569,011

				30,294,590
PHILIPPINES — 0.55%
Aboitiz Equity Ventures Inc.		2,881,720		4,638,459
Bank of the Philippine Islands		1,323,179		2,995,931
BDO Unibank Inc.		3,021,310		7,411,433
Jollibee Foods Corp.		369,050		1,940,492
PLDT Inc.		28,015		1,097,873

				18,084,188
POLAND — 0.05%
Polski Koncern Naftowy ORLEN SA		91,408		1,519,046

				1,519,046
QATAR — 0.31%
Doha Bank QSC		118,921		1,226,327
Qatar National Bank SAQ		201,732		9,030,254

				10,256,581
SINGAPORE — 1.01%
Singapore Airlines Ltd.^a		1,035,600		7,978,721
Singapore Press Holdings Ltd.^a		1,439,500		3,982,034
Singapore Telecommunications Ltd.		6,034,000		17,798,496
StarHub Ltd.^a		1,260,100		3,384,060

				33,143,311
SOUTH KOREA — 0.96%
CJ Korea Express Corp.^a,b		13,792		2,486,271
Dongbu Insurance Co. Ltd.		47,410		2,870,112


Security	Shares		Value
Hyundai Department Store Co. Ltd.		16,378	$	1,843,443
Kangwon Land Inc.		143,523		5,078,011
Kia Motors Corp.		76,287		2,870,170
KT&G Corp.		12,661		1,328,553
NAVER Corp.		1,608		1,218,619
S-1 Corp.		32,756		3,025,891
Samsung Fire & Marine Insurance Co. Ltd.		14,223		3,444,135
Samsung Life Insurance Co. Ltd.		24,567		2,269,418
SK Telecom Co. Ltd.		24,998		4,898,711

				31,333,334
SWITZERLAND — 4.11%
Chocoladefabriken Lindt & Sprungli AG Registered		116		7,991,492
Givaudan SA Registered		898		1,858,057
Kuehne + Nagel International AG Registered		78,011		10,901,135
Nestle SA Registered		440,482		35,102,275
Novartis AG Registered		223,791		17,629,050
Roche Holding AG		81,950		20,000,621
Schindler Holding AG Registered		34,480		6,520,161
Sonova Holding AG Registered		79,735		11,044,663
Swiss Prime Site AG Registered^b		62,146		5,471,100
Swisscom AG Registered		37,497		17,932,767

				134,451,321
TAIWAN — 3.71%
Asia Cement Corp.		4,041,000		3,610,480
Asustek Computer Inc.		898,000		7,598,777
Chang Hwa Commercial Bank Ltd.		8,091,630		4,067,427
Chicony Electronics Co. Ltd.		906,504		2,242,655
Chunghwa Telecom Co. Ltd.		6,735,000		24,197,224
Delta Electronics Inc.		449,000		2,334,820
Far EasTone Telecommunications Co. Ltd.		2,694,000		6,274,298
First Financial Holding Co. Ltd.		16,909,328		8,686,344
Formosa Petrochemical Corp.		1,796,000		5,252,637
Hon Hai Precision Industry Co. Ltd.		2,694,000		7,471,423
Hua Nan Financial Holdings Co. Ltd.		10,998,487		5,667,269
Mega Financial Holding Co. Ltd.		8,980,000		6,112,983
Quanta Computer Inc.		898,000		1,661,260
Synnex Technology International Corp.		2,357,250		2,488,706


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2016


Security	Shares		Value
Taiwan Business Bank^b		7,214,593	$	1,928,105
Taiwan Cooperative Financial Holding Co. Ltd.		13,964,538		6,139,371
Taiwan Mobile Co. Ltd.		3,143,000		11,044,405
Taiwan Semiconductor Manufacturing Co. Ltd.		2,245,000		12,452,372
WPG Holdings Ltd.		1,796,000		2,136,714

				121,367,270
THAILAND — 0.74%
Advanced Info Service PCL NVDR		1,647,500		7,876,854
Bangkok Dusit Medical Services PCL NVDR		4,681,200		3,178,004
BTS Group Holdings PCL NVDR		11,481,400		3,001,738
Bumrungrad Hospital PCL NVDR^a		583,700		2,866,606
CP ALL PCL NVDR		2,116,100		3,805,441
Krung Thai Bank PCL NVDR		6,483,000		3,558,435

				24,287,078
UNITED ARAB EMIRATES — 0.28%
DP World Ltd.		92,306		1,707,661
Emirates Telecommunications Group Co. PJSC		460,632		2,476,786
First Gulf Bank PJSC		565,119		1,800,085
National Bank of Abu Dhabi PJSC		1,222,095		3,034,359

				9,018,891
UNITED KINGDOM — 2.65%
AstraZeneca PLC		39,150		2,517,076
Capita PLC		153,436		2,079,884
Compass Group PLC		480,565		9,075,886
Fresnillo PLC		373,246		7,850,771
GlaxoSmithKline PLC		527,544		11,324,245
Inmarsat PLC		502,546		5,074,600
Kingfisher PLC		1,458,504		7,088,759
Next PLC		49,134		3,555,380
Randgold Resources Ltd.		122,451		11,466,741
Reckitt Benckiser Group PLC		84,045		8,094,819
Royal Mail PLC		802,953		5,405,363
SABMiller PLC		52,151		3,003,928
Sky PLC		351,696		3,910,630
TUI AG		440,051		6,126,436

				86,574,518
UNITED STATES — 57.82%
Abbott Laboratories		426,421		17,918,210
Accenture PLC Class A		30,619		3,521,185


Security	Shares		Value
Adobe Systems Inc.^b		25,860	$	2,645,737
Advance Auto Parts Inc.		10,805		1,700,491
Alleghany Corp.^b		18,384		9,857,501
Allergan PLC^b		7,327		1,718,475
Allstate Corp. (The)		28,345		1,954,671
Altria Group Inc.		317,444		20,979,874
American Capital Agency Corp.		571,168		11,029,254
American Tower Corp.		87,338		9,902,382
American Water Works Co. Inc.		98,268		7,270,849
AmerisourceBergen Corp.		216,129		18,796,739
Annaly Capital Management Inc.		1,777,013		19,031,809
ANSYS Inc.^b		146,109		13,893,505
Arch Capital Group Ltd.^b		219,379		17,756,536
AT&T Inc.		947,769		38,744,797
Automatic Data Processing Inc.		517,200		46,449,732
AutoZone Inc.^b		39,599		29,374,538
AvalonBay Communities Inc.		142,230		24,891,672
Axis Capital Holdings Ltd.		171,538		9,755,366
Baxter International Inc.		202,139		9,445,955
Becton Dickinson and Co.		144,385		25,586,466
Berkshire Hathaway Inc. Class B^b		134,179		20,192,598
Bristol-Myers Squibb Co.		301,269		17,289,828
Broadridge Financial Solutions Inc.		102,147		7,078,787
Campbell Soup Co.		124,559		7,563,222
Cardinal Health Inc.		54,923		4,375,715
CH Robinson Worldwide Inc.		149,474		10,376,485
Charter Communications Inc.^b		7,327		1,884,578
Chipotle Mexican Grill Inc.^a,b		18,438		7,628,354
Church & Dwight Co. Inc.		213,435		21,219,708
Cintas Corp.		109,397		12,855,241
Cisco Systems Inc.		185,959		5,846,551
Clorox Co. (The)		179,644		23,540,550
Coca-Cola Co. (The)		429,707		18,662,175
Colgate-Palmolive Co.		437,034		32,489,108
Comcast Corp. Class A		38,701		2,525,627
Consolidated Edison Inc.		462,894		34,832,773
Costco Wholesale Corp.		40,526		6,568,859
CR Bard Inc.		93,204		20,583,171
Crown Castle International Corp.		103,440		9,803,009
CVS Health Corp.		50,858		4,750,137
Darden Restaurants Inc.		33,762		2,081,090
DaVita HealthCare Partners Inc.^b		161,655		10,447,763
Dollar General Corp.		100,388		7,369,483
Dollar Tree Inc.^b		58,616		4,847,543
Dominion Resources Inc./VA		309,458		22,949,405


22		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2016


Security	Shares		Value
Duke Energy Corp.		310,751	$	24,754,425
eBay Inc.^b		103,560		3,330,490
Ecolab Inc.		25,651		3,156,356
Eli Lilly & Co.		276,271		21,480,070
EMC Corp.		203,528		5,900,277
Equity Residential		124,990		8,108,101
Essex Property Trust Inc.		13,050		2,963,655
Everest Re Group Ltd.		63,632		12,305,156
Eversource Energy		72,043		3,888,161
Expeditors International of Washington Inc.		230,077		11,653,400
Express Scripts Holding Co.^b		124,721		9,067,217
Exxon Mobil Corp.		330,577		28,806,480
F5 Networks Inc.^b		15,947		1,957,175
Federal Realty Investment Trust		102,578		16,309,902
Fidelity National Information Services Inc.		117,232		9,300,015
FNF Group		50,858		1,916,838
Foot Locker Inc.		77,149		5,064,060
Gartner Inc.^b		138,351		12,589,941
General Mills Inc.		737,872		52,256,095
Genuine Parts Co.		36,635		3,766,811
Henry Schein Inc.^b		96,975		15,883,535
Hershey Co. (The)		248,687		24,841,344
Home Depot Inc. (The)		51,720		6,936,686
Hormel Foods Corp.		137,058		5,243,839
Intel Corp.		77,580		2,784,346
International Business Machines Corp.		77,431		12,302,237
JB Hunt Transport Services Inc.		45,914		3,645,112
JM Smucker Co. (The)		82,752		11,733,406
Johnson & Johnson		411,605		49,120,941
Kellogg Co.		337,042		27,708,223
Kimberly-Clark Corp.		128,438		16,447,770
L Brands Inc.		36,635		2,791,953
Laboratory Corp. of America Holdings^b		100,866		13,811,581
Lowe’s Companies Inc.		62,926		4,817,615
Macerich Co. (The)		92,306		7,558,938
Markel Corp.^b		7,327		6,822,243
Marsh & McLennan Companies Inc.		290,063		19,616,961
McCormick & Co. Inc./MD		186,192		18,984,136
McDonald’s Corp.		296,097		34,246,579
McKesson Corp.		46,363		8,559,537
Merck & Co. Inc.		388,762		24,410,366


Security	Shares		Value
Microsoft Corp.		39,652	$	2,278,404
Motorola Solutions Inc.		193,950		14,932,210
Newmont Mining Corp.		208,173		7,960,536
NextEra Energy Inc.		36,007		4,354,687
Nordstrom Inc.		53,013		2,675,036
O’Reilly Automotive Inc.^b		31,032		8,687,408
Occidental Petroleum Corp.		90,941		6,988,816
OGE Energy Corp.		56,892		1,771,048
Oracle Corp.		66,374		2,735,936
Patterson Companies Inc.		137,322		6,316,812
Paychex Inc.		515,045		31,247,780
People’s United Financial Inc.		501,684		8,152,365
PepsiCo Inc.		284,029		30,320,096
Pfizer Inc.		527,544		18,358,531
PG&E Corp.		357,521		22,144,851
Procter & Gamble Co. (The)		461,601		40,302,383
Public Storage		88,685		19,860,119
QUALCOMM Inc.		79,304		5,001,703
Realty Income Corp.^a		99,490		6,539,478
RenaissanceRe Holdings Ltd.		57,768		6,914,830
Republic Services Inc.		397,382		20,075,739
Reynolds American Inc.		59,909		2,969,689
Ross Stores Inc.		58,185		3,621,434
SBA Communications Corp. Class A^b		54,737		6,248,229
SCANA Corp.		37,066		2,618,713
Sherwin-Williams Co. (The)		5,172		1,467,348
Simon Property Group Inc.		19,785		4,263,074
Southern Co. (The)		913,720		46,901,248
Starbucks Corp.		200,846		11,293,571
Stericycle Inc.^b		21,119		1,815,812
Stryker Corp.		122,027		14,113,643
Synopsys Inc.^b		245,239		14,540,220
Sysco Corp.		65,081		3,375,101
Target Corp.		278,857		19,572,973
TJX Companies Inc. (The)		306,872		23,764,168
Travelers Companies Inc. (The)		112,922		13,404,971
UDR Inc.		256,655		9,285,778
United Parcel Service Inc. Class B		157,746		17,229,018
UnitedHealth Group Inc.		86,440		11,760,162
Varian Medical Systems Inc.^b		167,941		16,144,168
Ventas Inc.		111,222		8,082,503
Verizon Communications Inc.		663,309		34,710,960
VF Corp.		31,894		1,979,023
Visa Inc. Class A		133,179		10,774,181


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2016


Security	Shares		Value
VMware Inc. Class A^a,b		72,408	$	5,309,679
Wal-Mart Stores Inc.		274,978		19,644,428
Waste Management Inc.		405,571		25,932,210
Waters Corp.^b		21,161		3,328,837
WEC Energy Group Inc.		322,412		19,306,031
Wells Fargo & Co.		134,041		6,809,283
Welltower Inc.		211,639		16,243,293
WR Berkley Corp.		166,366		9,877,149
Xcel Energy Inc.		448,929		18,567,703

				1,889,402,845

TOTAL COMMON STOCKS
(Cost: $2,911,439,571)				3,250,868,249

PREFERRED STOCKS — 0.06%

COLOMBIA — 0.06%
Grupo Aval Acciones y Valores SA		4,452,979		1,884,428

				1,884,428

TOTAL PREFERRED STOCKS
(Cost: $1,884,552)				1,884,428

SHORT-TERM INVESTMENTS — 2.78%

MONEY MARKET FUNDS — 2.78%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		88,500,685		88,500,685


Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		2,334,558	$	2,334,558

				90,835,243

TOTAL SHORT-TERM INVESTMENTS
(Cost: $90,835,243)				90,835,243

TOTAL INVESTMENTS IN SECURITIES — 102.32%
(Cost: $3,004,159,366)^g				3,343,587,920
Other Assets, Less Liabilities — (2.32)%				(75,899,575	)

NET ASSETS — 100.00%			$	3,267,688,345

ADR — American 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 institutional buyers under Rule 144A of the Securities Act of 1933.

^d	Affiliated money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $3,036,426,937. Net unrealized appreciation was $307,160,983, of which $386,437,288 represented gross unrealized appreciation on securities and $79,276,305 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,250,868,249	$	—	$	—	$	3,250,868,249
Preferred stocks		1,884,428		—		—		1,884,428
Money market funds		90,835,243		—		—		90,835,243

Total	$	3,343,587,920	$	—	$	—	$	3,343,587,920

See notes to financial statements.


24		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 98.92%

AIRLINES — 0.14%
Qantas Airways Ltd.		957,903	$	2,332,516

				2,332,516
BANKS — 32.00%
Australia & New Zealand Banking Group Ltd.		5,436,525		109,908,606
Bank of Queensland Ltd.		710,269		5,631,620
Bendigo & Adelaide Bank Ltd.		860,550		7,101,277
Commonwealth Bank of Australia		3,196,233		172,496,937
National Australia Bank Ltd.		4,929,085		101,279,803
Westpac Banking Corp.		6,215,784		137,621,626

				534,039,869
BEVERAGES — 1.17%
Coca-Cola Amatil Ltd.		1,067,486		7,846,194
Treasury Wine Estates Ltd.		1,375,710		11,610,868

				19,457,062
BIOTECHNOLOGY — 4.15%
CSL Ltd.		852,520		69,260,927

				69,260,927
CAPITAL MARKETS — 3.01%
ASX Ltd.		360,802		13,869,877
Macquarie Group Ltd.		570,763		34,616,837
Platinum Asset Management Ltd.		436,183		1,763,636

				50,250,350
CHEMICALS — 0.87%
Incitec Pivot Ltd.		3,145,051		6,736,442
Orica Ltd.		696,069		7,721,411

				14,457,853
COMMERCIAL SERVICES & SUPPLIES — 1.64%
Brambles Ltd.		2,955,462		27,364,916

				27,364,916
CONSTRUCTION & ENGINEERING — 0.25%
CIMIC Group Ltd.		184,405		4,103,639

				4,103,639

CONSTRUCTION MATERIALS — 1.22%
Boral Ltd.		1,386,101		6,885,800
James Hardie Industries PLC		830,446		13,537,204

				20,423,004
CONTAINERS & PACKAGING — 1.55%
Amcor Ltd./Australia		2,158,225		25,952,233

				25,952,233


Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES — 1.75%
AMP Ltd.		5,511,911	$	21,789,435
Challenger Ltd./Australia		1,064,764		7,354,055

				29,143,490
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.56%
Telstra Corp. Ltd.		7,973,840		31,521,821
TPG Telecom Ltd.		632,687		5,796,297
Vocus Communications Ltd.		939,548		5,430,044

				42,748,162
ELECTRIC UTILITIES — 0.26%
AusNet Services		3,297,967		4,263,171

				4,263,171
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 9.27%
Dexus Property Group		1,803,980		13,178,197
Goodman Group		3,314,072		18,904,350
GPT Group (The)		3,350,867		13,422,779
Mirvac Group		6,899,048		12,029,157
Scentre Group		9,921,668		37,059,462
Stockland		4,457,900		16,249,129
Vicinity Centres		6,270,918		15,599,732
Westfield Corp.		3,678,915		28,257,171

				154,699,977
FOOD & STAPLES RETAILING — 6.56%
Wesfarmers Ltd.		2,098,442		66,931,472
Woolworths Ltd.		2,382,900		42,461,506

				109,392,978
GAS UTILITIES — 0.86%
APA Group		2,076,708		14,421,334

				14,421,334
HEALTH CARE EQUIPMENT & SUPPLIES — 0.68%
Cochlear Ltd.		106,616		11,289,934

				11,289,934
HEALTH CARE PROVIDERS & SERVICES — 2.19%
Healthscope Ltd.		3,234,229		7,437,898
Ramsay Health Care Ltd.		263,629		16,438,883
Sonic Healthcare Ltd.		734,934		12,703,816

				36,580,597
HOTELS, RESTAURANTS & LEISURE — 2.46%
Aristocrat Leisure Ltd.		1,009,328		11,454,267
Crown Resorts Ltd.		678,889		6,699,178
Domino’s Pizza Enterprises Ltd.		114,369		6,505,862
Flight Centre Travel Group Ltd.^a		103,436		2,864,622
Tabcorp Holdings Ltd.		1,550,000		5,789,567


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2016


Security	Shares		Value
Tatts Group Ltd.		2,729,815	$	7,816,570

				41,130,066
INSURANCE — 4.27%
Insurance Australia Group Ltd.		4,531,117		18,933,813
Medibank Pvt Ltd.		5,132,931		10,377,094
QBE Insurance Group Ltd.		2,555,498		19,052,205
Suncorp Group Ltd.		2,397,647		22,902,813

				71,265,925
IT SERVICES — 0.39%
Computershare Ltd.		869,070		6,453,120

				6,453,120
MEDIA — 0.26%
REA Group Ltd.		98,233		4,327,003

				4,327,003
METALS & MINING — 10.40%
Alumina Ltd.		4,563,838		4,561,838
BHP Billiton Ltd.		5,984,626		91,888,976
Fortescue Metals Group Ltd.		2,901,753		10,685,985
Newcrest Mining Ltd.^b		1,428,425		23,821,701
Rio Tinto Ltd.		790,486		28,278,682
South32 Ltd.^b		9,921,753		14,316,857

				173,554,039
MULTI-UTILITIES — 1.59%
AGL Energy Ltd.		1,257,405		17,529,807
DUET Group		4,534,940		8,963,659

				26,493,466
MULTILINE RETAIL — 0.25%
Harvey Norman Holdings Ltd.		1,037,200		4,193,753

				4,193,753
OIL, GAS & CONSUMABLE FUELS — 4.71%
Caltex Australia Ltd.		486,082		12,402,446
Oil Search Ltd.		2,553,557		12,896,530
Origin Energy Ltd.		3,267,527		12,917,039
Santos Ltd.		2,976,722		9,932,973
Woodside Petroleum Ltd.		1,412,905		30,401,313

				78,550,301
PROFESSIONAL SERVICES — 0.44%
Seek Ltd.		609,936		7,366,449

				7,366,449
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.64%
LendLease Group		1,031,056		10,708,985

				10,708,985


Security	Shares		Value
ROAD & RAIL — 0.76%
Aurizon Holdings Ltd.		3,824,313	$	12,617,577

				12,617,577
TRANSPORTATION INFRASTRUCTURE — 2.62%
Sydney Airport		2,036,065		11,139,893
Transurban Group		3,793,185		32,669,815

				43,809,708

TOTAL COMMON STOCKS
(Cost: $1,945,199,873)				1,650,652,404

SHORT-TERM INVESTMENTS — 0.17%

MONEY MARKET FUNDS — 0.17%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		2,407,298		2,407,298
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		532,214		532,214

				2,939,512

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,939,512)				2,939,512

TOTAL INVESTMENTS IN SECURITIES — 99.09%
(Cost: $1,948,139,385)^f				1,653,591,916
Other Assets, Less Liabilities — 0.91%				15,110,415

NET ASSETS — 100.00%			$	1,668,702,331

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

^b	Non-income earning security.

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $2,019,125,044. Net unrealized depreciation was $365,533,128, of which $87,206,313 represented gross unrealized appreciation on securities and $452,739,441 represented gross unrealized depreciation on securities.


26		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2016

Schedule 1 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2016 were as follows:


Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
ASX SPI 200 Index		172		Sep. 2016		Sydney Futures	$	17,327,052	$	17,483,314	$	156,262

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,650,652,404	$	—	$	—	$	1,650,652,404
Money market funds		2,939,512		—		—		2,939,512

Total	$	1,653,591,916	$	—	$	—	$	1,653,591,916

Derivative financial instruments^a:
Assets:
Futures contracts	$	156,262	$	—	$	—	$	156,262

Total	$	156,262	$	—	$	—	$	156,262

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Schedule of Investments

iSHARES^® MSCI CANADA ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.73%

AEROSPACE & DEFENSE — 0.60%
Bombardier Inc. Class B^a		5,093,928	$	8,347,201
CAE Inc.		710,990		10,133,389

				18,480,590
AUTO COMPONENTS — 1.53%
Linamar Corp.		128,369		5,295,019
Magna International Inc. Class A		1,044,399		42,037,050

				47,332,069
BANKS — 27.61%
Bank of Montreal		1,693,807		112,287,895
Bank of Nova Scotia (The)		3,164,953		168,397,065
Canadian Imperial Bank of Commerce/Canada		1,039,033		82,438,425
National Bank of Canada		888,103		31,197,491
Royal Bank of Canada		3,917,249		243,415,503
Toronto-Dominion Bank (The)		4,880,454		217,677,808

				855,414,187
CAPITAL MARKETS — 4.31%
Brookfield Asset Management Inc. Class A		2,273,163		76,664,352
CI Financial Corp.		650,580		12,728,470
IGM Financial Inc.		254,919		7,208,182
Thomson Reuters Corp.		890,697		36,868,834

				133,469,838
CHEMICALS — 2.59%
Agrium Inc.		345,520		33,276,100
Methanex Corp.		236,844		6,875,796
Potash Corp. of Saskatchewan Inc.		2,209,562		40,013,104

				80,165,000
CONSTRUCTION & ENGINEERING — 0.54%
SNC-Lavalin Group Inc.		394,432		16,804,808

				16,804,808
CONTAINERS & PACKAGING — 0.45%
CCL Industries Inc. Class B		73,195		13,960,633

				13,960,633
DIVERSIFIED FINANCIAL SERVICES — 0.77%
Element Financial Corp.		1,018,117		10,592,048
Onex Corp.		219,131		13,376,169

				23,968,217
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.13%
BCE Inc.		388,753		18,153,955
TELUS Corp.		511,624		16,775,324

				34,929,279


Security	Shares		Value
ELECTRIC UTILITIES — 1.06%
Fortis Inc./Canada		745,709	$	23,444,607
Hydro One Ltd.^b		470,522		9,402,909

				32,847,516
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.64%
H&R REIT		366,035		6,505,801
RioCan REIT		419,510		8,805,537
Smart REIT		171,292		4,626,797

				19,938,135
FOOD & STAPLES RETAILING — 4.27%
Alimentation Couche-Tard Inc. Class B		1,105,205		56,968,114
Empire Co. Ltd. Class A		434,489		7,142,965
George Weston Ltd.		134,502		11,573,702
Jean Coutu Group PJC Inc. (The) Class A		217,075		3,211,330
Loblaw Companies Ltd.		590,027		32,085,993
Metro Inc.		623,911		21,179,830

				132,161,934
FOOD PRODUCTS — 0.72%
Saputo Inc.		672,452		22,345,876

				22,345,876
HOTELS, RESTAURANTS & LEISURE — 0.90%
Restaurant Brands International Inc.		582,794		27,792,707

				27,792,707
INSURANCE — 7.92%
Fairfax Financial Holdings Ltd.		60,498		34,223,410
Great-West Lifeco Inc.		784,554		18,728,121
Industrial Alliance Insurance & Financial Services Inc.		269,707		9,607,946
Intact Financial Corp.		345,795		25,084,995
Manulife Financial Corp.		5,194,231		70,824,125
Power Corp. of Canada		982,921		20,766,412
Power Financial Corp.		657,666		15,142,784
Sun Life Financial Inc.		1,612,387		50,852,158

				245,229,951
IT SERVICES — 0.89%
CGI Group Inc. Class A^a		568,916		27,677,229

				27,677,229
MEDIA — 0.70%
Shaw Communications Inc. Class B		1,083,979		21,670,492

				21,670,492


28		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CANADA ETF

August 31, 2016


Security	Shares		Value
METALS & MINING — 8.14%
Agnico Eagle Mines Ltd.		581,712	$	29,470,216
Barrick Gold Corp.		3,072,041		52,189,927
Eldorado Gold Corp.		1,766,062		5,653,337
First Quantum Minerals Ltd.		1,815,855		13,756,792
Franco-Nevada Corp.		469,270		32,772,539
Goldcorp Inc.		2,193,985		33,376,731
Kinross Gold Corp.^a		3,275,695		13,082,308
Silver Wheaton Corp.		1,160,524		29,401,180
Teck Resources Ltd. Class B		1,492,752		24,176,655
Turquoise Hill Resources Ltd.^a		2,652,743		8,168,196
Yamana Gold Inc.		2,496,856		10,105,030

				252,152,911
MULTI-UTILITIES — 0.54%
Atco Ltd./Canada Class I		199,889		7,329,492
Canadian Utilities Ltd. Class A		330,579		9,473,549

				16,803,041
MULTILINE RETAIL — 1.33%
Canadian Tire Corp. Ltd. Class A		183,179		18,754,190
Dollarama Inc.		302,689		22,354,761

				41,108,951
OIL, GAS & CONSUMABLE FUELS — 21.97%
AltaGas Ltd.		428,325		11,079,875
ARC Resources Ltd.		924,837		16,127,640
Cameco Corp.		1,043,552		9,623,855
Canadian Natural Resources Ltd.		2,888,730		89,674,915
Cenovus Energy Inc.		2,195,444		31,708,901
Crescent Point Energy Corp.		1,335,957		20,160,778
Enbridge Inc.		2,444,444		96,358,099
Encana Corp.		2,239,886		21,373,707
Husky Energy Inc.		927,853		11,399,711
Imperial Oil Ltd.		782,145		23,850,937
Inter Pipeline Ltd.		887,590		19,293,523
Keyera Corp.		481,576		14,861,486
Pembina Pipeline Corp.		1,016,470		30,570,410
Peyto Exploration & Development Corp.		432,120		12,413,096
PrairieSky Royalty Ltd.		545,627		10,687,561
Seven Generations Energy Ltd. Class A^a		568,518		13,085,815
Suncor Energy Inc.		4,382,694		118,782,515
Tourmaline Oil Corp.^a		547,363		15,385,654
TransCanada Corp.		2,101,110		95,234,947
Veresen Inc.		809,964		7,975,866
Vermilion Energy Inc.		298,004		10,763,621

				680,412,912


Security	Shares		Value
PAPER & FOREST PRODUCTS — 0.19%
West Fraser Timber Co. Ltd.		177,947	$	5,987,851

				5,987,851
PHARMACEUTICALS — 0.80%
Valeant Pharmaceuticals International Inc.^a,c		853,349		24,773,494

				24,773,494
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.18%
First Capital Realty Inc.		332,907		5,630,278

				5,630,278
ROAD & RAIL — 6.14%
Canadian National Railway Co.		2,050,161		131,677,198
Canadian Pacific Railway Ltd.		382,694		58,583,202

				190,260,400
SOFTWARE — 1.36%
Constellation Software Inc./Canada		50,191		21,888,104
Open Text Corp.		319,057		20,057,026

				41,945,130
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.32%
BlackBerry Ltd.^a,c		1,310,053		9,934,856

				9,934,856
TEXTILES, APPAREL & LUXURY GOODS — 0.56%
Gildan Activewear Inc.		590,864		17,387,492

				17,387,492
TRADING COMPANIES & DISTRIBUTORS — 0.25%
Finning International Inc.		442,859		7,850,997

				7,850,997
WIRELESS TELECOMMUNICATION SERVICES — 1.32%
Rogers Communications Inc. Class B		953,225		40,801,125

				40,801,125

TOTAL COMMON STOCKS
(Cost: $3,630,921,052)				3,089,237,899

SHORT-TERM INVESTMENTS — 0.27%

MONEY MARKET FUNDS — 0.27%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		7,205,616		7,205,616
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		1,204,076		1,204,076

				8,409,692


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI CANADA ETF

August 31, 2016


	Value
TOTAL SHORT-TERM INVESTMENTS
(Cost: $8,409,692)	$	8,409,692

TOTAL INVESTMENTS IN SECURITIES — 100.00%
(Cost: $3,639,330,744)^g		3,097,647,591
Other Assets, Less Liabilities — 0.00%		146,000

NET ASSETS — 100.00%	$	3,097,793,591

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

^d	Affiliated money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $3,685,447,722. Net unrealized depreciation was $587,800,131, of which $175,980,261 represented gross unrealized appreciation on securities and $763,780,392 represented gross unrealized depreciation on securities.

Schedule 1 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2016 were as follows:


Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
S&P/TSX 60 Index		59		Sep. 2016		Montreal	$	7,279,820	$	7,645,425	$	365,605

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,089,237,899	$	—	$	—	$	3,089,237,899
Money market funds		8,409,692		—		—		8,409,692

Total	$	3,097,647,591	$	—	$	—	$	3,097,647,591

Derivative financial instruments^a:
Assets:
Futures contracts	$	365,605	$	—	$	—	$	365,605

Total	$	365,605	$	—	$	—	$	365,605

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

See notes to financial statements.


30		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI JAPAN ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.65%

AIR FREIGHT & LOGISTICS — 0.29%
Yamato Holdings Co. Ltd.		1,714,500	$	40,469,394

				40,469,394
AIRLINES — 0.23%
ANA Holdings Inc.		5,715,000		15,542,413
Japan Airlines Co. Ltd.		571,500		17,387,833

				32,930,246
AUTO COMPONENTS — 3.20%
Aisin Seiki Co. Ltd.		952,500		44,984,411
Bridgestone Corp.		3,098,800		106,503,930
Denso Corp.		2,286,000		94,414,773
Koito Manufacturing Co. Ltd.		571,500		27,211,655
NGK Spark Plug Co. Ltd.		952,500		17,818,799
NHK Spring Co. Ltd.		762,000		7,175,405
NOK Corp.		571,500		11,602,939
Stanley Electric Co. Ltd.		762,000		19,470,837
Sumitomo Electric Industries Ltd.		3,619,500		53,661,751
Sumitomo Rubber Industries Ltd.		762,000		11,300,894
Toyoda Gosei Co. Ltd.		381,000		8,774,032
Toyota Industries Corp.		762,000		36,466,380
Yokohama Rubber Co. Ltd. (The)		571,500		9,287,876

				448,673,682
AUTOMOBILES — 10.09%
Fuji Heavy Industries Ltd.		2,857,500		113,211,534
Honda Motor Co. Ltd.		7,810,500		239,370,474
Isuzu Motors Ltd.		2,857,500		32,888,807
Mazda Motor Corp.		2,667,000		43,975,139
Mitsubishi Motors Corp.		3,238,500		14,809,402
Nissan Motor Co. Ltd.		11,811,000		115,900,469
Suzuki Motor Corp.		1,714,500		56,837,826
Toyota Motor Corp.		12,763,500		769,746,343
Yamaha Motor Co. Ltd.		1,333,500		27,331,367

				1,414,071,361
BANKS — 7.92%
Aozora Bank Ltd.		5,715,000		20,222,265
Bank of Kyoto Ltd. (The)		1,905,000		13,776,188
Chiba Bank Ltd. (The)		3,810,000		22,579,688
Chugoku Bank Ltd. (The)		762,000		9,385,488
Concordia Financial Group Ltd.^a		5,524,500		28,499,765


Security	Shares		Value
Fukuoka Financial Group Inc.		3,810,000	$	16,133,611
Hachijuni Bank Ltd. (The)		1,905,000		10,074,298
Hiroshima Bank Ltd. (The)		1,976,000		8,233,731
Iyo Bank Ltd. (The)		1,143,000		7,370,629
Japan Post Bank Co. Ltd.		1,905,000		22,395,514
Joyo Bank Ltd. (The)		3,810,000		15,139,073
Kyushu Financial Group Inc.		1,714,600		10,161,452
Mitsubishi UFJ Financial Group Inc.		61,150,580		333,494,873
Mizuho Financial Group Inc.		113,538,080		197,252,313
Resona Holdings Inc.		10,477,500		47,933,030
Seven Bank Ltd.		2,667,000		9,437,057
Shinsei Bank Ltd.		8,007,000		12,772,804
Shizuoka Bank Ltd. (The)		2,661,000		21,918,809
Sumitomo Mitsui Financial Group Inc.		6,477,000		226,743,530
Sumitomo Mitsui Trust Holdings Inc.		15,422,320		55,212,308
Suruga Bank Ltd.		762,000		18,130,053
Yamaguchi Financial Group Inc.		322,000		3,399,468

				1,110,265,947
BEVERAGES — 1.07%
Asahi Group Holdings Ltd.		1,905,000		62,361,193
Kirin Holdings Co. Ltd.		4,000,500		65,227,856
Suntory Beverage & Food Ltd.		571,500		22,680,983

				150,270,032
BUILDING PRODUCTS — 1.41%
Asahi Glass Co. Ltd.		5,715,000		36,355,876
Daikin Industries Ltd.		1,143,000		105,962,459
LIXIL Group Corp.		1,333,500		26,905,926
TOTO Ltd.		762,000		28,952,096

				198,176,357
CAPITAL MARKETS — 1.26%
Daiwa Securities Group Inc.		7,620,000		44,525,818
Japan Exchange Group Inc.		2,476,500		38,691,197
Nomura Holdings Inc.		17,335,500		81,670,510
SBI Holdings Inc./Japan		952,510		11,308,380

				176,195,905
CHEMICALS — 4.15%
Air Water Inc.		309,000		5,711,877
Asahi Kasei Corp.		5,745,000		48,454,952
Daicel Corp.		1,333,500		17,004,752
Hitachi Chemical Co. Ltd.		571,500		12,321,216


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2016


Security	Shares		Value
JSR Corp.		952,500	$	13,932,736
Kaneka Corp.		1,905,000		15,525,837
Kansai Paint Co. Ltd.		1,143,000		25,183,903
Kuraray Co. Ltd.		1,714,500		24,498,777
Mitsubishi Chemical Holdings Corp.		6,286,500		39,675,421
Mitsubishi Gas Chemical Co. Inc.		1,905,000		12,892,155
Mitsui Chemicals Inc.		3,838,000		18,367,187
Nippon Paint Holdings Co. Ltd.		762,000		27,294,533
Nitto Denko Corp.		764,400		52,204,008
Shin-Etsu Chemical Co. Ltd.		1,905,000		139,861,459
Sumitomo Chemical Co. Ltd.		7,620,000		34,919,321
Taiyo Nippon Sanso Corp.		571,500		5,801,470
Teijin Ltd.		3,810,000		14,218,205
Toray Industries Inc.		7,620,000		73,404,244

				581,272,053
COMMERCIAL SERVICES & SUPPLIES — 1.03%
Dai Nippon Printing Co. Ltd.		1,905,000		19,375,067
Park24 Co. Ltd.		571,500		16,713,757
Secom Co. Ltd.		952,500		72,306,569
Sohgo Security Services Co. Ltd.		381,000		19,043,554
Toppan Printing Co. Ltd.		1,905,000		16,980,809

				144,419,756
CONSTRUCTION & ENGINEERING — 0.94%
JGC Corp.		952,500		15,111,447
Kajima Corp.		3,869,000		25,996,568
Obayashi Corp.		3,048,000		28,141,731
Shimizu Corp.		2,180,000		19,453,183
Taisei Corp.		5,715,000		42,986,127

				131,689,056
CONSTRUCTION MATERIALS — 0.12%
Taiheiyo Cement Corp.		5,715,000		17,349,156

				17,349,156
CONSUMER FINANCE — 0.23%
Acom Co. Ltd.^a		1,905,000		9,116,595
AEON Financial Service Co. Ltd.		571,570		10,526,812
Credit Saison Co. Ltd.		762,000		13,120,530

				32,763,937
CONTAINERS & PACKAGING — 0.10%
Toyo Seikan Group Holdings Ltd.		762,000		14,129,801

				14,129,801


Security	Shares		Value
DIVERSIFIED CONSUMER SERVICES — 0.06%
Benesse Holdings Inc.		381,000	$	8,788,766

				8,788,766
DIVERSIFIED FINANCIAL SERVICES — 0.72%
Mitsubishi UFJ Lease & Finance Co. Ltd.		2,286,000		10,718,906
ORIX Corp.		6,286,500		90,406,233

				101,125,139
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.04%
Nippon Telegraph & Telephone Corp.		3,305,300		145,268,950

				145,268,950
ELECTRIC UTILITIES — 1.26%
Chubu Electric Power Co. Inc.		3,048,000		41,225,427
Chugoku Electric Power Co. Inc. (The)		1,333,500		16,012,056
Hokuriku Electric Power Co.		762,000		9,105,544
Kansai Electric Power Co. Inc. (The)^a		3,429,000		29,395,217
Kyushu Electric Power Co. Inc.		2,095,500		19,509,513
Shikoku Electric Power Co. Inc.		762,000		7,263,808
Tohoku Electric Power Co. Inc.		2,095,500		26,276,053
Tokyo Electric Power Co. Holdings Inc.^a		6,858,000		27,648,146

				176,435,764
ELECTRICAL EQUIPMENT — 1.77%
Fuji Electric Co. Ltd.		2,069,000		9,441,369
Mabuchi Motor Co. Ltd.		201,700		10,705,593
Mitsubishi Electric Corp.		9,525,000		124,363,247
Nidec Corp.		1,143,000		103,011,998

				247,522,207
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 4.81%
Alps Electric Co. Ltd.		952,500		21,483,855
Hamamatsu Photonics KK		762,000		23,979,407
Hirose Electric Co. Ltd.		190,560		24,465,962
Hitachi High-Technologies Corp.		381,000		14,126,118
Hitachi Ltd.		22,860,000		109,620,148
Keyence Corp.		216,926		152,111,401
Kyocera Corp.		1,524,000		72,431,807
Murata Manufacturing Co. Ltd.		952,500		128,046,720
Nippon Electric Glass Co. Ltd.		1,905,500		9,561,121


32		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2016


Security	Shares		Value
Omron Corp.		952,500	$	32,322,473
Shimadzu Corp.		908,000		14,212,327
TDK Corp.		571,500		40,886,547
Yaskawa Electric Corp.		1,143,000		16,840,837
Yokogawa Electric Corp.		1,143,000		14,641,804

				674,730,527
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.52%
Daiwa House Residential Investment Corp.^b		5,715		16,122,560
Japan Prime Realty Investment Corp.		3,810		16,851,888
Japan Real Estate Investment Corp.		5,715		33,593,271
Japan Retail Fund Investment Corp.		11,440		25,692,580
Nippon Building Fund Inc.		7,620		46,632,764
Nippon Prologis REIT Inc.		7,620		18,292,125
Nomura Real Estate Master Fund Inc.		19,050		31,438,440
United Urban Investment Corp.		13,335		23,760,241

				212,383,869
FOOD & STAPLES RETAILING — 2.01%
Aeon Co. Ltd.		3,048,000		41,917,919
FamilyMart Co. Ltd.^b		381,000		27,294,533
Lawson Inc.		381,000		26,742,012
Seven & I Holdings Co. Ltd.		3,619,580		152,607,806
Sundrug Co. Ltd.		190,500		13,813,023
Tsuruha Holdings Inc.		190,500		18,675,206

				281,050,499
FOOD PRODUCTS — 1.71%
Ajinomoto Co. Inc.		2,667,000		56,544,990
Calbee Inc.		381,000		13,831,440
Kikkoman Corp.		733,000		23,066,805
MEIJI Holdings Co. Ltd.		571,556		51,444,737
NH Foods Ltd.		684,000		14,978,102
Nisshin Seifun Group Inc.		952,575		13,473,362
Nissin Foods Holdings Co. Ltd.		381,000		21,143,133
Toyo Suisan Kaisha Ltd.		381,000		15,599,507
Yakult Honsha Co. Ltd.		381,000		16,815,053
Yamazaki Baking Co. Ltd.		571,500		12,989,767

				239,886,896


Security	Shares		Value
GAS UTILITIES — 0.67%
Osaka Gas Co. Ltd.		9,525,000	$	37,506,961
Toho Gas Co. Ltd.		1,905,000		16,188,862
Tokyo Gas Co. Ltd.		9,525,000		40,840,504

				94,536,327
HEALTH CARE EQUIPMENT & SUPPLIES — 1.73%
CYBERDYNE Inc.^a,b		571,500		9,000,566
Hoya Corp.		1,905,000		73,835,211
Olympus Corp.		1,333,500		43,639,943
Sysmex Corp.		762,000		49,137,526
Terumo Corp.		1,714,500		66,716,899

				242,330,145
HEALTH CARE PROVIDERS & SERVICES — 0.40%
Alfresa Holdings Corp.		762,000		14,225,571
Medipal Holdings Corp.		762,000		12,052,323
Miraca Holdings Inc.		381,000		18,067,434
Suzuken Co. Ltd./Aichi Japan		381,040		11,047,894

				55,393,222
HEALTH CARE TECHNOLOGY — 0.20%
M3 Inc.		952,500		28,500,870

				28,500,870
HOTELS, RESTAURANTS & LEISURE — 0.49%
McDonald’s Holdings Co. Japan Ltd.^b		381,000		10,519,998
Oriental Land Co. Ltd./Japan		991,700		58,091,655

				68,611,653
HOUSEHOLD DURABLES — 3.23%
Casio Computer Co. Ltd.^b		1,143,000		16,144,661
Iida Group Holdings Co. Ltd.		762,080		14,278,639
Nikon Corp.		1,714,500		25,178,378
Panasonic Corp.		10,477,515		107,474,679
Rinnai Corp.		190,500		17,864,843
Sekisui Chemical Co. Ltd.		1,912,000		26,729,366
Sekisui House Ltd.		2,857,500		46,024,991
Sharp Corp./Japan^a,b		7,058,000		9,757,761
Sony Corp.		5,905,500		189,836,975

				453,290,293
HOUSEHOLD PRODUCTS — 0.33%
Unicharm Corp.		1,905,000		46,282,835

				46,282,835
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.13%
Electric Power Development Co. Ltd.		762,000		18,608,904

				18,608,904


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2016


Security	Shares		Value
INDUSTRIAL CONGLOMERATES — 0.61%
Keihan Holdings Co. Ltd.		1,905,000	$	12,358,051
Seibu Holdings Inc.		762,000		12,516,440
Toshiba Corp.^a		19,050,000		60,261,614

				85,136,105
INSURANCE — 2.82%
Dai-ichi Life Insurance Co. Ltd. (The)		5,144,600		71,597,155
Japan Post Holdings Co. Ltd.		2,095,500		27,451,080
MS&AD Insurance Group Holdings Inc.		2,476,540		70,691,588
Sompo Japan Nipponkoa Holdings Inc.		1,714,550		54,966,383
Sony Financial Holdings Inc.		762,000		10,468,429
T&D Holdings Inc.		2,857,500		32,612,547
Tokio Marine Holdings Inc.		3,238,500		127,241,881

				395,029,063
INTERNET & DIRECT MARKETING RETAIL — 0.47%
Rakuten Inc.		4,381,500		55,237,357
Start Today Co. Ltd.		231,600		10,758,815

				65,996,172
INTERNET SOFTWARE & SERVICES — 0.33%
Kakaku.com Inc.		762,000		12,744,816
Mixi Inc.		190,500		6,768,381
Yahoo Japan Corp.		6,667,500		27,202,446

				46,715,643
IT SERVICES — 0.90%
Fujitsu Ltd.		9,525,000		48,363,997
Nomura Research Institute Ltd.		610,640		20,662,638
NTT Data Corp.		571,500		29,780,877
Obic Co. Ltd.		381,000		19,522,405
Otsuka Corp.		190,500		8,076,014

				126,405,931
LEISURE PRODUCTS — 0.90%
Bandai Namco Holdings Inc.		952,598		26,026,412
Sankyo Co. Ltd.		190,500		6,611,834
Sega Sammy Holdings Inc.		952,500		13,011,867
Shimano Inc.		381,000		55,399,430
Yamaha Corp.		762,000		24,716,102

				125,765,645
MACHINERY — 5.35%
Amada Holdings Co. Ltd.		1,524,000		15,942,070
FANUC Corp.		952,500		162,349,060


Security	Shares		Value
Hino Motors Ltd.		1,143,000	$	12,663,779
Hitachi Construction Machinery Co. Ltd.		571,500		10,707,855
Hoshizaki Corp.		201,800		16,134,635
IHI Corp.		7,620,000		23,279,548
JTEKT Corp.		1,143,000		17,769,072
Kawasaki Heavy Industries Ltd.		7,620,000		22,321,845
Komatsu Ltd.		4,381,500		95,796,996
Kubota Corp.		4,953,000		72,641,765
Kurita Water Industries Ltd.		571,500		13,033,968
Makita Corp.		571,500		41,052,303
Minebea Co. Ltd.		1,714,500		17,404,409
Mitsubishi Heavy Industries Ltd.		15,240,000		66,361,444
Nabtesco Corp.		571,500		14,746,783
NGK Insulators Ltd.		1,333,500		28,929,995
NSK Ltd.		2,095,500		21,596,201
SMC Corp./Japan		265,600		74,825,581
Sumitomo Heavy Industries Ltd.		2,168,000		10,647,692
THK Co. Ltd.		572,100		11,211,357

				749,416,358
MARINE — 0.19%
Mitsui OSK Lines Ltd.		5,715,000		13,205,250
Nippon Yusen KK		7,620,000		13,849,857

				27,055,107
MEDIA — 0.57%
Dentsu Inc.		955,900		52,584,435
Hakuhodo DY Holdings Inc.		952,500		10,350,558
Toho Co. Ltd./Tokyo		571,500		16,658,505

				79,593,498
METALS & MINING — 1.43%
Hitachi Metals Ltd.		1,143,000		13,835,124
JFE Holdings Inc.		2,527,250		39,251,966
Kobe Steel Ltd.		15,240,000		14,144,535
Maruichi Steel Tube Ltd.		190,500		6,574,999
Mitsubishi Materials Corp.		5,715,000		16,133,611
Nippon Steel & Sumitomo Metal Corp.		3,820,370		81,109,223
Sumitomo Metal Mining Co. Ltd.		2,297,000		29,135,824

				200,185,282


34		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2016


Security	Shares		Value
MULTILINE RETAIL — 0.65%
Don Quijote Holdings Co. Ltd.		571,500	$	18,675,207
Isetan Mitsukoshi Holdings Ltd.		1,524,060		13,879,872
J Front Retailing Co. Ltd.		1,143,000		12,906,888
Marui Group Co. Ltd.		952,500		11,612,148
Ryohin Keikaku Co. Ltd.		113,600		20,493,798
Takashimaya Co. Ltd.		1,905,000		13,941,944

				91,509,857
OIL, GAS & CONSUMABLE FUELS — 0.77%
Idemitsu Kosan Co. Ltd.		381,000		6,950,713
INPEX Corp.		4,572,000		39,710,782
JX Holdings Inc.		9,906,095		37,053,881
Showa Shell Sekiyu KK		762,000		6,497,646
TonenGeneral Sekiyu KK		1,905,000		17,588,582

				107,801,604
PAPER & FOREST PRODUCTS — 0.11%
Oji Holdings Corp.		3,810,000		15,323,246

				15,323,246
PERSONAL PRODUCTS — 1.39%
Kao Corp.		2,286,000		118,836,197
Kose Corp.		190,500		17,091,314
Pola Orbis Holdings Inc.		190,500		15,212,742
Shiseido Co. Ltd.		1,714,500		43,113,206

				194,253,459
PHARMACEUTICALS — 5.51%
Astellas Pharma Inc.		10,096,550		154,276,572
Chugai Pharmaceutical Co. Ltd.		1,143,000		35,858,607
Daiichi Sankyo Co. Ltd.		2,857,569		65,599,629
Eisai Co. Ltd.		1,159,400		67,590,100
Hisamitsu Pharmaceutical Co. Inc.		208,400		9,328,486
Kyowa Hakko Kirin Co. Ltd.		1,333,500		18,925,683
Mitsubishi Tanabe Pharma Corp.		952,500		17,680,669
Ono Pharmaceutical Co. Ltd.		1,913,900		49,903,691
Otsuka Holdings Co. Ltd.		1,905,000		82,565,041
Santen Pharmaceutical Co. Ltd.		1,714,500		21,581,467
Shionogi & Co. Ltd.		1,524,000		68,055,842
Sumitomo Dainippon Pharma Co. Ltd.		762,000		12,759,549


Security	Shares		Value
Taisho Pharmaceutical Holdings Co. Ltd.		190,500	$	17,459,661
Takeda Pharmaceutical Co. Ltd.		3,429,000		151,169,720

				772,754,717
PROFESSIONAL SERVICES — 0.36%
Recruit Holdings Co. Ltd.		1,333,500		50,730,628

				50,730,628
REAL ESTATE MANAGEMENT & DEVELOPMENT — 3.15%
Aeon Mall Co. Ltd.		571,500		8,044,704
Daito Trust Construction Co. Ltd.		381,000		56,117,707
Daiwa House Industry Co. Ltd.		2,667,000		68,882,781
Hulic Co. Ltd.		1,333,500		12,634,311
Mitsubishi Estate Co. Ltd.		6,021,000		113,917,891
Mitsui Fudosan Co. Ltd.		4,297,000		92,557,800
Nomura Real Estate Holdings Inc.		571,500		9,315,503
NTT Urban Development Corp.		571,500		5,243,423
Sumitomo Realty & Development Co. Ltd.		1,905,000		50,288,611
Tokyo Tatemono Co. Ltd.		952,500		11,188,548
Tokyu Fudosan Holdings Corp.		2,286,000		12,730,082

				440,921,361
ROAD & RAIL — 3.97%
Central Japan Railway Co.		711,800		116,918,664
East Japan Railway Co.		1,598,700		136,940,900
Hankyu Hanshin Holdings Inc.		1,143,000		36,908,397
Keikyu Corp.		1,909,000		17,680,882
Keio Corp.		3,810,000		31,898,874
Keisei Electric Railway Co. Ltd.		958,000		11,521,748
Kintetsu Group Holdings Co. Ltd.		7,887,000		30,042,809
Nagoya Railroad Co. Ltd.		3,810,000		18,675,207
Nippon Express Co. Ltd.		3,810,000		18,049,016
Odakyu Electric Railway Co. Ltd.		2,262,000		23,224,672
Tobu Railway Co. Ltd.		5,715,000		27,736,549
Tokyu Corp.		5,715,000		42,654,614
West Japan Railway Co.		762,000		43,627,051

				555,879,383


SCHEDULES OF INVESTMENTS			35

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2016


Security	Shares		Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.64%
Rohm Co. Ltd.		381,000	$	19,043,554
Tokyo Electron Ltd.		762,052		70,049,697

				89,093,251
SOFTWARE — 1.30%
GungHo Online Entertainment Inc.^b		1,905,000		4,530,671
Konami Holdings Corp.		473,400		16,728,158
Nexon Co. Ltd.		762,000		10,438,962
Nintendo Co. Ltd.		541,300		118,663,678
Oracle Corp. Japan		190,500		11,087,253
Trend Micro Inc./Japan		571,500		20,277,517

				181,726,239
SPECIALTY RETAIL — 1.33%
ABC-Mart Inc.		190,500		11,971,286
Fast Retailing Co. Ltd.		256,300		90,046,329
Hikari Tsushin Inc.		43,400		3,902,161
Nitori Holdings Co. Ltd.		381,000		38,639,629
Shimamura Co. Ltd.		108,100		12,509,856
USS Co. Ltd.		952,500		15,231,160
Yamada Denki Co. Ltd.		3,048,000		14,262,406

				186,562,827
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 2.51%
Brother Industries Ltd.		1,143,000		19,183,526
Canon Inc.		5,143,550		147,391,910
FUJIFILM Holdings Corp.		2,095,500		78,747,122
Konica Minolta Inc.		2,095,500		18,881,481
NEC Corp.		13,321,000		33,870,769
Ricoh Co. Ltd.		3,048,000		27,493,440
Seiko Epson Corp.		1,333,500		25,552,250

				351,120,498
TEXTILES, APPAREL & LUXURY GOODS — 0.11%
ASICS Corp.		762,000		15,448,485

				15,448,485
TOBACCO — 1.47%
Japan Tobacco Inc.		5,334,000		206,687,021

				206,687,021
TRADING COMPANIES & DISTRIBUTORS — 3.33%
ITOCHU Corp.		7,239,000		85,452,884
Marubeni Corp.		7,810,500		38,941,121
Mitsubishi Corp.		7,239,000		150,854,783
Mitsui & Co. Ltd.		8,191,500		109,051,051
Sumitomo Corp.		5,524,500		59,926,418


Security	Shares		Value
Toyota Tsusho Corp.		952,500	$	21,787,741

				466,013,998
TRANSPORTATION INFRASTRUCTURE — 0.20%
Japan Airport Terminal Co. Ltd.^b		190,500		7,514,284
Kamigumi Co. Ltd.		1,905,000		16,501,958
Mitsubishi Logistics Corp.		260,000		4,009,281

				28,025,523
WIRELESS TELECOMMUNICATION SERVICES — 5.16%
KDDI Corp.		8,763,000		257,209,532
NTT DOCOMO Inc.		6,667,500		167,791,391
SoftBank Group Corp.		4,572,000		298,626,500

				723,627,423

TOTAL COMMON STOCKS
(Cost: $15,240,138,759)				13,966,201,873

SHORT-TERM INVESTMENTS — 0.37%

MONEY MARKET FUNDS — 0.37%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		50,929,509		50,929,509
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		1,192,177		1,192,177

				52,121,686

TOTAL SHORT-TERM INVESTMENTS
(Cost: $52,121,686)				52,121,686

TOTAL INVESTMENTS IN SECURITIES — 100.02%
(Cost: $15,292,260,445)^f				14,018,323,559
Other Assets, Less Liabilities — (0.02)%				(3,143,895	)

NET ASSETS — 100.00%			$	14,015,179,664

^a	Non-income earning security.

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

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $15,497,563,488. Net unrealized depreciation was $1,479,239,929, of which $802,415,561 represented gross unrealized appreciation on securities and $2,281,655,490 represented gross unrealized depreciation on securities.


36		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2016

Schedule 1 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2016 were as follows:


Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
TOPIX Index		358		Sep. 2016		Osaka Securities	$	45,381,361	$	46,050,080	$	668,719

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	13,966,201,873	$	—	$	—	$	13,966,201,873
Money market funds		52,121,686		—		—		52,121,686

Total	$	14,018,323,559	$	—	$	—	$	14,018,323,559

Derivative financial instruments^a:
Assets:
Futures contracts	$	668,719	$	—	$	—	$	668,719

Total	$	668,719	$	—	$	—	$	668,719

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			37

Schedule of Investments

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.61%

AIRLINES — 1.46%
Controladora Vuela Cia. de Aviacion SAB de CV Class A^a,b		5,630,400	$	9,978,434
Grupo Aeromexico SAB de CV^a,b		4,627,243		9,267,361

				19,245,795
AUTO COMPONENTS — 0.27%
Rassini SAB de CV		751,499		3,531,523

				3,531,523
BANKS — 12.62%
Banregio Grupo Financiero SAB de CV^b		2,027,500		11,517,866
Grupo Financiero Banorte SAB de CV		16,637,178		89,240,081
Grupo Financiero Inbursa SAB de CV Series O		18,518,492		32,191,138
Grupo Financiero Interacciones SA de CV Series O		1,058,500		5,433,657
Grupo Financiero Santander Mexico SAB de CV Series B		14,660,050		27,876,918

				166,259,660
BEVERAGES — 11.56%
Arca Continental SAB de CV		3,426,929		21,282,148
Coca-Cola Femsa SAB de CV Series L		2,221,047		16,485,333
Fomento Economico Mexicano SAB de CV		12,549,310		114,547,475

				152,314,956
BUILDING PRODUCTS — 0.23%
Elementia SAB de CV^a,b,c		2,445,609		2,975,882
Urbi Desarrollos Urbanos SAB de CV^a,b		29,674,089		16

				2,975,898
CAPITAL MARKETS — 0.54%
Bolsa Mexicana de Valores SAB de CV		3,855,987		7,056,494

				7,056,494
CHEMICALS — 1.51%
Mexichem SAB de CV		8,637,774		19,821,960

				19,821,960
CONSTRUCTION MATERIALS — 5.66%
Cemex SAB de CV CPO^a		90,373,832		74,574,127

				74,574,127


Security	Shares		Value
CONSUMER FINANCE — 2.02%
Credito Real SAB de CV SOFOM ER^b		2,469,774	$	4,827,308
Gentera SAB de CV		8,723,606		16,856,584
Unifin Financiera SAB de CV SOFOM ENR^b		1,685,848		4,918,499

				26,602,391
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.94%
Axtel SAB de CV CPO^a,b		12,615,777		3,383,151
Telesites SAB de CV^a		15,318,246		8,978,857

				12,362,008
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 5.50%
Concentradora Fibra Hotelera Mexicana SA de CV^b		5,560,190		4,137,268
Fibra Shop Portafolios Inmobiliarios SAPI de CV		4,656,294		4,167,992
Fibra Uno Administracion SA de CV		20,254,400		39,030,141
Macquarie Mexico Real Estate Management SA de CV		7,438,400		9,634,687
PLA Administradora Industrial S. de RL de CV^b		5,631,100		9,415,632
Prologis Property Mexico SA de CV		3,677,800		6,135,920

				72,521,640
FOOD & STAPLES RETAILING — 6.89%
Grupo Comercial Chedraui SA de CV		3,259,400		7,842,425
La Comer SAB de CV^a,b		5,358,055		4,861,472
Wal-Mart de Mexico SAB de CV		34,343,333		78,119,423

				90,823,320
FOOD PRODUCTS — 6.41%
Gruma SAB de CV Series B		1,754,030		23,263,121
Grupo Bimbo SAB de CV		12,966,104		36,756,908
Grupo Herdez SAB de CV^b		2,444,244		5,239,863
Grupo Lala SAB de CV		5,466,300		11,411,331
Industrias Bachoco SAB de CV Series B		1,758,000		7,760,123

				84,431,346
HOTELS, RESTAURANTS & LEISURE — 1.53%
Alsea SAB de CV		4,573,366		16,399,282
Hoteles City Express SAB de CV^a		3,860,090		3,713,051

				20,112,333


38		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2016


Security	Shares		Value
HOUSEHOLD DURABLES — 0.47%
Consorcio ARA SAB de CV		10,103,119	$	3,678,486
Corpovael SAB de CV		3,192,675		2,560,062

				6,238,548
HOUSEHOLD PRODUCTS — 2.21%
Kimberly-Clark de Mexico SAB de CV Series A		12,184,054		29,122,270

				29,122,270
INDUSTRIAL CONGLOMERATES — 4.18%
Alfa SAB de CV		22,240,151		36,055,712
Grupo Carso SAB de CV Series A1		4,688,033		19,036,613

				55,092,325
INSURANCE — 0.30%
Qualitas Controladora SAB de CV		2,659,900		3,955,577

				3,955,577
MACHINERY — 0.29%
Grupo Rotoplas SAB de CV^b		2,048,100		3,796,888

				3,796,888
MEDIA — 6.93%
Grupo Televisa SAB		16,208,297		88,159,392
TV Azteca SAB de CV CPO^b		16,992,239		3,106,895

				91,266,287
METALS & MINING — 7.49%
Grupo Mexico SAB de CV Series B		23,833,986		59,443,651
Industrias CH SAB de CV Series B^a,b		1,523,183		6,897,158
Industrias Penoles SAB de CV		1,161,203		26,809,135
Minera Frisco SAB de CV Series A1^a,b		7,177,203		5,534,458

				98,684,402
MULTILINE RETAIL — 1.50%
El Puerto de Liverpool SAB de CV Series C1		1,570,290		17,042,146
Grupo Famsa SAB de CV Series A^a,b		5,158,887		2,690,345

				19,732,491
PHARMACEUTICALS — 0.67%
Genomma Lab Internacional SAB de CV Series B^a,b		7,946,693		8,886,398

				8,886,398


Security	Shares		Value
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.84%
Corp Inmobiliaria Vesta SAB de CV^b		5,038,449	$	7,193,683
Grupo GICSA SA de CV^a		5,590,960		3,852,003

				11,045,686
TRANSPORTATION INFRASTRUCTURE — 7.68%
Grupo Aeroportuario del Centro Norte SAB de CV^b		1,912,492		11,709,848
Grupo Aeroportuario del Pacifico SAB de CV Series B		2,860,749		28,313,740
Grupo Aeroportuario del Sureste SAB de CV Series B		1,674,355		25,445,315
OHL Mexico SAB de CV^a		7,158,100		10,083,461
Promotora y Operadora de Infraestructura SAB de CV		2,145,325		25,681,935

				101,234,299
WIRELESS TELECOMMUNICATION SERVICES — 9.91%
America Movil SAB de CV		218,880,918		130,618,040

				130,618,040

TOTAL COMMON STOCKS
(Cost: $1,750,709,240)				1,312,306,662

SHORT-TERM INVESTMENTS — 1.61%

MONEY MARKET FUNDS — 1.61%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		19,391,449		19,391,449
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		1,875,747		1,875,747

				21,267,196

TOTAL SHORT-TERM INVESTMENTS
(Cost: $21,267,196)				21,267,196


SCHEDULES OF INVESTMENTS			39

Schedule of Investments (Continued)

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 101.22%
(Cost: $1,771,976,436)^g	$	1,333,573,858
Other Assets, Less Liabilities — (1.22)%		(16,055,848	)

NET ASSETS — 100.00%	$	1,317,518,010

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

^d	Affiliated money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $1,830,645,702. Net unrealized depreciation was $497,071,844, of which $9,038,476 represented gross unrealized appreciation on securities and $506,110,320 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,312,306,646	$	—	$	16	$	1,312,306,662
Money market funds		21,267,196		—		—		21,267,196

Total	$	1,333,573,842	$	—	$	16	$	1,333,573,858

See notes to financial statements.


40		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 97.30%

AEROSPACE & DEFENSE — 0.80%
Korea Aerospace Industries Ltd. Class A		363,051	$	27,578,852

				27,578,852
AIR FREIGHT & LOGISTICS — 0.57%
Hyundai Glovis Co. Ltd.		119,252		19,625,778

				19,625,778
AIRLINES — 0.23%
Korean Air Lines Co. Ltd.^a		281,546		7,966,615

				7,966,615
AUTO COMPONENTS — 4.05%
Hankook Tire Co. Ltd.		465,651		23,303,431
Hanon Systems		1,258,676		13,207,631
Hyundai Mobis Co. Ltd.		401,703		93,850,791
Hyundai Wia Corp.		116,668		9,521,783

				139,883,636
AUTOMOBILES — 4.76%
Hyundai Motor Co.		882,073		105,215,882
Kia Motors Corp.		1,569,462		59,048,369

				164,264,251
BANKS — 8.05%
BNK Financial Group Inc.		1,736,236		13,780,887
DGB Financial Group Inc.		1,198,207		9,822,073
Hana Financial Group Inc.		1,779,780		46,769,107
Industrial Bank of Korea		1,629,832		17,175,360
KB Financial Group Inc.		2,285,417		79,733,382
Shinhan Financial Group Co. Ltd.		2,506,061		92,151,122
Woori Bank		1,949,837		18,536,567

				277,968,498
BEVERAGES — 0.19%
Lotte Chilsung Beverage Co. Ltd.		4,837		6,511,513

				6,511,513
BIOTECHNOLOGY — 1.27%
Celltrion Inc.^a,b		456,170		43,694,131

				43,694,131
BUILDING PRODUCTS — 0.41%
KCC Corp.		38,279		14,161,513

				14,161,513


Security	Shares		Value
CAPITAL MARKETS — 1.48%
Korea Investment Holdings Co. Ltd.		273,327	$	9,829,967
Mirae Asset Daewoo Co. Ltd.^b		1,284,053		9,155,355
Mirae Asset Securities Co. Ltd.		512,240		10,819,060
NH Investment & Securities Co. Ltd.		1,010,619		9,154,486
Samsung Securities Co. Ltd.		387,599		12,184,166

				51,143,034
CHEMICALS — 4.05%
Hanwha Chemical Corp.		693,887		15,931,396
Hyosung Corp.^b		137,969		16,333,550
Kumho Petrochemical Co. Ltd.^b		134,277		8,297,476
LG Chem Ltd.		275,571		66,853,772
Lotte Chemical Corp.		96,270		23,139,336
OCI Co. Ltd.^a,b		118,625		9,298,498

				139,854,028
COMMERCIAL SERVICES & SUPPLIES — 0.61%
KEPCO Plant Service & Engineering Co. Ltd.^b		160,770		9,285,729
S-1 Corp.		128,981		11,914,837

				21,200,566
CONSTRUCTION & ENGINEERING — 1.74%
Daelim Industrial Co. Ltd.		184,866		13,446,307
Daewoo Engineering & Construction Co. Ltd.^a,b		1,045,422		5,700,597
GS Engineering & Construction Corp.^a,b		354,822		9,148,998
Hyundai Development Co.- Engineering & Construction		370,996		15,521,940
Hyundai Engineering & Construction Co. Ltd.		469,835		16,244,071

				60,061,913
CONSUMER FINANCE — 0.28%
Samsung Card Co. Ltd.		246,367		9,777,345

				9,777,345
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.60%
KT Corp.		206,382		5,849,032
LG Uplus Corp.		1,408,439		14,715,977

				20,565,009
ELECTRIC UTILITIES — 2.29%
Korea Electric Power Corp.		1,518,164		78,971,760

				78,971,760


SCHEDULES OF INVESTMENTS			41

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2016


Security	Shares		Value
ELECTRICAL EQUIPMENT — 0.25%
Doosan Heavy Industries & Construction Co. Ltd.		347,407	$	8,615,070

				8,615,070
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.82%
LG Display Co. Ltd.		1,409,203		37,978,969
LG Innotek Co. Ltd.		105,341		7,794,289
Samsung Electro-Mechanics Co. Ltd.		358,195		17,090,559
Samsung SDI Co. Ltd.		334,418		34,641,506

				97,505,323
FOOD & STAPLES RETAILING — 1.32%
BGF retail Co. Ltd.^b		66,836		12,138,377
Dongsuh Cos. Inc.		266,840		7,382,972
E-MART Inc.		125,616		17,743,964
GS Retail Co. Ltd.		197,243		8,331,969

				45,597,282
FOOD PRODUCTS — 1.34%
CJ CheilJedang Corp.		50,904		17,782,160
Lotte Confectionery Co. Ltd.		44,474		6,760,846
Orion Corp./Republic of Korea		23,533		15,681,631
Ottogi Corp.		9,749		6,111,705

				46,336,342
GAS UTILITIES — 0.23%
Korea Gas Corp.		206,658		7,867,831

				7,867,831
HOTELS, RESTAURANTS & LEISURE — 0.91%
Kangwon Land Inc.		730,634		25,850,683
Paradise Co. Ltd.^b		381,731		5,734,524

				31,585,207
HOUSEHOLD DURABLES — 1.88%
Coway Co. Ltd.		335,694		25,109,309
Hanssem Co. Ltd.		74,134		9,773,720
LG Electronics Inc.^b		653,211		30,170,733

				65,053,762
INDUSTRIAL CONGLOMERATES — 5.04%
CJ Corp.		94,630		16,210,161
Hanwha Corp.		315,133		10,358,408
LG Corp.		578,667		34,201,036
Samsung C&T Corp.		451,777		61,384,947
SK Holdings Co. Ltd.		273,672		52,034,497

				174,189,049


Security	Shares		Value
INSURANCE — 3.83%
Dongbu Insurance Co. Ltd.		317,394	$	19,214,435
Hanwha Life Insurance Co. Ltd.		1,611,475		8,194,675
Hyundai Marine & Fire Insurance Co. Ltd.		425,305		12,892,654
Samsung Fire & Marine Insurance Co. Ltd.		202,281		48,982,843
Samsung Life Insurance Co. Ltd.		463,973		42,860,286

				132,144,893
INTERNET SOFTWARE & SERVICES — 4.02%
Kakao Corp.^b		200,173		14,595,574
NAVER Corp.		163,813		124,145,278

				138,740,852
IT SERVICES — 0.89%
Samsung SDS Co. Ltd.		213,601		30,651,265

				30,651,265
MACHINERY — 1.18%
Hyundai Heavy Industries Co. Ltd.^a,b		256,417		31,620,931
Samsung Heavy Industries Co. Ltd.^a,b		1,068,709		9,278,119

				40,899,050
MEDIA — 0.47%
Cheil Worldwide Inc.		518,911		7,399,718
CJ E&M Corp.		140,048		8,729,449

				16,129,167
METALS & MINING — 3.80%
Hyundai Steel Co.		502,024		23,097,606
Korea Zinc Co. Ltd.		53,195		22,828,527
POSCO		412,024		85,361,026

				131,287,159
MULTILINE RETAIL — 1.01%
Hyundai Department Store Co. Ltd.		104,407		11,751,640
Lotte Shopping Co. Ltd.		73,544		13,389,625
Shinsegae Inc.		53,776		9,814,723

				34,955,988
OIL, GAS & CONSUMABLE FUELS — 2.43%
GS Holdings Corp.		335,103		14,846,716
S-Oil Corp.		288,682		18,304,769
SK Innovation Co. Ltd.		388,127		50,647,963

				83,799,448


42		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2016


Security	Shares		Value
PERSONAL PRODUCTS — 3.97%
AmorePacific Corp.		191,129	$	66,166,631
AmorePacific Group		175,029		22,761,619
LG Household & Health Care Ltd.		56,314		48,031,044

				136,959,294
PHARMACEUTICALS — 1.19%
Hanmi Pharm Co. Ltd.^b		33,437		17,813,075
Hanmi Science Co. Ltd.		81,949		9,848,579
Yuhan Corp.		51,840		13,413,309

				41,074,963
ROAD & RAIL — 0.26%
CJ Korea Express Corp.^a		49,208		8,870,680

				8,870,680
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 3.24%
SK Hynix Inc.		3,421,971		111,866,227

				111,866,227
SOFTWARE — 0.76%
NCsoft Corp.		108,834		26,354,421

				26,354,421
SPECIALTY RETAIL — 0.39%
Hotel Shilla Co. Ltd.^b		223,118		13,567,175

				13,567,175
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 21.50%
Samsung Electronics Co. Ltd.		510,968		742,392,969

				742,392,969
TOBACCO — 2.10%
KT&G Corp.		691,555		72,566,758

				72,566,758
TRADING COMPANIES & DISTRIBUTORS — 0.38%
Posco Daewoo Corp.		346,753		7,121,654
SK Networks Co. Ltd.		1,039,901		5,903,653

				13,025,307
WIRELESS TELECOMMUNICATION SERVICES — 0.71%
SK Telecom Co. Ltd.		125,749		24,642,293

				24,642,293

TOTAL COMMON STOCKS
(Cost: $1,717,677,521)				3,359,906,217


Security	Shares		Value
PREFERRED STOCKS — 2.57%

AUTOMOBILES — 0.99%
Hyundai Motor Co.		151,054	$	12,978,451
Hyundai Motor Co. Series 2		236,838		21,347,282

				34,325,733
CHEMICALS — 0.26%
LG Chem Ltd.		54,980		8,875,695

				8,875,695
PERSONAL PRODUCTS — 0.59%
AmorePacific Corp.		61,227		12,080,663
LG Household & Health Care Ltd.		15,909		8,118,584

				20,199,247
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.73%
Samsung Electronics Co. Ltd.		21,367		25,372,115

				25,372,115

TOTAL PREFERRED STOCKS
(Cost: $51,604,678)				88,772,790

RIGHTS — 0.00%

INDUSTRIAL CONGLOMERATES — 0.00%
Hanwha Corp.^a		73,648		—

				—

TOTAL RIGHTS
(Cost: $0)				—

SHORT-TERM INVESTMENTS — 3.88%

MONEY MARKET FUNDS — 3.88%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		129,185,165		129,185,165
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		4,717,300		4,717,300

				133,902,465

TOTAL SHORT-TERM INVESTMENTS
(Cost: $133,902,465)				133,902,465


SCHEDULES OF INVESTMENTS			43

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 103.75%
(Cost: $1,903,184,664)^f	$	3,582,581,472
Other Assets, Less Liabilities — (3.75)%		(129,611,284	)

NET ASSETS — 100.00%	$	3,452,970,188

^a	Non-income earning security.

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

^c	Affiliated money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $2,498,105,253. Net unrealized appreciation was $1,084,476,219, of which $1,749,647,521 represented gross unrealized appreciation on securities and $665,171,302 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Common stocks	$	3,359,906,217	$	—		$	—	$	3,359,906,217
Preferred stocks		88,772,790		—			—		88,772,790
Rights		—		0	^a		—		0	^a
Money market funds		133,902,465		—			—		133,902,465

Total	$	3,582,581,472	$	0	^a	$	—	$	3,582,581,472

Rounds to less than $1.

The iShares MSCI South Korea Capped ETF had transfers from Level 2 to Level 1 during the year ended August 31, 2016 in the amount of $34,531,387, resulting from the resumption of trading after a temporary suspension.

See notes to financial statements.


44		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2016


	iShares Edge MSCI Min Vol Global ETF			iShares MSCI Australia ETF			iShares MSCI Canada ETF

ASSETS
Investments, at cost:
Unaffiliated	$	2,913,324,123		$	1,945,199,873		$	3,630,921,052
Affiliated (Note 2)		90,835,243			2,939,512			8,409,692

Total cost of investments	$	3,004,159,366		$	1,948,139,385		$	3,639,330,744

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	3,252,752,677		$	1,650,652,404		$	3,089,237,899
Affiliated (Note 2)		90,835,243			2,939,512			8,409,692

Total fair value of investments		3,343,587,920			1,653,591,916			3,097,647,591
Foreign currency, at value^b		4,569,273			12,664,844			6,261,201
Foreign currency pledged to broker, at value^b		—			741,169			55,203
Receivables:
Investment securities sold		24,977			1,220,874			13,521,199
Dividends and interest		7,886,481			12,041,753			4,197,809
Futures variation margin		—			156,262			365,605
Tax reclaims		1,381,304			—			—

Total Assets		3,357,449,955			1,680,416,818			3,122,048,608


LIABILITIES
Payables:
Investment securities purchased		487,063			8,593,786			15,791,361
Collateral for securities on loan (Note 1)		88,500,685			2,407,298			7,205,616
Foreign taxes (Note 1)		182,769			—			—
Securities related to in-kind transactions (Note 4)		24,977			—			—
Investment advisory fees (Note 2)		566,116			713,403			1,258,040

Total Liabilities		89,761,610			11,714,487			24,255,017


NET ASSETS	$	3,267,688,345		$	1,668,702,331		$	3,097,793,591


Net assets consist of:
Paid-in capital	$	2,995,832,616		$	2,218,813,450		$	4,127,424,948
Undistributed net investment income		16,401,105			11,677,105			4,768,460
Accumulated net realized loss		(83,905,963	)		(267,089,352	)		(492,941,872	)
Net unrealized appreciation (depreciation)		339,360,587			(294,698,872	)		(541,457,945	)

NET ASSETS	$	3,267,688,345		$	1,668,702,331		$	3,097,793,591


Shares outstanding^c		43,100,000			82,200,000			122,300,000


Net asset value per share	$	75.82		$	20.30		$	25.33

^a	Securities on loan with values of $84,045,570, $2,291,038 and $6,580,021, respectively. See Note 1.

^b	Cost of foreign currency including currency pledged to broker: if any: $4,573,576, $13,565,434 and $6,422,555, respectively.

^c	$0.001 par value, number of shares authorized: 500 million, 627.8 million and 340.2 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			45

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Japan ETF			iShares MSCI Mexico Capped ETF			iShares MSCI South Korea Capped ETF

ASSETS
Investments, at cost:
Unaffiliated	$	15,240,138,759		$	1,750,709,240		$	1,769,282,199
Affiliated (Note 2)		52,121,686			21,267,196			133,902,465

Total cost of investments	$	15,292,260,445		$	1,771,976,436		$	1,903,184,664

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	13,966,201,873		$	1,312,306,662		$	3,448,679,007
Affiliated (Note 2)		52,121,686			21,267,196			133,902,465

Total fair value of investments		14,018,323,559			1,333,573,858			3,582,581,472
Foreign currency, at value^b		42,965,019			3,586,695			75
Foreign currency pledged to broker, at value^b		1,976,219			—			—
Receivables:
Investment securities sold		16,957,367			46,507,552			135,128,614
Due from custodian (Note 4)		—			560,403			—
Dividends and interest		20,446,401			438,937			1,170,425
Capital shares sold		399,825			—			11,383,623
Futures variation margin		668,719			—			—
Tax reclaims		195,329			—			—

Total Assets		14,101,932,438			1,384,667,445			3,730,264,209


LIABILITIES
Payables:
Investment securities purchased		30,000,049			47,008,839			146,284,635
Collateral for securities on loan (Note 1)		50,929,509			19,391,449			129,185,165
Capital shares redeemed		—			226,203			—
Foreign taxes (Note 1)		—			—			1,767
Investment advisory fees (Note 2)		5,823,216			522,944			1,822,454

Total Liabilities		86,752,774			67,149,435			277,294,021


NET ASSETS	$	14,015,179,664		$	1,317,518,010		$	3,452,970,188


Net assets consist of:
Paid-in capital	$	16,477,764,467		$	2,030,725,239		$	3,150,569,222
Undistributed (distributions in excess of) net investment income		41,500,905			(3,342,828	)		(111,718,391	)
Accumulated net realized loss		(1,230,622,922	)		(271,221,596	)		(1,264,998,693	)
Net unrealized appreciation (depreciation)		(1,273,462,786	)		(438,642,805	)		1,679,118,050

NET ASSETS	$	14,015,179,664		$	1,317,518,010		$	3,452,970,188


Shares outstanding^c		1,143,000,000			26,100,000			60,700,000


Net asset value per share	$	12.26		$	50.48		$	56.89

^a	Securities on loan with values of $48,250,480, $17,567,116 and $123,330,973, respectively. See Note 1.

^b	Cost of foreign currency including currency pledged to broker: if any: $45,200,166, $3,648,057 and $75, respectively.

^c	$0.001 par value, number of shares authorized: 2.5246 billion, 255 million and 200 million, respectively.

See notes to financial statements.


46		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2016


	iShares Edge MSCI Min Vol Global ETF			iShares MSCI Australia ETF			iShares MSCI Canada ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	69,357,815		$	69,441,901		$	60,851,453
Dividends — affiliated (Note 2)		11,411			2,197			2,828
Interest — unaffiliated		8			519			—
Securities lending income — affiliated — net (Note 2)		575,676			157,133			65,737

		69,944,910			69,601,750			60,920,018
Less: Other foreign taxes (Note 1)		(182,790	)		—			—

Total investment income		69,762,120			69,601,750			60,920,018


EXPENSES
Investment advisory fees (Note 2)		8,421,949			6,860,963			11,048,003

Total expenses		8,421,949			6,860,963			11,048,003
Less investment advisory fees waived (Note 2)		(3,236,389	)		—			—

Net expenses		5,185,560			6,860,963			11,048,003

Net investment income		64,576,560			62,740,787			49,872,015


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(54,696,684	)		(60,541,800	)		(104,863,544	)
In-kind redemptions — unaffiliated		85,379,701			37,627,276			42,803,485
Futures contracts		—			(586,986	)		153,782
Foreign currency transactions		189,724			1,236,047			153,434

Net realized gain (loss)		30,872,741			(22,265,463	)		(61,752,843	)

Net change in unrealized appreciation/depreciation on:
Investments		252,854,812			136,736,563			236,582,911
Futures contracts		—			463,491			505,658
Translation of assets and liabilities in foreign currencies		18,367			29,717			3,804

Net change in unrealized appreciation/depreciation		252,873,179			137,229,771			237,092,373

Net realized and unrealized gain		283,745,920			114,964,308			175,339,530

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	348,322,480		$	177,705,095		$	225,211,545

^a	Net of foreign withholding tax of $3,439,235, $1,551,150 and $10,501,831, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			47

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Japan ETF			iShares MSCI Mexico Capped ETF			iShares MSCI South Korea Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	346,056,818		$	28,068,274		$	48,314,067
Dividends — affiliated (Note 2)		9,016			1,532			13,156
Interest — unaffiliated		—			—			468
Securities lending income — affiliated — net (Note 2)		1,519,660			461,018			7,872,475

		347,585,494			28,530,824			56,200,166
Less: Other foreign taxes (Note 1)		—			—			(2,244	)

Total investment income		347,585,494			28,530,824			56,197,922


EXPENSES
Investment advisory fees (Note 2)		83,098,869			5,958,256			20,701,322

Total expenses		83,098,869			5,958,256			20,701,322

Net investment income		264,486,625			22,572,568			35,496,600


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(390,769,068	)		(91,088,205	)		(72,519,064	)
In-kind redemptions — unaffiliated		559,560,407			(13,710,609	)		—
Futures contracts		(10,002,525	)		—			—
Foreign currency transactions		20,246,854			(626,134	)		77,121

Net realized gain (loss)		179,035,668			(105,424,948	)		(72,441,943	)

Net change in unrealized appreciation/depreciation on:
Investments		(337,992,956	)		13,849,595			641,612,621
Futures contracts		3,526,516			—			—
Translation of assets and liabilities in foreign currencies		(1,083,600	)		(71,612	)		(222,879	)

Net change in unrealized appreciation/depreciation		(335,550,040	)		13,777,983			641,389,742

Net realized and unrealized gain (loss)		(156,514,372	)		(91,646,965	)		568,947,799

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	107,972,253		$	(69,074,397	)	$	604,444,399

^a	Net of foreign withholding tax of $38,357,610, $400,584 and $9,288,413, respectively.

See notes to financial statements.


48		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares Edge MSCI Min Vol Global ETF						iShares MSCI Australia ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	64,576,560		$	44,309,164		$	62,740,787		$	89,352,838
Net realized gain (loss)		30,872,741			43,296,827			(22,265,463	)		(42,403,229	)
Net change in unrealized appreciation/depreciation		252,873,179			(88,854,431	)		137,229,771			(586,867,702	)

Net increase (decrease) in net assets resulting from operations		348,322,480			(1,248,440	)		177,705,095			(539,918,093	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(59,015,735	)		(39,259,118	)		(59,291,158	)		(88,722,742	)

Total distributions to shareholders		(59,015,735	)		(39,259,118	)		(59,291,158	)		(88,722,742	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,225,242,572			1,101,077,585			683,182,993			286,641,003
Cost of shares redeemed		(362,492,946	)		(227,950,517	)		(360,957,779	)		(477,049,572	)

Net increase (decrease) in net assets from capital share transactions		862,749,626			873,127,068			322,225,214			(190,408,569	)

INCREASE (DECREASE) IN NET ASSETS		1,152,056,371			832,619,510			440,639,151			(819,049,404	)

NET ASSETS
Beginning of year		2,115,631,974			1,283,012,464			1,228,063,180			2,047,112,584

End of year	$	3,267,688,345		$	2,115,631,974		$	1,668,702,331		$	1,228,063,180

Undistributed net investment income included in net assets at end of year	$	16,401,105		$	10,644,923		$	11,677,105		$	6,449,210


SHARES ISSUED AND REDEEMED
Shares sold		16,900,000			15,700,000			35,400,000			12,800,000
Shares redeemed		(5,100,000	)		(3,200,000	)		(19,000,000	)		(22,400,000	)

Net increase (decrease) in shares outstanding		11,800,000			12,500,000			16,400,000			(9,600,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			49

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Canada ETF						iShares MSCI Japan ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	49,872,015		$	51,171,586		$	264,486,625		$	198,077,924
Net realized gain (loss)		(61,752,843	)		(185,598	)		179,035,668			433,991,900
Net change in unrealized appreciation/depreciation		237,092,373			(888,177,701	)		(335,550,040	)		(336,921,644	)

Net increase (decrease) in net assets resulting from operations		225,211,545			(837,191,713	)		107,972,253			295,148,180


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(46,033,306	)		(56,091,045	)		(261,611,433	)		(187,336,932	)

Total distributions to shareholders		(46,033,306	)		(56,091,045	)		(261,611,433	)		(187,336,932	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,347,709,468			422,191,995			3,254,831,968			8,592,356,336
Cost of shares redeemed		(360,548,208	)		(1,384,361,375	)		(8,233,815,497	)		(4,281,553,914	)

Net increase (decrease) in net assets from capital share transactions		987,161,260			(962,169,380	)		(4,978,983,529	)		4,310,802,422

INCREASE (DECREASE) IN NET ASSETS		1,166,339,499			(1,855,452,138	)		(5,132,622,709	)		4,418,613,670

NET ASSETS
Beginning of year		1,931,454,092			3,786,906,230			19,147,802,373			14,729,188,703

End of year	$	3,097,793,591		$	1,931,454,092		$	14,015,179,664		$	19,147,802,373

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	4,768,460		$	415,638		$	41,500,905		$	(21,895,543	)


SHARES ISSUED AND REDEEMED
Shares sold		57,300,000			14,300,000			279,600,000			697,200,000
Shares redeemed		(15,400,000	)		(48,900,000	)		(712,200,000	)		(366,600,000	)

Net increase (decrease) in shares outstanding		41,900,000			(34,600,000	)		(432,600,000	)		330,600,000

See notes to financial statements.


50		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Mexico Capped ETF						iShares MSCI South Korea Capped ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	22,572,568		$	23,159,039		$	35,496,600		$	33,901,757
Net realized loss		(105,424,948	)		(218,038,852	)		(72,441,943	)		(284,471,604	)
Net change in unrealized appreciation/depreciation		13,777,983			(502,228,529	)		641,389,742			(1,094,121,115	)

Net increase (decrease) in net assets resulting from operations		(69,074,397	)		(697,108,342	)		604,444,399			(1,344,690,962	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(31,509,179	)		(30,297,965	)		(75,311,690	)		(50,182,957	)

Total distributions to shareholders		(31,509,179	)		(30,297,965	)		(75,311,690	)		(50,182,957	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,471,785,156			862,520,515			456,857,078			649,650,453
Cost of shares redeemed		(1,260,625,873	)		(2,203,323,997	)		(693,973,908	)		(985,441,132	)

Net increase (decrease) in net assets from capital share transactions		211,159,283			(1,340,803,482	)		(237,116,830	)		(335,790,679	)

INCREASE (DECREASE) IN NET ASSETS		110,575,707			(2,068,209,789	)		292,015,879			(1,730,664,598	)

NET ASSETS
Beginning of year		1,206,942,303			3,275,152,092			3,160,954,309			4,891,618,907

End of year	$	1,317,518,010		$	1,206,942,303		$	3,452,970,188		$	3,160,954,309

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(3,342,828	)	$	597,098		$	(111,718,391	)	$	(78,505,763	)


SHARES ISSUED AND REDEEMED
Shares sold		28,200,000			14,400,000			8,900,000			10,650,000
Shares redeemed		(25,000,000	)		(37,300,000	)		(13,850,000	)		(18,650,000	)

Net increase (decrease) in shares outstanding		3,200,000			(22,900,000	)		(4,950,000	)		(8,000,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			51

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares Edge MSCI Min Vol Global ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			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	$	67.59		$	68.25		$	59.99		$	55.65		$	50.02

Income from investment operations:
Net investment income^b		1.79			1.70			1.72			1.68			1.49
Net realized and unrealized gain (loss)^c		8.07			(0.89	)		8.18			4.20			4.67

Total from investment operations		9.86			0.81			9.90			5.88			6.16

Less distributions from:
Net investment income		(1.63	)		(1.47	)		(1.64	)		(1.54	)		(0.53	)

Total distributions		(1.63	)		(1.47	)		(1.64	)		(1.54	)		(0.53	)

Net asset value, end of period	$	75.82		$	67.59		$	68.25		$	59.99		$	55.65


Total return		14.76	%		1.15	%		16.70	%		10.69	%		12.41	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,267,688		$	2,115,632		$	1,283,012		$	1,007,760		$	578,776
Ratio of expenses to average net assets^e		0.20	%		0.20	%		0.20	%		0.20	%		0.23	%
Ratio of expenses to average net assets prior to waived fees^e		0.32	%		0.33	%		0.33	%		0.34	%		0.34	%
Ratio of net investment income to average net assets^e		2.49	%		2.41	%		2.67	%		2.83	%		3.17	%
Portfolio turnover rate^f		24	%		22	%		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, 2016, August 31, 2015, August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 23%, 22%, 23%, 13% and 22%, respectively. See Note 4.

See notes to financial statements.


52		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Australia ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	18.66		$	27.15		$	23.61		$	23.39		$	24.18

Income from investment operations:
Net investment income^a		0.84			1.23			1.10			1.02			1.04
Net realized and unrealized gain (loss)^b		1.59			(8.49	)		3.43			0.64			(0.72	)

Total from investment operations		2.43			(7.26	)		4.53			1.66			0.32

Less distributions from:
Net investment income		(0.79	)		(1.23	)		(0.99	)		(1.44	)		(1.11	)

Total distributions		(0.79	)		(1.23	)		(0.99	)		(1.44	)		(1.11	)

Net asset value, end of year	$	20.30		$	18.66		$	27.15		$	23.61		$	23.39


Total return		13.36	%		(27.31	)%		19.76	%		7.06	%		1.84	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,668,702		$	1,228,063		$	2,047,113		$	1,916,849		$	2,493,699
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		4.41	%		5.37	%		4.28	%		4.05	%		4.61	%
Portfolio turnover rate^c		7	%		9	%		6	%		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.


FINANCIAL HIGHLIGHTS			53

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Canada ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	24.02		$	32.93		$	27.34		$	27.52		$	29.89

Income from investment operations:
Net investment income^a		0.51			0.54			0.59			0.60			0.53
Net realized and unrealized gain (loss)^b		1.29			(8.85	)		5.62			(0.10	)		(2.33	)

Total from investment operations		1.80			(8.31	)		6.21			0.50			(1.80	)

Less distributions from:
Net investment income		(0.49	)		(0.60	)		(0.62	)		(0.68	)		(0.57	)

Total distributions		(0.49	)		(0.60	)		(0.62	)		(0.68	)		(0.57	)

Net asset value, end of year	$	25.33		$	24.02		$	32.93		$	27.34		$	27.52


Total return		7.73	%		(25.48	)%		23.00	%		1.84	%		(5.87	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,097,794		$	1,931,454		$	3,786,906		$	3,428,223		$	4,254,544
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.51	%		0.53	%
Ratio of net investment income to average net assets		2.18	%		1.92	%		1.97	%		2.12	%		1.94	%
Portfolio turnover rate^c		4	%		5	%		6	%		7	%		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.


54		2016 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, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	12.15		$	11.83		$	10.97		$	9.02		$	9.80

Income from investment operations:
Net investment income^a		0.18			0.15			0.15			0.13			0.18
Net realized and unrealized gain (loss)^b		0.11			0.30			0.88			1.97			(0.77	)

Total from investment operations		0.29			0.45			1.03			2.10			(0.59	)

Less distributions from:
Net investment income		(0.18	)		(0.13	)		(0.17	)		(0.15	)		(0.19	)

Total distributions		(0.18	)		(0.13	)		(0.17	)		(0.15	)		(0.19	)

Net asset value, end of year	$	12.26		$	12.15		$	11.83		$	10.97		$	9.02


Total return		2.44	%		3.84	%		9.39	%		23.46	%		(5.96	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	14,015,180		$	19,147,802		$	14,729,189		$	10,461,942		$	4,629,034
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.53	%
Ratio of net investment income to average net assets		1.53	%		1.20	%		1.31	%		1.18	%		1.95	%
Portfolio turnover rate^c		4	%		2	%		2	%		4	%		3	%

^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			55

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Mexico Capped ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	52.70		$	71.51		$	61.93		$	60.96		$	58.39

Income from investment operations:
Net investment income^a		0.93			0.68			1.06			0.75			0.73
Net realized and unrealized gain (loss)^b		(1.82	)		(18.56	)		9.61			0.85			2.76

Total from investment operations		(0.89	)		(17.88	)		10.67			1.60			3.49

Less distributions from:
Net investment income		(1.33	)		(0.93	)		(1.09	)		(0.63	)		(0.92	)

Total distributions		(1.33	)		(0.93	)		(1.09	)		(0.63	)		(0.92	)

Net asset value, end of year	$	50.48		$	52.70		$	71.51		$	61.93		$	60.96


Total return		(1.68	)%		(25.10	)%		17.42	%		2.53	%		6.13	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,317,518		$	1,206,942		$	3,275,152		$	2,217,052		$	1,182,700
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.50	%		0.53	%
Ratio of net investment income to average net assets		1.82	%		1.10	%		1.61	%		1.09	%		1.26	%
Portfolio turnover rate^c		8	%		13	%		19	%		32	%		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.


56		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI South Korea Capped ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	48.15		$	66.42		$	57.67		$	55.97		$	56.74

Income from investment operations:
Net investment income^a		0.56			0.46			0.25			0.23			0.23
Net realized and unrealized gain (loss)^b		9.38			(18.07	)		9.40			1.83			(0.63	)

Total from investment operations		9.94			(17.61	)		9.65			2.06			(0.40	)

Less distributions from:
Net investment income		(1.20	)		(0.66	)		(0.90	)		(0.36	)		(0.37	)

Total distributions		(1.20	)		(0.66	)		(0.90	)		(0.36	)		(0.37	)

Net asset value, end of year	$	56.89		$	48.15		$	66.42		$	57.67		$	55.97


Total return		20.92	%		(26.58	)%		16.83	%		3.65	%		(0.62	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,452,970		$	3,160,954		$	4,891,619		$	3,376,516		$	2,669,551
Ratio of expenses to average net assets		0.64	%		0.62	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		1.09	%		0.81	%		0.39	%		0.40	%		0.42	%
Portfolio turnover rate^c		22	%		24	%		13	%		13	%		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.

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 cash transactions, the portfolio turnover rates for the years ended August 31, 2016, August 31, 2015, August 31, 2014, August 31, 2013, and August 31, 2012 were 10%, 10%, 10%, 11%, and 8%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			57

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
Edge MSCI Min Vol Global^a		Diversified
MSCI Australia		Non-diversified
MSCI Canada		Diversified
MSCI Japan		Diversified
MSCI Mexico Capped		Non-diversified
MSCI South Korea Capped		Non-diversified

Formerly the iShares MSCI All Country World Minimum Volatility ETF.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•


58		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

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

•

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			59

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


60		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. 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.


NOTES TO FINANCIAL STATEMENTS			61

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2016:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
Edge MSCI Min Vol Global
Barclays Capital Inc.	$	772,165	$	772,165	$	—
Citigroup Global Markets Inc.		1,205,030		1,205,030		—
Credit Suisse Securities (USA) LLC		4,756,496		4,756,496		—
Deutsche Bank AG		56,985		56,985		—
Deutsche Bank Securities Inc.		1,758,307		1,758,307		—
Goldman Sachs & Co.		13,486,466		13,486,466		—
Jefferies LLC		1,807,220		1,807,220		—
JPMorgan Clearing Corp.		14,959		14,959		—
Macquarie Capital (USA) Inc.		4,372,632		4,372,632		—
Merrill Lynch, Pierce, Fenner & Smith		8,870,236		8,870,236		—
Morgan Stanley & Co. International PLC		10,181,363		10,181,363		—
Morgan Stanley & Co. LLC		22,118,376		22,118,376		—
Nomura Securities International Inc.		1,646,283		1,646,283		—
SG Americas Securities LLC		172,805		172,805		—
State Street Bank & Trust Company		12,564,540		12,564,540		—
UBS Securities LLC		261,707		261,707		—

	$	84,045,570	$	84,045,570	$	—

MSCI Australia
UBS Securities LLC	$	2,291,038	$	2,291,038	$	—

	$	2,291,038	$	2,291,038	$	—

MSCI Canada
Credit Suisse Securities (USA) LLC	$	4,344,011	$	4,344,011	$	—
Goldman Sachs & Co.		2,236,010		2,236,010		—

	$	6,580,021	$	6,580,021	$	—

MSCI Japan
Barclays Capital Inc.	$	321,280	$	321,280	$	—
BNP Paribas Prime Brokerage Inc.		629,961		629,961		—
Citigroup Global Markets Inc.		1,173,089		1,173,089		—
Credit Suisse Securities (USA) LLC		2,170,197		2,170,197		—
Deutsche Bank Securities Inc.		2,901,503		2,901,503		—
Goldman Sachs & Co.		11,949,208		11,949,208		—
Merrill Lynch, Pierce, Fenner & Smith		2,830,430		2,830,430		—
Morgan Stanley & Co. LLC		20,226,761		20,226,761		—
Nomura Securities International Inc.		5,365,346		5,365,346		—
UBS Securities LLC		682,705		682,705		—

	$	48,250,480	$	48,250,480	$	—


62		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Mexico Capped
Credit Suisse Securities (USA) LLC	$	1,208,128	$	1,208,128	$	—
Deutsche Bank Securities Inc.		244,026		244,026		—
Goldman Sachs & Co.		6,827,593		6,827,593		—
Morgan Stanley & Co. LLC		8,248,431		8,248,431		—
UBS Securities LLC		1,038,938		1,038,938		—

	$	17,567,116	$	17,567,116	$	—

MSCI South Korea Capped
Citigroup Global Markets Inc.	$	18,772,789	$	18,772,789	$	—
Credit Suisse Securities (USA) LLC		13,980,131		13,980,131		—
Deutsche Bank Securities Inc.		565,561		565,561		—
Goldman Sachs & Co.		26,238,560		26,238,560		—
HSBC Bank PLC		6,180,774		6,180,774		—
JPMorgan Clearing Corp.		5,840,970		5,840,970		—
Merrill Lynch, Pierce, Fenner & Smith		27,293,438		27,293,438		—
Morgan Stanley & Co. LLC		18,707,882		18,707,882		—
Nomura Securities International Inc.		731,182		731,182		—
UBS Securities LLC		5,019,686		5,019,686		—

	$	123,330,973	$	123,330,973	$	—

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

For its investment advisory services to the iShares Edge MSCI Min Vol Global 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

In addition, the iShares Edge MSCI Min Vol Global ETF indirectly pays its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2018 in an amount equal to the acquired fund fees and expenses attributable to the Fund’s investments in other iShares funds, if any. BFA has also contractually agreed to waive an


NOTES TO FINANCIAL STATEMENTS			63

Notes to Financial Statements (Continued)

iSHARES^®, INC.

additional portion of its investment advisory fee for the Fund through December 31, 2018 in order to limit total annual operating expenses after fee waiver to 0.20% of average daily net assets.

For its investment advisory services to each of the iShares MSCI Australia, iShares MSCI Canada, iShares MSCI Japan 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

For its investment advisory services to the iShares MSCI South Korea Capped 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
	0.74	%	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 $24 billion^a
	0.48		Over $24 billion, up to and including $32 billion^a
	0.45		Over $32 billion

Breakpoint level was added or amended effective July 1, 2016.


64		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
Edge MSCI Min Vol Global	$	161,675
MSCI Australia		37,510
MSCI Canada		20,957
MSCI Japan		380,477
MSCI Mexico Capped		122,423
MSCI South Korea Capped		1,936,391

For the year ended August 31, 2016, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
Edge MSCI Min Vol Global	$	95,803,211	$	20,722,967
MSCI Australia		3,509,440		330,509
MSCI Japan		65,611,003		29,810,840
MSCI South Korea Capped		47,735,183		996,458

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, 2016 were as follows:


iShares ETF	Purchases		Sales
Edge MSCI Min Vol Global	$	842,690,220	$	622,702,748
MSCI Australia		121,458,445		104,877,891
MSCI Canada		137,544,140		103,563,021
MSCI Japan		723,169,041		858,299,041
MSCI Mexico Capped		117,967,514		104,703,749
MSCI South Korea Capped		718,274,361		997,129,986


NOTES TO FINANCIAL STATEMENTS			65

Notes to Financial Statements (Continued)

iSHARES^®, INC.

In-kind transactions (see Note 4) for the year ended August 31, 2016 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
Edge MSCI Min Vol Global	$	998,852,158	$	341,395,189
MSCI Australia		664,430,715		357,382,556
MSCI Canada		1,311,430,660		356,055,799
MSCI Japan		3,169,238,535		7,993,604,312
MSCI Mexico Capped		1,452,334,569		1,252,645,516

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FUTURES CONTRACTS*


66		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the value of futures contracts held as of August 31, 2016 and the related locations in the statements of assets and liabilities, presented by risk exposure category:


Assets
	iShares MSCI Australia ETF		iShares MSCI Canada ETF		iShares MSCI Japan ETF
Equity contracts:
Variation margin/Net assets consist of – net unrealized appreciation (depreciation)^a	$	156,262	$	365,605	$	668,719

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


	Net Realized Gain (Loss)
	iShares MSCI Australia ETF			iShares MSCI Canada ETF		iShares MSCI Japan ETF
Equity contracts:
Futures contracts	$	(586,986	)	$	153,782	$	(10,002,525	)


	Net Change in Unrealized Appreciation/Depreciation
	iShares MSCI Australia ETF		iShares MSCI Canada ETF		iShares MSCI Japan ETF
Equity contracts:
Futures contracts	$	463,491	$	505,658	$	3,526,516

The following table shows the average quarter-end balances of open futures contracts for the year ended August 31, 2016 :

iShares MSCI

Australia ETF

iShares MSCI

Canada ETF

iShares MSCI

Japan ETF

Average value of contracts purchased

15,052,432

6,140,151

102,414,104

6.	*PRINCIPAL RISKS*


NOTES TO FINANCIAL STATEMENTS			67

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 and/or indirect 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.

Investing in the securities of non-U.S. issuers, whether directly or indirectly, 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.

CREDIT RISK


68		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 NAV per share. The following permanent differences as of August 31, 2016, attributable to the characterization of corporate actions, 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
Edge MSCI Min Vol Global	$	82,629,920		$	195,357	$	(82,825,277	)
MSCI Australia		794,334			1,778,266		(2,572,600	)
MSCI Canada		14,451,637			514,113		(14,965,750	)
MSCI Japan		319,965,190			60,521,256		(380,486,446	)
MSCI Mexico Capped		(70,029,874	)		4,996,685		65,033,189
MSCI South Korea Capped		(5,788,592	)		6,602,462		(813,870	)

The tax character of distributions paid during the years ended August 31, 2016 and August 31, 2015 was as follows:


iShares ETF	2016		2015
Edge MSCI Min Vol Global
Ordinary income	$	59,015,735	$	39,259,118


MSCI Australia
Ordinary income	$	59,291,158	$	88,722,742


MSCI Canada
Ordinary income	$	46,033,306	$	56,091,045


MSCI Japan
Ordinary income	$	261,611,433	$	187,336,932


MSCI Mexico Capped
Ordinary income	$	31,509,179	$	30,297,965


MSCI South Korea Capped
Ordinary income	$	75,311,690	$	50,182,957


NOTES TO FINANCIAL STATEMENTS			69

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2016, 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
Edge MSCI Min Vol Global	$	22,600,779	$	(24,755,016	)	$	307,093,016		$	(33,083,050	)	$	271,855,729
MSCI Australia		28,782,364		(197,019,706	)		(365,684,531	)		(16,189,246	)		(550,111,119	)
MSCI Canada		6,212,407		(384,093,913	)		(587,574,923	)		(64,174,928	)		(1,029,631,357	)
MSCI Japan		70,548,120		(800,811,113	)		(1,478,765,829	)		(253,555,981	)		(2,462,584,803	)
MSCI Mexico Capped		3,502,609		(169,297,369	)		(497,312,071	)		(50,100,398	)		(713,207,229	)
MSCI South Korea Capped		—		(714,496,784	)		1,084,197,461			(67,299,711	)		302,400,966

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the characterization of corporate actions, tax deferral of losses on wash sales, the timing and recognition of partnership income 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, 2016, the following 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
Edge MSCI Min Vol Global	$	24,755,016	$	—	$	—	$	—	$	24,755,016
MSCI Australia		137,537,973		24,006,125		23,348,244		12,127,364		197,019,706
MSCI Canada		272,374,434		27,886,883		68,928,677		14,903,919		384,093,913
MSCI Japan		371,710,340		116,295,478		173,577,101		139,228,194		800,811,113
MSCI Mexico Capped		134,670,245		8,973,988		2,789,471		22,863,665		169,297,369
MSCI South Korea Capped		348,410,462		60,990,953		226,591,665		78,503,704		714,496,784

Must be utilized prior to losses subject to expiration.

8.	*SUBSEQUENT EVENTS*

At the meeting of the Board held on September 28-29, 2016, the Board approved a one-for-four reverse stock split for the iShares MSCI Japan ETF, effective after the close of trading on November 4, 2016. The impact of the stock split will be to decrease the number of shares outstanding by a factor of four, while increasing the NAV per share by a factor of four, resulting in no effect on the net assets of the Fund.


70		2016 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 Edge MSCI Min Vol Global ETF, iShares MSCI Australia ETF, iShares MSCI Canada ETF, iShares MSCI Japan ETF, iShares MSCI Mexico Capped ETF and iShares MSCI South Korea Capped ETF (the “Funds”) at August 31, 2016, 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, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 21, 2016


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			71

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2016:


iShares ETF	Qualified Dividend Income
Edge MSCI Min Vol Global	$	51,809,481
MSCI Australia		63,718,744
MSCI Canada		70,902,669
MSCI Japan		368,797,041
MSCI Mexico Capped		37,094,960
MSCI South Korea Capped		55,575,122

For corporate shareholders, the percentage of income dividends paid by the iShares Edge MSCI Min Vol Global ETF during the fiscal year ended August 31, 2016 that qualified for the dividends-received deduction was 44.03%.

For the fiscal year ended August 31, 2016, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Australia	$	70,993,051	$	1,550,784
MSCI Canada		71,353,535		10,501,281
MSCI Japan		384,295,232		38,290,788
MSCI Mexico Capped		40,257,418		400,246
MSCI South Korea Capped		57,602,948		9,290,657


72		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares Edge MSCI Min Vol Global ETF, iShares MSCI Australia ETF and iShares MSCI Canada ETF


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			73

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


74		2016 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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objectives and strategies as the Funds and that track the same respective indexes 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 and generally more extensive services provided to the Funds, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			75

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

II. iShares MSCI Japan 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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		2016 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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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


78		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 Mexico Capped 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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			79

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


80		2016 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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			81

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

IV. iShares MSCI South Korea Capped 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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:


82		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

statistical information provided in Broadridge’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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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			83

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

had focused on the methodology and profitability 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, among other things, 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, in a manner more favorable to the Fund, 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.

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


84		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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			85

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
Edge MSCI Min Vol Global	$	1.622925	$	—	$	0.009907	$	1.632832		99	%		—	%		1	%		100	%
MSCI Australia		0.733202		—		0.052083		0.785285		93			—			7			100
MSCI Canada		0.443704		—		0.041737		0.485441		91			—			9			100
MSCI Japan		0.179533		—		—		0.179533		100			—			—			100
MSCI Mexico Capped		1.326981		—		—		1.326981		100			—			—			100
MSCI South Korea Capped		0.145909		—		1.056193		1.202102		12			—			88			100

Premium/Discount Information


86		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares Edge MSCI Min Vol Global ETF

Period Covered: October 18, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		3		0.25	%
Greater than 2.5% and Less than 3.0%		1		0.08
Greater than 2.0% and Less than 2.5%		6		0.51
Greater than 1.5% and Less than 2.0%		4		0.34
Greater than 1.0% and Less than 1.5%		18		1.52
Greater than 0.5% and Less than 1.0%		119		10.06
Between 0.5% and –0.5%		1,012		85.55
Less than –0.5% and Greater than –1.0%		18		1.52
Less than –1.0% and Greater than –1.5%		2		0.17

		1,183		100.00	%

iShares MSCI Australia ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		2		0.14
Greater than 2.0% and Less than 2.5%		9		0.65
Greater than 1.5% and Less than 2.0%		37		2.68
Greater than 1.0% and Less than 1.5%		67		4.84
Greater than 0.5% and Less than 1.0%		245		17.71
Between 0.5% and –0.5%		735		53.14
Less than –0.5% and Greater than –1.0%		163		11.79
Less than –1.0% and Greater than –1.5%		69		4.99
Less than –1.5% and Greater than –2.0%		20		1.45
Less than –2.0% and Greater than –2.5%		21		1.52
Less than –2.5% and Greater than –3.0%		3		0.22
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%		3		0.22

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			87

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Canada ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		1		0.07	%
Greater than 2.0% and Less than 2.5%		1		0.07
Greater than 1.5% and Less than 2.0%		2		0.14
Greater than 1.0% and Less than 1.5%		4		0.29
Greater than 0.5% and Less than 1.0%		43		3.11
Between 0.5% and –0.5%		1,280		92.56
Less than –0.5% and Greater than –1.0%		47		3.40
Less than –1.0% and Greater than –1.5%		5		0.36

		1,383		100.00	%

iShares MSC Japan ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		3		0.22
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		6		0.43
Greater than 2.0% and Less than 2.5%		11		0.80
Greater than 1.5% and Less than 2.0%		52		3.76
Greater than 1.0% and Less than 1.5%		121		8.75
Greater than 0.5% and Less than 1.0%		262		18.94
Between 0.5% and –0.5%		593		42.89
Less than –0.5% and Greater than –1.0%		169		12.22
Less than –1.0% and Greater than –1.5%		74		5.35
Less than –1.5% and Greater than –2.0%		44		3.18
Less than –2.0% and Greater than –2.5%		24		1.74
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%		3		0.22
Less than –4.0% and Greater than –4.5%		2		0.14
Less than –4.5% and Greater than –5.0%		2		0.14

		1,383		100.00	%


88		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Mexico Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		1		0.07	%
Greater than 2.0% and Less than 2.5%		2		0.14
Greater than 1.5% and Less than 2.0%		6		0.43
Greater than 1.0% and Less than 1.5%		18		1.30
Greater than 0.5% and Less than 1.0%		91		6.58
Between 0.5% and –0.5%		1,105		79.91
Less than –0.5% and Greater than –1.0%		133		9.63
Less than –1.0% and Greater than –1.5%		21		1.52
Less than –1.5% and Greater than –2.0%		2		0.14
Less than –2.0% and Greater than –2.5%		2		0.14
Less than –2.5% and Greater than –3.0%		1		0.07
Less than –3.0% and Greater than –3.5%		1		0.07

		1,383		100.00	%

iShares MSCI South Korea Capped ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		1		0.07
Greater than 4.0% and Less than 4.5%		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%		10		0.72
Greater than 2.0% and Less than 2.5%		11		0.80
Greater than 1.5% and Less than 2.0%		37		2.68
Greater than 1.0% and Less than 1.5%		55		3.98
Greater than 0.5% and Less than 1.0%		195		14.10
Between 0.5% and –0.5%		629		45.49
Less than –0.5% and Greater than –1.0%		241		17.43
Less than –1.0% and Greater than –1.5%		92		6.65
Less than –1.5% and Greater than –2.0%		51		3.69
Less than –2.0% and Greater than –2.5%		25		1.81
Less than –2.5% and Greater than –3.0%		15		1.08
Less than –3.0% and Greater than –3.5%		2		0.14
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%		3		0.22
Less than –5.0% and Greater than –5.5%		1		0.07
Less than –5.5% and Greater than –6.0%		1		0.07
Less than –6.0%		2		0.14

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			89

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Regulation under the Alternative Investment Fund Managers Directive (“AIFMD” or the “Directive”)

BFA has registered the iShares MSCI Canada ETF, iShares MSCI Japan ETF, iShares MSCI Mexico Capped ETF and the iShares MSCI South Korea Capped ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden, and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to (a) the staff of BFA; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Funds.


90		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

acknowledges the multiple-service nature of BFA. 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 Canada ETF in respect of BFA’s financial year ending December 31, 2015 is USD 284.73 thousand. This figure is comprised of fixed remuneration of USD 110.73 thousand and variable remuneration of USD 174 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Canada ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 33.84 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 8.2 thousand.

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, 2015 is USD 3.28 million. This figure is comprised of fixed remuneration of USD 1.28 million and variable remuneration of USD 2.01 million. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Japan ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 390.05 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 94.46 thousand.

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, 2015 is USD 210.48 thousand. This figure is comprised of fixed remuneration of USD 81.86 thousand and variable remuneration of USD 128.63 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Mexico Capped ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 25.02 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 6.06 thousand.

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, 2015 is USD 533.1 thousand. This figure is comprised of fixed remuneration of USD 207.32 thousand and variable remuneration of USD 325.77 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI South Korea Capped ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 63.36 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 15.34 thousand.


SUPPLEMENTAL INFORMATION			91

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.


92		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director During the Past 5 Years
Cecilia H. Herbert (67)	Director (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	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 media company (since 2011).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015).

Jane D. Carlin (60)	Director (since 2015); Risk Committee Chair (since 2016).	Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012).

Charles A. Hurty (72)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); 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 (61)	Director (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (55)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).


DIRECTOR AND OFFICER INFORMATION			93

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c (Continued)

Robert H. Silver served as an Independent Director until March 31, 2016.


94		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^d



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since January 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).

Jack Gee (56)	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).

Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).

Scott Radell (47)	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 (53)	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).

Manish Mehta served as President until October 15, 2016.


DIRECTOR AND OFFICER INFORMATION			95

Notes:


96		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			97

Notes:


98		2016 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-815-0816

AUGUST 31, 2016


2016 ANNUAL REPORT

iShares, Inc.

^Ø

iShares Core MSCI Emerging Markets ETF | IEMG | NYSE Arca

^Ø

iShares MSCI BRIC ETF | BKF | NYSE Arca

^Ø

iShares MSCI Emerging Markets Asia ETF | EEMA | NASDAQ

^Ø

iShares MSCI Emerging Markets Small-Cap ETF | EEMS | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			14
Shareholder Expenses			14
Consolidated Schedules of Investments			15
iShares Core MSCI Emerging Markets ETF			15
iShares MSCI BRIC ETF			46
iShares MSCI Emerging Markets Asia ETF			52
iShares MSCI Emerging Markets Small-Cap ETF			61
Consolidated Financial Statements			77
Consolidated Financial Highlights			83
Notes to Consolidated Financial Statements			87
Report of Independent Registered Public Accounting Firm			101
Tax Information			102
Board Review and Approval of Investment Advisory Contract			103
Supplemental Information			116
Director and Officer Information			121

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® CORE MSCI EMERGING MARKETS ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.99%		11.58%		11.73%		11.99%		11.58%		11.73%
Since Inception		(0.50)%		(0.61)%		(0.51)%		(1.93)%		(2.34)%		(1.95)%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,219.50	$	0.95	$	1,000.00	$	1,024.30	$	0.87		0.17%


6		2016 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, 2016, the total return for the Fund was 11.99%, net of fees, while the total return for the Index was 11.73%.

Emerging markets equities, as represented by the Index, advanced for the reporting period and outpaced the broad global equity market in a volatile market environment.

Among currencies that had a notable effect on Index performance, the South Korean won gained 6% and the Brazilian real appreciated 10% versus the U.S. dollar during the reporting period. As a result, investments in South Korea and Brazil were worth more when translated into U.S. dollars. However, the South African rand depreciated 11% against the U.S. dollar, making investments in South Africa worth less when translated to U.S. dollars.

Within the Index, South Korea contributed the most to performance during the reporting period, benefiting from an improving economy and accommodative interest rate policy. China, the largest country weighting at 25% of the Index on average during the reporting period, contributed significantly to the Index’s return. Taiwan, Brazil, India, and Indonesia were other notable contributors to Index performance during the reporting period.

The leading detractors from Index performance were Poland, whose credit rating was downgraded, and South Africa, whose economy struggled with high energy costs, labor problems, and food shortages.

From a sector perspective, information technology was the most significant contributor to Index performance, supported by strong merger and acquisition activity. The financials, consumer discretionary, and materials sectors also contributed meaningfully during the reporting period. Telecommunications stocks made up the only sector to decline during the reporting period, detracting marginally from Index performance.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Information Technology	22.58	%
Financials**	21.75
Consumer Discretionary	11.45
Consumer Staples	7.78
Industrials	7.29
Materials	6.96
Energy	6.36
Telecommunication Services	5.53
Real Estate**	3.68
Health Care	3.53
Utilities	3.09

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country		Percentage of Total Investments*


China	26.22	%
South Korea	15.34
Taiwan	12.66
India	9.08
Brazil	6.87
South Africa	6.57
Mexico	3.73
Russia	3.17
Malaysia	2.87
Indonesia	2.67

TOTAL	89.18	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI BRIC ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.61%		11.59%		12.38%		11.61%		11.59%		12.38%
5 Years		(2.22)%		(2.20)%		(1.49)%		(10.60)%		(10.54)%		(7.24)%
Since Inception		(3.82)%		(3.88)%		(3.39)%		(29.05)%		(29.44)%		(26.19)%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,293.90	$	4.15	$	1,000.00	$	1,021.50	$	3.66		0.72%


8		2016 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 results 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, 2016, the total return for the Fund was 11.61%, net of fees, while the total return for the Index was 12.38%.

As represented by the Index, emerging markets equities in Brazil, Russia, India, and China advanced for the reporting period and outpaced the broad global equity market in a volatile market environment.

Among currencies that had a notable effect on Index performance, the Brazilian real appreciated 10% versus the U.S. dollar during the reporting period. As a result, investments in Brazil were worth more when translated into U.S. dollars.

China, the largest country weighting at 58% of the Index on average during the reporting period, was the most significant contributor to Index performance. Stabilizing economic growth amid improving industrial production and rising consumer spending helped support Chinese equities. Brazilian equities also contributed meaningfully to Index performance. These stocks gained amid a rebound in commodity prices late in the reporting period, encouraging signals from the country’s new government, and signs of a healthier Chinese economy, Brazil’s leading trade partner. Indian equities advanced, as the economy benefited from reforms that improved the ease of doing business, and consumer spending rose to an all-time high during the reporting period. Although the Russian economy remained in recession, its stock market advanced, largely due to a rebound in energy prices.

From a sector perspective, financials contributed the most to Index performance, led by banks. The information technology, energy, and consumer discretionary sectors were other sources of strength. The industrials and healthcare sectors detracted from Index performance during the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	26.56	%
Information Technology	22.55
Energy	11.28
Consumer Discretionary	8.01
Consumer Staples	6.56
Telecommunication Services	6.32
Industrials	5.05
Materials	4.28
Health Care	3.35
Utilities	3.25
Real Estate**	2.79

TOTAL	100.00	%

ALLOCATION BY COUNTRY

As of 8/31/16


Country		Percentage of Total Investments*


China	57.63	%
India	18.67
Brazil	16.05
Russia	7.65

TOTAL	100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		13.14%		13.53%		13.60%		13.14%		13.53%		13.60%
Since Inception		2.50%		2.31%		2.81%		11.94%		11.01%		13.46%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,215.00	$	2.73	$	1,000.00	$	1,022.70	$	2.49		0.49%


10		2016 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, 2016, the total return for the Fund was 13.14%, net of fees, while the total return for the Index was 13.60%.

Asian emerging markets equities, as represented by the Index, advanced for the reporting period and outpaced the broad global equity market in a volatile market environment.

Among currencies that had a notable effect on Index performance, the South Korean won appreciated 6% versus the U.S. dollar during the reporting period. As a result, investments in South Korea were worth more when translated into U.S. dollars.

From a country perspective, South Korea was the most significant contributor to Index performance, as an improving economy and accommodative interest rate policy supported equities. China, the largest country weighting at 35% of the Index on average during the reporting period, also contributed meaningfully to Index performance. Stabilizing economic growth amid improving industrial production and rising consumer spending helped to drive stock market gains. Taiwan also contributed meaningfully, supported by a rebound in exports and positive economic growth. Indonesian stocks benefited from solid economic growth, supported by a series of interest rate cuts and other stimulus measures by Bank Indonesia, the country’s central bank. India, Thailand, Malaysia, and the Philippines also contributed to Index performance. No single country detracted from Index performance during the reporting period.

From a sector standpoint, the information technology sector was the most significant contributor to Index performance, driven by strong merger and acquisition activity within the sector during the reporting period. The financials, materials, and consumer discretionary sectors also contributed meaningfully. Industrials and healthcare stocks detracted fractionally from Index performance during the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Information Technology	32.34	%
Financials**	21.38
Consumer Discretionary	9.46
Industrials	6.72
Telecommunication Services	6.06
Consumer Staples	5.88
Materials	5.09
Energy	4.80
Health Care	3.04
Utilities	2.78
Real Estate**	2.45

TOTAL	100.00	%

ALLOCATION BY COUNTRY

As of 8/31/16


Country		Percentage of Total Investments*


China	37.43	%
South Korea	20.71
Taiwan	16.77
India	12.15
Malaysia	3.90
Indonesia	3.78
Thailand	3.25
Philippines	2.01

TOTAL	100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		10.83%		10.84%		11.18%		10.83%		10.84%		11.18%
5 Years		0.13%		(0.20)%		0.87%		0.65%		(0.98)%		4.45%
Since Inception		(0.24)%		(0.31)%		0.52%		(1.23)%		(1.55)%		2.63%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,163.60	$	3.86	$	1,000.00	$	1,021.60	$	3.61		0.71%


12		2016 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, 2016, the total return for the Fund was 10.83%, net of fees, while the total return for the Index was 11.18%.

Small-capitalization emerging markets equities, as represented by the Index, advanced for the reporting period, performing in line with broader emerging markets and outpacing the broad global equity market.

Among currencies that had a notable effect on Index performance, the South Korean won gained 6% versus the U.S. dollar during the reporting period. As a result, investments in South Korea were worth more when translated into U.S. dollars. However, the South African rand depreciated 11% against the U.S. dollar, making investments in South Africa worth less when translated to U.S. dollars.

From a country perspective, small-capitalization equities in Taiwan made the largest contribution to the Index’s performance during the reporting period, supported by a rebound in exports and economic growth. Chinese small-cap stocks gained as improving industrial production and rising consumer spending supported equity markets. Indian equities contributed to Index performance, as the economy benefited from reforms that improved the ease of doing business, and consumer spending rose to an all-time high. Brazilian equities were another source of strength. The leading detractors from Index performance were South Korean small-cap equities.

From a sector standpoint, the information technology sector had the strongest absolute gain and was the most significant contributor to Index performance during the reporting period, driven by strong merger and acquisition activity. The financials, materials, and consumer discretionary sectors also contributed meaningfully. Energy and telecommunications stocks detracted fractionally from Index performance.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Consumer Discretionary	17.79	%
Information Technology	17.52
Industrials	14.90
Materials	10.53
Health Care	9.25
Real Estate**	8.94
Financials**	8.56
Consumer Staples	6.80
Utilities	3.35
Energy	1.38
Telecommunication Services	0.98

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country		Percentage of Total Investments*


China	23.13	%
South Korea	18.84
Taiwan	16.88
India	11.97
South Africa	4.80
Thailand	3.89
Brazil	3.53
Malaysia	3.37
Mexico	3.08
Indonesia	2.45

TOTAL	91.94	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

About Fund Performance

Shareholder Expenses


14		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 96.10%

BRAZIL — 4.33%
AES Tiete Energia SA		652,100	$	3,367,577
Aliansce Shopping Centers SA		435,600		2,028,615
Alupar Investimento SA Units		328,224		1,643,251
Ambev SA		16,012,300		95,020,112
Arezzo Industria e Comercio SA		227,400		1,828,313
B2W Cia. Digital^a		534,851		2,704,191
Banco Bradesco SA		2,947,397		26,522,745
Banco do Brasil SA		2,909,000		20,878,808
Banco Santander Brasil SA Units		1,391,400		9,758,474
BB Seguridade Participacoes SA		2,372,100		21,382,496
BM&FBovespa SA-Bolsa de Valores Mercadorias e Futuros		5,857,300		32,439,929
BR Malls Participacoes SA^a		1,960,770		7,482,189
BR Properties SA		614,700		1,606,226
BRF SA		2,067,800		34,433,493
CCR SA		3,000,600		15,829,747
CETIP SA – Mercados Organizados		766,917		10,363,743
Cia. de Saneamento Basico do Estado de Sao Paulo		1,179,700		10,721,561
Cia. de Saneamento de Minas Gerais-COPASA		149,000		1,520,502
Cia. Siderurgica Nacional SA^a		2,132,500		5,671,192
Cielo SA		3,494,930		36,302,399
Cosan SA Industria e Comercio		424,500		4,938,367
CPFL Energia SA		719,433		5,172,496
CVC Brasil Operadora e Agencia de Viagens SA		205,000		1,423,171
Cyrela Brazil Realty SA Empreendimentos e Participacoes		948,300		3,099,614
Duratex SA		1,107,529		2,976,197
EcoRodovias Infraestrutura e Logistica SA^a		969,200		2,493,582
EDP – Energias do Brasil SA		981,700		4,341,119
Embraer SA		2,276,100		10,086,126
Engie Brasil Energia SA		548,600		6,616,179
Equatorial Energia SA		681,776		10,661,578
Estacio Participacoes SA		946,300		4,851,770


Security	Shares		Value
EZ TEC Empreendimentos e Participacoes SA		303,023	$	1,554,565
Fibria Celulose SA		854,900		5,818,650
Fleury SA		309,000		3,653,000
Gafisa SA		1,547,900		1,144,004
Hypermarcas SA		1,192,800		9,627,089
Iguatemi Empresa de Shopping Centers SA		308,100		2,734,390
Iochpe Maxion SA		348,900		1,963,628
JBS SA		2,464,100		9,524,785
JSL SA		357,800		1,013,497
Klabin SA Units		1,898,300		9,979,312
Kroton Educacional SA		4,728,356		20,177,906
Light SA		300,400		1,411,057
Linx SA		432,600		2,314,299
Localiza Rent A Car SA		553,935		6,904,917
Lojas Americanas SA		633,310		2,735,896
Lojas Renner SA		2,173,500		17,226,422
M. Dias Branco SA		121,300		4,538,716
Magnesita Refratarios SA^a		237,960		1,213,421
Marfrig Global Foods SA^a		1,007,100		1,591,404
Minerva SA^a		472,800		1,380,182
MRV Engenharia e Participacoes SA		1,056,100		4,016,955
Multiplan Empreendimentos Imobiliarios SA		290,900		5,245,340
Multiplus SA		188,700		2,442,048
Natura Cosmeticos SA		599,500		5,776,616
Odontoprev SA		1,022,000		4,029,470
Petroleo Brasileiro SA^a		10,138,600		46,212,804
Porto Seguro SA		423,900		3,611,369
Qualicorp SA		772,300		5,416,465
Raia Drogasil SA		803,900		14,836,029
Rumo Logistica Operadora Multimodal SA^a		2,754,600		6,133,069
Sao Martinho SA		195,000		3,029,501
SLC Agricola SA		306,900		1,373,258
Smiles SA		223,600		3,477,976
Sonae Sierra Brasil SA		183,200		960,245
Sul America SA		660,189		3,333,814
TIM Participacoes SA		2,709,200		6,961,918
TOTVS SA		454,200		4,213,619
Transmissora Alianca de Energia Eletrica SA Units		306,900		2,201,769
Ultrapar Participacoes SA		1,235,700		28,441,200


CONSOLIDATED SCHEDULES OF INVESTMENTS			15

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Vale SA		4,591,100	$	24,050,106
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		265,300		2,348,797
Via Varejo SA		155,100		297,365
WEG SA		1,949,160		9,963,391

				693,046,026
CHILE — 1.06%
AES Gener SA		7,851,639		3,150,463
Aguas Andinas SA Series A		9,046,968		5,436,203
Banco de Chile		92,552,274		10,273,891
Banco de Credito e Inversiones		132,204		5,855,978
Banco Santander Chile		230,833,779		12,169,369
Cencosud SA		4,313,311		12,692,525
Cia. Cervecerias Unidas SA		489,875		5,192,511
Cia. Sud Americana de Vapores SA^a		55,825,894		868,374
Colbun SA		27,885,519		5,867,674
Empresa Nacional de Electricidad SA/Chile		11,344,918		8,491,810
Empresa Nacional de Telecomunicaciones SA^a		502,042		4,758,484
Empresas CMPC SA		4,078,272		8,131,553
Empresas COPEC SA		1,539,590		13,524,026
Endesa Americas SA		11,876,780		5,319,604
Enersis Americas SA		67,688,800		11,246,902
Enersis Chile SA		67,531,501		7,245,750
Engie Energia Chile SA		2,111,749		3,589,675
Inversiones Aguas Metropolitanas SA		1,846,085		3,200,084
Inversiones La Construccion SA		189,830		2,007,688
Itau CorpBanca		546,994,616		4,719,972
LATAM Airlines Group SA^a		997,602		7,955,041
Parque Arauco SA		2,324,892		5,241,007
SACI Falabella		2,071,200		14,798,731
SalfaCorp SA		2,425,986		1,822,491
SONDA SA		1,833,585		3,285,371
Vina Concha y Toro SA		1,550,767		2,581,261

				169,426,438
CHINA — 26.11%
21Vianet Group Inc. ADR^a,b		264,673		2,453,519
361 Degrees International Ltd.		4,182,000		1,299,335


Security	Shares		Value
3SBio Inc.^a,b,c		3,697,500	$	3,775,318
500.com Ltd. ADR^a,b		98,320		1,769,760
51job Inc. ADR^a,b		86,113		2,870,146
58.com Inc. ADR^a,b		269,420		12,258,610
AAC Technologies Holdings Inc.		2,555,000		29,134,592
Agile Property Holdings Ltd.		6,272,500		3,566,149
Agricultural Bank of China Ltd. Class H		82,970,000		34,121,804
AGTech Holdings Ltd.^a,b		10,020,000		2,105,598
Air China Ltd. Class H		6,254,000		4,627,964
Ajisen (China) Holdings Ltd.		4,035,000		1,607,394
Alibaba Group Holding Ltd. ADR^a,b		3,789,767		368,327,455
Alibaba Health Information Technology Ltd.^a		11,500,000		7,160,860
Alibaba Pictures Group Ltd.^a,b		40,710,000		8,397,331
Aluminum Corp. of China Ltd. Class H^a		14,516,000		5,445,781
Anhui Conch Cement Co. Ltd. Class H		4,217,500		11,853,096
Anhui Expressway Co. Ltd. Class H		1,716,000		1,411,426
ANTA Sports Products Ltd.^b		3,524,000		9,540,594
APT Satellite Holdings Ltd.		1,896,500		1,393,631
Asia Cement China Holdings Corp.		2,181,000		511,737
AVIC International Holding HK Ltd.^a,b		16,574,000		1,132,461
AviChina Industry & Technology Co. Ltd. Class H		7,429,000		5,459,155
Baidu Inc.^a		925,640		158,349,235
Bank of China Ltd. Class H		269,332,000		121,180,737
Bank of Communications Co. Ltd. Class H		29,700,000		22,935,250
Baoxin Auto Group Ltd.^a,b		758,575		460,057
Beijing Capital International Airport Co. Ltd. Class H		5,436,000		6,132,078
Beijing Capital Land Ltd. Class H		4,018,000		1,579,901
Beijing Enterprises Holdings Ltd.		1,803,000		10,343,701
Beijing Enterprises Medical & Health Group Ltd.^a		20,898,000		1,266,260


16		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Beijing Enterprises Water Group Ltd.^b		15,222,000	$	10,616,691
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.		1,839,000		2,479,897
Belle International Holdings Ltd.		21,797,000		14,162,746
Biostime International Holdings Ltd.^a,b		749,500		1,905,455
Bitauto Holdings Ltd. ADR^a,b		100,493		2,536,443
Bosideng International Holdings Ltd.^b		17,032,000		1,580,951
Brilliance China Automotive Holdings Ltd.		10,508,000		12,016,110
Byd Co. Ltd. Class H^a,b		2,176,000		15,148,612
BYD Electronic International Co. Ltd.^a,b		2,798,500		2,363,126
C C Land Holdings Ltd.		6,720,000		1,741,348
Carnival Group International Holdings Ltd.^a,b		19,877,000		2,434,415
Central China Securities Co. Ltd. Class H		4,615,000		2,112,128
Century Sunshine Group Holdings Ltd.		12,825,000		504,287
CGN Power Co. Ltd. Class H^c		36,082,000		10,466,304
Chaowei Power Holdings Ltd.^b		2,975,000		2,197,667
Cheetah Mobile Inc. ADR^a,b		119,909		1,542,030
China Aerospace International Holdings Ltd.		10,276,000		1,404,269
China Agri-Industries Holdings Ltd.^a		8,189,200		2,892,759
China Aircraft Leasing Group Holdings Ltd.^b		1,185,000		1,526,174
China Animal Healthcare Ltd.^a,b		1,237,000		53,216
China Aoyuan Property Group Ltd.		7,423,000		1,674,703
China BlueChemical Ltd. Class H		7,992,000		1,524,886
China Cinda Asset Management Co. Ltd. Class H		29,855,000		10,122,622
China CITIC Bank Corp. Ltd. Class H		29,799,000		19,669,434
China Coal Energy Co. Ltd. Class H^a		7,277,000		3,480,539
China Communications Construction Co. Ltd. Class H		15,073,000		16,439,563


Security	Shares		Value
China Communications Services Corp. Ltd. Class H		9,054,000	$	5,322,621
China Conch Venture Holdings Ltd.^b		4,848,500		9,326,022
China Construction Bank Corp. Class H		286,327,000		214,096,961
China COSCO Holdings Co. Ltd. Class H^a,b		9,009,500		2,996,682
China Datang Corp. Renewable Power Co. Ltd. Class H^a		13,318,000		1,270,548
China Dongxiang Group Co. Ltd.		13,933,000		2,802,137
China Electronics Corp. Holdings Co. Ltd.^b		4,756,000		1,189,498
China Everbright Bank Co. Ltd. Class H		10,699,000		5,062,085
China Everbright International Ltd.		8,867,000		11,339,883
China Everbright Ltd.		3,296,000		6,841,216
China Everbright Water Ltd.		2,943,000		1,252,478
China Evergrande Group^b		14,111,000		9,750,857
China Fiber Optic Network System Group Ltd.^a,b		9,424,800		741,177
China Foods Ltd.		3,776,000		1,703,806
China Galaxy Securities Co. Ltd. Class H		10,176,000		9,537,438
China Gas Holdings Ltd.		6,032,000		10,249,365
China Harmony New Energy Auto Holding Ltd.^b		2,978,000		1,581,766
China High Speed Transmission Equipment Group Co. Ltd.		4,044,000		3,722,456
China Huarong Energy Co. Ltd.^a,b		6,789,100		389,486
China Huishan Dairy Holdings Co. Ltd.^b		15,150,000		5,820,350
China Huiyuan Juice Group Ltd.^a		2,818,500		1,057,380
China Innovationpay Group Ltd.^a		22,052,000		1,151,392
China Jinmao Holdings Group Ltd.		13,662,000		4,262,357
China Lesso Group Holdings Ltd.		4,340,000		3,049,344


CONSOLIDATED SCHEDULES OF INVESTMENTS			17

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
China Life Insurance Co. Ltd. Class H		25,341,000	$	60,569,458
China Lilang Ltd.		2,797,000		1,662,316
China Longyuan Power Group Corp. Ltd.		10,960,000		9,212,518
China LotSynergy Holdings Ltd.^a,b		45,080,000		1,452,928
China Lumena New Materials Corp.^a,b		2,584,000		25,951
China Maple Leaf Educational Systems Ltd.^b		2,716,000		2,041,355
China Medical System Holdings Ltd.		4,658,000		7,806,620
China Mengniu Dairy Co. Ltd.		9,480,000		17,990,215
China Merchants Bank Co. Ltd. Class H		13,228,964		32,199,419
China Merchants Holdings International Co. Ltd.^b		4,452,000		12,684,333
China Merchants Land Ltd.^b		6,178,000		1,043,373
China Metal Recycling Holdings Ltd.^a		62,400		—
China Minsheng Banking Corp. Ltd. Class H		19,973,100		21,474,929
China Mobile Ltd.		20,925,500		258,441,087
China Modern Dairy Holdings Ltd.^a,b		11,866,000		1,866,313
China National Building Material Co. Ltd. Class H		9,814,000		4,428,272
China National Materials Co. Ltd. Class H		4,671,000		1,144,152
China New Town Development Co. Ltd.^a		10,810,000		487,769
China Ocean Industry Group Ltd.^a,b		54,635,000		1,232,620
China Oceanwide Holdings Ltd.^a		18,524,000		1,934,372
China Oil and Gas Group Ltd.^a,b		26,088,000		1,950,693
China Oilfield Services Ltd. Class H^b		6,428,000		5,046,768
China Overseas Grand Oceans Group Ltd.^a		5,602,000		1,769,414
China Overseas Land & Investment Ltd.		13,480,000		44,575,628
China Pacific Insurance Group Co. Ltd. Class H		8,864,200		31,197,687


Security	Shares		Value
China Petroleum & Chemical Corp. Class H		86,988,200	$	63,137,727
China Power International Development Ltd.		11,455,000		4,326,960
China Power New Energy Development Co. Ltd.		2,149,000		1,307,671
China Railway Construction Corp. Ltd. Class H		6,726,000		8,228,928
China Railway Group Ltd. Class H		13,661,000		10,126,761
China Regenerative Medicine International Ltd.^a,b		48,545,000		1,908,818
China Resources Beer Holdings Co. Ltd.		5,702,000		13,158,320
China Resources Gas Group Ltd.		3,116,000		10,444,580
China Resources Land Ltd.		9,499,777		26,759,935
China Resources Power Holdings Co. Ltd.		6,562,000		11,336,036
China SCE Property Holdings Ltd.		9,030,200		2,153,720
China Shanshui Cement Group Ltd.^a,b		3,521,000		417,613
China Shenhua Energy Co. Ltd. Class H		11,583,000		20,816,324
China Shineway Pharmaceutical Group Ltd.		2,050,000		2,151,288
China Shipping Container Lines Co. Ltd. Class H^a		12,958,000		2,706,283
China Singyes Solar Technologies Holdings Ltd.^b		3,059,000		1,691,831
China Southern Airlines Co. Ltd. Class H		6,266,000		3,715,938
China State Construction International Holdings Ltd.		6,328,000		7,554,360
China Suntien Green Energy Corp. Ltd. Class H^b		9,977,000		1,401,996
China Taiping Insurance Holdings Co. Ltd.^a		5,694,908		11,423,956
China Telecom Corp. Ltd. Class H		47,184,000		24,392,670
China Traditional Chinese Medicine Holdings Co. Ltd.^a,b		7,904,000		4,035,175
China Travel International Investment Hong Kong Ltd.^b		10,230,000		3,006,981


18		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
China Unicom Hong Kong Ltd.		20,526,000	$	23,260,198
China Vanke Co. Ltd. Class H		4,513,087		11,578,358
China Water Affairs Group Ltd.		4,276,000		2,668,107
China Yurun Food Group Ltd.^a,b		7,941,000		1,105,654
China ZhengTong Auto Services Holdings Ltd.		4,254,000		1,480,749
Chinasoft International Ltd.^a,b		7,306,000		3,400,220
Chongqing Changan Automobile Co. Ltd. Class B		2,959,067		4,501,497
Chongqing Rural Commercial Bank Co. Ltd. Class H		9,023,000		5,234,602
CIFI Holdings Group Co. Ltd.		10,660,000		3,339,517
CIMC Enric Holdings Ltd.^b		3,696,000		1,539,057
CITIC Ltd.		14,934,000		23,527,054
CITIC Resources Holdings Ltd.^a,b		13,016,000		1,459,879
CITIC Securities Co. Ltd. Class H		7,379,500		16,496,668
CNOOC Ltd.		60,537,000		74,376,203
Cogobuy Group^a,b,c		1,550,000		2,509,814
Colour Life Services Group Co. Ltd.		1,809,000		1,424,951
Comba Telecom Systems Holdings Ltd.^b		8,542,840		1,508,839
Concord New Energy Group Ltd.		26,040,000		1,594,611
Coolpad Group Ltd.^a		11,016,000		2,116,072
COSCO International Holdings Ltd.^b		3,140,000		1,465,408
COSCO Pacific Ltd.		5,680,000		6,151,030
Country Garden Holdings Co. Ltd.		20,350,733		10,337,047
CPMC Holdings Ltd.		2,990,000		1,638,251
Credit China Holdings Ltd.^a,b		7,536,000		4,381,650
CRRC Corp. Ltd. Class H		14,125,750		12,638,374
CSPC Pharmaceutical Group Ltd.		14,592,000		14,165,438
CT Environmental Group Ltd.^b		9,534,000		2,937,604
Ctrip.com International Ltd.^a,b		1,156,183		54,745,265
Dah Chong Hong Holdings Ltd.^b		4,126,000		1,803,222
Dalian Wanda Commercial Properties Co. Ltd. Class H^c		2,035,300		13,827,996
Daphne International Holdings Ltd.^a		6,448,000		889,465


Security	Shares		Value
Dawnrays Pharmaceutical Holdings Ltd.		2,556,000	$	1,785,995
Dazhong Transportation Group Co. Ltd. Class B		2,798,150		2,126,594
Digital China Holdings Ltd.		3,640,000		3,280,188
Dongfeng Motor Group Co. Ltd. Class H		9,212,000		9,845,293
Dongjiang Environmental Co. Ltd. Class H		890,100		1,480,296
Dongyue Group Ltd.^a		5,746,000		913,375
E-Commerce China Dangdang Inc. ADR^a		278,699		1,819,904
Eastern Communications Co. Ltd. Class B		1,373,700		1,052,254
ENN Energy Holdings Ltd.		2,622,000		14,687,324
EverChina International Holdings Co. Ltd.^a		21,890,000		733,735
Fantasia Holdings Group Co. Ltd.^b		9,579,000		1,481,909
Far East Horizon Ltd.		7,368,000		6,886,647
FDG Electric Vehicles Ltd.^a,b		48,195,000		2,982,383
First Tractor Co. Ltd. Class H		2,064,000		1,096,294
Fosun International Ltd.		8,971,500		12,421,943
Fufeng Group Ltd.^b		4,889,400		2,136,857
GCL-Poly Energy Holdings Ltd.^b		46,820,000		6,639,636
Geely Automobile Holdings Ltd.		18,510,000		14,842,840
GF Securities Co. Ltd. Class H		4,677,600		10,191,309
Glorious Property Holdings Ltd.^a		13,420,000		1,643,601
Golden Eagle Retail Group Ltd.^b		2,465,000		3,063,474
GOME Electrical Appliances Holding Ltd.^b		43,702,000		5,183,336
Goodbaby International Holdings Ltd.		3,951,000		1,930,485
Great Wall Motor Co. Ltd. Class H		10,543,000		10,234,801
Greatview Aseptic Packaging Co. Ltd.		5,029,000		2,554,454
Greentown China Holdings Ltd.^a,b		2,617,000		2,139,012
Guangdong Investment Ltd.		9,990,000		15,454,926
Guangdong Land Holdings Ltd.^a		4,078,000		1,046,214
Guangzhou Automobile Group Co. Ltd. Class H		7,324,000		10,084,162
Guangzhou R&F Properties Co. Ltd. Class H		3,372,800		5,696,159


CONSOLIDATED SCHEDULES OF INVESTMENTS			19

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Haier Electronics Group Co. Ltd.		4,434,000	$	7,419,772
Haitian International Holdings Ltd.		2,487,000		5,008,146
Haitong Securities Co. Ltd. Class H		10,432,800		18,157,450
Hanergy Thin Film Power Group Ltd.^a		8,046		—
Hangzhou Steam Turbine Co. Ltd. Class B^a		1,199,500		1,526,292
Harbin Electric Co. Ltd. Class H^b		3,590,000		1,633,764
HC International Inc.^a,b		2,428,000		1,903,148
Hengan International Group Co. Ltd.		2,521,500		21,340,958
Hengdeli Holdings Ltd.^a		12,670,800		1,388,491
Hi Sun Technology (China) Ltd.^a		9,120,000		1,469,688
Hisense Kelon Electrical Holdings Co. Ltd. Class H		1,896,000		1,300,380
Hopson Development Holdings Ltd.		2,552,000		2,500,429
Hua Han Health Industry Holdings Ltd. Class H^b		21,704,288		1,510,983
Hua Hong Semiconductor Ltd.^b,c		1,674,000		1,834,402
Huabao International Holdings Ltd.^a		7,833,000		3,019,392
Huadian Power International Corp. Ltd. Class H		5,366,000		2,400,492
Huaneng Power International Inc. Class H		14,344,000		8,728,357
Huaneng Renewables Corp. Ltd. Class H		14,276,000		5,300,529
Huangshi Dongbei Electrical Appliance Co. Ltd. Class B^a		568,400		1,131,116
Huatai Securities Co. Ltd. Class H^c		5,065,600		10,723,196
iKang Healthcare Group Inc. ADR^a		199,874		3,685,677
IMAX China Holding Inc.^a,b,c		438,300		2,480,597
Industrial & Commercial Bank of China Ltd. Class H		250,513,000		159,219,917
Inner Mongolia Yitai Coal Co. Ltd. Class B		4,078,716		3,250,737


Security	Shares		Value
Intime Retail Group Co. Ltd.^b		5,738,000	$	4,660,380
JA Solar Holdings Co. Ltd. ADR^a		225,919		1,674,060
JD.com Inc. ADR^a,b		2,342,941		59,534,131
Jiangsu Expressway Co. Ltd. Class H		4,366,000		6,135,224
Jiangxi Copper Co. Ltd. Class H		4,744,000		5,479,903
JinkoSolar Holding Co. Ltd.^a,b		91,260		1,684,660
Ju Teng International Holdings Ltd.		4,364,000		1,293,996
Jumei International Holding Ltd. ADR^a		307,527		1,623,743
K Wah International Holdings Ltd.		5,421,000		2,970,219
Kama Co. Ltd.^a		1,009,300		1,271,718
Kingboard Chemical Holdings Ltd.		2,484,200		6,469,313
Kingboard Laminates Holdings Ltd.		4,101,500		3,548,015
Kingdee International Software Group Co. Ltd.^a,b		7,828,000		3,017,465
Kingsoft Corp. Ltd.^b		2,803,000		5,731,212
Konka Group Co. Ltd. Class B^a		2,608,200		1,035,647
Kunlun Energy Co. Ltd.^b		11,378,000		8,375,722
KWG Property Holding Ltd.		4,251,500		2,855,618
Lao Feng Xiang Co. Ltd. Class B		778,617		2,806,914
Launch Tech Co. Ltd.^a		809,500		760,790
Lee & Man Paper Manufacturing Ltd.		5,168,000		4,170,778
Lenovo Group Ltd.^b		24,720,000		16,667,496
Leyou Technologies Holdings Ltd.^a,b		10,250,000		1,519,644
Li Ning Co. Ltd.^a,b		5,423,000		3,684,431
Lianhua Supermarket Holdings Co. Ltd. Class H^a		2,921,000		1,269,059
Lifetech Scientific Corp.^a,b		8,298,000		1,658,156
Livzon Pharmaceutical Group Inc. Class H		362,770		1,924,515
Longfor Properties Co. Ltd.		5,309,000		8,555,452
Lonking Holdings Ltd.		12,580,000		2,043,485
Luthai Textile Co. Ltd. Class B		1,430,492		1,799,929
Luye Pharma Group Ltd.^a		5,213,500		3,313,573
Microport Scientific Corp.^a		3,824,000		2,440,300
MIE Holdings Corp.^a		7,566,000		741,310


20		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Minth Group Ltd.		2,390,000	$	9,043,285
MMG Ltd.^a,b		8,296,000		1,903,746
Momo Inc. ADR^a,b		140,627		3,376,454
National Agricultural Holdings Ltd.^a,b		4,844,000		1,017,916
NetDragon Websoft Holdings Ltd.^b		667,500		2,250,314
Netease Inc.		273,082		57,885,192
New China Life Insurance Co. Ltd. Class H		2,725,800		11,086,987
New Oriental Education & Technology Group Inc. ADR		467,329		18,450,149
New World Department Store China Ltd.		7,524,000		1,008,794
Nexteer Automotive Group Ltd.		2,838,000		3,900,226
Nine Dragons Paper (Holdings) Ltd.		5,916,000		4,751,562
Noah Holdings Ltd. ADR^a,b		104,158		2,739,355
North Mining Shares Co. Ltd.^a,b		53,070,000		1,204,154
NQ Mobile Inc. ADR^a,b		353,191		1,458,679
Parkson Retail Group Ltd.^b		12,213,500		1,023,467
PAX Global Technology Ltd.^b		3,097,000		2,395,591
Peak Sport Products Co. Ltd.		4,522,000		1,404,972
People’s Insurance Co. Group of China Ltd. (The) Class H		24,263,000		9,759,314
PetroChina Co. Ltd. Class H		71,824,000		47,964,459
Phoenix Healthcare Group Co. Ltd.^a		2,298,000		4,017,260
Phoenix Satellite Television Holdings Ltd.^b		9,454,000		2,071,976
PICC Property & Casualty Co. Ltd. Class H		15,619,360		25,814,961
Ping An Insurance Group Co. of China Ltd. Class H		17,720,500		91,723,734
Poly Property Group Co. Ltd.^a,b		7,986,000		2,285,612
Qinqin Foodstuffs Group Cayman Co. Ltd.^a		3,051,600		1,097,620
Qunar Cayman Islands Ltd. ADR^a,b		132,161		3,927,825
Renhe Commercial Holdings Co. Ltd.^a,b		58,916,000		1,633,022
Renren Inc.^a,b		510,711		934,601
Road King Infrastructure Ltd.^b		2,261,000		1,941,310


Security	Shares		Value
Sany Heavy Equipment International Holdings Co. Ltd.^a,b		6,523,000	$	933,449
Seaspan Corp.^b		174,659		2,532,555
Semiconductor Manufacturing International Corp.^a		98,137,000		10,754,046
Shandong Airlines Co. Ltd. Class B		596,000		1,379,980
Shandong Chenming Paper Holdings Ltd. Class H		2,040,500		1,794,077
Shandong Luoxin Pharmaceutical Group Stock Co. Ltd. Class H		684,000		1,029,957
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		6,956,000		4,501,772
Shang Gong Group Co. Ltd. Class B^a		836,300		917,421
Shanghai Baosight Software Co. Ltd. Class B		973,100		1,848,890
Shanghai Chlor-Alkali Chemical Co. Ltd. Class B^a		1,865,800		1,511,298
Shanghai Electric Group Co. Ltd. Class H^a		9,850,000		4,381,023
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		1,443,500		4,187,160
Shanghai Greencourt Investment Group Co. Ltd. Class B^a		1,854,600		1,136,870
Shanghai Haixin Group Co. Class B		1,742,000		1,461,538
Shanghai Industrial Holdings Ltd.		1,829,000		4,763,052
Shanghai Industrial Urban Development Group Ltd.		8,022,000		1,861,553
Shanghai Jin Jiang International Hotels Group Co. Ltd. Class H		5,132,000		1,654,043
Shanghai Jinjiang International Industrial Investment Co. Ltd. Class B		668,500		1,143,135
Shanghai Jinjiang International Travel Co. Ltd. Class B		311,800		1,213,837


CONSOLIDATED SCHEDULES OF INVESTMENTS			21

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Shanghai Lingyun Industries Development Co. Ltd. Class B^a		917,395	$	1,221,053
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		3,274,099		5,441,553
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		2,456,800		6,746,362
Shanghai Potevio Co. Ltd. Class B^a		545,300		925,374
Shanghai Shibei Hi-Tech Co. Ltd. Class B		986,900		1,206,979
Shenzhen Expressway Co. Ltd. Class H		2,794,000		2,953,660
Shenzhen International Holdings Ltd.		3,644,750		5,854,718
Shenzhen Investment Ltd.		10,798,000		5,178,530
Shenzhou International Group Holdings Ltd.^b		1,985,000		13,038,418
Shimao Property Holdings Ltd.		4,147,500		5,774,712
Shougang Concord International Enterprises Co. Ltd.^a,b		36,424,000		1,075,334
Shougang Fushan Resources Group Ltd.		11,464,000		2,128,232
Shui On Land Ltd.		13,141,166		3,727,149
Sihuan Pharmaceutical Holdings Group Ltd.		4,439,000		1,001,483
Sina Corp.^a		195,961		14,991,016
Sino Biopharmaceutical Ltd.		15,820,000		10,156,780
Sino Oil And Gas Holdings Ltd.^a,b		53,110,000		1,431,010
Sino-Ocean Group Holding Ltd.		10,758,500		4,993,148
Sinofert Holdings Ltd.^b		11,702,000		1,478,449
Sinolink Worldwide Holdings Ltd.^a		9,700,000		1,100,461
Sinopec Engineering Group Co. Ltd. Class H		4,429,000		3,671,444
Sinopec Kantons Holdings Ltd.		4,260,000		2,059,497
Sinopec Shanghai Petrochemical Co. Ltd. Class H		12,261,000		6,338,558
Sinopharm Group Co. Ltd. Class H		4,114,800		21,086,576


Security	Shares		Value
Sinosoft Technology Group Ltd.^b		2,702,000	$	1,452,585
Sinotrans Ltd. Class H		7,219,000		3,573,785
Sinotrans Shipping Ltd.^a		10,331,000		1,478,378
Skyworth Digital Holdings Ltd.		6,942,000		5,146,034
SMI Holdings Group Ltd.^b		20,688,000		1,840,296
SOHO China Ltd.^b		7,759,000		4,631,343
Sohu.com Inc.^a		117,690		5,006,533
SouFun Holdings Ltd. ADR^a,b		1,046,307		4,708,381
SSY Group Ltd.^b		8,334,411		2,879,585
Sun Art Retail Group Ltd.^b		8,502,000		5,469,427
Sunac China Holdings Ltd.^b		6,708,000		4,661,246
Sunny Optical Technology Group Co. Ltd.		2,511,000		13,418,113
Superb Summit International Group Ltd.^a,b		6,035,000		60,609
TAL Education Group Class A ADR^a		154,976		9,261,366
TCL Communication Technology Holdings Ltd.^b		2,432,000		2,263,711
TCL Multimedia Technology Holdings Ltd.^a,b		2,430,000		1,206,111
Technovator International Ltd.^b		3,156,000		1,273,508
Tencent Holdings Ltd.		19,245,900		500,702,307
Tian Ge Interactive Holdings Ltd.^b,c		1,944,000		1,235,559
Tianjin Capital Environmental Protection Group Co. Ltd. Class H		1,630,000		840,558
Tianjin Development Holdings Ltd.		3,574,000		1,695,597
Tianjin Port Development Holdings Ltd.		9,484,000		1,467,212
Tianneng Power International Ltd.		2,754,000		2,250,989
Tibet Water Resources Ltd.^b		7,457,000		2,720,638
Tingyi Cayman Islands Holding Corp.^b		6,900,000		6,386,953
Tong Ren Tang Technologies Co. Ltd. Class H		2,446,000		4,332,748
Tongda Group Holdings Ltd.^b		12,770,000		2,667,019
Towngas China Co. Ltd.^b		4,433,000		2,554,615
TravelSky Technology Ltd. Class H		3,390,000		7,377,213


22		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Tsingtao Brewery Co. Ltd. Class H		1,294,000	$	4,337,384
Tuniu Corp. ADR^a,b		157,490		1,442,608
United Photovoltaics Group Ltd.^a,b		19,124,000		1,454,625
V1 Group Ltd.^b		31,226,000		1,489,492
Vinda International Holdings Ltd.^b		968,000		1,829,488
Vipshop Holdings Ltd. ADR^a		1,378,399		19,518,130
Viva China Holdings Ltd.^a,b		13,032,000		1,276,865
Want Want China Holdings Ltd.^b		19,967,000		13,153,881
Wasion Group Holdings Ltd.^b		2,446,000		1,384,335
Weichai Power Co. Ltd. Class H		3,496,000		4,412,394
Weiqiao Textile Co. Class H		2,146,500		1,502,626
Welling Holding Ltd.^b		8,278,000		1,515,423
West China Cement Ltd.^a,b		10,452,000		1,051,028
Wisdom Sports Group^a,b		3,592,000		1,217,902
Xiamen International Port Co. Ltd. Class H		4,940,000		987,140
Xingda International Holdings Ltd.		6,111,000		1,985,331
Xinhua Winshare Publishing and Media Co. Ltd. Class H^a		1,943,000		1,978,883
Xinyi Solar Holdings Ltd.^b		10,176,000		4,184,928
XTEP International Holdings Ltd.		3,370,500		1,742,444
Yanchang Petroleum International Ltd.^a		32,820,000		875,849
Yanzhou Coal Mining Co. Ltd. Class H		6,666,000		3,815,650
Yingde Gases Group Co. Ltd.		4,962,500		2,168,805
Yuanda China Holdings Ltd.^a		18,418,000		524,753
YuanShengTai Dairy Farm Ltd.^a,b		19,723,000		1,144,210
Yuexiu Property Co. Ltd.^b		26,160,880		3,979,739
Yuexiu REIT		5,492,000		3,603,865
Yuexiu Transport Infrastructure Ltd.^b		3,544,000		2,458,081
Yuxing InfoTech Investment Holdings Ltd.^a,b		3,730,000		1,202,179
Yuzhou Properties Co. Ltd.		8,034,400		2,796,645
YY Inc. ADR^a,b		106,928		5,501,446
Zhaojin Mining Industry Co. Ltd. Class H^b		3,024,500		3,095,953


Security	Shares		Value
Zhejiang Expressway Co. Ltd. Class H		4,984,000	$	5,557,946
Zhonglu Co. Ltd. Class B		361,000		790,229
Zhongsheng Group Holdings Ltd.^b		2,749,000		2,523,335
Zhuzhou CRRC Times Electric Co. Ltd. Class H		1,916,000		10,189,190
Zijin Mining Group Co. Ltd. Class H		19,626,000		6,527,873
ZTE Corp. Class H		2,591,040		3,500,706

				4,179,158,116
COLOMBIA — 0.28%
Almacenes Exito SA		608,288		3,006,637
Cementos Argos SA		1,727,107		6,899,541
Corp. Financiera Colombiana SA		389,464		5,136,948
Ecopetrol SA^a		17,250,647		7,709,003
Grupo Argos SA/Colombia		986,493		6,585,971
Grupo de Inversiones Suramericana SA		838,293		10,966,092
Interconexion Electrica SA ESP		1,449,959		4,859,704

				45,163,896
CZECH REPUBLIC — 0.14%
CEZ AS		544,385		9,486,232
Komercni Banka AS		288,992		9,764,490
Pegas Nonwovens SA		52,824		1,733,672
Philip Morris CR AS		3,926		2,062,740

				23,047,134
EGYPT — 0.19%
Commercial International Bank Egypt SAE		2,530,343		13,931,212
Egyptian Financial Group-Hermes Holding Co.^a		1,450,454		2,043,388
Ezz Steel^a		791,301		703,086
Global Telecom Holding SAE^a		6,408,004		2,922,586
Global Telecom Holding SAE GDR^a		1,035,059		2,059,767
Juhayna Food Industries		1,184,159		672,094
Orascom Telecom Media And Technology Holding SAE^a		9,784,899		628,088
Orascom Telecom Media And Technology Holding SAE GDR^a		25,000		9,962
Palm Hills Developments SAE		4,371,893		1,211,139


CONSOLIDATED SCHEDULES OF INVESTMENTS			23

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Pioneers Holding For Financial Investments SAE^a		1,278,569	$	1,382,245
Six of October Development & Investment^a		997,636		1,506,574
South Valley Cement^a		1,748,280		856,426
Talaat Moustafa Group		2,977,305		1,924,530

				29,851,097
GREECE — 0.36%
Alpha Bank AE^a,b		4,738,010		9,076,364
Athens Water Supply & Sewage Co. SA (The)		130,118		797,054
Eurobank Ergasias SA^a		6,398,127		3,812,362
FF Group^b		126,928		3,067,642
Hellenic Exchanges-Athens Stock Exchange SA		304,739		1,476,403
Hellenic Telecommunications Organization SA		878,769		8,319,192
Intralot SA-Integrated Lottery Systems & Services^a		446,969		439,568
JUMBO SA		379,988		4,634,165
Metka Industrial-Construction SA^b		124,709		1,051,432
Motor Oil Hellas Corinth Refineries SA		238,060		2,675,254
Mytilineos Holdings SA		372,013		1,615,884
National Bank of Greece SA^a,b		18,520,697		4,352,385
OPAP SA		819,013		6,859,558
Piraeus Bank SA^a		22,929,377		3,728,487
Piraeus Port Authority SA		28,892		399,656
Public Power Corp. SA^a		446,219		1,316,987
Titan Cement Co. SA		175,589		4,067,693

				57,690,086
HUNGARY — 0.25%
Magyar Telekom Telecommunications PLC		1,825,039		2,842,573
MOL Hungarian Oil & Gas PLC		123,523		7,700,129
OTP Bank PLC		784,164		20,455,793
Richter Gedeon Nyrt		476,510		9,761,518

				40,760,013
INDIA — 9.05%
ACC Ltd.		197,580		5,044,382
Adani Enterprises Ltd.		974,145		1,058,948
Adani Ports & Special Economic Zone Ltd.		2,905,194		11,406,910
Adani Power Ltd.^a		3,418,582		1,411,435


Security	Shares		Value
Adani Transmissions Ltd.^a		1,409,508	$	836,613
Aditya Birla Nuvo Ltd.		153,799		3,158,196
AIA Engineering Ltd.		180,972		3,463,113
Ajanta Pharma Ltd.		100,972		2,866,628
Alstom T&D India Ltd.		340,312		1,623,812
Amara Raja Batteries Ltd.		207,831		2,967,884
Ambuja Cements Ltd.		2,532,401		10,510,391
Apollo Hospitals Enterprise Ltd.		292,382		5,893,700
Apollo Tyres Ltd.		897,684		2,453,652
Arvind Ltd.		553,581		2,573,238
Ashok Leyland Ltd.		4,261,512		5,571,082
Asian Paints Ltd.		1,041,498		18,007,325
Aurobindo Pharma Ltd.		955,560		11,284,226
Axis Bank Ltd.		5,404,455		48,165,581
Bajaj Auto Ltd.		291,383		12,959,299
Bajaj Finance Ltd.		59,626		9,803,611
Balkrishna Industries Ltd.		214,099		2,805,793
Bata India Ltd.		219,826		1,754,308
Bayer CropScience Ltd./India		48,932		2,940,596
Berger Paints India Ltd.		1,042,466		4,052,651
Bharat Financial Inclusion Ltd.^a		386,983		4,735,442
Bharat Forge Ltd.		374,689		4,757,325
Bharat Heavy Electricals Ltd.		2,103,684		4,369,456
Bharat Petroleum Corp. Ltd.		890,170		8,009,802
Bharti Airtel Ltd.		3,485,589		17,261,395
Bharti Infratel Ltd.		2,011,643		10,535,819
Biocon Ltd.		255,239		3,493,767
Blue Dart Express Ltd.		24,617		2,000,991
Bosch Ltd.		26,909		9,710,786
Cadila Healthcare Ltd.		772,306		4,392,584
Cairn India Ltd.		1,457,659		4,334,669
Canara Bank Ltd.^a		466,540		1,954,424
Ceat Ltd.		85,510		1,140,474
Century Textiles & Industries Ltd.		135,526		1,466,057
CESC Ltd.		286,607		2,852,803
Cipla Ltd.		1,283,587		10,981,502
Coal India Ltd.		2,488,566		12,392,665
Container Corp. of India Ltd.		138,519		2,884,451
Credit Analysis & Research Ltd.		132,188		2,465,621
CRISIL Ltd.		100,984		3,313,382
Crompton Greaves Consumer Electricals Ltd.^a		1,320,287		3,247,981
Crompton Greaves Ltd.^a		1,561,289		1,941,995
Dabur India Ltd.		2,061,496		8,945,360
DCB Bank Ltd.^a		1,019,926		1,835,928


24		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Dewan Housing Finance Corp. Ltd.		735,817	$	3,192,899
Dish TV India Ltd.^a		1,790,487		2,637,473
Divi’s Laboratories Ltd.		308,776		6,097,600
Dr. Reddy’s Laboratories Ltd.		407,919		18,820,495
Eicher Motors Ltd.		43,359		14,729,856
Exide Industries Ltd.		924,572		2,558,208
Federal Bank Ltd.		4,941,968		5,073,321
Finolex Cables Ltd.		501,397		3,325,302
GAIL (India) Ltd.		1,111,110		6,369,346
Gateway Distriparks Ltd.		437,099		1,832,069
GlaxoSmithKline Consumer Healthcare Ltd.		43,866		4,107,795
Glenmark Pharmaceuticals Ltd.		509,873		6,403,676
GMR Infrastructure Ltd.^a		8,743,317		1,775,558
Godrej Consumer Products Ltd.		428,128		9,696,009
Godrej Industries Ltd.		409,803		2,575,878
GRUH Finance Ltd.		553,485		2,730,647
Gujarat Pipavav Port Ltd.		645,758		1,715,400
Havells India Ltd.		980,273		6,112,618
HCL Technologies Ltd.		1,954,780		22,725,011
Hero Motocorp Ltd.		172,214		9,106,616
Hexaware Technologies Ltd.		458,976		1,391,594
Hindalco Industries Ltd.		3,870,275		9,203,245
Hindustan Unilever Ltd.		2,244,696		30,737,621
Housing Development & Infrastructure Ltd.^a		1,102,248		1,524,911
Housing Development Finance Corp. Ltd.		5,149,821		108,075,495
ICICI Bank Ltd.		3,819,588		14,714,853
Idea Cellular Ltd.		4,486,051		6,259,840
IFCI Ltd.		2,615,783		1,107,323
India Cements Ltd. (The)		932,143		2,085,038
Indiabulls Housing Finance Ltd.		1,025,232		12,540,989
Indian Hotels Co. Ltd.		1,559,157		3,028,913
Infosys Ltd.		6,290,076		97,290,955
IRB Infrastructure Developers Ltd.		679,333		2,299,102
ITC Ltd.		11,591,740		45,011,675
Jain Irrigation Systems Ltd.		1,703,212		2,141,413
Jaiprakash Associates Ltd.^a		5,030,368		875,075
Jammu & Kashmir Bank Ltd. (The)		1,318,879		1,385,443
Jindal Steel & Power Ltd.^a		1,494,118		1,906,412
JSW Steel Ltd.		314,489		8,232,502


Security	Shares		Value
Jubilant Foodworks Ltd.		159,576	$	2,798,239
Jubilant Life Sciences Ltd.		279,724		2,246,104
Just Dial Ltd.		176,814		1,310,198
Kajaria Ceramics Ltd.		174,934		3,294,934
Karur Vysya Bank Ltd. (The)		347,357		2,500,535
KPIT Technologies Ltd.		751,933		1,428,751
L&T Finance Holdings Ltd.		1,948,627		2,820,956
Larsen & Toubro Ltd.		1,096,915		24,780,910
LIC Housing Finance Ltd.		1,106,378		9,467,074
Lupin Ltd.		775,166		17,156,205
Mahindra & Mahindra Financial Services Ltd.		1,032,251		5,491,107
Mahindra & Mahindra Ltd.		1,285,651		27,579,009
Manappuram Finance Ltd.		1,830,496		2,331,511
Marico Ltd.		1,722,419		7,497,165
Maruti Suzuki India Ltd.		365,746		27,599,705
Max Financial Services Ltd.		492,098		4,260,392
Max India Ltd.^a		582,339		1,344,327
MindTree Ltd.		394,121		3,310,628
Motherson Sumi Systems Ltd.		1,132,333		5,453,696
Mphasis Ltd.		332,030		2,813,108
MRF Ltd.		4,663		2,606,309
NCC Ltd./India		1,423,269		1,804,323
Nestle India Ltd.		85,349		8,316,398
NIIT Technologies Ltd.		199,208		1,189,834
NTPC Ltd.		5,660,799		13,460,986
Oil & Natural Gas Corp. Ltd.		2,822,236		9,958,106
Page Industries Ltd.		22,279		4,941,650
Persistent Systems Ltd.		205,852		1,913,283
PI Industries Ltd.		258,071		3,109,607
Piramal Enterprises Ltd.		290,407		7,972,641
Power Finance Corp. Ltd.		2,234,384		4,127,121
PTC India Ltd.		1,790,751		2,251,474
Rajesh Exports Ltd.		341,925		2,243,675
Rallis India Ltd.		542,539		1,838,168
Ramco Cements Ltd. (The)		350,167		3,020,105
Raymond Ltd.		247,889		1,529,827
Redington India Ltd.		1,218,067		1,935,230
Reliance Capital Ltd.		377,331		2,996,336
Reliance Communications Ltd.^a		3,073,254		2,475,766
Reliance Industries Ltd.		4,430,448		70,125,054
Reliance Infrastructure Ltd.		358,332		3,192,456
Rural Electrification Corp. Ltd.		1,071,516		3,813,586
Shree Cement Ltd.		31,607		8,105,777


CONSOLIDATED SCHEDULES OF INVESTMENTS			25

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Shriram Transport Finance Co. Ltd.		524,309	$	9,684,881
Siemens Ltd.		289,707		5,476,834
Sintex Industries Ltd.		1,334,481		1,491,502
Sobha Ltd.		347,137		1,484,805
SRF Ltd.		75,521		1,941,308
State Bank of India		5,396,929		20,348,284
Strides Shasun Ltd.		178,665		2,537,779
Sun Pharma Advanced Research Co. Ltd.^a		358,770		2,036,530
Sun Pharmaceuticals Industries Ltd.		3,336,477		38,643,249
Sun TV Network Ltd.		368,716		2,600,888
Sundaram Finance Ltd.		145,568		3,162,088
Suzlon Energy Ltd.^a		9,183,848		2,166,713
Tata Communications Ltd.		347,651		2,730,802
Tata Consultancy Services Ltd.		1,624,966		60,934,405
Tata Elxsi Ltd.		39,744		937,399
Tata Global Beverages Ltd.		1,507,465		3,156,965
Tata Motors Ltd.		5,403,556		43,384,979
Tata Motors Ltd. Class A		1,269,080		6,510,265
Tata Power Co. Ltd.		4,292,944		5,032,046
Tata Steel Ltd.		1,027,465		5,678,136
Tech Mahindra Ltd.		850,915		5,956,532
Thermax Ltd.		167,844		2,097,361
Titan Co. Ltd.		1,193,568		7,458,686
Torrent Power Ltd.		483,739		1,361,216
TTK Prestige Ltd.		23,339		1,710,260
Tube Investments of India Ltd.		375,465		3,135,696
TV18 Broadcast Ltd.^a		2,354,520		1,481,903
TVS Motor Co. Ltd.		476,451		2,319,648
Ultratech Cement Ltd.		140,905		8,476,392
Union Bank of India		601,964		1,273,679
United Spirits Ltd.^a		234,050		8,083,759
UPL Ltd.		1,250,183		11,927,795
VA Tech Wabag Ltd.		222,138		1,887,360
Vakrangee Ltd.		484,188		1,414,896
Vedanta Ltd.		3,552,537		9,017,938
Vijaya Bank^a		2,579,006		1,486,481
Voltas Ltd.		485,731		2,830,832
Welspun India Ltd.		1,152,889		838,371
Wipro Ltd.		2,202,995		16,172,951
Wockhardt Ltd.^a		116,766		1,425,619
Yes Bank Ltd.		930,297		18,976,836


Security	Shares		Value
Zee Entertainment Enterprises Ltd.		2,085,276	$	16,798,662

				1,447,521,226
INDONESIA — 2.65%
Ace Hardware Indonesia Tbk PT		30,813,000		2,322,880
Adaro Energy Tbk PT		49,674,900		4,306,531
Adhi Karya Persero Tbk PT		7,137,600		1,436,667
AKR Corporindo Tbk PT		6,790,700		3,417,107
Alam Sutera Realty Tbk PT^a		43,003,000		1,594,985
Aneka Tambang Persero Tbk PT^a		34,771,143		1,887,314
Arwana Citramulia Tbk PT		25,379,200		1,061,851
Astra International Tbk PT		68,495,800		42,083,737
Bank Bukopin Tbk		24,790,900		1,336,260
Bank Central Asia Tbk PT		41,841,500		47,471,887
Bank Danamon Indonesia Tbk PT		11,938,800		3,672,092
Bank Mandiri Persero Tbk PT		32,106,900		27,169,239
Bank Negara Indonesia Persero Tbk PT		25,550,000		11,315,963
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT		11,869,600		1,440,637
Bank Rakyat Indonesia Persero Tbk PT		37,731,500		33,137,729
Bank Tabungan Negara Persero Tbk PT		17,464,476		2,646,332
Bumi Serpong Damai Tbk PT		28,389,300		4,601,357
Charoen Pokphand Indonesia Tbk PT		25,561,500		7,187,666
Ciputra Development Tbk PT		39,416,727		4,590,942
Eagle High Plantations Tbk PT^a		37,698,400		596,808
Gudang Garam Tbk PT		1,664,900		8,082,892
Hanjaya Mandala Sampoerna Tbk PT		32,432,100		9,730,852
Hanson International Tbk PT^a		263,163,300		3,114,711
Indocement Tunggal Prakarsa Tbk PT		5,034,200		6,717,327
Indofood CBP Sukses Makmur Tbk PT		8,487,800		6,382,646
Indofood Sukses Makmur Tbk PT		15,193,700		9,077,276
Jasa Marga Persero Tbk PT		7,927,300		2,904,386


26		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Kalbe Farma Tbk PT		73,414,100	$	9,934,286
Kawasan Industri Jababeka Tbk PT		84,823,013		2,033,450
Krakatau Steel Persero Tbk PT^a		13,865,100		945,942
Link Net Tbk PT		4,676,900		1,565,431
Lippo Cikarang Tbk PT^a		2,959,400		1,461,294
Lippo Karawaci Tbk PT		62,847,900		5,211,662
Matahari Department Store Tbk PT		7,946,500		11,981,153
Media Nusantara Citra Tbk PT		18,253,600		2,642,059
Mitra Adiperkasa Tbk PT^a		3,559,500		1,234,354
Modernland Realty Tbk PT^a		42,860,700		1,240,747
Multipolar Tbk PT^a		28,201,354		905,675
Pakuwon Jati Tbk PT		90,905,900		4,077,573
Panin Financial Tbk PT^a		80,235,500		1,330,706
Pembangunan Perumahan Persero Tbk PT		9,328,600		3,059,134
Perusahaan Gas Negara Persero Tbk PT		37,129,400		8,453,131
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		11,989,300		1,446,127
Ramayana Lestari Sentosa Tbk PT		16,638,000		1,555,305
Salim Ivomas Pratama Tbk PT		13,519,000		524,861
Semen Indonesia Persero Tbk PT		9,981,500		7,449,442
Siloam International Hospitals Tbk PT^a		1,161,600		989,527
Sugih Energy Tbk PT^a		82,105,800		705,621
Summarecon Agung Tbk PT		35,738,400		4,714,829
Surya Citra Media Tbk PT		21,257,500		4,855,652
Tambang Batubara Bukit Asam Persero Tbk PT		2,702,500		2,022,036
Telekomunikasi Indonesia Persero Tbk PT		172,241,500		54,665,414
Timah Persero Tbk PT		21,193,452		1,278,158
Tower Bersama Infrastructure Tbk PT		8,660,000		3,639,616
Unilever Indonesia Tbk PT		5,311,400		18,278,584
United Tractors Tbk PT		5,850,900		8,270,213
Waskita Karya Persero Tbk PT		18,474,000		3,885,598
Wijaya Karya Persero Tbk PT		8,994,000		2,196,801
XL Axiata Tbk PT^a		13,170,200		2,819,704

				424,662,159


Security	Shares		Value
MALAYSIA — 2.86%
AEON Credit Service M Bhd^b		520,000	$	1,920,750
AirAsia Bhd		4,408,200		3,260,905
Alliance Financial Group Bhd		4,106,100		3,999,284
AMMB Holdings Bhd		6,268,000		6,784,988
Astro Malaysia Holdings Bhd		6,037,900		4,392,012
Axiata Group Bhd		9,138,200		12,370,538
Berjaya Corp. Bhd		13,774,700		1,137,844
Berjaya Sports Toto Bhd		2,294,673		1,895,489
British American Tobacco Malaysia Bhd		509,400		6,182,386
Bumi Armada Bhd^a		9,114,600		1,674,363
Bursa Malaysia Bhd		1,994,400		4,278,456
Cahya Mata Sarawak Bhd^b		2,291,000		2,152,314
Capitaland Malaysia Mall Trust^b		5,704,800		2,208,491
Carlsberg Brewery Malaysia Bhd		699,600		2,535,845
CIMB Group Holdings Bhd		10,270,500		12,155,936
Dialog Group Bhd		13,098,796		4,974,022
DiGi.Com Bhd^b		12,054,700		14,921,611
DRB-Hicom Bhd		2,655,600		857,807
Eastern & Oriental Bhd^a,b		4,295,429		1,768,800
Felda Global Ventures Holdings Bhd		4,523,400		2,531,899
Gamuda Bhd		5,759,200		6,930,069
Genting Bhd		7,679,400		14,769,898
Genting Malaysia Bhd		10,316,500		11,294,602
Genting Plantations Bhd^b		970,800		2,537,413
HAP Seng Consolidated Bhd^b		2,156,800		4,137,567
Hartalega Holdings Bhd		2,761,500		2,982,461
Hong Leong Bank Bhd		2,490,300		8,031,839
Hong Leong Financial Group Bhd		955,400		3,788,148
IHH Healthcare Bhd		10,113,400		16,309,120
IJM Corp. Bhd		9,773,300		8,265,915
Inari Amertron Bhd^b		2,971,000		2,322,296
IOI Corp. Bhd		7,777,900		8,476,962
IOI Properties Group Bhd		5,725,173		3,557,499
KNM Group Bhd^a,b		11,422,800		1,168,897
Kossan Rubber Industries		1,365,800		2,212,626
KPJ Healthcare Bhd		2,656,250		2,809,842
Kuala Lumpur Kepong Bhd		1,434,500		8,340,651
Lafarge Malaysia Bhd		1,438,600		2,855,562
Magnum Bhd		2,584,200		1,484,696
Mah Sing Group Bhd		5,975,923		2,342,921


CONSOLIDATED SCHEDULES OF INVESTMENTS			27

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Malayan Banking Bhd^b		11,366,200	$	21,916,825
Malaysia Airports Holdings Bhd		2,643,900		4,107,156
Malaysia Building Society Bhd		6,455,400		1,368,917
Malaysian Resources Corp. Bhd		3,397,200		1,047,097
Maxis Bhd^b		6,514,300		10,087,487
Media Prima Bhd		4,841,800		1,683,378
MISC Bhd		3,589,200		6,690,754
My EG Services Bhd		5,911,900		3,192,470
OSK Holdings Bhd		2,606,400		1,002,585
Parkson Holdings Bhd^a		3,412,302		610,016
Pavilion REIT		5,225,300		2,383,628
Petronas Chemicals Group Bhd		8,414,800		13,881,152
Petronas Dagangan Bhd		781,000		4,506,325
Petronas Gas Bhd		2,454,800		13,437,692
POS Malaysia Bhd		2,086,300		1,697,643
PPB Group Bhd		1,607,700		6,374,508
Public Bank Bhd		9,377,560		45,783,674
QL Resources Bhd		2,868,750		3,133,661
RHB Bank Bhd		3,004,466		3,704,187
RHB Bank Bhd New		1,769,000		4
Sapurakencana Petroleum Bhd^b		11,464,400		4,466,466
Sime Darby Bhd		8,653,500		16,835,437
Sunway Bhd^b		2,410,200		1,812,627
Sunway Construction Group Bhd		3,835,470		1,551,022
Sunway REIT		5,920,000		2,510,763
Supermax Corp. Bhd^b		2,154,200		1,078,295
Ta Ann Holdings Bhd		2,005,160		1,765,114
TA Enterprise Bhd		6,137,300		764,230
Telekom Malaysia Bhd		3,654,700		6,164,011
Tenaga Nasional Bhd		11,470,100		41,688,885
TIME dotCom Bhd		1,546,000		3,076,370
Top Glove Corp. Bhd		2,892,900		3,031,642
UEM Sunrise Bhd^b		5,302,300		1,412,029
UMW Holdings Bhd^b		1,735,500		2,383,611
UOA Development Bhd		2,678,800		1,631,522
WCT Holdings Bhd		4,313,468		1,680,503
Westports Holdings Bhd		3,806,800		4,177,108
YTL Corp. Bhd		13,761,800		5,700,857
YTL Power International Bhd		6,741,335		2,476,782

				457,439,157
MEXICO — 3.71%
Alfa SAB de CV		9,440,400		15,304,768
Alsea SAB de CV		1,986,500		7,123,238


Security	Shares		Value
America Movil SAB de CV		106,656,100	$	63,647,443
Arca Continental SAB de CV		1,542,500		9,579,339
Axtel SAB de CV CPO^a,b		3,885,600		1,041,995
Banregio Grupo Financiero SAB de CV		950,000		5,396,780
Bolsa Mexicana de Valores SAB de CV		1,696,500		3,104,612
Cemex SAB de CV CPO^a		47,146,060		38,903,698
Coca-Cola Femsa SAB de CV Series L		1,671,400		12,405,674
Concentradora Fibra Hotelera Mexicana SA de CV		2,151,900		1,601,202
Consorcio ARA SAB de CV		4,654,300		1,694,603
Controladora Vuela Cia. de Aviacion SAB de CV Class A^a		2,344,800		4,155,554
Corp Inmobiliaria Vesta SAB de CV		1,978,100		2,824,247
El Puerto de Liverpool SAB de CV Series C1		632,840		6,868,127
Fibra Uno Administracion SA de CV		8,420,500		16,226,267
Fomento Economico Mexicano SAB de CV		6,267,700		57,210,254
Genomma Lab Internacional SAB de CV Series B^a		2,867,000		3,206,026
Gentera SAB de CV		3,720,600		7,189,299
Gruma SAB de CV Series B		770,345		10,216,831
Grupo Aeromexico SAB de CV^a		1,759,000		3,522,894
Grupo Aeroportuario del Centro Norte SAB de CV		777,000		4,757,433
Grupo Aeroportuario del Pacifico SAB de CV Series B		1,265,800		12,528,024
Grupo Aeroportuario del Sureste SAB de CV Series B		741,655		11,270,994
Grupo Bimbo SAB de CV		5,887,700		16,690,723
Grupo Carso SAB de CV Series A1		2,073,700		8,420,637
Grupo Comercial Chedraui SA de CV		1,359,900		3,272,048
Grupo Famsa SAB de CV Series A^a,b		1,119,953		584,052


28		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Grupo Financiero Banorte SAB de CV		8,457,900	$	45,367,290
Grupo Financiero Inbursa SAB de CV Series O		8,209,600		14,270,944
Grupo Financiero Santander Mexico SAB de CV Series B		6,186,600		11,764,171
Grupo Herdez SAB de CV^b		1,206,600		2,586,656
Grupo Lala SAB de CV		2,427,200		5,066,971
Grupo Mexico SAB de CV Series B		13,076,200		32,612,970
Grupo Televisa SAB		8,358,700		45,464,240
Industrias Bachoco SAB de CV Series B		737,500		3,255,455
Industrias CH SAB de CV Series B^a,b		521,800		2,362,774
Industrias Penoles SAB de CV		475,000		10,966,506
Kimberly-Clark de Mexico SAB de CV Series A		5,245,500		12,537,770
La Comer SAB de CV^a,b		1,771,200		1,607,046
Macquarie Mexico Real Estate Management SA de CV		2,818,300		3,650,441
Mexichem SAB de CV		3,663,300		8,406,539
OHL Mexico SAB de CV^a		2,699,200		3,802,305
PLA Administradora Industrial S. de RL de CV^b		2,141,600		3,580,920
Promotora y Operadora de Infraestructura SAB de CV		928,970		11,120,808
Qualitas Controladora SAB de CV		1,341,600		1,995,113
Telesites SAB de CV^a		5,829,195		3,416,808
TV Azteca SAB de CV CPO^b		5,640,400		1,031,302
Urbi Desarrollos Urbanos SAB de CV^a,b		558,900		—
Wal-Mart de Mexico SAB de CV		17,963,700		40,861,319

				594,475,110
PERU — 0.33%
Cia. de Minas Buenaventura SA ADR^a		652,401		8,063,676
Credicorp Ltd.		231,943		36,340,829
Southern Copper Corp.		293,574		7,580,081

				51,984,586
PHILIPPINES — 1.41%
Aboitiz Equity Ventures Inc.		6,767,690		10,893,374
Aboitiz Power Corp.		4,934,100		4,818,147
Alliance Global Group Inc.		6,926,300		2,422,979


Security	Shares		Value
Ayala Corp.		868,590	$	16,311,112
Ayala Land Inc.		25,098,100		20,737,780
Bank of the Philippine Islands		2,718,445		6,155,080
BDO Unibank Inc.		5,660,970		13,886,659
Belle Corp.		19,608,900		1,296,178
Cebu Air Inc.		838,710		2,133,000
Cosco Capital Inc.		8,884,800		1,653,208
D&L Industries Inc.		9,469,900		2,292,531
DMCI Holdings Inc.		14,585,300		3,599,763
DoubleDragon Properties Corp.		2,390,310		3,075,418
Energy Development Corp.		30,313,600		3,727,802
Filinvest Land Inc.		38,959,000		1,605,350
First Gen Corp.		4,321,800		2,360,550
First Philippine Holdings Corp.		662,840		1,038,466
Globe Telecom Inc.		111,410		4,710,327
GT Capital Holdings Inc.		281,435		9,271,439
International Container Terminal Services Inc.		1,827,830		3,295,154
JG Summit Holdings Inc.		9,913,823		16,595,733
Jollibee Foods Corp.		1,521,160		7,998,373
Lopez Holdings Corp.		6,533,300		1,109,098
Manila Water Co. Inc.		4,337,900		2,606,743
Megaworld Corp.		36,474,600		3,686,991
Melco Crown Philippines Resorts Corp.^a		7,999,000		652,349
Metro Pacific Investments Corp.		45,256,100		6,721,155
Metropolitan Bank & Trust Co.		2,303,032		4,127,120
Nickel Asia Corp.		5,235,124		699,964
PLDT Inc.		324,565		12,719,298
Rizal Commercial Banking Corp.		1,055,590		734,008
Robinsons Land Corp.		5,860,400		4,012,163
Security Bank Corp.		896,550		4,106,101
SM Investments Corp.		833,742		12,167,498
SM Prime Holdings Inc.		28,716,896		18,396,810
Universal Robina Corp.		2,931,770		11,766,090
Vista Land & Lifescapes Inc.		16,415,300		2,096,170

				225,479,981
POLAND — 1.07%
Alior Bank SA^a,b		336,158		4,579,969
Asseco Poland SA		286,630		4,177,784
Bank Handlowy w Warszawie SA		128,016		2,382,698
Bank Millennium SA^a		2,308,948		3,417,953
Bank Pekao SA		537,175		18,025,546


CONSOLIDATED SCHEDULES OF INVESTMENTS			29

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Bank Zachodni WBK SA^b		123,344	$	10,122,700
Budimex SA		50,293		2,533,069
CCC SA		99,176		4,614,783
Ciech SA		117,649		2,030,023
Cyfrowy Polsat SA^a		761,552		4,789,696
Enea SA^a		849,976		2,142,678
Energa SA		746,936		1,546,827
Eurocash SA		280,284		3,081,343
Getin Holding SA^a		1,330,609		329,986
Getin Noble Bank SA^a,b		5,268,979		687,021
Globe Trade Centre SA^a,b		954,271		1,756,619
Grupa Azoty SA		169,336		2,779,875
Grupa Lotos SA^a		344,475		2,558,451
KGHM Polska Miedz SA		465,408		8,715,951
KRUK SA		3,900		224,347
LPP SA		4,548		5,232,465
Lubelski Wegiel Bogdanka SA		54,363		778,332
mBank SA^a		54,910		5,468,047
Netia SA		1,348,545		1,617,006
Orange Polska SA		2,195,740		3,020,206
PGE Polska Grupa Energetyczna SA		2,831,918		8,355,257
Polski Koncern Naftowy ORLEN SA		1,107,736		18,408,693
Polskie Gornictwo Naftowe i Gazownictwo SA		6,140,826		8,368,109
Powszechna Kasa Oszczednosci Bank Polski SA^a		2,988,693		20,302,344
Powszechny Zaklad Ubezpieczen SA		1,903,245		13,454,363
Synthos SA^a		2,091,533		2,074,769
Tauron Polska Energia SA^a		3,668,171		2,607,160
Warsaw Stock Exchange		186,149		1,672,859

				171,856,929
QATAR — 0.88%
Al Meera Consumer Goods Co. QSC		24,721		1,486,784
Barwa Real Estate Co.		299,277		2,999,879
Commercial Bank QSC (The)		522,601		6,027,776
Doha Bank QSC		270,373		2,788,116
Ezdan Holding Group QSC		2,744,325		14,168,731
Gulf International Services QSC		179,492		1,759,750
Industries Qatar QSC		511,735		15,739,855
Masraf Al Rayan QSC		1,255,913		13,106,319


Security	Shares		Value
Mazaya Qatar Real Estate Development QSC^a		339,416	$	1,361,821
Medicare Group		34,293		861,716
Ooredoo QSC		274,302		7,736,366
Qatar Electricity & Water Co. QSC		92,370		5,491,948
Qatar Gas Transport Co. Ltd.		940,099		6,454,330
Qatar Industrial Manufacturing Co. QSC		102,986		1,247,252
Qatar Insurance Co. SAQ		420,051		10,035,958
Qatar Islamic Bank SAQ		216,773		6,596,029
Qatar National Bank SAQ		732,052		32,769,296
Qatar National Cement Co. QSC		56,728		1,367,822
Qatari Investors Group QSC		122,565		1,797,402
Salam International Investment Ltd. QSC		540,949		1,775,259
United Development Co. QSC		226,645		1,271,605
Vodafone Qatar QSC^a		1,162,274		3,798,333

				140,642,347
RUSSIA — 3.06%
Aeroflot PJSC^a		2,910,200		4,404,326
Alrosa PJSC		9,271,200		10,725,179
Gazprom PJSC		27,481,930		56,736,616
Gazprom PJSC ADR		6,721,554		27,188,686
Inter RAO UES PJSC		114,927,000		4,955,532
LSR Group PJSC GDR^d		1,008,456		2,964,861
Lukoil PJSC		925,753		41,511,364
Lukoil PJSC ADR		524,855		23,539,747
M Video OJSC		603,170		3,195,737
Magnit PJSC GDR^d		970,299		38,268,593
Mechel PJSC^a		453,109		951,529
MegaFon PJSC GDR^d		354,606		3,599,251
MMC Norilsk Nickel PJSC		201,478		29,662,446
Mobile TeleSystems PJSC ADR		1,787,553		14,532,806
Moscow Exchange MICEX-RTS PJSC		5,499,460		10,686,252
Novatek OJSC GDR^d		321,430		34,650,154
PhosAgro PJSC GDR^d		404,313		5,417,794
Rosneft PJSC		1,206,660		6,367,316
Rosneft PJSC GDR^d		2,223,934		11,620,055
Rostelecom PJSC		4,171,580		5,236,939
RusHydro PJSC		456,851,000		5,556,953
Sberbank of Russia PJSC		12,641,030		27,736,075


30		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Sberbank of Russia PJSC ADR		5,494,596	$	50,385,445
Severstal PJSC		816,350		9,511,226
Sistema PJSC FC GDR^d		692,719		5,881,184
Surgutneftegas OJSC		21,861,750		10,462,056
Surgutneftegas OJSC ADR		639,355		3,013,919
Tatneft PJSC Class S		5,097,130		24,958,132
VTB Bank PJSC		5,421,870,000		5,650,677
VTB Bank PJSC GDR^d		4,675,309		9,561,007

				488,931,857
SOUTH AFRICA — 6.54%
Adcock Ingram Holdings Ltd.		344,137		1,086,380
Advtech Ltd.		2,479,905		2,752,238
Aeci Ltd.		477,049		3,339,698
African Rainbow Minerals Ltd.		387,348		2,298,687
Anglo American Platinum Ltd.^a		179,430		4,820,562
AngloGold Ashanti Ltd.^a		1,396,594		22,758,726
Aspen Pharmacare Holdings Ltd.		1,175,678		28,125,217
Astral Foods Ltd.		194,134		1,720,458
Attacq Ltd.^a,b		2,065,951		2,527,303
AVI Ltd.		1,150,819		6,960,843
Barclays Africa Group Ltd.		1,438,245		14,554,336
Barloworld Ltd.		730,455		4,130,300
Bid Corp. Ltd.^a		1,085,876		19,925,481
Bidvest Group Ltd. (The)		1,084,009		11,198,021
Blue Label Telecoms Ltd.		2,444,534		3,164,870
Brait SE^a		1,166,799		9,238,188
Capitec Bank Holdings Ltd.		145,424		5,757,799
Cashbuild Ltd.		89,061		2,362,084
City Lodge Hotels Ltd.		187,309		2,062,237
Clicks Group Ltd.^b		879,983		7,242,412
Clover Industries Ltd.		1,436,044		1,859,206
Coronation Fund Managers Ltd.		823,558		3,903,381
DataTec Ltd.		723,894		2,459,857
Discovery Ltd.		1,232,304		10,036,551
Emira Property Fund Ltd.		2,080,978		2,001,192
EOH Holdings Ltd.		443,148		4,329,338
Exxaro Resources Ltd.		509,073		2,602,771
Famous Brands Ltd.		288,777		2,983,122
FirstRand Ltd.		11,447,763		34,286,922
Fortress Income Fund Ltd.		2,643,710		6,119,603


Security	Shares		Value
Fortress Income Fund Ltd. Class A		3,018,009	$	3,369,946
Foschini Group Ltd. (The)		701,642		6,232,886
Gold Fields Ltd.		2,666,653		13,612,224
Grindrod Ltd.^b		2,137,120		1,663,027
Growthpoint Properties Ltd.		6,958,613		12,026,351
Harmony Gold Mining Co. Ltd.^a,b		1,362,870		4,857,155
Hosken Consolidated Investments Ltd.		254,056		2,285,168
Hudaco Industries Ltd.		234,310		1,640,185
Hyprop Investments Ltd.		812,572		7,099,578
Impala Platinum Holdings Ltd.^a		2,080,070		7,981,484
Imperial Holdings Ltd.		488,111		5,232,029
Investec Ltd.		763,911		4,456,535
JSE Ltd.		347,216		3,681,198
Lewis Group Ltd.^b		398,064		1,122,705
Liberty Holdings Ltd.		412,754		3,163,368
Life Healthcare Group Holdings Ltd.		3,229,856		8,451,012
Massmart Holdings Ltd.		391,689		3,444,879
Metair Investments Ltd.		944,107		1,270,431
MMI Holdings Ltd./South Africa		3,328,126		5,102,743
Mondi Ltd.		395,571		7,984,463
Mpact Ltd.		811,270		1,791,348
Mr. Price Group Ltd.		815,155		10,219,526
MTN Group Ltd.		5,645,566		46,118,670
Murray & Roberts Holdings Ltd.		2,039,958		1,770,423
Nampak Ltd.		2,120,888		2,731,441
Naspers Ltd. Class N		1,491,986		243,963,689
Nedbank Group Ltd.		669,598		9,398,122
Netcare Ltd.		3,204,967		7,155,233
New Europe Property Investments PLC		826,730		9,184,172
Northam Platinum Ltd.^a,b		1,130,796		3,727,270
Omnia Holdings Ltd.		251,094		2,947,261
Pick n Pay Stores Ltd.		1,004,456		5,030,421
Pioneer Foods Group Ltd.		447,963		5,175,543
PPC Ltd.^b		2,376,336		959,310
PSG Group Ltd.		329,631		4,210,291
Rand Merchant Investment Holdings Ltd.		2,389,869		6,789,147
Redefine Properties Ltd.		14,024,835		10,503,745
Remgro Ltd.		1,636,524		27,995,464
Resilient REIT Ltd.		1,014,655		8,137,017


CONSOLIDATED SCHEDULES OF INVESTMENTS			31

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Reunert Ltd.		597,879	$	2,472,107
RMB Holdings Ltd.		2,392,871		9,546,017
Royal Bafokeng Platinum Ltd.^a		305,206		987,336
SA Corporate Real Estate Fund Nominees Pty Ltd.		7,512,932		2,665,292
Sanlam Ltd.		4,794,964		20,360,629
Sappi Ltd.^a		1,889,575		9,298,813
Sasol Ltd.		1,879,998		47,294,615
Shoprite Holdings Ltd.		1,461,848		18,727,439
Sibanye Gold Ltd.		2,543,431		9,857,985
SPAR Group Ltd. (The)		640,901		8,362,902
Standard Bank Group Ltd.		4,399,010		39,804,147
Steinhoff International Holdings NV Class H		9,850,256		59,058,089
Sun International Ltd./South Africa		454,487		2,903,757
Super Group Ltd./South Africa^a		1,348,512		3,712,632
Telkom SA SOC Ltd.		900,146		3,719,473
Tiger Brands Ltd.		555,018		14,390,941
Tongaat Hulett Ltd.		383,982		3,223,391
Trencor Ltd.		700,514		1,674,380
Truworths International Ltd.		1,479,699		7,657,872
Tsogo Sun Holdings Ltd.		1,439,286		2,975,577
Vodacom Group Ltd.		1,275,997		13,261,943
Vukile Property Fund Ltd.		2,075,913		2,405,461
Wilson Bayly Holmes-Ovcon Ltd.		239,549		2,421,677
Woolworths Holdings Ltd./South Africa		3,384,168		18,546,726
Zeder Investments Ltd.		4,989,861		2,316,189

				1,046,738,633
SOUTH KOREA — 14.63%
Able C&C Co. Ltd.^b		50,542		1,090,166
Advanced Process Systems Corp.^a,b		85,556		1,492,434
AeroSpace Technology of Korea Inc.^a,b		53,649		916,604
Agabang & Co.^a,b		116,869		797,644
Ahnlab Inc.^b		29,400		1,626,888
AK Holdings Inc.^b		21,687		1,163,123
ALUKO Co. Ltd.^b		163,872		734,117
Amicogen Inc.^b		28,574		1,524,801
AmorePacific Corp.		109,331		37,849,117
AmorePacific Group		99,151		12,894,076
Asiana Airlines Inc.^a		360,078		1,734,187
ATGen Co. Ltd.^a,b		33,598		1,392,132


Security	Shares		Value
BGF retail Co. Ltd.^b		35,076	$	6,370,305
Binex Co. Ltd.^a,b		107,781		2,029,956
Binggrae Co. Ltd.^b		29,028		1,437,081
BNK Financial Group Inc.		847,740		6,728,699
Boditech Med Inc.^a,b		56,985		1,387,572
Bukwang Pharmaceutical Co. Ltd.^b		80,096		1,997,012
Byucksan Corp.^b		188,390		759,474
Caregen Co. Ltd.^b		14,444		1,550,625
Cell Biotech Co. Ltd.^b		25,206		1,168,745
Celltrion Inc.^a,b		255,773		24,499,154
Chabiotech Co. Ltd.^a,b		149,987		2,125,376
Cheil Worldwide Inc.		234,657		3,346,230
Chong Kun Dang Pharmaceutical Corp.^b		21,473		1,921,978
CJ CGV Co. Ltd.^b		49,722		3,678,982
CJ CheilJedang Corp.		27,072		9,456,990
CJ Corp.		50,491		8,649,131
CJ E&M Corp.		68,392		4,262,999
CJ Freshway Corp.^b		31,114		1,070,154
CJ Korea Express Corp.^a,b		25,715		4,635,619
CJ O Shopping Co. Ltd.		11,822		1,679,466
CMG Pharmaceutical Co. Ltd.^a,b		268,257		937,095
Com2uSCorp.^a,b		35,929		3,325,446
Coreana Cosmetics Co. Ltd.^b		114,373		754,964
Cosmax Inc.^b		25,388		3,335,733
COSON Co. Ltd.^a,b		76,215		1,079,997
Coway Co. Ltd.		183,782		13,746,564
Crown Confectionery Co. Ltd.^b		31,171		816,317
CrucialTec Co. Ltd.^a,b		109,671		968,842
CrystalGenomics Inc.^a,b		65,973		1,526,550
Dae Hwa Pharmaceutical Co. Ltd.^b		40,478		1,453,941
Daeduck Electronics Co.		204,684		1,415,349
Daeduck GDS Co. Ltd.		127,924		1,497,227
Daekyo Co. Ltd.		161,712		1,171,868
Daelim Industrial Co. Ltd.		93,175		6,777,123
Daesang Corp.^b		75,871		2,180,866
Daewoo Engineering & Construction Co. Ltd.^a,b		438,745		2,392,439
Daewoo Shipbuilding & Marine Engineering Co. Ltd.^a,b		397,780		1,598,255
Daewoong Pharmaceutical Co. Ltd.^b		18,597		1,264,262
Daishin Securities Co. Ltd.		170,348		1,565,979
Daou Technology Inc.		103,873		1,961,010
Dawonsys Co. Ltd.^b		57,735		1,351,465


32		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
DGB Financial Group Inc.		554,140	$	4,542,457
DIO Corp.^a,b		41,671		1,840,625
Dong-A Socio Holdings Co. Ltd.^b		12,194		2,034,156
Dong-A ST Co. Ltd.^b		15,133		1,411,508
Dongbu HiTek Co. Ltd.^a,b		118,936		1,818,707
Dongbu Insurance Co. Ltd.		169,467		10,259,213
DongKook Pharmaceutical Co. Ltd.		19,300		1,081,839
Dongkuk Steel Mill Co. Ltd.^a,b		203,589		1,548,372
Dongsuh Cos. Inc.		126,475		3,499,331
Dongwon Industries Co. Ltd.^b		7,231		1,880,708
Doosan Engine Co. Ltd.^a		149,787		599,820
Doosan Heavy Industries & Construction Co. Ltd.		156,114		3,871,347
Doosan Infracore Co. Ltd.^a,b		458,395		3,358,823
DoubleUGames Co. Ltd.^a,b		38,954		1,318,846
DuzonBIzon Co. Ltd.		82,974		1,518,089
E-MART Inc.		65,221		9,212,832
E1 Corp.		16,870		966,810
Emerson Pacific Inc.^a,b		27,369		909,436
EO Technics Co. Ltd.^b		31,070		2,432,656
Fila Korea Ltd.^b		37,572		3,386,535
Foosung Co. Ltd.^a,b		225,704		1,419,000
G-SMATT GLOBAL Co. Ltd.^a,b		57,324		1,439,526
G-treeBNT Co. Ltd.^a,b		69,822		1,158,482
Gamevil Inc.^a,b		23,411		1,352,169
GemVax & Kael Co. Ltd.^a,b		99,342		1,510,177
Genexine Co. Ltd.^a,b		33,519		1,390,362
Golfzon Co. Ltd.^b		7,768		455,630
Golfzonyuwon Holdings Co. Ltd.^b		85,621		567,479
Grand Korea Leisure Co. Ltd.		115,618		2,706,394
Green Cross Cell Corp.^a		28,407		770,683
Green Cross Corp./South Korea^b		19,172		3,009,058
Green Cross Holdings Corp.^b		83,232		2,254,355
GS Engineering & Construction Corp.^a,b		167,805		4,326,811
GS Holdings Corp.		168,968		7,486,116
GS Home Shopping Inc.		13,018		1,835,363
GS Retail Co. Ltd.^b		95,082		4,016,468
Gwangju Shinsegae Co. Ltd.		5,254		1,241,640
Halla Holdings Corp.		30,121		2,053,091
Hana Financial Group Inc.		985,641		25,900,701
Hana Tour Service Inc.^b		33,359		2,154,124
Hanall Biopharma Co. Ltd.^a,b		89,842		1,615,544
Hancom Inc.^b		88,075		1,362,595
Handsome Co. Ltd.^b		58,109		1,988,214


Security	Shares		Value
Hanil Cement Co. Ltd.		13,082	$	912,807
Hanjin Heavy Industries & Construction Co. Ltd.^a		235,447		901,667
Hanjin Kal Corp.^b		152,161		2,592,878
Hanjin Shipping Co. Ltd.^a,b		539,666		600,167
Hanjin Transportation Co. Ltd.^b		38,450		1,284,540
Hankook Shell Oil Co. Ltd.^b		4,162		1,636,804
Hankook Tire Co. Ltd.		253,015		12,662,096
Hankook Tire Worldwide Co. Ltd.^b		98,221		1,885,138
Hanmi Pharm Co. Ltd.^b		17,823		9,494,943
Hanmi Science Co. Ltd.^b		40,446		4,860,775
Hanon Systems		642,927		6,746,409
Hansae Co. Ltd.^b		73,230		1,589,387
Hansol Chemical Co. Ltd.		38,886		3,114,368
Hansol Holdings Co. Ltd.^a		202,101		1,212,606
Hansol Technics Co. Ltd.^a,b		64,167		978,331
Hanssem Co. Ltd.^b		39,604		5,221,335
Hanwha Chemical Corp.		356,658		8,188,740
Hanwha Corp.		147,381		4,844,407
Hanwha General Insurance Co. Ltd.^b		241,534		1,390,716
Hanwha Investment & Securities Co. Ltd.^a,b		318,113		674,742
Hanwha Life Insurance Co. Ltd.		734,623		3,735,706
Hanwha Techwin Co. Ltd.		126,605		6,994,500
Hite Jinro Co. Ltd.^b		108,295		2,127,050
HLB Inc.^a,b		109,983		1,780,442
HMC Investment Securities Co. Ltd.		146,827		1,362,923
Hotel Shilla Co. Ltd.^b		114,076		6,936,639
Huchems Fine Chemical Corp.^b		105,307		1,855,859
Hugel Inc.^a		8,535		3,201,965
Humedix Co. Ltd.^b		25,814		879,760
Huons Co. Ltd.^a		11,442		625,975
Huons Global Co. Ltd.^b		31,544		1,321,170
Hwa Shin Co. Ltd.^b		108,752		841,731
Hy-Lok Corp.^b		65,632		1,227,289
Hyosung Corp.		71,499		8,464,456
Hyundai C&F Inc.^b		46,729		792,088
Hyundai Corp.^b		43,799		799,381
Hyundai Department Store Co. Ltd.		51,782		5,828,378
Hyundai Development Co. – Engineering & Construction		172,852		7,231,880
Hyundai Elevator Co. Ltd.^a,b		48,800		3,063,677


CONSOLIDATED SCHEDULES OF INVESTMENTS			33

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Hyundai Engineering & Construction Co. Ltd.		242,916	$	8,398,576
Hyundai Glovis Co. Ltd.		64,248		10,573,550
Hyundai Greenfood Co. Ltd.		164,060		2,449,865
Hyundai Heavy Industries Co. Ltd.^a,b		141,254		17,419,215
Hyundai Home Shopping Network Corp.		23,967		2,643,893
Hyundai Livart Furniture Co. Ltd.^b		51,605		1,080,697
Hyundai Marine & Fire Insurance Co. Ltd.		203,866		6,179,974
Hyundai Mipo Dockyard Co. Ltd.^a,b		39,601		2,706,364
Hyundai Mobis Co. Ltd.		230,663		53,890,324
Hyundai Motor Co.		486,894		58,077,939
Hyundai Rotem Co. Ltd.^a,b		100,314		2,154,727
Hyundai Securities Co. Ltd.^b		451,335		2,958,977
Hyundai Steel Co.		265,619		12,220,856
Hyundai Wia Corp.		55,178		4,503,317
Il Dong Pharmaceutical Co. Ltd. New^a		29,444		670,742
Il Dong Pharmaceutical Co. Ltd.		11,917		402,399
Ilyang Pharmaceutical Co. Ltd.^a,b		49,666		2,073,500
iMarketKorea Inc.^b		85,212		1,016,430
InBody Co. Ltd.^b		47,734		1,455,566
Industrial Bank of Korea		793,343		8,360,341
Innocean Worldwide Inc.^b		34,927		2,177,064
Interpark Holdings Corp.^b		227,886		1,060,743
iNtRON Biotechnology Inc.^a,b		40,053		1,643,430
IS Dongseo Co. Ltd.^b		41,165		1,812,737
It’s Skin Co. Ltd.^b		19,937		926,221
JB Financial Group Co. Ltd.		356,491		1,889,562
Jeil Pharmaceutical Co.^b		23,670		2,023,095
Jenax Inc.^a,b		53,156		1,058,353
Jusung Engineering Co. Ltd.^a,b		155,556		1,356,058
JW Holdings Corp.^b		112,164		1,307,742
JW Pharmaceutical Corp.^b		42,921		2,775,430
JW Shinyak Corp.^b		117,921		1,184,498
Kakao Corp.^b		107,290		7,823,029
Kangwon Land Inc.		403,770		14,285,853
KB Capital Co. Ltd.^b		77,419		1,791,399
KB Financial Group Inc.		1,290,612		45,026,733
KB Insurance Co. Ltd.^b		146,385		3,538,185
KC Tech Co. Ltd.^b		91,829		1,317,726
KCC Corp.		18,843		6,971,065


Security	Shares		Value
KEPCO Engineering & Construction Co. Inc.		54,792	$	1,594,619
KEPCO Plant Service & Engineering Co. Ltd.		80,302		4,638,071
KH Vatec Co. Ltd.^b		75,705		957,346
Kia Motors Corp.		883,355		33,234,746
KISWIRE Ltd.^b		29,674		999,335
KIWOOM Securities Co. Ltd.		40,887		2,687,908
Koh Young Technology Inc.		54,605		2,135,227
Kolmar BNH Co. Ltd.^b		44,778		1,194,749
Kolon Corp.		23,772		1,181,138
Kolon Industries Inc.		59,272		4,359,017
Kolon Life Science Inc.^b		14,906		1,918,395
Komipharm International Co. Ltd.^a,b		123,184		3,756,283
KONA I Co. Ltd.^b		67,100		887,646
Korea Aerospace Industries Ltd. Class A		198,922		15,110,936
Korea Electric Power Corp.		866,431		45,069,953
Korea Gas Corp.		86,214		3,282,318
Korea Investment Holdings Co. Ltd.		132,186		4,753,954
Korea Kolmar Co. Ltd.^b		51,007		4,121,732
Korea Kolmar Holdings Co. Ltd.^b		32,234		1,139,031
Korea PetroChemical Ind. Co. Ltd.^b		10,729		1,881,183
Korea REIT Co. Ltd.^b		580,339		1,517,209
Korea Zinc Co. Ltd.		30,269		12,989,880
Korean Air Lines Co. Ltd.^a		121,005		3,423,953
Korean Reinsurance Co.		344,601		3,693,257
KT Corp.		51,660		1,464,086
KT Skylife Co. Ltd.		111,938		1,616,324
KT&G Corp.		398,629		41,829,231
Kukdo Chemical Co. Ltd.^b		19,520		1,001,385
Kumho Industrial Co. Ltd.^a		86,528		869,160
Kumho Petrochemical Co. Ltd.		63,262		3,909,194
Kumho Tire Co. Inc.^a,b		415,382		3,703,047
Kwang Dong Pharmaceutical Co. Ltd.		205,579		1,675,976
Kwangju Bank^b		197,113		1,656,456
Leaders Cosmetics Co. Ltd.^a,b		49,645		1,048,556
LF Corp.^b		84,236		1,646,946
LG Chem Ltd.		157,627		38,240,452
LG Corp.		321,848		19,022,227
LG Display Co. Ltd.		784,632		21,146,360
LG Electronics Inc.		360,437		16,647,987
LG Hausys Ltd.		23,988		2,345,015


34		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
LG Household & Health Care Ltd.		31,900	$	27,207,982
LG Innotek Co. Ltd.		48,590		3,595,224
LG International Corp.		101,713		3,033,145
LG Life Sciences Ltd.^a,b		43,733		2,529,846
LG Uplus Corp.		721,113		7,534,499
Loen Entertainment Inc.^a,b		26,205		1,753,267
Lotte Chemical Corp.		52,999		12,738,773
Lotte Chilsung Beverage Co. Ltd.		2,255		3,035,655
Lotte Confectionery Co. Ltd.		20,806		3,162,885
LOTTE Fine Chemical Co. Ltd.		71,740		2,264,796
Lotte Food Co. Ltd.		2,749		1,661,727
LOTTE Himart Co. Ltd.^b		35,264		1,391,584
Lotte Shopping Co. Ltd.		36,540		6,652,574
LS Corp.		60,685		3,423,396
LS Industrial Systems Co. Ltd.		52,651		2,016,321
Lutronic Corp.^b		37,410		1,286,703
Macrogen Inc.^a,b		46,528		1,416,705
Maeil Dairy Industry Co. Ltd.^b		37,794		1,218,560
Mando Corp.^b		22,845		5,357,818
Medipost Co. Ltd.^a,b		27,753		1,839,414
Medy-Tox Inc.^b		14,477		5,745,356
Meritz Fire & Marine Insurance Co. Ltd.		203,342		2,835,846
Meritz Securities Co. Ltd.		993,275		3,011,004
Mirae Asset Daewoo Co. Ltd.^b		579,968		4,135,198
Mirae Asset Securities Co. Ltd.		261,066		5,513,995
Modetour Network Inc.		57,238		1,468,168
Muhak Co. Ltd.^b		63,257		1,313,363
Namhae Chemical Corp.^b		166,029		1,255,269
Namyang Dairy Products Co. Ltd.^b		2,296		1,449,672
Naturalendo Tech Co. Ltd.^a,b		49,025		754,062
NAVER Corp.		92,816		70,340,377
NCsoft Corp.		59,988		14,526,242
Neowiz Games Corp.^a,b		87,780		1,007,699
Nexen Corp.^b		169,101		1,251,196
Nexen Tire Corp.		132,271		1,654,870
NH Investment & Securities Co. Ltd.		421,183		3,815,200
NHN Entertainment Corp.^a,b		47,925		2,518,749
NHN KCP Corp.^b		56,037		949,865
NICE Holdings Co. Ltd.^b		85,163		1,470,303
NICE Information Service Co. Ltd.^b		173,758		1,198,385
Nong Shim Holdings Co. Ltd.^b		11,450		1,160,404
NongShim Co. Ltd.		11,917		3,206,368
NS Shopping Co. Ltd.^a		8,613		1,201,185


Security	Shares		Value
NUTRIBIOTECH Co. Ltd.^a,b		22,841	$	1,206,578
OCI Co. Ltd.^a,b		56,876		4,458,262
Orion Corp./Republic of Korea		12,204		8,132,352
Osstem Implant Co. Ltd.^a,b		47,014		2,399,190
Ottogi Corp.^b		4,436		2,780,954
Paradise Co. Ltd.^b		166,320		2,498,529
Partron Co. Ltd.^b		164,150		1,560,529
Poongsan Corp.		89,151		2,506,622
POSCO		234,966		48,679,055
POSCO Chemtech Co. Ltd.		103,611		1,012,879
Posco Daewoo Corp.		160,465		3,295,649
POSCO ICT Co. Ltd.^a,b		285,749		1,540,226
Pyeong Hwa Automotive Co. Ltd.^b		93,206		982,216
S&T Dynamics Co. Ltd.		112,658		920,461
S&T Motiv Co. Ltd.		37,612		1,757,475
S-1 Corp.		64,678		5,974,739
S-Oil Corp.		156,585		9,928,753
Samchully Co. Ltd.^b		13,481		1,227,194
Samjin Pharmaceutical Co. Ltd.		64,799		1,868,420
Samkwang Glass^b		19,465		1,265,661
Samlip General Foods Co. Ltd.^b		9,366		1,549,800
Samsung C&T Corp.		257,239		34,952,205
Samsung Card Co. Ltd.		121,710		4,830,195
Samsung Electro-Mechanics Co. Ltd.		188,557		8,996,621
Samsung Electronics Co. Ltd.		340,317		494,451,605
Samsung Engineering Co. Ltd.^a,b		502,657		5,071,651
Samsung Fire & Marine Insurance Co. Ltd.		112,331		27,201,229
Samsung Heavy Industries Co. Ltd.^a,b		495,920		4,305,386
Samsung Life Insurance Co. Ltd.		238,270		22,010,592
Samsung Pharmaceutical Co. Ltd.^a,b		126,165		633,654
Samsung SDI Co. Ltd.		187,267		19,398,510
Samsung SDS Co. Ltd.		118,795		17,046,816
Samsung Securities Co. Ltd.		179,686		5,648,425
Samyang Corp.		11,870		1,080,543
Samyang Holdings Corp.^b		12,329		1,326,888
Schnell Biopharmaceuticals Inc.^a,b		280,912		1,184,113
Seah Besteel Corp.		52,006		1,124,076
Sebang Co. Ltd.^b		109,405		1,520,877
Sebang Global Battery Co. Ltd.^b		36,704		1,244,315
Seegene Inc.^a,b		61,932		1,910,727
Seobu T&D^a,b		84,003		1,408,840


CONSOLIDATED SCHEDULES OF INVESTMENTS			35

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Seoul Auction Co. Ltd.^b		64,063	$	804,378
Seoul Semiconductor Co. Ltd.^b		141,362		1,889,053
SFA Engineering Corp.^b		38,258		1,828,835
Shinhan Financial Group Co. Ltd.		1,400,293		51,490,595
Shinsegae Food Co. Ltd.^b		8,328		1,056,872
Shinsegae Inc.		25,135		4,587,419
Shinsegae International Inc.^b		14,054		912,565
Silicon Works Co. Ltd.^b		47,951		1,227,804
Sindoh Co. Ltd.^b		30,404		1,398,857
SK Bioland Co. Ltd.^b		51,739		946,615
SK Chemicals Co. Ltd.^b		59,409		3,516,587
SK Gas Ltd.^b		19,693		1,775,019
SK Holdings Co. Ltd.		155,098		29,489,485
SK Hynix Inc.		1,974,641		64,552,165
SK Innovation Co. Ltd.		220,338		28,752,627
SK Materials Co. Ltd.^b		21,530		2,817,244
SK Networks Co. Ltd.		405,167		2,300,186
SK Securities Co. Ltd.^a,b		1,333,965		1,363,875
SK Telecom Co. Ltd.		67,183		13,165,458
SKC Co. Ltd.^b		79,115		1,947,719
SL Corp.		60,850		914,114
SM Entertainment Co.^a,b		73,705		1,804,616
Songwon Industrial Co. Ltd.^b		76,626		1,291,990
Soulbrain Co. Ltd.^b		39,235		2,178,158
Ssangyong Cement Industrial Co. Ltd.^a,b		97,969		1,546,416
Ssangyong Motor Co.^a,b		182,266		1,240,717
Sung Kwang Bend Co. Ltd.^b		113,291		927,665
Sungwoo Hitech Co. Ltd.		125,247		872,797
Taekwang Industrial Co. Ltd.^b		1,735		1,294,637
Taewoong Co. Ltd.^a,b		84,118		2,059,571
Taeyoung Engineering & Construction Co. Ltd.^a		293,027		1,511,126
Tera Resource Co. Ltd.^a		49,111		—
TK Corp.^b		175,046		1,287,334
Tongyang Inc.^b		694,889		1,888,353
Tongyang Life Insurance Co. Ltd.		167,194		1,806,895
Toptec Co. Ltd.^b		71,313		1,167,231
Value Added Technologies Co. Ltd.^b		38,644		1,360,338
Vieworks Co. Ltd.^b		35,983		1,936,305
ViroMed Co. Ltd.^a,b		41,367		4,385,273
Webzen Inc.^a,b		73,906		1,123,504
WeMade Entertainment Co. Ltd.^a,b		43,822		788,010


Security	Shares		Value
Wonik Holdings Co. Ltd.^a,b		103,098	$	618,588
WONIK IPS Co. Ltd.^a,b		92,404		1,930,954
Woongjin Thinkbig Co. Ltd.^a,b		128,749		1,229,755
Woori Bank		905,175		8,605,251
YG Entertainment Inc.^b		50,062		1,425,532
Youlchon Chemical Co. Ltd.^b		161,247		2,053,549
Youngone Corp.^b		85,190		2,555,700
Youngone Holdings Co. Ltd.^b		28,772		1,543,108
Yuanta Securities Korea Co. Ltd.^a,b		357,143		1,066,624
Yuhan Corp.		26,695		6,907,182
Yungjin Pharmaceutical Co. Ltd.^a,b		457,233		4,408,300

				2,341,367,822
TAIWAN — 12.61%
A-DATA Technology Co. Ltd.^b		1,206,820		1,614,519
AcBel Polytech Inc.^b		1,839,000		1,356,190
Accton Technology Corp.^b		2,359,000		3,709,809
Acer Inc.^b		9,584,872		4,304,515
Advanced Ceramic X Corp.^b		180,000		1,137,391
Advanced Semiconductor Engineering Inc.^b		21,289,000		26,166,338
Advanced Wireless Semiconductor Co.^b		729,000		1,201,579
Advantech Co. Ltd.^b		1,048,302		8,573,277
Airtac International Group^b		402,190		3,004,019
Alpha Networks Inc.^b		1,634,700		1,226,134
Altek Corp.^b		1,384,000		996,656
Ambassador Hotel (The)^b		1,920,000		1,546,020
AmTRAN Technology Co. Ltd.^b		3,186,000		2,379,673
Ardentec Corp.		2,386,546		1,797,591
Asia Cement Corp.		7,467,050		6,671,526
Asia Optical Co. Inc.^a		1,392,000		1,408,210
Asia Pacific Telecom Co. Ltd.^a		6,591,000		2,222,584
Asia Polymer Corp.		2,989,027		1,676,768
Asustek Computer Inc.		2,329,000		19,707,742
AU Optronics Corp.^b		28,907,000		11,387,703
Bank of Kaohsiung Co. Ltd.		7,629,149		2,183,157
BES Engineering Corp.^b		7,683,000		1,309,939
Bioteque Corp.^b		284,000		1,302,280
Bizlink Holding Inc.^b		336,056		1,969,916
Brogent Technologies Inc.^b		155,799		1,070,395
Capital Securities Corp.		6,997,000		1,772,928
Career Technology MFG. Co. Ltd.		1,994,000		1,206,562


36		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Casetek Holdings Ltd.^b		461,000	$	1,619,940
Catcher Technology Co. Ltd.^b		2,202,000		15,822,505
Cathay Financial Holding Co. Ltd.		27,291,078		34,489,599
Cathay Real Estate Development Co. Ltd.^a		3,049,000		1,330,854
Center Laboratories Inc.^a,b		680,000		1,489,419
Chailease Holding Co. Ltd.^b		3,489,945		6,027,292
Chang Hwa Commercial Bank Ltd.		16,761,067		8,425,301
Cheng Loong Corp.		3,739,000		1,349,224
Cheng Shin Rubber Industry Co. Ltd.		6,254,650		13,285,747
Cheng Uei Precision Industry Co. Ltd.		1,316,000		1,596,760
Chia Hsin Cement Corp.		1,287,000		366,260
Chicony Electronics Co. Ltd.^b		1,725,728		4,269,383
Chin-Poon Industrial Co. Ltd.		1,254,000		2,987,737
China Airlines Ltd.		8,384,000		2,433,515
China Bills Finance Corp.		5,047,000		2,004,135
China Development Financial Holding Corp.		42,948,000		10,855,264
China Life Insurance Co. Ltd./Taiwan		11,433,369		10,125,200
China Man-Made Fiber Corp.^a,b		5,199,000		1,243,611
China Metal Products^b		1,253,146		1,196,651
China Motor Corp.		974,000		722,891
China Petrochemical Development Corp.^a,b		7,565,900		1,762,090
China Steel Chemical Corp.^b		536,000		1,723,011
China Steel Corp.^b		39,869,529		27,643,108
China Synthetic Rubber Corp.^b		1,884,100		1,496,331
Chipbond Technology Corp.^b		2,020,000		2,616,473
Chlitina Holding Ltd.^b		183,000		934,306
Chong Hong Construction Co. Ltd.^b		767,122		1,264,414
Chroma ATE Inc.^b		1,231,000		3,181,229
Chunghwa Telecom Co. Ltd.		12,653,000		45,459,164
Cleanaway Co. Ltd.		321,000		1,745,088
Clevo Co.		1,496,175		1,376,855
CMC Magnetics Corp.^a,b		12,506,566		1,517,476
Compal Electronics Inc.		13,309,000		7,885,448
Compeq Manufacturing Co. Ltd.^b		3,709,000		1,858,562
Continental Holdings Corp.^b		4,178,600		1,336,657


Security	Shares		Value
Coretronic Corp.		1,514,200	$	1,706,013
Coxon Precise Industrial Co. Ltd.		1,212,000		1,354,073
CSBC Corp. Taiwan^b		3,666,000		1,733,033
CTBC Financial Holding Co. Ltd.		54,555,259		31,549,739
CTCI Corp.^b		2,167,000		3,073,226
Cub Elecparts Inc.^b		135,000		1,612,486
Cyberlink Corp.		956,540		2,089,101
D-Link Corp.^b		5,211,991		1,880,755
Darwin Precisions Corp.		2,846,000		1,130,130
Delta Electronics Inc.		6,508,000		33,841,887
Depo Auto Parts Ind. Co. Ltd.		402,000		1,260,585
Dynapack International Technology Corp.^b		1,363,000		1,806,279
E Ink Holdings Inc.^b		2,993,000		2,259,099
E.Sun Financial Holding Co. Ltd.^b		26,261,581		14,773,458
Eclat Textile Co. Ltd.^b		641,062		8,121,742
Elan Microelectronics Corp.^b		1,704,000		2,204,478
Elite Advanced Laser Corp.^b		431,800		1,626,199
Elite Material Co. Ltd.^b		965,000		2,633,712
Elite Semiconductor Memory Technology Inc.^b		1,964,000		1,847,604
Ennoconn Corp.^b		149,000		2,479,381
Epistar Corp.^a		3,558,000		2,579,033
Eternal Materials Co. Ltd.		2,999,472		3,251,819
EVA Airways Corp.		7,009,042		3,247,126
Evergreen Marine Corp. Taiwan Ltd.		5,555,870		2,101,147
Everlight Chemical Industrial Corp.^b		2,735,781		1,737,319
Everlight Electronics Co. Ltd.^b		1,358,000		2,169,855
Far Eastern Department Stores Ltd.		3,212,167		1,690,588
Far Eastern International Bank		7,209,011		2,162,896
Far Eastern New Century Corp.		9,594,916		7,075,874
Far EasTone Telecommunications Co. Ltd.		5,156,000		12,008,270
Faraday Technology Corp.^b		1,111,000		1,106,431
Farglory Land Development Co. Ltd.		951,782		1,111,345
Federal Corp.^b		5,004,889		2,208,236
Feng Hsin Steel Co. Ltd.		1,791,000		2,291,631
Feng TAY Enterprise Co. Ltd.^b		1,149,506		5,470,302


CONSOLIDATED SCHEDULES OF INVESTMENTS			37

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Firich Enterprises Co. Ltd.^b		728,960	$	1,748,282
First Financial Holding Co. Ltd.		31,424,679		16,142,899
FLEXium Interconnect Inc.^b		901,734		2,509,356
Formosa Chemicals & Fibre Corp.		10,732,210		27,870,160
Formosa Petrochemical Corp.^b		3,952,000		11,558,141
Formosa Plastics Corp.		13,666,800		33,724,979
Formosa Taffeta Co. Ltd.		2,301,000		2,222,645
Formosan Rubber Group Inc.^b		3,608,000		1,734,041
Foxconn Technology Co. Ltd.		2,963,787		8,313,044
Fubon Financial Holding Co. Ltd.		22,280,000		31,527,143
General Interface Solution Holding Ltd.^b		418,000		1,064,414
Getac Technology Corp.^b		2,129,000		1,905,536
Giant Manufacturing Co. Ltd.^b		970,000		6,251,556
Gigabyte Technology Co. Ltd.^b		1,871,000		2,576,786
Gigasolar Materials Corp.^b		113,800		1,420,236
Gigastorage Corp.^a,b		1,583,000		1,092,567
Ginko International Co. Ltd.^b		168,000		1,646,618
Gintech Energy Corp.^a,b		1,682,019		1,155,608
Gloria Material Technology Corp.^b		3,304,048		1,801,422
Goldsun Building Materials Co. Ltd.		5,301,000		1,306,435
Gourmet Master Co. Ltd.		253,050		2,416,418
Grand Pacific Petrochemical		3,349,000		1,693,999
Grape King Bio Ltd.^b		358,000		2,685,240
Great Wall Enterprise Co. Ltd.		2,511,500		2,133,119
Greatek Electronics Inc.		1,426,000		1,736,969
HannStar Display Corp.^a,b		9,952,640		1,737,685
Hermes Microvision Inc.		160,000		6,857,755
Highwealth Construction Corp.^b		2,774,230		4,310,349
Hiwin Technologies Corp.^b		734,668		3,797,153
Ho Tung Chemical Corp.^a		7,121,177		1,660,759
Holy Stone Enterprise Co. Ltd.		1,606,900		1,610,420
Hon Hai Precision Industry Co. Ltd.		47,277,646		131,117,784
Hota Industrial Manufacturing Co. Ltd.^b		679,000		3,520,130
Hotai Motor Co. Ltd.^b		824,000		9,115,016
HTC Corp.^a,b		2,279,000		6,105,009
Hu Lane Associate Inc.^b		267,000		1,350,546
Hua Nan Financial Holdings Co. Ltd.		24,598,602		12,675,096


Security	Shares		Value
Huaku Development Co. Ltd.^b		928,000	$	1,567,602
Hung Sheng Construction Ltd.		3,048,000		1,584,973
IEI Integration Corp.^b		1,290,582		1,779,454
Innolux Corp.		29,148,241		10,288,533
Inotera Memories Inc.^a,b		8,948,000		7,585,799
International Games System Co. Ltd.^b		208,000		1,301,209
Inventec Corp.		8,325,000		6,178,716
ITEQ Corp.		1,859,000		2,071,056
KEE TAI Properties Co. Ltd.^b		4,389,000		1,701,350
Kenda Rubber Industrial Co. Ltd.		1,730,889		2,738,395
Kerry TJ Logistics Co. Ltd.^b		1,045,000		1,374,978
Kindom Construction Corp.		2,137,000		1,054,003
King Slide Works Co. Ltd.^b		212,000		2,588,992
King Yuan Electronics Co. Ltd.		4,136,000		3,799,638
King’s Town Bank Co. Ltd.		3,536,000		3,008,840
Kinpo Electronics^b		5,183,000		1,951,966
Kinsus Interconnect Technology Corp.		892,000		1,880,676
Kuoyang Construction Co. Ltd.		4,476,023		1,918,467
Land Mark Optoelectronics Corp.^b		183,900		1,999,512
Largan Precision Co. Ltd.		340,000		38,146,263
LCY Chemical Corp.		1,811,000		2,280,123
Lealea Enterprise Co. Ltd.^b		5,952,173		1,611,357
Lien Hwa Industrial Corp.		2,111,910		1,397,712
Lite-On Technology Corp.		7,118,238		10,768,044
Long Bon International Co. Ltd.		3,182,000		1,709,809
Makalot Industrial Co. Ltd.^b		636,210		3,007,564
Masterlink Securities Corp.		6,788,344		1,758,566
MediaTek Inc.		5,032,572		39,571,602
Mega Financial Holding Co. Ltd.		35,946,958		24,470,282
Merida Industry Co. Ltd.^b		710,850		2,901,154
Merry Electronics Co. Ltd.		586,070		2,197,959
Micro-Star International Co. Ltd.		2,426,000		5,848,915
Microbio Co. Ltd.^a		2,386,141		1,797,286
MIN AIK Technology Co. Ltd.		843,000		1,017,535
Mitac Holdings Corp.		1,898,000		1,938,047
Motech Industries Inc.^a,b		1,411,000		1,376,293
Nan Kang Rubber Tire Co. Ltd.^b		1,958,000		1,808,021
Nan Ya Plastics Corp.		15,693,440		29,971,871
Nan Ya Printed Circuit Board Corp.		806,000		657,897
Nanya Technology Corp.^b		2,313,000		2,733,569


38		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Neo Solar Power Corp.^a,b		2,912,806	$	1,519,262
Nien Made Enterprise Co. Ltd.^b		529,000		6,001,796
Novatek Microelectronics Corp.^b		1,905,000		6,514,001
OBI Pharma Inc.^a,b		383,000		4,791,951
Oriental Union Chemical Corp.^b		2,142,000		1,336,619
Pan-International Industrial Corp.^b		2,629,366		2,034,350
Parade Technologies Ltd.^b		220,000		2,142,418
PChome Online Inc.^b		320,105		3,490,532
Pegatron Corp.		6,463,000		15,622,574
PharmaEngine Inc.^b		239,184		1,620,667
Phison Electronics Corp.^b		513,000		3,710,421
Pixart Imaging Inc.^b		675,000		1,525,267
Pou Chen Corp.		7,415,000		10,749,594
Powertech Technology Inc.		2,288,000		5,970,483
Poya International Co. Ltd.^b		201,710		3,016,385
President Chain Store Corp.		1,951,000		15,525,362
President Securities Corp.		3,991,123		1,477,937
Primax Electronics Ltd.		1,397,000		1,987,821
Prince Housing & Development Corp.		4,783,995		1,583,081
Qisda Corp.^b		5,390,000		2,191,299
Quanta Computer Inc.		8,903,000		16,470,150
Radiant Opto-Electronics Corp.^b		1,469,000		2,412,029
Radium Life Tech Co. Ltd.^a		4,389,196		1,390,190
Realtek Semiconductor Corp.		1,605,110		6,424,386
Rich Development Co. Ltd.		5,592,770		1,632,154
Ritek Corp.^a,b		12,180,000		1,504,723
Ruentex Development Co. Ltd.^a		2,945,822		3,448,962
Ruentex Industries Ltd.		1,746,906		2,711,433
Sampo Corp.^b		5,736,000		3,199,672
Sanyang Motor Co. Ltd.^b		2,067,000		1,420,104
ScinoPharm Taiwan Ltd.^b		902,488		1,154,757
Sercomm Corp.^b		1,008,000		2,249,142
Shihlin Paper Corp.^a,b		169,000		170,169
Shin Kong Financial Holding Co. Ltd.^a		25,458,443		5,584,241
Shin Zu Shing Co. Ltd.^b		618,000		2,025,559
Shining Building Business Co. Ltd.^a,b		3,399,601		1,151,753
Shinkong Synthetic Fibers Corp.^b		5,181,000		1,361,767
Sigurd Microelectronics Corp.^b		2,465,000		1,825,609
Silergy Corp.^b		193,000		2,925,671


Security	Shares		Value
Siliconware Precision Industries Co. Ltd.		7,298,819	$	10,891,700
Simplo Technology Co. Ltd.		877,000		2,888,278
Sinbon Electronics Co. Ltd.		920,809		2,103,927
Sino-American Silicon Products Inc.^b		1,916,000		2,053,040
SinoPac Financial Holdings Co. Ltd.		33,116,055		9,685,224
Sinyi Realty Inc.		1,403,877		1,252,099
Sitronix Technology Corp.		482,000		1,610,186
Soft-World International Corp.^b		633,000		1,328,621
Solar Applied Materials Technology Co.^a		1,987,000		547,935
St. Shine Optical Co. Ltd.^b		163,000		4,017,144
Standard Foods Corp.^b		1,350,939		3,333,654
Sunny Friend Environmental Technology Co. Ltd.^b		280,000		1,142,749
Swancor Holding Co. Ltd.		274,000		1,290,966
Synnex Technology International Corp.^b		4,373,250		4,617,131
TA Chen Stainless Pipe^b		3,608,682		1,853,785
Taichung Commercial Bank Co. Ltd.		7,418,344		2,059,709
Taiflex Scientific Co. Ltd.		1,336,380		1,389,847
Taigen Biopharmaceuticals Holdings Ltd.^a		1,043,000		940,099
TaiMed Biologics Inc.^a,b		546,000		3,381,258
Tainan Spinning Co. Ltd.		4,022,894		1,591,129
Taishin Financial Holding Co. Ltd.		28,473,707		10,768,330
Taiwan Acceptance Corp.		708,000		1,597,605
Taiwan Business Bank^a		11,633,518		3,109,066
Taiwan Cement Corp.		11,139,000		12,725,572
Taiwan Cogeneration Corp.^b		2,059,000		1,492,476
Taiwan Cooperative Financial Holding Co. Ltd.		25,593,880		11,252,096
Taiwan Fertilizer Co. Ltd.^b		2,076,000		2,741,350
Taiwan Glass Industry Corp.^a,b		3,804,000		1,558,500
Taiwan Hon Chuan Enterprise Co. Ltd.^b		1,316,674		1,946,140
Taiwan Land Development Corp.		4,284,854		1,478,677
Taiwan Liposome Co. Ltd.^a		163,000		647,264
Taiwan Mobile Co. Ltd.		5,497,000		19,316,289
Taiwan Paiho Ltd.		868,000		2,497,547


CONSOLIDATED SCHEDULES OF INVESTMENTS			39

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Taiwan PCB Techvest Co. Ltd.		1,998,042	$	1,999,270
Taiwan Secom Co. Ltd.		1,087,185		3,090,531
Taiwan Semiconductor Co. Ltd.		1,196,000		1,373,889
Taiwan Semiconductor Manufacturing Co. Ltd.		83,680,000		464,149,005
Taiwan Shin Kong Security Co. Ltd.		2,273,770		2,859,187
Taiwan Surface Mounting Technology Corp.^b		2,187,261		1,871,516
Taiwan TEA Corp.^b		3,499,000		1,665,114
Tatung Co. Ltd.^a,b		8,389,000		1,456,750
Teco Electric and Machinery Co. Ltd.		6,313,000		5,312,148
Test Research Inc.^b		829,400		1,022,031
Test Rite International Co. Ltd.		2,652,000		1,604,715
Ton Yi Industrial Corp.		2,935,000		1,304,218
Tong Hsing Electronic Industries Ltd.^b		554,000		2,208,632
Tong Yang Industry Co. Ltd.^b		1,307,400		2,632,888
Topco Scientific Co. Ltd.^b		1,342,338		3,553,565
TPK Holding Co. Ltd.^b		940,000		1,733,033
Transcend Information Inc.		619,000		1,784,986
Tripod Technology Corp.		1,529,000		3,267,084
TrueLight Corp.		452,000		925,923
TSRC Corp.		2,056,900		1,889,621
TTY Biopharm Co. Ltd.^b		719,124		2,617,634
Tung Ho Steel Enterprise Corp.		3,159,000		1,841,808
Tung Thih Electronic Co. Ltd.^b		227,000		3,462,536
TWi Pharmaceuticals Inc.^a		283,000		994,453
TXC Corp.		1,461,000		1,913,129
U-Ming Marine Transport Corp.		1,522,000		1,031,279
Uni-President Enterprises Corp.		16,300,369		30,822,777
Unimicron Technology Corp.^b		4,319,000		1,769,496
Union Bank of Taiwan		4,872,681		1,360,582
Unitech Printed Circuit Board Corp.^b		4,376,000		1,406,697
United Integrated Services Co. Ltd.		1,142,000		1,786,934
United Microelectronics Corp.^b		38,302,000		13,881,691
UPC Technology Corp.		4,520,146		1,380,382
USI Corp.		3,347,000		1,450,379
Vanguard International Semiconductor Corp.^b		3,056,000		5,730,512
Visual Photonics Epitaxy Co. Ltd.^b		1,220,000		1,641,764


Security	Shares		Value
Voltronic Power Technology Corp.^b		178,975	$	2,769,472
Wah Lee Industrial Corp.^b		1,048,000		1,549,021
Walsin Lihwa Corp.^a,b		10,352,000		3,327,726
Walsin Technology Corp.		1,430,000		1,511,999
Waterland Financial Holdings Co. Ltd.		8,970,543		2,256,029
Win Semiconductors Corp.^b		1,838,669		3,691,187
Winbond Electronics Corp.^b		9,912,000		3,233,142
Wistron Corp.^b		8,432,647		6,192,171
Wistron NeWeb Corp.^b		875,911		2,636,249
Wowprime Corp.^b		330,260		1,431,139
WPG Holdings Ltd.		4,740,000		5,639,211
WT Microelectronics Co. Ltd.^b		1,479,990		2,028,949
XPEC Entertainment Inc.		441,000		975,661
Yageo Corp.		1,285,739		2,727,037
Yang Ming Marine Transport Corp.^a		5,845,000		1,344,716
Yeong Guan Energy Technology Group Co. Ltd.^b		294,937		1,598,751
YFY Inc.^b		3,808,000		1,083,697
Yieh Phui Enterprise Co. Ltd.^a		4,965,510		1,552,382
Yuanta Financial Holding Co. Ltd.		31,528,912		11,178,527
Yulon Motor Co. Ltd.^b		2,311,000		1,999,242
YungShin Global Holding Corp.		1,372,650		2,052,670
Yungtay Engineering Co. Ltd.		1,435,000		2,098,423
Zhen Ding Technology Holding Ltd.^b		1,264,950		2,535,441
Zinwell Corp.^b		1,390,000		1,581,412

				2,017,753,213
THAILAND — 2.53%
Advanced Info Service PCL NVDR		3,516,000		16,810,331
Airports of Thailand PCL NVDR		1,480,700		17,195,805
Amata Corp. PCL NVDR		3,836,700		1,396,554
AP Thailand PCL NVDR^b		7,335,290		1,578,712
Bangchak Petroleum PCL (The) NVDR^b		1,539,400		1,500,910
Bangkok Airways Co. Ltd.^b		2,395,500		1,730,078
Bangkok Bank PCL Foreign		861,100		4,216,506
Bangkok Chain Hospital PCL NVDR		5,961,350		2,032,151
Bangkok Dusit Medical Services PCL NVDR		13,747,300		9,332,858


40		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Bangkok Expressway & Metro PCL		25,248,985	$	5,616,478
Bangkok Land PCL NVDR		30,638,100		1,610,878
Banpu PCL NVDR^b		5,193,200		2,355,397
Beauty Community PCL		8,219,500		2,208,298
BEC World PCL NVDR		3,841,100		2,485,610
BTS Group Holdings PCL NVDR		17,551,500		4,588,727
Bumrungrad Hospital PCL NVDR		1,240,700		6,093,195
Central Pattana PCL NVDR		4,978,700		8,665,675
Charoen Pokphand Foods PCL NVDR		9,149,300		8,590,147
Chularat Hospital PCL NVDR		23,180,300		1,741,092
CP ALL PCL NVDR		16,949,100		30,480,030
Delta Electronics Thailand PCL NVDR		1,830,100		3,912,334
Dynasty Ceramic PCL NVDR		17,125,220		2,186,693
Eastern Polymer Group PCL^b		4,149,700		1,666,330
Electricity Generating PCL NVDR		435,700		2,485,902
Energy Absolute PCL NVDR^b		4,898,900		3,573,463
Esso Thailand PCL NVDR^a		8,419,100		1,459,306
Glow Energy PCL NVDR		1,799,400		4,158,599
Group Lease PCL^b		1,400,000		1,658,217
Gunkul Engineering PCL NVDR^b		11,630,260		1,814,315
Hana Microelectronics PCL NVDR^b		2,146,000		1,890,858
Home Product Center PCL NVDR		14,707,074		4,631,079
Indorama Ventures PCL NVDR		4,993,200		4,615,921
Inter Far East Energy Corp.^b		4,226,700		775,362
IRPC PCL NVDR		33,209,600		4,643,425
Italian-Thai Development PCL NVDR^a,b		7,513,200		1,378,250
Jasmine International PCL NVDR		11,918,300		1,928,110
Kasikornbank PCL Foreign		3,992,100		22,834,736
Kasikornbank PCL NVDR		1,955,300		11,156,036
KCE Electronics PCL NVDR^b		1,145,800		3,235,601
Khon Kaen Sugar Industry PCL NVDR^b		10,939,286		1,213,527
Kiatnakin Bank PCL NVDR		1,631,500		2,439,084
Krung Thai Bank PCL NVDR^b		11,563,800		6,347,220


Security	Shares		Value
Krungthai Card PCL NVDR		451,100	$	1,811,411
LPN Development PCL NVDR^b		3,401,800		1,228,424
Major Cineplex Group PCL NVDR		1,485,600		1,394,809
Minor International PCL NVDR		7,489,760		8,925,268
Muangthai Leasing PCL^b		3,169,300		1,757,899
PTG Energy PCL^b		2,205,300		1,927,181
PTT Exploration & Production PCL NVDR		4,512,301		10,591,338
PTT Global Chemical PCL NVDR		6,811,100		12,002,632
PTT PCL NVDR		3,377,400		34,051,584
Quality Houses PCL NVDR		19,986,217		1,570,467
Robinson Department Store PCL NVDR		1,908,000		3,527,668
Samart Corp. PCL NVDR^b		2,462,600		1,088,466
Siam Cement PCL (The) Foreign		1,216,000		18,618,249
Siam Cement PCL (The) NVDR		155,800		2,385,463
Siam Commercial Bank PCL (The) NVDR		5,312,400		24,555,011
Siam Global House PCL NVDR^b		4,655,792		1,977,153
Singha Estate PCL^a		7,544,700		1,166,071
Sino-Thai Engineering & Construction PCL NVDR^b		3,181,128		2,297,474
Sri Trang Agro-Industry PCL NVDR^b		3,654,600		1,277,481
Srisawad Power 1979 PCL NVDR^b		2,143,833		2,446,344
Supalai PCL NVDR^b		2,730,900		1,901,307
Superblock PCL^a,b		40,995,900		2,131,780
surGlobal Power Synergy Co. Ltd. NVDR^b		1,748,700		1,818,642
Thai Airways International PCL NVDR^a,b		2,480,700		2,257,429
Thai Oil PCL NVDR		2,801,200		5,725,322
Thai Union Group PCL NVDR		6,734,700		4,182,983
Thai Vegetable Oil PCL NVDR		2,157,700		2,088,167
Thaicom PCL NVDR^b		2,084,300		1,324,684
Thanachart Capital PCL NVDR		2,268,900		2,621,831
Thoresen Thai Agencies PCL NVDR^b		3,133,323		846,343
TICON Industrial Connection PCL NVDR^b		3,054,560		1,385,408


CONSOLIDATED SCHEDULES OF INVESTMENTS			41

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Tisco Financial Group PCL NVDR		1,385,350	$	2,161,139
TMB Bank PCL NVDR		51,539,200		3,364,926
True Corp. PCL NVDR^b		33,721,311		7,890,760
TTW PCL NVDR		6,195,500		1,968,786
Unique Engineering & Construction PCL^b		2,687,900		1,459,824
VGI Global Media PCL NVDR^b		11,458,500		2,118,542
Vibhavadi Medical Center PCL NVDR		23,371,600		1,958,014
WHA Corp. PCL NVDR^a,b		26,448,300		2,750,614

				404,790,694
TURKEY — 1.19%
Akbank TAS		7,774,046		20,544,436
Aksa Akrilik Kimya Sanayii AS		381,550		1,094,711
Albaraka Turk Katilim Bankasi AS^b		3,132,083		1,333,657
Anadolu Efes Biracilik ve Malt Sanayii AS		738,972		4,582,520
Arcelik AS		883,138		6,315,163
BIM Birlesik Magazalar AS		750,823		12,864,292
Cimsa Cimento Sanayi VE Ticaret AS		303,187		1,551,232
Coca-Cola Icecek AS		289,873		3,620,596
Dogus Otomotiv Servis ve Ticaret AS^b		198,247		681,346
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		6,718,348		6,606,871
Eregli Demir ve Celik Fabrikalari TAS		5,004,162		7,525,437
Ford Otomotiv Sanayi AS		259,576		2,814,098
Haci Omer Sabanci Holding AS		3,282,702		10,128,441
Is Gayrimenkul Yatirim Ortakligi AS^b		2,839,864		1,545,126
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class D		3,599,151		1,702,819
KOC Holding AS		2,217,580		9,622,428
Otokar Otomotiv Ve Savunma Sanayi AS^b		44,698		1,617,774
Petkim Petrokimya Holding AS		2,747,435		4,261,676
Sekerbank TAS^a,b		2,504,839		981,925
Soda Sanayii AS		1,094,959		1,517,127
TAV Havalimanlari Holding AS		675,230		2,633,285
Tekfen Holding AS^b		728,994		1,808,258


Security	Shares		Value
Tofas Turk Otomobil Fabrikasi AS		456,578	$	3,357,486
Trakya Cam Sanayii AS^b		1,889,939		1,603,105
Tupras Turkiye Petrol Rafinerileri AS		428,272		8,379,896
Turk Hava Yollari AO^a,b		1,906,107		3,323,819
Turk Telekomunikasyon AS		1,692,318		3,414,261
Turkcell Iletisim Hizmetleri AS^a		3,039,659		10,200,336
Turkiye Garanti Bankasi AS		7,979,981		20,576,275
Turkiye Halk Bankasi AS		2,137,324		6,413,922
Turkiye Is Bankasi Class C^b		5,328,779		8,661,900
Turkiye Sinai Kalkinma Bankasi AS^b		4,322,275		1,986,514
Turkiye Sise ve Cam Fabrikalari AS		2,857,308		3,302,353
Turkiye Vakiflar Bankasi Tao Class D^b		2,831,474		4,162,385
Ulker Biskuvi Sanayi AS		553,555		3,894,770
Yapi ve Kredi Bankasi AS^a,b		3,412,630		4,197,889
Yazicilar Holding AS^b		303,220		1,354,658

				190,182,787
UNITED ARAB EMIRATES — 0.86%
Abu Dhabi Commercial Bank PJSC		6,729,561		11,762,212
Agthia Group PJSC		723,823		1,172,510
Air Arabia PJSC		7,570,828		2,782,559
Al Waha Capital PJSC		4,129,824		2,192,469
Aldar Properties PJSC		10,732,637		8,064,599
Amlak Finance PJSC^a		2,902,574		1,066,803
Arabtec Holding PJSC^a		8,050,134		3,199,803
Dana Gas PJSC^a		13,076,351		2,029,218
Deyaar Development PJSC^a		7,950,750		1,287,930
DP World Ltd.		573,102		10,602,387
Dubai Financial Market PJSC		7,497,247		2,735,104
Dubai Islamic Bank PJSC		4,248,971		6,316,022
Dubai Parks & Resorts PJSC^a		11,248,513		5,022,341
Emaar Malls Group PJSC		6,818,373		5,123,386
Emaar Properties PJSC		11,956,779		23,112,121
Emirates Telecommunications Group Co. PJSC		5,928,745		31,878,444
Eshraq Properties Co. PJSC^a		5,778,184		1,274,218
First Gulf Bank PJSC		3,066,158		9,766,695
National Bank of Abu Dhabi PJSC		2,456,429		6,099,108
Orascom Construction Ltd.^a		266,359		1,331,795


42		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Union Properties PJSC^a		1,975,607	$	395,864

				137,215,588

TOTAL COMMON STOCKS
(Cost: $15,064,283,647)				15,379,184,895

PREFERRED STOCKS — 3.51%

BRAZIL — 2.52%
Alpargatas SA		560,400		1,802,264
Banco ABC Brasil SA		329,375		1,461,603
Banco Bradesco SA		9,317,584		83,730,902
Banco do Estado do Rio Grande do Sul SA Class B		619,400		2,068,625
Bradespar SA		898,300		2,855,626
Braskem SA Class A		535,100		3,989,505
Centrais Eletricas Brasileiras SA Class B		778,200		6,858,402
Cia. Brasileira de Distribuicao		531,100		8,270,826
Cia. Energetica de Minas Gerais		2,530,820		6,847,880
Cia. Energetica de Sao Paulo Class B		653,900		2,727,785
Cia. Energetica do Ceara Class A		55,000		850,223
Cia. Paranaense de Energia Class B		338,300		3,448,070
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA		337,300		1,282,946
Gerdau SA		3,085,700		8,664,158
Itau Unibanco Holding SA		9,811,012		108,765,162
Itausa-Investimentos Itau SA		13,113,045		34,872,963
Lojas Americanas SA		1,991,210		11,840,858
Marcopolo SA		2,003,400		1,994,851
Metalurgica Gerdau SA		2,107,100		2,417,385
Petroleo Brasileiro SA		13,343,200		53,021,250
Suzano Papel e Celulose SA Class A		1,398,500		4,411,126
Telefonica Brasil SA		1,487,600		22,398,183
Vale SA		6,268,400		28,048,657

				402,629,250
CHILE — 0.07%
Embotelladora Andina SA Class B		903,973		3,245,956
Sociedad Quimica y Minera de Chile SA Series B		330,725		8,470,785

				11,716,741


Security	Shares		Value
COLOMBIA — 0.16%
Avianca Holdings SA		1,741,100	$	1,497,188
Bancolombia SA		1,519,872		14,973,348
Grupo Aval Acciones y Valores SA		12,164,954		5,148,010
Grupo de Inversiones Suramericana SA		294,938		3,814,284

				25,432,830
RUSSIA — 0.11%
Surgutneftegas OJSC		23,570,900		11,867,967
Transneft PJSC		2,068		4,902,371

				16,770,338
SOUTH KOREA — 0.65%
AmorePacific Corp.		31,711		6,256,879
Hyundai Motor Co.		72,495		6,228,718
Hyundai Motor Co. Series 2		125,136		11,279,075
LG Chem Ltd.		25,987		4,195,211
LG Household & Health Care Ltd.		7,573		3,864,607
Samsung Electronics Co. Ltd.		60,929		72,349,772

				104,174,262

TOTAL PREFERRED STOCKS
(Cost: $544,200,251)				560,723,421

WARRANTS — 0.00%

THAILAND — 0.00%
Group Lease PCL (Expires 07/31/18)^a,b		137,266		60,275

				60,275

TOTAL WARRANTS
(Cost: $0)				60,275

RIGHTS — 0.00%

BRAZIL — 0.00%
AES Tiete Energia SA^a		20,682		26,414

				26,414
INDIA — 0.00%
Sintex Industries Ltd.^a		222,368		32,706

				32,706
SOUTH AFRICA — 0.00%
PPC Ltd.^a		3,803,679		511,840

				511,840


CONSOLIDATED SCHEDULES OF INVESTMENTS			43

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
SOUTH KOREA — 0.00%
Hanwha Corp.^a		36,863	$	—
Hanwha Investment & Securities Co. Ltd.^a,b		259,947		12,589

				12,589
THAILAND — 0.00%
Bangchak Petroleum PCL (The)^a		76,320		—

				—

TOTAL RIGHTS
(Cost: $1,550,660)				583,549

SHORT-TERM INVESTMENTS — 5.50%

MONEY MARKET FUNDS — 5.50%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^e,f,g		871,454,644		871,454,644
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^e,f		8,588,279		8,588,279

				880,042,923

TOTAL SHORT-TERM INVESTMENTS
(Cost: $880,042,923)				880,042,923


	Value
TOTAL INVESTMENTS IN SECURITIES — 105.11%
(Cost: $16,490,077,481)^h	$	16,820,595,063
Other Assets, Less Liabilities — (5.11)%		(817,106,932	)

NET ASSETS — 100.00%	$	16,003,488,131

ADR — American Depositary Receipts

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

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	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 money market fund.

^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.

^h	The cost of investments for federal income tax purposes was $17,005,902,297. Net unrealized depreciation was $185,307,234, of which $1,420,127,699 represented gross unrealized appreciation on securities and $1,605,434,933 represented gross unrealized depreciation on securities.

Schedule 1 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2016 were as follows:


Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
MSCI Emerging Markets Mini		1,235		Sep.2016		New York Board of Trade	$	49,848,785	$	54,827,825	$	4,979,040


44		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2016

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	15,368,495,146	$	8,758,924	$	1,930,825	$	15,379,184,895
Preferred stocks		560,723,421		—		—		560,723,421
Warrants		60,275		—		—		60,275
Rights		550,843		32,706		—		583,549
Money market funds		880,042,923		—		—		880,042,923

Total	$	16,809,872,608	$	8,791,630	$	1,930,825	$	16,820,595,063

Derivative financial instruments^a:
Assets:
Futures contracts	$	4,979,040	$	—	$	—	$	4,979,040

Total	$	4,979,040	$	—	$	—	$	4,979,040

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

See notes to consolidated financial statements.


CONSOLIDATED SCHEDULES OF INVESTMENTS			45

Consolidated Schedule of Investments

iSHARES^® MSCI BRIC ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 93.15%

BRAZIL — 9.75%
AES Tiete Energia SA		21,800	$	112,580
Ambev SA		457,865		2,717,060
Banco Bradesco SA		79,626		716,531
Banco do Brasil SA		87,289		626,501
Banco Santander Brasil SA Units		43,600		305,785
BB Seguridade Participacoes SA		65,400		589,526
BM&FBovespa SA-Bolsa de Valores Mercadorias e Futuros		174,469		966,275
BR Malls Participacoes SA^a		56,820		216,822
BRF SA		54,500		907,547
CCR SA		87,200		460,026
CETIP SA – Mercados Organizados		22,360		302,162
Cia. de Saneamento Basico do Estado de Sao Paulo		32,700		297,190
Cia. Siderurgica Nacional SA^a		65,400		173,925
Cielo SA		104,501		1,085,469
Cosan SA Industria e Comercio		10,900		126,804
CPFL Energia SA		12,954		93,135
Duratex SA		32,748		88,002
EDP – Energias do Brasil SA		32,700		144,601
Embraer SA		65,400		289,808
Engie Brasil Energia SA		21,800		262,911
Equatorial Energia SA		21,800		340,907
Fibria Celulose SA		21,841		148,655
Hypermarcas SA		32,700		263,922
JBS SA		76,352		295,133
Klabin SA Units		54,500		286,505
Kroton Educacional SA		130,864		558,452
Localiza Rent A Car SA		10,960		136,619
Lojas Americanas SA		10,900		47,088
Lojas Renner SA		65,400		518,338
Multiplan Empreendimentos Imobiliarios SA		10,900		196,542
Natura Cosmeticos SA		10,900		105,029
Odontoprev SA		21,800		85,952
Petroleo Brasileiro SA^a		294,300		1,341,450
Porto Seguro SA		10,900		92,861
Qualicorp SA		21,800		152,893
Raia Drogasil SA		21,850		403,243
Rumo Logistica Operadora Multimodal SA^a		76,300		169,881
Sul America SA		21,872		110,449
TIM Participacoes SA		87,269		224,258


Security	Shares		Value
TOTVS SA		10,900	$	101,119
Transmissora Alianca de Energia Eletrica SA Units		10,900		78,199
Ultrapar Participacoes SA		32,700		752,632
Vale SA		119,900		628,086
WEG SA		53,840		275,210

				17,796,083
CHINA — 57.52%
3SBio Inc.^a,b,c		109,000		111,294
58.com Inc. ADR^a		7,412		337,246
AAC Technologies Holdings Inc.		54,500		621,462
Agricultural Bank of China Ltd. Class H		2,398,000		986,189
Air China Ltd. Class H		236,000		174,640
Alibaba Group Holding Ltd. ADR^a,c		108,891		10,583,116
Alibaba Health Information Technology Ltd.^a		296,000		184,314
Alibaba Pictures Group Ltd.^a,c		1,160,000		239,275
Aluminum Corp. of China Ltd. Class H^a,c		436,000		163,569
Anhui Conch Cement Co. Ltd. Class H		109,000		306,340
ANTA Sports Products Ltd.		109,040		295,206
AviChina Industry & Technology Co. Ltd. Class H		218,000		160,196
Baidu Inc.^a		26,705		4,568,424
Bank of China Ltd. Class H		7,739,000		3,482,014
Bank of Communications Co. Ltd. Class H		767,200		592,455
Beijing Capital International Airport Co. Ltd. Class H		218,000		245,915
Beijing Enterprises Holdings Ltd.		54,500		312,663
Beijing Enterprises Water Group Ltd.		436,000		304,091
Belle International Holdings Ltd.		545,000		354,117
Brilliance China Automotive Holdings Ltd.		218,000		249,287
Byd Co. Ltd. Class H^a		54,500		379,411
CGN Power Co. Ltd. Class H^b		981,000		284,559
China Cinda Asset Management Co. Ltd. Class H		763,000		258,702
China CITIC Bank Corp. Ltd. Class H		872,000		575,581
China Coal Energy Co. Ltd. Class H^a		109,000		52,134


46		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2016


Security	Shares		Value
China Communications Construction Co. Ltd. Class H		446,000	$	486,436
China Communications Services Corp. Ltd. Class H		218,800		128,627
China Conch Venture Holdings Ltd.		109,000		209,660
China Construction Bank Corp. Class H		8,284,370		6,194,520
China COSCO Holdings Co. Ltd. Class H^a,c		233,000		77,499
China Everbright Bank Co. Ltd. Class H		336,000		158,974
China Everbright International Ltd.		218,000		278,797
China Evergrande Group		436,000		301,281
China Galaxy Securities Co. Ltd. Class H		272,500		255,400
China Gas Holdings Ltd.^c		218,000		370,418
China Huishan Dairy Holdings Co. Ltd.^c		436,000		167,503
China Jinmao Holdings Group Ltd.^c		254,000		79,245
China Life Insurance Co. Ltd. Class H		763,000		1,823,705
China Longyuan Power Group Corp. Ltd.		327,000		274,863
China Medical System Holdings Ltd.		109,000		182,680
China Mengniu Dairy Co. Ltd.		327,000		620,549
China Merchants Bank Co. Ltd. Class H		381,956		929,684
China Merchants Holdings International Co. Ltd.		218,000		621,111
China Minsheng Banking Corp. Ltd. Class H		545,000		585,980
China Mobile Ltd.		599,500		7,404,145
China National Building Material Co. Ltd. Class H		218,000		98,366
China Oilfield Services Ltd. Class H		218,000		171,157
China Overseas Land & Investment Ltd.		436,800		1,444,409
China Pacific Insurance Group Co. Ltd. Class H		239,800		843,980
China Petroleum & Chemical Corp. Class H		2,616,600		1,899,179
China Power International Development Ltd.		327,000		123,520
China Railway Construction Corp. Ltd. Class H		175,500		214,716


Security	Shares		Value
China Railway Group Ltd. Class H		436,000	$	323,202
China Resources Beer Holdings Co. Ltd.		218,000		503,072
China Resources Gas Group Ltd.		89,000		298,321
China Resources Land Ltd.		246,444		694,208
China Resources Power Holdings Co. Ltd.		218,200		376,947
China Shenhua Energy Co. Ltd. Class H		327,000		587,666
China Shipping Container Lines Co. Ltd. Class H^a,c		238,000		49,706
China Southern Airlines Co. Ltd. Class H		218,000		129,281
China State Construction International Holdings Ltd.		218,000		260,248
China Taiping Insurance Holdings Co. Ltd.^a		132,840		266,476
China Telecom Corp. Ltd. Class H		1,308,000		676,196
China Unicom Hong Kong Ltd.		655,900		743,270
China Vanke Co. Ltd. Class H		118,401		303,759
Chongqing Changan Automobile Co. Ltd. Class B		81,000		123,222
Chongqing Rural Commercial Bank Co. Ltd. Class H		218,000		126,470
CITIC Ltd.		436,000		686,875
CITIC Securities Co. Ltd. Class H		218,000		487,333
CNOOC Ltd.		1,744,000		2,142,691
COSCO Pacific Ltd.		228,000		246,908
Country Garden Holdings Co. Ltd.		545,046		276,853
CRRC Corp. Ltd. Class H		402,400		360,029
CSPC Pharmaceutical Group Ltd.		436,000		423,255
Ctrip.com International Ltd.^a,c		33,027		1,563,828
Dalian Wanda Commercial Properties Co. Ltd. Class H^b		56,300		382,507
Dongfeng Motor Group Co. Ltd. Class H		218,000		232,987
ENN Energy Holdings Ltd.		74,000		414,516
Far East Horizon Ltd.		218,000		203,758
Fosun International Ltd.		218,000		301,843
GCL-Poly Energy Holdings Ltd.^c		1,276,000		180,952
Geely Automobile Holdings Ltd.		545,000		437,026
GF Securities Co. Ltd. Class H		130,800		284,980
GOME Electrical Appliances Holding Ltd.^c		1,126,400		133,598
Great Wall Motor Co. Ltd. Class H		265,000		257,253


CONSOLIDATED SCHEDULES OF INVESTMENTS			47

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2016


Security	Shares		Value
Guangdong Investment Ltd.		218,000	$	337,255
Guangzhou Automobile Group Co. Ltd. Class H		218,454		300,782
Guangzhou R&F Properties Co. Ltd. Class H		87,200		147,268
Haier Electronics Group Co. Ltd.		129,000		215,866
Haitong Securities Co. Ltd. Class H		305,200		531,176
Hanergy Thin Film Power Group Ltd.^a		7,709		—
Hengan International Group Co. Ltd.		54,500		461,266
Huaneng Power International Inc. Class H		436,000		265,307
Huaneng Renewables Corp. Ltd. Class H		436,000		161,882
Huatai Securities Co. Ltd. Class H^b		130,800		276,886
Industrial & Commercial Bank of China Ltd. Class H		7,194,050		4,572,362
JD.com Inc. ADR^a,c		67,144		1,706,129
Jiangxi Copper Co. Ltd. Class H		109,000		125,908
Kingsoft Corp. Ltd.^c		109,000		222,869
Kunlun Energy Co. Ltd.		218,000		160,477
Lenovo Group Ltd.		872,000		587,947
Longfor Properties Co. Ltd.		163,500		263,480
Luye Pharma Group Ltd.^a		109,000		69,278
Netease Inc.		7,739		1,640,436
New China Life Insurance Co. Ltd. Class H		87,200		354,679
New Oriental Education & Technology Group Inc. ADR		12,644		499,185
Nine Dragons Paper (Holdings) Ltd.		109,000		87,546
People’s Insurance Co. Group of China Ltd. (The) Class H		654,000		263,059
PetroChina Co. Ltd. Class H		1,962,000		1,310,234
PICC Property & Casualty Co. Ltd. Class H		437,548		723,159
Ping An Insurance Group Co. of China Ltd. Class H		490,500		2,538,895
Qunar Cayman Islands Ltd. ADR^a,c		2,943		87,466
Semiconductor Manufacturing International Corp.^a		2,834,000		310,555
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		184,000		119,081
Shanghai Electric Group Co. Ltd. Class H^a		222,000		98,740
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		58,000		168,241


Security	Shares		Value
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		76,380	$	126,944
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		65,400		179,588
Shenzhou International Group Holdings Ltd.		55,000		361,266
Shimao Property Holdings Ltd.		109,000		151,765
Shui On Land Ltd.		327,333		92,839
Sino Biopharmaceutical Ltd.		436,000		279,921
Sino-Ocean Group Holding Ltd.		272,500		126,470
Sinopec Engineering Group Co. Ltd. Class H		109,000		90,356
Sinopec Shanghai Petrochemical Co. Ltd. Class H		437,000		225,916
Sinopharm Group Co. Ltd. Class H		130,800		670,294
Sinotrans Ltd. Class H		218,000		107,921
SOHO China Ltd.		218,000		130,124
SouFun Holdings Ltd. ADR^a		27,141		122,135
Sun Art Retail Group Ltd.		218,000		140,242
Sunac China Holdings Ltd.^c		218,000		151,484
TAL Education Group Class A ADR^a,c		3,815		227,984
Tencent Holdings Ltd.		555,900		14,462,323
Tingyi Cayman Islands Holding Corp.		218,000		201,791
TravelSky Technology Ltd. Class H		109,000		237,202
Tsingtao Brewery Co. Ltd. Class H		40,000		134,077
Vipshop Holdings Ltd. ADR^a		38,695		547,921
Want Want China Holdings Ltd.^c		545,000		359,036
Weichai Power Co. Ltd. Class H		40,550		51,179
Yanzhou Coal Mining Co. Ltd. Class H		218,000		124,784
YY Inc. ADR^a,c		2,834		145,809
Zhuzhou CRRC Times Electric Co. Ltd. Class H		60,500		321,736
Zijin Mining Group Co. Ltd. Class H		685,000		227,840
ZTE Corp. Class H		87,248		117,879

				104,972,080
INDIA — 18.64%
ACC Ltd.		5,014		128,012
Adani Ports & Special Economic Zone Ltd.		81,747		320,970
Ambuja Cements Ltd.		51,121		212,171
Apollo Hospitals Enterprise Ltd.		7,412		149,408


48		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2016


Security	Shares		Value
Ashok Leyland Ltd.		101,392	$	132,550
Asian Paints Ltd.		27,577		476,802
Aurobindo Pharma Ltd.		24,958		294,730
Axis Bank Ltd.		155,761		1,388,173
Bajaj Auto Ltd.		8,393		373,280
Bajaj Finance Ltd.		1,526		250,902
Bharat Forge Ltd.		9,374		119,019
Bharat Heavy Electricals Ltd.		63,983		132,896
Bharat Petroleum Corp. Ltd.		16,350		147,118
Bharti Airtel Ltd.		97,882		484,733
Bharti Infratel Ltd.		52,678		275,897
Bosch Ltd.		763		275,348
Cadila Healthcare Ltd.		19,947		113,451
Cairn India Ltd.		43,927		130,627
Cipla Ltd.		33,136		283,489
Coal India Ltd.		69,288		345,043
Container Corp. of India Ltd.		2,969		61,825
Dabur India Ltd.		55,263		239,800
Divi’s Laboratories Ltd.		8,393		165,742
Dr. Reddy’s Laboratories Ltd.		11,219		517,620
Eicher Motors Ltd.		1,199		407,323
GAIL (India) Ltd.		28,013		160,582
GlaxoSmithKline Consumer Healthcare Ltd.		981		91,865
Glenmark Pharmaceuticals Ltd.		12,862		161,538
Godrej Consumer Products Ltd.		11,881		269,074
Havells India Ltd.		22,018		137,296
HCL Technologies Ltd.		55,590		646,253
Hero Motocorp Ltd.		5,232		276,666
Hindalco Industries Ltd.		113,034		268,787
Hindustan Unilever Ltd.		64,092		877,640
Housing Development Finance Corp. Ltd.		148,240		3,111,004
ICICI Bank Ltd.		111,071		427,898
Idea Cellular Ltd.		117,502		163,962
Indiabulls Housing Finance Ltd.		29,321		358,665
Infosys Ltd.		180,177		2,786,865
ITC Ltd.		329,398		1,279,079
JSW Steel Ltd.		8,066		211,147
Larsen & Toubro Ltd.		31,719		716,579
LIC Housing Finance Ltd.		29,975		256,491
Lupin Ltd.		21,146		468,010
Mahindra & Mahindra Financial Services Ltd.		26,685		141,952
Mahindra & Mahindra Ltd.		36,772		788,811


Security	Shares		Value
Marico Ltd.		45,780	$	199,266
Maruti Suzuki India Ltd.		10,464		789,628
Motherson Sumi Systems Ltd.		34,008		163,794
Nestle India Ltd.		2,289		223,040
NTPC Ltd.		154,998		368,574
Oil & Natural Gas Corp. Ltd.		82,949		292,681
Piramal Enterprises Ltd.		8,611		236,401
Power Finance Corp. Ltd.		65,626		121,218
Reliance Industries Ltd.		126,741		2,006,054
Shree Cement Ltd.		872		223,629
Shriram Transport Finance Co. Ltd.		14,546		268,689
Siemens Ltd.		7,415		140,179
State Bank of India		152,719		575,803
Sun Pharmaceuticals Industries Ltd.		94,176		1,090,751
Tata Consultancy Services Ltd.		46,216		1,733,048
Tata Motors Ltd.		158,272		1,270,761
Tata Motors Ltd. Class A		35,450		181,855
Tata Power Co. Ltd.		109,325		128,147
Tata Steel Ltd.		28,231		156,015
Tech Mahindra Ltd.		22,781		159,470
Titan Co. Ltd.		26,923		168,244
Ultratech Cement Ltd.		3,815		229,498
United Spirits Ltd.^a		6,431		222,118
UPL Ltd.		33,463		319,265
Vedanta Ltd.		101,370		257,323
Wipro Ltd.		58,416		428,852
Yes Bank Ltd.		27,749		566,043
Zee Entertainment Enterprises Ltd.		57,661		464,508

				34,011,947
RUSSIA — 7.24%
Alrosa PJSC		218,000		252,188
Gazprom PJSC		587,514		1,212,926
Gazprom PJSC ADR		262,784		1,062,961
Lukoil PJSC		19,293		865,111
Lukoil PJSC ADR		21,698		973,155
Magnit PJSC GDR^d		27,686		1,091,936
MegaFon PJSC GDR^d		9,374		95,146
MMC Norilsk Nickel PJSC		5,450		802,372
Mobile TeleSystems PJSC ADR		49,922		405,866
Moscow Exchange MICEX-RTS PJSC		141,700		275,344
Novatek OJSC GDR^d		9,047		975,267
PhosAgro PJSC GDR^d		8,284		111,006
Rosneft PJSC		113,822		600,617
Rostelecom PJSC		86,750		108,905


CONSOLIDATED SCHEDULES OF INVESTMENTS			49

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2016


Security	Shares		Value
RusHydro PJSC		9,483,200	$	115,350
Sberbank of Russia PJSC		1,065,380		2,337,583
Severstal PJSC		18,530		215,891
Sistema PJSC FC GDR^d		15,914		135,110
Surgutneftegas OJSC		314,010		150,271
Surgutneftegas OJSC ADR		41,463		195,457
Tatneft PJSC Class S		140,613		688,512
VTB Bank PJSC		520,436,001		542,399

				13,213,373

TOTAL COMMON STOCKS (Cost: $170,815,526)				169,993,483

PREFERRED STOCKS — 6.66%

BRAZIL — 6.27%
Banco Bradesco SA		278,485		2,502,559
Braskem SA Class A		10,900		81,266
Centrais Eletricas Brasileiras SA Class B		21,882		192,850
Cia. Brasileira de Distribuicao		10,956		170,618
Cia. Energetica de Minas Gerais		76,332		206,539
Cia. Energetica de Sao Paulo Class B		21,800		90,940
Cia. Paranaense de Energia Class B		10,900		111,097
Gerdau SA		98,100		275,449
Itau Unibanco Holding SA		283,429		3,142,102
Itausa-Investimentos Itau SA		407,989		1,085,010
Lojas Americanas SA		65,504		389,526
Petroleo Brasileiro SA		381,514		1,516,004
Suzano Papel e Celulose SA Class A		43,600		137,522
Telefonica Brasil SA		43,664		657,431
Vale SA		196,200		877,919

				11,436,832
RUSSIA — 0.39%
Surgutneftegas OJSC		675,800		340,266
Transneft PJSC		158		374,552

				714,818

TOTAL PREFERRED STOCKS (Cost: $14,596,559)				12,151,650


Security	Shares		Value
RIGHTS — 0.00%

BRAZIL — 0.00%
AES Tiete Energia SA^a		698	$	891

				891

TOTAL RIGHTS (Cost: $0)				891

SHORT-TERM INVESTMENTS — 3.61%

MONEY MARKET FUNDS — 3.61%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^e,f,g		6,588,665		6,588,665

				6,588,665

TOTAL SHORT-TERM INVESTMENTS (Cost: $6,588,665)				6,588,665

TOTAL INVESTMENTS IN SECURITIES — 103.42% (Cost: $192,000,750)^h				188,734,689
Other Assets, Less Liabilities — (3.42)%				(6,246,791	)

NET ASSETS — 100.00%			$	182,487,898

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

^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	All or a portion of this security represents a security on loan. 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 money market fund.

^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.

^h	The cost of investments for federal income tax purposes was $200,058,761. Net unrealized depreciation was $11,324,072, of which $34,153,837 represented gross unrealized appreciation on securities and $45,477,909 represented gross unrealized depreciation on securities.


50		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2016

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3			Total
Investments:
Assets:
Common stocks	$	169,894,743	$	98,740	$	0	^a	$	169,993,483
Preferred stocks		12,151,650		—		—			12,151,650
Rights		891		—		—			891
Money market funds		6,588,665		—		—			6,588,665

Total	$	188,635,949	$	98,740	$	0	^a	$	188,734,689

Rounds to less than $1.

See notes to consolidated financial statements.


CONSOLIDATED SCHEDULES OF INVESTMENTS			51

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 98.66%

CHINA — 37.33%
3SBio Inc.^a,b,c		75,500	$	77,089
58.com Inc. ADR^a		5,744		261,352
AAC Technologies Holdings Inc.		55,500		632,865
Agricultural Bank of China Ltd. Class H		1,853,000		762,055
Air China Ltd. Class H		138,000		102,120
Alibaba Group Holding Ltd. ADR^a		84,249		8,188,160
Alibaba Health Information Technology Ltd.^a		246,000		153,180
Alibaba Pictures Group Ltd.^a,c		830,000		171,206
Aluminum Corp. of China Ltd. Class H^a		296,000		111,047
Anhui Conch Cement Co. Ltd. Class H		93,000		261,372
ANTA Sports Products Ltd.^c		75,000		203,049
AviChina Industry & Technology Co. Ltd. Class H		164,000		120,514
Baidu Inc.^a		20,377		3,485,893
Bank of China Ltd. Class H		5,935,000		2,670,339
Bank of Communications Co. Ltd. Class H		658,000		508,128
Beijing Capital International Airport Co. Ltd. Class H		112,000		126,342
Beijing Enterprises Holdings Ltd.		38,500		220,872
Beijing Enterprises Water Group Ltd.		332,000		231,556
Belle International Holdings Ltd.		469,000		304,736
Brilliance China Automotive Holdings Ltd.		228,000		260,723
Byd Co. Ltd. Class H^a,c		48,500		337,641
CGN Power Co. Ltd. Class H^b		787,000		228,285
China Cinda Asset Management Co. Ltd. Class H		666,000		225,814
China CITIC Bank Corp. Ltd. Class H		674,000		444,887
China Coal Energy Co. Ltd. Class H^a,c		154,000		73,657
China Communications Construction Co. Ltd. Class H		334,000		364,281
China Communications Services Corp. Ltd. Class H		180,000		105,818
China Conch Venture Holdings Ltd.		102,000		196,196


Security	Shares		Value
China Construction Bank Corp. Class H		6,313,000	$	4,720,456
China COSCO Holdings Co. Ltd. Class H^a,c		198,500		66,024
China Everbright Bank Co. Ltd. Class H		232,000		109,768
China Everbright International Ltd.^c		186,000		237,873
China Everbright Ltd.		70,000		145,293
China Evergrande Group^c		302,000		208,685
China Galaxy Securities Co. Ltd. Class H		222,500		208,538
China Gas Holdings Ltd.^c		130,000		220,891
China Huishan Dairy Holdings Co. Ltd.^c		304,000		116,791
China Jinmao Holdings Group Ltd.^c		282,000		87,980
China Life Insurance Co. Ltd. Class H		555,000		1,326,548
China Longyuan Power Group Corp. Ltd.		242,000		203,415
China Medical System Holdings Ltd.		96,000		160,892
China Mengniu Dairy Co. Ltd.		207,000		392,824
China Merchants Bank Co. Ltd. Class H		290,331		706,668
China Merchants Holdings International Co. Ltd.^c		98,000		279,215
China Minsheng Banking Corp. Ltd. Class H		444,800		478,246
China Mobile Ltd.		460,000		5,681,245
China National Building Material Co. Ltd. Class H		216,000		97,464
China Oilfield Services Ltd. Class H		136,000		106,777
China Overseas Land & Investment Ltd.		294,000		972,198
China Pacific Insurance Group Co. Ltd. Class H		199,000		700,384
China Petroleum & Chemical Corp. Class H		1,906,600		1,383,847
China Power International Development Ltd.		239,000		90,279
China Railway Construction Corp. Ltd. Class H		145,000		177,400
China Railway Group Ltd. Class H		301,000		223,128
China Resources Beer Holdings Co. Ltd.		124,000		286,151
China Resources Gas Group Ltd.		68,000		227,931


52		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2016


Security	Shares		Value
China Resources Land Ltd.		205,777	$	579,654
China Resources Power Holdings Co. Ltd.		146,000		252,219
China Shenhua Energy Co. Ltd. Class H		256,500		460,968
China Shipping Container Lines Co. Ltd. Class H^a,c		270,000		56,390
China Southern Airlines Co. Ltd. Class H		136,000		80,652
China State Construction International Holdings Ltd.		136,000		162,357
China Taiping Insurance Holdings Co. Ltd.^a		118,900		238,513
China Telecom Corp. Ltd. Class H		1,048,000		541,784
China Unicom Hong Kong Ltd.		452,000		512,209
China Vanke Co. Ltd. Class H		99,900		256,294
Chongqing Changan Automobile Co. Ltd. Class B		65,000		98,882
Chongqing Rural Commercial Bank Co. Ltd. Class H		189,000		109,646
CITIC Ltd.^c		329,000		518,307
CITIC Securities Co. Ltd. Class H		163,000		364,382
CNOOC Ltd.		1,334,000		1,638,962
COSCO Pacific Ltd.		122,000		132,117
Country Garden Holdings Co. Ltd.		418,828		212,741
CRRC Corp. Ltd. Class H		310,750		278,029
CSPC Pharmaceutical Group Ltd.		310,000		300,938
Ctrip.com International Ltd.^a		26,267		1,243,742
Dalian Wanda Commercial Properties Co. Ltd. Class H^b		44,300		300,978
Dongfeng Motor Group Co. Ltd. Class H		204,000		218,024
ENN Energy Holdings Ltd.		56,000		313,688
Far East Horizon Ltd.		148,000		138,331
Fosun International Ltd.		193,500		267,920
GCL-Poly Energy Holdings Ltd.^c		967,000		137,132
Geely Automobile Holdings Ltd.		390,000		312,734
GF Securities Co. Ltd. Class H		102,600		223,540
GOME Electrical Appliances Holding Ltd.^c		925,000		109,711
Great Wall Motor Co. Ltd. Class H		233,500		226,674
Guangdong Investment Ltd.		212,000		327,972
Guangzhou Automobile Group Co. Ltd. Class H		156,000		214,791
Guangzhou R&F Properties Co. Ltd. Class H		74,000		124,975


Security	Shares		Value
Haier Electronics Group Co. Ltd.		95,000	$	158,971
Haitian International Holdings Ltd.		48,000		96,659
Haitong Securities Co. Ltd. Class H		231,600		403,081
Hanergy Thin Film Power Group Ltd.^a		2,513		—
Hengan International Group Co. Ltd.		55,000		465,498
Huadian Power International Corp. Ltd. Class H		122,000		54,577
Huaneng Power International Inc. Class H		314,000		191,070
Huaneng Renewables Corp. Ltd. Class H		298,000		110,644
Huatai Securities Co. Ltd. Class H^b		110,000		232,855
Industrial & Commercial Bank of China Ltd. Class H		5,536,000		3,518,546
JD.com Inc. ADR^a		51,386		1,305,718
Jiangsu Expressway Co. Ltd. Class H		92,000		129,281
Jiangxi Copper Co. Ltd. Class H		95,000		109,737
Kingsoft Corp. Ltd.^c		59,000		120,636
Kunlun Energy Co. Ltd.		244,000		179,616
Lenovo Group Ltd.		544,000		366,793
Longfor Properties Co. Ltd.		109,500		176,459
Luye Pharma Group Ltd.^a		97,000		61,651
Netease Inc.		5,905		1,251,683
New China Life Insurance Co. Ltd. Class H		58,500		237,944
New Oriental Education & Technology Group Inc. ADR		9,974		393,774
Nine Dragons Paper (Holdings) Ltd.		123,000		98,790
People’s Insurance Co. Group of China Ltd. (The) Class H		527,000		211,975
PetroChina Co. Ltd. Class H		1,572,000		1,049,790
PICC Property & Casualty Co. Ltd. Class H		347,160		573,770
Ping An Insurance Group Co. of China Ltd. Class H		389,000		2,013,517
Qunar Cayman Islands Ltd. ADR^a		2,653		78,847
Semiconductor Manufacturing International Corp.^a		2,084,000		228,369
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		140,000		90,605
Shanghai Electric Group Co. Ltd. Class H^a,c		222,000		98,740
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		30,000		87,021


CONSOLIDATED SCHEDULES OF INVESTMENTS			53

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2016


Security	Shares		Value
Shanghai Industrial Holdings Ltd.		37,000	$	96,355
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		71,280		118,467
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		52,300		143,616
Shenzhou International Group Holdings Ltd.^c		42,000		275,876
Shimao Property Holdings Ltd.		93,500		130,183
Shui On Land Ltd.		282,000		79,982
Sino Biopharmaceutical Ltd.		335,000		215,077
Sino-Ocean Group Holding Ltd.		236,000		109,530
Sinopec Engineering Group Co. Ltd. Class H		95,500		79,165
Sinopec Shanghai Petrochemical Co. Ltd. Class H		263,000		135,963
Sinopharm Group Co. Ltd. Class H		90,000		461,211
Sinotrans Ltd. Class H		152,000		75,248
SOHO China Ltd.		155,500		92,818
SouFun Holdings Ltd. ADR^a		21,263		95,684
Sun Art Retail Group Ltd.^c		180,500		116,118
Sunac China Holdings Ltd.^c		140,000		97,283
TAL Education Group Class A ADR^a		3,164		189,081
Tencent Holdings Ltd.		423,100		11,007,391
Tingyi Cayman Islands Holding Corp.^c		148,000		136,996
TravelSky Technology Ltd. Class H		70,000		152,332
Tsingtao Brewery Co. Ltd. Class H		28,000		93,854
Vipshop Holdings Ltd. ADR^a		30,151		426,938
Want Want China Holdings Ltd.^c		432,000		284,593
Weichai Power Co. Ltd. Class H		68,600		86,582
Yanzhou Coal Mining Co. Ltd. Class H		146,000		83,571
YY Inc. ADR^a		2,177		112,007
Zhejiang Expressway Co. Ltd. Class H		108,000		120,437
Zhuzhou CRRC Times Electric Co. Ltd. Class H		40,500		215,377
Zijin Mining Group Co. Ltd. Class H		434,000		144,354
ZTE Corp. Class H		55,360		74,796

				80,948,846
INDIA — 12.11%
ACC Ltd.		3,512		89,664
Adani Ports & Special Economic Zone Ltd.		61,851		242,851


Security	Shares		Value
Ambuja Cements Ltd.		50,623	$	210,104
Apollo Hospitals Enterprise Ltd.		6,046		121,872
Ashok Leyland Ltd.		88,562		115,777
Asian Paints Ltd.		21,605		373,547
Aurobindo Pharma Ltd.		20,204		238,589
Axis Bank Ltd.		125,340		1,117,055
Bajaj Auto Ltd.		6,253		278,103
Bajaj Finance Ltd.		1,192		195,987
Bharat Forge Ltd.		7,538		95,708
Bharat Heavy Electricals Ltd.		44,857		93,170
Bharat Petroleum Corp. Ltd.		19,738		177,604
Bharti Airtel Ltd.		75,109		371,956
Bharti Infratel Ltd.		42,321		221,653
Bosch Ltd.		566		204,255
Cadila Healthcare Ltd.		15,119		85,991
Cairn India Ltd.		35,273		104,892
Cipla Ltd.		26,640		227,914
Coal India Ltd.		51,394		255,934
Container Corp. of India Ltd.		2,546		53,017
Dabur India Ltd.		39,013		169,287
Divi’s Laboratories Ltd.		6,213		122,692
Dr. Reddy’s Laboratories Ltd.		8,822		407,028
Eicher Motors Ltd.		1,044		354,666
GAIL (India) Ltd.		23,822		136,558
GlaxoSmithKline Consumer Healthcare Ltd.		763		71,451
Glenmark Pharmaceuticals Ltd.		10,186		127,930
Godrej Consumer Products Ltd.		9,171		207,700
Havells India Ltd.		18,755		116,949
HCL Technologies Ltd.		42,382		492,706
Hero Motocorp Ltd.		3,724		196,924
Hindalco Industries Ltd.		83,739		199,126
Hindustan Unilever Ltd.		48,779		667,953
Housing Development Finance Corp. Ltd.		112,601		2,363,074
ICICI Bank Ltd.		83,727		322,556
Idea Cellular Ltd.		95,417		133,145
Indiabulls Housing Finance Ltd.		21,875		267,583
Infosys Ltd.		137,675		2,129,471
ITC Ltd.		252,885		981,971
JSW Steel Ltd.		6,192		162,090
Larsen & Toubro Ltd.		23,803		537,744
LIC Housing Finance Ltd.		21,868		187,120
Lupin Ltd.		16,472		364,563
Mahindra & Mahindra Financial Services Ltd.		21,589		114,844


54		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2016


Security	Shares		Value
Mahindra & Mahindra Ltd.		27,991	$	600,446
Marico Ltd.		33,592		146,216
Maruti Suzuki India Ltd.		7,942		599,314
Motherson Sumi Systems Ltd.		24,840		119,638
Nestle India Ltd.		1,730		168,571
NTPC Ltd.		123,975		294,804
Oil & Natural Gas Corp. Ltd.		63,597		224,399
Piramal Enterprises Ltd.		5,989		164,418
Power Finance Corp. Ltd.		49,410		91,265
Reliance Industries Ltd.		97,123		1,537,261
Shree Cement Ltd.		629		161,310
Shriram Transport Finance Co. Ltd.		11,275		208,268
Siemens Ltd.		5,269		99,609
State Bank of India		116,695		439,980
Sun Pharmaceuticals Industries Ltd.		72,089		834,939
Tata Consultancy Services Ltd.		35,423		1,328,323
Tata Motors Ltd.		118,350		950,228
Tata Motors Ltd. Class A		29,145		149,511
Tata Power Co. Ltd.		87,807		102,924
Tata Steel Ltd.		22,364		123,591
Tech Mahindra Ltd.		17,828		124,799
Titan Co. Ltd.		23,349		145,909
Ultratech Cement Ltd.		2,639		158,754
United Spirits Ltd.^a		4,942		170,690
UPL Ltd.		26,810		255,790
Vedanta Ltd.		77,190		195,943
Wipro Ltd.		45,829		336,447
Yes Bank Ltd.		23,452		478,390
Zee Entertainment Enterprises Ltd.		43,304		348,850

				26,271,361
INDONESIA — 3.77%
Adaro Energy Tbk PT		1,127,300		97,730
AKR Corporindo Tbk PT		133,300		67,077
Astra International Tbk PT		1,512,600		929,340
Bank Central Asia Tbk PT		916,600		1,039,942
Bank Danamon Indonesia Tbk PT		242,500		74,587
Bank Mandiri Persero Tbk PT		701,900		593,956
Bank Negara Indonesia Persero Tbk PT		552,700		244,788
Bank Rakyat Indonesia Persero Tbk PT		829,100		728,158
Bumi Serpong Damai Tbk PT		595,800		96,568
Charoen Pokphand Indonesia Tbk PT		544,100		152,996
Global Mediacom Tbk PT		587,500		39,418


Security	Shares		Value
Gudang Garam Tbk PT		36,200	$	175,747
Hanjaya Mandala Sampoerna Tbk PT		711,600		213,507
Indocement Tunggal Prakarsa Tbk PT		111,300		148,512
Indofood CBP Sukses Makmur Tbk PT		173,400		130,393
Indofood Sukses Makmur Tbk PT		331,800		198,229
Jasa Marga Persero Tbk PT		138,900		50,890
Kalbe Farma Tbk PT		1,583,000		214,209
Lippo Karawaci Tbk PT		1,443,300		119,686
Matahari Department Store Tbk PT		177,100		267,018
Media Nusantara Citra Tbk PT		346,300		50,124
Perusahaan Gas Negara Persero Tbk PT		804,800		183,226
Semen Indonesia Persero Tbk PT		227,500		169,789
Summarecon Agung Tbk PT		725,000		95,646
Surya Citra Media Tbk PT		458,600		104,754
Telekomunikasi Indonesia Persero Tbk PT		3,770,700		1,196,732
Tower Bersama Infrastructure Tbk PT		179,800		75,566
Unilever Indonesia Tbk PT		115,100		396,104
United Tractors Tbk PT		126,600		178,948
Waskita Karya Persero Tbk PT		356,000		74,877
XL Axiata Tbk PT^a		286,200		61,275

				8,169,792
MALAYSIA — 3.89%
AirAsia Bhd^c		99,800		73,826
Alliance Financial Group Bhd		70,700		68,861
AMMB Holdings Bhd		134,000		145,052
Astro Malaysia Holdings Bhd		116,900		85,034
Axiata Group Bhd		196,700		266,276
Berjaya Sports Toto Bhd		47,555		39,282
British American Tobacco Malaysia Bhd		10,700		129,862
CIMB Group Holdings Bhd		232,500		275,182
Dialog Group Bhd		233,378		88,621
DiGi.Com Bhd^c		262,900		325,424
Felda Global Ventures Holdings Bhd^c		97,000		54,294
Gamuda Bhd^c		123,500		148,608
Genting Bhd^c		170,900		328,694
Genting Malaysia Bhd		223,700		244,909
Genting Plantations Bhd		18,400		48,093


CONSOLIDATED SCHEDULES OF INVESTMENTS			55

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2016


Security	Shares		Value
HAP Seng Consolidated Bhd		44,200	$	84,793
Hartalega Holdings Bhd^c		46,300		50,005
Hong Leong Bank Bhd		50,500		162,875
Hong Leong Financial Group Bhd		16,500		65,422
IHH Healthcare Bhd		216,100		348,488
IJM Corp. Bhd		211,500		178,879
IOI Corp. Bhd^c		169,800		185,061
IOI Properties Group Bhd^c		126,115		78,365
Kuala Lumpur Kepong Bhd		33,000		191,873
Lafarge Malaysia Bhd		24,600		48,830
Malayan Banking Bhd^c		255,800		493,245
Malaysia Airports Holdings Bhd^c		55,300		85,906
Maxis Bhd^c		140,000		216,792
MISC Bhd^c		85,200		158,824
Petronas Chemicals Group Bhd^c		179,100		295,446
Petronas Dagangan Bhd		14,900		85,972
Petronas Gas Bhd		52,200		285,745
PPB Group Bhd		35,700		141,550
Public Bank Bhd^c		205,210		1,001,888
RHB Bank Bhd^c		59,862		73,804
RHB Bank Bhd New		28,800		—
Sapurakencana Petroleum Bhd		310,100		120,813
Sime Darby Bhd^c		187,300		364,393
Telekom Malaysia Bhd		86,100		145,216
Tenaga Nasional Bhd		252,700		918,456
UMW Holdings Bhd		33,400		45,873
Westports Holdings Bhd		81,500		89,428
YTL Corp. Bhd		323,553		134,033
YTL Power International Bhd		157,215		57,761

				8,431,754
PHILIPPINES — 2.00%
Aboitiz Equity Ventures Inc.		147,890		238,046
Aboitiz Power Corp.		113,000		110,344
Alliance Global Group Inc.		149,700		52,369
Ayala Corp.		18,570		348,723
Ayala Land Inc.		550,200		454,613
Bank of the Philippine Islands		53,180		120,410
BDO Unibank Inc.		125,120		306,926
DMCI Holdings Inc.		282,500		69,723
Energy Development Corp.		709,500		87,250
Globe Telecom Inc.		2,595		109,715
GT Capital Holdings Inc.		5,730		188,766
International Container Terminal Services Inc.		40,960		73,841
JG Summit Holdings Inc.		215,176		360,205


Security	Shares		Value
Jollibee Foods Corp.		31,870	$	167,575
Megaworld Corp.		825,400		83,435
Metro Pacific Investments Corp.		963,500		143,093
Metropolitan Bank & Trust Co.		47,786		85,634
PLDT Inc.		7,335		287,450
Robinsons Land Corp.		125,300		85,783
Security Bank Corp.		8,380		38,379
SM Investments Corp.		18,229		266,031
SM Prime Holdings Inc.		620,450		397,477
Universal Robina Corp.		65,480		262,791

				4,338,579
SOUTH KOREA — 19.60%
AmorePacific Corp.		2,405		832,583
AmorePacific Group		2,092		272,054
BGF retail Co. Ltd.		736		133,668
BNK Financial Group Inc.		20,021		158,911
Celltrion Inc.^a,c		5,644		540,609
Cheil Worldwide Inc.		4,968		70,844
CJ CheilJedang Corp.		606		211,692
CJ Corp.		1,084		185,690
CJ E&M Corp.		1,485		92,563
CJ Korea Express Corp.^a		533		96,083
Coway Co. Ltd.		4,096		306,373
Daelim Industrial Co. Ltd.		2,108		153,326
Daewoo Engineering & Construction Co. Ltd.^a		9,473		51,655
DGB Financial Group Inc.		12,514		102,581
Dongbu Insurance Co. Ltd.		3,714		224,839
Dongsuh Cos. Inc.		2,725		75,396
Doosan Heavy Industries & Construction Co. Ltd.		3,723		92,324
E-MART Inc.		1,465		206,939
GS Engineering & Construction Corp.^a,c		3,481		89,757
GS Holdings Corp.		3,735		165,479
GS Retail Co. Ltd.		2,095		88,497
Hana Financial Group Inc.		22,178		582,794
Hankook Tire Co. Ltd.		5,701		285,306
Hanmi Pharm Co. Ltd.		387		206,169
Hanmi Science Co. Ltd.		883		106,118
Hanon Systems		13,824		145,059
Hanssem Co. Ltd.		778		102,570
Hanwha Chemical Corp.		8,017		184,067
Hanwha Corp.		3,277		107,715
Hanwha Life Insurance Co. Ltd.		17,484		88,910


56		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2016


Security	Shares		Value
Hotel Shilla Co. Ltd.		2,441	$	148,430
Hyosung Corp.		1,575		186,457
Hyundai Department Store Co. Ltd.		1,171		131,803
Hyundai Development Co. – Engineering & Construction		4,089		171,078
Hyundai Engineering & Construction Co. Ltd.		5,470		189,120
Hyundai Glovis Co. Ltd.		1,393		229,252
Hyundai Heavy Industries Co. Ltd.^a		3,118		384,507
Hyundai Marine & Fire Insurance Co. Ltd.		4,526		137,201
Hyundai Mobis Co. Ltd.		5,095		1,190,357
Hyundai Motor Co.		10,737		1,280,736
Hyundai Steel Co.		6,014		276,698
Hyundai Wia Corp.		1,240		101,202
Industrial Bank of Korea		18,810		198,222
Kakao Corp.		2,341		170,694
Kangwon Land Inc.		8,820		312,062
KB Financial Group Inc.		29,039		1,013,110
KCC Corp.		447		165,370
KEPCO Plant Service & Engineering Co. Ltd.		1,724		99,575
Kia Motors Corp.		19,801		744,979
Korea Aerospace Industries Ltd. Class A		4,408		334,850
Korea Electric Power Corp.		19,449		1,011,697
Korea Gas Corp.		2,154		82,007
Korea Investment Holdings Co. Ltd.		3,043		109,439
Korea Zinc Co. Ltd.		630		270,363
Korean Air Lines Co. Ltd.^a		2,704		76,512
KT Corp.		1,558		44,155
KT&G Corp.		8,712		914,174
Kumho Petrochemical Co. Ltd.		1,349		83,360
LG Chem Ltd.		3,470		841,825
LG Corp.		7,115		420,519
LG Display Co. Ltd.		17,440		470,020
LG Electronics Inc.		8,012		370,061
LG Household & Health Care Ltd.		700		597,040
LG Innotek Co. Ltd.		1,107		81,908
LG Uplus Corp.		15,850		165,608
Lotte Chemical Corp.		1,158		278,335
Lotte Chilsung Beverage Co. Ltd.		47		63,271
Lotte Confectionery Co. Ltd.		411		62,479
Lotte Shopping Co. Ltd.		854		155,482
Mirae Asset Daewoo Co. Ltd.		13,958		99,521


Security	Shares		Value
Mirae Asset Securities Co. Ltd.		5,740	$	121,235
NAVER Corp.		2,117		1,604,363
NCsoft Corp.		1,315		318,430
NH Investment & Securities Co. Ltd.		10,801		97,839
OCI Co. Ltd.^a,c		1,313		102,920
Orion Corp./Republic of Korea		271		180,586
Ottogi Corp.		87		54,541
Paradise Co. Ltd.		3,620		54,381
POSCO		5,283		1,094,505
Posco Daewoo Corp.		3,412		70,076
S-1 Corp.		1,487		137,364
S-Oil Corp.		3,388		214,827
Samsung C&T Corp.		5,702		774,756
Samsung Card Co. Ltd.		2,735		108,541
Samsung Electro-Mechanics Co. Ltd.		4,191		199,965
Samsung Electronics Co. Ltd.		7,501		10,898,314
Samsung Fire & Marine Insurance Co. Ltd.		2,471		598,359
Samsung Heavy Industries Co. Ltd.^a		11,474		99,613
Samsung Life Insurance Co. Ltd.		5,252		485,162
Samsung SDI Co. Ltd.		4,113		426,055
Samsung SDS Co. Ltd.		2,618		375,677
Samsung Securities Co. Ltd.		4,423		139,037
Shinhan Financial Group Co. Ltd.		32,236		1,185,360
Shinsegae Inc.		542		98,921
SK Holdings Co. Ltd.		3,413		648,929
SK Hynix Inc.		44,091		1,441,361
SK Innovation Co. Ltd.		4,860		634,197
SK Networks Co. Ltd.		8,789		49,896
SK Telecom Co. Ltd.		1,496		293,162
Woori Bank		22,869		217,409
Yuhan Corp.		579		149,813

				42,499,644
TAIWAN — 16.72%
Acer Inc.		231,062		103,769
Advanced Semiconductor Engineering Inc.		478,434		588,044
Advantech Co. Ltd.		23,894		195,411
Asia Cement Corp.		174,229		155,667
Asia Pacific Telecom Co. Ltd.^a		157,000		52,943
Asustek Computer Inc.		53,000		448,480
AU Optronics Corp.		658,000		259,214
Casetek Holdings Ltd.		10,000		35,140
Catcher Technology Co. Ltd.		49,000		352,090


CONSOLIDATED SCHEDULES OF INVESTMENTS			57

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2016


Security	Shares		Value
Cathay Financial Holding Co. Ltd.		607,944	$	768,300
Chailease Holding Co. Ltd.		77,496		133,839
Chang Hwa Commercial Bank Ltd.		371,614		186,800
Cheng Shin Rubber Industry Co. Ltd.		146,776		311,773
Chicony Electronics Co. Ltd.		39,864		98,622
China Airlines Ltd.		206,000		59,793
China Development Financial Holding Corp.		1,015,200		256,596
China Life Insurance Co. Ltd./Taiwan		261,835		231,877
China Steel Corp.		890,867		617,673
Chunghwa Telecom Co. Ltd.		284,000		1,020,343
Compal Electronics Inc.		318,000		188,412
CTBC Financial Holding Co. Ltd.		1,212,098		700,966
Delta Electronics Inc.		145,000		754,006
E.Sun Financial Holding Co. Ltd.		593,017		333,602
Eclat Textile Co. Ltd.		14,200		179,903
EVA Airways Corp.		145,397		67,359
Evergreen Marine Corp. Taiwan Ltd.		145,050		54,856
Far Eastern New Century Corp.		244,460		180,280
Far EasTone Telecommunications Co. Ltd.		120,000		279,479
Feng TAY Enterprise Co. Ltd.		25,064		119,275
First Financial Holding Co. Ltd.		722,370		371,082
Formosa Chemicals & Fibre Corp.		242,950		630,910
Formosa Petrochemical Corp.		86,000		251,518
Formosa Plastics Corp.		307,400		758,558
Formosa Taffeta Co. Ltd.		57,000		55,059
Foxconn Technology Co. Ltd.		67,843		190,291
Fubon Financial Holding Co. Ltd.		493,396		698,176
Giant Manufacturing Co. Ltd.		21,000		135,343
Hermes Microvision Inc.		3,000		128,583
Highwealth Construction Corp.		60,840		94,528
Hiwin Technologies Corp.		14,981		77,430
Hon Hai Precision Industry Co. Ltd.		1,052,104		2,917,860
Hotai Motor Co. Ltd.		18,000		199,114
HTC Corp.^a		50,000		133,941
Hua Nan Financial Holdings Co. Ltd.		555,392		286,181
Innolux Corp.		677,620		239,181
Inotera Memories Inc.^a		198,000		167,857
Inventec Corp.		190,980		141,743
Largan Precision Co. Ltd.		8,000		897,559
Lite-On Technology Corp.		157,032		237,549
MediaTek Inc.		111,176		874,188


Security	Shares		Value
Mega Financial Holding Co. Ltd.		821,542	$	559,251
Merida Industry Co. Ltd.		15,350		62,647
Nan Ya Plastics Corp.		353,090		674,343
Nanya Technology Corp.		51,000		60,273
Nien Made Enterprise Co. Ltd.		11,000		124,801
Novatek Microelectronics Corp.		43,000		147,035
OBI Pharma Inc.^a		9,000		112,605
Pegatron Corp.		147,000		355,333
Phison Electronics Corp.		11,000		79,561
Pou Chen Corp.		167,000		242,101
Powertech Technology Inc.		50,000		130,474
President Chain Store Corp.		43,000		342,179
Quanta Computer Inc.		204,000		377,391
Realtek Semiconductor Corp.		34,140		136,644
Ruentex Development Co. Ltd.^a		62,888		73,629
Ruentex Industries Ltd.		41,855		64,965
Shin Kong Financial Holding Co. Ltd.^a		619,138		135,806
Siliconware Precision Industries Co. Ltd.		166,438		248,368
Simplo Technology Co. Ltd.		21,200		69,819
SinoPac Financial Holdings Co. Ltd.		770,173		225,247
Standard Foods Corp.		29,873		73,716
Synnex Technology International Corp.		106,050		111,964
TaiMed Biologics Inc.^a		12,000		74,313
Taishin Financial Holding Co. Ltd.		644,561		243,763
Taiwan Business Bank^a		287,045		76,713
Taiwan Cement Corp.		250,000		285,608
Taiwan Cooperative Financial Holding Co. Ltd.		580,435		255,183
Taiwan Fertilizer Co. Ltd.		55,000		72,627
Taiwan Mobile Co. Ltd.		126,000		442,760
Taiwan Semiconductor Manufacturing Co. Ltd.		1,846,000		10,239,234
Teco Electric and Machinery Co. Ltd.		143,000		120,329
Transcend Information Inc.		14,000		40,371
Uni-President Enterprises Corp.		364,650		689,526
United Microelectronics Corp.		914,000		331,259
Vanguard International Semiconductor Corp.		68,000		127,511
Wistron Corp.		182,022		133,660
WPG Holdings Ltd.		112,000		133,247
Yuanta Financial Holding Co. Ltd.		726,893		257,719


58		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2016


Security	Shares		Value
Yulon Motor Co. Ltd.		65,000	$	56,231
Zhen Ding Technology Holding Ltd.		30,455		61,043

				36,270,412
THAILAND — 3.24%
Advanced Info Service PCL NVDR		77,800		371,969
Airports of Thailand PCL NVDR		31,200		362,335
Bangkok Bank PCL Foreign		19,500		95,485
Bangkok Dusit Medical Services PCL NVDR		288,700		195,995
Bangkok Expressway & Metro PCL		539,500		120,008
Banpu PCL NVDR^c		108,400		49,165
BEC World PCL NVDR		66,200		42,839
BTS Group Holdings PCL NVDR		456,500		119,349
Bumrungrad Hospital PCL NVDR		27,000		132,600
Central Pattana PCL NVDR		102,700		178,754
Charoen Pokphand Foods PCL NVDR		202,400		190,030
CP ALL PCL NVDR		370,700		666,640
Delta Electronics Thailand PCL NVDR		38,600		82,518
Electricity Generating PCL NVDR		10,700		61,049
Energy Absolute PCL NVDR^c		86,300		62,951
Glow Energy PCL NVDR		39,700		91,751
Home Product Center PCL NVDR		286,045		90,072
Indorama Ventures PCL NVDR		113,200		104,647
IRPC PCL NVDR		786,000		109,900
Kasikornbank PCL Foreign		87,900		502,786
Kasikornbank PCL NVDR		43,300		247,050
Krung Thai Bank PCL NVDR^c		270,950		148,721
Minor International PCL NVDR		161,980		193,026
PTT Exploration & Production PCL NVDR		105,210		246,950
PTT Global Chemical PCL NVDR		156,300		275,434
PTT PCL NVDR		74,100		747,090
Robinson Department Store PCL NVDR		40,300		74,510
Siam Cement PCL (The) Foreign		22,600		346,030
Siam Cement PCL (The) NVDR		8,400		128,613
Siam Commercial Bank PCL (The) NVDR		114,900		531,092
Thai Oil PCL NVDR		63,300		129,378
Thai Union Group PCL NVDR		141,400		87,825
TMB Bank PCL NVDR		1,063,300		69,421


Security	Shares		Value
True Corp. PCL NVDR^c		742,105	$	173,652

				7,029,635

TOTAL COMMON STOCKS
(Cost: $207,449,469)				213,960,023

PREFERRED STOCKS — 1.05%

SOUTH KOREA — 1.05%
AmorePacific Corp.		654		129,040
Hyundai Motor Co.		1,651		141,853
Hyundai Motor Co. Series 2		2,809		253,188
LG Chem Ltd.		566		91,372
LG Household & Health Care Ltd.		156		79,609
Samsung Electronics Co. Ltd.		1,342		1,593,550

				2,288,612

TOTAL PREFERRED STOCKS
(Cost: $1,953,654)				2,288,612

RIGHTS — 0.00%

SOUTH KOREA — 0.00%
Hanwha Corp.^a		937		—

				—

TOTAL RIGHTS
(Cost: $0)				—

SHORT-TERM INVESTMENTS — 2.07%

MONEY MARKET FUNDS — 2.07%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		4,479,688		4,479,688

				4,479,688

TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,479,688)				4,479,688


CONSOLIDATED SCHEDULES OF INVESTMENTS			59

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 101.78% (Cost: $213,882,811)^g	$	220,728,323
Other Assets, Less Liabilities — (1.78)%		(3,865,281	)

NET ASSETS — 100.00%	$	216,863,042

ADR — American Depositary Receipts

NVDR — Non-Voting Depositary Receipts

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

^d	Affiliated money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $216,067,191. Net unrealized appreciation was $4,661,132, of which $18,223,393 represented gross unrealized appreciation on securities and $13,562,261 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2			Level 3			Total
Investments:
Assets:
Common stocks	$	213,861,283	$	98,740		$	0	^a	$	213,960,023
Preferred stocks		2,288,612		—			—			2,288,612
Rights		—		0	^a		—			0	^a
Money market funds		4,479,688		—			—			4,479,688

Total	$	220,629,583	$	98,740		$	0	^a	$	220,728,323

Rounds to less than $1.

See notes to consolidated financial statements.


60		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 98.81%

BRAZIL — 2.88%
Aliansce Shopping Centers SA		23,200	$	108,044
Alupar Investimento SA Units		22,808		114,188
Arezzo Industria e Comercio SA		12,000		96,481
B2W Cia. Digital^a		19,800		100,108
BR Properties SA		22,941		59,945
Cia. de Saneamento de Minas Gerais-COPASA		13,100		133,682
Cia. Hering		27,700		152,813
Cyrela Brazil Realty SA Empreendimentos e Participacoes		49,300		161,142
EcoRodovias Infraestrutura e Logistica SA^a		53,600		137,903
Estacio Participacoes SA		49,100		251,740
Even Construtora e Incorporadora SA		59,000		76,811
EZ TEC Empreendimentos e Participacoes SA		15,344		78,718
Fleury SA		18,300		216,343
Gafisa SA		116,500		86,101
Iguatemi Empresa de Shopping Centers SA		18,500		164,188
Iochpe Maxion SA		14,300		80,481
Light SA		20,500		96,294
Linx SA		18,600		99,505
Mahle-Metal Leve SA		7,600		55,464
Marfrig Global Foods SA^a		50,400		79,641
Minerva SA^a		23,000		67,141
MRV Engenharia e Participacoes SA		56,900		216,423
Multiplus SA		10,300		133,297
Santos Brasil Participacoes SA		91,500		84,319
Sao Martinho SA		12,300		191,092
SLC Agricola SA		21,000		93,967
Smiles SA		12,000		186,653
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		19,200		169,985

				3,492,469
CHILE — 1.03%
Cia. Sud Americana de Vapores SA^a		3,408,351		53,017


Security	Shares		Value
Engie Energia Chile SA		107,824	$	183,285
Inversiones Aguas Metropolitanas SA		74,854		129,755
Inversiones La Construccion SA		6,809		72,014
Parque Arauco SA		134,155		302,426
Ripley Corp. SA		152,812		92,561
SalfaCorp SA		187,225		140,650
SONDA SA		81,137		145,379
Vina Concha y Toro SA		77,168		128,447

				1,247,534
CHINA — 23.02%
21Vianet Group Inc. ADR^a		13,317		123,449
361 Degrees International Ltd.		234,000		72,703
500.com Ltd. ADR^a		4,910		88,380
51job Inc. ADR^a		4,886		162,850
Agile Property Holdings Ltd.		406,000		230,826
AGTech Holdings Ltd.^a,b		436,000		91,621
Ajisen China Holdings Ltd.		219,000		87,241
Anhui Expressway Co. Ltd. Class H		78,000		64,156
Anton Oilfield Services Group/Hong Kong^a,b		934,000		86,696
Anxin-China Holdings Ltd.^a		1,084,000		32,519
APT Satellite Holdings Ltd.		92,000		67,606
Asia Cement China Holdings Corp.		461,000		108,166
AVIC International Holding HK Ltd.^a,b		898,000		61,358
Baoxin Auto Group Ltd.^a		35,943		21,799
Baozun Inc. ADR^a		2,898		38,225
Beijing Capital Land Ltd. Class H		236,000		92,797
Beijing Enterprises Medical & Health Group Ltd.^a		1,392,000		84,345
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.		103,000		138,896
Best Pacific International Holdings Ltd.		32,000		25,990
Biostime International Holdings Ltd.^a,b		50,000		127,115
Bitauto Holdings Ltd. ADR^a,b		5,390		136,044
Boshiwa International Holding Ltd.^a		32,000		332
Bosideng International Holdings Ltd.		896,000		83,169
BYD Electronic International Co. Ltd.^a		155,500		131,308
C C Land Holdings Ltd.		393,000		101,838


CONSOLIDATED SCHEDULES OF INVESTMENTS			61

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
C.banner International Holdings Ltd.^a		265,000	$	81,993
Capital Environment Holdings Ltd.^a		550,000		22,335
Carnival Group International Holdings Ltd.^a,b		1,082,000		132,517
Central China Securities Co. Ltd. Class H		252,000		115,332
CGN Meiya Power Holdings Co. Ltd.^a,c		432,000		70,731
Chaowei Power Holdings Ltd.^b		146,000		107,852
Cheetah Mobile Inc. ADR^a,b		6,069		78,047
Chiho-Tiande Group Ltd.^a		112,000		82,014
China Aerospace International Holdings Ltd.^b		618,000		84,453
China Agri-Industries Holdings Ltd.^a		466,000		164,610
China All Access Holdings Ltd.^b		278,000		97,843
China Animal Healthcare Ltd.^a,b		126,000		5,421
China Animation Characters Co. Ltd.^a,b		98,000		50,537
China Beidahuang Industry Group Holdings Ltd.^a		956,000		48,067
China BlueChemical Ltd. Class H		432,000		82,426
China Chengtong Development Group Ltd.^a,b		706,000		63,712
China Datang Corp. Renewable Power Co. Ltd. Class H^a		899,000		85,765
China Dongxiang Group Co. Ltd.		995,000		200,110
China Electronics Corp. Holdings Co. Ltd.		272,000		68,029
China Fangda Group Co. Ltd. Class B		90,000		84,468
China First Capital Group Ltd.^a		54,000		46,156
China Foods Ltd.		188,000		84,829
China Harmony New Energy Auto Holding Ltd.^b		145,000		77,017
China High Speed Transmission Equipment Group Co. Ltd.		247,000		227,361
China Huiyuan Juice Group Ltd.^a		136,500		51,209
China Innovationpay Group Ltd.^a		1,096,000		57,225
China Lesso Group Holdings Ltd.		227,000		159,493
China Lilang Ltd.		169,000		100,440
China LotSynergy Holdings Ltd.^a,b		3,020,000		97,335
China Lumena New Materials Corp.^a,b		210,000		2,109


Security	Shares		Value
China Maple Leaf Educational Systems Ltd.^b		146,000	$	109,734
China Merchants Land Ltd.		418,000		70,594
China Metal Recycling Holdings Ltd.^a		12,000		—
China Modern Dairy Holdings Ltd.^a,b		583,000		91,696
China NT Pharma Group Co.Ltd.^b		295,000		76,823
China Ocean Industry Group Ltd.^a		2,750,000		62,043
China Oceanwide Holdings Ltd.^a,b		932,000		97,324
China Oil & Gas Group Ltd.^a		1,610,000		120,386
China Overseas Grand Oceans Group Ltd.^a		415,000		131,079
China Overseas Property Holdings Ltd.		180,000		36,665
China Power New Energy Development Co. Ltd.		120,000		73,020
China Regenerative Medicine International Ltd.^a,b		2,570,000		101,054
China Shanshui Cement Group Ltd.^a,b		253,000		30,007
China Shengmu Organic Milk Ltd.^a,c		143,000		31,709
China Shineway Pharmaceutical Group Ltd.		128,000		134,324
China Silver Group Ltd.		120,000		27,537
China Singyes Solar Technologies Holdings Ltd.^b		175,000		96,787
China Suntien Green Energy Corp. Ltd. Class H		766,000		107,640
China Traditional Chinese Medicine Holdings Co. Ltd.^a		388,000		198,083
China Travel International Investment Hong Kong Ltd.^b		480,000		141,090
China Water Affairs Group Ltd.		230,000		143,514
China Water Industry Group Ltd.^a,b		540,000		88,413
China Yurun Food Group Ltd.^a		397,000		55,276
China ZhengTong Auto Services Holdings Ltd.		258,500		89,980
Chinasoft International Ltd.^a		380,000		176,852
Chongqing Machinery & Electric Co. Ltd. Class H		920,000		102,002
CIFI Holdings Group Co. Ltd.		694,000		217,413
CIMC Enric Holdings Ltd.		158,000		65,793
CITIC Resources Holdings Ltd.^a,b		1,090,000		122,255


62		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Citychamp Watch & Jewellery Group Ltd.		152,000	$	34,685
Cogobuy Group^a,b,c		77,000		124,681
Colour Life Services Group Co. Ltd.		126,000		99,250
Comba Telecom Systems Holdings Ltd.		708,086		125,062
Concord New Energy Group Ltd.		1,470,000		90,018
Coolpad Group Ltd.^a		556,000		106,802
COSCO International Holdings Ltd.^b		216,000		100,805
Cosmo Lady China Holdings Co. Ltd.^b,c		298,000		112,181
Credit China Holdings Ltd.^a,b		396,000		230,246
Crown International Corp. Ltd.^a		160,000		40,842
CT Environmental Group Ltd.		532,000		163,919
Dah Chong Hong Holdings Ltd.^b		239,000		104,452
Dawnrays Pharmaceutical Holdings Ltd.		160,000		111,799
Dazhong Transportation Group Co. Ltd. Class B		153,600		116,736
Digital China Holdings Ltd.		209,000		188,341
Dongyue Group Ltd.^a		395,000		62,789
E-Commerce China Dangdang Inc. ADR^a		14,424		94,189
eHi Car Services Ltd. ADR^a		6,039		63,228
EverChina International Holdings Co. Ltd.^a		1,495,000		50,111
Fantasia Holdings Group Co. Ltd.		520,500		80,523
FDG Electric Vehicles Ltd.^a,b		2,540,000		157,179
FDG Kinetic Ltd.^a,b		356,000		55,534
First Tractor Co. Ltd. Class H		110,000		58,427
Fu Shou Yuan International Group Ltd.^b		229,000		141,118
Fufeng Group Ltd.^b		276,400		120,798
Glorious Property Holdings Ltd.^a		426,000		52,174
Golden Eagle Retail Group Ltd.^b		124,000		154,106
Golden Meditech Holdings Ltd.		524,000		67,554
Goodbaby International Holdings Ltd.		256,000		125,083
Greatview Aseptic Packaging Co. Ltd.		293,000		148,828
Greenland Hong Kong Holdings Ltd.^a		237,000		69,358
Greentown China Holdings Ltd.^a,b		142,000		116,064


Security	Shares		Value
Guorui Properties Ltd.		134,000	$	45,088
Haichang Ocean Park Holdings Ltd.^a,c		465,000		97,115
Hangzhou Steam Turbine Co. Ltd. Class B^a		72,380		92,099
Harbin Electric Co. Ltd. Class H		186,000		84,646
HC International Inc.^a,b		120,000		94,060
Hengdeli Holdings Ltd.^a		709,600		77,759
Hi Sun Technology China Ltd.^a,b		594,000		95,723
Hisense Kelon Electrical Holdings Co. Ltd. Class H		120,000		82,303
Hopewell Highway Infrastructure Ltd.		286,500		166,949
Hopson Development Holdings Ltd.		136,000		133,252
Hua Han Health Industry Holdings Ltd. Class H		1,112,400		77,442
Hua Hong Semiconductor Ltd.^c		99,000		108,486
Huabao International Holdings Ltd.^a		400,000		154,188
Huangshi Dongbei Electrical Appliance Co. Ltd. Class B^a		43,500		86,565
Huayi Tencent Entertainment Co. Ltd.		1,140,000		64,666
Hutchison China Meditech Ltd.^a,b		3,590		86,161
iDreamsky Technology Ltd. ADR^a		1,998		27,692
iKang Healthcare Group Inc. ADR^a		10,408		191,924
IMAX China Holding Inc.^a,b,c		22,000		124,511
Inner Mongolia Yitai Coal Co. Ltd. Class B		208,800		166,414
Intime Retail Group Co. Ltd.^b		301,500		244,877
JA Solar Holdings Co. Ltd. ADR^a		12,718		94,240
JinkoSolar Holding Co. Ltd.^a,b		4,653		85,894
Ju Teng International Holdings Ltd.		252,000		74,722
Jumei International Holding Ltd. ADR^a		15,188		80,193
K Wah International Holdings Ltd.		102,000		55,887
Kama Co. Ltd.^a		57,600		72,576
Kingboard Chemical Holdings Ltd.		132,500		345,054
Kingboard Laminates Holdings Ltd.		90,000		77,855
Kingdee International Software Group Co. Ltd.^a,b		380,000		146,479
Kong Sun Holdings Ltd.^a		1,075,000		48,644
KongZhong Corp. ADR^a		5,759		37,606
Konka Group Co. Ltd. Class B^a		132,800		52,731


CONSOLIDATED SCHEDULES OF INVESTMENTS			63

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
KWG Property Holding Ltd.		240,000	$	161,202
Lao Feng Xiang Co. Ltd. Class B		42,800		154,294
Launch Tech Co. Ltd.^a		45,000		42,292
Lee & Man Paper Manufacturing Ltd.		288,000		232,427
Leyou Technologies Holdings Ltd.^a,b		495,000		73,388
Li Ning Co. Ltd.^a,b		305,000		207,220
Lifetech Scientific Corp.^a,b		456,000		91,121
Livzon Pharmaceutical Group Inc. Class H		19,100		101,327
Logan Property Holdings Co. Ltd.		112,000		48,948
Lonking Holdings Ltd.		758,000		123,129
Luthai Textile Co. Ltd. Class B		87,800		110,475
Minth Group Ltd.		124,000		469,191
MMG Ltd.^a,b		512,000		117,493
Momo Inc. ADR^a,b		6,960		167,110
Nan Hai Corp. Ltd.^a		2,800,000		69,668
National Agricultural Holdings Ltd.^a,b		282,000		59,259
Neo Telemedia Ltd.^a		1,180,000		55,526
NetDragon Websoft Holdings Ltd.^b		33,500		112,937
New Silkroad Culturaltainment Ltd.^a		260,000		50,949
New World Department Store China Ltd.		506,000		67,843
Nexteer Automotive Group Ltd.^b		148,000		203,394
Noah Holdings Ltd. ADR^a,b		5,431		142,835
North Mining Shares Co. Ltd.^a,b		2,930,000		66,481
NQ Mobile Inc. ADR^a,b		18,732		77,363
Optics Valley Union Holding Co. Ltd.^a		300,000		32,101
PAX Global Technology Ltd.^b		164,000		126,857
Peace Map Holding Ltd.^a,b		1,440,000		27,104
Peak Sport Products Co. Ltd.		287,000		89,170
Phoenix Healthcare Group Co. Ltd.		123,500		215,897
Phoenix Satellite Television Holdings Ltd.		672,000		147,278
Poly Property Group Co. Ltd.^a,b		442,000		126,501
Pou Sheng International Holdings Ltd.^a,b		476,000		163,233
Qingdao Port International Co. Ltd.^c		100,000		57,241
Renhe Commercial Holdings Co. Ltd.^a,b		3,162,000		87,644


Security	Shares		Value
Seaspan Corp.		9,513	$	137,939
Shandong Airlines Co. Ltd. Class B		28,200		65,294
Shandong Chenming Paper Holdings Ltd. Class B		63,100		54,422
Shandong Luoxin Pharmaceutical Group Stock Co. Ltd. Class H		40,000		60,231
Shandong Zhonglu Oceanic Fisheries Co. Ltd.^a		71,300		61,770
Shang Gong Group Co. Ltd. Class B^a		80,100		87,870
Shanghai Baosight Software Co. Ltd. Class B		49,000		93,100
Shanghai Dasheng Agricultural Finance Technology Co. Ltd.		336,000		27,290
Shanghai Haixin Group Co. Class B		95,700		80,292
Shanghai Huili Building Materials Co. Ltd.^a		12,500		25,000
Shanghai Jin Jiang International Hotels Group Co. Ltd. Class H		268,000		86,376
Shanghai Jinjiang International Industrial Investment Co. Ltd. Class B		40,800		69,768
Shanghai Jinjiang International Travel Co. Ltd. Class B		20,300		79,028
Shanghai Lingyun Industries Development Co. Ltd. Class B^a		52,900		70,410
Shanghai Potevio Co. Ltd. Class B^a		34,800		59,056
Shanghai Shibei Hi-Tech Co. Ltd. Class B		65,400		79,984
Shanghai Zhongyida Co. Ltd.^a		49,900		28,892
Shenguan Holdings Group Ltd.		1,056,000		76,238
Shenzhen Expressway Co. Ltd. Class H		162,000		171,257
Shenzhen International Holdings Ltd.^b		197,000		316,450
Shenzhen Investment Ltd.		592,000		283,913
Shougang Concord International Enterprises Co. Ltd.^a,b		2,596,000		76,641
Shougang Fushan Resources Group Ltd.		730,000		135,521
Sihuan Pharmaceutical Holdings Group Ltd.^b		901,000		203,275
Sina Corp.^a		10,180		778,770


64		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Sino Oil And Gas Holdings Ltd.^a		3,045,000	$	82,045
Sinolink Worldwide Holdings Ltd.^a		604,000		68,524
Sinopec Kantons Holdings Ltd.		234,000		113,127
Sinosoft Technology Group Ltd.^b		134,000		72,038
Sinotrans Shipping Ltd.^a,b		577,500		82,641
Skyway Securities Group Ltd.^a,b		1,240,000		35,009
Skyworth Digital Holdings Ltd.		384,000		284,655
SMI Holdings Group Ltd.^b		1,136,000		101,053
Sohu.com Inc.^a		5,893		250,688
SSY Group Ltd.		467,970		161,686
Sunny Optical Technology Group Co. Ltd.^b		141,000		753,466
Superb Summit International Group Ltd.^a		238,250		2,393
Tarena International Inc. ADR		9,709		127,188
TCL Communication Technology Holdings Ltd.		141,000		131,243
TCL Multimedia Technology Holdings Ltd.^a		74,000		36,729
Tech Pro Technology Development Ltd.^a,b		1,768,400		51,524
Technovator International Ltd.^b		220,000		88,774
Texhong Textile Group Ltd.^b		64,500		95,793
Tian Ge Interactive Holdings Ltd.^b,c		91,000		57,837
Tianjin Development Holdings Ltd.		206,000		97,732
Tianjin Port Development Holdings Ltd.		592,000		91,585
Tianjin TEDA Biomedical Engineering Co. Ltd.^a		180,000		36,201
Tianneng Power International Ltd.		148,000		120,968
Tibet Water Resources Ltd.^b		437,000		159,437
Tong Ren Tang Technologies Co. Ltd. Class H		128,000		226,734
Tongda Group Holdings Ltd.^b		670,000		139,930
Towngas China Co. Ltd.^b		234,000		134,848
Tuniu Corp. ADR^a		4,695		43,006
United Photovoltaics Group Ltd.^a		1,010,000		76,823
V1 Group Ltd.		1,824,000		87,006
Vinda International Holdings Ltd.		63,000		119,068
Viva China Holdings Ltd.^a,b		728,000		71,329
Wasion Group Holdings Ltd.^b		124,000		70,179
Weiqiao Textile Co. Class H		52,000		36,402
West China Cement Ltd.^a		742,000		74,614
Wisdom Sports Group^a,b		200,000		67,812


Security	Shares		Value
Xiamen International Port Co. Ltd. Class H		412,000	$	82,328
Xingda International Holdings Ltd.^b		401,000		130,276
Xinjiang Xinxin Mining Industry Co. Ltd. Class H^a		662,000		71,690
Xinyi Solar Holdings Ltd.^b		540,000		222,078
Xinyuan Real Estate Co. Ltd. ADR		4,992		30,501
XTEP International Holdings Ltd.^b		191,000		98,741
Yanchang Petroleum International Ltd.^a,b		1,970,000		52,572
Yingde Gases Group Co. Ltd.		270,000		118,000
Yip’s Chemical Holdings Ltd.^b		272,000		106,601
Yuexiu REIT		477,000		313,009
Yuexiu Transport Infrastructure Ltd.^b		190,000		131,782
Yuxing InfoTech Investment Holdings Ltd.^a,b		174,000		56,080
Zhaojin Mining Industry Co. Ltd. Class H^b		195,500		200,119
Zhonglu Co. Ltd. Class B		24,700		54,068
Zhongsheng Group Holdings Ltd.^b		166,500		152,832

				27,887,090
COLOMBIA — 0.29%
Almacenes Exito SA		29,701		146,806
Cemex Latam Holdings SA^a		46,643		210,334

				357,140
CZECH REPUBLIC — 0.12%
Philip Morris CR AS		266		139,758

				139,758
EGYPT — 0.43%
Egyptian Financial Group-Hermes Holding Co.^a		96,854		136,447
Medinet Nasr Housing^a		76,646		124,982
Orascom Telecom Media And Technology Holding SAE GDR^a		135,576		54,027
Palm Hills Developments SAE		332,946		92,235
South Valley Cement^a		224,687		110,067

				517,758
GREECE — 0.54%
Aegean Airlines SA		7,239		56,437
Grivalia Properties REIC AE		9,734		75,780
Hellenic Exchanges-Athens Stock Exchange SA		21,773		105,486
Intralot SA-Integrated Lottery Systems & Services^a		52,331		51,465


CONSOLIDATED SCHEDULES OF INVESTMENTS			65

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Metka Industrial-Construction SA		5,999	$	50,578
Motor Oil Hellas Corinth Refineries SA		11,461		128,796
Mytilineos Holdings SA		24,375		105,876
Public Power Corp. SA^a		27,255		80,441

				654,859
HUNGARY — 0.11%
Magyar Telekom Telecommunications PLC		86,382		134,543

				134,543
INDIA — 11.91%
Adani Enterprises Ltd.		57,572		62,584
Aditya Birla Fashion and Retail Ltd.^a		43,282		100,627
Aditya Birla Nuvo Ltd.		8,980		184,400
AIA Engineering Ltd.		11,487		219,817
Ajanta Pharma Ltd.		6,361		180,591
Alembic Pharmaceuticals Ltd.		14,695		137,921
Alstom T&D India Ltd.		22,171		105,790
Amara Raja Batteries Ltd.		12,499		178,489
Andhra Bank		100,327		90,410
Apollo Tyres Ltd.		57,468		157,078
Arvind Ltd.		33,961		157,863
Balkrishna Industries Ltd.		15,429		202,199
Bayer CropScience Ltd./India		3,679		221,092
Berger Paints India Ltd.		72,667		282,497
Bharat Financial Inclusion Ltd.^a		22,121		270,691
Biocon Ltd.		15,326		209,786
Blue Dart Express Ltd.		1,491		121,196
Ceat Ltd.		5,759		76,810
CESC Ltd.		19,831		197,392
Cox & Kings Ltd.		35,303		98,682
Credit Analysis & Research Ltd.		2,515		46,911
CRISIL Ltd.		6,146		201,656
Crompton Greaves Consumer Electricals Ltd.^a		78,479		193,063
Crompton Greaves Ltd.^a		126,644		157,525
Cyient Ltd.		21,676		161,316
Dalmia Bharat Ltd.		1,934		48,079
DCB Bank Ltd.^a		20,677		37,220
Dewan Housing Finance Corp. Ltd.		49,080		212,971
Dish TV India Ltd.^a		107,810		158,809
eClerx Services Ltd.		5,508		132,428
Edelweiss Financial Services Ltd.		26,297		45,471
EID Parry India Ltd.		29,129		110,218


Security	Shares		Value
Exide Industries Ltd.		58,687	$	162,382
Federal Bank Ltd.		290,397		298,115
Finolex Cables Ltd.		6,358		42,167
Gateway Distriparks Ltd.		23,951		100,389
Gayatri Projects Ltd.		8,737		89,040
Gillette India Ltd.		2,246		149,892
GMR Infrastructure Ltd.^a		211,989		43,050
Great Eastern Shipping Co. Ltd. (The)		24,617		135,583
Gujarat Fluorochemicals Ltd.		14,195		125,523
Gujarat Gas Ltd.		9,467		90,168
Gujarat Mineral Development Corp. Ltd.		77,145		111,565
Gujarat Pipavav Port Ltd.		40,618		107,898
Gujarat State Petronet Ltd.		52,371		118,709
Hexaware Technologies Ltd.		29,060		88,109
Housing Development & Infrastructure Ltd.^a		64,290		88,942
IIFL Holdings Ltd.		56,649		235,875
India Cements Ltd. (The)		15,181		33,957
Indian Hotels Co. Ltd.		102,402		198,932
Indraprastha Gas Ltd.		15,611		186,752
Info Edge India Ltd.		16,811		206,717
Ipca Laboratories Ltd.		15,895		128,451
IRB Infrastructure Developers Ltd.		44,666		151,165
Jain Irrigation Systems Ltd.		37,563		47,227
Jaiprakash Associates Ltd.^a		597,573		103,953
Jammu & Kashmir Bank Ltd. (The)		79,744		83,769
Jindal Steel & Power Ltd.^a		84,169		107,395
Jubilant Foodworks Ltd.		9,067		158,994
Jubilant Life Sciences Ltd.		15,917		127,809
Just Dial Ltd.		8,947		66,298
Kajaria Ceramics Ltd.		13,063		246,045
Kansai Nerolac Paints Ltd.		38,619		214,576
KPIT Technologies Ltd.		43,961		83,530
KRBL Ltd.		9,757		39,468
L&T Finance Holdings Ltd.		23,032		33,343
Manappuram Finance Ltd.		118,630		151,100
Marksans Pharma Ltd.		82,034		49,977
Max Financial Services Ltd.		24,104		208,683
Max India Ltd.^a		36,151		83,454
MindTree Ltd.		20,890		175,477
Mphasis Ltd.		18,584		157,452
MRF Ltd.		318		177,741
Muthoot Finance Ltd.		9,461		53,083


66		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Natco Pharma Ltd.		13,616	$	140,064
NCC Ltd./India		85,163		107,964
Page Industries Ltd.		1,261		279,699
PC Jeweller Ltd.		16,338		107,513
Persistent Systems Ltd.		11,713		108,866
PI Industries Ltd.		14,498		174,693
PTC India Ltd.		126,115		158,562
Rajesh Exports Ltd.		19,103		125,352
Redington India Ltd.		74,308		118,058
Reliance Capital Ltd.		25,815		204,993
Reliance Communications Ltd.^a		198,356		159,792
Reliance Infrastructure Ltd.		20,767		185,018
Rural Electrification Corp. Ltd.		29,532		105,106
Sadbhav Engineering Ltd.		24,865		110,587
Strides Shasun Ltd.		9,882		140,365
Sun Pharma Advanced Research Co. Ltd.^a		22,547		127,986
Sun TV Network Ltd.		22,029		155,390
Sundaram Finance Ltd.		8,775		190,614
Supreme Industries Ltd.		14,928		213,310
Suzlon Energy Ltd.^a		498,102		117,515
Symphony Ltd.		1,292		44,541
Syndicate Bank^a		57,806		66,550
Tata Global Beverages Ltd.		107,179		224,456
Thermax Ltd.		10,390		129,832
Torrent Power Ltd.		19,048		53,600
Tube Investments of India Ltd.		22,649		189,153
TVS Motor Co. Ltd.		29,094		141,647
Vakrangee Ltd.		27,383		80,019
Voltas Ltd.		28,483		165,998
WABCO India Ltd.		1,604		149,387
Welspun India Ltd.		69,705		50,689
Wockhardt Ltd.^a		6,702		81,826

				14,433,482
INDONESIA — 2.44%
Ace Hardware Indonesia Tbk PT		1,833,100		138,191
Agung Podomoro Land Tbk PT^a		2,829,200		61,852
Alam Sutera Realty Tbk PT^a		2,791,900		103,552
Aneka Tambang Persero Tbk PT^a		1,659,200		90,058
Arwana Citramulia Tbk PT		1,464,800		61,286
Bank Bukopin Tbk		2,072,600		111,716
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT		1,029,100		124,904
Bank Tabungan Negara Persero Tbk PT		1,102,623		167,077


Security	Shares		Value
Ciputra Development Tbk PT		2,227,463	$	259,437
Hanson International Tbk PT^a		16,423,500		194,383
Japfa Comfeed Indonesia Tbk PT		1,080,200		138,028
Kawasan Industri Jababeka Tbk PT		6,082,194		145,807
Link Net Tbk PT		303,900		101,720
Mitra Adiperkasa Tbk PT^a		234,000		81,146
Multipolar Tbk PT^a		2,066,013		66,349
Pakuwon Jati Tbk PT		5,382,700		241,440
Pembangunan Perumahan Persero Tbk PT		751,400		246,407
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		727,300		87,726
Ramayana Lestari Sentosa Tbk PT		1,250,500		116,896
Sugih Energy Tbk PT^a		5,450,300		46,840
Surya Semesta Internusa Tbk PT		1,343,750		62,300
Tambang Batubara Bukit Asam Persero Tbk PT		83,100		62,176
Tiga Pilar Sejahtera Food Tbk^a		214,400		34,750
Timah Persero Tbk PT		1,075,296		64,850
Wijaya Karya Persero Tbk PT		578,900		141,397

				2,950,288
MALAYSIA — 3.35%
Bumi Armada Bhd^a		536,400		98,537
Bursa Malaysia Bhd		112,500		241,339
Cahya Mata Sarawak Bhd^b		164,300		154,354
Carlsberg Brewery Malaysia Bhd		48,900		177,248
DRB-Hicom Bhd^b		249,600		80,625
Eastern & Oriental Bhd^a		320,281		131,887
IGB REIT		615,000		257,798
Karex Bhd		73,800		44,038
KNM Group Bhd^a,b		670,800		68,643
Kossan Rubber Industries		80,600		130,574
KPJ Healthcare Bhd		218,850		231,505
Magnum Bhd		284,400		163,396
Mah Sing Group Bhd		358,657		140,615
Malaysia Building Society Bhd		284,300		60,288
Malaysian Pacific Industries Bhd		48,600		92,514
Malaysian Resources Corp. Bhd		255,800		78,844
Media Prima Bhd		318,900		110,874
My EG Services Bhd		371,400		200,559
OSK Holdings Bhd		314,987		121,164
POS Malaysia Bhd		120,700		98,215
Press Metal Bhd		47,400		48,855
QL Resources Bhd		199,800		218,250


CONSOLIDATED SCHEDULES OF INVESTMENTS			67

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Sunway Bhd^b		198,600	$	149,360
Sunway Construction Group Bhd		296,620		119,950
Sunway REIT^b		449,400		190,598
Supermax Corp. Bhd		128,400		64,271
TIME dotCom Bhd		91,400		181,876
Top Glove Corp. Bhd		162,300		170,084
Unisem M Bhd		65,600		42,865
VS Industry Bhd		231,300		82,129
WCT Holdings Bhd		270,947		105,559

				4,056,814
MEXICO — 3.07%
Alsea SAB de CV		103,159		369,910
Axtel SAB de CV CPO^a,b		182,700		48,994
Banregio Grupo Financiero SAB de CV^b		48,200		273,816
Bolsa Mexicana de Valores SAB de CV		88,600		162,139
Concentradora Fibra Hotelera Mexicana SA de CV^b		137,500		102,312
Consorcio ARA SAB de CV		275,000		100,126
Controladora Vuela Cia. de Aviacion SAB de CV Class A^a		142,100		251,836
Corp Inmobiliaria Vesta SAB de CV^b		116,300		166,048
Genomma Lab Internacional SAB de CV Series B^a,b		149,600		167,290
Grupo Aeromexico SAB de CV^a,b		85,400		171,038
Grupo Aeroportuario del Centro Norte SAB de CV		39,400		241,239
Grupo Financiero Interacciones SA de CV Series O		17,300		88,807
Grupo Herdez SAB de CV^b		61,400		131,627
Industrias Bachoco SAB de CV Series B		36,900		162,883
Industrias CH SAB de CV Series B^a,b		32,900		148,975
La Comer SAB de CV^a,b		88,300		80,116
Macquarie Mexico Real Estate Management SA de CV		148,700		192,606
Minera Frisco SAB de CV Series A1^a		119,200		91,917
PLA Administradora Industrial S. de RL de CV^b		119,200		199,312
Prologis Property Mexico SA de CV		83,100		138,641


Security	Shares		Value
Qualitas Controladora SAB de CV		30,100	$	44,762
Telesites SAB de CV^a		296,800		173,971
TV Azteca SAB de CV CPO^b		452,100		82,663
Unifin Financiera SAB de CV SOFOM ENR^b		43,800		127,787
Urbi Desarrollos Urbanos SAB de CV^a,b		124,600		—

				3,718,815
PHILIPPINES — 1.17%
Belle Corp.		1,389,933		91,877
Bloomberry Resorts Corp.^a		507,500		60,776
Cebu Air Inc.		69,260		176,142
Cosco Capital Inc.		621,300		115,606
DoubleDragon Properties Corp.		159,750		205,537
Filinvest Land Inc.		4,431,000		182,584
First Gen Corp.		299,200		163,422
First Philippine Holdings Corp.		68,110		106,707
Manila Water Co. Inc.		287,200		172,585
Vista Land & Lifescapes Inc.		1,147,700		146,557

				1,421,793
POLAND — 0.95%
Asseco Poland SA		13,906		202,687
Budimex SA		2,763		139,162
CD Projekt SA^a		14,288		155,251
Ciech SA		2,921		50,402
Globe Trade Centre SA^a		54,783		100,844
Jastrzebska Spolka Weglowa SA^a		6,472		64,135
KRUK SA		3,603		207,262
Netia SA		45,642		54,728
PKP Cargo SA^a		7,755		88,230
Warsaw Stock Exchange		9,350		84,025

				1,146,726
QATAR — 0.55%
Gulf International Services QSC		8,804		86,315
Qatar National Cement Co. QSC		6,638		160,055
Qatari Investors Group QSC		7,420		108,813
Salam International Investment Ltd. QSC		43,008		141,142
United Development Co. QSC		29,404		164,973

				661,298
RUSSIA — 0.74%
Acron JSC		2,291		128,500
Aeroflot PJSC^a		109,556		165,803
DIXY Group OJSC^a		19,370		106,718


68		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Inter RAO UES PJSC		5,287,000	$	227,970
LSR Group PJSC GDR^d		49,252		144,801
M Video OJSC		22,680		120,164

				893,956
SOUTH AFRICA — 4.74%
Adcock Ingram Holdings Ltd.		16,959		53,537
Advtech Ltd.		41,174		45,695
Aeci Ltd.		25,959		181,732
African Rainbow Minerals Ltd.		22,358		132,682
Alexander Forbes Group Holdings Ltd.		222,961		102,736
Ascendis Health Ltd.		20,821		35,305
Assore Ltd.		6,474		73,086
Astral Foods Ltd.		9,028		80,008
Attacq Ltd.^a		101,180		123,775
AVI Ltd.		60,411		365,402
Barloworld Ltd.		35,925		203,135
Blue Label Telecoms Ltd.		82,170		106,383
Cashbuild Ltd.		4,739		125,688
City Lodge Hotels Ltd.		11,289		124,290
Clicks Group Ltd.		43,599		358,827
Clover Industries Ltd.		91,566		118,548
Curro Holdings Ltd.^a		11,201		31,751
DataTec Ltd.		39,180		133,137
Emira Property Fund Ltd.		128,078		123,167
EOH Holdings Ltd.		19,651		191,981
Famous Brands Ltd.		13,432		138,755
Grindrod Ltd.		100,102		77,896
Harmony Gold Mining Co. Ltd.^a		76,117		271,275
Hosken Consolidated Investments Ltd.		13,526		121,663
JSE Ltd.		17,243		182,811
KAP Industrial Holdings Ltd.		319,644		162,927
Lewis Group Ltd.^b		21,073		59,435
Mpact Ltd.		45,137		99,666
Murray & Roberts Holdings Ltd.		110,073		95,529
Nampak Ltd.		116,815		150,443
Northam Platinum Ltd.^a		62,176		204,941
Omnia Holdings Ltd.		11,956		140,336
PPC Ltd.		174,569		70,472
Raubex Group Ltd.		17,381		26,401
Reunert Ltd.		30,149		124,660
SA Corporate Real Estate Fund Nominees Pty Ltd.		437,786		155,309
Sun International Ltd./South Africa		21,835		139,506


Security	Shares		Value
Super Group Ltd./South Africa^a		70,658	$	194,531
Tongaat Hulett Ltd.		20,120		168,900
Trencor Ltd.		33,394		79,819
Vukile Property Fund Ltd.		117,618		136,290
Wilson Bayly Holmes-Ovcon Ltd.		11,974		121,049
Zeder Investments Ltd.		248,256		115,235

				5,748,714
SOUTH KOREA — 18.75%
Able C&C Co. Ltd.		3,390		73,121
Advanced Process Systems Corp.^a,b		5,149		89,819
AeroSpace Technology of Korea Inc.^a,b		3,899		66,615
Agabang & Co.^a,b		8,355		57,024
Ahnlab Inc.^b		1,545		85,495
ALUKO Co. Ltd.		10,278		46,044
Amicogen Inc.^b		1,557		83,087
Asiana Airlines Inc.^a		24,956		120,192
ATGen Co. Ltd.^a,b		1,965		81,420
Binex Co. Ltd.^a,b		5,949		112,044
Binggrae Co. Ltd.		1,912		94,657
Bukwang Pharmaceutical Co. Ltd.		4,269		106,438
Caregen Co. Ltd.		859		92,217
Cell Biotech Co. Ltd.		1,632		75,672
Celltrion Pharm Inc.^a		1,931		40,698
Chabiotech Co. Ltd.^a		9,638		136,574
Chong Kun Dang Pharmaceutical Corp.		1,143		102,306
CJ CGV Co. Ltd.		2,734		202,291
CJ Freshway Corp.		1,925		66,210
CJ O Shopping Co. Ltd.		734		104,274
CMG Pharmaceutical Co. Ltd.^a		14,029		49,007
Com2uSCorp.^a,b		1,793		165,953
Cosmax Inc.		1,398		183,683
COSON Co. Ltd.^a,b		4,829		68,429
Crown Confectionery Co. Ltd.		1,676		43,892
CrucialTec Co. Ltd.^a,b		6,806		60,125
CrystalGenomics Inc.^a		2,436		56,367
Dae Hwa Pharmaceutical Co. Ltd.		2,469		88,685
Daesang Corp.		4,327		124,377
Daewoo Shipbuilding & Marine Engineering Co. Ltd.^a		21,862		87,840
Daewoong Pharmaceutical Co. Ltd.		996		67,710
Daishin Securities Co. Ltd.		10,828		99,540


CONSOLIDATED SCHEDULES OF INVESTMENTS			69

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Daou Technology Inc.		5,869	$	110,800
Dawonsys Co. Ltd.^b		3,209		75,116
DIO Corp.^a		2,670		117,935
Dong-A Socio Holdings Co. Ltd.		798		133,119
Dong-A ST Co. Ltd.		947		88,330
Dongbu HiTek Co. Ltd.^a		7,112		108,753
Dongkuk Steel Mill Co. Ltd.^a		6,054		46,043
Dongwon Development Co. Ltd.		28,629		121,449
Dongwon F&B Co. Ltd.		283		49,620
Doosan Engine Co. Ltd.^a		18,715		74,944
Doosan Infracore Co. Ltd.^a,b		26,140		191,537
DoubleUGames Co. Ltd.^a		1,412		47,805
DuzonBIzon Co. Ltd.		5,115		93,584
Easy Bio Inc.		6,413		36,522
Emerson Pacific Inc.^a,b		1,603		53,266
EO Technics Co. Ltd.^b		1,732		135,609
Fila Korea Ltd.		2,362		212,898
Finetex EnE Inc.^a,b		10,075		54,125
Foosung Co. Ltd.^a		6,031		37,917
G-SMATT GLOBAL Co. Ltd.^a,b		3,110		78,099
G-treeBNT Co. Ltd.^a,b		4,251		70,532
Gamevil Inc.^a		1,086		62,725
GemVax & Kael Co. Ltd.^a,b		5,209		79,186
Genexine Co. Ltd.^a,b		2,129		88,311
Grand Korea Leisure Co. Ltd.		7,796		182,489
Green Cross Cell Corp.^a		1,642		44,548
Green Cross Corp./South Korea		1,208		189,596
Green Cross Holdings Corp.		4,865		131,769
GS Home Shopping Inc.		782		110,251
Halla Holdings Corp.		1,737		118,396
Hana Tour Service Inc.^b		1,861		120,172
Hanall Biopharma Co. Ltd.^a,b		5,838		104,979
Handsome Co. Ltd.		3,950		135,150
Hanjin Heavy Industries & Construction Co. Ltd.^a		16,223		62,128
Hanjin Kal Corp.^b		7,651		130,376
Hanjin Shipping Co. Ltd.^a,b		30,712		34,155
Hanjin Transportation Co. Ltd.		2,177		72,729
Hankook Tire Worldwide Co. Ltd.		5,249		100,743
Hansae Co. Ltd.		3,953		85,796
Hansol Chemical Co. Ltd.		2,130		170,591
Hansol Holdings Co. Ltd.^a		19,242		115,452
Hansol Technics Co. Ltd.^a,b		3,811		58,105
Hanwha Investment & Securities Co. Ltd.^a,b		29,837		63,287


Security	Shares		Value
Hanwha Techwin Co. Ltd.		6,944	$	383,633
Hite Jinro Co. Ltd.		6,012		118,083
HLB Inc.^a,b		5,859		94,847
HS Industries Co. Ltd.		4,767		41,385
Huchems Fine Chemical Corp.		6,799		119,821
Hugel Inc.^a		566		212,339
Humedix Co. Ltd.^b		2,101		71,604
Huons Co. Ltd.^a		1,093		59,796
Huons Global Co. Ltd.^b		2,383		99,808
Hwa Shin Co. Ltd.		14,334		110,944
Hyundai C&F Inc.		3,044		51,598
Hyundai Corp.^b		2,549		46,522
Hyundai Elevator Co. Ltd.^a		2,825		177,354
Hyundai Greenfood Co. Ltd.		9,432		140,846
Hyundai Home Shopping Network Corp.		1,505		166,022
Hyundai Livart Furniture Co. Ltd.^b		3,202		67,055
Hyundai Mipo Dockyard Co. Ltd.^a		2,395		163,676
Hyundai Rotem Co. Ltd.^a		2,075		44,571
Hyundai Securities Co. Ltd.		27,317		179,092
Iljin Holdings Co. Ltd.		5,009		31,402
Iljin Materials Co. Ltd.^a		1,904		30,737
Ilyang Pharmaceutical Co. Ltd.^a		2,785		116,271
InBody Co. Ltd.		2,820		85,991
Innocean Worldwide Inc.		2,048		127,656
Interojo Co. Ltd.		1,082		38,379
Interpark Holdings Corp.^b		14,088		65,576
iNtRON Biotechnology Inc.^a,b		2,340		96,013
IS Dongseo Co. Ltd.		2,562		112,820
ISC Co. Ltd.		1,232		24,971
Jeil Pharmaceutical Co.		1,544		131,967
Jenax Inc.^a,b		3,367		67,038
Jusung Engineering Co. Ltd.^a		4,262		37,154
JW Holdings Corp.		6,568		76,578
JW Pharmaceutical Corp.		2,318		149,890
JW Shinyak Corp.		6,505		65,342
KB Insurance Co. Ltd.		9,606		232,181
KC Tech Co. Ltd.		5,798		83,200
KEPCO Engineering & Construction Co. Inc.		3,263		94,964
KH Vatec Co. Ltd.^b		5,486		69,375
KIWOOM Securities Co. Ltd.		2,492		163,824
Koh Young Technology Inc.^b		3,457		135,180
Kolmar BNH Co. Ltd.		1,805		48,160
Kolon Corp.		1,473		73,188


70		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Kolon Industries Inc.		3,334	$	245,191
Kolon Life Science Inc.		933		120,077
Komipharm International Co. Ltd.^a,b		6,515		198,664
KONA I Co. Ltd.^b		4,358		57,651
Korea Electric Terminal Co. Ltd.		1,378		94,668
Korea Kolmar Co. Ltd.		2,922		236,119
Korea Kolmar Holdings Co. Ltd.^b		2,299		81,238
Korea PetroChemical Ind. Co. Ltd.		656		115,021
Korea REIT Co. Ltd.		44,390		116,051
Korean Reinsurance Co.		23,300		249,717
KT Skylife Co. Ltd.		7,336		105,928
Kumho Tire Co. Inc.^a,b		24,483		218,261
Kyung Dong Navien Co. Ltd.		492		24,357
Leaders Cosmetics Co. Ltd.^a,b		2,578		54,450
LEENO Industrial Inc.		1,560		57,713
LF Corp.		6,489		126,870
LG Hausys Ltd.		1,315		128,552
LG International Corp.		5,929		176,806
LG Life Sciences Ltd.^a		2,543		147,106
Lock&Lock Co. Ltd.^b		6,942		77,203
Loen Entertainment Inc.^a		1,571		105,109
LOTTE Fine Chemical Co. Ltd.		4,722		149,071
Lotte Food Co. Ltd.		174		105,180
LOTTE Himart Co. Ltd.		2,503		98,773
LS Corp.		3,566		201,167
LS Industrial Systems Co. Ltd.		3,554		136,104
Lumens Co. Ltd.^a		34,707		134,781
Lutronic Corp.^b		2,127		73,157
Macrogen Inc.^a		3,325		101,241
Mando Corp.		1,290		302,543
Medipost Co. Ltd.^a,b		1,540		102,068
Medy-Tox Inc.		793		314,711
Meritz Financial Group Inc.		13,743		144,825
Meritz Fire & Marine Insurance Co. Ltd.		16,870		235,272
Meritz Securities Co. Ltd.		56,407		170,992
Muhak Co. Ltd.		3,632		75,409
Namhae Chemical Corp.		10,402		78,645
Namyang Dairy Products Co. Ltd.		175		110,493
Naturalendo Tech Co. Ltd.^a		2,037		31,331
Nexen Tire Corp.		8,817		110,311
NHN Entertainment Corp.^a		2,423		127,343
NHN KCP Corp.		3,337		56,564
NICE Holdings Co. Ltd.		5,001		86,340
NICE Information Service Co. Ltd.		10,589		73,031


Security	Shares		Value
NongShim Co. Ltd.		681	$	183,229
NS Shopping Co. Ltd.^a		301		41,978
NUTRIBIOTECH Co. Ltd.^a,b		1,501		79,290
Osstem Implant Co. Ltd.^a		2,946		150,338
Partron Co. Ltd.		9,893		94,050
Peptron Inc.^a		908		36,646
Poongsan Corp.		5,051		142,017
POSCO Chemtech Co. Ltd.		10,206		99,772
POSCO ICT Co. Ltd.^a,b		21,465		115,699
S&T Dynamics Co. Ltd.		6,687		54,635
S&T Motiv Co. Ltd.		3,167		147,983
Samlip General Foods Co. Ltd.^b		476		78,764
Samsung Engineering Co. Ltd.^a,b		27,192		274,359
Samsung Pharmaceutical Co. Ltd.^a,b		7,350		36,915
Samyang Corp.		535		48,702
Samyang Holdings Corp.		673		72,430
Schnell Biopharmaceuticals Inc.^a,b		14,862		62,647
Seah Besteel Corp.		3,550		76,731
Seegene Inc.^a,b		4,431		136,705
Sejong Telecom Inc.^a		27,538		22,845
Seoul Auction Co. Ltd.^b		4,010		50,350
Seoul Semiconductor Co. Ltd.		8,496		113,534
SFA Engineering Corp.		2,651		126,725
SK Chemicals Co. Ltd.		3,374		199,717
SK Materials Co. Ltd.		1,183		154,798
SK Securities Co. Ltd.^a,b		83,025		84,887
SKC Co. Ltd.		4,930		121,371
SM Entertainment Co.^a,b		5,097		124,796
Soulbrain Co. Ltd.		2,378		132,016
Ssangyong Cement Industrial Co. Ltd.^a		6,881		108,615
Sung Kwang Bend Co. Ltd.^b		9,539		78,109
Sungwoo Hitech Co. Ltd.		11,001		76,662
Taekwang Industrial Co. Ltd.		111		82,827
Taewoong Co. Ltd.^a,b		7,286		178,393
TK Corp.		12,043		88,567
Tongyang Inc.		51,173		139,062
Tongyang Life Insurance Co. Ltd.		11,776		127,265
Toptec Co. Ltd.^b		5,632		92,183
Vieworks Co. Ltd.		2,440		131,300
ViroMed Co. Ltd.^a,b		2,192		232,372
Webzen Inc.^a,b		4,202		63,878
WeMade Entertainment Co. Ltd.^a,b		3,461		62,236
Wonik Holdings Co. Ltd.^a		4,595		27,570


CONSOLIDATED SCHEDULES OF INVESTMENTS			71

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
WONIK IPS Co. Ltd.^a		8,918	$	186,358
Woongjin Thinkbig Co. Ltd.^a		9,742		93,051
YESCO Co. Ltd.		3,727		131,866
Youngone Corp.		4,584		137,520
Yuanta Securities Korea Co. Ltd.^a		25,048		74,807
Yungjin Pharmaceutical Co. Ltd.^a,b		15,560		150,018

				22,720,288
TAIWAN — 16.80%
A-DATA Technology Co. Ltd.		26,000		34,784
Accton Technology Corp.		106,000		166,698
Advanced Wireless Semiconductor Co.		46,000		75,820
Airtac International Group		22,850		170,670
Altek Corp.		90,793		65,383
Ambassador Hotel (The)		184,000		148,160
AmTRAN Technology Co. Ltd.		196,312		146,628
Asia Optical Co. Inc.^a		102,000		103,188
Asia Polymer Corp.		185,252		103,922
ASPEED Technology Inc.		6,000		72,328
Basso Industry Corp.		11,000		39,000
BES Engineering Corp.		558,000		95,138
Bizlink Holding Inc.		20,982		122,994
Career Technology MFG. Co. Ltd.		138,000		83,503
Cathay Real Estate Development Co. Ltd.^a		227,000		99,083
Chaun-Choung Technology Corp.		7,000		40,812
Cheng Loong Corp.		451,000		162,744
Cheng Uei Precision Industry Co. Ltd.		70,000		84,934
Chin-Poon Industrial Co. Ltd.		67,000		159,632
China Bills Finance Corp.		257,000		102,053
China Man-Made Fiber Corp.^a		354,000		84,678
China Petrochemical Development Corp.^a		388,000		90,365
China Steel Chemical Corp.		22,000		70,721
China Synthetic Rubber Corp.		114,460		90,903
Chipbond Technology Corp.		112,000		145,072
Chlitina Holding Ltd.		6,000		30,633
Chong Hong Construction Co. Ltd.		42,424		69,926
Chroma ATE Inc.		65,000		167,977
Compeq Manufacturing Co. Ltd.		244,000		122,267
Coretronic Corp.		90,400		101,852
CSBC Corp. Taiwan		203,420		96,163
CTCI Corp.		124,000		175,856
Cyberlink Corp.		59,125		129,130


Security	Shares		Value
D-Link Corp.		407,246	$	146,955
Dynapack International Technology Corp.		85,000		112,644
E Ink Holdings Inc.		87,000		65,667
Egis Technology Inc.^a		9,000		66,797
Elan Microelectronics Corp.		99,000		128,077
Elite Advanced Laser Corp.		25,200		94,906
Elite Material Co. Ltd.		57,000		155,566
Ennoconn Corp.		9,000		149,761
Epistar Corp.^a		193,000		139,897
Eternal Materials Co. Ltd.		190,555		206,586
Everlight Electronics Co. Ltd.		74,000		118,240
Far Eastern Department Stores Ltd.		180,000		94,735
Far Eastern International Bank		461,901		138,583
Faraday Technology Corp.		72,000		71,704
Feng Hsin Steel Co. Ltd.		114,000		145,866
Firich Enterprises Co. Ltd.		44,493		106,709
FLEXium Interconnect Inc.		55,667		154,911
Formosan Rubber Group Inc.		227,000		109,098
General Interface Solution Holding Ltd.		21,000		53,475
Gigabyte Technology Co. Ltd.		117,000		161,135
Gigastorage Corp.^a		111,400		76,887
Ginko International Co. Ltd.		9,000		88,212
Gintech Energy Corp.^a		93,584		64,296
Global Unichip Corp.		46,000		107,423
Gloria Material Technology Corp.		234,850		128,044
Goldsun Building Materials Co. Ltd.		390,000		96,116
Gourmet Master Co. Ltd.		14,700		140,373
Grand Pacific Petrochemical		212,000		107,234
Grape King Bio Ltd.		20,000		150,013
Great Wall Enterprise Co. Ltd.		162,128		137,702
Greatek Electronics Inc.		98,000		119,371
Green Energy Technology Inc.^a		80,125		47,978
HannStar Display Corp.^a		501,320		87,528
Ho Tung Chemical Corp.^a		532,548		124,198
Holy Stone Enterprise Co. Ltd.		118,500		118,760
Hota Industrial Manufacturing Co. Ltd.		40,000		207,371
Huaku Development Co. Ltd.		59,080		99,799
Huang Hsiang Construction Corp.		50,000		62,873
Hung Sheng Construction Ltd.		200,000		104,001
International Games System Co. Ltd.		11,000		68,814


72		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Iron Force Industrial Co. Ltd.		4,000	$	28,427
ITEQ Corp.		118,600		132,129
Jih Sun Financial Holdings Co. Ltd.		326,643		72,369
KEE TAI Properties Co. Ltd.		69,000		26,747
Kenda Rubber Industrial Co. Ltd.		111,341		176,150
Kerry TJ Logistics Co. Ltd.		80,000		105,261
Kindom Construction Corp.		142,000		70,037
King Slide Works Co. Ltd.		11,000		134,334
King Yuan Electronics Co. Ltd.		235,000		215,888
King’s Town Bank Co. Ltd.		203,000		172,736
Kinpo Electronics		325,000		122,398
Kinsus Interconnect Technology Corp.		28,000		59,035
Land Mark Optoelectronics Corp.		10,400		113,077
LCY Chemical Corp.		93,000		117,091
Lealea Enterprise Co. Ltd.		423,590		114,673
Li Cheng Enterprise Co. Ltd.		6,000		28,175
Lien Hwa Industrial Corp.		190,814		126,285
Makalot Industrial Co. Ltd.		35,559		168,098
Masterlink Securities Corp.		370,121		95,882
Medigen Biotechnology Corp.^a		10,397		24,018
Mercuries & Associates Holding Ltd.		182,225		110,551
Merry Electronics Co. Ltd.		37,000		138,762
Micro-Star International Co. Ltd.		140,000		337,530
Microbio Co. Ltd.^a		165,727		124,829
MIN AIK Technology Co. Ltd.		59,000		71,215
Mitac Holdings Corp.		110,000		112,321
Motech Industries Inc.^a		91,000		88,762
Nan Kang Rubber Tire Co. Ltd.		120,000		110,808
Neo Solar Power Corp.^a		158,364		82,600
Pan-International Industrial Corp.		203,722		157,620
Parade Technologies Ltd.		14,000		136,336
PChome Online Inc.		18,360		200,204
PharmaEngine Inc.		16,798		113,820
Pixart Imaging Inc.		36,635		82,782
Poya International Co. Ltd.		11,251		168,248
President Securities Corp.		227,390		84,204
Primax Electronics Ltd.		85,000		120,948
Prince Housing & Development Corp.		317,917		105,203
Qisda Corp.		287,000		116,680
Radiant Opto-Electronics Corp.		84,000		137,924
Radium Life Tech Co. Ltd.^a		405,707		128,500
Ritek Corp.^a		904,000		111,681


Security	Shares		Value
Sanyang Motor Co. Ltd.		122,820	$	84,382
ScinoPharm Taiwan Ltd.		44,720		57,220
Senao International Co. Ltd.		59,000		97,247
Sercomm Corp.		36,000		80,326
Shin Zu Shing Co. Ltd.		33,000		108,161
Shining Building Business Co. Ltd.^a		241,008		81,651
Shinkong Synthetic Fibers Corp.		385,135		101,228
Silergy Corp.		12,000		181,907
Sino-American Silicon Products Inc.		119,000		127,511
Sinyi Realty Inc.		117,105		104,444
Sitronix Technology Corp.		11,000		36,747
Soft-World International Corp.		29,140		61,163
Solar Applied Materials Technology Co.^a		130,799		36,069
St. Shine Optical Co. Ltd.		9,000		221,805
Sunny Friend Environmental Technology Co. Ltd.		23,000		93,869
Swancor Holding Co. Ltd.		18,000		84,808
TA Chen Stainless Pipe		252,325		129,620
Taichung Commercial Bank Co. Ltd.		453,388		125,884
Taiflex Scientific Co. Ltd.		76,500		79,561
Tainan Spinning Co. Ltd.		265,190		104,888
Taiwan Hon Chuan Enterprise Co. Ltd.		100,004		147,813
Taiwan Paiho Ltd.		44,050		126,748
Taiwan Secom Co. Ltd.		84,450		240,065
Taiwan Shin Kong Security Co. Ltd.		194,640		244,753
Taiwan Surface Mounting Technology Corp.		151,633		129,744
Taiwan TEA Corp.		262,000		124,681
Tatung Co. Ltd.^a		522,000		90,645
Ton Yi Industrial Corp.		310,000		137,754
Tong Hsing Electronic Industries Ltd.		34,000		135,548
Tong Yang Industry Co. Ltd.		77,133		155,333
Toung Loong Textile Manufacturing		16,000		52,442
TPK Holding Co. Ltd.		57,000		105,088
Tripod Technology Corp.		90,000		192,307
TrueLight Corp.		33,000		67,601
TSRC Corp.		121,000		111,160
TTY Biopharm Co. Ltd.		40,450		147,239


CONSOLIDATED SCHEDULES OF INVESTMENTS			73

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Tung Ho Steel Enterprise Corp.		193,000	$	112,526
Tung Thih Electronic Co. Ltd.		13,000		198,295
TWi Pharmaceuticals Inc.^a		17,000		59,737
TXC Corp.		87,000		113,923
Unimicron Technology Corp.		221,000		90,544
Union Bank of Taiwan		415,218		115,940
UPC Technology Corp.		361,661		110,446
USI Corp.		173,950		75,379
Visual Photonics Epitaxy Co. Ltd.		69,900		94,065
Voltronic Power Technology Corp.		11,077		171,406
Wah Lee Industrial Corp.		79,000		116,768
Walsin Lihwa Corp.^a		571,000		183,552
Walsin Technology Corp.		104,000		109,964
Waterland Financial Holdings Co. Ltd.		493,469		124,104
Win Semiconductors Corp.		110,431		221,694
Winbond Electronics Corp.		548,000		178,749
Wistron NeWeb Corp.		58,009		174,591
WT Microelectronics Co. Ltd.		95,168		130,468
Yageo Corp.		65,210		138,310
Yeong Guan Energy Technology Group Co. Ltd.		19,601		106,250
YFY Inc.		447,000		127,209
Yieh Phui Enterprise Co. Ltd.^a		343,625		107,428
YungShin Global Holding Corp.		80,200		119,932
Yungtay Engineering Co. Ltd.		84,000		122,834
Zinwell Corp.		76,000		86,466

				20,353,652
THAILAND — 3.87%
Amata Corp. PCL NVDR		315,600		114,878
Bangchak Petroleum PCL (The) NVDR		98,300		95,842
Bangkok Airways Co. Ltd.^b		163,400		118,011
Bangkok Chain Hospital PCL NVDR		355,300		121,117
Bangkok Land PCL NVDR^b		3,042,200		159,952
Beauty Community PCL		162,800		43,739
Carabao Group PCL		22,400		45,945
CH Karnchang PCL NVDR		141,500		128,765
Chularat Hospital PCL NVDR		1,469,000		110,338
Esso Thailand PCL NVDR^a		591,500		102,526
Group Lease PCL		81,900		97,006
Gunkul Engineering PCL NVDR		329,800		51,449
Hana Microelectronics PCL NVDR		129,000		113,663
Inter Far East Energy Corp.		320,900		58,867


Security	Shares		Value
Italian-Thai Development PCL NVDR^a,b		478,700	$	87,815
Jasmine International PCL NVDR		638,700		103,327
KCE Electronics PCL NVDR^b		68,100		192,306
Khon Kaen Sugar Industry PCL NVDR		821,930		91,179
Kiatnakin Bank PCL NVDR		110,232		164,796
Krungthai Card PCL NVDR		6,600		26,503
LPN Development PCL NVDR^b		239,300		86,414
Major Cineplex Group PCL NVDR		69,700		65,440
PTG Energy PCL		42,100		36,791
Quality Houses PCL NVDR		1,456,867		114,477
Samart Corp. PCL NVDR^b		144,600		63,913
Siam Global House PCL NVDR^b		286,919		121,844
Sino-Thai Engineering & Construction PCL NVDR^b		193,328		139,625
Sri Trang Agro-Industry PCL NVDR		319,200		111,578
Srisawad Power 1979 PCL NVDR		182,035		207,721
Supalai PCL NVDR^b		252,800		176,004
Superblock PCL^a,b		2,303,300		119,771
Thai Airways International PCL NVDR^a,b		140,900		128,219
Thai Vegetable Oil PCL NVDR		149,800		144,973
Thaicom PCL NVDR		122,400		77,792
Thanachart Capital PCL NVDR		153,800		177,724
Tisco Financial Group PCL NVDR		94,140		146,858
TTW PCL NVDR		448,700		142,586
U City PCL NVDR^a		126,061,200		145,670
VGI Global Media PCL NVDR^b		781,900		144,564
Vibhavadi Medical Center PCL NVDR		1,532,600		128,397
WHA Corp. PCL NVDR^a,b		1,742,000		181,167

				4,689,552
TURKEY — 1.20%
Akcansa Cimento AS		26,213		118,526
Aksa Akrilik Kimya Sanayii AS		26,271		75,375
Bizim Toptan Satis Magazalari AS		20,299		91,648
Cimsa Cimento Sanayi VE Ticaret AS		26,337		134,751
Dogan Sirketler Grubu Holding AS^a,b		352,813		108,499
Dogus Otomotiv Servis ve Ticaret AS^b		20,559		70,658


74		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


Security	Shares		Value
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class D		199,949	$	94,599
Koza Altin Isletmeleri AS^a		12,802		59,833
NET Holding AS^a,b		94,244		100,005
Otokar Otomotiv Ve Savunma Sanayi AS		2,863		103,622
Sekerbank TAS^a,b		114,968		45,069
Tekfen Holding AS		43,934		108,978
Trakya Cam Sanayii AS^b		119,106		101,029
Turkiye Sinai Kalkinma Bankasi AS		241,798		111,130
Vestel Elektronik Sanayi ve Ticaret AS^a,b		24,315		59,738
Yazicilar Holding AS^b		14,890		66,522

				1,449,982
UNITED ARAB EMIRATES — 0.85%
Agthia Group PJSC		38,822		62,887
Air Arabia PJSC		383,643		141,003
Al Waha Capital PJSC		217,623		115,533
Amanat Holdings PJSC		139,568		32,298
Amlak Finance PJSC^a		155,817		57,268
Dana Gas PJSC^a		766,085		118,883
Deyaar Development PJSC^a		460,114		74,533
Dubai Parks & Resorts PJSC^a		641,898		286,601
Eshraq Properties Co. PJSC^a		309,623		68,279
Orascom Construction Ltd.^a		15,424		77,120

				1,034,405

TOTAL COMMON STOCKS
(Cost: $121,907,064)				119,710,916

PREFERRED STOCKS — 0.68%

BRAZIL — 0.63%
Alpargatas SA		29,000		93,265
Banco ABC Brasil SA		13,845		61,437
Banco do Estado do Rio Grande do Sul SA Class B		12,400		41,412
Bradespar SA		39,600		125,885
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA		18,000		68,464
Marcopolo SA		98,000		97,582
Metalurgica Gerdau SA		114,600		131,476
Randon SA Implemetos e Participacoes		60,925		84,969
Usinas Siderurgicas de Minas Gerais SA Class A		51,500		55,262

				759,752


Security	Shares		Value
COLOMBIA — 0.05%
Avianca Holdings SA		74,242	$	63,842

				63,842

TOTAL PREFERRED STOCKS
(Cost: $836,445)				823,594

RIGHTS — 0.03%

SOUTH AFRICA — 0.03%
PPC Ltd.^a		279,424		37,600

				37,600
SOUTH KOREA — 0.00%
Hanwha Investment & Securities Co. Ltd.^a,b		24,482		1,186

				1,186
THAILAND — 0.00%
Bangchak Petroleum PCL (The)^a		4,915		—

				—

TOTAL RIGHTS
(Cost: $71,531)				38,786

WARRANTS — 0.01%

THAILAND — 0.01%
Group Lease PCL (Expires 07/31/18)^a		8,100		3,557

				3,557

TOTAL WARRANTS
(Cost: $0)				3,557

SHORT-TERM INVESTMENTS — 12.39%

MONEY MARKET FUNDS — 12.39%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^e,f,g		14,859,449		14,859,449
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^e,f		149,857		149,857

				15,009,303

TOTAL SHORT-TERM INVESTMENTS
(Cost: $15,009,303)				15,009,303


CONSOLIDATED SCHEDULES OF INVESTMENTS			75

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 111.92% (Cost: $137,824,343)^h	$	135,586,156
Other Assets, Less Liabilities — (11.92)%		(14,435,630	)

NET ASSETS — 100.00%	$	121,150,526

ADR — American Depositary Receipts

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

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	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 money market fund.

^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.

^h	The cost of investments for federal income tax purposes was $139,817,544. Net unrealized depreciation was $4,231,388, of which $13,472,810 represented gross unrealized appreciation on securities and $17,704,198 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Common stocks	$	119,232,398	$	272,505		$	206,013	$	119,710,916
Preferred stocks		823,594		—			—		823,594
Rights		38,786		0	^a		—		38,786
Warrants		3,557		—			—		3,557
Money market funds		15,009,303		—			—		15,009,303

Total	$	135,107,638	$	272,505		$	206,013	$	135,586,156

Rounds to less than $1.

See notes to consolidated financial statements.


76		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2016


	iShares Core MSCI Emerging Markets ETF			iShares MSCI BRIC ETF			iShares MSCI Emerging Markets Asia ETF

ASSETS
Investments, at cost:
Unaffiliated	$	15,610,034,558		$	185,412,085		$	209,403,123
Affiliated (Note 2)		880,042,923			6,588,665			4,479,688

Total cost of investments	$	16,490,077,481		$	192,000,750		$	213,882,811

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	15,940,552,140		$	182,146,024		$	216,248,635
Affiliated (Note 2)		880,042,923			6,588,665			4,479,688

Total fair value of investments		16,820,595,063			188,734,689			220,728,323
Foreign currency, at value^b		11,047,150			314,576			371,126
Cash		42,977,076			1,294,183			1,353,239
Receivables:
Investment securities sold		76,061,155			2,172,779			1,908,263
Dividends and interest		21,421,541			101,660			247,505
Futures variation margin		4,979,040			—			—
Tax reclaims		58,081			—			—

Total Assets		16,977,139,106			192,617,887			224,608,456


LIABILITIES
Payables:
Investment securities purchased		96,902,109			2,245,720			1,992,389
Due to broker		2,454,234			—			—
Collateral for securities on loan (Note 1)		871,454,644			6,588,665			4,479,688
Line of credit (Note 8)		—			1,190,250			1,171,550
Foreign taxes (Note 1)		722,556			—			13,487
Investment advisory fees (Note 2)		2,117,432			105,354			88,300

Total Liabilities		973,650,975			10,129,989			7,745,414


NET ASSETS	$	16,003,488,131		$	182,487,898		$	216,863,042


Net assets consist of:
Paid-in capital	$	16,325,679,789		$	411,879,219		$	234,888,212
Undistributed net investment income		110,497,865			1,089,171			1,121,945
Accumulated net realized loss		(768,129,437	)		(227,216,955	)		(25,989,093	)
Net unrealized appreciation (depreciation)		335,439,914			(3,263,537	)		6,841,978

NET ASSETS	$	16,003,488,131		$	182,487,898		$	216,863,042


Shares outstanding^c		358,800,000			5,450,000			3,850,000


Net asset value per share	$	44.60		$	33.48		$	56.33

^a	Securities on loan with values of $822,641,172, $6,103,208 and $4,153,681, respectively. See Note 1.

^b	Cost of foreign currency: $11,069,857, $314,978 and $371,833, respectively.

^c	$0.001 par value, number of shares authorized: 850 million, 500 million and 500 million, respectively.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			77

Consolidated Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Emerging Markets Small-Cap ETF

ASSETS
Investments, at cost:
Unaffiliated	$	122,815,040
Affiliated (Note 2)		15,009,303

Total cost of investments	$	137,824,343

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	120,576,853
Affiliated (Note 2)		15,009,303

Total fair value of investments		135,586,156
Foreign currency, at value^b		200,512
Receivables:
Dividends and interest		296,198

Total Assets		136,082,866


LIABILITIES
Payables:
Collateral for securities on loan (Note 1)		14,859,446
Foreign taxes (Note 1)		4,160
Investment advisory fees (Note 2)		68,734

Total Liabilities		14,932,340


NET ASSETS	$	121,150,526


Net assets consist of:
Paid-in capital	$	135,837,139
Undistributed net investment income		278,839
Accumulated net realized loss		(12,726,353	)
Net unrealized depreciation		(2,239,099	)

NET ASSETS	$	121,150,526


Shares outstanding^c		2,800,000


Net asset value per share	$	43.27

^a	Securities on loan with a value of $13,366,009. See Note 1.

^b	Cost of foreign currency: $201,103.

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

See notes to consolidated financial statements.


78		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2016


	iShares Core MSCI Emerging Markets ETF			iShares MSCI BRIC ETF			iShares MSCI Emerging Markets Asia ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	298,754,840		$	4,885,629		$	3,037,054
Dividends — affiliated (Note 2)		79,557			389			1,117
Interest — unaffiliated		4,368			—			2
Securities lending income — affiliated — net (Note 2)^b		19,981,387			133,985			117,586

		318,820,152			5,020,003			3,155,759
Less: Other foreign taxes (Note 1)		(987,293	)		—			(18,812	)

Total investment income		317,832,859			5,020,003			3,136,947


EXPENSES
Investment advisory fees (Note 2)		16,700,926			1,248,307			830,106
Mauritius income taxes (Note 1)		472,490			24,604			6,562
Commitment fees (Note 8)		98,707			4,061			1,700
Interest expense (Note 8)		—			660			340

Total expenses		17,272,123			1,277,632			838,708
Less investment advisory fees waived (Note 2)		—			—			(215,086	)

Net expenses		17,272,123			1,277,632			623,622

Net investment income		300,560,736			3,742,371			2,513,325


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^c		(546,405,716	)		(20,083,062	)		(9,351,464	)
In-kind redemptions — unaffiliated		—			(2,559,728	)		9,985
Futures contracts		4,525,455			—			—
Foreign currency transactions		(1,340,178	)		(35,301	)		(37,617	)

Net realized loss		(543,220,439	)		(22,678,091	)		(9,379,096	)

Net change in unrealized appreciation/depreciation on:
Investments		1,637,362,518			36,152,954			24,285,718
Futures contracts		9,501,167			—			—
Translation of assets and liabilities in foreign currencies		93,764			28,198			2,851

Net change in unrealized appreciation/depreciation		1,646,957,449			36,181,152			24,288,569

Net realized and unrealized gain		1,103,737,010			13,503,061			14,909,473

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,404,297,746		$	17,245,432		$	17,422,798

^a	Net of foreign withholding tax of $33,636,778, $347,910 and $406,836, respectively.

^b	Net of securities lending income tax paid $784,865, $ — and $ —, respectively.

^c	Net of foreign capital gains taxes of $40,625, $ —, $ —, respectively.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			79

Consolidated Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Emerging Markets Small-Cap ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	2,124,894
Dividends — affiliated (Note 2)		519
Interest — unaffiliated		9
Securities lending income — affiliated — net (Note 2)		577,220

		2,702,642
Less: Other foreign taxes (Note 1)		(8,535	)

Total investment income		2,694,107


EXPENSES
Investment advisory fees (Note 2)		656,745
Commitment fees (Note 8)		1,166
Interest expense (Note 8)		207

Total expenses		658,118

Net investment income		2,035,989


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(6,128,817	)
Foreign currency transactions		(14,342	)

Net realized loss		(6,143,159	)

Net change in unrealized appreciation/depreciation on:
Investments		14,187,893
Translation of assets and liabilities in foreign currencies		4,109

Net change in unrealized appreciation/depreciation		14,192,002

Net realized and unrealized gain		8,048,843

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	10,084,832

^a	Net of foreign withholding tax of $223,951.

See notes to consolidated financial statements.


80		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares Core MSCI Emerging Markets ETF						iShares MSCI BRIC ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	300,560,736		$	165,940,771		$	3,742,371		$	6,187,330
Net realized loss		(543,220,439	)		(168,209,015	)		(22,678,091	)		(11,493,846	)
Net change in unrealized appreciation/depreciation		1,646,957,449			(1,745,449,404	)		36,181,152			(66,292,945	)

Net increase (decrease) in net assets resulting from operations		1,404,297,746			(1,747,717,648	)		17,245,432			(71,599,461	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(238,601,549	)		(149,835,315	)		(4,397,149	)		(7,526,071	)

Total distributions to shareholders		(238,601,549	)		(149,835,315	)		(4,397,149	)		(7,526,071	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		7,812,461,106			3,253,716,865			12,282			124,399
Cost of shares redeemed		—			—			(27,130,689	)		(135,405,344	)

Net increase (decrease) in net assets from capital share transactions		7,812,461,106			3,253,716,865			(27,118,407	)		(135,280,945	)

INCREASE (DECREASE) IN NET ASSETS		8,978,157,303			1,356,163,902			(14,270,124	)		(214,406,477	)

NET ASSETS
Beginning of year		7,025,330,828			5,669,166,926			196,758,022			411,164,499

End of year	$	16,003,488,131		$	7,025,330,828		$	182,487,898		$	196,758,022

Undistributed net investment income included in net assets at end of year	$	110,497,865		$	47,648,015		$	1,089,171		$	1,722,422


SHARES ISSUED AND REDEEMED
Shares sold		186,400,000			67,200,000			—			—
Shares redeemed		—			—			(950,000	)		(3,600,000	)

Net increase (decrease) in shares outstanding		186,400,000			67,200,000			(950,000	)		(3,600,000	)

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			81

Consolidated Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Emerging Markets Asia ETF						iShares MSCI Emerging Markets Small-Cap ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	2,513,325		$	2,741,982		$	2,035,989		$	1,385,999
Net realized gain (loss)		(9,379,096	)		(6,372,970	)		(6,143,159	)		2,007,950
Net change in unrealized appreciation/depreciation		24,288,569			(23,778,572	)		14,192,002			(18,774,533	)

Net increase (decrease) in net assets resulting from operations		17,422,798			(27,409,560	)		10,084,832			(15,380,584	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,586,361	)		(1,886,156	)		(2,370,926	)		(1,449,168	)

Total distributions to shareholders		(2,586,361	)		(1,886,156	)		(2,370,926	)		(1,449,168	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		92,508,092			87,597,450			37,316,559			49,283,928
Cost of shares redeemed		(15,118,523	)		(14,370,934	)		—			—

Net increase in net assets from capital share transactions		77,389,569			73,226,516			37,316,559			49,283,928

INCREASE IN NET ASSETS		92,226,006			43,930,800			45,030,465			32,454,176

NET ASSETS
Beginning of year		124,637,036			80,706,236			76,120,061			43,665,885

End of year	$	216,863,042		$	124,637,036		$	121,150,526		$	76,120,061

Undistributed net investment income included in net assets at end of year	$	1,121,945		$	1,232,476		$	278,839		$	233,983


SHARES ISSUED AND REDEEMED
Shares sold		1,700,000			1,450,000			900,000			1,050,000
Shares redeemed		(300,000	)		(300,000	)		—			—

Net increase in shares outstanding		1,400,000			1,150,000			900,000			1,050,000

See notes to consolidated financial statements.


82		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares Core MSCI Emerging Markets ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Period from Oct. 18, 2012^a to Aug. 31, 2013
Net asset value, beginning of period	$	40.75		$	53.89		$	45.71		$	49.06

Income from investment operations:
Net investment income^b		1.20			1.21			1.31			1.33
Net realized and unrealized gain (loss)^c		3.58			(13.26	)		7.78			(4.14	)

Total from investment operations		4.78			(12.05	)		9.09			(2.81	)

Less distributions from:
Net investment income		(0.93	)		(1.09	)		(0.91	)		(0.54	)

Total distributions		(0.93	)		(1.09	)		(0.91	)		(0.54	)

Net asset value, end of period	$	44.60		$	40.75		$	53.89		$	45.71


Total return		11.99	%		(22.61	)%		20.05	%		(5.75	)%^d


Net assets, end of period (000s)	$	16,003,488		$	7,025,331		$	5,669,167		$	1,864,965
Ratio of expenses to average net assets^e		0.17	%		0.18	%		0.17	%		0.05	%
Ratio of expenses to average net assets prior to waived fees^e		0.17	%		0.18	%		0.18	%		0.18	%
Ratio of net investment income to average net assets^e		2.93	%		2.49	%		2.61	%		3.17	%
Portfolio turnover rate^f		10	%		7	%		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 partial for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for years ended August 31, 2016, August 31, 2015, August 31, 2014 and the period ended August 31, 2013 were 10%, 7%, 8%, and 15%, 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 BRIC ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	30.74		$	41.12		$	34.41		$	35.68		$	42.25

Income from investment operations:
Net investment income^a		0.64			0.77			0.89			0.84			0.98
Net realized and unrealized gain (loss)^b		2.84			(10.20	)		6.53			(1.25	)		(6.62	)

Total from investment operations		3.48			(9.43	)		7.42			(0.41	)		(5.64	)

Less distributions from:
Net investment income		(0.74	)		(0.95	)		(0.71	)		(0.86	)		(0.93	)

Total distributions		(0.74	)		(0.95	)		(0.71	)		(0.86	)		(0.93	)

Net asset value, end of year	$	33.48		$	30.74		$	41.12		$	34.41		$	35.68


Total return		11.61	%		(23.19	)%		21.73	%		(1.17	)%		(13.33	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	182,488		$	196,758		$	411,164		$	474,861		$	685,149
Ratio of expenses to average net assets		0.73	%		0.69	%		0.68	%		0.67	%		0.69	%
Ratio of net investment income to average net assets		2.13	%		2.07	%		2.38	%		2.18	%		2.55	%
Portfolio turnover rate^c		20	%		9	%		10	%		10	%		32	%

^a	Based on average shares outstanding throughout each period.

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

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, 2016, August 31, 2015, August 31, 2014, August 31, 2013 and August 31, 2012 were 20%, 9%, 6%, 9% and 20%, respectively. See Note 4.

See notes to consolidated financial statements.


84		2016 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, 2016			Year ended Aug. 31, 2015			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	$	50.87		$	62.08		$	52.23		$	50.18		$	54.71

Income from investment operations:
Net investment income^b		1.02			1.25			1.36			1.15			0.87
Net realized and unrealized gain (loss)^c		5.54			(11.61	)		9.75			1.82			(4.99	)

Total from investment operations		6.56			(10.36	)		11.11			2.97			(4.12	)

Less distributions from:
Net investment income		(1.10	)		(0.85	)		(1.26	)		(0.92	)		(0.41	)

Total distributions		(1.10	)		(0.85	)		(1.26	)		(0.92	)		(0.41	)

Net asset value, end of period	$	56.33		$	50.87		$	62.08		$	52.23		$	50.18


Total return		13.14	%		(16.86	)%		21.54	%^d		5.88	%		(7.52	)%^e


Ratios/Supplemental data:
Net assets, end of period (000s)	$	216,863		$	124,637		$	80,706		$	31,341		$	20,071
Ratio of expenses to average net assets^f		0.49	%		0.49	%		0.49	%		0.49	%		0.49	%
Ratio of expenses to average net assets prior to waived fees^f		0.66	%		0.68	%		0.68	%		0.68	%		0.68	%
Ratio of net investment income to average net assets^f		1.98	%		2.10	%		2.36	%		2.09	%		3.05	%
Portfolio turnover rate^g		22	%		16	%		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	Includes payment from an affiliate. Not including these proceeds, the Fund’s total return would have been 21.46%.

^e	Not annualized.

^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, 2016, August 31, 2015, August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 16%, 10%, 33%, 21% and 3%, 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, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	40.06		$	51.37		$	43.78		$	43.44		$	49.60

Income from investment operations:
Net investment income^a		0.90			1.04			0.93			1.07			0.50
Net realized and unrealized gain (loss)^b		3.36			(11.06	)		7.67			1.13			(5.52	)

Total from investment operations		4.26			(10.02	)		8.60			2.20			(5.02	)

Less distributions from:
Net investment income		(1.05	)		(1.29	)		(1.01	)		(1.86	)		(1.14	)

Total distributions		(1.05	)		(1.29	)		(1.01	)		(1.86	)		(1.14	)

Net asset value, end of year	$	43.27		$	40.06		$	51.37		$	43.78		$	43.44


Total return		10.83	%		(19.77	)%		19.92	%^c		4.85	%		(9.98	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	121,151		$	76,120		$	43,666		$	30,644		$	8,689
Ratio of expenses to average net assets		0.71	%		0.69	%		0.67	%		0.67	%		0.69	%
Ratio of net investment income to average net assets		2.20	%		2.20	%		1.93	%		2.26	%		1.13	%
Portfolio turnover rate^d		24	%		23	%		20	%		21	%		32	%

^a	Based on average shares outstanding throughout each period.

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

^c	Includes payment from an affiliate. Not including these proceeds, the Fund’s total return would have been 19.73%.

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, 2016, August 31, 2015, August 31, 2014, August 31, 2013 and August 31, 2012 were 24%, 23%, 20%, 21% and 17%, respectively. See Note 4.

See notes to consolidated financial statements.


86		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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
Core MSCI Emerging Markets		Diversified
MSCI BRIC		Diversified
MSCI Emerging Markets Asia		Diversified
MSCI Emerging Markets Small-Cap		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


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			87

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

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 (including money market funds) are valued at that day’s published net asset value (“NAV”).

•

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.


88		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

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, 2016, 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”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, each Subsidiary must, on an annual basis, satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius and related requirements. Each Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			89

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

statements of operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. Each Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

On May 10, 2016, India and Mauritius signed an amendment to the DTAA. The amendment provides that capital gains will be taxable in India with respect to the sale of shares acquired on or after April 1, 2017. Capital gains arising from shares acquired before April 1, 2017, regardless of when they are sold, will continue to be exempt from taxation under the amended DTAA, assuming requirements for eligibility under the DTAA are satisfied. Tax laws in India also include provisions that impose Indian tax on certain indirect transfers of shares of Indian companies. However, until such time that India provides more definitive authoritative guidance on the indirect transfer rules, the impact to the Funds, if any, cannot be determined. Management is continuing to monitor and assess the impact to the Funds arising from the DTAA amendment and the indirect transfer rules.

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 Funds’ investment adviser, or its affiliates. As of August 31, 2016, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the consolidated schedules of investments. The securities on loan for each Fund are also disclosed in its consolidated schedule of investments. The total value of any securities on loan as of August 31, 2016 and the total 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.


90		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2016:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
Core MSCI Emerging Markets
Barclays Capital Inc.	$	7,466,286	$	7,466,286	$	—
Citigroup Global Markets Inc.		45,893,778		45,893,778		—
Credit Suisse Securities (Europe) Ltd.		29,863,440		29,863,440		—
Credit Suisse Securities (USA) LLC		46,441,887		46,441,887		—
Deutsche Bank AG		13,568,584		13,568,584		—
Deutsche Bank Securities Inc.		49,520,245		49,520,245		—
HSBC Bank PLC		19,136,207		19,136,207		—
Jefferies LLC		8,498,917		8,498,917		—
JP Morgan Securities PLC		18,479,181		18,479,181		—
JPMorgan Clearing Corp.		30,675,443		30,675,443		—
Merrill Lynch, Pierce, Fenner & Smith		54,852,546		54,852,546		—
Morgan Stanley & Co. International PLC		94,361,200		94,361,200		—
Morgan Stanley & Co. LLC		127,537,357		127,537,357		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		25,164,431		25,164,431		—
National Financial Services LLC		90,000		90,000		—
Nomura Securities International Inc.		53,563		53,563		—
SG Americas Securities LLC		1,010,238		1,010,238		—
State Street Bank & Trust Company		6,273,322		6,273,322		—
UBS Ltd.		12,498,815		12,498,815		—
UBS Securities LLC		102,029,038		102,029,038		—
Wells Fargo Securities LLC		129,226,694		129,226,694		—

	$	822,641,172	$	822,641,172	$	—


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			91

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI BRIC
BNP Paribas Prime Brokerage International Ltd.	$	794,486	$	794,486	$	—
Credit Suisse Securities (USA) LLC		286,445		286,445		—
Deutsche Bank Securities Inc.		101,293		101,293		—
Goldman Sachs & Co.		260,642		260,642		—
JPMorgan Clearing Corp.		291,181		291,181		—
Merrill Lynch, Pierce, Fenner & Smith		537,946		537,946		—
Morgan Stanley & Co. LLC		1,038,088		1,038,088		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		1,933,539		1,933,539		—
State Street Bank & Trust Company		105,729		105,729		—
Wells Fargo Securities LLC		753,859		753,859		—

	$	6,103,208	$	6,103,208	$	—

MSCI Emerging Markets Asia
Barclays Capital Inc.	$	2,882	$	2,882	$	—
Citigroup Global Markets Inc.		97,813		97,813		—
Credit Suisse Securities (USA) LLC		177,468		177,468		—
Deutsche Bank AG		26,642		26,642		—
Deutsche Bank Securities Inc.		51,558		51,558		—
HSBC Bank PLC		51,655		51,655		—
Jefferies LLC		75,537		75,537		—
JPMorgan Clearing Corp.		406,318		406,318		—
Merrill Lynch, Pierce, Fenner & Smith		180,841		180,841		—
Morgan Stanley & Co. International PLC		1,102,508		1,102,508		—
Morgan Stanley & Co. LLC		1,928,889		1,928,889		—
Nomura Securities International Inc.		51,570		51,570		—

	$	4,153,681	$	4,153,681	$	—

MSCI Emerging Markets Small-Cap
Barclays Capital Inc.	$	425,544	$	425,544	$	—
Citigroup Global Markets Inc.		705,836		705,836		—
Credit Suisse Securities (USA) LLC		1,652,541		1,652,541		—
Deutsche Bank AG		81,886		81,886		—
Deutsche Bank Securities Inc.		1,967,855		1,967,855		—
Goldman Sachs & Co.		2,865,403		2,865,403		—
JPMorgan Clearing Corp.		1,153,863		1,153,863		—
Merrill Lynch, Pierce, Fenner & Smith		1,291,205		1,291,205		—
Morgan Stanley & Co. International PLC		171,981		171,981		—
Morgan Stanley & Co. LLC		1,604,787		1,604,787		—
SG Americas Securities LLC		16,047		16,047		—
UBS Securities LLC		1,429,061		1,429,061		—

	$	13,366,009	$	13,366,009	$	—

Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s consolidated statement of assets and liabilities.


92		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

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 the iShares Core MSCI Emerging Markets ETF, BFA is entitled to an annual investment advisory fee of 0.16% based on the average daily net assets of the Fund. Prior to November 10, 2015, for its investment advisory services to the Fund, BFA was entitled to an annual investment advisory fee of 0.18% based on the average daily net assets of the Fund. In addition, the Fund indirectly pays its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA contractually agreed to waive a portion of its investment advisory fees for the Fund through December 31, 2015 in an amount equal to the acquired fund fees and expenses attributable to the Fund’s investments in other iShares funds, if any.

Effective October 5, 2016, for its investment advisory services to the iShares Core MSCI Emerging Markets ETF, BFA will be entitled to an annual investment advisory fee of 0.14% based on the average daily net assets of the Fund.

For its investment advisory services to each of the iShares MSCI BRIC 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		Over $42 billion, up to and including $56 billion
	0.47		Over $56 billion, up to and including $70 billion
	0.41		Over $70 billion, up to and including $84 billion
	0.35		Over $84 billion

For its investment advisory services to the iShares MSCI Emerging Markets Asia ETF, BFA is entitled to an annual investment advisory fee of 0.49% based on the average daily net assets of the Fund. Prior to August 1, 2016, for its investment advisory services to the Fund, BFA was entitled to an annual investment advisory fee of 0.68% based on the average daily net assets of the Fund. BFA contractually agreed to waive a portion of its investment advisory fees for the Fund through December 31, 2018 in order to limit total annual operating expenses after fee waiver to 0.49% of average daily net assets. The contractual waiver was terminated effective August 1, 2016, pursuant to a written agreement between the Company and BFA.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			93

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

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 the remaining portion to BTC as compensation for its services as securities lending agent.

For the year ended August 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
Core MSCI Emerging Markets	$	5,182,005
MSCI BRIC		34,800
MSCI Emerging Markets Asia		29,152
MSCI Emerging Markets Small-Cap		142,478

For the year ended August 31, 2016, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares Core MSCI Emerging Markets ETF in the amount of $151,437, related to the foreign tax on the securities lending income. Such reimbursement is included in “Securities lending income – affiliated – net” in the Fund’s statement of operations.

For the year ended August 31, 2016, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
Core MSCI Emerging Markets	$	11,821,486	$	25,269,614
MSCI BRIC		—		875,795
MSCI Emerging Markets Asia		61,080		464,103
MSCI Emerging Markets Small-Cap		273,576		536,511

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.


94		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

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.

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, 2016 were as follows:


iShares ETF	Purchases		Sales
Core MSCI Emerging Markets	$	6,648,747,943	$	1,065,171,693
MSCI BRIC		34,497,283		45,119,317
MSCI Emerging Markets Asia		78,039,593		28,274,700
MSCI Emerging Markets Small-Cap		54,779,141		21,891,205

In-kind transactions (see Note 4) for the year ended August 31, 2016 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
Core MSCI Emerging Markets	$	2,316,117,231	$	—
MSCI BRIC		—		16,707,997
MSCI Emerging Markets Asia		33,271,200		5,848,956
MSCI Emerging Markets Small-Cap		4,468,162		—

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FUTURES CONTRACTS*


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			95

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

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 iShares Core MSCI Emerging Markets ETF as of August 31, 2016 and the related locations in the consolidated statements of assets and liabilities, presented by risk exposure category:


Assets
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation (depreciation)^a	$	4,979,040

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

The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares Core MSCI Emerging Markets ETF during the year ended August 31, 2016 and the related locations in the consolidated statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	4,525,455	$	9,501,167

The following table shows the average quarter-end balances of open futures contracts for the iShares Core MSCI Emerging Markets ETF for the year ended August 31, 2016:


Average value of contracts purchased	$	41,109,865

6.	*PRINCIPAL RISKS*


96		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

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 and/or indirect 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 consolidated schedule of investments.

CREDIT RISK


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			97

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

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 NAV per share. The following permanent differences as of August 31, 2016, attributable to the characterization of corporate actions, 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
Core MSCI Emerging Markets	$	—		$	(642,160	)	$	642,160
MSCI BRIC		(2,762,578	)		21,527			2,741,051
MSCI Emerging Markets Asia		(87,808	)		(37,495	)		125,303
MSCI Emerging Markets Small-Cap		—			359,818			(359,818	)

The tax character of distributions paid during the years ended August 31, 2016 and August 31, 2015 was as follows:


iShares ETF	2016		2015
Core MSCI Emerging Markets
Ordinary income	$	238,601,549	$	149,835,315


MSCI BRIC
Ordinary income	$	4,397,149	$	7,526,071


MSCI Emerging Markets Asia
Ordinary income	$	2,586,361	$	1,886,156


MSCI Emerging Markets Small-Cap
Ordinary income	$	2,370,926	$	1,449,168

As of August 31, 2016, 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
Core MSCI Emerging Markets	$	133,382,273	$	(147,376,048	)	$	(185,357,683	)	$	(122,840,200	)	$	(322,191,658	)
MSCI BRIC		1,219,551		(199,655,233	)		(11,321,100	)		(19,634,539	)		(229,391,321	)
MSCI Emerging Markets Asia		1,247,743		(16,908,873	)		4,657,841			(7,021,881	)		(18,025,170	)
MSCI Emerging Markets Small-Cap		1,427,287		(6,025,784	)		(4,232,300	)		(5,855,816	)		(14,686,613	)

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the corporate actions, 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.


98		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2016, the following 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
Core MSCI Emerging Markets	$	147,376,048	$	—	$	—	$	—	$	147,376,048
MSCI BRIC		179,085,849		1,540,740		11,268,086		7,760,558		199,655,233
MSCI Emerging Markets Asia		16,908,873		—		—		—		16,908,873
MSCI Emerging Markets Small-Cap		6,025,784		—		—		—		6,025,784

Must be utilized prior to losses subject to expiration.

8.	*LINE OF CREDIT*

The Funds, along with certain other iShares funds, are parties to a $250 million credit agreement with State Street Bank and Trust Company, which expires on October 25, 2017. 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 0.20% 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 (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) 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.

The iShares Core MSCI Emerging Markets ETF did not borrow under the credit agreement during the year ended August 31, 2016.

For the year ended August 31, 2016, the maximum amounts borrowed, the average borrowings and the weighted average interest rates, if any, under the credit agreement were as follows:


iShares ETF	Maximum Amount Borrowed		Average Borrowings		Weighted Average Interest Rates
MSCI BRIC	$	1,500,000	$	51,339		1.26	%
MSCI Emerging Markets Asia		1,171,500		25,690		1.30
MSCI Emerging Markets Small-Cap		635,000		16,298		1.25


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			99

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

9.	*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.


100		2016 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 Core MSCI Emerging Markets ETF, iShares MSCI BRIC ETF, iShares MSCI Emerging Markets Asia ETF, iShares MSCI Emerging Markets Small-Cap ETF and their subsidiaries (the “Funds”) at August 31, 2016, 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, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 21, 2016


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			101

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2016:


iShares ETF	Qualified Dividend Income
Core MSCI Emerging Markets	$	193,609,611
MSCI BRIC		3,231,124
MSCI Emerging Markets Asia		1,917,227
MSCI Emerging Markets Small-Cap		1,282,131

For the fiscal year ended August 31, 2016, the Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
Core MSCI Emerging Markets	$	332,331,791	$	35,894,173
MSCI BRIC		5,233,539		372,506
MSCI Emerging Markets Asia		3,443,892		431,282
MSCI Emerging Markets Small-Cap		2,823,265		230,826


102		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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			103

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


104		2016 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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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			105

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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.

II. iShares MSCI BRIC 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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 (net of waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds. The Board further noted that the Fund has a more targeted exposure (Brazil, Russia, India and China) than certain of the comparison funds in its Peer Group.


106		2016 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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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			107

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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


108		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 Emerging Markets Asia 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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			109

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


110		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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, among other things, 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, at a meeting held on June 21-23, 2016, the Board approved a permanent reduction to the advisory fee rate charged to the Fund. In addition, the Board noted that should additional material economies of scale exist in the future that are not otherwise shared, 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.

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			111

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.

IV. iShares MSCI Emerging Markets Small-Cap 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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:


112		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’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 (net of waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds. The Board further noted that the Fund invests primarily in securities of small-cap companies in emerging markets, as compared to most of the competitor funds as identified by Broadridge, which do not invest primarily in the securities of small-cap companies in emerging markets.

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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			113

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


114		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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			115

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
Core MSCI Emerging Markets	$	0.927108	$	—	$	—	$	0.927108		100	%		—	%		—	%		100	%
MSCI BRIC		0.713820		—		0.022945		0.736765		97			—			3			100
MSCI Emerging Markets Asia		1.100579		—		—		1.100579		100			—			—			100
MSCI Emerging Markets Small-Cap		1.046198		—		—		1.046198		100			—			—			100

Premium/Discount Information


116		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Core Emerging Markets ETF

Period Covered: October 18, 2012 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		1		0.11	%
Greater than 2.0% and Less than 2.5%		3		0.32
Greater than 1.5% and Less than 2.0%		24		2.58
Greater than 1.0% and Less than 1.5%		67		7.20
Greater than 0.5% and Less than 1.0%		211		22.69
Between 0.5% and –0.5%		501		53.86
Less than –0.5% and Greater than –1.0%		80		8.60
Less than –1.0% and Greater than –1.5%		29		3.12
Less than –1.5% and Greater than –2.0%		10		1.08
Less than –2.0% and Greater than –2.5%		2		0.22
Less than –2.5% and Greater than –3.0%		2		0.22

		930		100.00	%

iShares MSCI BRIC ETF

Period Covered: January 1, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
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%		5		0.36
Greater than 1.5% and Less than 2.0%		12		.87
Greater than 1.0% and Less than 1.5%		39		2.82
Greater than 0.5% and Less than 1.0%		105		7.59
Between 0.5% and –0.5%		772		55.82
Less than –0.5% and Greater than –1.0%		271		19.60
Less than –1.0% and Greater than –1.5%		111		8.03
Less than –1.5% and Greater than –2.0%		38		2.75
Less than –2.0% and Greater than –2.5%		13		0.94
Less than –2.5% and Greater than –3.0%		8		0.58
Less than –3.0% and Greater than –3.5%		2		0.14
Less than –3.5% and Greater than –4.0%		1		0.07

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			117

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Emerging Markets Asia ETF

Period Covered: February 8, 2012 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.09	%
Greater than 2.5% and Less than 3.0%		2		0.18
Greater than 2.0% and Less than 2.5%		6		0.54
Greater than 1.5% and Less than 2.0%		33		2.98
Greater than 1.0% and Less than 1.5%		101		9.13
Greater than 0.5% and Less than 1.0%		211		19.09
Between 0.5% and –0.5%		512		46.30
Less than –0.5% and Greater than –1.0%		148		13.38
Less than –1.0% and Greater than –1.5%		52		4.70
Less than –1.5% and Greater than –2.0%		22		1.99
Less than –2.0% and Greater than –2.5%		10		0.90
Less than –2.5% and Greater than –3.0%		6		0.54
Less than –3.0% and Greater than –3.5%		2		0.18

		1,106		100.00	%

iShares MSCI Emerging Markets Small-Cap ETF

Period Covered: August 16, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.5%		1		0.08	%
Greater than 5.0% and Less than 5.5%		1		0.08
Greater than 4.5% and Less than 5.0%		2		0.16
Greater than 4.0% and Less than 4.5%		3		0.24
Greater than 3.5% and Less than 4.0%		2		0.16
Greater than 3.0% and Less than 3.5%		5		0.41
Greater than 2.5% and Less than 3.0%		5		0.41
Greater than 2.0% and Less than 2.5%		24		1.96
Greater than 1.5% and Less than 2.0%		56		4.56
Greater than 1.0% and Less than 1.5%		125		10.19
Greater than 0.5% and Less than 1.0%		252		20.54
Between 0.5% and –0.5%		521		42.47
Less than –0.5% and Greater than –1.0%		139		11.33
Less than –1.0% and Greater than –1.5%		48		3.91
Less than –1.5% and Greater than –2.0%		23		1.87
Less than –2.0% and Greater than –2.5%		13		1.06
Less than –2.5% and Greater than –3.0%		5		0.41
Less than –3.0%		2		0.16

		1,227		100.00	%


118		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Regulation under the Alternative Investment Fund Managers Directive (“AIFMD” or the “Directive”)

BFA has registered the iShares Core MSCI Emerging Markets ETF and the iShares MSCI BRIC ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden, and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to (a) the staff of BFA; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Funds.

No individual is involved in setting his or her own remuneration.


SUPPLEMENTAL INFORMATION			119

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

of each individual’s portion of remuneration attributable to the Funds according to an objective apportionment methodology which acknowledges the multiple-service nature of BFA. 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 Core MSCI Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2015 is USD 1.6 million. This figure is comprised of fixed remuneration of USD 622.11 thousand and variable remuneration of USD 977.54 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares Core MSCI Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 190.11 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 46.04 thousand.

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, 2015 is USD 29.96 thousand. This figure is comprised of fixed remuneration of USD 11.65 thousand and variable remuneration of USD 18.31 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI BRIC ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 3.56 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.86 thousand.


120		2016 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			121

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director During the Past 5 Years
Cecilia H. Herbert (67)	Director (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	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 media company (since 2011).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015).

Jane D. Carlin (60)	Director (since 2015); Risk Committee Chair (since 2016).	Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012).

Charles A. Hurty (72)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); 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 (61)	Director (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (55)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).


122		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c (Continued)

Robert H. Silver served as an Independent Director until March 31, 2016.


DIRECTOR AND OFFICER INFORMATION			123

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^d



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since January 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).

Jack Gee (56)	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).

Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).

Scott Radell (47)	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 (53)	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).

Manish Mehta served as President until October 15, 2016.


124		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			125

Notes:


126		2016 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-810-0816

AUGUST 31, 2016


2016 ANNUAL REPORT

iShares, Inc.

^Ø

iShares Currency Hedged MSCI Emerging Markets ETF | HEEM | NYSE Arca

^Ø

iShares Edge MSCI Min Vol EM Currency Hedged ETF | HEMV | BATS

^Ø

iShares Edge MSCI Min Vol Emerging Markets ETF | EEMV | NYSE Arca

^Ø

iShares MSCI Emerging Markets ETF | EEM | NYSE Arca

Table of Contents


Management’s Discussion of Fund Performance			5
About Fund Performance			14
Shareholder Expenses			14
Schedules of Investments			15
iShares Currency Hedged MSCI Emerging Markets ETF			15
iShares Edge MSCI Min Vol EM Currency Hedged ETF			19
iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)			22
iShares MSCI Emerging Markets ETF (Consolidated)			28
Financial Statements			43
Financial Highlights			49
Notes to Financial Statements			53
Report of Independent Registered Public Accounting Firm			69
Tax Information			70
Board Review and Approval of Investment Advisory Contract			71
Supplemental Information			81
Director and Officer Information			86

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		7.84%		7.88%		8.31%		7.84%		7.88%		8.31%
Since Inception		(1.53)%		(1.52)%		(0.97)%		(2.95)%		(2.93)%		(1.88)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 9/23/14. The first day of secondary market trading was 9/25/14.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a,b		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a,b		Annualized Expense Ratio^a
$	1,000.00	$	1,144.90	$	0.00	$	1,000.00	$	1,025.20	$	0.00		0.00%

^a	Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

The iShares Currency Hedged MSCI Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI Emerging Markets 100% Hedged to USD Index (the “Index”).

The Index sells forward the non-U.S. dollar currencies in which the constituent securities are denominated in an amount equal to those securities at a one-month forward rate to effectively create a “hedge” against fluctuations in the relative value of the component currencies in relation to the U.S. dollar. In order to replicate the hedging component of the Index, the Fund enters into foreign currency forward contracts designed to offset the Fund’s exposure to the component currencies.


6		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Emerging Markets ETF. For the 12-month reporting period ended August 31, 2016, the total return for the Fund was 7.84%, net of fees, while the total return for the Index was 8.31%.

As represented by the Index, emerging markets equities advanced for the reporting period and outpaced the broad global equity market in a volatile market environment.

From a country perspective, South Korea was the most significant contributor to Index performance for the reporting period, benefiting from an improving economy and accommodative interest rate policy. China contributed meaningfully to the Index’s return as economic growth stabilized amid improving industrial production and rising consumer spending. Brazil contributed amid a rebound in commodity prices and encouraging signals from the country’s new government. Taiwan advanced, supported by a rebound in exports and positive economic growth late in the reporting period. From a sector standpoint, the information technology and financials sector contributed the most to the Index’s return for the reporting period.

On the downside, Poland detracted from Index performance for the reporting period as its credit rating was downgraded. South Africa detracted as its economy struggled with high energy costs, labor problems, and a food shortage.

In terms of currency performance, the Brazilian real appreciated by 10% and the South Korean won appreciated by 6% relative to the U.S. dollar, while the South African rand depreciated by 11% relative to the U.S. dollar. Overall, the positive performance of emerging markets currencies meant hedging activity was a meaningful detractor from the Index’s return. A fully hedged investor seeks to bypass the currency impact — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the positive impact of rising foreign currencies relative to the U.S. dollar, resulting in an Index return that was relatively close to emerging market equities’ return when measured in local currencies.

ALLOCATION BY SECTOR¹

As of 8/31/16


Sector		Percentage of Total Investments²


Financials³	23.86	%
Information Technology	23.36
Consumer Discretionary	10.49
Consumer Staples	7.89
Energy	7.16
Materials	6.44
Telecommunication Services	6.24
Industrials	6.06
Utilities	3.05
Real Estate³	2.83
Health Care	2.62

TOTAL	100.00	%

TEN LARGEST COUNTRIES¹

As of 8/31/16


Country		Percentage of Total Investments²


China	26.72	%
South Korea	14.78
Taiwan	11.96
India	8.66
Brazil	7.42
South Africa	6.85
Mexico	3.84
Russia	3.55
Malaysia	2.78
Indonesia	2.70

TOTAL	89.26	%

Reflects the portfolio allocation and ten largest countries of the iShares MSCI Emerging Markets ETF, the underlying fund in which the Fund invests.

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MIN VOL EM CURRENCY HEDGED ETF

Performance as of August 31, 2016

Cumulative Total Returns

NAV

MARKET

INDEX

Since Inception

3.45%

4.13%

2.71%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 10/29/15. The first day of secondary market trading was 11/2/15.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a,b		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a,b		Annualized Expense Ratio^a
$	1,000.00	$	1,095.90	$	0.16	$	1,000.00	$	1,025.00	$	0.15		0.03%

Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

The iShares Edge MSCI Min Vol EM Currency Hedged ETF (the “Fund”) (formerly the iShares Currency Hedged MSCI EM Minimum Volatility ETF) 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 while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI Emerging Markets Minimum Volatility (USD) 100% Hedged to USD Index (the “Index”).


8		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MIN VOL EM CURRENCY HEDGED ETF

Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares Edge MSCI Min Vol Emerging Markets ETF (formerly the iShares MSCI Emerging Markets Minimum Volatility ETF). For the period from October 29, 2015 (inception date of the Fund) through August 31, 2016, the total return for the Fund was 3.45%, net of fees, while the total return for the Index was 2.71%.

The Index posted a positive return for the reporting period, but it trailed the performance of broad emerging market equities. Given its focus on lower-volatility stocks, the Index tends to outperform during market declines but can underperform when the broader market rallies. The sharp rebound in emerging markets stocks over the last half of the reporting period detracted from the Index’s performance.

From a country perspective, Taiwan, which represented about 18% of the Index on average, was the largest contributor to the Index’s performance for the reporting period. Taiwan’s exports rebounded late in the reporting period, leading the country’s economy out of recession for the first time since the second quarter of 2015. Indonesia was also a large contributor to the Index’s return as economic growth improved during the reporting period. Other notable contributors to the Index’s return for the reporting period included China and Malaysia.

South Africa was among the leading detractors from the Index’s performance for the reporting period. Although the country’s economy rebounded after contracting in the first quarter of 2016, consumer confidence declined over the past year amid concerns about a weak economic outlook and a drought-induced rise in food prices.

Mexico also detracted from Index performance for the reporting period as consumer confidence fell to its lowest level since February 2014. Other noteworthy detractors from the Index’s performance for the reporting period included India and Poland.

From a currency perspective, emerging market currencies were mixed but stronger overall relative to the U.S. dollar for the reporting period. As a result, currency hedging activity detracted from Index performance for the reporting period. A fully hedged investor seeks to bypass the currency impact — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the positive impact of rising foreign currencies relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of lower-volatility emerging market stocks when measured in local currencies.

ALLOCATION BY SECTOR¹

As of 8/31/16


Sector		Percentage of Total Investments²


Financials³	23.19	%
Information Technology	17.66
Consumer Staples	13.07
Telecommunication Services	12.02
Utilities	7.69
Health Care	7.55
Industrials	7.21
Consumer Discretionary	6.12
Energy	3.02
Materials	1.39
Real Estate³	1.08

TOTAL	100.00	%

TEN LARGEST COUNTRIES¹

As of 8/31/16


Country		Percentage of Total Investments²


China	21.83	%
Taiwan	17.11
South Korea	10.91
Malaysia	7.56
Thailand	6.45
Philippines	5.06
Indonesia	4.96
India	4.52
Chile	3.42
Mexico	3.28

TOTAL	85.10	%

Reflects the portfolio allocation and ten largest countries of the iShares Edge MSCI Min Vol Emerging Markets ETF, the underlying fund in which the Fund invests.

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		7.48%		7.45%		7.79%		7.48%		7.45%		7.79%
Since Inception		4.20%		4.13%		4.41%		22.22%		21.83%		23.40%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,155.70	$	1.35	$	1,000.00	$	1,023.90	$	1.27		0.25%


10		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

The iShares Edge MSCI Min Vol Emerging Markets ETF (the “Fund”) (formerly the iShares MSCI Emerging Markets Minimum Volatility ETF) 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, 2016, the total return for the Fund was 7.48%, net of fees, while the total return for the Index was 7.79%.

As represented by the Index, lower-volatility stocks in emerging markets posted positive returns for the reporting period but trailed the performance of broad emerging market equities. Given its lower volatility, the strategy tends to outperform the broader market during periods of weakness but can underperform the broader market when it rallies. The sharp rebound in emerging markets stocks over the last half of the reporting period contributed to the Index’s underperformance relative to the broader market.

Emerging market currencies were mixed relative to the U.S. dollar for the reporting period, but on balance, currency fluctuations contributed positively to Index performance.

Taiwan, which represented about 18% of the Index on average during the reporting period, was the largest contributor to the Index’s performance. Taiwan’s exports rebounded late in the reporting period, leading the country’s economy out of recession for the first time since the second quarter of 2015. China also contributed meaningfully to the Index’s return as consumer spending increased and economic growth stabilized. Other noteworthy contributors to the Index’s performance for the reporting period included South Korea, Indonesia, and Malaysia.

South Africa was among the leading detractors from the Index’s performance for the reporting period. Although the country’s economy rebounded after contracting in the first quarter of 2016, consumer confidence has been declining over the past year amid concerns over a weak economic outlook and a drought-induced rise in food prices. Other notable detractors from the Index’s return for the reporting period included Poland, India, and Qatar.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments¹


Financials²	23.19	%
Information Technology	17.66
Consumer Staples	13.07
Telecommunication Services	12.02
Utilities	7.69
Health Care	7.55
Industrials	7.21
Consumer Discretionary	6.12
Energy	3.02
Materials	1.39
Real Estate²	1.08

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country		Percentage of Total Investments¹


China	21.83	%
Taiwan	17.11
South Korea	10.91
Malaysia	7.56
Thailand	6.45
Philippines	5.06
Indonesia	4.96
India	4.52
Chile	3.42
Mexico	3.28

TOTAL	85.10	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.28%		10.63%		11.83%		11.28%		10.63%		11.83%
5 Years		(0.96)%		(1.09)%		(0.42)%		(4.71)%		(5.36)%		(2.09)%
10 Years		3.24%		3.16%		3.90%		37.58%		36.53%		46.57%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,223.30	$	3.97	$	1,000.00	$	1,021.60	$	3.61		0.71%


12		2016 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, 2016, the total return for the Fund was 11.28%, net of fees, while the total return for the Index was 11.83%.

As represented by the Index, emerging markets equities advanced for the reporting period and outpaced the broad global equity market in a volatile market environment.

Although some currencies, including the South African rand, depreciated relative to the U.S. dollar during the reporting period, currency fluctuations overall benefited Index performance in U.S. dollar terms. In particular, the Brazilian real appreciated by 10% and the South Korean won appreciated by 6% relative to the U.S. dollar, making investments in those countries worth more when translated into U.S. dollars.

From a country perspective, South Korea was the most significant contributor to Index performance, benefiting from an improving economy and accommodative interest rate policy. China contributed meaningfully to the Index’s return as economic growth stabilized amid improving industrial production and rising consumer spending. Brazil contributed amid a rebound in commodity prices and encouraging signals from the country’s new government. Taiwan advanced, supported by a rebound in exports and positive economic growth late in the reporting period. From a sector standpoint, the information technology and financials sectors contributed the most to the Index’s return for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments¹


Financials²	23.86	%
Information Technology	23.36
Consumer Discretionary	10.49
Consumer Staples	7.89
Energy	7.16
Materials	6.44
Telecommunication Services	6.24
Industrials	6.06
Utilities	3.05
Real Estate²	2.83
Health Care	2.62

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country		Percentage of Total Investments¹


China	26.72	%
South Korea	14.78
Taiwan	11.96
India	8.66
Brazil	7.42
South Africa	6.85
Mexico	3.84
Russia	3.55
Malaysia	2.78
Indonesia	2.70

TOTAL	89.26	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

About Fund Performance

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, 2016 (or commencement of operations, as applicable) and held through August 31, 2016, 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.


14		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
INVESTMENT COMPANIES — 99.89%

EXCHANGE-TRADED FUNDS — 99.89%
iShares MSCI Emerging Markets ETF^a		4,928,896	$	180,052,571

				180,052,571

TOTAL INVESTMENT COMPANIES
(Cost: $194,127,534)				180,052,571

SHORT-TERM INVESTMENTS — 0.06%

MONEY MARKET FUNDS — 0.06%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^b,c		119,104		119,104

				119,104

TOTAL SHORT-TERM INVESTMENTS
(Cost: $119,104)				119,104


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.95%
(Cost: $194,246,638)^d	$	180,171,675
Other Assets, Less Liabilities — 0.05%		82,117

NET ASSETS — 100.00%	$	180,253,792

^a	Affiliated issuer. See Schedule 1.

^b	Affiliated money market fund.

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

^d	The cost of investments for federal income tax purposes was $200,819,207. Net unrealized depreciation was $20,647,532, of which $ — represented gross unrealized appreciation on securities and $20,647,532 represented gross unrealized depreciation on securities.

Schedule 1 — Affiliates (Note 2)


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)
iShares MSCI Emerging Markets ETF		6,243,211		2,460,099		(3,774,414	)		4,928,896	$	180,052,571	$	4,628,702	$	(6,796,483	)

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2016 were as follows:


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	BRL	2,116,000		USD	649,812	BNP		09/06/2016	$	4,775
	BRL	262,000		USD	79,452	JPM		09/06/2016		1,598
	BRL	1,057,000		USD	318,368	SSB		09/06/2016		8,616
	EUR	3,199,000		USD	3,567,887	BNP		09/06/2016		932
	EUR	55,000		USD	61,018	SSB		09/06/2016		340
	HKD	1,702,000		USD	219,397	MS		09/06/2016		10
	INR	48,451,000		USD	721,978	BNP		09/06/2016		1,033
	INR	45,491,000		USD	678,059	MS		09/06/2016		781
	INR	1,055,842,000		USD	15,744,736	RBS		09/06/2016		11,076
	INR	18,244,000		USD	270,803	SSB		09/06/2016		1,443
	KRW	934,398,000		USD	832,648	BNP		09/06/2016		4,969
	KRW	1,400,158,000		USD	1,251,482	MS		09/06/2016		3,654
	KRW	40,576,050,000		USD	36,286,934	SCB		09/06/2016		86,433


SCHEDULES OF INVESTMENTS			15

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

August 31, 2016


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	KRW	695,360,000		USD	617,878	SSB		09/06/2016	$	5,460
	MXN	195,247,000		USD	10,376,444	BNP		09/06/2016		1,468
	MXN	1,116,000		USD	58,746	MS		09/06/2016		573
	MXN	3,729,000		USD	196,796	SSB		09/06/2016		1,410
	RUB	2,028,000		USD	30,159	JPM		09/06/2016		829
	RUB	6,140,000		USD	91,260	SSB		09/06/2016		2,557
	TRY	7,015,000		USD	2,363,762	BNP		09/06/2016		5,708
	TRY	39,000		USD	12,933	MS		09/06/2016		241
	TRY	117,000		USD	38,460	SSB		09/06/2016		1,059
	TWD	17,892,000		USD	561,071	SSB		09/06/2016		2,655
	USD	567,974		BRL	1,832,000	SSB		09/06/2016		1,242
	USD	160,120		EUR	143,000	BNP		09/06/2016		588
	USD	38,095,919		HKD	295,355,000	BNP		09/06/2016		21,228
	USD	14,311		HKD	111,000	MS		09/06/2016		2
	USD	7,838		KRW	8,692,000	JPM		09/06/2016		47
	USD	1,249,610		KRW	1,392,066,000	MS		09/06/2016		1,728
	USD	178,806		MXN	3,361,000	BNP		09/06/2016		160
	USD	2,119		MXN	39,000	MS		09/06/2016		46
	USD	255,335		RUB	16,590,000	BNP		09/06/2016		1,844
	USD	1,112		RUB	72,000	MS		09/06/2016		11
	USD	155,296		RUB	10,088,000	SSB		09/06/2016		1,154
	USD	679		TRY	2,000	BNP		09/06/2016		4
	USD	339		TRY	1,000	MS		09/06/2016		1
	USD	11,487		TWD	362,000	BNP		09/06/2016		82
	USD	12,499		TWD	394,000	JPM		09/06/2016		86
	USD	14,789,164		ZAR	211,939,000	BNP		09/06/2016		384,787
	USD	78,684		ZAR	1,139,000	MS		09/06/2016		1,272
	USD	654,492		ZAR	9,487,000	SSB		09/06/2016		9,711
	BRL	344,000		USD	105,202	BNP		10/05/2016		315
	EUR	4,000		USD	4,468	BNP		10/05/2016		1
	EUR	20,000		USD	22,307	MS		10/05/2016		34
	MXN	840,000		USD	44,397	BNP		10/05/2016		131
	RUB	2,472,000		USD	37,507	BNP		10/05/2016		1
	TRY	41,000		USD	13,755	BNP		10/05/2016		8
	USD	13,443,574		BRL	43,779,000	SSB		10/05/2016		15,124
	USD	36,972,307		HKD	286,700,000	BNP		10/05/2016		1,993
	USD	1,741,623		HKD	13,505,000	MS		10/05/2016		137
	USD	64,040		RUB	4,220,000	MS		10/05/2016		10
	USD	5,227,269		RUB	342,177,000	SSB		10/05/2016		35,383
	USD	31,401,389		TWD	994,796,000	MS		10/05/2016		1,652
	USD	13,189,730		ZAR	192,304,000	BNP		10/05/2016		193,875
	ZAR	2,178,000		USD	147,187	BNP		10/05/2016		1
	ZAR	2,028,000		USD	136,939	MS		10/05/2016		113

										820,391

	BRL	4,350,000		USD	1,346,958	MS		09/06/2016		(1,280	)
	BRL	43,606,000		USD	13,525,015	RBS		09/06/2016		(35,444	)
	BRL	775,000		USD	241,508	SSB		09/06/2016		(1,761	)
	EUR	147,000		USD	165,262	BNP		09/06/2016		(1,268	)
	EUR	18,000		USD	20,230	MS		09/06/2016		(149	)
	EUR	82,000		USD	92,242	SSB		09/06/2016		(763	)
	HKD	312,613,000		USD	40,302,871	BNP		09/06/2016		(3,424	)
	HKD	11,265,000		USD	1,453,015	SSB		09/06/2016		(826	)
	INR	6,066,000		USD	90,558	JPM		09/06/2016		(38	)
	INR	17,405,000		USD	259,815	SSB		09/06/2016		(89	)
	KRW	943,505,000		USD	845,927	BNP		09/06/2016		(146	)
	KRW	229,854,000		USD	206,729	JPM		09/06/2016		(682	)


16		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

August 31, 2016


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	KRW	875,151,000		USD	795,557	SSB		09/06/2016	$	(11,051	)
	MXN	9,083,000		USD	491,247	BNP		09/06/2016		(8,461	)
	MXN	3,273,000		USD	181,172	SSB		09/06/2016		(7,203	)
	RUB	16,590,000		USD	255,631	BNP		09/06/2016		(2,140	)
	RUB	365,965,000		USD	5,632,831	JPM		09/06/2016		(40,982	)
	RUB	2,765,000		USD	42,584	MS		09/06/2016		(335	)
	RUB	5,896,000		USD	92,168	SSB		09/06/2016		(2,079	)
	TRY	314,000		USD	106,491	BNP		09/06/2016		(430	)
	TRY	115,000		USD	39,062	SSB		09/06/2016		(219	)
	TWD	47,839,000		USD	1,509,774	BNP		09/06/2016		(2,501	)
	TWD	1,036,696,000		USD	32,668,518	JPM		09/06/2016		(5,138	)
	TWD	43,789,000		USD	1,380,268	MS		09/06/2016		(600	)
	TWD	17,056,000		USD	547,368	SSB		09/06/2016		(9,982	)
	USD	653,476		BRL	2,116,000	BNP		09/06/2016		(1,111	)
	USD	80,863		BRL	262,000	JPM		09/06/2016		(187	)
	USD	1,329,528		BRL	4,350,000	MS		09/06/2016		(16,150	)
	USD	13,162,089		BRL	43,606,000	RBS		09/06/2016		(327,482	)
	USD	3,555,586		EUR	3,203,000	BNP		09/06/2016		(17,695	)
	USD	20,076		EUR	18,000	MS		09/06/2016		(5	)
	USD	152,799		EUR	137,000	SSB		09/06/2016		(39	)
	USD	2,224,693		HKD	17,258,000	BNP		09/06/2016		(64	)
	USD	205,084		HKD	1,591,000	MS		09/06/2016		(14	)
	USD	1,452,115		HKD	11,265,000	SSB		09/06/2016		(75	)
	USD	722,172		INR	48,451,000	BNP		09/06/2016		(838	)
	USD	90,408		INR	6,066,000	JPM		09/06/2016		(112	)
	USD	677,555		INR	45,491,000	MS		09/06/2016		(1,285	)
	USD	15,656,020		INR	1,055,842,000	RBS		09/06/2016		(99,792	)
	USD	531,225		INR	35,649,000	SSB		09/06/2016		(747	)
	USD	1,677,933		KRW	1,877,903,000	BNP		09/06/2016		(5,465	)
	USD	197,641		KRW	221,162,000	JPM		09/06/2016		(614	)
	USD	7,234		KRW	8,092,000	MS		09/06/2016		(20	)
	USD	35,968,487		KRW	40,576,050,000	SCB		09/06/2016		(404,880	)
	USD	1,403,621		KRW	1,570,511,000	SSB		09/06/2016		(4,224	)
	USD	10,627,320		MXN	200,969,000	BNP		09/06/2016		(54,732	)
	USD	57,215		MXN	1,077,000	MS		09/06/2016		(31	)
	USD	372,041		MXN	7,002,000	SSB		09/06/2016		(135	)
	USD	5,481,062		RUB	367,993,000	JPM		09/06/2016		(141,773	)
	USD	40,306		RUB	2,693,000	MS		09/06/2016		(842	)
	USD	29,232		RUB	1,948,000	SSB		09/06/2016		(533	)
	USD	2,403,122		TRY	7,327,000	BNP		09/06/2016		(71,732	)
	USD	12,796		TRY	38,000	MS		09/06/2016		(39	)
	USD	78,196		TRY	232,000	SSB		09/06/2016		(167	)
	USD	1,492,753		TWD	47,477,000	BNP		09/06/2016		(3,114	)
	USD	32,513,475		TWD	1,036,302,000	JPM		09/06/2016		(137,490	)
	USD	1,375,597		TWD	43,789,000	MS		09/06/2016		(4,071	)
	USD	1,100,005		TWD	34,948,000	SSB		09/06/2016		(1,108	)
	ZAR	211,939,000		USD	14,630,417	BNP		09/06/2016		(226,041	)
	ZAR	1,139,000		USD	80,719	MS		09/06/2016		(3,307	)
	ZAR	9,487,000		USD	683,360	SSB		09/06/2016		(38,579	)
	INR	6,797,000		USD	100,997	MS		10/05/2016		(16	)
	KRW	145,093,000		USD	130,022	BNP		10/05/2016		(23	)
	TWD	3,714,000		USD	117,357	BNP		10/05/2016		(128	)
	TWD	2,790,000		USD	88,131	MS		10/05/2016		(68	)
	USD	357,056		BRL	1,169,000	MS		10/05/2016		(1,515	)
	USD	3,399,610		EUR	3,044,000	MS		10/05/2016		(700	)
	USD	130,269		INR	8,770,000	BNP		10/05/2016		(25	)
	USD	15,069,130		INR	1,015,584,000	MS		10/05/2016		(19,179	)


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

August 31, 2016


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	USD	394,468		KRW	440,762,000	MS		10/05/2016	$	(441	)
	USD	34,245,266		KRW	38,327,302,000	SSB		10/05/2016		(94,799	)
	USD	9,924,085		MXN	187,242,000	BNP		10/05/2016		(1,440	)
	USD	87,591		MXN	1,658,000	MS		10/05/2016		(298	)
	USD	9,393		TRY	28,000	MS		10/05/2016		(6	)
	USD	2,173,513		TRY	6,489,000	SSB		10/05/2016		(4,755	)

										(1,824,877	)

					Net unrealized depreciation				$	(1,004,486	)

Counterparties:

BNP — BNP Paribas SA

JPM — JPMorgan Chase Bank N.A.

MS — Morgan Stanley and Co. International PLC

RBS — Royal Bank of Scotland PLC

SSB — State Street Bank London

Currency Abbreviations:

BRL — Brazilian Real

EUR — Euro

HKD — Hong Kong Dollar

INR — Indian Rupee

KRW — South Korean Won

MXN — Mexican Peso

RUB — New Russian Ruble

TRY — Turkish Lira

TWD — Taiwan New Dollar

USD — United States Dollar

ZAR — South African Rand

Schedule 3 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Investment companies	$	180,052,571	$	—		$	—	$	180,052,571
Money market funds		119,104		—			—		119,104

Total	$	180,171,675	$	—		$	—	$	180,171,675

Derivative financial instruments^a:
Assets:
Forward currency contracts	$	—	$	820,391		$	—	$	820,391
Liabilities:
Forward currency contracts		—		(1,824,877	)		—		(1,824,877	)

Total	$	—	$	(1,004,486	)	$	—	$	(1,004,486	)

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

See notes to financial statements.


18		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MIN VOL EM CURRENCY HEDGED ETF

August 31, 2016


Security	Shares		Value
INVESTMENT COMPANIES — 99.75%

EXCHANGE-TRADED FUNDS — 99.75%
iShares Edge MSCI Min Vol Emerging Markets ETF^a		115,665	$	6,161,475

				6,161,475

TOTAL INVESTMENT COMPANIES
(Cost: $5,835,753)				6,161,475

SHORT-TERM INVESTMENTS — 0.06%

MONEY MARKET FUNDS — 0.06%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^b,c		3,286		3,286

				3,286

TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,286)				3,286


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.81%
(Cost: $5,839,039)^d	$	6,164,761
Other Assets, Less Liabilities — 0.19%		12,031

NET ASSETS — 100.00%	$	6,176,792

^a	Affiliated issuer. See Schedule 1.

^b	Affiliated money market fund.

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

^d	The cost of investments for federal income tax purposes was $5,851,204. Net unrealized appreciation was $313,557, of which $313,557 represented gross unrealized appreciation on securities and $ — represented gross unrealized depreciation on securities.

Schedule 1 — Affiliates (Note 2)


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)
iShares Edge MSCI Min Vol Emerging Markets ETF		—		125,724		(10,059	)		115,665	$	6,161,475	$	106,334	$	(10,601	)

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2016 were as follows:


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	INR	19,410,000		USD	289,485	RBS		09/06/2016	$	160
	MXN	6,000		USD	318	HSBC		09/06/2016		1
	RUB	69,000		USD	1,033	MS		09/06/2016		22
	USD	65,233		HKD	506,000	MS		09/06/2016		4
	USD	1,105,517		HKD	8,571,000	RBS		09/06/2016		616
	USD	1,470		KRW	1,638,000	MS		09/06/2016		2
	USD	9,234		PLN	36,000	MS		09/06/2016		24
	USD	119,839		ZAR	1,717,000	BBP		09/06/2016		3,143
	USD	5,802		ZAR	81,000	MS		09/06/2016		297
	BRL	24,000		USD	7,347	JPM		10/05/2016		15
	KRW	31,821,000		USD	28,504	JPM		10/05/2016		7
	MXN	36,000		USD	1,906	HSBC		10/05/2016		3
	MXN	106,000		USD	5,601	MS		10/05/2016		18


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EM CURRENCY HEDGED ETF

August 31, 2016


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	PLN	31,000		USD	7,920	MS		10/05/2016	$	6
	USD	117,846		BRL	384,000	RBS		10/05/2016		60
	USD	1,173,685		HKD	9,101,000	CSFB		10/05/2016		100
	USD	65,254		HKD	506,000	MS		10/05/2016		5
	USD	3,775		INR	254,000	JPM		10/05/2016		1
	USD	464,268		MXN	8,666,000	RBC		10/05/2016		4,892
	USD	188,074		PLN	732,000	CITI		10/05/2016		912
	USD	31,720		RUB	2,076,000	JPM		10/05/2016		220
	USD	1,947,322		TWD	61,549,000	JPM		10/05/2016		4,589
	USD	122,626		ZAR	1,780,000	BBP		10/05/2016		2,334

										17,431

	BRL	384,000		USD	118,922	RBS		09/06/2016		(131	)
	HKD	9,063,000		USD	1,168,432	CSFB		09/06/2016		(106	)
	HKD	14,000		USD	1,805	MS		09/06/2016		—
	KRW	1,475,527,000		USD	1,322,749	RBS		09/06/2016		(51	)
	KRW	6,155,000		USD	5,525	SSB		09/06/2016		(8	)
	MXN	23,000		USD	1,223	MS		09/06/2016		(1	)
	MXN	8,666,000		USD	465,544	RBC		09/06/2016		(4,922	)
	PLN	732,000		USD	188,188	CITI		09/06/2016		(913	)
	PLN	4,000		USD	1,024	MS		09/06/2016		(1	)
	RUB	2,076,000		USD	31,949	JPM		09/06/2016		(228	)
	TWD	61,549,000		USD	1,943,755	JPM		09/06/2016		(4,519	)
	USD	4,584		BRL	15,000	MS		09/06/2016		(56	)
	USD	110,172		BRL	365,000	RBS		09/06/2016		(2,741	)
	USD	1,218		BRL	4,000	SSB		09/06/2016		(20	)
	USD	417		INR	28,000	MS		09/06/2016		(1	)
	USD	286,862		INR	19,346,000	RBS		09/06/2016		(1,828	)
	USD	536		INR	36,000	SSB		09/06/2016		(1	)
	USD	1,311,979		KRW	1,480,044,000	SCB		09/06/2016		(14,768	)
	USD	460,555		MXN	8,695,000	GS		09/06/2016		(1,609	)
	USD	177,949		PLN	700,000	MS		09/06/2016		(1,139	)
	USD	31,427		RUB	2,110,000	JPM		09/06/2016		(813	)
	USD	525		RUB	35,000	SSB		09/06/2016		(10	)
	USD	1,888,213		TWD	60,183,000	JPM		09/06/2016		(7,985	)
	USD	41,027		TWD	1,306,000	MS		09/06/2016		(122	)
	USD	1,888		TWD	60,000	SSB		09/06/2016		(2	)
	ZAR	1,780,000		USD	123,338	BBP		09/06/2016		(2,361	)
	ZAR	18,000		USD	1,288	MS		09/06/2016		(64	)
	INR	923,000		USD	13,718	JPM		10/05/2016		(5	)
	RUB	47,000		USD	714	JPM		10/05/2016		(1	)
	TWD	295,000		USD	9,313	BNP		10/05/2016		(1	)
	TWD	173,000		USD	5,469	JPM		10/05/2016		(8	)
	USD	288,025		INR	19,410,000	RBS		10/05/2016		(345	)
	USD	1,321,920		KRW	1,475,527,000	RBS		10/05/2016		(106	)
	USD	3,511		ZAR	52,000	MS		10/05/2016		(3	)
	ZAR	24,000		USD	1,623	RBS		10/05/2016		(2	)

										(44,871	)

					Net unrealized depreciation				$	(27,440	)

Counterparties:

BBP — Barclays Bank PLC Wholesale

BNP — BNP Paribas SA

CITI — Citibank N.A. London

CS — Credit Suisse

CSFB — Credit Suisse First Boston

GS — Goldman Sachs International


20		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EM CURRENCY HEDGED ETF

August 31, 2016

HSBC — HSBC Bank PLC

JPM — JPMorgan Chase Bank N.A.

MS — Morgan Stanley and Co. International PLC

RBC — Royal Bank of Canada

RBS — Royal Bank of Scotland PLC

SCB — Standard Chartered Bank, London

SSB — State Street Bank London

Currency abbreviations:

BRL — Brazilian Real

HKD — Hong Kong Dollar

INR — Indian Rupee

KRW — South Korean Won

MXN — Mexican Peso

PLN — Polish Zloty

RUB — New Russian Ruble

TWD — Taiwan New Dollar

USD — United States Dollar

ZAR — South African Rand

Schedule 3 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Investment companies	$	6,161,475	$	—		$	—	$	6,161,475
Money market funds		3,286		—			—		3,286

Total	$	6,164,761	$	—		$	—	$	6,164,761

Derivative financial instruments^a:
Assets:
Forward currency contracts	$	—	$	17,431		$	—	$	17,431
Liabilities:
Forward currency contracts		—		(44,871	)		—		(44,871	)

Total	$	—	$	(27,440	)	$	—	$	(27,440	)

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			21

Consolidated Schedule of Investments

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 98.82%

BRAZIL — 1.78%
Ambev SA		2,870,000	$	17,031,140
BRF SA		316,100		5,263,772
Cielo SA		3,649,497		37,907,911
Raia Drogasil SA		641,300		11,835,235
TOTVS SA		641,300		5,949,348

				77,987,406
CHILE — 3.40%
AES Gener SA		12,582,080		5,048,548
Aguas Andinas SA Series A		49,831,990		29,943,383
Banco de Chile		489,514,689		54,339,245
Banco de Credito e Inversiones		106,434		4,714,496
Cia. Cervecerias Unidas SA		656,989		6,963,863
Colbun SA		107,197,780		22,556,568
Empresa Nacional de Electricidad SA/Chile		14,335,240		10,730,103
Empresas COPEC SA		393,037		3,452,505
Endesa Americas SA		13,213,480		5,918,311
SACI Falabella		731,440		5,226,141

				148,893,163
CHINA — 21.72%
3SBio Inc.^a,b,c		7,380,000		7,535,321
AAC Technologies Holdings Inc.		2,870,000		32,726,528
Agricultural Bank of China Ltd. Class H		35,260,000		14,500,841
ANTA Sports Products Ltd.^c		4,787,000		12,959,938
Baidu Inc.^a		38,540		6,593,038
Bank of China Ltd. Class H		85,280,000		38,370,090
Bank of Communications Co. Ltd. Class H		5,600,000		4,324,492
Beijing Capital International Airport Co. Ltd. Class H		9,574,000		10,799,948
Beijing Enterprises Holdings Ltd.		361,000		2,071,035
Beijing Enterprises Water Group Ltd.^c		7,948,000		5,543,389
China CITIC Bank Corp. Ltd. Class H		10,660,000		7,036,349
China Communications Services Corp. Ltd. Class H		27,460,000		16,143,050
China Construction Bank Corp. Class H		46,250,000		34,582,783


Security	Shares		Value
China Everbright Bank Co. Ltd. Class H		25,112,000	$	11,881,399
China Gas Holdings Ltd.^c		1,444,000		2,453,595
China Huishan Dairy Holdings Co. Ltd.^c		81,180,000		31,187,856
China Medical System Holdings Ltd.^c		10,478,000		17,560,705
China Mengniu Dairy Co. Ltd.		11,319,000		21,480,089
China Merchants Holdings International Co. Ltd.^c		1,444,000		4,114,146
China Minsheng Banking Corp. Ltd. Class H		2,800,100		3,010,647
China Mobile Ltd.		4,510,000		55,700,906
China Petroleum & Chemical Corp. Class H		29,086,000		21,111,184
China Resources Beer Holdings Co. Ltd.		6,560,000		15,138,299
China Resources Gas Group Ltd.^c		6,322,000		21,190,834
China Resources Power Holdings Co. Ltd.		3,070,000		5,303,510
COSCO Pacific Ltd.		6,322,000		6,846,269
CSPC Pharmaceutical Group Ltd.		19,680,000		19,104,702
ENN Energy Holdings Ltd.		582,000		3,260,115
Guangdong Investment Ltd.		32,338,000		50,028,169
Haier Electronics Group Co. Ltd.		2,492,000		4,170,066
Hengan International Group Co. Ltd.		3,613,000		30,578,973
Industrial & Commercial Bank of China Ltd. Class H		41,820,000		26,579,766
Jiangsu Expressway Co. Ltd. Class H		25,902,000		36,398,208
Lenovo Group Ltd.^c		20,956,000		14,129,613
Luye Pharma Group Ltd.^a		4,510,000		2,866,445
Netease Inc.		90,200		19,119,694
New Oriental Education & Technology Group Inc. ADR		168,100		6,636,588
PetroChina Co. Ltd. Class H		4,696,000		3,136,014
Semiconductor Manufacturing International Corp.^a		168,920,000		18,510,587
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		2,888,000		1,869,051


22		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		10,660,000	$	17,716,920
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		3,568,100		9,797,986
Shenzhou International Group Holdings Ltd.^c		7,604,000		49,946,666
Sino Biopharmaceutical Ltd.		41,000,000		26,322,880
Sinopharm Group Co. Ltd. Class H		939,200		4,812,995
Sun Art Retail Group Ltd.^c		29,629,000		19,060,652
TAL Education Group Class A ADR^a		371,460		22,198,450
Tencent Holdings Ltd.		2,917,700		75,907,031
TravelSky Technology Ltd. Class H		8,200,000		17,844,587
Tsingtao Brewery Co. Ltd. Class H		1,900,000		6,368,647
Want Want China Holdings Ltd.^c		4,920,000		3,241,203
YY Inc. ADR^a		248,460		12,783,267
Zhejiang Expressway Co. Ltd. Class H		29,086,000		32,435,479
ZTE Corp. Class H		4,534,720		6,126,775

				951,117,770
COLOMBIA — 0.15%
Corp. Financiera Colombiana SA		507,488		6,693,660

				6,693,660
CZECH REPUBLIC — 0.47%
CEZ AS		128,272		2,235,216
Komercni Banka AS		344,400		11,636,621
O2 Czech Republic AS		714,220		6,668,710

				20,540,547
EGYPT — 0.44%
Commercial International Bank Egypt SAE		3,510,608		19,328,220

				19,328,220
HUNGARY — 0.89%
MOL Hungarian Oil & Gas PLC		232,880		14,517,183
Richter Gedeon Nyrt		1,188,180		24,340,393

				38,857,576
INDIA — 4.50%
Aurobindo Pharma Ltd.		508,400		6,003,705
Cipla Ltd.		369,000		3,156,914


Security	Shares		Value
Coal India Ltd.		546,940	$	2,723,675
Dabur India Ltd.		7,130,720		30,942,022
Divi’s Laboratories Ltd.		869,200		17,164,656
Dr. Reddy’s Laboratories Ltd.		176,300		8,134,098
HCL Technologies Ltd.		768,340		8,932,225
Hindustan Unilever Ltd.		562,520		7,702,836
Infosys Ltd.		1,434,180		22,182,998
Marico Ltd.		1,025,820		4,465,082
Sun Pharmaceuticals Industries Ltd.		1,599,000		18,519,701
Tata Consultancy Services Ltd.		824,920		30,933,576
Tech Mahindra Ltd.		1,114,380		7,800,826
Wipro Ltd.		3,845,800		28,233,352

				196,895,666
INDONESIA — 4.94%
Bank Central Asia Tbk PT		41,820,000		47,447,493
Gudang Garam Tbk PT		885,200		4,297,541
Hanjaya Mandala Sampoerna Tbk PT		24,354,000		7,307,118
Indofood CBP Sukses Makmur Tbk PT		10,063,000		7,567,163
Indofood Sukses Makmur Tbk PT		38,868,000		23,221,176
Jasa Marga Persero Tbk PT		5,904,000		2,163,094
Kalbe Farma Tbk PT		176,136,000		23,834,461
Telekomunikasi Indonesia Persero Tbk PT		166,788,000		52,934,601
Tower Bersama Infrastructure Tbk PT		12,989,800		5,459,339
Unilever Indonesia Tbk PT		12,218,000		42,046,868

				216,278,854
MALAYSIA — 7.52%
Axiata Group Bhd^c		14,842,000		20,091,870
Berjaya Sports Toto Bhd		2,952,098		2,438,547
DiGi.Com Bhd^c		4,018,000		4,973,582
Hartalega Holdings Bhd		1,968,000		2,125,469
Hong Leong Bank Bhd		10,578,000		34,116,691
IHH Healthcare Bhd		37,556,000		60,563,738
Malayan Banking Bhd^c		24,272,000		46,802,377
Maxis Bhd^c		22,140,000		34,284,108
Petronas Chemicals Group Bhd		7,790,000		12,850,475
Petronas Dagangan Bhd		641,300		3,700,264
Petronas Gas Bhd		3,893,300		21,312,109
Public Bank Bhd		12,300,080		60,052,172
Telekom Malaysia Bhd		8,610,000		14,521,613


SCHEDULES OF INVESTMENTS			23

Consolidated Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Tenaga Nasional Bhd		3,198,000	$	11,623,356

				329,456,371
MEXICO — 3.26%
America Movil SAB de CV		8,774,000		5,235,919
Arca Continental SAB de CV		4,626,600		28,732,427
Coca-Cola Femsa SAB de CV Series L		722,600		5,363,372
El Puerto de Liverpool SAB de CV Series C1		3,798,580		41,225,476
Fibra Uno Administracion SA de CV		1,698,200		3,272,424
Gruma SAB de CV Series B		791,765		10,500,918
Grupo Aeroportuario del Pacifico SAB de CV Series B		1,804,000		17,854,760
Grupo Aeroportuario del Sureste SAB de CV Series B		520,700		7,913,122
Grupo Bimbo SAB de CV		966,500		2,739,879
Wal-Mart de Mexico SAB de CV		8,843,500		20,115,960

				142,954,257
PERU — 1.20%
Cia. de Minas Buenaventura SA ADR^a		340,300		4,206,108
Credicorp Ltd.		308,320		48,307,578

				52,513,686
PHILIPPINES — 5.04%
Aboitiz Equity Ventures Inc.		19,401,200		31,228,458
Aboitiz Power Corp.		33,374,000		32,589,699
Bank of the Philippine Islands		16,039,204		36,315,828
BDO Unibank Inc.		10,701,000		26,250,119
International Container Terminal Services Inc.		1,518,490		2,737,486
Jollibee Foods Corp.		5,280,800		27,766,842
Metropolitan Bank & Trust Co.		7,314,401		13,107,683
PLDT Inc.		811,804		31,813,587
Robinsons Land Corp.		3,362,000		2,301,702
Security Bank Corp.		1,197,200		5,483,045
Universal Robina Corp.		2,738,800		10,991,643

				220,586,092
POLAND — 1.56%
Bank Pekao SA		476,420		15,986,840
Bank Zachodni WBK SA		97,378		7,991,701
Cyfrowy Polsat SA^a		636,664		4,004,227
Eurocash SA		185,091		2,034,825
Grupa Lotos SA^a		348,322		2,587,023


Security	Shares		Value
PGE Polska Grupa Energetyczna SA		6,634,620	$	19,574,703
Polski Koncern Naftowy ORLEN SA		502,701		8,354,038
Powszechny Zaklad Ubezpieczen SA		1,128,320		7,976,286

				68,509,643
QATAR — 2.88%
Commercial Bank QSC (The)		2,167,260		24,997,575
Doha Bank QSC		435,810		4,494,120
Masraf Al Rayan QSC		251,740		2,627,081
Qatar Electricity & Water Co. QSC		624,840		37,150,469
Qatar Gas Transport Co. Ltd.		496,100		3,406,017
Qatar Insurance Co. SAQ		522,340		12,479,871
Qatar Islamic Bank SAQ		741,280		22,555,872
Qatar National Bank SAQ		361,620		16,187,420
Vodafone Qatar QSC^a		658,460		2,151,860

				126,050,285
RUSSIA — 0.32%
Rosneft PJSC		906,120		4,781,424
Rosneft PJSC GDR^d		1,806,146		9,437,113

				14,218,537
SOUTH AFRICA — 1.93%
Bid Corp. Ltd.^a		434,600		7,974,773
Bidvest Group Ltd. (The)		449,043		4,638,701
Fortress Income Fund Ltd. Class A		8,316,111		9,285,871
New Europe Property Investments PLC		1,056,160		11,732,918
Pick n Pay Stores Ltd.		2,865,900		14,352,726
SPAR Group Ltd. (The)		868,909		11,338,102
Tiger Brands Ltd.		99,004		2,567,053
Vodacom Group Ltd.		2,177,100		22,627,464

				84,517,608
SOUTH KOREA — 10.77%
AmorePacific Corp.		47,560		16,464,717
AmorePacific Group		77,080		10,023,856
Cheil Worldwide Inc.		254,200		3,624,915
CJ CheilJedang Corp.		22,960		8,020,556
CJ Korea Express Corp.^a,c		26,240		4,730,260
Coway Co. Ltd.		89,380		6,685,464
Dongbu Insurance Co. Ltd.		566,024		34,266,027
E-MART Inc.		35,260		4,980,673


24		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Hyundai Marine & Fire Insurance Co. Ltd.		896,812	$	27,185,870
Kakao Corp.^c		49,200		3,587,408
Kangwon Land Inc.		902,000		31,913,812
KEPCO Plant Service & Engineering Co. Ltd.		39,360		2,273,349
Kia Motors Corp.		295,200		11,106,404
Korea Electric Power Corp.		414,100		21,540,628
KT Corp.		262,836		7,448,984
KT&G Corp.		421,726		44,252,863
LG Display Co. Ltd.		131,200		3,535,928
Lotte Confectionery Co. Ltd.		32,800		4,986,188
Lotte Shopping Co. Ltd.		23,780		4,329,453
NAVER Corp.		25,234		19,123,525
NCsoft Corp.		50,020		12,112,466
Orion Corp./Republic of Korea		7,380		4,917,794
S-1 Corp.		360,800		33,329,507
Samsung Electronics Co. Ltd.		16,400		23,827,803
Samsung Fire & Marine Insurance Co. Ltd.		111,520		27,004,843
Samsung Life Insurance Co. Ltd.		346,860		32,041,776
SK Hynix Inc.		348,500		11,392,668
SK Telecom Co. Ltd.		163,180		31,977,426
Yuhan Corp.		95,940		24,823,937

				471,509,100
TAIWAN — 17.02%
Advanced Semiconductor Engineering Inc.		3,170,000		3,896,251
Advantech Co. Ltd.		3,161,481		25,855,386
Asia Cement Corp.		22,018,125		19,672,361
Asustek Computer Inc.		1,915,000		16,204,519
Chicony Electronics Co. Ltd.		11,379,801		28,153,177
China Airlines Ltd.		44,280,828		12,852,821
Chunghwa Telecom Co. Ltd.		18,040,000		64,813,350
Delta Electronics Inc.		3,519,000		18,298,955
EVA Airways Corp.		7,590,643		3,516,568
Far EasTone Telecommunications Co. Ltd.		22,673,000		52,805,178
First Financial Holding Co. Ltd.		68,515,627		35,196,569
Formosa Chemicals & Fibre Corp.		820,300		2,130,213
Formosa Petrochemical Corp.		8,039,000		23,511,108
Formosa Plastics Corp.		6,663,840		16,444,073
Formosa Taffeta Co. Ltd.		11,321,000		10,935,493


Security	Shares		Value
Foxconn Technology Co. Ltd.		5,600,328	$	15,708,205
Hon Hai Precision Industry Co. Ltd.		13,943,750		38,670,995
Hua Nan Financial Holdings Co. Ltd.		60,087,033		30,961,472
Lite-On Technology Corp.		26,950,752		40,769,483
Novatek Microelectronics Corp.		722,000		2,468,823
OBI Pharma Inc.^a		72,000		900,837
Powertech Technology Inc.		3,161,000		8,248,556
President Chain Store Corp.		3,169,000		25,217,771
Quanta Computer Inc.		4,100,000		7,584,816
Standard Foods Corp.		1,997,497		4,929,138
Synnex Technology International Corp.		18,081,000		19,089,315
Taiwan Business Bank^a		18,040,921		4,821,450
Taiwan Cement Corp.		2,348,000		2,682,435
Taiwan Cooperative Financial Holding Co. Ltd.		115,760,321		50,892,878
Taiwan Mobile Co. Ltd.		17,381,000		61,076,299
Taiwan Semiconductor Manufacturing Co. Ltd.		13,120,000		72,772,884
Transcend Information Inc.		4,100,000		11,823,009
United Microelectronics Corp.		10,660,000		3,863,475
WPG Holdings Ltd.		7,226,000		8,596,823

				745,364,686
THAILAND — 6.42%
Advanced Info Service PCL NVDR		2,268,000		10,843,524
Airports of Thailand PCL NVDR		1,779,500		20,665,858
Bangkok Dusit Medical Services PCL NVDR		46,447,200		31,532,383
Bangkok Expressway & Metro PCL		85,747,800		19,074,058
BTS Group Holdings PCL NVDR		131,958,500		34,499,702
Bumrungrad Hospital PCL NVDR		3,649,400		17,922,549
Central Pattana PCL NVDR		1,616,900		2,814,295
CP ALL PCL NVDR		18,589,200		33,429,466
Delta Electronics Thailand PCL NVDR^c		11,363,000		24,291,488
Electricity Generating PCL NVDR		2,999,700		17,114,898
Energy Absolute PCL NVDR^c		6,984,100		5,094,496
Glow Energy PCL NVDR		4,380,300		10,123,326


SCHEDULES OF INVESTMENTS			25

Consolidated Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Home Product Center PCL NVDR		30,449,000	$	9,588,020
Kasikornbank PCL NVDR^c		1,809,000		10,321,316
Minor International PCL NVDR		3,893,300		4,639,500
PTT PCL NVDR		1,302,000		13,127,009
Robinson Department Store PCL NVDR		3,975,300		7,349,863
Siam Cement PCL (The) Foreign		153,500		2,350,248
Thai Oil PCL NVDR		3,000,400		6,132,464

				280,914,463
UNITED ARAB EMIRATES — 2.61%
Abu Dhabi Commercial Bank PJSC		3,045,480		5,323,019
DP World Ltd.		1,298,880		24,029,280
Dubai Islamic Bank PJSC		4,723,200		7,020,955
Emirates Telecommunications Group Co. PJSC		4,123,780		22,173,275
First Gulf Bank PJSC		7,765,400		24,735,286
National Bank of Abu Dhabi PJSC		12,509,100		31,059,049

				114,340,864

TOTAL COMMON STOCKS
(Cost: $4,145,157,469)				4,327,528,454

PREFERRED STOCKS — 0.68%

COLOMBIA — 0.44%
Grupo de Inversiones Suramericana SA		1,483,713		19,188,109

				19,188,109
RUSSIA — 0.15%
Transneft PJSC		2,799		6,635,270

				6,635,270
SOUTH KOREA — 0.09%
Samsung Electronics Co. Ltd.		3,161		3,753,510

				3,753,510

TOTAL PREFERRED STOCKS
(Cost: $30,400,479)				29,576,889


Security	Shares		Value
SHORT-TERM INVESTMENTS — 2.75%

MONEY MARKET FUNDS — 2.75%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^e,f,g		110,089,754	$	110,089,754
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^e,f		10,381,725		10,381,725

				120,471,479

TOTAL SHORT-TERM INVESTMENTS
(Cost: $120,471,479)				120,471,479

TOTAL INVESTMENTS IN SECURITIES — 102.25%
(Cost: $4,296,029,427)^h				4,477,576,822
Other Assets, Less Liabilities — (2.25)%				(98,535,955	)

NET ASSETS — 100.00%			$	4,379,040,867

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^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	All or a portion of this security represents a security on loan. 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 money market fund.

^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.

^h	The cost of investments for federal income tax purposes was $4,370,948,799. Net unrealized appreciation was $106,628,023, of which $395,466,839 represented gross unrealized appreciation on securities and $288,838,816 represented gross unrealized depreciation on securities.


26		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2016

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	4,327,528,454	$	—	$	—	$	4,327,528,454
Preferred stocks		29,576,889		—		—		29,576,889
Money market funds		120,471,479		—		—		120,471,479

Total	$	4,477,576,822	$	—	$	—	$	4,477,576,822

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 95.59%

BRAZIL — 4.55%
AES Tiete Energia SA		1,364,400	$	7,046,039
Ambev SA		35,819,815		212,561,769
Banco Bradesco SA		6,393,808		57,535,968
Banco do Brasil SA		6,557,374		47,064,336
Banco Santander Brasil SA Units		3,225,400		22,621,087
BB Seguridade Participacoes SA		5,312,800		47,890,445
BM&FBovespa SA-Bolsa de Valores Mercadorias e Futuros		13,176,900		72,978,625
BR Malls Participacoes SA^a		4,375,320		16,695,977
BRF SA		4,630,485		77,107,928
CCR SA		6,728,800		35,497,968
CETIP SA – Mercados Organizados		1,699,729		22,969,311
Cia. de Saneamento Basico do Estado de Sao Paulo		2,629,124		23,894,475
Cia. Siderurgica Nacional SA^a		4,765,428		12,673,227
Cielo SA		7,774,697		80,757,027
Cosan SA Industria e Comercio		943,500		10,976,087
CPFL Energia SA		1,591,967		11,445,740
Duratex SA		2,382,955		6,403,574
EDP – Energias do Brasil SA		2,208,600		9,766,522
Embraer SA		5,050,800		22,381,707
Engie Brasil Energia SA		1,221,200		14,727,812
Equatorial Energia SA		1,514,700		23,686,802
Fibria Celulose SA		1,882,261		12,811,109
Hypermarcas SA		2,647,400		21,367,166
JBS SA		5,443,765		21,042,446
Klabin SA Units		4,206,500		22,113,458
Kroton Educacional SA		10,530,780		44,939,317
Localiza Rent A Car SA		1,199,289		14,949,391
Lojas Americanas SA		1,235,750		5,338,434
Lojas Renner SA		4,905,300		38,877,741
M. Dias Branco SA		254,700		9,530,181
Multiplan Empreendimentos Imobiliarios SA		615,300		11,094,732
Natura Cosmeticos SA		1,314,200		12,663,267
Odontoprev SA		2,085,500		8,222,563
Petroleo Brasileiro SA^a		22,949,274		104,605,201
Porto Seguro SA		869,300		7,405,905
Qualicorp SA		1,687,700		11,836,550


Security	Shares		Value
Raia Drogasil SA		1,758,800	$	32,458,774
Rumo Logistica Operadora Multimodal SA^a		6,131,000		13,650,566
Sul America SA		1,354,965		6,842,284
TIM Participacoes SA		6,441,476		16,552,868
TOTVS SA		959,000		8,896,654
Transmissora Alianca de Energia Eletrica SA Units		654,900		4,698,398
Ultrapar Participacoes SA		2,747,300		63,232,587
Vale SA		9,844,748		51,570,917
WEG SA		4,307,120		22,016,418

				1,403,399,353
CHILE — 1.06%
AES Gener SA		19,963,521		8,010,345
Aguas Andinas SA Series A		20,171,631		12,120,866
Banco de Chile		188,179,239		20,889,093
Banco de Credito e Inversiones		281,941		12,488,581
Banco Santander Chile		509,360,438		26,853,067
Cencosud SA		10,311,435		30,342,850
Cia. Cervecerias Unidas SA		1,111,672		11,783,350
Colbun SA		60,448,059		12,719,487
Empresa Nacional de Electricidad SA/Chile		25,207,577		18,868,180
Empresa Nacional de Telecomunicaciones SA^a		1,089,602		10,327,529
Empresas CMPC SA		9,463,232		18,868,476
Empresas COPEC SA		3,481,793		30,584,675
Endesa Americas SA		25,205,029		11,289,319
Enersis Americas SA		150,992,168		25,088,258
Enersis Chile SA		150,158,414		16,111,152
Itau CorpBanca		1,211,107,021		10,450,543
LATAM Airlines Group SA^a		2,305,593		18,385,175
SACI Falabella		4,511,721		32,236,263

				327,417,209
CHINA — 26.62%
3SBio Inc.^a,b,c		7,580,500		7,740,041
58.com Inc. ADR^a,c		591,747		26,924,488
AAC Technologies Holdings Inc.		5,637,000		64,278,551
Agricultural Bank of China Ltd. Class H		187,959,000		77,299,025
Air China Ltd. Class H		13,854,000		10,251,969
Alibaba Group Holding Ltd. ADR^a,c		8,537,179		829,728,427


28		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Alibaba Health Information Technology Ltd.^a		23,800,000	$	14,819,867
Alibaba Pictures Group Ltd.^a,c		85,460,000		17,628,001
Aluminum Corp. of China Ltd. Class H^a,c		30,172,000		11,319,241
Anhui Conch Cement Co. Ltd. Class H		9,381,500		26,366,287
ANTA Sports Products Ltd.^c		7,663,402		20,747,277
AviChina Industry & Technology Co. Ltd. Class H		16,029,000		11,778,812
Baidu Inc.^a		2,067,091		353,617,257
Bank of China Ltd. Class H		605,663,000		272,506,381
Bank of Communications Co. Ltd. Class H		67,198,600		51,892,818
Beijing Capital International Airport Co. Ltd. Class H		11,630,000		13,119,219
Beijing Enterprises Holdings Ltd.		3,882,500		22,273,665
Beijing Enterprises Water Group Ltd.^c		33,050,000		23,050,956
Belle International Holdings Ltd.		48,029,000		31,207,163
Brilliance China Automotive Holdings Ltd.		22,998,000		26,298,677
Byd Co. Ltd. Class H^a,c		4,890,500		34,046,089
CGN Power Co. Ltd. Class H^b		79,972,000		23,197,473
China Cinda Asset Management Co. Ltd. Class H		66,402,000		22,514,231
China CITIC Bank Corp. Ltd. Class H		68,651,800		45,315,012
China Coal Energy Co. Ltd. Class H^a,c		16,966,000		8,114,721
China Communications Construction Co. Ltd. Class H		33,763,000		36,824,054
China Communications Services Corp. Ltd. Class H		18,300,000		10,758,114
China Conch Venture Holdings Ltd.		10,362,000		19,931,162
China Construction Bank Corp. Class H		641,065,760		479,347,846
China COSCO Holdings Co. Ltd. Class H^a,c		19,955,500		6,637,469
China Everbright Bank Co. Ltd. Class H		24,663,000		11,668,961


Security	Shares		Value
China Everbright International Ltd.^c		18,881,000	$	24,146,649
China Everbright Ltd.		6,916,000		14,354,930
China Evergrande Group^c		31,136,388		21,515,588
China Galaxy Securities Co. Ltd. Class H		22,605,500		21,186,964
China Gas Holdings Ltd.^c		13,076,000		22,218,285
China Huishan Dairy Holdings Co. Ltd.^c		31,988,000		12,289,198
China Jinmao Holdings Group Ltd.		27,964,000		8,724,386
China Life Insurance Co. Ltd. Class H		56,673,000		135,458,461
China Longyuan Power Group Corp. Ltd.		24,302,000		20,427,246
China Medical System Holdings Ltd.^c		9,413,000		15,775,808
China Mengniu Dairy Co. Ltd.		20,958,000		39,772,039
China Merchants Bank Co. Ltd. Class H		29,856,967		72,672,129
China Merchants Holdings International Co. Ltd.^c		9,642,000		27,471,325
China Minsheng Banking Corp. Ltd. Class H		45,526,540		48,949,798
China Mobile Ltd.		46,760,500		577,517,117
China National Building Material Co. Ltd. Class H		21,392,000		9,652,496
China Oilfield Services Ltd. Class H		13,374,000		10,500,230
China Overseas Land & Investment Ltd.		30,092,960		99,511,319
China Pacific Insurance Group Co. Ltd. Class H		20,123,600		70,825,317
China Petroleum & Chemical Corp. Class H		194,798,800		141,388,757
China Power International Development Ltd.		25,005,000		9,445,277
China Railway Construction Corp. Ltd. Class H		15,038,500		18,398,861
China Railway Group Ltd. Class H		30,476,000		22,591,549
China Resources Beer Holdings Co. Ltd.		12,300,000		28,384,310
China Resources Gas Group Ltd.^c		6,646,000		22,276,856


SCHEDULES OF INVESTMENTS			29

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
China Resources Land Ltd.		21,079,333	$	59,378,403
China Resources Power Holdings Co. Ltd.		14,346,999		24,784,837
China Shenhua Energy Co. Ltd. Class H		25,927,500		46,595,462
China Shipping Container Lines Co. Ltd. Class H^a,c		28,856,000		6,026,586
China Southern Airlines Co. Ltd. Class H		13,724,000		8,138,769
China State Construction International Holdings Ltd.		13,488,000		16,101,960
China Taiping Insurance Holdings Co. Ltd.^a		12,394,460		24,863,222
China Telecom Corp. Ltd. Class H		105,732,000		54,660,176
China Unicom Hong Kong Ltd.		45,522,000		51,585,829
China Vanke Co. Ltd. Class H		9,994,731		25,641,557
Chongqing Changan Automobile Co. Ltd. Class B		6,579,775		10,009,520
Chongqing Rural Commercial Bank Co. Ltd. Class H		19,495,000		11,309,827
CITIC Ltd.^c		33,002,000		51,991,419
CITIC Securities Co. Ltd. Class H		16,543,500		36,982,536
CNOOC Ltd.		135,941,000		167,018,111
COSCO Pacific Ltd.		12,522,000		13,560,422
Country Garden Holdings Co. Ltd.		42,637,939		21,657,715
CRRC Corp. Ltd. Class H		31,475,300		28,161,096
CSPC Pharmaceutical Group Ltd.		31,412,000		30,493,745
Ctrip.com International Ltd.^a,c		2,615,679		123,852,401
Dalian Wanda Commercial Properties Co. Ltd. Class H^b		4,595,300		31,220,848
Dongfeng Motor Group Co. Ltd. Class H		20,470,000		21,877,242
ENN Energy Holdings Ltd.		5,710,000		31,984,981
Far East Horizon Ltd.		14,495,000		13,548,039
Fosun International Ltd.		19,487,500		26,982,402
GCL-Poly Energy Holdings Ltd.^c		100,052,000		14,188,571
Geely Automobile Holdings Ltd.^c		40,290,000		32,307,835
GF Securities Co. Ltd. Class H		10,448,400		22,764,426
GOME Electrical Appliances Holding Ltd.^c		92,765,200		11,002,544


Security	Shares		Value
Great Wall Motor Co. Ltd. Class H		23,563,000	$	22,874,192
Guangdong Investment Ltd.		21,358,110		33,041,844
Guangzhou Automobile Group Co. Ltd. Class H		16,112,742		22,185,075
Guangzhou R&F Properties Co. Ltd. Class H		7,558,800		12,765,692
Haier Electronics Group Co. Ltd.		9,600,000		16,064,460
Haitian International Holdings Ltd.		4,762,000		9,589,382
Haitong Securities Co. Ltd. Class H		23,344,400		40,629,052
Hengan International Group Co. Ltd.		5,507,500		46,613,256
Huadian Power International Corp. Ltd. Class H		12,116,000		5,420,121
Huaneng Power International Inc. Class H		31,878,000		19,397,835
Huaneng Renewables Corp. Ltd. Class H		30,700,000		11,398,588
Huatai Securities Co. Ltd. Class H^b		11,235,200		23,783,412
Industrial & Commercial Bank of China Ltd. Class H		562,036,085		357,216,347
JD.com Inc. ADR^a,c		5,229,105		132,871,558
Jiangsu Expressway Co. Ltd. Class H		9,134,000		12,835,350
Jiangxi Copper Co. Ltd. Class H		9,628,000		11,121,524
Kingsoft Corp. Ltd.^c		5,985,000		12,237,355
Kunlun Energy Co. Ltd.		24,218,000		17,827,670
Lenovo Group Ltd.^c		54,812,000		36,957,071
Longfor Properties Co. Ltd.		11,304,500		18,217,198
Luye Pharma Group Ltd.^a		9,958,000		6,329,060
Netease Inc.		603,731		127,972,860
New China Life Insurance Co. Ltd. Class H		5,951,500		24,207,281
New Oriental Education & Technology Group Inc. ADR		1,019,819		40,262,454
Nine Dragons Paper Holdings Ltd.		12,413,000		9,969,767
People’s Insurance Co. Group of China Ltd. (The) Class H		52,899,000		21,277,581
PetroChina Co. Ltd. Class H		160,990,000		107,510,001


30		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
PICC Property & Casualty Co. Ltd. Class H		35,034,128	$	57,902,797
Ping An Insurance Group Co. of China Ltd. Class H		39,754,500		205,774,735
Qunar Cayman Islands Ltd. ADR^a,c		272,396		8,095,609
Semiconductor Manufacturing International Corp.^a		210,624,000		23,080,594
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		13,508,000		8,742,084
Shanghai Electric Group Co. Ltd. Class H^a,c		21,024,000		9,350,927
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		3,051,000		8,850,034
Shanghai Industrial Holdings Ltd.		3,798,000		9,890,689
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		6,772,348		11,255,642
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		5,339,700		14,662,792
Shenzhou International Group Holdings Ltd.^c		4,229,000		27,778,071
Shimao Property Holdings Ltd.		9,328,500		12,988,404
Shui On Land Ltd.		29,527,600		8,374,734
Sino Biopharmaceutical Ltd.		34,102,000		21,894,216
Sino-Ocean Group Holding Ltd.		23,479,000		10,896,883
Sinopec Engineering Group Co. Ltd. Class H		9,391,000		7,784,720
Sinopec Shanghai Petrochemical Co. Ltd. Class H		26,755,000		13,831,508
Sinopharm Group Co. Ltd. Class H		9,131,600		46,795,514
Sinotrans Ltd. Class H		14,811,000		7,332,225
SOHO China Ltd.^c		16,083,500		9,600,233
SouFun Holdings Ltd. ADR^a,c		2,219,835		9,989,257
Sun Art Retail Group Ltd.^c		18,309,500		11,778,697
Sunac China Holdings Ltd.^c		14,040,000		9,756,096
TAL Education Group Class A ADR^a,c		329,405		19,685,243
Tencent Holdings Ltd.		43,015,500		1,119,093,422


Security	Shares		Value
Tingyi Cayman Islands Holding Corp.^c		14,964,000	$	13,851,358
TravelSky Technology Ltd. Class H		7,157,000		15,574,843
Tsingtao Brewery Co. Ltd. Class H		2,554,000		8,560,802
Vipshop Holdings Ltd. ADR^a,c		3,069,926		43,470,152
Want Want China Holdings Ltd.^c		43,756,000		28,825,624
Weichai Power Co. Ltd. Class H		7,200,400		9,087,816
Yanzhou Coal Mining Co. Ltd. Class H		13,978,800		8,001,531
YY Inc. ADR^a,c		226,718		11,664,641
Zhejiang Expressway Co. Ltd. Class H		10,456,000		11,660,090
Zhuzhou CRRC Times Electric Co. Ltd. Class H		4,137,000		22,000,355
Zijin Mining Group Co. Ltd. Class H		43,924,000		14,609,717
ZTE Corp. Class H		5,737,600		7,751,964

				8,216,168,635
COLOMBIA — 0.29%
Cementos Argos SA		3,397,543		13,572,689
Corp. Financiera Colombiana SA		772,968		10,195,285
Ecopetrol SA^a		36,866,903		16,475,155
Grupo Argos SA/Colombia		2,261,820		15,100,241
Grupo de Inversiones Suramericana SA		1,941,739		25,400,770
Interconexion Electrica SA ESP		2,881,714		9,658,395

				90,402,535
CZECH REPUBLIC — 0.15%
CEZ AS		1,241,044		21,625,929
Komercni Banka AS		600,403		20,286,476
O2 Czech Republic AS		433,964		4,051,945

				45,964,350
EGYPT — 0.15%
Commercial International Bank Egypt SAE		6,271,193		34,527,066
Global Telecom Holding SAE^a		15,883,295		7,244,111
Talaat Moustafa Group		5,660,437		3,658,907

				45,430,084
GREECE — 0.33%
Alpha Bank AE^a,c		10,521,440		20,155,387
Eurobank Ergasias SA^a,c		14,235,513		8,482,315


SCHEDULES OF INVESTMENTS			31

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
FF Group^c		250,117	$	6,044,918
Hellenic Telecommunications Organization SA		1,870,857		17,711,161
JUMBO SA		767,054		9,354,650
National Bank of Greece SA^a		41,734,371		9,807,624
OPAP SA		1,710,900		14,329,465
Piraeus Bank SA^a		49,813,173		8,099,992
Titan Cement Co. SA		342,003		7,922,838

				101,908,350
HUNGARY — 0.28%
MOL Hungarian Oil & Gas PLC		273,182		17,029,514
OTP Bank PLC		1,830,042		47,738,686
Richter Gedeon Nyrt		1,051,011		21,530,425

				86,298,625
INDIA — 8.62%
ACC Ltd.		325,183		8,302,193
Adani Ports & Special Economic Zone Ltd.		6,295,099		24,716,982
Ambuja Cements Ltd.		5,285,575		21,937,070
Apollo Hospitals Enterprise Ltd.		609,698		12,290,008
Ashok Leyland Ltd.		8,883,188		11,613,007
Asian Paints Ltd.		2,226,377		38,493,683
Aurobindo Pharma Ltd.		2,046,564		24,167,913
Axis Bank Ltd.		12,289,956		109,530,540
Bajaj Auto Ltd.		644,896		28,681,839
Bajaj Finance Ltd.		125,499		20,634,344
Bharat Forge Ltd.		805,220		10,223,661
Bharat Heavy Electricals Ltd.		4,470,352		9,285,142
Bharat Petroleum Corp. Ltd.		1,545,453		13,906,077
Bharti Airtel Ltd.		7,729,864		38,279,967
Bharti Infratel Ltd.		4,172,647		21,853,904
Bosch Ltd.		58,084		20,961,065
Cadila Healthcare Ltd.		1,545,463		8,790,008
Cairn India Ltd.		3,354,463		9,975,232
Cipla Ltd.		2,680,529		22,932,792
Coal India Ltd.		5,265,955		26,223,622
Container Corp. of India Ltd.		269,947		5,621,242
Dabur India Ltd.		4,024,348		17,462,678
Divi’s Laboratories Ltd.		647,992		12,796,318
Dr. Reddy’s Laboratories Ltd.		899,976		41,522,933
Eicher Motors Ltd.		94,031		31,944,073
GAIL (India) Ltd.		2,511,348		14,396,095
GlaxoSmithKline Consumer Healthcare Ltd.		70,259		6,579,346
Glenmark Pharmaceuticals Ltd.		1,055,438		13,255,620


Security	Shares		Value
Godrej Consumer Products Ltd.		921,188	$	20,862,563
Havells India Ltd.		1,858,468		11,588,715
HCL Technologies Ltd.		4,302,855		50,022,215
Hero Motocorp Ltd.		381,254		20,160,577
Hindalco Industries Ltd.		8,550,928		20,333,512
Hindustan Unilever Ltd.		4,950,852		67,794,219
Housing Development Finance Corp. Ltd.		11,512,496		241,604,263
ICICI Bank Ltd.		8,555,860		32,961,205
Idea Cellular Ltd.		9,478,279		13,225,999
Indiabulls Housing Finance Ltd.		2,274,129		27,817,926
Infosys Ltd.		14,057,639		217,434,752
ITC Ltd.		25,846,533		100,364,205
JSW Steel Ltd.		658,665		17,242,133
Larsen & Toubro Ltd.		2,410,785		54,463,150
LIC Housing Finance Ltd.		2,305,151		19,724,754
Lupin Ltd.		1,692,755		37,464,558
Mahindra & Mahindra Financial Services Ltd.		2,188,913		11,644,024
Mahindra & Mahindra Ltd.		2,850,348		61,143,944
Marico Ltd.		3,422,300		14,896,229
Maruti Suzuki India Ltd.		807,106		60,905,349
Motherson Sumi Systems Ltd.		2,459,674		11,846,616
Nestle India Ltd.		175,975		17,146,986
NTPC Ltd.		12,507,269		29,741,415
Oil & Natural Gas Corp. Ltd.		6,423,500		22,664,970
Piramal Enterprises Ltd.		596,346		16,371,688
Power Finance Corp. Ltd.		4,755,771		8,784,364
Reliance Industries Ltd.		9,869,698		156,217,409
Shree Cement Ltd.		63,429		16,266,692
Shriram Transport Finance Co. Ltd.		1,144,034		21,132,257
Siemens Ltd.		560,654		10,599,014
State Bank of India		11,967,566		45,121,852
Sun Pharmaceuticals Industries Ltd.		7,350,585		85,134,855
Tata Consultancy Services Ltd.		3,620,682		135,771,520
Tata Motors Ltd.		12,145,516		97,515,962
Tata Motors Ltd. Class A		2,868,302		14,714,128
Tata Power Co. Ltd.		8,882,600		10,411,887
Tata Steel Ltd.		2,280,028		12,600,244
Tech Mahindra Ltd.		1,799,100		12,593,969
Titan Co. Ltd.		2,303,963		14,397,619
Ultratech Cement Ltd.		276,416		16,628,298
United Spirits Ltd.^a		497,000		17,165,684
UPL Ltd.		2,688,442		25,649,993


32		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Vedanta Ltd.		7,829,695	$	19,875,290
Wipro Ltd.		4,713,728		34,605,112
Yes Bank Ltd.		2,205,873		44,996,911
Zee Entertainment Enterprises Ltd.		4,485,140		36,131,597

				2,662,117,978
INDONESIA — 2.69%
Adaro Energy Tbk PT		110,559,800		9,584,905
AKR Corporindo Tbk PT		12,720,300		6,400,905
Astra International Tbk PT		153,685,300		94,424,063
Bank Central Asia Tbk PT		94,144,200		106,812,681
Bank Danamon Indonesia Tbk PT		27,978,216		8,605,437
Bank Mandiri Persero Tbk PT		71,589,100		60,579,544
Bank Negara Indonesia Persero Tbk PT		57,567,576		25,496,382
Bank Rakyat Indonesia Persero Tbk PT		84,736,322		74,419,763
Bumi Serpong Damai Tbk PT		58,630,300		9,502,838
Charoen Pokphand Indonesia Tbk PT		57,326,045		16,119,574
Global Mediacom Tbk PT		51,887,600		3,481,339
Gudang Garam Tbk PT		3,732,500		18,120,844
Hanjaya Mandala Sampoerna Tbk PT		69,961,400		20,991,057
Indocement Tunggal Prakarsa Tbk PT		11,188,900		14,929,780
Indofood CBP Sukses Makmur Tbk PT		16,763,600		12,605,873
Indofood Sukses Makmur Tbk PT		34,142,800		20,398,167
Jasa Marga Persero Tbk PT		15,365,400		5,629,540
Kalbe Farma Tbk PT		162,738,515		22,021,533
Lippo Karawaci Tbk PT		143,817,500		11,926,065
Matahari Department Store Tbk PT		17,689,000		26,670,185
Media Nusantara Citra Tbk PT		37,180,000		5,381,500
Perusahaan Gas Negara Persero Tbk PT		83,571,500		19,026,455
Semen Indonesia Persero Tbk PT		22,513,500		16,802,386
Summarecon Agung Tbk PT		75,679,700		9,984,129
Surya Citra Media Tbk PT		43,067,300		9,837,461
Telekomunikasi Indonesia Persero Tbk PT		384,785,800		122,121,992


Security	Shares		Value
Tower Bersama Infrastructure Tbk PT		16,577,900	$	6,967,342
Unilever Indonesia Tbk PT		11,666,700		40,149,631
United Tractors Tbk PT		12,971,053		18,334,508
Waskita Karya Persero Tbk PT		34,642,800		7,286,348
XL Axiata Tbk PT^a		27,401,300		5,866,543

				830,478,770
MALAYSIA — 2.77%
AirAsia Bhd^c		9,674,100		7,156,282
Alliance Financial Group Bhd		8,079,500		7,869,319
AMMB Holdings Bhd		14,846,375		16,070,913
Astro Malaysia Holdings Bhd		10,664,600		7,757,507
Axiata Group Bhd^c		20,278,400		27,451,218
Berjaya Sports Toto Bhd		7,854,892		6,488,445
British American Tobacco Malaysia Bhd		1,036,300		12,577,163
CIMB Group Holdings Bhd		23,158,400		27,409,770
Dialog Group Bhd		24,476,812		9,294,610
DiGi.Com Bhd^c		26,172,300		32,396,732
Felda Global Ventures Holdings Bhd^c		9,138,600		5,115,182
Gamuda Bhd^c		13,246,700		15,939,809
Genting Bhd^c		17,108,200		32,904,441
Genting Malaysia Bhd		22,914,800		25,087,341
Genting Plantations Bhd		2,262,800		5,914,358
HAP Seng Consolidated Bhd		3,997,400		7,668,542
Hartalega Holdings Bhd^c		4,558,200		4,922,923
Hong Leong Bank Bhd^c		4,402,100		14,197,872
Hong Leong Financial Group Bhd		1,449,200		5,746,057
IHH Healthcare Bhd		21,199,300		34,186,518
IJM Corp. Bhd		22,313,140		18,871,673
IOI Corp. Bhd^c		18,069,220		19,693,244
IOI Properties Group Bhd^c		14,609,785		9,078,205
Kuala Lumpur Kepong Bhd		3,215,400		18,695,385
Lafarge Malaysia Bhd		3,008,900		5,972,542
Malayan Banking Bhd^c		25,768,000		49,687,032
Malaysia Airports Holdings Bhd^c		5,836,800		9,067,153
Maxis Bhd^c		14,220,700		22,020,958
MISC Bhd		8,306,200		15,483,879
Petronas Chemicals Group Bhd^c		18,592,200		30,669,910
Petronas Dagangan Bhd		1,608,600		9,281,529
Petronas Gas Bhd		5,237,800		28,671,967
PPB Group Bhd		3,787,400		15,016,987


SCHEDULES OF INVESTMENTS			33

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Public Bank Bhd^c		20,652,930	$	100,832,946
RHB Bank Bhd		5,422,725		6,685,643
RHB Bank Bhd New		3,214,200		8
Sapurakencana Petroleum Bhd^c		27,017,800		10,525,983
Sime Darby Bhd		19,552,773		38,040,039
Telekom Malaysia Bhd^c		8,419,300		14,199,978
Tenaga Nasional Bhd		25,672,150		93,307,235
UMW Holdings Bhd^c		3,877,700		5,325,802
Westports Holdings Bhd		6,753,900		7,410,888
YTL Corp. Bhd^c		33,653,362		13,940,981
YTL Power International Bhd		19,327,143		7,100,837

				855,735,806
MEXICO — 3.82%
Alfa SAB de CV		21,200,800		34,370,717
America Movil SAB de CV		241,197,000		143,935,249
Arca Continental SAB de CV		3,255,536		20,217,752
Cemex SAB de CV CPO^a		106,725,905		88,067,431
Coca-Cola Femsa SAB de CV Series L		3,804,893		28,241,153
El Puerto de Liverpool SAB de CV Series C1		1,416,040		15,368,091
Fibra Uno Administracion SA de CV		19,133,700		36,870,558
Fomento Economico Mexicano SAB de CV		13,988,900		127,687,751
Gentera SAB de CV		7,944,400		15,350,928
Gruma SAB de CV Series B		1,654,525		21,943,419
Grupo Aeroportuario del Pacifico SAB de CV Series B		2,733,900		27,058,275
Grupo Aeroportuario del Sureste SAB de CV Series B		1,591,030		24,179,018
Grupo Bimbo SAB de CV		12,720,400		36,060,375
Grupo Carso SAB de CV Series A1		4,287,241		17,409,124
Grupo Comercial Chedraui SA de CV^c		2,319,600		5,581,177
Grupo Financiero Banorte SAB de CV		19,108,656		102,496,831
Grupo Financiero Inbursa SAB de CV Series O		18,009,500		31,306,345
Grupo Financiero Santander Mexico SAB de CV Series B		14,159,300		26,924,713


Security	Shares		Value
Grupo Lala SAB de CV		4,650,100	$	9,707,450
Grupo Mexico SAB de CV Series B		28,913,988		72,113,536
Grupo Televisa SAB		18,627,600		101,318,348
Industrias Penoles SAB de CV		1,065,038		24,588,937
Kimberly-Clark de Mexico SAB de CV Series A		11,643,300		27,829,762
Mexichem SAB de CV		7,890,392		18,106,868
OHL Mexico SAB de CV^a		5,946,800		8,377,129
Promotora y Operadora de Infraestructura SAB de CV		2,003,400		23,982,934
Wal-Mart de Mexico SAB de CV		39,804,500		90,541,723

				1,179,635,594
PERU — 0.37%
Cia. de Minas Buenaventura SA ADR^a		1,450,421		17,927,204
Credicorp Ltd.		518,465		81,233,096
Southern Copper Corp.^c		633,065		16,345,738

				115,506,038
PHILIPPINES — 1.43%
Aboitiz Equity Ventures Inc.		16,009,820		25,769,643
Aboitiz Power Corp.		8,312,564		8,117,216
Alliance Global Group Inc.		16,816,980		5,882,965
Ayala Corp.		1,852,806		34,793,545
Ayala Land Inc.		57,659,200		47,642,004
Bank of the Philippine Islands		6,558,482		14,849,659
BDO Unibank Inc.		11,849,226		29,066,778
DMCI Holdings Inc.		25,045,000		6,181,296
Energy Development Corp.		65,540,600		8,059,827
Globe Telecom Inc.		265,350		11,218,790
GT Capital Holdings Inc.		553,450		18,232,552
International Container Terminal Services Inc.		4,376,970		7,890,664
JG Summit Holdings Inc.		20,648,734		34,565,967
Jollibee Foods Corp.		3,602,219		18,940,737
Megaworld Corp.		77,764,400		7,860,722
Metro Pacific Investments Corp.		92,297,300		13,707,422
Metropolitan Bank & Trust Co.		3,546,796		6,355,992
PLDT Inc.		760,073		29,786,314
Robinsons Land Corp.		9,771,500		6,689,792
Security Bank Corp.		1,639,040		7,506,624
SM Investments Corp.		2,011,852		29,360,647
SM Prime Holdings Inc.		63,625,425		40,760,145
Universal Robina Corp.		6,880,740		27,614,516

				440,853,817


34		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
POLAND — 1.10%
Alior Bank SA^a		710,576	$	9,681,209
Bank Handlowy w Warszawie SA		265,952		4,950,031
Bank Millennium SA^a		4,663,159		6,902,908
Bank Pekao SA		1,189,191		39,904,718
Bank Zachodni WBK SA^c		268,980		22,074,880
CCC SA		203,772		9,481,766
Cyfrowy Polsat SA^a		1,516,539		9,538,103
Enea SA^a		1,535,446		3,870,658
Energa SA		1,549,636		3,209,135
Eurocash SA		596,436		6,557,007
Grupa Azoty SA		326,165		5,354,431
Grupa Lotos SA^a		688,118		5,110,723
KGHM Polska Miedz SA		1,030,129		19,291,792
LPP SA		9,675		11,131,067
mBank SA^a,c		116,608		11,612,056
Orange Polska SA		4,910,904		6,754,871
PGE Polska Grupa Energetyczna SA		6,346,046		18,723,298
Polski Koncern Naftowy ORLEN SA		2,445,324		40,637,135
Polskie Gornictwo Naftowe i Gazownictwo SA		13,458,432		18,339,817
Powszechna Kasa Oszczednosci Bank Polski SA^a		6,703,288		45,535,777
Powszechny Zaklad Ubezpieczen SA		4,220,513		29,835,526
Synthos SA^a		4,219,400		4,185,581
Tauron Polska Energia SA^a		8,098,978		5,756,365

				338,438,854
QATAR — 0.93%
Barwa Real Estate Co.		798,211		8,001,071
Commercial Bank QSC (The)		1,164,131		13,427,301
Doha Bank QSC		585,745		6,040,267
Ezdan Holding Group QSC		6,127,837		31,637,534
Industries Qatar QSC		1,171,576		36,035,128
Masraf Al Rayan QSC		2,898,848		30,251,479
Ooredoo QSC		611,242		17,239,363
Qatar Electricity & Water Co. QSC		233,696		13,894,623
Qatar Gas Transport Co. Ltd.		1,929,873		13,249,708
Qatar Insurance Co. SAQ		911,799		21,784,918
Qatar Islamic Bank SAQ		467,014		14,210,431


Security	Shares		Value
Qatar National Bank SAQ		1,643,979	$	73,590,448
Vodafone Qatar QSC^a		2,739,362		8,952,286

				288,314,557
RUSSIA — 3.38%
Alrosa PJSC		19,966,600		23,097,912
Gazprom PJSC		59,427,939		122,689,352
Gazprom PJSC ADR		15,585,995		63,045,350
Lukoil PJSC		2,399,878		107,612,083
Lukoil PJSC ADR		891,056		39,963,862
Magnit PJSC GDR^d		2,176,768		85,851,730
MegaFon PJSC GDR^d		796,828		8,087,804
MMC Norilsk Nickel PJSC		427,960		63,006,086
Mobile TeleSystems PJSC ADR		4,014,832		32,640,584
Moscow Exchange MICEX-RTS PJSC		11,228,330		21,818,282
Novatek OJSC GDR^d		703,966		75,887,535
PhosAgro PJSC GDR^d		795,041		10,653,549
Rosneft PJSC		6,700,087		35,355,090
Rosneft PJSC GDR^d		1,236,415		6,460,268
Rostelecom PJSC		7,911,680		9,932,205
RusHydro PJSC		1,017,452,100		12,375,880
Sberbank of Russia PJSC		61,067,081		133,989,171
Sberbank of Russia PJSC ADR		4,303,212		39,460,454
Severstal PJSC		1,679,593		19,568,798
Sistema PJSC FC GDR^d		1,424,269		12,092,044
Surgutneftegas OJSC		40,650,760		19,453,637
Surgutneftegas OJSC ADR		1,783,253		8,406,255
Tatneft PJSC Class S		11,041,350		54,064,046
VTB Bank PJSC		29,830,502,000		31,089,370
VTB Bank PJSC GDR^d		3,047,540		6,232,219

				1,042,833,566
SOUTH AFRICA — 6.82%
African Bank Investments Ltd.^a,c		14,665,413		9,967
Anglo American Platinum Ltd.^a		406,130		10,911,079
AngloGold Ashanti Ltd.^a		3,107,698		50,642,669
Aspen Pharmacare Holdings Ltd.		2,610,392		62,447,235
Barclays Africa Group Ltd.		3,240,917		32,796,495
Bid Corp. Ltd.^a		2,539,517		46,599,334
Bidvest Group Ltd. (The)		2,467,182		25,486,465
Brait SE^a,c		2,572,169		20,365,273


SCHEDULES OF INVESTMENTS			35

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Capitec Bank Holdings Ltd.^c		311,891	$	12,348,757
Coronation Fund Managers Ltd.		1,690,786		8,013,743
Discovery Ltd.		2,753,802		22,428,454
Exxaro Resources Ltd.^c		1,119,021		5,721,292
FirstRand Ltd.		25,696,310		76,962,406
Fortress Income Fund Ltd.		5,857,633		13,559,124
Fortress Income Fund Ltd. Class A		6,248,284		6,976,910
Foschini Group Ltd. (The)		1,597,031		14,186,883
Gold Fields Ltd.		6,147,492		31,380,550
Growthpoint Properties Ltd.		15,946,887		27,560,500
Hyprop Investments Ltd.		1,810,448		15,818,188
Impala Platinum Holdings Ltd.^a		4,716,242		18,096,800
Imperial Holdings Ltd.		1,210,850		12,979,021
Investec Ltd.		1,935,805		11,293,177
Liberty Holdings Ltd.		927,881		7,111,327
Life Healthcare Group Holdings Ltd.		7,260,309		18,996,809
Massmart Holdings Ltd.^c		799,919		7,035,236
MMI Holdings Ltd./South Africa		7,934,538		12,165,377
Mondi Ltd.		890,663		17,977,723
Mr. Price Group Ltd.		1,855,058		23,256,698
MTN Group Ltd.		12,690,258		103,666,811
Naspers Ltd. Class N		3,335,056		545,335,255
Nedbank Group Ltd.^c		1,531,240		21,491,672
Netcare Ltd.		7,419,622		16,564,639
New Europe Property Investments PLC		1,778,646		19,759,040
Pick n Pay Stores Ltd.^c		2,471,038		12,375,216
Pioneer Foods Group Ltd.		944,614		10,913,602
PSG Group Ltd.		693,099		8,852,773
Rand Merchant Investment Holdings Ltd.		4,894,493		13,904,290
Redefine Properties Ltd.		33,508,958		25,096,164
Remgro Ltd.		3,680,845		62,966,974
Resilient REIT Ltd.		2,171,427		17,413,740
RMB Holdings Ltd.		5,344,348		21,320,513
Sanlam Ltd.		10,779,841		45,773,929
Sappi Ltd.^a		4,160,982		20,476,664
Sasol Ltd.		4,223,804		106,257,126
Shoprite Holdings Ltd.		3,309,779		42,400,909
Sibanye Gold Ltd.		5,614,980		21,762,882
SPAR Group Ltd. (The)		1,410,504		18,405,193
Standard Bank Group Ltd.		9,909,839		89,668,514
Steinhoff International Holdings NV Class H		22,290,919		133,647,195


Security	Shares		Value
Telkom SA SOC Ltd.		1,968,574	$	8,134,299
Tiger Brands Ltd.		1,259,911		32,667,959
Truworths International Ltd.		3,345,363		17,313,225
Tsogo Sun Holdings Ltd.		2,356,993		4,872,842
Vodacom Group Ltd.		2,853,872		29,661,424
Woolworths Holdings Ltd./South Africa		7,633,368		41,834,207

				2,105,664,549
SOUTH KOREA — 13.97%
AmorePacific Corp.		245,994		85,160,255
AmorePacific Group		216,620		28,170,314
BGF retail Co. Ltd.		77,888		14,145,579
BNK Financial Group Inc.		1,983,841		15,746,182
Celltrion Inc.^a,c		581,557		55,704,294
Cheil Worldwide Inc.		553,944		7,899,291
CJ CheilJedang Corp.		61,965		21,646,070
CJ Corp.		112,546		19,279,180
CJ E&M Corp.		150,116		9,357,006
CJ Korea Express Corp.^a		56,348		10,157,801
Coway Co. Ltd.		410,733		30,722,092
Daelim Industrial Co. Ltd.		215,004		15,638,408
Daewoo Engineering & Construction Co. Ltd.^a,c		980,595		5,347,101
DGB Financial Group Inc.		1,286,199		10,543,371
Dongbu Insurance Co. Ltd.		379,027		22,945,581
Dongsuh Cos. Inc.^c		277,377		7,674,512
Doosan Heavy Industries & Construction Co. Ltd.^c		372,214		9,230,240
E-MART Inc.		150,190		21,215,179
GS Engineering & Construction Corp.^a,c		383,943		9,899,876
GS Holdings Corp.		403,171		17,862,464
GS Retail Co. Ltd.		212,573		8,979,541
Hana Financial Group Inc.		2,274,057		59,757,731
Hankook Tire Co. Ltd.		572,761		28,663,734
Hanmi Pharm Co. Ltd.^c		39,921		21,267,331
Hanmi Science Co. Ltd.		90,364		10,859,889
Hanon Systems		1,454,334		15,260,725
Hanssem Co. Ltd.^c		82,243		10,842,799
Hanwha Chemical Corp.		819,427		18,813,750
Hanwha Corp.		351,453		11,552,244
Hanwha Life Insurance Co. Ltd.		1,732,293		8,809,060
Hotel Shilla Co. Ltd.^c		257,595		15,663,624
Hyosung Corp.		160,304		18,977,693
Hyundai Department Store Co. Ltd.		115,728		13,025,887


36		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Hyundai Development Co. – Engineering & Construction		337,008	$	14,099,931
Hyundai Engineering & Construction Co. Ltd.		550,686		19,039,413
Hyundai Glovis Co. Ltd.		143,865		23,676,437
Hyundai Heavy Industries Co. Ltd.^a,c		320,920		39,575,336
Hyundai Marine & Fire Insurance Co. Ltd.		374,018		11,337,945
Hyundai Mobis Co. Ltd.		518,428		121,121,519
Hyundai Motor Co.		1,086,748		129,630,031
Hyundai Steel Co.		611,225		28,121,832
Hyundai Wia Corp.		123,026		10,040,687
Industrial Bank of Korea		1,965,064		20,708,074
Kakao Corp.^c		239,394		17,455,365
Kangwon Land Inc.		911,987		32,267,163
KB Financial Group Inc.		2,954,774		103,085,837
KCC Corp.^c		44,546		16,480,022
KEPCO Plant Service & Engineering Co. Ltd.^c		174,683		10,089,314
Kia Motors Corp.		1,997,370		75,147,687
Korea Aerospace Industries Ltd. Class A		449,808		34,169,271
Korea Electric Power Corp.		1,957,703		101,835,672
Korea Gas Corp.		225,722		8,593,631
Korea Investment Holdings Co. Ltd.		310,238		11,157,438
Korea Zinc Co. Ltd.		66,147		28,386,852
Korean Air Lines Co. Ltd.^a		288,217		8,155,378
KT Corp.		170,925		4,844,152
KT&G Corp.		847,845		88,966,695
Kumho Petrochemical Co. Ltd.^c		144,889		8,953,231
LG Chem Ltd.		353,256		85,700,222
LG Corp.		730,133		43,153,152
LG Display Co. Ltd.		1,769,525		47,689,889
LG Electronics Inc.^c		815,196		37,652,551
LG Household & Health Care Ltd.		72,705		62,011,170
LG Innotek Co. Ltd.		111,369		8,240,307
LG Uplus Corp.		1,671,512		17,464,677
Lotte Chemical Corp.^c		118,703		28,531,304
Lotte Chilsung Beverage Co. Ltd.		4,881		6,570,745
Lotte Confectionery Co. Ltd.		45,352		6,894,318
Lotte Shopping Co. Ltd.		85,224		15,516,118
Mirae Asset Daewoo Co. Ltd.^c		1,407,725		10,037,142
Mirae Asset Securities Co. Ltd.		593,124		12,527,417


Security	Shares		Value
NAVER Corp.		207,379	$	157,161,664
NCsoft Corp.		135,285		32,759,596
NH Investment & Securities Co. Ltd.		1,117,111		10,119,122
OCI Co. Ltd.^a,c		129,820		10,176,025
Orion Corp./Republic of Korea		27,267		18,169,848
Ottogi Corp.^c		9,599		6,017,669
Paradise Co. Ltd.^c		355,288		5,337,286
POSCO		531,124		110,035,555
Posco Daewoo Corp.		360,243		7,398,713
S-1 Corp.		152,122		14,052,526
S-Oil Corp.		351,671		22,298,780
Samsung C&T Corp.		578,633		78,621,435
Samsung Card Co. Ltd.		280,184		11,119,410
Samsung Electro-Mechanics Co. Ltd.		428,595		20,449,555
Samsung Electronics Co. Ltd.		761,072		1,105,772,771
Samsung Fire & Marine Insurance Co. Ltd.		254,318		61,583,731
Samsung Heavy Industries Co. Ltd.^a,c		1,141,761		9,912,329
Samsung Life Insurance Co. Ltd.		537,566		49,658,563
Samsung SDI Co. Ltd.		418,537		43,355,178
Samsung SDS Co. Ltd.		266,467		38,237,417
Samsung Securities Co. Ltd.		436,153		13,710,460
Shinhan Financial Group Co. Ltd.		3,129,463		115,074,424
Shinsegae Inc.		57,273		10,452,965
SK Holdings Co. Ltd.		349,111		66,378,056
SK Hynix Inc.		4,437,912		145,077,930
SK Innovation Co. Ltd.		496,628		64,806,613
SK Networks Co. Ltd.		991,495		5,628,846
SK Telecom Co. Ltd.		154,746		30,324,665
Woori Bank		2,314,433		22,002,681
Yuhan Corp.		60,149		15,563,217

				4,311,003,759
TAIWAN — 11.91%
Acer Inc.^c		22,453,121		10,083,578
Advanced Semiconductor Engineering Inc.^c		48,181,701		59,220,193
Advantech Co. Ltd.		2,410,370		19,712,611
Asia Cement Corp.		17,880,077		15,975,172
Asia Pacific Telecom Co. Ltd.^a		15,504,000		5,228,181
Asustek Computer Inc.^c		5,318,968		45,008,522


SCHEDULES OF INVESTMENTS			37

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
AU Optronics Corp.^c		66,395,000	$	26,155,828
Casetek Holdings Ltd.^c		984,000		3,457,746
Catcher Technology Co. Ltd.^c		4,961,210		35,648,851
Cathay Financial Holding Co. Ltd.		62,060,644		78,430,275
Chailease Holding Co. Ltd.^c		7,883,932		13,615,905
Chang Hwa Commercial Bank Ltd.		39,489,515		19,850,231
Cheng Shin Rubber Industry Co. Ltd.^c		14,626,128		31,067,932
Chicony Electronics Co. Ltd.		3,971,933		9,826,405
China Airlines Ltd.		19,562,347		5,678,108
China Development Financial Holding Corp.		104,858,848		26,503,458
China Life Insurance Co. Ltd./Taiwan		26,559,822		23,520,934
China Steel Corp.^c		89,831,313		62,283,572
Chunghwa Telecom Co. Ltd.		28,984,410		104,133,964
Compal Electronics Inc.		32,069,908		19,001,096
CTBC Financial Holding Co. Ltd.^c		124,284,715		71,874,837
Delta Electronics Inc.		14,837,000		77,153,055
E.Sun Financial Holding Co. Ltd.		60,254,458		33,896,159
Eclat Textile Co. Ltd.^c		1,409,360		17,855,461
EVA Airways Corp.		15,175,878		7,030,630
Evergreen Marine Corp. Taiwan Ltd.		13,297,808		5,029,032
Far Eastern New Century Corp.		24,309,038		17,926,963
Far EasTone Telecommunications Co. Ltd.		12,215,000		28,448,606
Feng TAY Enterprise Co. Ltd.^c		2,526,529		12,023,318
First Financial Holding Co. Ltd.		73,338,588		37,674,130
Formosa Chemicals & Fibre Corp.^c		24,515,090		63,662,515
Formosa Petrochemical Corp.		8,768,000		25,643,164
Formosa Plastics Corp.		31,359,280		77,383,956
Formosa Taffeta Co. Ltd.		6,103,000		5,895,178
Foxconn Technology Co. Ltd.^c		6,843,205		19,194,316
Fubon Financial Holding Co. Ltd.		50,695,969		71,736,941
Giant Manufacturing Co. Ltd.^c		2,131,203		13,735,397
Hermes Microvision Inc.		349,000		14,958,478
Highwealth Construction Corp.		6,209,170		9,647,250


Security	Shares		Value
Hiwin Technologies Corp.^c		1,506,972	$	7,788,828
Hon Hai Precision Industry Co. Ltd.		106,936,902		296,574,191
Hotai Motor Co. Ltd.^c		1,881,000		20,807,457
HTC Corp.^a,c		5,075,708		13,596,860
Hua Nan Financial Holdings Co. Ltd.		57,606,958		29,683,546
Innolux Corp.^c		68,367,002		24,131,685
Inotera Memories Inc.^a,c		20,038,000		16,987,510
Inventec Corp.		19,302,281		14,325,924
Largan Precision Co. Ltd.^c		765,000		85,829,092
Lite-On Technology Corp.		16,283,246		24,632,319
MediaTek Inc.		11,361,338		89,335,303
Mega Financial Holding Co. Ltd.		82,769,162		56,343,704
Merida Industry Co. Ltd.^c		1,508,500		6,156,561
Nan Ya Plastics Corp.^c		36,094,160		68,933,868
Nanya Technology Corp.^c		5,160,000		6,098,234
Nien Made Enterprise Co. Ltd.^c		1,108,000		12,570,870
Novatek Microelectronics Corp.^c		4,361,000		14,912,104
OBI Pharma Inc.^a,c		838,000		10,484,739
Pegatron Corp.		14,800,414		35,776,044
Phison Electronics Corp.^c		1,096,535		7,931,006
Pou Chen Corp.		16,861,220		24,443,867
Powertech Technology Inc.		5,050,300		13,178,640
President Chain Store Corp.		4,322,000		34,392,934
Quanta Computer Inc.		20,619,000		38,144,224
Realtek Semiconductor Corp.		3,492,637		13,979,134
Ruentex Development Co. Ltd.^a		6,178,025		7,233,218
Ruentex Industries Ltd.^c		4,046,598		6,280,864
Shin Kong Financial Holding Co. Ltd.^a,c		61,391,865		13,466,141
Siliconware Precision Industries Co. Ltd.		16,538,509		24,679,674
Simplo Technology Co. Ltd.		2,103,202		6,926,604
SinoPac Financial Holdings Co. Ltd.		77,626,021		22,702,746
Standard Foods Corp.^c		2,970,438		7,330,023
Synnex Technology International Corp.^c		10,627,834		11,220,511
TaiMed Biologics Inc.^a,c		1,214,000		7,518,035
Taishin Financial Holding Co. Ltd.		65,092,144		24,616,874
Taiwan Business Bank^a		31,848,149		8,511,442


38		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Taiwan Cement Corp.		25,169,296	$	28,754,258
Taiwan Cooperative Financial Holding Co. Ltd.		60,438,219		26,571,064
Taiwan Fertilizer Co. Ltd.		5,557,000		7,337,997
Taiwan Mobile Co. Ltd.		12,798,600		44,973,886
Taiwan Semiconductor Manufacturing Co. Ltd.		187,517,000		1,040,103,118
Teco Electric and Machinery Co. Ltd.		14,435,000		12,146,499
Transcend Information Inc.		1,324,000		3,817,967
Uni-President Enterprises Corp.		36,913,839		69,801,306
United Microelectronics Corp.^c		92,100,000		33,379,556
Vanguard International Semiconductor Corp.^c		6,931,000		12,996,785
Wistron Corp.^c		19,247,147		14,133,358
WPG Holdings Ltd.^c		11,292,532		13,434,805
Yuanta Financial Holding Co. Ltd.		73,242,635		25,968,064
Yulon Motor Co. Ltd.^c		6,273,000		5,426,761
Zhen Ding Technology Holding Ltd.^c		2,998,075		6,009,284

				3,677,551,432
THAILAND — 2.30%
Advanced Info Service PCL NVDR		7,890,700		37,726,188
Airports of Thailand PCL NVDR^c		3,252,800		37,775,725
Bangkok Bank PCL Foreign		1,948,900		9,543,082
Bangkok Dusit Medical Services PCL NVDR		29,769,000		20,209,776
Bangkok Expressway & Metro PCL		52,631,700		11,707,590
Banpu PCL NVDR^c		11,462,100		5,198,682
BEC World PCL NVDR^c		7,988,000		5,169,106
BTS Group Holdings PCL NVDR		41,342,300		10,808,679
Bumrungrad Hospital PCL NVDR		2,726,400		13,389,609
Central Pattana PCL NVDR		10,820,400		18,833,444
Charoen Pokphand Foods PCL NVDR		20,890,000		19,613,323
CP ALL PCL NVDR		37,553,600		67,533,665
Delta Electronics Thailand PCL NVDR^c		3,695,300		7,899,704


Security	Shares		Value
Electricity Generating PCL NVDR		844,600	$	4,818,896
Energy Absolute PCL NVDR^c		8,096,800		5,906,146
Glow Energy PCL NVDR		4,178,000		9,655,790
Home Product Center PCL NVDR		29,545,414		9,303,491
Indorama Ventures PCL NVDR		11,224,580		10,376,466
IRPC PCL NVDR		79,261,200		11,082,440
Kasikornbank PCL Foreign		8,986,000		51,399,749
Kasikornbank PCL NVDR^c		4,350,600		24,822,507
Krung Thai Bank PCL NVDR^c		27,150,900		14,902,778
Minor International PCL NVDR		16,223,720		19,333,202
PTT Exploration & Production PCL NVDR		10,503,239		24,653,354
PTT Global Chemical PCL NVDR		15,802,230		27,846,948
PTT PCL NVDR		7,613,100		76,756,710
Robinson Department Store PCL NVDR		3,704,100		6,848,446
Siam Cement PCL (The) Foreign		2,363,000		36,180,035
Siam Cement PCL (The) NVDR		684,600		10,481,952
Siam Commercial Bank PCL (The) NVDR^c		11,957,400		55,269,576
Thai Oil PCL NVDR		6,425,400		13,132,760
Thai Union Group PCL NVDR		14,192,100		8,814,842
TMB Bank PCL NVDR		102,558,500		6,695,908
True Corp. PCL NVDR^c		76,244,001		17,841,037

				711,531,606
TURKEY — 1.19%
Akbank TAS		16,966,512		44,837,323
Anadolu Efes Biracilik ve Malt Sanayii AS		1,543,614		9,572,274
Arcelik AS		1,793,294		12,823,528
BIM Birlesik Magazalar AS		1,625,709		27,854,228
Coca-Cola Icecek AS		561,870		7,017,916
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		14,359,123		14,120,864
Enka Insaat ve Sanayi AS		1		1
Eregli Demir ve Celik Fabrikalari TAS		10,580,352		15,911,110
Ford Otomotiv Sanayi AS		545,529		5,914,153


SCHEDULES OF INVESTMENTS			39

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
Haci Omer Sabanci Holding AS		7,016,097	$	21,647,449
KOC Holding AS		4,808,348		20,864,178
Petkim Petrokimya Holding AS		5,028,806		7,800,419
TAV Havalimanlari Holding AS^c		1,254,946		4,894,081
Tofas Turk Otomobil Fabrikasi AS		947,700		6,968,995
Tupras Turkiye Petrol Rafinerileri AS		947,417		18,537,881
Turk Hava Yollari AO^a,c		3,943,453		6,876,489
Turk Telekomunikasyon AS		3,459,146		6,978,845
Turkcell Iletisim Hizmetleri AS^a		6,643,216		22,292,972
Turkiye Garanti Bankasi AS		17,700,029		45,639,289
Turkiye Halk Bankasi AS		4,774,119		14,326,713
Turkiye Is Bankasi Class C		12,095,361		19,660,940
Turkiye Sise ve Cam Fabrikalari AS		5,584,704		6,454,560
Turkiye Vakiflar Bankasi Tao Class D^c		5,926,222		8,711,793
Ulker Biskuvi Sanayi AS		1,176,484		8,277,651
Yapi ve Kredi Bankasi AS^a		6,827,923		8,399,054

				366,382,706
UNITED ARAB EMIRATES — 0.86%
Abu Dhabi Commercial Bank PJSC		15,097,270		26,387,649
Aldar Properties PJSC		23,965,279		18,007,724
Arabtec Holding PJSC^a		17,116,168		6,803,410
DP World Ltd.		1,264,295		23,389,458
Dubai Financial Market PJSC		15,745,808		5,744,298
Dubai Islamic Bank PJSC		9,585,606		14,248,839
Emaar Malls Group PJSC		14,653,130		11,010,492
Emaar Properties PJSC		26,833,500		51,868,408
Emirates Telecommunications Group Co. PJSC		13,306,024		71,545,554
First Gulf Bank PJSC		6,971,455		22,206,317
National Bank of Abu Dhabi PJSC		5,318,352		13,205,023

				264,417,172

TOTAL COMMON STOCKS
(Cost: $29,617,509,063)				29,507,455,345

PREFERRED STOCKS — 4.02%

BRAZIL — 2.85%
Banco Bradesco SA		21,134,449		189,921,172
Braskem SA Class A		1,186,800		8,848,336


Security	Shares		Value
Centrais Eletricas Brasileiras SA Class B		1,762,937	$	15,537,047
Cia. Brasileira de Distribuicao		1,195,686		18,620,430
Cia. Energetica de Minas Gerais		5,747,202		15,550,751
Cia. Energetica de Sao Paulo Class B		1,492,800		6,227,309
Cia. Paranaense de Energia Class B		795,675		8,109,793
Gerdau SA		6,963,585		19,552,648
Itau Unibanco Holding SA		22,300,767		247,226,946
Itausa-Investimentos Itau SA		29,724,730		79,050,244
Lojas Americanas SA		4,510,924		26,824,500
Petroleo Brasileiro SA		29,675,327		117,919,461
Suzano Papel e Celulose SA Class A		3,031,600		9,562,224
Telefonica Brasil SA		3,384,367		50,957,025
Vale SA		14,574,851		65,216,802

				879,124,688
CHILE — 0.08%
Embotelladora Andina SA Class B		1,962,505		7,046,898
Sociedad Quimica y Minera de Chile SA Series B		740,034		18,954,324

				26,001,222
COLOMBIA — 0.17%
Bancolombia SA		3,398,593		33,481,974
Grupo Aval Acciones y Valores SA		24,150,958		10,220,292
Grupo de Inversiones Suramericana SA		634,035		8,199,654

				51,901,920
RUSSIA — 0.16%
Surgutneftegas OJSC		53,571,600		26,973,342
Transneft PJSC		9,251		21,930,289

				48,903,631
SOUTH KOREA — 0.76%
AmorePacific Corp.		69,054		13,625,005
Hyundai Motor Co.		173,188		14,880,189
Hyundai Motor Co. Series 2		286,833		25,853,557
LG Chem Ltd.		58,638		9,466,224
LG Household & Health Care Ltd.		14,642		7,472,016
Samsung Electronics Co. Ltd.		137,087		162,783,128

				234,080,119

TOTAL PREFERRED STOCKS
(Cost: $1,209,984,758)				1,240,011,580


40		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
RIGHTS — 0.00%

BRAZIL — 0.00%
AES Tiete Energia SA^a		43,497	$	55,552

				55,552
SOUTH KOREA — 0.00%
Hanwha Corp.^a		87,248		—

				—

TOTAL RIGHTS
(Cost: $0)				55,552

SHORT-TERM INVESTMENTS — 5.60%

MONEY MARKET FUNDS — 5.60%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^e,f,g		1,728,148,121		1,728,148,121

				1,728,148,121

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,728,148,121)				1,728,148,121

TOTAL INVESTMENTS IN SECURITIES — 105.21%
(Cost: $32,555,641,942)^h				32,475,670,598
Other Assets, Less Liabilities — (5.21)%				(1,609,202,021	)

NET ASSETS — 100.00%			$	30,866,468,577

ADR — American Depositary Receipts

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^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	All or a portion of this security represents a security on loan. 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 money market fund.

^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.

^h	The cost of investments for federal income tax purposes was $34,000,259,007. Net unrealized depreciation was $1,524,588,409, of which $4,363,542,447 represented gross unrealized appreciation on securities and $5,888,130,856 represented gross unrealized depreciation on securities.

Schedule 1 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2016 were as follows:


Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
MSCI Emerging Markets Mini Index		2,463		Sep. 2016		New York Board of Trade	$	100,157,254	$	109,344,885	$	9,187,631

Schedule 2 — Fair Value Measurements


SCHEDULES OF INVESTMENTS			41

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2016


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Common stocks	$	29,498,094,443	$	9,350,927		$	9,975	$	29,507,455,345
Preferred stocks		1,240,011,580		—			—		1,240,011,580
Rights		55,552		0	^a		—		55,552
Money market funds		1,728,148,121		—			—		1,728,148,121

Total	$	32,466,309,696	$	9,350,927		$	9,975	$	32,475,670,598

Derivative financial instruments^b:
Assets:
Futures contracts	$	9,187,631	$	—		$	—	$	9,187,631

Total	$	9,187,631	$	—		$	—	$	9,187,631

Rounds to less than $1.

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

See notes to financial statements.


42		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2016


	iShares Currency Hedged MSCI Emerging Markets ETF			iShares Edge MSCI Min Vol EM Currency Hedged ETF			iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)

ASSETS
Investments, at cost:
Unaffiliated	$	—		$	—		$	4,175,557,948
Affiliated (Note 2)		194,246,638			5,839,039			120,471,479

Total cost of investments	$	194,246,638		$	5,839,039		$	4,296,029,427

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	—		$	—		$	4,357,105,343
Affiliated (Note 2)		180,171,675			6,164,761			120,471,479

Total fair value of investments		180,171,675			6,164,761			4,477,576,822
Foreign currency, at value^b		—			—			5,413,513
Receivables:
Investment securities sold		1,086,383			39,628			—
Dividends and Interest		220			1			8,013,170
Unrealized appreciation on forward currency contracts (Note 1)		820,391			17,431			—

Total Assets		182,078,669			6,221,821			4,491,003,505


LIABILITIES
Payables:
Collateral for securities on loan (Note 1)		—			—			110,089,754
Due to custodian		—			—			5,958
Foreign taxes (Note 1)		—			—			954,856
Investment advisory fees (Note 2)		—			158			912,070
Unrealized depreciation on forward currency contracts (Note 1)		1,824,877			44,871			—

Total Liabilities		1,824,877			45,029			111,962,638


NET ASSETS	$	180,253,792		$	6,176,792		$	4,379,040,867


Net assets consist of:
Paid-in capital	$	206,158,635		$	5,984,704		$	4,658,417,546
Undistributed net investment income		25,812			—			33,247,567
Accumulated net realized loss		(10,851,206	)		(106,194	)		(494,127,704	)
Net unrealized appreciation (depreciation)		(15,079,449	)		298,282			181,503,458

NET ASSETS	$	180,253,792		$	6,176,792		$	4,379,040,867


Shares outstanding^c		8,300,000			250,000			82,000,000


Net asset value per share	$	21.72		$	24.71		$	53.40

^a	Securities on loan with values of $ —, $ — and $103,440,257, respectively. See Note 1.

^b	Cost of foreign currency: $ —, $ — and $5,433,338, respectively.

^c	$0.001 par value, number of shares authorized: 250 million, 25 million and 500 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			43

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Emerging Markets ETF (Consolidated)

ASSETS
Investments, at cost:
Unaffiliated	$	30,827,493,821
Affiliated (Note 2)		1,728,148,121

Total cost of investments	$	32,555,641,942

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	30,747,522,477
Affiliated (Note 2)		1,728,148,121

Total fair value of investments		32,475,670,598
Foreign currency, at value^b		51,710,407
Cash pledged to broker		7,127,010
Cash		119,505,987
Receivables:
Investment securities sold		169,480,766
Dividends and interest		34,736,150
Capital shares sold		8,490,892
Tax reclaims		106,068

Total Assets		32,866,827,878


LIABILITIES
Payables:
Investment securities purchased		231,437,897
Collateral for securities on loan (Note 1)		1,728,148,121
Futures variation margin		1,764,080
Line of credit (Note 9)		20,000,847
Foreign taxes (Note 1)		1,429,964
Investment advisory fees (Note 2)		17,578,392

Total Liabilities		2,000,359,301


NET ASSETS	$	30,866,468,577


Net assets consist of:
Paid-in capital	$	42,657,605,104
Undistributed net investment income		83,860,297
Accumulated net realized loss		(11,803,939,450	)
Net unrealized depreciation		(71,057,374	)

NET ASSETS	$	30,866,468,577


Shares outstanding^c		840,150,000


Net asset value per share	$	36.74

^a	Securities on loan with values of $1,661,153,788. See Note 1.

^b	Cost of foreign currency: $51,877,704.

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

See notes to financial statements.


44		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2016


	iShares Currency Hedged MSCI Emerging Markets ETF			iShares Edge MSCI Min Vol EM Currency Hedged ETF^a			iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)

NET INVESTMENT INCOME
Dividends — unaffiliated^b	$	—		$	—		$	103,726,939
Dividends — affiliated (Note 2)		4,629,071			106,341			10,482
Securities lending income — affiliated — net (Note 2)		202,464			—			2,459,665

		4,831,535			106,341			106,197,086
Less: Other foreign taxes (Note 1)		—			—			(970,446	)

Total investment income		4,831,535			106,341			105,226,640


EXPENSES
Investment advisory fees (Note 2)		1,557,249			28,545			22,191,977
Mauritius income taxes (Note 1)		—			—			32,927
Commitment fees (Note 9)		—			—			15,695
Interest expense (Note 9)		—			—			12,096

Total expenses		1,557,249			28,545			22,252,695
Less investment advisory fees waived (Note 2)		(1,557,249	)		(27,449	)		(14,435,231	)

Net expenses		—			1,096			7,817,464

Net investment income		4,831,535			105,245			97,409,176


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^c		—			—			(284,040,050	)
Investments — affiliated (Note 2)		(9,095,823	)		(10,601	)		—
In-kind redemptions — affiliated (Note 2)		2,299,340			—			—
Foreign currency transactions		(1,248,017	)		(95,593	)		(1,294,910	)

Net realized loss		(8,044,500	)		(106,194	)		(285,334,960	)

Net change in unrealized appreciation/depreciation on:
Investments		19,876,295			325,722			474,540,005
Forward currency contracts		(4,089,424	)		(27,440	)		—
Translation of assets and liabilities in foreign currencies		—			—			91,125

Net change in unrealized appreciation/depreciation		15,786,871			298,282			474,631,130

Net realized and unrealized gain		7,742,371			192,088			189,296,170

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	12,573,906		$	297,333		$	286,705,346

^a	For the period from October 29, 2015 (commencement of operations) to August 31, 2016.

^b	Net of foreign withholding tax of $ —, $ — and $12,540,825, respectively.

^c	Net of foreign capital gains taxes of $4,968.

See notes to financial statements.


FINANCIAL STATEMENTS			45

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Emerging Markets ETF (Consolidated)

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	632,899,922
Dividends — affiliated (Note 2)		114,371
Interest — unaffiliated		5,411
Securities lending income — affiliated — net (Note 2)^b		23,437,769

		656,457,473
Less: Other foreign taxes (Note 1)		(2,079,362	)

Total investment income		654,378,111


EXPENSES
Investment advisory fees (Note 2)		162,269,425
Mauritius income taxes (Note 1)		1,272,376
Commitment fees (Note 9)		218,847
Interest expense (Note 9)		18,561

Total expenses		163,779,209

Net investment income		490,598,902


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^c		(2,043,036,151	)
In-kind redemptions — unaffiliated		6,837,166
Futures contracts		6,400,315
Foreign currency transactions		(3,623,363	)

Net realized loss		(2,033,422,033	)

Net change in unrealized appreciation/depreciation on:
Investments		3,696,169,684
Futures contracts		18,765,552
Translation of assets and liabilities in foreign currencies		1,644,910

Net change in unrealized appreciation/depreciation		3,716,580,146

Net realized and unrealized gain		1,683,158,113

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,173,757,015

^a	Net of foreign withholding tax of $72,521,892.

^b	Net of securities lending income tax paid $815,627.

^c	Net of foreign capital gains taxes of $83,819.

See notes to financial statements.


46		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares Currency Hedged MSCI Emerging Markets ETF						iShares Edge MSCI Min Vol EM Currency Hedged ETF
	Year ended August 31, 2016			Period from September 23, 2014^a to August 31, 2015			Period from October 29, 2015^a to August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	4,831,535		$	1,465,817		$	105,245
Net realized gain (loss)		(8,044,500	)		3,865,112			(106,194	)
Net change in unrealized appreciation/depreciation		15,786,871			(30,866,320	)		298,282

Net increase (decrease) in net assets resulting from operations		12,573,906			(25,535,391	)		297,333


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(4,805,723	)		(1,468,085	)		(105,245	)
From net realized gain		(7,816,489	)		—			—
Return of capital		—			—			(355	)

Total distributions to shareholders		(12,622,212	)		(1,468,085	)		(105,600	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		60,096,742			260,396,098			5,985,059
Cost of shares redeemed		(91,659,549	)		(21,527,717	)		—

Net increase (decrease) in net assets from capital share transactions		(31,562,807	)		238,868,381			5,985,059

INCREASE (DECREASE) IN NET ASSETS		(31,611,113	)		211,864,905			6,176,792

NET ASSETS
Beginning of period		211,864,905			—			—

End of period	$	180,253,792		$	211,864,905		$	6,176,792

Undistributed net investment income included in net assets at end of period	$	25,812		$	—		$	—


SHARES ISSUED AND REDEEMED
Shares sold		2,850,000			10,850,000			250,000
Shares redeemed		(4,450,000	)		(950,000	)		—

Net increase (decrease) in shares outstanding		(1,600,000	)		9,900,000			250,000

^a	Commencement of operations.

See notes to financial statements.


FINANCIAL STATEMENTS			47

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.



	iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)						iShares MSCI Emerging Markets ETF (Consolidated)
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	97,409,176		$	61,402,206		$	490,598,902		$	579,976,167
Net realized loss		(285,334,960	)		(65,601,019	)		(2,033,422,033	)		(1,550,037,406	)
Net change in unrealized appreciation/depreciation		474,631,130			(459,223,410	)		3,716,580,146			(7,707,709,659	)

Net increase (decrease) in net assets resulting from operations		286,705,346			(463,422,223	)		2,173,757,015			(8,677,770,898	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(81,549,891	)		(56,113,327	)		(501,097,523	)		(661,275,094	)

Total distributions to shareholders		(81,549,891	)		(56,113,327	)		(501,097,523	)		(661,275,094	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,711,528,424			1,088,475,713			14,107,740,227			1,756,006,247
Cost of shares redeemed		—			(186,946,485	)		(5,914,796,140	)		(15,752,495,900	)

Net increase (decrease) in net assets from capital share transactions		1,711,528,424			901,529,228			8,192,944,087			(13,996,489,653	)

INCREASE (DECREASE) IN NET ASSETS		1,916,683,879			381,993,678			9,865,603,579			(23,335,535,645	)

NET ASSETS
Beginning of year		2,462,356,988			2,080,363,310			21,000,864,998			44,336,400,643

End of year	$	4,379,040,867		$	2,462,356,988		$	30,866,468,577		$	21,000,864,998

Undistributed net investment income included in net assets at end of year	$	33,247,567		$	18,688,160		$	83,860,297		$	92,311,084


SHARES ISSUED AND REDEEMED
Shares sold		33,700,000			18,300,000			405,900,000			40,950,000
Shares redeemed		—			(3,300,000	)		(187,200,000	)		(402,300,000	)

Net increase (decrease) in shares outstanding		33,700,000			15,000,000			218,700,000			(361,350,000	)

See notes to financial statements.


48		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares Currency Hedged MSCI Emerging Markets ETF


	Year ended Aug. 31, 2016			Period from Sept. 23, 2014^a to Aug. 31, 2015
Net asset value, beginning of period	$	21.40		$	24.44

Income from investment operations:
Net investment income^b		0.50			0.41
Net realized and unrealized gain (loss)^c		1.08			(2.80	)

Total from investment operations		1.58			(2.39	)

Less distributions from:
Net investment income		(0.48	)		(0.65	)
Net realized gain		(0.78	)		—

Total distributions		(1.26	)		(0.65	)

Net asset value, end of period	$	21.72		$	21.40


Total return		7.84	%		(10.01	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	180,254		$	211,865
Ratio of expenses to average net assets^e,f		0.00	%		0.02	%
Ratio of expenses to average net assets prior to waived fees^e,f		0.78	%		0.78	%
Ratio of net investment income to average net assets^e		2.42	%		1.82	%
Portfolio turnover rate^h,i		11	%		7	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

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

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

^h	Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 52 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			49

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout the period)


		iShares Edge MSCI Min Vol EM Currency Hedged ETF


	Period from Oct. 29, 2015^a to Aug. 31, 2016
Net asset value, beginning of period	$	24.50

Income from investment operations:
Net investment income^b		0.58
Net realized and unrealized gain^c		0.23

Total from investment operations		0.81

Less distributions from:
Net investment income		(0.60	)
Return of capital		(0.00	)^d

Total distributions		(0.60	)

Net asset value, end of period	$	24.71


Total return		3.45	%^e


Ratios/Supplemental data:
Net assets, end of period (000s)	$	6,177
Ratio of expenses to average net assets^f,g		0.03	%
Ratio of expenses to average net assets prior to waived fees^f,g		0.78	%
Ratio of net investment income to average net assets^f		2.88	%
Portfolio turnover rate^h,i		8	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount 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	Rounds to less than $0.01.

^e	Not annualized.

^f	Annualized for periods of less than one year.

^g	The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ	Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See page 51 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.


50		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)


	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			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	$	50.98		$	62.47		$	55.56		$	55.32		$	49.30

Income from investment operations:
Net investment income^b		1.57			1.58			1.51			1.85			1.93
Net realized and unrealized gain (loss)^c		2.13			(11.65	)		6.94			(0.60	)		5.41

Total from investment operations		3.70			(10.07	)		8.45			1.25			7.34

Less distributions from:
Net investment income		(1.28	)		(1.42	)		(1.54	)		(1.01	)		(1.32	)

Total distributions		(1.28	)		(1.42	)		(1.54	)		(1.01	)		(1.32	)

Net asset value, end of period	$	53.40		$	50.98		$	62.47		$	55.56		$	55.32


Total return		7.48	%		(16.32	)%		15.44	%		2.22	%		15.16	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	4,379,041		$	2,462,357		$	2,080,363		$	2,455,727		$	387,227
Ratio of expenses to average net assets^e		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of expenses to average net assets prior to waived fees^e		0.71	%		0.69	%		0.67	%		0.67	%		0.69	%
Ratio of net investment income to average net assets^e		3.12	%		2.71	%		2.58	%		3.13	%		4.08	%
Portfolio turnover rate^f		23	%		28	%		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.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			51

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Emerging Markets ETF (Consolidated)
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013			Year ended Aug. 31, 2012
Net asset value, beginning of year	$	33.79		$	45.11		$	38.44		$	39.22		$	42.71

Income from investment operations:
Net investment income^a		0.72			0.73			0.83			0.75			0.86
Net realized and unrealized gain (loss)^b		3.00			(11.21	)		6.55			(0.76	)		(3.53	)

Total from investment operations		3.72			(10.48	)		7.38			(0.01	)		(2.67	)

Less distributions from:
Net investment income		(0.77	)		(0.84	)		(0.71	)		(0.77	)		(0.82	)

Total distributions		(0.77	)		(0.84	)		(0.71	)		(0.77	)		(0.82	)

Net asset value, end of year	$	36.74		$	33.79		$	45.11		$	38.44		$	39.22


Total return		11.28	%		(23.46	)%		19.34	%		(0.08	)%		(6.18	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	30,866,469		$	21,000,865		$	44,336,401		$	34,804,192		$	34,256,628
Ratio of expenses to average net assets		0.72	%		0.69	%		0.67	%		0.67	%		0.68	%
Ratio of expenses to average net assets prior to waived fees		0.72	%		0.69	%		0.68	%		0.67	%		0.69	%
Ratio of net investment income to average net assets		2.15	%		1.79	%		1.98	%		1.78	%		2.13	%
Portfolio turnover rate^c		23	%		10	%		22	%		24	%		15	%

^a	Based on average shares outstanding throughout each period.

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

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, 2016, August 31, 2015, August 31, 2014, August 31, 2013 and August 31, 2012 were 10%, 7%, 7%, 9%, and 10%, respectively. See Note 4.

See notes to financial statements.


52		2016 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
Currency Hedged MSCI Emerging Markets		Non-diversified
Edge MSCI Min Vol EM Currency Hedged^a,c		Non-diversified
Edge MSCI Min Vol Emerging Markets^b		Diversified
MSCI Emerging Markets		Diversified

Formerly the iShares Currency Hedged MSCI EM Minimum Volatility ETF.

Formerly the iShares MSCI Emerging Markets Minimum Volatility ETF.

The Fund commenced operations on October 29, 2015.

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. Currently each currency hedged fund seeks to achieve its investment objective by investing a substantial portion of its assets in an iShares fund (an “underlying fund”). The financial statements and schedules of investments for the underlying funds are included in this report and should be read in conjunction with the financial statements of the currency hedged funds.

Each of the iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF 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*


NOTES TO FINANCIAL STATEMENTS			53

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY VALUATION

•

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 (including money market funds) are valued at that day’s published net asset value (“NAV”).

•

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

•

Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated forward exchange rates are used for contracts with interim settlement dates for which quotations are not available.


54		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

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. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for federal income tax purposes. However, the iShares Currency Hedged MSCI Emerging Markets ETF and iShares Edge MSCI Min Vol EM Currency Hedged ETF has elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for federal income tax purposes.

FOREIGN TAXES


NOTES TO FINANCIAL STATEMENTS			55

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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, 2016, if any, are disclosed in the Funds’ statements of assets and liabilities.

Each of the the iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, each Subsidiary must, on an annual basis, satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius and related requirements. Each Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities.

Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, 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%. Taxes on income, if any, are paid by the Subsidiaries and are disclosed in the consolidated statements of operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. Each Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


56		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2016:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount^b
Edge MSCI Min Vol Emerging Markets
Credit Suisse Securities (USA) LLC	$	8,740,479	$	8,740,479	$	—
Deutsche Bank AG		6,138,709		6,138,709		—
Deutsche Bank Securities Inc.		729,148		729,148		—
Goldman Sachs & Co.		11,611,149		11,611,149		—
HSBC Bank PLC		32,284		32,284		—
Jefferies LLC		330,589		330,589		—
Merrill Lynch, Pierce, Fenner & Smith		9,572,747		9,572,747		—
Morgan Stanley & Co. International PLC		41,462,880		41,462,880		—
Morgan Stanley & Co. LLC		22,991,876		22,991,876		—
State Street Bank & Trust Company		571,613		571,613		—
UBS Securities LLC		1,258,783		1,258,783		—

	$	103,440,257	$	103,440,257	$	—


NOTES TO FINANCIAL STATEMENTS			57

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount^b
MSCI Emerging Markets
Barclays Capital Inc.	$	5,810,896	$	5,744,656	$	(66,240	)
BNP Paribas Prime Brokerage International Ltd.		39,437,294		39,437,294		—
Citigroup Global Markets Inc.		55,940,880		55,940,880		—
Credit Suisse Securities (Europe) Ltd.		66,596,970		66,596,970		—
Credit Suisse Securities (USA) LLC		32,524,643		32,524,643		—
Deutsche Bank AG		3,529,767		3,529,767		—
Deutsche Bank Securities Inc.		24,405,011		24,405,011		—
Goldman Sachs & Co.		473,235,684		473,235,684		—
Goldman Sachs International		110,735,560		110,735,560		—
HSBC Bank PLC		4,794,962		4,794,962		—
Jefferies LLC		1,801,391		1,801,391		—
JP Morgan Securities PLC		10,698,751		10,698,751		—
JPMorgan Clearing Corp.		102,052,904		102,052,904		—
Macquarie Capital (USA) Inc.		19,381,487		19,381,487		—
Merrill Lynch, Pierce, Fenner & Smith		49,783,443		49,783,443		—
Morgan Stanley & Co. International PLC		131,343,080		131,343,080		—
Morgan Stanley & Co. LLC		191,076,777		191,076,777		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		70,184,117		70,184,117		—
National Financial Services LLC		459,272		459,272		—
Nomura Securities International Inc.		772,018		772,018		—
State Street Bank & Trust Company		39,286,201		39,286,201		—
UBS Ltd.		8,215,049		8,215,049		—
UBS Securities LLC		19,988,403		19,988,403		—
Wells Fargo Securities LLC		199,099,228		199,099,228		—

	$	1,661,153,788	$	1,661,087,548	$	(66,240	)

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


58		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For its investment advisory services to the iShares Currency Hedged MSCI Emerging Markets ETF, BFA is entitled to an annual investment advisory fee of 0.78% based on the average daily net assets of the Fund. In addition, the Fund indirectly pays its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 on assets attributable to the Fund’s investments in the iShares MSCI Emerging Markets ETF (“EEM”). BFA has contractually agreed to reduce the investment advisory fee so that the investment advisory fee is equal to the acquired fund fees and expenses that would have been experienced by the Fund related to its investments in EEM, after taking into account any fee waivers by EEM.

For its investment advisory services to the iShares Edge MSCI Min Vol EM Currency Hedged ETF, BFA is entitled to an annual investment advisory fee of 0.78% based on the average daily net assets of the Fund. In addition, the Fund indirectly pays acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee through December 31, 2020 on assets attributable to the Fund’s investments in the iShares Edge MSCI Min Vol Emerging Markets ETF (“EEMV”). BFA has contractually agreed reduce the investment advisory fee through December 31, 2017 so that the investment advisory fee is equal to the acquired fund fees and expenses that would have been experienced by the Fund related to its investments in EEMV, after taking into account any fee waivers by EEMV, plus 0.03%.

For its investment advisory services to each of the iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets 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
	0.75	%	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		Over $42 billion, up to and including $56 billion
	0.47		Over $56 billion, up to and including $70 billion
	0.41		Over $70 billion, up to and including $84 billion
	0.35		Over $84 billion

The total of the investment advisory fee and any other fund expenses are a fund’s total annual operating expenses. For the iShares Edge MSCI Min Vol Emerging Markets ETF, BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through December 31, 2018 in order to limit total annual operating expenses after fee waiver to 0.25% of average daily net assets.

BFA contractually agreed to waive a portion of its investment advisory fees for the iShares MSCI Emerging Markets ETF through December 31, 2015 in an amount equal to the acquired fund fees and expenses attributable to the Fund’s investments in other iShares funds, if any.


NOTES TO FINANCIAL STATEMENTS			59

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
Currency Hedged MSCI Emerging Markets	$	61,448
Edge MSCI Min Vol Emerging Markets		630,918
MSCI Emerging Markets		6,160,805

For the year ended August 31, 2016, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares MSCI Emerging Markets ETF in the amount of $156,696, related to the foreign tax on the securities lending income. Such reimbursement is included in “Securities lending income – affiliated – net” in the Fund’s consolidated statement of operations.

For the year ended August 31, 2016, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
Edge MSCI Min Vol Emerging Markets	$	12,384,681	$	27,557,219
MSCI Emerging Markets		10,708,278		63,768,877

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.


60		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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, 2016 were as follows:


iShares ETF	Purchases		Sales
Currency Hedged MSCI Emerging Markets	$	22,656,291	$	35,081,231
Edge MSCI Min Vol EM Currency Hedged		318,867		515,500
Edge MSCI Min Vol Emerging Markets		1,684,312,077		710,865,907
MSCI Emerging Markets		9,754,224,488		5,204,632,047

In-kind transactions (see Note 4) for the year ended August 31, 2016 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
Currency Hedged MSCI Emerging Markets	$	60,003,602	$	91,876,164
Edge MSCI Min Vol EM Currency Hedged		6,042,987		—
Edge MSCI Min Vol Emerging Markets		745,886,348		—
MSCI Emerging Markets		6,500,555,881		2,807,400,251

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FUTURES CONTRACTS*


NOTES TO FINANCIAL STATEMENTS			61

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 iShares MSCI Emerging Markets ETF as of August 31, 2016 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 (depreciation)	$	9,187,631	^a

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 heldby the iShares MSCI Emerging Markets ETF during the year ended August 31, 2016 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	$	6,400,315	$	18,765,552

The following table shows the average quarter-end balances of open futures contracts for the the iShares MSCI Emerging Markets ETF for the year ended August 31, 2016:


Average value of contracts purchased		$	77,745,156

6.	*FORWARD CURRENCY CONTRACTS*

Each Fund may enter into forward currency contracts for the purpose of hedging against the effects of foreign currencies on the value of such Fund’s assets that are denominated in a non-U.S. currency. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange. The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. The Fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the Fund failing to close out its position due to an illiquid market.


62		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the value of forward currency contracts held as of August 31, 2016 and the related locations in the statements of assets and liabilities, presented by risk exposure category:


Assets
	iShares Currency Hedged MSCI Emerging Markets ETF		iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts:
Unrealized appreciation on forward currency contracts / Net assets consist of – net unrealized appreciation (depreciation)	$	820,391	$	17,431


Liabilities
	iShares Currency Hedged MSCI Emerging Markets ETF		iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts:
Unrealized depreciation on forward currency contracts / Net assets consist of – net unrealized appreciation (depreciation)	$	1,824,877	$	44,871

The following table shows the realized and unrealized gains (losses) on forward currency contracts held during the year ended August 31, 2016 and the related locations in the statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)
	iShares Currency Hedged MSCI Emerging Markets ETF			iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts:
Foreign currency transactions	$	(1,248,017	)	$	(95,593	)


	Net Change in Unrealized Appreciation/Depreciation
	iShares Currency Hedged MSCI Emerging Markets ETF			iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts:
Forward currency contracts	$	(4,089,424	)	$	(27,440	)


NOTES TO FINANCIAL STATEMENTS			63

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the average quarter-end balances of outstanding forward currency contracts for the year ended August 31, 2016:


	iShares Currency Hedged MSCI Emerging Markets ETF		iShares Edge MSCI Min Vol EM Currency Hedged ETF
Average amounts purchased in U.S. dollars	$	230,097,779	$	4,111,515
Average amounts sold in U.S. dollars	$	420,455,254	$	7,991,019

The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. In order to better define their contractual rights and to secure rights that will help the Funds to mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency.

The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by the parties. Forward currency contracts held by the Funds generally do not require collateral. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to netting arrangements in the statements of assets and liabilities.

The following table presents the exposure of the open forward currency contracts that are subject to potential offset in the statements of assets and liabilities as of August 31, 2016:


	Derivative Assets Subject to Offsetting		Derivatives Available for Offset			Net Amount of Derivative Assets
iShares Currency Hedged MSCI Emerging Markets ETF
Forward currency contracts	$	820,391	$	(597,266	)	$	223,125

iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts	$	17,431	$	(14,310	)	$	3,121


64		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


	Derivative Liabilities Subject to Offsetting		Derivatives Available for Offset			Net Amount of Derivative Liabilities
iShares Currency Hedged MSCI Emerging Markets ETF
Forward currency contracts	$	1,824,877	$	(597,266	)	$	1,227,611

iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts	$	44,871	$	(14,310	)	$	30,561

7.	*PRINCIPAL RISKS*

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 and/or indirect 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.


NOTES TO FINANCIAL STATEMENTS			65

Notes to Financial Statements (Continued)

iSHARES^®, INC.

CREDIT RISK

8.	*INCOME TAX INFORMATION*


66		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

August 31, 2016, 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
Currency Hedged MSCI Emerging Markets	$	(237,511	)	$	—		$	237,511
Edge MSCI Min Vol Emerging Markets		—			(1,299,878	)		1,299,878
MSCI Emerging Markets		(73,517,829	)		2,047,834			71,469,995

The tax character of distributions paid during the years ended August 31, 2016 and August 31, 2015 was as follows:


iShares ETF	2016		2015
Currency Hedged MSCI Emerging Markets
Ordinary income	$	8,407,790	$	1,468,085
Long-term capital gain		4,214,422		—

	$	12,622,212	$	1,468,085


Edge MSCI Min Vol EM Currency Hedged
Ordinary income	$	105,245		N/A
Return of capital		355		N/A

	$	105,600		N/A


Edge MSCI Min Vol Emerging Markets
Ordinary income	$	81,549,891	$	56,113,327


MSCI Emerging Markets
Ordinary income	$	501,097,523	$	661,275,094

As of August 31, 2016, 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
Currency Hedged MSCI Emerging Markets	$	25,812	$	—		$	(20,788,290	)	$	(5,142,365	)	$	(25,904,843	)
Edge MSCI Min Vol EM Currency Hedged		—		(3,704	)		306,127			(110,335	)		192,088
Edge MSCI Min Vol Emerging Markets		33,796,218		(172,802,777	)		106,584,086			(246,954,206	)		(279,376,679	)
MSCI Emerging Markets		147,594,378		(8,807,649,532	)		(1,524,848,813	)		(1,606,232,560	)		(11,791,136,527	)

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 foreign currency 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			67

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2016, the following 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
Edge MSCI Min Vol EM Currency Hedged	$	3,704	$	—	$	—	$	—	$	3,704
Edge MSCI Min Vol Emerging Markets		172,802,777		—		—		—		172,802,777
MSCI Emerging Markets		6,504,918,854		228,196,854		1,201,366,175		873,167,649		8,807,649,532

Must be utilized prior to losses subject to expiration.

9.	*LINE OF CREDIT*

The iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF, along with certain other iShares funds, are parties to a $250 million credit agreement with State Street Bank and Trust Company, which expires on October 25, 2017. 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 0.20% 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 (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) 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, 2016, the maximum amounts borrowed, the average borrowings and the weighted average interest rates, if any, under the credit agreement were as follows:


iShares ETF	Maximum Amount Borrowed		Average Borrowings		Weighted Average Interest Rates
Edge MSCI Min Vol Emerging Markets	$	49,300,000	$	942,896		1.26	%
MSCI Emerging Markets		45,000,000		1,461,749		1.25

10.

SUBSEQUENT EVENTS


68		2016 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 Currency Hedged MSCI Emerging Markets ETF, iShares Edge MSCI Min Vol EM Currency Hedged ETF, iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF (the “Funds”) at August 31, 2016, 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 (consolidated financial statements and consolidated financial highlights for iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF) (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, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 21, 2016


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			69

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2016:


iShares ETF	Qualified Dividend Income
Currency Hedged MSCI Emerging Markets	$	3,401,860
Edge MSCI Min Vol EM Currency Hedged		51,836
Edge MSCI Min Vol Emerging Markets		53,924,647
MSCI Emerging Markets		424,847,755

For the fiscal year ended August 31, 2016, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
Edge MSCI Min Vol Emerging Markets	$	116,267,764	$	13,540,721
MSCI Emerging Markets		705,357,425		76,749,983

For the fiscal year ended August 31, 2016, the following Funds intend to pass through to their shareholders foreign source income earned and foreign taxes paid by the underlying funds:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
Currency Hedged MSCI Emerging Markets	$	5,161,634	$	666,406
Edge MSCI Min Vol EM Currency Hedged		126,761		20,595

The iShares Currency Hedged MSCI Emerging Markets ETF hereby designates $4,214,422 as 20% rate long-term capital gain dividends for the fiscal year ended August 31, 2016.

The iShares Currency Hedged MSCI Emerging Markets ETF hereby designates $3,602,067 as short-term capital gain dividends for the fiscal year ended August 31, 2016.


70		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares Currency Hedged 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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 (net of waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds. The Board further noted that the Fund’s pricing reflects the additional complexity associated with the Fund’s currency hedging strategy, as compared to many of the competitor funds as determined by Broadridge, which are not currency hedged.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			71

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


72		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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, among other things, 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 to the extent that the Fund invests in the unhedged iShares MSCI Emerging Markets ETF (“EEM”), Fund shareholders would benefit from breakpoints in EEM’s investment advisory fee rate as the assets of EEM, on an aggregated basis with the assets of other iShares funds, increase. The Board further noted that should material economies of scale exist in the future that are not otherwise shared, 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.

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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			73

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

II. iShares Edge MSCI Min Vol 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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:


74		2016 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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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			75

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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


76		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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			77

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


78		2016 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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			79

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


80		2016 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
Currency Hedged MSCI Emerging Markets	$	0.482615	$	0.781650	$	—	$	1.264265		38	%		62	%		—	%		100	%
Edge MSCI Min Vol EM Currency Hedged		0.604278		—		—		0.604278		100			—			—			100
Edge MSCI Min Vol Emerging Markets		1.283144		—		—		1.283144		100			—			—			100
MSCI Emerging Markets		0.682183		—		0.084639		0.766822		89			—			11			100

Premium/Discount Information


SUPPLEMENTAL INFORMATION			81

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares Currency Hedged MSCI Emerging Markets ETF

Period Covered: September 23, 2014 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		6		1.34	%
Between 0.5% and –0.5%		440		98.44
Less than –0.5% and Greater than –1.0%		1		0.22

		447		100.00	%

iShares Edge MSCI Min Vol EM Currency Hedged ETF

Period Covered: October 29, 2015 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.5%		2		1.18	%
Greater than 1.0% and Less than 1.5%		5		2.96
Greater than 0.5% and Less than 1.0%		27		15.98
Between 0.5% and –0.5%		102		60.36
Less than –0.5% and Greater than –1.0%		28		16.57
Less than –1.0% and Greater than –1.5%		2		1.18
Less than –1.5% and Greater than –2.0%		1		0.59
Less than –2.0%		2		1.18

		169		100.00	%


82		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares Edge MSCI Min Vol Emerging Markets ETF

Period Covered:October 18, 2011 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		2		0.17	%
Greater than 2.5% and Less than 3.0%		2		0.17
Greater than 2.0% and Less than 2.5%		5		0.42
Greater than 1.5% and Less than 2.0%		31		2.62
Greater than 1.0% and Less than 1.5%		73		6.17
Greater than 0.5% and Less than 1.0%		259		21.89
Between 0.5% and –0.5%		651		55.03
Less than –0.5% and Greater than –1.0%		105		8.88
Less than –1.0% and Greater than –1.5%		40		3.38
Less than –1.5% and Greater than –2.0%		11		0.93
Less than –2.0% and Greater than –2.5%		2		0.17
Less than –2.5% and Greater than –3.0%		2		0.17

		1,183		100.00	%

iShares MSCI Emerging Markets ETF

Period Covered: January 1, 2011 through June 30, 2016


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%		24		1.74
Greater than 1.0% and Less than 1.5%		67		4.84
Greater than 0.5% and Less than 1.0%		226		16.34
Between 0.5% and –0.5%		716		51.78
Less than –0.5% and Greater than –1.0%		207		14.98
Less than –1.0% and Greater than –1.5%		79		5.71
Less than –1.5% and Greater than –2.0%		26		1.88
Less than –2.0% and Greater than –2.5%		13		0.94
Less than –2.5% and Greater than –3.0%		4		0.29
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

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			83

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Regulation under the Alternative Investment Fund Managers Directive (“AIFMD” or the “Directive”)

BFA has registered the iShares Edge MSCI Min Vol Emerging Markets ETF and the iShares MSCI Emerging Markets ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden, and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to (a) the staff of BFA; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Funds.


84		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

acknowledges the multiple-service nature of BFA. 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 Edge MSCI Min Vol Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2015 is USD 447.16 thousand. This figure is comprised of fixed remuneration of USD 173.9 thousand and variable remuneration of USD 273.26 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares Edge MSCI Min Vol Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 53.14 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 12.87 thousand.

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, 2015 is USD 3.55 million. This figure is comprised of fixed remuneration of USD 1.38 million and variable remuneration of USD 2.17 million. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 422.01 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 102.2 thousand.


SUPPLEMENTAL INFORMATION			85

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.


86		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director During the Past 5 Years
Cecilia H. Herbert (67)	Director (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	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 media company (since 2011).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015).

Jane D. Carlin (60)	Director (since 2015); Risk Committee Chair (since 2016).	Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012).

Charles A. Hurty (72)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); 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 (61)	Director (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (55)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).


DIRECTOR AND OFFICER INFORMATION			87

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c (Continued)

Robert H. Silver served as an Independent Director until March 31, 2016.


88		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^d



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since January 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).

Jack Gee (56)	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).

Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).

Scott Radell (47)	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 (53)	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).

Manish Mehta served as President until October 15, 2016.


DIRECTOR AND OFFICER INFORMATION			89

Notes:


90		2016 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-805-0816

AUGUST 31, 2016


2016 ANNUAL REPORT

iShares, Inc.

^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			10
Shareholder Expenses			10
Schedules of Investments			11
iShares MSCI Frontier 100 ETF			11
iShares MSCI World ETF			14
Financial Statements			30
Financial Highlights			33
Notes to Financial Statements			35
Report of Independent Registered Public Accounting Firm			46
Tax Information			47
Board Review and Approval of Investment Advisory Contracts			48
Supplemental Information			55
Director and Officer Information			59

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI FRONTIER 100 ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(5.45)%		(6.25)%		(1.47)%		(5.45)%		(6.25)%		(1.47)%
Since Inception		3.52%		3.60%		5.24%		14.73%		15.07%		22.47%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,021.00	$	4.01	$	1,000.00	$	1,021.20	$	4.01		0.79%


6		2016 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, 2016, the total return for the Fund was -5.45%, net of fees, while the total return for the Index was -1.47%.

As represented by the Index, frontier market stocks declined modestly for the reporting period.

Within the Index, Nigeria was the largest detractor from performance for the reporting period. A major oil exporter, Nigeria was hurt by low crude oil prices during the reporting period. Losses in Nigerian stocks were exacerbated by the fall in the Nigerian naira after the government allowed the currency to float against the U.S dollar in order to curb black market trading. Low oil prices also hurt the economy of Kuwait, which represented approximately 24% of the Index on average during the reporting period. In addition to Nigeria and Kuwait, Kazakhstan and Sri Lanka detracted meaningfully from Index performance for the reporting period.

On the positive side, Argentina was the top contributor to Index performance for the reporting period. Argentina’s economic outlook brightened after a new government implemented widespread reforms to restore growth. Stocks’ positive response overcame the negative impact in dollar terms of a key part of the reform package, the devaluation of the Argentine peso. Pakistan boosted Index performance for the reporting period behind strengthening economic growth, while Morocco added to Index returns, partially due to economic growth spurred by a government privatization move.

On a sector basis, the consumer staples sector detracted the most from Index performance for the reporting period as food, beverage, and tobacco stocks declined. In contrast, the telecommunication services sector contributed the most to Index performance behind strength in both the diversified and wireless telecommunications services industries.

ALLOCATION BY SECTOR As of 8/31/16

Sector

Percentage of

Total Investments*


Financials**	44.41	%
Telecommunication Services	14.55
Energy	10.63
Consumer Staples	7.51
Real Estate**	7.15
Materials	4.94
Utilities	3.70
Industrials	3.24
Health Care	2.00
Information Technology	1.15
Consumer Discretionary	0.72

TOTAL	100.00	%

TEN LARGEST COUNTRIES As of 8/31/16

Country

Percentage of

Total Investments*


Kuwait	20.99	%
Argentina	20.08
Pakistan	11.30
Nigeria	7.25
Kenya	6.09
Morocco	6.05
Romania	4.92
Oman	4.85
Bangladesh	3.97
Mauritius	3.96

TOTAL	89.46	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI WORLD ETF

Performance as of August 31, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		7.05%		7.10%		6.68%		7.05%		7.10%		6.68%
Since Inception		10.36%		10.42%		10.19%		58.04%		58.47%		56.88%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,126.30	$	1.28	$	1,000.00	$	1,023.90	$	1.22		0.24%


8		2016 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, 2016, the total return for the Fund was 7.05%, net of fees, while the total return for the Index was 6.68%.

As represented by the Index, global stocks in developed markets posted solid gains for the reporting period.

Representing approximately 59% of the Index on average during the reporting period, the U.S. was the largest contributor to Index performance. Ongoing gradual improvement in the U.S. economy aided U.S. equity markets. In addition, stocks continued to draw support from the Fed, which kept interest rates steady following its quarter-point increase in December 2015. Although U.S. stocks stumbled in the wake of the U.K.’s “Brexit” vote to leave the European Union, the market quickly rebounded, reflecting investor confidence in the economy’s underlying strength.

Asian equity markets also contributed positively to Index performance for the reporting period, led by Australia and Japan. In contrast, European stock markets detracted from Index performance for the reporting period, most notably Italy, Spain, and Switzerland.

On a sector basis, the information technology sector made the largest contribution to Index performance for the reporting period. Robust growth in smartphone usage, cloud computing, and online security helped fuel the positive returns in this sector. Defensive sectors such as consumer staples also contributed to the Index’s return as investors sought relief from slowing global growth, Brexit uncertainty, and falling commodity prices. On the downside, the financials and healthcare sectors detracted from Index performance for the reporting period. Financials stocks struggled with low global interest rates, while healthcare stocks faced political scrutiny regarding prescription drug pricing by pharmaceutical and biotechnology companies.

ALLOCATION BY SECTOR As of 8/31/16


Sector		Percentage of Total Investments*


Financials**	18.28	%
Information Technology	14.75
Health Care	12.97
Consumer Discretionary	12.52
Industrials	11.06
Consumer Staples	10.65
Energy	6.57
Materials	4.83
Telecommunication Services	3.50
Utilities	3.39
Real Estate**	1.48

TOTAL	100.00	%

TEN LARGEST COUNTRIES As of 8/31/16


Country		Percentage of Total Investments*


United States	59.49	%
Japan	8.81
United Kingdom	7.05
France	3.53
Canada	3.53
Germany	3.33
Switzerland	3.33
Australia	2.68
Hong Kong	1.27
Netherlands	1.23

TOTAL	94.25	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

About Fund Performance

Shareholder Expenses


10		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI FRONTIER 100 ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.65%

ARGENTINA — 20.02%
Adecoagro SA^a		458,994	$	4,612,890
Arcos Dorados Holdings Inc. Class A^a		605,926		2,920,563
Banco Macro SA ADR		175,577		13,754,702
BBVA Banco Frances SA ADR		209,614		4,223,722
Cresud SACIF y A ADR^a		146,932		2,597,758
Empresa Distribuidora y Comercializadora Norte SA ADR^a		104,938		1,836,415
Globant SA^a,b		120,309		4,698,067
Grupo Financiero Galicia SA ADR		433,382		12,897,448
IRSA Inversiones y Representaciones SA ADR^a		92,099		1,748,960
Pampa Energia SA ADR^a		274,992		6,891,300
Petrobras Argentina SA ADR		363,623		2,232,645
Telecom Argentina SA ADR		396,312		6,990,944
Transportadora de Gas del Sur SA ADR		383,506		2,312,541
YPF SA ADR		819,584		13,924,732

				81,642,687
BAHRAIN — 0.75%
GFH Financial Group BSC^a		11,520,682		3,073,771

				3,073,771
BANGLADESH — 3.96%
Beximco Pharmaceuticals Ltd.		2,206,267		2,329,197
GrameenPhone Ltd.		839,600		2,825,073
Islami Bank Bangladesh Ltd.		1,919,001		726,690
Lafarge Surma Cement Ltd.		2,392,450		2,306,123
Olympic Industries Ltd.		555,200		2,137,835
Square Pharmaceuticals Ltd.		1,738,849		5,815,378

				16,140,296
JORDAN — 1.46%
Arab Bank PLC		458,370		3,963,058
Jordan Petroleum Refinery Co.		411,420		1,978,762

				5,941,820
KAZAKHSTAN — 1.93%
Halyk Savings Bank of Kazakhstan JSC GDR^a,c		272,885		1,640,039
KazMunaiGas Exploration Production JSC GDR^a,c		879,570		6,244,947

				7,884,986


Security	Shares		Value
KENYA — 6.08%
Co-operative Bank of Kenya Ltd. (The)		9,338,937	$	1,014,601
East African Breweries Ltd.		2,154,742		5,320,351
Equity Group Holdings Ltd./Kenya		10,680,500		2,900,876
KCB Group Ltd.		11,795,560		3,232,857
Safaricom Ltd.		62,254,000		12,297,086

				24,765,771
KUWAIT — 20.94%
Agility Public Warehousing Co. KSC		3,125,338		4,755,724
Boubyan Bank KSCP		2,206,137		2,773,179
Burgan Bank SAK		3,048,839		3,277,779
Jazeera Airways Co. KSC		526,394		1,410,450
Kuwait Finance House KSCP		12,022,554		18,294,326
Kuwait Projects Co. Holding KSCP		2,203,558		4,009,120
Mabanee Co. SAK		2,130,629		5,638,449
Mezzan Holding Co. KSCC		658,498		2,265,425
Mobile Telecommunications Co. KSC		11,143,387		11,795,845
National Bank of Kuwait SAKP		13,326,328		25,568,211
National Industries Group Holding SAK		4,323,639		1,659,088
VIVA Kuwait Telecom Co.^a		816,214		2,457,012
Warba Bank KSCP^a		2,684,542		1,474,145

				85,378,753
MAURITIUS — 3.95%
MCB Group Ltd.		805,908		4,750,736
Rockcastle Global Real Estate Co. Ltd.		4,123,869		10,089,559
SBM Holdings Ltd.		65,056,859		1,275,262

				16,115,557
MOROCCO — 6.04%
Attijariwafa Bank		226,678		8,087,396
Banque Centrale Populaire		123,050		2,854,553
Douja Promotion Groupe Addoha SA		642,342		2,347,638
Maroc Telecom		874,731		11,328,219

				24,617,806
NIGERIA — 7.23%
Access Bank PLC		85,218,667		1,335,012
Afriland Properties PLC^a		7,291		45
Dangote Cement PLC		4,876,220		2,429,684


SCHEDULES OF INVESTMENTS			11

Schedule of Investments (Continued)

iSHARES^® MSCI FRONTIER 100 ETF

August 31, 2016


Security	Shares		Value
Ecobank Transnational Inc.		9	$	—
FBN Holdings PLC		103,830,966		897,123
Guaranty Trust Bank PLC		80,471,984		6,041,098
Lafarge Africa PLC		9,170,826		1,506,821
Nestle Nigeria PLC		1,564,793		3,657,094
Nigerian Breweries PLC		20,035,766		7,947,332
Oando PLC^a		29,477,441		410,847
Transnational Corp. of Nigeria PLC^a		133,569,052		416,221
United Bank for Africa PLC		103,145,957		1,271,062
Zenith Bank PLC		84,436,595		3,564,038

				29,476,377
OMAN — 4.74%
Bank Muscat SAOG		5,131,162		5,064,524
Bank Sohar SAOG		5,129,477		2,224,994
Oman Telecommunications Co. SAOG		1,960,398		8,198,028
OMINVEST		393,953		560,743
Ooredoo QSC		1,752,387		3,277,191

				19,325,480
PAKISTAN — 11.27%
Engro Corp. Ltd./Pakistan		1,301,961		3,804,871
Fauji Cement Co. Ltd.		3,201,500		1,162,903
Fauji Fertilizer Co. Ltd.		2,594,950		2,749,445
Habib Bank Ltd.		3,040,800		6,314,469
Hub Power Co. Ltd. (The)		2,493,830		2,963,068
Lucky Cement Ltd.		924,298		6,119,034
MCB Bank Ltd.		2,898,266		5,804,004
National Bank of Pakistan		3,033,126		2,102,118
Oil & Gas Development Co. Ltd.		3,307,300		4,426,366
Pakistan Oilfields Ltd.		343,500		1,296,296
Pakistan Petroleum Ltd.		871,150		1,364,393
Pakistan State Oil Co. Ltd.		727,500		2,801,353
United Bank Ltd./Pakistan		2,581,867		5,034,548

				45,942,868
ROMANIA — 4.91%
Banca Transilvania SA		13,692,032		8,153,690
BRD-Groupe Societe Generale SA		949,710		2,708,976
Electrica SA		848,437		2,938,089
OMV Petrom SA^a		20,840,505		1,334,927
Societatea Nationala de Gaze Naturale ROMGAZ SA		499,209		2,979,066


Security	Shares or Principal		Value
Transgaz SA Medias		25,194	$	1,910,069

				20,024,817
SLOVENIA — 0.34%
Zavarovalnica Triglav DD		51,794		1,403,489

				1,403,489
SRI LANKA — 2.30%
Commercial Bank of Ceylon PLC		2,736,504		2,612,823
Hatton National Bank PLC		895,985		1,385,782
John Keells Holdings PLC		5,122,610		5,369,981

				9,368,586
VIETNAM — 3.73%
Bank for Foreign Trade of Vietnam JSC^a		1,135,700		2,749,509
Masan Group Corp.^a		1,489,000		4,606,187
Saigon Thuong Tin Commercial JSB^a		2,550,079		1,189,008
Vingroup JSC^a		3,089,258		6,661,883

				15,206,587

TOTAL COMMON STOCKS
(Cost: $472,629,789)				406,309,651

CONVERTIBLE BONDS — 0.10%

OMAN — 0.10%
Bank Muscat SAOG
4.50%, 03/20/17	OMR	540,521		148,819
3.50%, 03/19/18		1,026,177		258,543

				407,362

TOTAL CONVERTIBLE BONDS
(Cost: $255,878)				407,362

SHORT-TERM INVESTMENTS — 2.05%

MONEY MARKET FUNDS — 2.05%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		2,940,667		2,940,667
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		5,413,364		5,413,364

				8,354,031

TOTAL SHORT-TERM INVESTMENTS
(Cost: $8,354,031)				8,354,031


12		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI FRONTIER 100 ETF

August 31, 2016


	Value
TOTAL INVESTMENTS IN SECURITIES — 101.80%
(Cost: $481,239,698)^g	$	415,071,044
Other Assets, Less Liabilities — (1.80)%		(7,348,546	)

NET ASSETS — 100.00%	$	407,722,498

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

Currency abbreviations:

OMR — Omani Rial

^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 money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $507,996,216. Net unrealized depreciation was $92,925,172, of which $50,156,861 represented gross unrealized appreciation on securities and $143,082,033 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	376,833,229	$	29,476,422	$	—	$	406,309,651
Convertible bonds		—		407,362		—		407,362
Money market funds		8,354,031		—		—		8,354,031

Total	$	385,187,260	$	29,883,784	$	—	$	415,071,044

The iShares MSCI Frontier 100 ETF had transfers from Level 1 to Level 2 during the year ended August 31, 2016 in the amount of $59,671,512. The Nigerian securities were valued using Level 1 prices but the foreign exchange rate used to translate the Nigerian naira into U.S. dollars was the three-month non-deliverable forward rate, a Level 2 input.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			13

Schedule of Investments

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.48%

AUSTRALIA — 2.68%
AGL Energy Ltd.		9,680	$	134,951
Amcor Ltd./Australia		12,640		151,994
AMP Ltd.		27,200		107,526
APA Group		12,574		87,318
ASX Ltd.		2,403		92,376
Aurizon Holdings Ltd.		21,320		70,341
Australia & New Zealand Banking Group Ltd.		23,720		479,540
Bendigo & Adelaide Bank Ltd.		6,680		55,124
BHP Billiton Ltd.		27,920		428,688
Brambles Ltd.		14,920		138,146
Cochlear Ltd.		1,080		114,365
Commonwealth Bank of Australia		14,137		762,957
Computershare Ltd.		5,720		42,473
Crown Resorts Ltd.		4,600		45,392
CSL Ltd.		4,200		341,219
Dexus Property Group		14,253		104,119
Goodman Group		20,400		116,367
GPT Group (The)		23,920		95,818
Incitec Pivot Ltd.		24,440		52,348
Insurance Australia Group Ltd.		23,960		100,120
James Hardie Industries PLC		5,928		96,633
LendLease Group		8,440		87,661
Macquarie Group Ltd.		2,850		172,853
Medibank Pvt Ltd.		29,922		60,492
Mirvac Group		54,240		94,573
National Australia Bank Ltd.		21,880		449,577
Newcrest Mining Ltd.^a		8,680		144,755
Oil Search Ltd.		11,320		57,171
Orica Ltd.^b		3,800		42,153
Origin Energy Ltd.		19,080		75,426
QBE Insurance Group Ltd.		12,760		95,131
Ramsay Health Care Ltd.		1,640		102,264
Rio Tinto Ltd.		4,160		148,819
Santos Ltd.		17,213		57,438
Scentre Group		57,941		216,421
Sonic Healthcare Ltd.		5,440		94,034
South32 Ltd.^a		63,124		91,086
Stockland		31,646		115,350
Suncorp Group Ltd.		10,777		102,944
Sydney Airport		10,522		57,569
Tatts Group Ltd.		19,760		56,581


Security	Shares		Value
Telstra Corp. Ltd.		34,463	$	136,238
Transurban Group		19,218		165,520
Vicinity Centres		35,640		88,659
Wesfarmers Ltd.		9,280		295,993
Westfield Corp.		21,160		162,527
Westpac Banking Corp.		27,644		612,057
Woodside Petroleum Ltd.		5,960		128,241
Woolworths Ltd.		11,080		197,437

				7,726,785
AUSTRIA — 0.07%
Andritz AG		1,160		59,100
Erste Group Bank AG		3,280		92,003
OMV AG		1,560		43,645

				194,748
BELGIUM — 0.53%
Ageas		2,480		85,542
Anheuser-Busch InBev SA/NV		6,920		855,878
Colruyt SA		1,000		54,802
Groupe Bruxelles Lambert SA		680		59,581
KBC Group NV^a		2,735		161,657
Proximus SADP		1,320		40,326
Solvay SA		687		75,298
UCB SA		1,400		114,776
Umicore SA		1,480		87,264

				1,535,124
CANADA — 3.52%
Agnico Eagle Mines Ltd.		2,680		135,772
Agrium Inc.		1,400		134,830
Alimentation Couche-Tard Inc. Class B		4,200		216,490
ARC Resources Ltd.		4,040		70,451
Bank of Montreal		5,680		376,545
Bank of Nova Scotia (The)		10,040		534,196
Barrick Gold Corp.		11,560		196,389
BCE Inc.		1,440		67,245
BlackBerry Ltd.^a,b		5,960		45,198
Brookfield Asset Management Inc. Class A		8,400		283,297
Cameco Corp.		4,760		43,898
Canadian Imperial Bank of Commerce/Canada		3,440		272,935
Canadian National Railway Co.		6,960		447,025
Canadian Natural Resources Ltd.		9,600		298,013
Canadian Pacific Railway Ltd.		1,360		208,190
Canadian Tire Corp. Ltd. Class A		760		77,810


14		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
Canadian Utilities Ltd. Class A		1,640	$	46,998
Cenovus Energy Inc.		8,160		117,855
CGI Group Inc. Class A^a		2,400		116,758
CI Financial Corp.		2,960		57,912
Constellation Software Inc./Canada		240		104,663
Crescent Point Energy Corp.		5,120		77,265
Enbridge Inc.		8,120		320,084
Encana Corp.		8,800		83,972
Fairfax Financial Holdings Ltd.		240		135,767
Finning International Inc.		2,840		50,347
Fortis Inc./Canada		3,040		95,576
Franco-Nevada Corp.		1,760		122,914
George Weston Ltd.		720		61,955
Gildan Activewear Inc.		3,040		89,459
Goldcorp Inc.		7,760		118,052
Great-West Lifeco Inc.		2,400		57,291
Husky Energy Inc.		3,181		39,082
IGM Financial Inc.		1,160		32,801
Imperial Oil Ltd.		3,040		92,703
Intact Financial Corp.		1,480		107,364
Inter Pipeline Ltd.		4,016		87,296
Loblaw Companies Ltd.		2,440		132,689
Magna International Inc. Class A		3,680		148,120
Manulife Financial Corp.		15,400		209,981
Metro Inc.		3,840		130,356
National Bank of Canada		3,600		126,462
Onex Corp.		1,360		83,017
Open Text Corp.		1,480		93,038
Pembina Pipeline Corp.		4,880		146,766
Potash Corp. of Saskatchewan Inc.		7,480		135,456
Power Corp. of Canada		3,280		69,297
Power Financial Corp.		2,320		53,418
PrairieSky Royalty Ltd.		2,040		39,959
Restaurant Brands International Inc.		2,120		101,100
RioCan REIT		3,200		67,168
Rogers Communications Inc. Class B		3,320		142,107
Royal Bank of Canada		12,080		750,644
Saputo Inc.		3,240		107,667
Shaw Communications Inc. Class B		3,406		68,091
Silver Wheaton Corp.		5,200		131,739
SNC-Lavalin Group Inc.		1,880		80,098
Sun Life Financial Inc.		5,000		157,692
Suncor Energy Inc.		14,170		384,044
TELUS Corp.		64		2,098


Security	Shares		Value
Thomson Reuters Corp.		3,040	$	125,835
Toronto-Dominion Bank (The)		15,440		688,654
Tourmaline Oil Corp.^a		2,360		66,337
TransCanada Corp.		7,320		331,786
Valeant Pharmaceuticals International Inc.^a,b		3,320		96,383
Vermilion Energy Inc.		1,520		54,901

				10,149,301
DENMARK — 0.70%
AP Moeller – Maersk A/S Class A		120		170,772
Carlsberg A/S Class B		1,080		101,089
Coloplast A/S Class B		1,280		97,208
Danske Bank A/S		6,920		202,756
DSV A/S		2,756		136,468
Novo Nordisk A/S Class B		16,560		774,895
Novozymes A/S Class B		2,760		119,484
Pandora A/S		1,246		154,757
Vestas Wind Systems A/S		2,176		180,232
William Demant Holding A/S^a,b		3,800		79,268

				2,016,929
FINLAND — 0.34%
Elisa OYJ		1,960		68,850
Fortum OYJ		3,520		54,258
Kone OYJ Class B		3,360		168,586
Metso OYJ		1,440		40,256
Nokia OYJ		49,742		279,217
Sampo OYJ Class A		3,360		144,037
Stora Enso OYJ Class R		6,480		57,123
UPM-Kymmene OYJ		5,320		106,712
Wartsila OYJ Abp		1,760		72,292

				991,331
FRANCE — 3.52%
Accor SA		2,080		78,405
Air Liquide SA		2,934		321,317
Airbus Group SE		5,200		302,837
Alstom SA^a		2,480		65,503
ArcelorMittal^a		17,565		103,508
Atos SE		1,080		106,103
AXA SA		15,920		333,695
BNP Paribas SA		8,841		449,057
Bollore SA^b		13,200		47,603
Bouygues SA		1,840		58,262
Bureau Veritas SA		3,281		70,234
Capgemini SA		1,520		147,858


SCHEDULES OF INVESTMENTS			15

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
Carrefour SA		5,040	$	126,692
Casino Guichard Perrachon SA^b		640		31,609
Christian Dior SE		560		96,674
Cie. de Saint-Gobain		4,160		182,177
Cie. Generale des Etablissements Michelin Class B		1,720		182,561
Credit Agricole SA		8,920		84,345
Danone SA		5,040		382,322
Dassault Systemes		1,480		124,483
Edenred		2,200		47,829
Engie SA		10,880		173,160
Essilor International SA		1,800		228,241
Eutelsat Communications SA		2,040		39,591
Groupe Eurotunnel SE Registered		7,560		83,021
Hermes International		289		121,861
Iliad SA		320		65,881
Ingenico Group SA		560		60,212
Kering		720		136,283
Klepierre		2,744		128,388
L’Oreal SA		2,080		392,316
Lagardere SCA		1,560		37,989
Legrand SA		2,520		150,745
LVMH Moet Hennessy Louis Vuitton SE		2,320		391,978
Orange SA		16,720		254,934
Pernod Ricard SA		1,920		220,041
Peugeot SA^a		4,760		70,112
Publicis Groupe SA		1,680		124,522
Renault SA		1,734		141,579
Safran SA		2,880		201,052
Sanofi		10,040		772,344
Schneider Electric SE		4,779		325,158
SCOR SE		1,760		51,700
SES SA		3,360		77,052
SFR Group SA		1,440		38,251
Societe BIC SA		400		58,294
Societe Generale SA		6,440		234,148
Sodexo SA		1,000		115,663
STMicroelectronics NV		6,280		46,883
Suez		2,840		42,907
Technip SA		1,360		80,234
Thales SA		1,280		110,669
Total SA		18,160		864,648
Unibail-Rodamco SE^b		858		235,077


Security	Shares		Value
Valeo SA		2,520	$	130,200
Veolia Environnement SA		4,200		89,181
Vinci SA		4,280		324,098
Vivendi SA		9,760		188,924

				10,150,411
GERMANY — 3.14%
adidas AG		2,080		345,057
Allianz SE Registered		3,800		565,217
BASF SE		7,680		623,557
Bayer AG Registered		7,160		765,308
Bayerische Motoren Werke AG		2,920		253,700
Beiersdorf AG		1,121		104,138
Brenntag AG		2,160		117,374
Commerzbank AG		12,521		87,939
Continental AG		978		204,670
Daimler AG Registered		7,680		531,007
Deutsche Bank AG Registered^a		12,320		181,260
Deutsche Boerse AG New^a		1,960		167,214
Deutsche Post AG Registered		9,160		289,735
Deutsche Telekom AG Registered		27,161		452,851
E.ON SE		16,600		152,657
Fresenius Medical Care AG & Co. KGaA		2,200		194,403
Fresenius SE & Co. KGaA		3,600		262,301
GEA Group AG		2,440		130,755
Hannover Rueck SE		800		81,616
HeidelbergCement AG		1,600		148,387
Henkel AG & Co. KGaA		1,160		130,035
Infineon Technologies AG		11,400		191,657
Lanxess AG		1,480		78,857
Linde AG		1,760		300,989
MAN SE		720		74,785
Merck KGaA		1,200		126,085
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered		1,440		259,896
Osram Licht AG		1,481		77,426
ProSiebenSat.1 Media SE Registered		2,171		93,236
QIAGEN NV^a,b		3,920		103,646
RWE AG^a		4,720		77,092
SAP SE		8,600		754,383
Siemens AG Registered		6,800		810,743
ThyssenKrupp AG		4,200		97,742
Vonovia SE		4,920		191,157
Zalando SE^a,b,c		1,240		47,349

				9,074,224


16		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
HONG KONG — 1.27%
AIA Group Ltd.		120,000	$	758,823
Bank of East Asia Ltd. (The)^b		40,000		161,666
BOC Hong Kong Holdings Ltd.		60,000		210,011
Cheung Kong Property Holdings Ltd.		40,000		281,046
CK Hutchison Holdings Ltd.^b		20,000		257,066
CLP Holdings Ltd.		20,000		205,112
Galaxy Entertainment Group Ltd.^b		40,000		130,209
Hang Seng Bank Ltd.^b		16,000		280,736
Hong Kong & China Gas Co. Ltd.^b		176,271		336,328
Hong Kong Exchanges and Clearing Ltd.^b		9,300		227,442
Li & Fung Ltd.^b		88,000		45,266
Link REIT		40,000		290,843
MTR Corp. Ltd.		40,000		218,648
New World Development Co. Ltd.		98,333		123,348
Sands China Ltd.^b		32,000		125,826

				3,652,370
IRELAND — 0.19%
Bank of Ireland^a		255,240		57,423
CRH PLC		6,800		229,855
Kerry Group PLC Class A		1,760		149,328
Paddy Power Betfair PLC		812		96,903

				533,509
ISRAEL — 0.27%
Bank Hapoalim BM		25,040		134,108
Check Point Software Technologies Ltd.^a,b		1,040		79,810
Mobileye NV^a,b		1,640		80,179
Nice Ltd.		1,120		76,357
Teva Pharmaceutical Industries Ltd.		8,200		415,544

				785,998
ITALY — 0.71%
Assicurazioni Generali SpA		10,080		127,983
Atlantia SpA		4,720		121,224
CNH Industrial NV		10,560		77,036
Enel SpA		62,780		276,748
Eni SpA		21,400		322,716
Ferrari NV		1,290		62,067
Fiat Chrysler Automobiles NV^b		11,000		75,897
Intesa Sanpaolo SpA		113,360		268,922
Leonardo-Finmeccanica SpA^a		3,996		45,529
Luxottica Group SpA		1,760		84,779
Saipem SpA^a,b		52,918		24,217


Security	Shares		Value
Snam SpA		23,520	$	130,191
Telecom Italia SpA/Milano^a,b		122,480		110,971
Tenaris SA		5,480		75,193
Terna Rete Elettrica Nazionale SpA		19,720		101,733
UniCredit SpA		46,640		119,786
Unione di Banche Italiane SpA^b		12,973		34,850

				2,059,842
JAPAN — 8.78%
Aeon Co. Ltd.		8,000		110,021
Aisin Seiki Co. Ltd.		4,000		188,911
Ajinomoto Co. Inc.		8,000		169,614
ANA Holdings Inc.		40,000		108,783
Asahi Group Holdings Ltd.		8,000		261,884
Astellas Pharma Inc.		24,000		366,723
Bridgestone Corp.		8,000		274,955
Canon Inc.		12,000		343,868
Casio Computer Co. Ltd.^b		4,300		60,737
Chubu Electric Power Co. Inc.		12,000		162,305
Chugai Pharmaceutical Co. Ltd.		4,000		125,489
Chugoku Electric Power Co. Inc. (The)		12,000		144,091
Concordia Financial Group Ltd.^a		16,000		82,541
Dai-ichi Life Insurance Co. Ltd. (The)		10,800		150,303
Daiichi Sankyo Co. Ltd.		8,900		204,312
Daikin Industries Ltd.		4,000		370,822
Daiwa House Industry Co. Ltd.		8,000		206,623
Denso Corp.		4,000		165,205
Dentsu Inc.		4,000		220,042
East Japan Railway Co.		4,000		342,631
Eisai Co. Ltd.		4,000		233,190
FANUC Corp.		1,100		187,490
Fast Retailing Co. Ltd.		400		140,533
Fuji Heavy Industries Ltd.		8,000		316,953
FUJIFILM Holdings Corp.		8,000		300,633
Fujitsu Ltd.		40,000		203,103
Hakuhodo DY Holdings Inc.		8,000		86,934
Hitachi Ltd.		40,000		191,811
Honda Motor Co. Ltd.		16,000		490,356
Hoya Corp.		4,000		155,035
Hulic Co. Ltd.		8,000		75,796
Iida Group Holdings Co. Ltd.		4,000		74,946
INPEX Corp.		16,000		138,970
ITOCHU Corp.		20,000		236,090
Japan Airlines Co. Ltd.		4,000		121,700
Japan Exchange Group Inc.		12,000		187,480


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
Japan Retail Fund Investment Corp.		80	$	179,668
Japan Tobacco Inc.		12,000		464,988
JFE Holdings Inc.		8,000		124,252
JTEKT Corp.		4,000		62,184
JX Holdings Inc.		36,000		134,659
Kansai Electric Power Co. Inc. (The)^a,b		12,000		102,870
Kao Corp.		4,000		207,937
KDDI Corp.		20,000		587,035
Kirin Holdings Co. Ltd.		12,000		195,659
Kobe Steel Ltd.		80,000		74,250
Komatsu Ltd.		12,000		262,368
Konica Minolta Inc.		12,000		108,126
Kubota Corp.		8,000		117,330
Kuraray Co. Ltd.		12,000		171,470
Kyocera Corp.		4,000		190,110
Kyushu Electric Power Co. Inc.		8,000		74,482
Kyushu Financial Group Inc.		16,000		94,823
Marubeni Corp.		32,000		159,544
Marui Group Co. Ltd.		4,000		48,765
Mazda Motor Corp.		8,000		131,909
Mitsubishi Chemical Holdings Corp.		28,000		176,714
Mitsubishi Corp.		16,000		333,427
Mitsubishi Electric Corp.		8,000		104,452
Mitsubishi Estate Co. Ltd.		5,000		94,600
Mitsubishi Heavy Industries Ltd.		40,000		174,177
Mitsubishi Motors Corp.		12,000		54,875
Mitsubishi UFJ Financial Group Inc.		120,600		657,712
Mitsubishi UFJ Lease & Finance Co. Ltd.		28,000		131,290
Mitsui & Co. Ltd.		20,100		267,585
Mitsui Fudosan Co. Ltd.		4,000		86,160
Mizuho Financial Group Inc.		244,000		423,907
MS&AD Insurance Group Holdings Inc.		5,900		168,413
Murata Manufacturing Co. Ltd.		1,400		188,205
Nagoya Railroad Co. Ltd.		40,000		196,065
NEC Corp.		30,000		76,280
Nidec Corp.		4,000		360,497
Nikon Corp.^b		8,000		117,484
Nintendo Co. Ltd.		500		109,610
Nippon Paint Holdings Co. Ltd.		4,000		143,278
Nippon Steel & Sumitomo Metal Corp.		8,047		170,844
Nippon Telegraph & Telephone Corp.		8,000		351,602
Nissan Motor Co. Ltd.		28,000		274,762


Security	Shares		Value
Nitto Denko Corp.		4,000	$	273,176
Nomura Holdings Inc.		48,000		226,136
Nomura Real Estate Master Fund Inc.		80		132,025
NTT DOCOMO Inc.		16,000		402,649
Olympus Corp.		4,000		130,904
Omron Corp.		4,000		135,737
Ono Pharmaceutical Co. Ltd.		4,000		104,297
Oriental Land Co. Ltd./Japan		4,000		234,311
ORIX Corp.		16,000		230,096
Otsuka Holdings Co. Ltd.		4,000		173,365
Panasonic Corp.		24,000		246,184
Rakuten Inc.		12,000		151,283
Resona Holdings Inc.		32,000		146,395
Ricoh Co. Ltd.		12,000		108,242
Sekisui House Ltd.		8,000		128,854
Seven & I Holdings Co. Ltd.		8,000		337,294
Seven Bank Ltd.		24,000		84,923
Shin-Etsu Chemical Co. Ltd.		4,000		293,672
Shionogi & Co. Ltd.		4,000		178,624
Shiseido Co. Ltd.		4,000		100,585
SoftBank Group Corp.		8,000		522,531
Sompo Japan Nipponkoa Holdings Inc.		4,000		128,235
Sony Corp.		12,000		385,750
Sumitomo Corp.		20,000		216,948
Sumitomo Electric Industries Ltd.		12,000		177,909
Sumitomo Mitsui Financial Group Inc.		12,000		420,090
Sumitomo Mitsui Trust Holdings Inc.		40,000		143,201
Sumitomo Realty & Development Co. Ltd.		2,000		52,796
Suzuki Motor Corp.		4,000		132,605
Sysmex Corp.		4,000		257,940
T&D Holdings Inc.		12,000		136,956
Takeda Pharmaceutical Co. Ltd.		8,000		352,685
Terumo Corp.		4,000		155,653
Tohoku Electric Power Co. Inc.		8,000		100,314
Tokio Marine Holdings Inc.		8,000		314,323
Tokyo Electric Power Co. Holdings Inc.^a		20,000		80,630
Tokyo Gas Co. Ltd.		40,000		171,509
Tokyu Fudosan Holdings Corp.		16,000		89,099
Toshiba Corp.^a		40,000		126,534
Toyota Motor Corp.		24,000		1,447,402
Unicharm Corp.		8,000		194,364
USS Co. Ltd.		4,000		63,963


18		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
Yahoo Japan Corp.		28,100	$	114,644
Yamada Denki Co. Ltd.		20,000		93,585
Yamato Holdings Co. Ltd.		8,000		188,834
Yokogawa Electric Corp.		8,000		102,480

				25,344,980
NETHERLANDS — 1.22%
Aegon NV		16,640		68,089
AerCap Holdings NV^a,b		2,040		81,539
Akzo Nobel NV		2,401		161,998
Altice NV Class A^a,b		2,748		45,679
Altice NV Class B^a		2,240		37,185
ASML Holding NV		3,120		331,401
Gemalto NV^b		1,040		72,336
Heineken Holding NV		1,160		93,098
Heineken NV		2,120		189,128
ING Groep NV		32,320		403,879
Koninklijke Ahold Delhaize NV		13,541		323,720
Koninklijke DSM NV		1,801		125,346
Koninklijke KPN NV		32,000		104,318
Koninklijke Philips NV		8,895		257,973
NXP Semiconductors NV^a		2,640		232,373
Randstad Holding NV		1,375		64,740
RELX NV		8,445		149,549
Unilever NV CVA		13,600		622,769
Wolters Kluwer NV		4,040		169,296

				3,534,416
NEW ZEALAND — 0.06%
Fletcher Building Ltd.		12,720		97,820
Spark New Zealand Ltd.		25,800		71,222

				169,042
NORWAY — 0.21%
DNB ASA		9,920		120,475
Norsk Hydro ASA		16,720		71,001
Orkla ASA		6,960		63,666
Statoil ASA		10,520		166,229
Telenor ASA		6,360		110,942
Yara International ASA		2,120		75,182

				607,495
PORTUGAL — 0.05%
EDP – Energias de Portugal SA		25,787		86,305
Galp Energia SGPS SA		3,923		56,931

				143,236


Security	Shares		Value
SINGAPORE — 0.45%
Ascendas REIT^b		66,565	$	119,664
CapitaLand Ltd.^b		56,000		126,147
CapitaLand Mall Trust^b		88,000		139,473
DBS Group Holdings Ltd.^b		14,400		158,386
Genting Singapore PLC		136,000		71,849
Global Logistic Properties Ltd.^b		56,000		74,579
Hutchison Port Holdings Trust		112,000		48,160
Oversea-Chinese Banking Corp. Ltd.^b		24,000		151,271
Singapore Telecommunications Ltd.		88,000		259,574
United Overseas Bank Ltd.		12,000		158,580

				1,307,683
SPAIN — 1.11%
Abertis Infraestructuras SA		6,863		106,132
ACS Actividades de Construccion y Servicios SA		2,628		74,359
Aena SA^c		760		107,288
Amadeus IT Holding SA Class A		4,440		203,711
Banco Bilbao Vizcaya Argentaria SA		53,903		334,872
Banco de Sabadell SA		54,609		73,897
Banco Popular Espanol SA^b		34,679		46,851
Banco Santander SA		121,440		543,720
Bankia SA		54,320		45,737
Bankinter SA		9,720		71,189
CaixaBank SA		23,465		63,062
Distribuidora Internacional de Alimentacion SA		7,640		46,587
Enagas SA		193		5,659
Endesa SA		2,544		51,737
Ferrovial SA		5,127		100,871
Gas Natural SDG SA		2,280		46,991
Grifols SA		3,360		71,064
Iberdrola SA		44,663		293,486
Industria de Diseno Textil SA		9,200		325,480
International Consolidated Airlines Group SA		12,920		64,926
Red Electrica Corp. SA		625		13,438
Repsol SA		10,866		145,708
Telefonica SA		35,535		357,381

				3,194,146
SWEDEN — 1.03%
Alfa Laval AB		3,720		57,692
Assa Abloy AB		11,040		223,223
Atlas Copco AB Class A		5,240		148,354


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
Atlas Copco AB Class B		4,480	$	114,979
Boliden AB		3,604		76,191
Electrolux AB Class B		2,280		59,287
Hennes & Mauritz AB Class B		8,000		243,473
Hexagon AB Class B		2,600		105,687
Investor AB Class B		4,920		173,258
Kinnevik AB Class B		2,560		62,926
Lundin Petroleum AB^a		3,000		52,718
Millicom International Cellular SA SDR		682		34,872
Nordea Bank AB		21,640		211,204
Sandvik AB		10,445		113,208
Skandinaviska Enskilda Banken AB Class A		12,640		123,365
Skanska AB Class B		4,480		98,053
SKF AB Class B		4,000		67,305
Svenska Cellulosa AB SCA Class B		5,360		164,439
Svenska Handelsbanken AB Class A		13,360		172,143
Swedbank AB Class A		7,400		169,902
Swedish Match AB		2,600		92,529
Telefonaktiebolaget LM Ericsson Class B		24,960		177,685
Telia Co. AB		15,960		71,966
Volvo AB Class B		14,011		150,388

				2,964,847
SWITZERLAND — 3.32%
ABB Ltd. Registered		19,040		412,948
Actelion Ltd. Registered		1,120		186,600
Adecco Group AG Registered		1,440		82,952
Aryzta AG		1,120		44,661
Baloise Holding AG Registered		760		90,499
Cie. Financiere Richemont SA Class A Registered		4,360		251,381
Credit Suisse Group AG Registered		15,688		204,532
Geberit AG Registered		480		209,577
Givaudan SA Registered		120		248,293
Julius Baer Group Ltd.		2,360		99,031
Kuehne + Nagel International AG Registered		760		106,201
LafargeHolcim Ltd. Registered		4,320		229,289
Nestle SA Registered		26,760		2,132,521
Novartis AG Registered		19,160		1,509,322
Partners Group Holding AG		320		146,883
Roche Holding AG		5,920		1,444,828


Security	Shares		Value
Schindler Holding AG Participation Certificates		480	$	90,426
Schindler Holding AG Registered		480		90,768
SGS SA Registered		80		175,950
Sonova Holding AG Registered		720		99,732
Swatch Group AG (The) Bearer^b		360		92,734
Swiss Life Holding AG Registered		360		90,133
Swiss Prime Site AG Registered		606		53,350
Swiss Re AG		2,880		243,285
Swisscom AG Registered		200		95,649
Syngenta AG Registered		840		366,162
UBS Group AG		31,650		458,056
Zurich Insurance Group AG		1,240		317,273

				9,573,036
UNITED KINGDOM — 7.02%
3i Group PLC		8,271		66,566
Aberdeen Asset Management PLC		10,680		44,844
Admiral Group PLC		2,520		67,659
Aggreko PLC		3,295		43,975
Anglo American PLC^a		13,640		139,306
Antofagasta PLC		6,240		40,429
ARM Holdings PLC		13,480		299,425
Associated British Foods PLC		3,400		135,415
AstraZeneca PLC		10,680		686,651
Auto Trader Group PLC^c		14,760		72,125
Aviva PLC		33,172		186,120
Babcock International Group PLC		5,320		72,881
BAE Systems PLC		29,800		210,171
Barclays PLC		145,200		327,565
BHP Billiton PLC		19,120		247,885
BP PLC		161,640		905,863
British American Tobacco PLC		16,280		1,007,460
British Land Co. PLC (The)		10,760		93,432
BT Group PLC		75,280		380,919
Bunzl PLC		5,040		155,649
Burberry Group PLC		4,400		75,145
Capita PLC		6,120		82,959
Carnival PLC		1,840		88,056
Centrica PLC		47,560		144,885
Cobham PLC		21,059		44,598
Compass Group PLC		15,690		296,319
Croda International PLC		1,942		84,188
Diageo PLC		21,520		594,275
Experian PLC		9,440		187,184


20		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
G4S PLC		19,520	$	58,954
GKN PLC		18,680		76,087
GlaxoSmithKline PLC		41,480		890,409
Glencore PLC		109,844		250,393
Hammerson PLC		11,000		83,559
HSBC Holdings PLC		167,960		1,241,331
ICAP PLC		6,400		40,091
IMI PLC		3,360		46,514
Imperial Brands PLC		8,520		445,620
Inmarsat PLC		5,200		52,508
InterContinental Hotels Group PLC		2,334		99,684
Intertek Group PLC		2,640		120,705
Intu Properties PLC^b		12,299		50,901
Investec PLC		7,960		46,997
ITV PLC		36,600		96,206
J Sainsbury PLC^b		12,974		40,832
Johnson Matthey PLC		2,082		91,020
Kingfisher PLC		20,640		100,316
Land Securities Group PLC		9,040		129,526
Legal & General Group PLC		50,120		138,045
Liberty Global PLC LiLAC Class C^a		1,000		28,560
Lloyds Banking Group PLC		542,040		421,331
London Stock Exchange Group PLC		3,404		122,824
Marks & Spencer Group PLC		14,880		67,176
Meggitt PLC		10,400		63,787
National Grid PLC		32,160		440,785
Next PLC		1,480		107,094
Old Mutual PLC		47,200		119,988
Pearson PLC		7,680		87,056
Prudential PLC		22,640		404,300
Randgold Resources Ltd.		896		83,905
Reckitt Benckiser Group PLC		5,640		543,218
RELX PLC		10,880		205,906
Rio Tinto PLC		10,960		330,293
Rolls-Royce Holdings PLC		17,040		171,843
Royal Bank of Scotland Group PLC^a,b		34,800		91,839
Royal Dutch Shell PLC Class A		35,788		872,045
Royal Dutch Shell PLC Class B		32,483		826,184
RSA Insurance Group PLC		11,737		76,229
SABMiller PLC		8,161		470,078
Sage Group PLC (The)		13,320		126,478
Segro PLC		13,360		79,299
Severn Trent PLC		3,440		107,273
Shire PLC		7,938		494,972


Security	Shares		Value
Sky PLC		8,760	$	97,406
Smith & Nephew PLC		8,360		134,564
Smiths Group PLC		5,080		89,220
SSE PLC		8,218		161,877
Standard Chartered PLC^a		28,321		238,131
Standard Life PLC		16,225		77,456
Tate & Lyle PLC		7,840		75,316
Taylor Wimpey PLC		36,440		76,981
Tesco PLC^a		76,600		166,887
TUI AG		5,360		74,622
Unilever PLC		11,240		519,505
United Utilities Group PLC		7,000		89,066
Vodafone Group PLC		224,723		676,494
Weir Group PLC (The)		2,880		56,843
Whitbread PLC		2,080		113,653
Wolseley PLC		2,611		149,780
WPP PLC		10,920		251,142

				20,273,053
UNITED STATES — 59.29%
3M Co.		5,240		939,218
Abbott Laboratories		12,280		516,006
AbbVie Inc.		13,800		884,580
Accenture PLC Class A		5,320		611,800
Activision Blizzard Inc.		5,281		218,475
Acuity Brands Inc.		440		121,053
Adobe Systems Inc.^a		4,360		446,072
Advance Auto Parts Inc.		720		113,314
AES Corp./VA		5,880		70,972
Aetna Inc.		2,920		341,990
Affiliated Managers Group Inc.^a		720		102,276
Aflac Inc.		3,400		252,212
AGCO Corp.		1,120		54,365
Agilent Technologies Inc.		3,280		154,094
Air Products & Chemicals Inc.		1,840		286,341
Akamai Technologies Inc.^a		1,720		94,428
Albemarle Corp.		1,201		96,044
Alcoa Inc.		12,440		125,395
Alexion Pharmaceuticals Inc.^a		1,960		246,686
Alkermes PLC^a		1,680		73,534
Alleghany Corp.^a		111		59,518
Allergan PLC^a		3,400		797,436
Alliance Data Systems Corp.^a		520		106,382
Alliant Energy Corp.		2,920		110,814
Allstate Corp. (The)		3,440		237,222


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
Alnylam Pharmaceuticals Inc.^a		760	$	53,086
Alphabet Inc. Class A^a		2,440		1,927,234
Alphabet Inc. Class C^a		2,720		2,086,376
Altria Group Inc.		16,681		1,102,447
Amazon.com Inc.^a		3,480		2,676,677
Ameren Corp.		2,480		122,562
American Airlines Group Inc.		1,680		60,984
American Capital Agency Corp.		3,040		58,702
American Electric Power Co. Inc.		4,240		273,777
American Express Co.		7,160		469,553
American International Group Inc.		9,320		557,616
American Tower Corp.		3,600		408,168
American Water Works Co. Inc.		2,520		186,455
Ameriprise Financial Inc.		1,760		177,901
AmerisourceBergen Corp.		1,680		146,110
AMETEK Inc.		2,680		130,650
Amgen Inc.		6,320		1,074,779
Amphenol Corp. Class A		2,720		169,483
Anadarko Petroleum Corp.		4,320		230,990
Analog Devices Inc.		2,763		172,853
Annaly Capital Management Inc.		8,240		88,250
ANSYS Inc.^a		1,081		102,792
Anthem Inc.		2,320		290,186
Aon PLC		2,560		285,056
Apache Corp.		3,360		166,992
Apple Inc.		47,600		5,050,360
Applied Materials Inc.		10,880		324,659
Arch Capital Group Ltd.^a		1,760		142,454
Archer-Daniels-Midland Co.		5,200		227,552
Arrow Electronics Inc.^a		1,080		71,096
Assurant Inc.		800		71,640
AT&T Inc.		52,040		2,127,395
Autodesk Inc.^a		2,160		145,584
Autoliv Inc.		880		93,438
Automatic Data Processing Inc.		3,840		344,870
AutoZone Inc.^a		320		237,376
AvalonBay Communities Inc.		1,120		196,011
Avery Dennison Corp.		1,280		99,123
Avnet Inc.		1,400		58,352
Axis Capital Holdings Ltd.		1,120		63,694
Baker Hughes Inc.		3,640		178,833
Ball Corp.		1,180		93,444
Ball Corp. New		500		39,595
Bank of America Corp.		87,840		1,417,738


Security	Shares		Value
Bank of New York Mellon Corp. (The)		9,800	$	408,366
Baxter International Inc.		4,560		213,089
BB&T Corp.		6,161		237,198
Becton Dickinson and Co.		1,728		306,219
Bed Bath & Beyond Inc.		1,720		79,756
Berkshire Hathaway Inc. Class B^a		9,840		1,480,822
Best Buy Co. Inc.		3,000		115,440
Biogen Inc.^a		1,880		574,584
BioMarin Pharmaceutical Inc.^a		1,560		146,468
BlackRock Inc.^d		1,080		402,635
Boeing Co. (The)		5,320		688,674
BorgWarner Inc.		1,960		67,404
Boston Properties Inc.		1,520		212,998
Boston Scientific Corp.^a		13,040		310,613
Bristol-Myers Squibb Co.		14,360		824,120
Broadcom Ltd.		3,400		599,828
Brown-Forman Corp. Class B		2,240		108,752
Bunge Ltd.		1,400		89,460
CA Inc.		3,080		104,443
Cabot Oil & Gas Corp.		4,160		102,461
Calpine Corp.^a		3,760		46,925
Campbell Soup Co.		2,360		143,299
Capital One Financial Corp.		4,680		335,088
Cardinal Health Inc.		2,880		229,450
CarMax Inc.^a,b		2,040		120,258
Carnival Corp.		3,440		164,432
Caterpillar Inc.		4,840		396,638
CBRE Group Inc. Class A^a		3,560		106,408
CBS Corp. Class B NVS		4,320		220,450
CDK Global Inc.		1,520		88,130
Celanese Corp. Series A		1,560		100,511
Celgene Corp.^a		6,640		708,754
Centene Corp.^a		1,440		98,338
CenterPoint Energy Inc.		3,760		84,487
CenturyLink Inc.		4,440		123,432
Cerner Corp.^a		2,720		175,549
CF Industries Holdings Inc.		2,400		62,400
CH Robinson Worldwide Inc.		1,520		105,518
Charles Schwab Corp. (The)		10,880		342,285
Charter Communications Inc.^a		1,831		470,951
Cheniere Energy Inc.^a		2,000		85,800
Chevron Corp.		16,200		1,629,396
Chipotle Mexican Grill Inc.^a,b		280		115,844
Chubb Ltd.		3,809		483,476


22		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
Church & Dwight Co. Inc.		1,360	$	135,211
Cigna Corp.		2,320		297,563
Cimarex Energy Co.		880		116,318
Cincinnati Financial Corp.		1,520		117,207
Cintas Corp.		1,400		164,514
Cisco Systems Inc.		42,040		1,321,738
CIT Group Inc.		2,120		78,186
Citigroup Inc.		25,000		1,193,500
Citizens Financial Group Inc.		5,028		124,544
Citrix Systems Inc.^a		1,720		149,984
Clorox Co. (The)		1,201		157,379
CME Group Inc.		2,760		299,046
CMS Energy Corp.		2,840		119,195
Coach Inc.		2,720		103,850
Coca-Cola Co. (The)		34,040		1,478,357
Cognizant Technology Solutions Corp. Class A^a		5,360		307,878
Colgate-Palmolive Co.		6,880		511,459
Comcast Corp. Class A		20,680		1,349,577
Comerica Inc.		1,920		90,797
ConAgra Foods Inc.		3,920		182,711
Concho Resources Inc.^a		1,320		170,544
ConocoPhillips		10,400		426,920
Consolidated Edison Inc.		2,560		192,640
Constellation Brands Inc. Class A		1,680		275,604
Continental Resources Inc./OK^a,b		1,248		59,854
Core Laboratories NV		560		62,597
Corning Inc.		10,080		228,715
Costco Wholesale Corp.		3,760		609,458
CR Bard Inc.		720		159,005
Crown Castle International Corp.		2,840		269,147
Crown Holdings Inc.^a		1,920		104,122
CSX Corp.		8,480		239,814
Cummins Inc.		1,640		206,000
CVS Health Corp.		9,200		859,280
Danaher Corp.		5,240		426,588
Darden Restaurants Inc.		1,400		86,296
DaVita HealthCare Partners Inc.^a		1,600		103,408
Deere & Co.		2,440		206,302
Delphi Automotive PLC		2,240		158,278
DENTSPLY SIRONA Inc.		2,600		159,796
Devon Energy Corp.		4,160		180,253
Dick’s Sporting Goods Inc.		1,000		58,600
Digital Realty Trust Inc.^b		1,560		154,580


Security	Shares		Value
Discover Financial Services		4,240	$	254,400
Discovery Communications Inc. Class A^a		1,360		34,694
Discovery Communications Inc. Class C NVS^a		2,600		64,532
DISH Network Corp. Class A^a		2,040		102,469
Dollar General Corp.		2,760		202,612
Dollar Tree Inc.^a		2,120		175,324
Dominion Resources Inc./VA		4,840		358,934
Dover Corp.		1,800		130,500
Dow Chemical Co. (The)		9,720		521,381
DR Horton Inc.		3,520		112,851
Dr Pepper Snapple Group Inc.		2,080		194,896
DTE Energy Co.		1,560		144,924
Duke Energy Corp.		5,560		442,910
Duke Realty Corp.		4,960		139,475
Dun & Bradstreet Corp. (The)		560		77,084
Eastman Chemical Co.		1,520		103,193
Eaton Corp. PLC		3,920		260,837
Eaton Vance Corp. NVS		1,600		64,048
eBay Inc.^a		9,560		307,450
Ecolab Inc.		2,520		310,086
Edgewell Personal Care Co.^a		500		40,005
Edison International		3,160		229,795
Edwards Lifesciences Corp.^a		2,160		248,746
EI du Pont de Nemours & Co.		7,600		528,960
Electronic Arts Inc.^a		2,920		237,192
Eli Lilly & Co.		8,440		656,210
EMC Corp.		16,520		478,915
Emerson Electric Co.		5,640		297,115
Entergy Corp.		1,800		140,760
EOG Resources Inc.		4,800		424,752
EQT Corp.		1,520		108,680
Equifax Inc.		1,360		179,384
Equinix Inc.		640		235,936
Equity Residential		3,120		202,394
Essex Property Trust Inc.		680		154,428
Estee Lauder Companies Inc. (The) Class A		2,000		178,460
Everest Re Group Ltd.		313		60,528
Eversource Energy		2,800		151,116
Exelon Corp.		7,720		262,480
Expedia Inc.		1,080		117,850
Expeditors International of Washington Inc.		2,080		105,352


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
Express Scripts Holding Co.^a		5,840	$	424,568
Exxon Mobil Corp.		35,680		3,109,155
F5 Networks Inc.^a		760		93,275
Facebook Inc. Class A^a		19,720		2,487,086
Fastenal Co.		2,760		118,984
Federal Realty Investment Trust		1,000		159,000
FedEx Corp.		2,360		389,235
Fidelity National Information Services Inc.		2,880		228,470
Fifth Third Bancorp.		7,120		143,539
First Republic Bank/CA		1,600		123,136
FirstEnergy Corp.		3,960		129,611
Fiserv Inc.^a		2,560		263,808
FleetCor Technologies Inc.^a		841		138,092
Flextronics International Ltd.^a		6,920		91,621
FLIR Systems Inc.		1,760		54,261
Flowserve Corp.		1,800		87,066
Fluor Corp.		1,720		89,268
FMC Corp.		1,480		69,471
FMC Technologies Inc.^a		2,120		59,784
FNF Group		2,560		96,486
Ford Motor Co.		28,920		364,392
Fortive Corp.		2,820		148,529
Franklin Resources Inc.		3,480		127,020
Freeport-McMoRan Inc.		11,200		115,248
Frontier Communications Corp.		10,520		48,392
Gap Inc. (The)^b		2,360		58,693
Garmin Ltd.		1,080		53,006
General Dynamics Corp.		2,360		359,239
General Electric Co.		79,640		2,487,954
General Growth Properties Inc.		5,160		150,362
General Mills Inc.		5,160		365,431
General Motors Co.		10,720		342,182
Genuine Parts Co.		1,440		148,061
Gilead Sciences Inc.		11,520		902,938
Global Payments Inc.		1,720		130,634
Goldman Sachs Group Inc. (The)		3,200		542,272
Goodyear Tire & Rubber Co. (The)		2,640		77,484
H&R Block Inc.		2,240		48,518
Halliburton Co.		7,360		316,554
Hanesbrands Inc.		3,640		96,606
Harley-Davidson Inc.		1,640		86,428
Harman International Industries Inc.		680		57,589
Harris Corp.		1,200		111,576


Security	Shares		Value
Hartford Financial Services Group Inc. (The)		3,720	$	152,780
Hasbro Inc.		1,041		85,091
HCA Holdings Inc.^a		2,800		211,540
HCP Inc.		4,160		163,613
Helmerich & Payne Inc.		1,320		79,807
Henry Schein Inc.^a		920		150,687
Hershey Co. (The)		1,320		131,855
Hess Corp.		2,400		130,320
Hewlett Packard Enterprise Co.		15,680		336,806
HollyFrontier Corp.		1,760		45,549
Hologic Inc.^a		2,760		106,039
Home Depot Inc. (The)		10,800		1,448,496
Honeywell International Inc.		6,080		709,597
Hormel Foods Corp.		3,160		120,902
Host Hotels & Resorts Inc.		6,560		116,899
HP Inc.		15,640		224,747
Humana Inc.		1,280		228,749
IHS Markit Ltd.^a		3,400		126,888
Illinois Tool Works Inc.		3,160		375,566
Illumina Inc.^a		1,400		235,676
Incyte Corp.^a		1,640		133,004
Ingersoll-Rand PLC		2,560		174,054
Intel Corp.		39,800		1,428,422
Intercontinental Exchange Inc.		1,040		293,301
International Business Machines Corp.		7,720		1,226,554
International Flavors & Fragrances Inc.		920		127,494
International Paper Co.		3,520		170,685
Interpublic Group of Companies Inc. (The)		4,440		102,742
Intuit Inc.		2,400		267,480
Intuitive Surgical Inc.^a		320		219,654
Invesco Ltd.		4,200		130,998
Iron Mountain Inc.		2,419		92,914
Jacobs Engineering Group Inc.^a		1,600		84,304
Jazz Pharmaceuticals PLC^a		640		79,251
JB Hunt Transport Services Inc.		1,040		82,566
JM Smucker Co. (The)		1,160		164,476
Johnson & Johnson		23,600		2,816,424
Johnson Controls Inc.		5,320		233,442
JPMorgan Chase & Co.		30,880		2,084,400
Juniper Networks Inc.		3,560		82,165
Kansas City Southern		1,080		104,458
Kellogg Co.		2,360		194,016


24		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
KeyCorp		8,600	$	108,016
Kimberly-Clark Corp.		3,080		394,425
Kimco Realty Corp.		3,361		100,998
Kinder Morgan Inc./DE		16,480		360,088
KLA-Tencor Corp.		1,440		99,734
Kohl’s Corp.		1,880		83,434
Kraft Heinz Co. (The)		5,120		458,189
Kroger Co. (The)		8,200		262,318
L Brands Inc.		1,960		149,372
L-3 Communications Holdings Inc.		1,000		148,820
Laboratory Corp. of America Holdings^a		1,000		136,930
Lam Research Corp.		1,440		134,381
Las Vegas Sands Corp.		3,520		176,739
Leggett & Platt Inc.		1,960		102,861
Leucadia National Corp.		4,000		76,600
Level 3 Communications Inc.^a		2,880		142,934
Liberty Global PLC Series A^a		2,480		78,492
Liberty Global PLC Series C NVS^a		5,080		156,616
Liberty Interactive Corp. QVC Group Series A^a		4,800		101,424
Liberty Property Trust		1,800		74,214
Liberty SiriusXM Group Class C^a		3,080		102,348
Lincoln National Corp.		2,240		107,587
Linear Technology Corp.		2,400		139,776
LinkedIn Corp. Class A^a		1,080		208,170
LKQ Corp.^a		3,440		124,150
Lockheed Martin Corp.		2,342		569,036
Loews Corp.		2,800		117,208
Lowe’s Companies Inc.		8,040		615,542
lululemon athletica Inc.^a,b		1,120		85,691
LyondellBasell Industries NV Class A		3,200		252,448
M&T Bank Corp.		1,240		146,729
Macerich Co. (The)		1,160		94,992
Macy’s Inc.		2,560		92,621
Mallinckrodt PLC^a		1,121		83,559
ManpowerGroup Inc.		800		57,168
Marathon Oil Corp.		7,441		111,764
Marathon Petroleum Corp.		4,800		204,048
Markel Corp.^a		160		148,978
Marriott International Inc./MD Class A^b		1,840		131,247
Marsh & McLennan Companies Inc.		4,200		284,046
Martin Marietta Materials Inc.		680		124,460
Marvell Technology Group Ltd.		4,800		59,520
Masco Corp.		3,680		130,566


Security	Shares		Value
MasterCard Inc. Class A		8,160	$	788,501
Mattel Inc.		3,200		106,016
Maxim Integrated Products Inc.		2,640		107,501
McCormick & Co. Inc./MD		1,360		138,666
McDonald’s Corp.		7,720		892,895
McKesson Corp.		2,040		376,625
Mead Johnson Nutrition Co.		1,800		153,126
Medivation Inc.^a		1,760		141,786
Medtronic PLC		11,640		1,013,029
Merck & Co. Inc.		23,080		1,449,193
MetLife Inc.		7,760		336,784
MGM Resorts International^a		4,200		100,338
Michael Kors Holdings Ltd.^a		1,600		78,320
Microchip Technology Inc.^b		2,120		131,249
Micron Technology Inc.^a		10,120		166,879
Microsoft Corp.		64,480		3,705,021
Mohawk Industries Inc.^a		640		136,179
Molson Coors Brewing Co. Class B		1,680		171,898
Mondelez International Inc. Class A		13,600		612,272
Monsanto Co.		4,080		434,520
Monster Beverage Corp.^a		1,240		190,824
Moody’s Corp.		1,880		204,337
Morgan Stanley		12,840		411,650
Mosaic Co. (The)		3,240		97,427
Motorola Solutions Inc.		1,680		129,343
Murphy Oil Corp.		1,560		41,683
Mylan NV^a		3,800		160,968
Nasdaq Inc.		1,400		99,694
National Oilwell Varco Inc.		3,200		107,328
Navient Corp.		4,480		64,422
NetApp Inc.		2,320		80,249
Netflix Inc.^a		3,680		358,616
New York Community Bancorp. Inc.		4,480		67,693
Newell Brands Inc.		4,104		217,840
Newmont Mining Corp.		5,240		200,378
News Corp. Class A		3,403		47,846
NextEra Energy Inc.		3,858		466,587
Nielsen Holdings PLC		3,200		170,496
NIKE Inc. Class B		11,520		664,013
Noble Energy Inc.		3,800		131,024
Nordstrom Inc.^b		1,080		54,497
Norfolk Southern Corp.		2,600		244,140
Northern Trust Corp.		2,000		141,180
Northrop Grumman Corp.		1,760		373,243


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
NRG Energy Inc.		3,400	$	41,174
Nucor Corp.		2,800		135,828
NVIDIA Corp.		5,200		318,968
O’Reilly Automotive Inc.^a		960		268,752
Occidental Petroleum Corp.		6,480		497,988
Omnicom Group Inc.		2,280		196,376
ONEOK Inc.		1,962		91,998
Oracle Corp.		26,360		1,086,559
PACCAR Inc.		3,160		189,094
Palo Alto Networks Inc.^a		840		111,863
Parker-Hannifin Corp.		1,440		176,443
Patterson Companies Inc.		1,120		51,520
Paychex Inc.		3,040		184,437
PayPal Holdings Inc.^a		9,560		355,154
Pentair PLC		2,040		130,662
People’s United Financial Inc.		3,440		55,900
PepsiCo Inc.		11,880		1,268,190
Perrigo Co. PLC		1,240		112,828
Pfizer Inc.		52,600		1,830,480
PG&E Corp.		4,360		270,058
Philip Morris International Inc.		13,000		1,299,090
Phillips 66		4,040		316,938
Pinnacle West Capital Corp.		1,240		93,050
Pioneer Natural Resources Co.		1,440		257,832
PNC Financial Services Group Inc. (The)^d		4,120		371,212
PPG Industries Inc.		2,480		262,582
PPL Corp.		6,178		214,871
Praxair Inc.		2,400		292,896
Priceline Group Inc. (The)^a		440		623,361
Principal Financial Group Inc.		2,680		131,508
Procter & Gamble Co. (The)		22,720		1,983,683
Progressive Corp. (The)		5,161		168,042
Prologis Inc.		4,880		259,177
Prudential Financial Inc.		3,800		301,644
Public Service Enterprise Group Inc.		4,920		210,379
Public Storage		1,400		313,516
PulteGroup Inc.		3,600		76,932
PVH Corp.		800		86,208
Qorvo Inc.^a,b		1,373		78,851
QUALCOMM Inc.		12,640		797,205
Quest Diagnostics Inc.		1,440		119,261
Ralph Lauren Corp.		520		53,882
Range Resources Corp.		1,920		74,054


Security	Shares		Value
Raytheon Co.		2,760	$	386,759
Realty Income Corp.		2,520		165,640
Red Hat Inc.^a		1,800		131,364
Regency Centers Corp.		1,320		106,313
Regeneron Pharmaceuticals Inc.^a		680		266,934
Regions Financial Corp.		12,240		122,033
RenaissanceRe Holdings Ltd.		403		48,239
Republic Services Inc.		2,720		137,414
Reynolds American Inc.		7,526		373,064
Rite Aid Corp.^a		10,800		81,324
Robert Half International Inc.		1,680		64,394
Rockwell Automation Inc.		1,360		157,665
Rockwell Collins Inc.		1,440		120,514
Roper Technologies Inc.		1,080		191,754
Ross Stores Inc.		3,760		234,022
Royal Caribbean Cruises Ltd.		1,520		108,087
S&P Global Inc.		2,520		311,321
salesforce.com inc.^a		5,520		438,398
SBA Communications Corp. Class A^a		1,200		136,980
SCANA Corp.		1,560		110,214
Schlumberger Ltd.		11,651		920,429
Scripps Networks Interactive Inc. Class A		880		55,766
Seagate Technology PLC		2,680		90,423
SEI Investments Co.		2,160		99,576
Sempra Energy		2,040		213,445
ServiceNow Inc.^a		1,480		107,552
Sherwin-Williams Co. (The)		840		238,316
Signet Jewelers Ltd.		720		59,026
Simon Property Group Inc.		2,683		578,106
Sirius XM Holdings Inc.^a,b		30,160		124,862
Skyworks Solutions Inc.		1,680		125,765
SL Green Realty Corp.		840		98,885
Southern Co. (The)		7,720		396,268
Southwestern Energy Co.^a		4,280		59,535
Spectra Energy Corp.		6,120		217,994
Splunk Inc.^a		1,360		79,206
Sprint Corp.^a		9,886		61,095
St. Jude Medical Inc.		2,520		196,358
Stanley Black & Decker Inc.		1,520		188,100
Staples Inc.		6,040		51,702
Starbucks Corp.		12,520		704,000
Starwood Hotels & Resorts Worldwide Inc.		1,760		136,330


26		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
State Street Corp.		3,840	$	269,722
Stericycle Inc.^a		920		79,102
Stryker Corp.		2,880		333,101
SunTrust Banks Inc.		4,680		206,248
Symantec Corp.		6,280		151,536
Synchrony Financial		7,564		210,506
Synopsys Inc.^a		2,240		132,810
Sysco Corp.		4,960		257,226
T Rowe Price Group Inc.		2,320		161,333
T-Mobile U.S. Inc.^a		2,840		131,606
Target Corp.		4,720		331,297
TD Ameritrade Holding Corp.		2,440		80,191
TE Connectivity Ltd.		3,000		190,710
Tesla Motors Inc.^a,b		960		203,530
Tesoro Corp.		1,200		90,504
Texas Instruments Inc.		8,400		584,136
Textron Inc.		2,920		119,282
Thermo Fisher Scientific Inc.		3,560		541,796
Tiffany & Co.		920		65,660
Time Warner Inc.		6,880		539,461
TJX Companies Inc. (The)		6,000		464,640
Toll Brothers Inc.^a		2,480		77,103
Torchmark Corp.		1,251		80,915
Total System Services Inc.		2,160		106,380
Tractor Supply Co.		1,360		114,172
TransDigm Group Inc.^a		600		171,114
Travelers Companies Inc. (The)		2,480		294,401
Trimble Navigation Ltd.^a		2,400		65,760
TripAdvisor Inc.^a		1,080		65,880
Twenty-First Century Fox Inc. Class A		10,960		268,958
Twenty-First Century Fox Inc. Class B		2,400		59,640
Twitter Inc.^a		5,440		104,502
Tyco International PLC		4,440		193,939
Tyson Foods Inc. Class A		2,840		214,619
U.S. Bancorp.		14,120		623,398
UDR Inc.		3,160		114,329
Ulta Salon Cosmetics & Fragrance Inc.^a		640		158,214
Under Armour Inc. Class A^a,b		1,800		71,334
Under Armour Inc. Class C^a		1,812		64,598
Union Pacific Corp.		7,160		683,995
United Parcel Service Inc. Class B		5,560		607,263
United Rentals Inc.^a		1,000		82,310
United Technologies Corp.		6,720		715,210


Security	Shares		Value
UnitedHealth Group Inc.		8,120	$	1,104,726
Universal Health Services Inc. Class B		880		106,066
Unum Group		2,200		78,342
Valero Energy Corp.		4,040		223,614
Varian Medical Systems Inc.^a		1,040		99,975
Ventas Inc.		2,809		204,130
VEREIT Inc.		9,120		95,304
VeriSign Inc.^a,b		1,280		95,296
Verisk Analytics Inc. Class A^a		1,640		136,202
Verizon Communications Inc.		34,440		1,802,245
Vertex Pharmaceuticals Inc.^a		2,200		207,922
VF Corp.		3,120		193,596
Viacom Inc. Class B NVS		3,200		129,088
Visa Inc. Class A		16,360		1,323,524
VMware Inc. Class A^a,b		760		55,731
Vornado Realty Trust		1,680		173,561
Vulcan Materials Co.		1,400		159,418
Wal-Mart Stores Inc.		13,520		965,869
Walgreens Boots Alliance Inc.		7,680		619,853
Walt Disney Co. (The)		13,080		1,235,537
Waste Management Inc.		4,000		255,760
Waters Corp.^a		960		151,018
Weatherford International PLC^a,b		8,520		46,604
WEC Energy Group Inc.		3,242		194,131
Wells Fargo & Co.		39,720		2,017,776
Welltower Inc.		3,080		236,390
Western Digital Corp.		2,416		112,755
Western Union Co. (The)		5,400		116,208
WestRock Co.		2,329		111,559
Weyerhaeuser Co.		6,960		221,676
Whirlpool Corp.		760		135,766
WhiteWave Foods Co. (The)^a		2,040		113,077
Whole Foods Market Inc.		3,120		94,786
Williams Companies Inc. (The)		6,520		182,169
Willis Towers Watson PLC		1,160		143,852
Workday Inc. Class A^a,b		1,161		98,441
WR Berkley Corp.		1,200		71,244
WW Grainger Inc.		600		138,396
Wyndham Worldwide Corp.		1,160		82,116
Wynn Resorts Ltd.		800		71,456
Xcel Energy Inc.		4,400		181,984
Xerox Corp.		8,280		81,558
Xilinx Inc.		2,320		125,767
XL Group Ltd.		2,520		86,260
Xylem Inc./NY		2,720		138,339


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016


Security	Shares		Value
Yahoo! Inc.^a		7,880	$	336,870
Yum! Brands Inc.		3,640		330,184
Zillow Group Inc. Class C^a,b		1,259		42,617
Zimmer Biomet Holdings Inc.		1,720		222,929
Zoetis Inc.		4,800		245,280

				171,121,708

TOTAL COMMON STOCKS
(Cost: $293,152,212)				287,104,214

PREFERRED STOCKS — 0.19%

GERMANY — 0.18%
Henkel AG & Co. KGaA		1,560		204,411
Porsche Automobil Holding SE		1,320		66,782
Volkswagen AG		1,800		249,591

				520,784

ITALY — 0.01%
Telecom Italia SpA/Milano		30,080		22,010

				22,010

TOTAL PREFERRED STOCKS
(Cost: $696,956)				542,794

SHORT-TERM INVESTMENTS — 1.72%

MONEY MARKET FUNDS — 1.72%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^e,f,g		4,756,712		4,756,712


Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^e,f		204,920	$	204,920

				4,961,632

TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,961,632)				4,961,632

TOTAL INVESTMENTS IN SECURITIES — 101.39%
(Cost: $298,810,800)^h				292,608,640
Other Assets, Less Liabilities — (1.39)%				(4,005,190	)

NET ASSETS — 100.00%			$	288,603,450

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

^d	Affiliated issuer. See Schedule 1.

^e	Affiliated money market fund.

^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.

^h	The cost of investments for federal income tax purposes was $300,256,806. Net unrealized depreciation was $7,648,166, of which $17,620,082 represented gross unrealized appreciation on securities and $25,268,248 represented gross unrealized depreciation on securities.

Schedule 1 — Affiliates (Note 2)


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)
BlackRock Inc.		810		513		(243	)		1,080	$	402,635	$	8,561	$	1,462
PNC Financial Services Group Inc. (The)		3,270		2,065		(1,215	)		4,120		371,212		7,714		1,375

										$	773,847	$	16,275	$	2,837


28		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2016

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	287,104,214	$	—	$	—	$	287,104,214
Preferred stocks		542,794		—		—		542,794
Money market funds		4,961,632		—		—		4,961,632

Total	$	292,608,640	$	—	$	—	$	292,608,640

See notes to financial statements.


SCHEDULES OF INVESTMENTS			29

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Frontier 100 ETF			iShares MSCI World ETF

ASSETS
Investments, at cost:
Unaffiliated	$	472,885,667		$	293,104,758
Affiliated (Note 2)		8,354,031			5,706,042

Total cost of investments	$	481,239,698		$	298,810,800

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	406,717,013		$	286,873,161
Affiliated (Note 2)		8,354,031			5,735,479

Total fair value of investments		415,071,044			292,608,640
Foreign currency, at value^b		1,000,393			447,548
Receivables:
Investment securities sold		715,405			46,961
Dividends and interest		211,163			664,751
Tax reclaims		918			125,598

Total Assets		416,998,923			293,893,498


LIABILITIES
Payables:
Investment securities purchased		477,197			474,517
Collateral for securities on loan (Note 1)		2,940,667			4,756,712
Due to custodian		316,870			—
Foreign taxes		1,802,016			—
Deferred foreign capital gains taxes (Note 1)		3,463,698			—
Investment advisory fees (Note 2)		275,977			58,819

Total Liabilities		9,276,425			5,290,048


NET ASSETS	$	407,722,498		$	288,603,450


Net assets consist of:
Paid-in capital	$	578,256,925		$	297,351,053
Undistributed (distributions in excess of) net investment income		(2,465,352	)		966,142
Accumulated net realized loss		(98,430,579	)		(3,503,238	)
Net unrealized depreciation		(69,638,496	)		(6,210,507	)

NET ASSETS	$	407,722,498		$	288,603,450


Shares outstanding^c		16,850,000			4,000,000


Net asset value per share	$	24.20		$	72.15

^a	Securities on loan with values of $2,873,416 and $4,327,570, respectively. See Note 1.

^b	Cost of foreign currency: $1,006,182 and $451,389, respectively.

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

See notes to financial statements.


30		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Frontier 100 ETF			iShares MSCI World ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	16,963,429		$	6,139,822
Dividends — affiliated (Note 2)		5,806			16,759
Interest — unaffiliated		22,100			—
Securities lending income — affiliated — net (Note 2)		4,293			37,205

Total investment income		16,995,628			6,193,786


EXPENSES
Investment advisory fees (Note 2)		3,510,094			576,599
Commitment fees (Note 7)		5,308			—

Total expenses		3,515,402			576,599

Net investment income		13,480,226			5,617,187


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^b		(55,909,094	)		(3,021,721	)
Investments — affiliated (Note 2)		—			(3,120	)
In-kind redemptions — unaffiliated		433,543			2,479,967
In-kind redemptions — affiliated (Note 2)		—			5,957
Foreign currency transactions		(5,235,607	)		(1,851	)

Net realized loss		(60,711,158	)		(540,768	)

Net change in unrealized appreciation/depreciation on:
Investments^c		16,641,172			9,322,844
Translation of assets and liabilities in foreign currencies		(4,026	)		(1,290	)

Net change in unrealized appreciation/depreciation		16,637,146			9,321,554

Net realized and unrealized gain (loss)		(44,074,012	)		8,780,786

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(30,593,786	)	$	14,397,973

^a	Net of foreign withholding tax of $1,906,528 and $295,931, respectively.

^b	Net of foreign capital gains taxes of $163,352 and $ —, respectively.

^c	Net of deferred foreign capital gains taxes of $3,463,698 and $ —, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			31

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Frontier 100 ETF						iShares MSCI World ETF
	Year ended August 31, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	13,480,226		$	15,030,715		$	5,617,187		$	4,823,722
Net realized gain (loss)		(60,711,158	)		(5,709,041	)		(540,768	)		13,170,641
Net change in unrealized appreciation/depreciation		16,637,146			(166,708,688	)		9,321,554			(28,759,523	)

Net increase (decrease) in net assets resulting from operations		(30,593,786	)		(157,387,014	)		14,397,973			(10,765,160	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(9,930,758	)		(14,489,117	)		(5,779,653	)		(4,706,418	)
From net realized gain		—			(47,428,840	)		—			—

Total distributions to shareholders		(9,930,758	)		(61,917,957	)		(5,779,653	)		(4,706,418	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		31,628,173			114,382,787			131,162,561			147,539,726
Cost of shares redeemed		(86,373,632	)		(191,434,078	)		(58,019,921	)		(93,954,071	)

Net increase (decrease) in net assets from capital share transactions		(54,745,459	)		(77,051,291	)		73,142,640			53,585,655

INCREASE (DECREASE) IN NET ASSETS		(95,270,003	)		(296,356,262	)		81,760,960			38,114,077

NET ASSETS
Beginning of year		502,992,501			799,348,763			206,842,490			168,728,413

End of year	$	407,722,498		$	502,992,501		$	288,603,450		$	206,842,490

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(2,465,352	)	$	(615,861	)	$	966,142		$	1,111,968


SHARES ISSUED AND REDEEMED
Shares sold		1,200,000			3,750,000			1,900,000			2,000,000
Shares redeemed		(3,550,000	)		(5,700,000	)		(900,000	)		(1,300,000	)

Net increase (decrease) in shares outstanding		(2,350,000	)		(1,950,000	)		1,000,000			700,000

See notes to financial statements.


32		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Frontier 100 ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Period from Sep. 12, 2012^a to Aug. 31, 2013
Net asset value, beginning of period	$	26.20		$	37.79		$	30.12		$	25.25

Income from investment operations:
Net investment income^b		0.76			0.77			1.09			0.67
Net realized and unrealized gain (loss)^c		(2.17	)		(8.78	)		7.47			4.51

Total from investment operations		(1.41	)		(8.01	)		8.56			5.18

Less distributions from:
Net investment income		(0.59	)		(0.76	)		(0.89	)		(0.28	)
Net realized gain		—			(2.82	)		—			—
Return of capital		—			—			—			(0.03	)

Total distributions		(0.59	)		(3.58	)		(0.89	)		(0.31	)

Net asset value, end of period	$	24.20		$	26.20		$	37.79		$	30.12


Total return		(5.45	)%		(21.70	)%		28.56	%		20.54	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	407,722		$	502,993		$	799,349		$	280,084
Ratio of expenses to average net assets^e		0.79	%		0.79	%		0.79	%		0.79	%
Ratio of net investment income to average net assets^e		3.03	%		2.43	%		3.07	%		2.32	%
Portfolio turnover rate^f		20	%		47	%		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 years ended August 31, 2016, August 31, 2015, August 31, 2014 and the period ended August 31, 2013 were 19%, 45%, 42% and 10%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			33

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI World ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			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	$	68.95		$	73.36		$	61.76		$	53.45		$	50.32

Income from investment operations:
Net investment income^b		1.62			1.64			1.81			1.40			0.98
Net realized and unrealized gain (loss)^c		3.16			(4.49	)		11.16			8.03			2.89

Total from investment operations		4.78			(2.85	)		12.97			9.43			3.87

Less distributions from:
Net investment income		(1.58	)		(1.56	)		(1.37	)		(1.12	)		(0.74	)

Total distributions		(1.58	)		(1.56	)		(1.37	)		(1.12	)		(0.74	)

Net asset value, end of period	$	72.15		$	68.95		$	73.36		$	61.76		$	53.45


Total return		7.05	%		(3.97	)%		21.07	%		17.84	%		7.76	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	288,603		$	206,842		$	168,728		$	24,704		$	10,689
Ratio of expenses to average net assets^e		0.24	%		0.24	%		0.24	%		0.24	%		0.24	%
Ratio of net investment income to average net assets^e		2.34	%		2.25	%		2.57	%		2.34	%		2.91	%
Portfolio turnover rate^f		5	%		5	%		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.


34		2016 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 Frontier 100		Diversified
MSCI World		Diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•

Fixed income investments are valued using the last available bid price or current market quotations provided by dealers or prices (including evaluated prices) supplied by approved independent third-party pricing services. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction


NOTES TO FINANCIAL STATEMENTS			35

Notes to Financial Statements (Continued)

iSHARES^®, INC.

data, credit quality information, perceived market movements, news, and other relevant information and by other methods, which may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller odd lot sizes.

•

Open-end U.S. mutual funds (including money market 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.


36		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			37

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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. Any additional required collateral is delivered to the Funds and any excess collateral is returned by 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 but does not receive interest income on securities received as collateral. 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.


38		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2016:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Frontier 100
Citigroup Global Markets Inc.	$	517,920	$	517,920	$	—
Deutsche Bank Securities Inc.		354,847		354,847		—
JPMorgan Clearing Corp.		1,957,694		1,957,694		—
Merrill Lynch, Pierce, Fenner & Smith		42,955		42,955		—

	$	2,873,416	$	2,873,416	$	—


MSCI World
Barclays Capital Inc.	$	109,844	$	109,844	$	—
BNP Paribas Prime Brokerage International Ltd.		133,807		133,807		—
Citigroup Global Markets Inc.		64,938		64,938		—
Credit Suisse Securities (USA) LLC		415,858		415,858		—
Goldman Sachs & Co.		397,144		397,144		—
JPMorgan Clearing Corp.		287,546		287,546		—
Merrill Lynch, Pierce, Fenner & Smith		329,212		329,212		—
Morgan Stanley & Co. LLC		702,184		702,184		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		134,783		134,783		—
Nomura Securities International Inc.		119,363		119,363		—
Scotia Capital (USA) Inc.		20,846		20,846		—
SG Americas Securities LLC		137,554		137,554		—
State Street Bank & Trust Company		1,234,164		1,234,164		—
UBS Securities LLC		185,756		185,756		—
Wells Fargo Securities LLC		54,571		54,571		—

	$	4,327,570	$	4,327,570	$	—

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 based on the average daily net assets of each Fund as follows:


iShares ETF	Investment Advisory Fee
MSCI Frontier 100		0.79	%
MSCI World		0.24


NOTES TO FINANCIAL STATEMENTS			39

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Frontier 100	$	1,375
MSCI World		10,809

For the year ended August 31, 2016, the purchase and sales transactions executed by the iShares MSCI World ETF pursuant to Rule 17a-7 under the 1940 Act were $726,094 and $423,508, respectively.

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.


40		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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, 2016 were as follows:


iShares ETF	Purchases		Sales
MSCI Frontier 100	$	87,188,645	$	133,117,163
MSCI World		12,938,485		11,323,954

In-kind transactions (see Note 4) for the year ended August 31, 2016 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Frontier 100	$	2,787,296	$	15,473,356
MSCI World		129,342,580		57,219,043

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FORWARD CURRENCY CONTRACTS*

iShares MSCI Frontier 100 ETF may enter into forward currency contracts for the purpose of hedging against the effects of foreign currencies on the value of the Fund’s assets that are denominated in a non-U.S. currency. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange. The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. The Fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the Fund failing to close out its position due to an illiquid market.

As of August 31, 2016, the iShares MSCI Frontier 100 ETF held no open forward currency contracts.


NOTES TO FINANCIAL STATEMENTS			41

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the realized and unrealized gains (losses) on forward currency contracts held by the iShares MSCI Frontier 100 ETF during the year ended August 31, 2016 and the related locations in the statement of operations, presented by risk exposure category:


	Net Realized Gain (Loss)			Net Change in Unrealized Appreciation/Depreciation
Forward currency contracts:
Foreign currency transactions/Forward currency contracts	$	(579,405	)	$	—

The following table shows the average quarter-end balances of outstanding forward currency contracts for the year ended August 31, 2016:


	Shares MSCI Frontier 100 ETF
Average amounts purchased in U.S. dollars	$	37,224
Average amounts sold in U.S. dollars	$	1,291,101

6.	*PRINCIPAL RISKS*

MARKET RISK


42		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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.

CREDIT RISK

7.	*INCOME TAX INFORMATION*


NOTES TO FINANCIAL STATEMENTS			43

Notes to Financial Statements (Continued)

iSHARES^®, INC.

August 31, 2016, attributable to characterization of corporate actions, 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 Frontier 100	$	(2,110,163	)	$	(5,398,959	)	$	7,509,122
MSCI World		1,985,604			16,640			(2,002,244	)

The tax character of distributions paid during the years ended August 31, 2016 and August 31, 2015 was as follows:


iShares ETF	2016		2015
MSCI Frontier 100
Ordinary income	$	9,930,758	$	33,889,106
Long-term capital gain		—		28,028,851

	$	9,930,758	$	61,917,957


MSCI World
Ordinary income	$	5,779,653	$	4,706,418

As of August 31, 2016, 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 Frontier 100	$	—	$	(20,910,745	)	$	(96,394,723	)	$	(53,228,959	)	$	(170,534,427	)
MSCI World		1,154,615		(514,129	)		(7,656,513	)		(1,731,576	)		(8,747,603	)

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the tax classification of investments 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, 2016, the following Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:


iShares ETF	Non- Expiring
MSCI Frontier 100	$	20,910,745
MSCI World		514,129


44		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

8.	*LINE OF CREDIT*

The iShares MSCI Frontier 100 ETF, along with certain other iShares funds, is a party to a $250 million credit agreement with State Street Bank and Trust Company, which expires on October 25, 2017. 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 0.20% 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 (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) 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.

The Fund did not borrow under the credit agreement during the year ended August 31, 2016.

9.	*SUBSEQUENT EVENTS*


NOTES TO FINANCIAL STATEMENTS			45

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 Frontier 100 ETF and iShares MSCI World ETF (the “Funds”) at August 31, 2016, 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, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 21, 2016


46		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2016:


iShares ETF	Qualified Dividend Income
MSCI Frontier 100	$	7,762,993
MSCI World		6,072,936

For corporate shareholders, the percentage of income dividends paid by the iShares MSCI World ETF during the fiscal year ended August 31, 2016 that qualified for the dividends-received deduction was 48.63%.

For the fiscal year ended August 31, 2016, the iShares MSCI Frontier 100 ETF earned foreign source income of $18,869,741 and paid foreign taxes of $2,069,756 which it intends to pass through to its shareholders.


TAX INFORMATION			47

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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 (net of waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds. The Board further noted that the Fund’s pricing reflects the additional complexity associated with investing in frontier markets, as compared to the competitor funds as determined by Broadridge, which have little or no frontier market exposure.


48		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

one-, three-, five-, ten-year, and since inception periods, as applicable, and for the “last quarter” period ended December 31, 2015, to that of such relevant comparison funds for the same periods.

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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			49

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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, among other things, 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 that are not otherwise shared, 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.

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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.


50		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

II. 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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			51

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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.


52		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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, among other things, 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 that are not otherwise shared, 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.

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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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. Further, with respect to comparisons with one or more open-end index mutual funds registered under the 1940 Act managed by BFA (or an affiliate) that track the same index as the Fund and have investment advisory fee rates and overall expenses (net of waivers and reimbursements) that are lower than the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the Fund, the Board gave weight to management’s explanations of the relevant circumstances applicable to such mutual funds. 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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			53

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


54		2016 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 Frontier 100	$	0.537410	$	—	$	0.054878	$	0.592288		91	%		—	%		9	%		100	%
MSCI World		1.570973		—		0.006956		1.577929		100			—			0	^a		100

Rounds to less than 1%.

Premium/Discount Information


SUPPLEMENTAL INFORMATION			55

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Frontier 100 ETF

Period Covered: September 12, 2012 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5% and Less than 4.0%		1		0.10	%
Greater than 3.0% and Less than 3.5%		22		2.30
Greater than 2.5% and Less than 3.0%		45		4.71
Greater than 2.0% and Less than 2.5%		77		8.05
Greater than 1.5% and Less than 2.0%		171		17.90
Greater than 1.0% and Less than 1.5%		159		16.63
Greater than 0.5% and Less than 1.0%		96		10.04
Between 0.5% and –0.5%		107		11.19
Less than –0.5% and Greater than –1.0%		88		9.21
Less than –1.0% and Greater than –1.5%		79		8.26
Less than –1.5% and Greater than –2.0%		54		5.65
Less than –2.0% and Greater than –2.5%		35		3.66
Less than –2.5% and Greater than –3.0%		17		1.78
Less than –3.0% and Greater than –3.5%		3		0.31
Less than –3.5% and Greater than –4.0%		2		0.21

		956		100.00	%

iShares MSCI World ETF

Period Covered: January 10, 2012 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		3		0.27	%
Greater than 2.0% and Less than 2.5%		37		3.29
Greater than 1.5% and Less than 2.0%		48		4.26
Greater than 1.0% and Less than 1.5%		79		7.02
Greater than 0.5% and Less than 1.0%		259		23.00
Between 0.5% and –0.5%		689		61.18
Less than –0.5% and Greater than –1.0%		10		0.89
Less than –1.0% and Greater than –1.5%		1		0.09

		1,126		100.00	%


56		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Regulation under the Alternative Investment Fund Managers Directive (“AIFMD” or the “Directive”)

BFA has registered the iShares MSCI Frontier 100 ETF (the “Fund”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden, and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to (a) the staff of BFA; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund.


SUPPLEMENTAL INFORMATION			57

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

acknowledges the multiple-service nature of BFA. 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 Fund in respect of BFA’s financial year ending December 31, 2015 is USD 79.1 thousand. This figure is comprised of fixed remuneration of USD 30.76 thousand and variable remuneration of USD 48.34 thousand. There were a total of 457 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2015, to its senior management was USD 9.4 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 2.28 thousand.


58		2016 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			59

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director During the Past 5 Years
Cecilia H. Herbert (67)	Director (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	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 media company (since 2011).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015).

Jane D. Carlin (60)	Director (since 2015); Risk Committee Chair (since 2016).	Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012).

Charles A. Hurty (72)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); 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 (61)	Director (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (55)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).


60		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c (Continued)

Robert H. Silver served as an Independent Director until March 31, 2016.


DIRECTOR AND OFFICER INFORMATION			61

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^d



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since January 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).

Jack Gee (56)	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).

Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).

Scott Radell (47)	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 (53)	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).

Manish Mehta served as President until October 15, 2016.


62		2016 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-811-0816

AUGUST 31, 2016


2016 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			21
iShares MSCI Global Gold Miners ETF			25
iShares MSCI Global Metals & Mining Producers ETF			27
iShares MSCI Global Silver Miners ETF			31
Financial Statements			33
Financial Highlights			40
Notes to Financial Statements			45
Report of Independent Registered Public Accounting Firm			57
Tax Information			58
Board Review and Approval of Investment Advisory Contract			59
Supplemental Information			62
Director and Officer Information			66

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY 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, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		3.55%		3.58%		3.59%		3.55%		3.58%		3.59%
Since Inception		1.35%		1.30%		1.43%		6.35%		6.10%		6.73%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,143.80	$	1.99	$	1,000.00	$	1,023.30	$	1.88		0.37%


6		2016 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, 2016, the total return for the Fund was 3.55%, net of fees, while the total return for the Index was 3.59%.

As represented by the Index, global agricultural producer stocks posted modest gains for the reporting period.

Price performance for agricultural commodities was mixed, reflecting changing supply and demand conditions around the globe during the reporting period. Crop prices generally suffered from near-record high agricultural output in the U.S. and around the world in 2015. But while grain prices were mostly lower, other food prices generally rose, pushing an overall food price index up 8% during the reporting period. Similarly, while prices for chicken and beef declined, prices for pork were fractionally higher through July 2016, the latest period for which data were available.

Looking at performance by industry, the key contribution to Index performance came from packaged food and meat producers and agricultural products companies, which together accounted for approximately one-third of the Index on average during the reporting period. Agricultural and farm machinery companies also contributed meaningfully to Index performance for the reporting period. Fertilizers and agricultural chemicals companies made up the only industry to detract from Index performance for the reporting period, reflecting a 25% decline in fertilizer prices.

In terms of contribution by country, Switzerland contributed the most to Index performance during the reporting period. The U.S., which represented just under half of the Index on average for the reporting period, also made a notable contribution to the Index’s return, as did Indonesia and Hong Kong. Canada was the leading detractor from Index performance, followed by Germany, Japan, and Israel.

ALLOCATION BY SECTOR

As of 8/31/16


Sector/Investment Type		Percentage of Total Investments*


Materials	48.65	%
Food, Beverage & Tobacco	32.50
Capital Goods	16.82
Investment Companies	2.03

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country		Percentage of Total Investments*


United States	46.21	%
Switzerland	11.80
Canada	8.47
Japan	6.71
Norway	4.97
Singapore	2.18
Italy	2.13
India	2.02
Malaysia	2.00
Germany	1.91

TOTAL	88.40	%

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, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		9.31%		8.44%		9.32%		9.31%		8.44%		9.32%
Since Inception		(3.48)%		(3.51)%		(3.55)%		(15.01)%		(15.12)%		(15.26)%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,205.50	$	2.16	$	1,000.00	$	1,023.20	$	1.98		0.39%


8		2016 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, 2016, the total return for the Fund was 9.31%, net of fees, while the total return for the Index was 9.32%.

As represented by the Index, global energy producers stocks posted solid gains in a reporting period characterized by sharp volatility. The Index declined by almost 20% through mid-January, but then rebounded over the remainder of the reporting period to finish with positive returns.

The performance of the Index generally followed the price of oil. Crude oil prices bottomed in January 2016 at less than $30 per barrel, the lowest level in a dozen years. Slower global growth weighed on prices as world oil demand fell in the fourth quarter of 2015 and first quarter of 2016. At the same time, world oil supply peaked in late 2015 and then began to decline thereafter as higher-cost producers cut output. Late in the reporting period, rising demand for oil during the peak summer driving months and signs of stable growth in China, the world’s largest commodity consumer, helped oil prices recover much of their earlier losses. Overall, the average cost of a barrel of crude oil declined 2% during the reporting period, while the World Bank index of natural gas prices fell 18%.

Integrated oil and gas companies, which made up nearly two-thirds of the Index on average during the reporting period, contributed the most to Index performance. Oil and gas exploration and production companies also contributed meaningfully to performance, while energy refiners detracted from performance.

From a country perspective, the U.S. helped the Index’s performance the most during the reporting period. The U.K., Canada, and Brazil also made notable contributions to the Index’s return.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Integrated Oil & Gas	62.30	%
Oil & Gas Exploration & Production	29.35
Oil & Gas Refining & Marketing	7.11
Coal & Consumable Fuels	1.24

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country		Percentage of Total Investments*


United States	53.36	%
United Kingdom	15.49
Canada	8.83
France	5.36
Russia	2.42
China	2.28
Italy	1.95
Australia	1.55
Brazil	1.50
India	1.28

TOTAL	94.02	%

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, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		91.17%		90.33%		90.74%		91.17%		90.33%		90.74%
Since Inception		(16.32)%		(16.31)%		(16.30)%		(55.84)%		(55.80)%		(55.76)%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,295.00	$	2.25	$	1,000.00	$	1,023.20	$	1.98		0.39%


10		2016 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, 2016, the total return for the Fund was 91.17%, net of fees, while the total return for the Index was 90.74%.

As represented by the Index, global gold mining stocks rose significantly for the reporting period.

Demand for gold surged during the reporting period, with the level of investment demand recorded in the first half of 2016 the highest on record. Gold has traditionally been viewed as a safe-haven investment during periods of economic and political uncertainty. This was evident during the reporting period as gold demand grew amid uncertainty around the U.S. presidential election and the “Brexit” referendum in the U.K., as well as questions about global growth and central bank policies.

At the same time, gold supply grew at the slowest annual pace in eight years in the first six months of 2016. That supply and demand backdrop meant that the price per troy ounce of gold increased by 20% during the reporting period to $1,309. By comparison, the all-in sustaining cost to produce an ounce of gold as of the first quarter of 2016 for 10 leading gold miners ranged between $760 and $1,000. Gold’s rally above the cost of production contributed to rapid profit margin expansion for global gold miners, which helped explain the sharp increase in stock prices for these companies.

Canadian gold mining stocks, which made up more than 50% of the Index on average during the reporting period, helped the Index’s performance the most in U.S. dollar terms. South African and U.S. gold mining companies also contributed significantly to Index performance. Gold mining stocks based in Turkey and Hong Kong detracted fractionally from the Index’s performance for the reporting period.

ALLOCATION BY COUNTRY

As of 8/31/16


Country		Percentage of Total Investments*


Canada	50.44	%
United States	14.56
South Africa	13.18
Australia	9.78
United Kingdom	7.13
Peru	2.63
Turkey	1.18
Hong Kong	1.10

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Newmont Mining Corp.	13.11	%
Barrick Gold Corp. (Canada)	12.88
Goldcorp Inc. (Canada)	7.44
Newcrest Mining Ltd. (Australia)	7.23
Agnico Eagle Mines Ltd. (Canada)	5.23
Randgold Resources Ltd. (United Kingdom)	4.57
AngloGold Ashanti Ltd. (South Africa)	4.50
Kinross Gold Corp. (Canada)	4.33
Gold Fields Ltd. (South Africa)	3.89
Yamana Gold Inc. (Canada)	3.53

TOTAL	66.71	%

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, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		4.52%		3.04%		4.83%		4.52%		3.04%		4.83%
Since Inception		(13.07)%		(13.18)%		(13.02)%		(47.40)%		(47.70)%		(47.23)%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,326.00	$	2.28	$	1,000.00	$	1,023.20	$	1.98		0.39%


12		2016 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, 2016, the total return for the Fund was 4.52%, net of fees, while the total return for the Index was 4.83%.

As represented by the Index, global metals and mining stocks (excluding gold and silver producers) posted modest gains for the reporting period. The period was marked by sharp volatility — the Index initially declined by more than 33% through mid-January before reversing the entire loss over the course of the next several months, then traded in a fairly narrow range for the remainder of the reporting period.

The price changes in the Index reflect the price changes of many metals and minerals, which ended the reporting period with small gains after significant volatility relating to uncertainty around global economic growth and commodity demand. Iron ore and aluminum experienced modest price increases over the course of the reporting period, while copper prices declined overall.

Looking at Index performance by industry, the key contribution to performance came from steel producers, which made up more than one-third of the Index on average during the reporting period. Diversified mining stocks detracted from Index performance, reflecting the difficult pricing environment for copper.

In terms of contribution by country, the U.S. helped the Index’s performance the most during the reporting period. At the other end of the spectrum, U.K. metals and mining companies, which represented approximately 23% of the Index on average during the reporting period, detracted the most from the Index’s performance in U.S. dollar terms. However, the bulk of the decline resulted from a sharp drop in the British pound against the U.S. dollar in the wake of the “Brexit” referendum.

ALLOCATION BY SECTOR

As of 8/31/16


Sector		Percentage of Total Investments*


Diversified Metals & Mining	48.50	%
Steel	37.05
Copper	6.52
Aluminum	5.30
Precious Metals & Minerals	2.63

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country		Percentage of Total Investments*


United Kingdom	22.43	%
Australia	17.91
United States	13.84
Japan	10.93
Canada	5.06
South Korea	4.67
Brazil	4.02
Russia	2.61
France	2.43
Germany	2.21

TOTAL	86.11	%

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, 2016


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		122.11%		120.38%		123.61%		122.11%		120.38%		123.61%
Since Inception		(11.12)%		(11.18)%		(11.06)%		(41.77)%		(41.95)%		(41.56)%

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 (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,874.80	$	2.82	$	1,000.00	$	1,023.20	$	1.98		0.39%


14		2016 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, 2016, the total return for the Fund was 122.11%, net of fees, while the total return for the Index was 123.61%.

As represented by the Index, global silver mining stocks more than doubled for the reporting period. The reporting period was marked by sharp volatility, with the Index initially declining by more than 20% through mid-January, before going on an almost uninterrupted rally through mid-August. The Index fell sharply again at the end of the reporting period.

The key driver of the rally in global silver mining stocks during the reporting period was the 31% increase in the price per troy ounce of the precious metal to $18.67 at the end of the reporting period. By comparison, the all-in sustaining cost to produce an ounce of silver in the second quarter of 2016 for leading miners was estimated at $10.05. The rally in the price of silver above the cost of production contributed to rapid profit margin expansion for global silver miners, which helped explain the sharp increase in stock prices for these companies. Silver’s price increase reflected strong demand resulting from the metal’s use in the manufacture of solar panels, as well as record purchases of silver coins and bars in 2015.

In terms of contribution by country, Canada, which made up more than 60% of the Index on average during the reporting period, helped the Index’s performance the most in U.S. dollar terms. The U.S., the U.K., Peru, and Mexico also contributed meaningfully to the Index’s return. Silver mining stocks in Hong Kong and China detracted fractionally from the Index’s performance for the reporting period.

ALLOCATION BY COUNTRY

As of 8/31/16


Country		Percentage of Total Investments*


Canada	64.26	%
United States	12.06
United Kingdom	11.86
Mexico	5.86
Peru	4.16
Hong Kong	1.19
China	0.61

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/16


Security		Percentage of Total Investments*


Silver Wheaton Corp. (Canada)	23.24	%
Fresnillo PLC (United Kingdom)	9.23
Tahoe Resources Inc. (Canada)	7.53
Industrias Penoles SAB de CV (Mexico)	5.86
Coeur Mining Inc.	4.54
Pan American Silver Corp. (Canada)	4.50
Hecla Mining Co.	4.43
First Majestic Silver Corp. (Canada)	4.28
Cia. de Minas Buenaventura SA ADR (Peru)	4.16
Silver Standard Resources Inc. (Canada)	4.04

TOTAL	71.81	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

About Fund Performance

Shareholder Expenses


16		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 96.67%

AUSTRALIA — 1.19%
Australian Agricultural Co. Ltd.^a		30,843	$	41,145
Costa Group Holdings Ltd.		20,838		44,007
GrainCorp Ltd. Class A		14,444		89,231
Nufarm Ltd./Australia		14,605		92,531
Select Harvests Ltd.		5,727		28,838
Tassal Group Ltd.		12,328		37,894

				333,646
BRAZIL — 0.33%
Sao Martinho SA		4,600		71,465
SLC Agricola SA		4,600		20,583

				92,048
CANADA — 8.42%
Ag Growth International Inc.		1,127		37,150
Agrium Inc.		10,626		1,023,361
Clearwater Seafoods Inc.		2,254		24,601
Potash Corp. of Saskatchewan Inc.		67,321		1,219,120
Rogers Sugar Inc.		10,373		50,203

				2,354,435
CHINA — 1.48%
Century Sunshine Group Holdings Ltd.		186,875		7,348
China Agri-Industries Holdings Ltd.^a		161,200		56,942
China BlueChemical Ltd. Class H		138,000		26,331
China Huishan Dairy Holdings Co. Ltd.		322,000		123,706
China Modern Dairy Holdings Ltd.^a,b		149,000		23,435
China Shengmu Organic Milk Ltd.^a,b,c		138,000		30,600
First Tractor Co. Ltd. Class H		46,000		24,433
Hubei Sanonda Co. Ltd. Class B		15,000		12,330
Ko Yo Chemical Group Ltd.^a		184,000		4,436
Leyou Technologies Holdings Ltd.^a,b		230,000		34,099
Shandong Zhonglu Oceanic Fisheries Co. Ltd.^a		13,800		11,956
Sinofert Holdings Ltd.^b		184,000		23,247
Tianjin TEDA Biomedical Engineering Co. Ltd.^a		115,000		23,128
YuanShengTai Dairy Farm Ltd.^a		207,000		12,009

				414,000
FINLAND — 0.13%
HKScan OYJ Class A		851		3,260
Ponsse OYJ		1,196		33,328

				36,588
FRANCE — 0.25%
Naturex^a,b		506		43,422


Security	Shares		Value
Vilmorin & Cie SA		391	$	27,174

				70,596
GERMANY — 1.90%
K+S AG Registered		15,364		321,185
KWS Saat SE		184		58,815
Suedzucker AG		5,773		150,519

				530,519
HONG KONG — 1.33%
WH Group Ltd.^c		471,500		370,793

				370,793
INDONESIA — 1.11%
Charoen Pokphand Indonesia Tbk PT		609,500		171,386
Eagle High Plantations Tbk PT^a		878,600		13,909
Japfa Comfeed Indonesia Tbk PT		397,900		50,844
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		243,800		29,407
PT Bisi International Tbk		151,800		20,141
Salim Ivomas Pratama Tbk PT		193,200		7,501
Sawit Sumbermas Sarana Tbk PT		142,600		18,006

				311,194
IRELAND — 0.23%
Origin Enterprises PLC		10,074		65,132

				65,132
ISRAEL — 0.80%
Israel Chemicals Ltd.		40,986		173,355
Israel Corp. Ltd. (The)		276		50,708

				224,063
ITALY — 2.11%
CNH Industrial NV		81,052		591,279

				591,279
JAPAN — 6.67%
Iseki & Co. Ltd.		23,000		57,814
Kubota Corp.		89,700		1,315,560
Kumiai Chemical Industry Co. Ltd.		4,600		25,661
Maruha Nichiro Corp.		2,300		53,411
NH Foods Ltd.		14,000		306,569
Nihon Nohyaku Co. Ltd.		4,600		22,636
Nippon Beet Sugar Manufacturing Co. Ltd.		7,000		12,655
Sakata Seed Corp.		2,300		50,943
YAMABIKO Corp.		2,300		18,901

				1,864,150


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2016


Security	Shares		Value
MALAYSIA — 1.98%
Felda Global Ventures Holdings Bhd		103,500	$	57,932
Genting Plantations Bhd		18,400		48,093
IOI Corp. Bhd		184,000		200,538
Kuala Lumpur Kepong Bhd		32,200		187,221
QL Resources Bhd		47,450		51,832
TDM Bhd		55,200		9,187

				554,803
MEXICO — 0.22%
Industrias Bachoco SAB de CV Series B		13,800		60,916

				60,916
NETHERLANDS — 0.47%
OCI NV^a		7,498		131,025

				131,025
NORWAY — 4.94%
Austevoll Seafood ASA		7,889		61,713
Bakkafrost P/F		3,312		118,923
Leroy Seafood Group ASA		2,231		100,034
Marine Harvest ASA		30,889		476,976
Salmar ASA		4,324		119,594
Yara International ASA		14,237		504,886

				1,382,126
POLAND — 0.21%
Grupa Azoty SA		3,542		58,147

				58,147
RUSSIA — 0.51%
Acron JSC		669		37,524
PhosAgro PJSC GDR^d		7,751		103,863

				141,387
SINGAPORE — 2.16%
Bumitama Agri Ltd.		31,900		17,087
China XLX Fertiliser Ltd.		23,000		6,701
First Resources Ltd.^b		46,000		60,755
Golden Agri-Resources Ltd.		563,500		148,850
Indofood Agri Resources Ltd.		29,900		9,873
Japfa Ltd.		29,900		18,648
Wilmar International Ltd.		151,800		343,064

				604,978
SOUTH AFRICA — 0.47%
Astral Foods Ltd.		3,105		27,517
Oceana Group Ltd.		4,002		31,550
Tongaat Hulett Ltd.		8,510		71,439

				130,506


Security	Shares		Value
SOUTH KOREA — 0.42%
Dongwon Industries Co. Ltd.		92	$	23,928
Easy Bio Inc.^b		3,105		17,683
Farmsco^a		1,426		15,859
Harim Co. Ltd.^a		2,150		8,224
Namhae Chemical Corp.		2,438		18,433
Nong Woo Bio Co. Ltd.^b		920		17,905
Silla Co. Ltd.		549		7,262
TS Corp./Korea		322		6,888

				116,182
SPAIN — 0.00%
Pescanova SA^a		414		—

				—
SWEDEN — 0.11%
Scandi Standard AB		4,163		31,553

				31,553
SWITZERLAND — 11.73%
Syngenta AG Registered		7,521		3,278,453

				3,278,453
TAIWAN — 0.33%
Taiwan Fertilizer Co. Ltd.		69,000		91,114

				91,114
THAILAND — 0.86%
Charoen Pokphand Foods PCL NVDR		221,900		208,339
GFPT PCL NVDR		44,800		20,449
Khon Kaen Sugar Industry PCL NVDR		101,354		11,243

				240,031
TURKEY — 0.04%
Gubre Fabrikalari TAS		6,072		10,588

				10,588
UNITED KINGDOM — 0.33%
Sirius Minerals PLC^a		169,671		91,665

				91,665
UNITED STATES — 45.94%
AGCO Corp.		5,198		252,311
AgroFresh Solutions Inc.^a		1,794		10,890
American Vanguard Corp.		2,461		41,468
Archer-Daniels-Midland Co.		47,472		2,077,375
Bunge Ltd.		11,316		723,092
Cal-Maine Foods Inc.		2,415		110,945
CF Industries Holdings Inc.		18,791		488,566
Darling Ingredients Inc.^a		13,363		188,151
Deere & Co.		21,574		1,824,082


18		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2016


Security	Shares		Value
FMC Corp.		10,879	$	510,660
Fresh Del Monte Produce Inc.		2,852		165,901
Ingredion Inc.		5,911		809,571
Lindsay Corp.		851		61,238
Monsanto Co.		35,535		3,784,478
Mosaic Co. (The)		26,887		808,492
Omega Protein Corp.^a		1,840		46,386
Sanderson Farms Inc.		1,702		163,783
Scotts Miracle-Gro Co. (The) Class A		3,795		314,226
Titan International Inc.		3,381		31,071
Toro Co. (The)		4,393		426,780

				12,839,466

TOTAL COMMON STOCKS
(Cost: $30,240,648)				27,021,383

INVESTMENT COMPANIES — 2.01%

INDIA — 2.01%
iShares India 50 ETF^e		18,711		562,640

				562,640

TOTAL INVESTMENT COMPANIES
(Cost: $518,336)				562,640

PREFERRED STOCKS — 0.72%

CHILE — 0.72%
Sociedad Quimica y Minera de Chile SA Series B		7,866		201,470

				201,470

TOTAL PREFERRED STOCKS
(Cost: $210,813)				201,470

SHORT-TERM INVESTMENTS — 0.77%

MONEY MARKET FUNDS — 0.77%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^f,g,h		202,370		202,370
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^f,g		11,859		11,859

				214,229

TOTAL SHORT-TERM INVESTMENTS
(Cost: $214,229)				214,229


	Value
TOTAL INVESTMENTS IN SECURITIES — 100.17%
(Cost: $31,184,026)ⁱ	$	27,999,722
Other Assets, Less Liabilities — (0.17)%		(48,842	)

NET ASSETS — 100.00%	$	27,950,880

GDR — Global Depositary Receipts

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	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 Schedule 1.

^f	Affiliated money market fund.

^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.

ⁱ	The cost of investments for federal income tax purposes was $31,432,870. Net unrealized depreciation was $3,433,148, of which $1,958,057 represented gross unrealized appreciation on securities and $5,391,205 represented gross unrealized depreciation on securities.


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2016

Schedule 1 — Affiliates (Note 2)


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)
iShares India 50 ETF		13,844		6,603		(1,736	)		18,711	$	562,640	$	2,452	$	(4,683	)

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	27,009,053	$	—	$	12,330	$	27,021,383
Investment companies		562,640		—		—		562,640
Preferred stocks		201,470		—		—		201,470
Money market funds		214,229		—		—		214,229

Total	$	27,987,392	$	—	$	12,330	$	27,999,722

See notes to financial statements.


20		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 98.36%

AUSTRALIA — 1.54%
AWE Ltd.^a		9,380	$	4,899
Beach Energy Ltd.		22,101		9,385
Karoon Gas Australia Ltd.^a,b		5,240		5,198
Oil Search Ltd.		25,740		129,998
Paladin Energy Ltd.^a		16,820		2,023
Santos Ltd.		30,760		102,642
Whitehaven Coal Ltd.^a		13,600		19,931
Woodside Petroleum Ltd.		14,100		303,388

				577,464
AUSTRIA — 0.22%
OMV AG		2,980		83,373

				83,373
BRAZIL — 0.72%
Petroleo Brasileiro SA^a		58,000		264,370
QGEP Participacoes SA		4,000		6,915

				271,285
CANADA — 8.77%
Advantage Oil & Gas Ltd.^a,b		3,460		23,602
ARC Resources Ltd.		6,345		110,646
Bankers Petroleum Ltd.^a		4,220		6,079
Baytex Energy Corp.^b		3,842		17,335
Bellatrix Exploration Ltd.^a,b		4,560		3,580
Birchcliff Energy Ltd.^a,b		2,680		18,547
Bonavista Energy Corp.		3,120		8,252
Bonterra Energy Corp.		560		10,576
Cameco Corp.		8,180		75,438
Canadian Natural Resources Ltd.		21,040		653,145
Cardinal Energy Ltd.		1,065		6,973
Cenovus Energy Inc.		15,920		229,933
Crescent Point Energy Corp.		9,340		140,949
Crew Energy Inc.^a		3,540		17,915
Denison Mines Corp.^a,b		5,380		2,665
Encana Corp.		15,440		147,333
Enerplus Corp.		4,200		29,226
Freehold Royalties Ltd.		1,021		8,786
Husky Energy Inc.		7,340		90,180
Imperial Oil Ltd.		5,840		178,086
Kelt Exploration Ltd.^a,b		2,527		9,187
MEG Energy Corp.^a,b		3,080		12,723
NuVista Energy Ltd.^a		2,920		16,068
Painted Pony Petroleum Ltd.^a		1,940		12,361
Paramount Resources Ltd. Class A^a,b		1,360		14,460


Security	Shares		Value
Parex Resources Inc.^a		2,000	$	23,658
Pengrowth Energy Corp.		11,241		16,193
Penn West Petroleum Ltd.		3,640		5,771
Peyto Exploration & Development Corp.		3,460		99,392
PrairieSky Royalty Ltd.		3,800		74,433
Raging River Exploration Inc.^a		3,860		31,273
Seven Generations Energy Ltd. Class A^a		4,280		98,515
Suncor Energy Inc.		30,920		838,013
Surge Energy Inc.		5,440		9,495
TORC Oil & Gas Ltd.		1,560		9,179
Tourmaline Oil Corp.^a		4,020		112,997
Vermilion Energy Inc.		2,420		87,408
Whitecap Resources Inc.		4,420		33,519

				3,283,891
CHINA — 2.26%
China Coal Energy Co. Ltd. Class H^a,b		60,000		28,698
China Shenhua Energy Co. Ltd. Class H		60,000		107,829
CNOOC Ltd.		340,000		417,726
Inner Mongolia Yitai Coal Co. Ltd. Class B		100		80
MIE Holdings Corp.^a		32,000		3,135
PetroChina Co. Ltd. Class H		400,000		267,122
Yanzhou Coal Mining Co. Ltd. Class H		40,000		22,896

				847,486
COLOMBIA — 0.12%
Ecopetrol SA^a		104,760		46,815

				46,815
FINLAND — 0.29%
Neste OYJ		2,640		109,791

				109,791
FRANCE — 5.32%
Esso SA Francaise^a		260		10,810
Etablissements Maurel et Prom^a,b		6,960		32,014
Total SA		40,940		1,949,268

				1,992,092
GREECE — 0.01%
Motor Oil Hellas Corinth Refineries SA		176		1,978

				1,978
HUNGARY — 0.15%
MOL Hungarian Oil & Gas PLC		880		54,857

				54,857


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2016


Security	Shares		Value
INDIA — 1.27%
Reliance Industries Ltd. GDR^c		15,260	$	476,112

				476,112
INDONESIA — 0.21%
Adaro Energy Tbk PT		382,000		33,117
Sugih Energy Tbk PT^a		618,000		5,311
Tambang Batubara Bukit Asam Persero Tbk PT		6,000		4,489
United Tractors Tbk PT		24,000		33,924

				76,841
ISRAEL — 0.13%
Naphtha Israel Petroleum Corp. Ltd.^a		1,221		7,314
Oil Refineries Ltd.^a		36,780		13,612
Paz Oil Co. Ltd.		160		26,012

				46,938
ITALY — 1.93%
Eni SpA		47,540		716,911
Saras SpA		4,074		6,076

				722,987
JAPAN — 1.13%
Cosmo Energy Holdings Co. Ltd.		2,000		20,883
Idemitsu Kosan Co. Ltd.		2,000		36,487
INPEX Corp.		20,000		173,713
Japan Petroleum Exploration Co. Ltd.		100		2,203
JX Holdings Inc.		42,000		157,102
Showa Shell Sekiyu KK		4,000		34,108

				424,496
NORWAY — 1.01%
Det Norske Oljeselskap ASA^a,b		2,360		32,170
DNO ASA^a,b		14,040		14,753
Statoil ASA		20,920		330,563

				377,486
POLAND — 0.33%
Grupa Lotos SA^a		2,260		16,785
Lubelski Wegiel Bogdanka SA		148		2,119
Polski Koncern Naftowy ORLEN SA		6,360		105,693

				124,597
PORTUGAL — 0.25%
Galp Energia SGPS SA		6,324		91,775

				91,775
RUSSIA — 2.23%
Lukoil PJSC		4,740		212,545
Lukoil PJSC ADR		3,247		145,628


Security	Shares		Value
Novatek OJSC GDR^d		1,667	$	179,702
Rosneft PJSC		9,280		48,969
Rosneft PJSC GDR^d		10,590		55,333
Surgutneftegas OJSC		68,000		32,542
Surgutneftegas OJSC ADR		6,400		30,170
Tatneft PJSC Class S		26,200		128,288

				833,177
SOUTH AFRICA — 0.05%
Exxaro Resources Ltd.		3,540		18,099

				18,099
SOUTH KOREA — 0.58%
S-Oil Corp.		960		60,872
SK Innovation Co. Ltd.		1,200		156,592

				217,464
SPAIN — 0.75%
Repsol SA		20,900		280,259

				280,259
SWEDEN — 0.18%
Lundin Petroleum AB^a		3,900		68,533

				68,533
THAILAND — 0.40%
Bangchak Petroleum PCL (The) NVDR		10,000		9,750
Banpu PCL NVDR^b		26,000		11,792
Esso Thailand PCL NVDR^a		44,000		7,627
IRPC PCL NVDR		230,000		32,159
PTT Exploration & Production PCL NVDR		24,031		56,406
Thai Oil PCL NVDR		16,000		32,702

				150,436
TURKEY — 0.14%
Tupras Turkiye Petrol Rafinerileri AS		2,620		51,265

				51,265
UNITED KINGDOM — 15.38%
Amerisur Resources PLC^a,b		36,680		12,490
BP PLC		340,380		1,907,559
Cairn Energy PLC^a		10,820		26,315
EnQuest PLC^a,b		36,081		12,641
Faroe Petroleum PLC^a,b		19,580		16,925
Ophir Energy PLC^a		22,120		21,366
Premier Oil PLC^a		12,360		11,777
Royal Dutch Shell PLC Class A		77,340		1,884,540
Royal Dutch Shell PLC Class B		69,460		1,766,671
SOCO International PLC		8,240		15,783
Stobart Group Ltd.		14,840		30,806


22		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2016


Security	Shares		Value
Tullow Oil PLC^a,b		17,480	$	49,885

				5,756,758
UNITED STATES — 52.99%
Alon USA Energy Inc.		820		6,708
Anadarko Petroleum Corp.		9,500		507,965
Antero Resources Corp.^a		2,800		71,568
Apache Corp.		7,100		352,870
Bill Barrett Corp.^a		940		6,242
Cabot Oil & Gas Corp.		8,600		211,818
California Resources Corp.		649		6,444
Callon Petroleum Co.^a		1,820		26,481
Carrizo Oil & Gas Inc.^a		1,000		38,290
Chesapeake Energy Corp.^a		10,600		67,310
Chevron Corp.		35,020		3,522,311
Cimarex Energy Co.		1,820		240,568
Cobalt International Energy Inc.^a		5,400		6,480
Concho Resources Inc.^a		2,620		338,504
ConocoPhillips		23,120		949,076
CONSOL Energy Inc.		3,740		68,218
Continental Resources Inc./OK^a		1,820		87,287
CVR Energy Inc.		720		10,505
Delek U.S. Holdings Inc.		1,340		23,517
Denbury Resources Inc.		7,280		22,422
Devon Energy Corp.		8,680		376,104
Diamondback Energy Inc.^a		1,480		140,970
Energen Corp.		1,780		102,350
EOG Resources Inc.		10,400		920,296
EQT Corp.		3,300		235,950
Exxon Mobil Corp.		76,700		6,683,638
Gran Tierra Energy Inc.^a		700		1,939
Gulfport Energy Corp.^a		2,220		63,492
Hess Corp.		5,360		291,048
HollyFrontier Corp.		3,300		85,404
Kosmos Energy Ltd.^a		1,940		12,047
Laredo Petroleum Inc.^a		2,840		34,875
Marathon Oil Corp.		14,980		225,000
Marathon Petroleum Corp.		9,820		417,448
Matador Resources Co.^a		1,300		29,835
Memorial Resource Development Corp.^a		1,700		24,480
Murphy Oil Corp.		3,340		89,245
Newfield Exploration Co.^a		3,720		161,299
Noble Energy Inc.		8,080		278,598
Northern Oil and Gas Inc.^a		1,700		5,508
Oasis Petroleum Inc.^a		2,580		24,458


Security	Shares		Value
Occidental Petroleum Corp.		14,160	$	1,088,196
Par Pacific Holdings Inc.^a		620		7,589
Parsley Energy Inc. Class A^a		2,560		86,656
PBF Energy Inc.		1,800		39,420
PDC Energy Inc.^a		860		57,104
Pioneer Natural Resources Co.		3,080		551,474
QEP Resources Inc.		4,140		79,074
Range Resources Corp.		3,240		124,967
RSP Permian Inc.^a		1,300		50,765
Sanchez Energy Corp.^a		705		6,056
SM Energy Co.		1,460		55,305
Southwestern Energy Co.^a		8,860		123,243
Synergy Resources Corp.^a		2,140		14,017
Tesoro Corp.		2,220		167,432
Valero Energy Corp.		8,840		489,294
Western Refining Inc.		1,460		36,734
Whiting Petroleum Corp.^a		3,882		28,300
WPX Energy Inc.^a		5,360		64,320

				19,838,514

TOTAL COMMON STOCKS
(Cost: $40,061,095)				36,824,769

PREFERRED STOCKS — 0.94%

BRAZIL — 0.76%
Petroleo Brasileiro SA		72,000		286,103

				286,103
RUSSIA — 0.18%
Surgutneftegas OJSC		132,000		66,462

				66,462

TOTAL PREFERRED STOCKS
(Cost: $308,160)				352,565

RIGHTS — 0.00%

THAILAND — 0.00%
Bangchak Petroleum PCL (The)^a		500		—

				—
UNITED STATES — 0.00%
Par Pacific Holdings Inc.^a		620		24

				24

TOTAL RIGHTS
(Cost: $0)				24


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2016


Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.08%

MONEY MARKET FUNDS — 1.08%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^e,f,g		379,615	$	379,615
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^e,f		25,744		25,744

				405,359

TOTAL SHORT-TERM INVESTMENTS
(Cost: $405,359)				405,359

TOTAL INVESTMENTS IN SECURITIES — 100.38%
(Cost: $40,774,614)^h				37,582,717
Other Assets, Less Liabilities — (0.38)%				(142,692	)

NET ASSETS — 100.00%			$	37,440,025

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

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	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 money market fund.

^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.

^h	The cost of investments for federal income tax purposes was $41,407,413. Net unrealized depreciation was $3,824,696, of which $1,041,470 represented gross unrealized appreciation on securities and $4,866,166 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Common stocks	$	36,819,458	$	5,311		$	—	$	36,824,769
Preferred stocks		352,565		—			—		352,565
Rights		24		0	^a		—		24
Money market funds		405,359		—			—		405,359

Total	$	37,577,406	$	5,311		$	—	$	37,582,717

Rounds to less than $1.

See notes to financial statements.


24		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GLOBAL GOLD MINERS ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 100.01%

AUSTRALIA — 9.78%
Metals X Ltd.^a		2,202,776	$	2,508,078
Newcrest Mining Ltd.^b		1,153,847		19,242,591
St. Barbara Ltd.^b		2,013,020		4,281,467

				26,032,136
CANADA — 50.45%
Agnico Eagle Mines Ltd.		274,594		13,911,256
Alacer Gold Corp.^b		1,388,783		3,122,526
Alamos Gold Inc. Class A		794,666		5,590,311
Barrick Gold Corp.		2,016,785		34,262,519
Centerra Gold Inc.		688,995		3,444,844
China Gold International Resources Corp. Ltd.^b		1,586,571		3,047,261
Eldorado Gold Corp.		1,477,277		4,728,908
Goldcorp Inc.		1,301,937		19,806,152
IAMGOLD Corp.^a,b		1,430,563		5,309,890
Kinross Gold Corp.^b		2,885,998		11,525,955
Kirkland Lake Gold Inc.^b		403,106		3,284,328
New Gold Inc.^b		1,468,852		7,052,908
Primero Mining Corp.^a,b		1,533,692		2,326,167
Richmont Mines Inc.^b		331,069		2,785,718
SEMAFO Inc.^b		1,093,356		4,641,586
Yamana Gold Inc.		2,323,507		9,403,469

				134,243,798
HONG KONG — 1.10%
G-Resources Group Ltd.		159,699,000		2,923,551

				2,923,551
PERU — 2.62%
Cia. de Minas Buenaventura SA ADR^b		565,252		6,986,515

				6,986,515
SOUTH AFRICA — 13.19%
AngloGold Ashanti Ltd.^b		735,179		11,980,388
Gold Fields Ltd.		2,027,578		10,349,995
Harmony Gold Mining Co. Ltd.^b		1,332,308		4,748,234
Sibanye Gold Ltd.		2,066,483		8,009,401

				35,088,018
TURKEY — 1.18%
Koza Altin Isletmeleri AS^b		674,688		3,153,302

				3,153,302
UNITED KINGDOM — 7.13%
Acacia Mining PLC		49,447		298,353


Security	Shares		Value
Centamin PLC		3,341,061	$	6,498,041
Randgold Resources Ltd.		129,960		12,169,910

				18,966,304
UNITED STATES — 14.56%
McEwen Mining Inc.		1,126,739		3,864,715
Newmont Mining Corp.		912,134		34,880,004

				38,744,719

TOTAL COMMON STOCKS
(Cost: $253,325,323)				266,138,343

SHORT-TERM INVESTMENTS — 0.97%

MONEY MARKET FUNDS — 0.97%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		2,229,494		2,229,494
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		352,827		352,827

				2,582,321

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,582,321)				2,582,321

TOTAL INVESTMENTS IN SECURITIES — 100.98%
(Cost: $255,907,644)^f				268,720,664
Other Assets, Less Liabilities — (0.98)%				(2,612,285	)

NET ASSETS — 100.00%			$	266,108,379


ADR		— 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 money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $276,141,996. Net unrealized depreciation was $7,421,332, of which $24,343,195 represented gross unrealized appreciation on securities and $31,764,527 represented gross unrealized depreciation on securities.


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL GOLD MINERS ETF

August 31, 2016

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	266,138,343	$	—	$	—	$	266,138,343
Money market funds		2,582,321		—		—		2,582,321

Total	$	268,720,664	$	—	$	—	$	268,720,664

See notes to financial statements.


26		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 97.29%

AUSTRALIA — 17.86%
Alumina Ltd.		1,046,892	$	1,046,433
Arrium Ltd.^a,b		727,228		6
BHP Billiton Ltd.		1,374,020		21,096,939
BlueScope Steel Ltd.		245,552		1,603,693
CuDeco Ltd.^a,b		14,930		5,779
Fortescue Metals Group Ltd.		651,372		2,398,740
Galaxy Resources Ltd.^b		484,924		145,778
Iluka Resources Ltd.		184,576		912,765
Independence Group NL		182,209		502,567
Jacana Minerals Ltd.^a,b		6,808		—
Orocobre Ltd.^b		83,224		240,181
OZ Minerals Ltd.		123,600		593,577
Pilbara Minerals Ltd.^a,b		435,484		173,463
Rio Tinto Ltd.		181,692		6,499,812
Sandfire Resources NL		63,860		263,007
Sims Metal Management Ltd.		74,572		558,204
South32 Ltd.^b		2,303,904		3,324,479
Syrah Resources Ltd.^b		95,172		303,988
Western Areas Ltd.^a		103,000		191,202

				39,860,613
AUSTRIA — 0.71%
Voestalpine AG		47,792		1,579,284

				1,579,284
BELGIUM — 0.42%
Bekaert SA		16,892		696,662
Nyrstar NV^a,b		32,970		237,617

				934,279
BRAZIL — 1.57%
Cia. Siderurgica Nacional SA^b		254,600		677,086
Vale SA		540,700		2,832,413

				3,509,499
CANADA — 5.04%
Altius Minerals Corp.		16,892		126,170
Canam Group Inc.		16,480		131,383
Dominion Diamond Corp.		37,904		332,225
First Quantum Minerals Ltd.		290,872		2,203,626
HudBay Minerals Inc.		100,528		407,613
Imperial Metals Corp.^a,b		21,836		109,342
Ivanhoe Mines Ltd. Class A^a,b		251,320		356,278
Labrador Iron Ore Royalty Corp.^a		24,720		244,930
Lucara Diamond Corp.		141,728		388,873
Lundin Mining Corp.^b		277,276		1,048,199


Security	Shares		Value
Major Drilling Group International Inc.		38,728	$	215,771
Nevsun Resources Ltd.		69,832		219,813
Stornoway Diamond Corp.^b		229,484		195,894
Teck Resources Ltd. Class B		242,668		3,930,258
Turquoise Hill Resources Ltd.^b		437,956		1,348,533

				11,258,908
CHILE — 0.07%
CAP SA		31,358		157,206

				157,206
CHINA — 0.92%
Aluminum Corp. of China Ltd. Class H^b		1,648,000		618,259
China Daye Non-Ferrous Metals Mining Ltd.^b		2,472,000		37,287
China Metal Recycling Holdings Ltd.^b		132,000		—
Inner Mongolia Eerduosi Resourses Co. Ltd. Class B		91,074		85,792
Jiangxi Copper Co. Ltd. Class H		462,000		533,667
MMG Ltd.^a,b		492,000		112,903
North Mining Shares Co. Ltd.^a,b		8,240,000		186,965
Shougang Concord International Enterprises Co. Ltd.^b		4,120,000		121,633
Shougang Fushan Resources Group Ltd.^a		1,648,000		305,942
Xinjiang Xinxin Mining Industry Co. Ltd. Class H^b		412,000		44,617

				2,047,065
EGYPT — 0.02%
Ezz Steel^b		44,480		39,521

				39,521
FINLAND — 0.30%
Outokumpu OYJ^a,b		120,720		659,352

				659,352
FRANCE — 2.42%
APERAM SA		19,849		817,952
ArcelorMittal^b		760,553		4,481,824
Eramet^a,b		2,884		99,959

				5,399,735
GERMANY — 2.20%
Aurubis AG		15,656		823,281
Salzgitter AG		16,480		500,622


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2016


Security	Shares		Value
ThyssenKrupp AG		154,088	$	3,585,904

				4,909,807
INDIA — 0.83%
Tata Steel Ltd. GDR^a,c		344,432		1,863,377

				1,863,377
INDONESIA — 0.18%
Aneka Tambang Persero Tbk PT^b		4,037,638		219,156
Krakatau Steel Persero Tbk PT^b		1,153,600		78,704
Timah Persero Tbk PT		1,654,067		99,755

				397,615
JAPAN — 10.91%
Asahi Holdings Inc.		4,900		84,039
Daido Steel Co. Ltd.		40,000		181,757
Dowa Holdings Co. Ltd.		46,000		308,194
Hitachi Metals Ltd.		82,400		997,388
JFE Holdings Inc.		250,500		3,890,639
Kobe Steel Ltd.		1,648,000		1,529,540
Maruichi Steel Tube Ltd.		41,200		1,421,995
Mitsubishi Materials Corp.		427,000		1,205,433
Mitsui Mining & Smelting Co. Ltd.		413,000		842,490
Nakayama Steel Works Ltd.^b		412,000		242,974
Neturen Co. Ltd.		41,200		286,391
Nippon Denko Co. Ltd.		82,400		133,835
Nippon Light Metal Holdings Co. Ltd.		288,400		613,409
Nippon Steel & Sumitomo Metal Corp.		371,240		7,881,694
Nisshin Steel Co. Ltd.		41,200		529,364
OSAKA Titanium Technologies Co. Ltd.^a		1,800		27,304
Sumitomo Metal Mining Co. Ltd.		186,000		2,359,279
Toho Titanium Co. Ltd.^a		41,200		294,755
Tokyo Steel Manufacturing Co. Ltd.		123,600		869,926
Topy Industries Ltd.		44,000		89,331
Toyo Kohan Co. Ltd.		82,400		217,482
UACJ Corp.		43,386		135,483
Yamato Kogyo Co. Ltd.		6,500		198,893

				24,341,595
MALAYSIA — 0.10%
Press Metal Bhd		206,000		212,324

				212,324
MEXICO — 2.03%
Grupo Mexico SAB de CV Series B		1,648,000		4,110,229


Security	Shares		Value
Industrias CH SAB de CV Series B^a,b		35,800	$	162,106
Minera Frisco SAB de CV Series A1^a,b		329,600		254,160

				4,526,495
NORWAY — 1.11%
Norsk Hydro ASA		585,452		2,486,088

				2,486,088
PERU — 0.44%
Southern Copper Corp.^a		37,904		978,681

				978,681
PHILIPPINES — 0.04%
Nickel Asia Corp.		585,800		78,325

				78,325
POLAND — 0.67%
Boryszew SA^b		86,108		134,071
Jastrzebska Spolka Weglowa SA^b		21,424		212,304
KGHM Polska Miedz SA		61,800		1,157,362

				1,503,737
RUSSIA — 2.61%
Alrosa PJSC		1,071,200		1,239,194
Mechel PJSC^b		29,344		61,622
MMC Norilsk Nickel PJSC		23,484		3,457,414
Severstal PJSC		90,640		1,056,039

				5,814,269
SINGAPORE — 0.04%
Midas Holdings Ltd.^a		581,600		96,019

				96,019
SOUTH AFRICA — 1.19%
African Rainbow Minerals Ltd.		46,144		273,838
Anglo American Platinum Ltd.^a,b		23,072		619,852
Assore Ltd.		15,244		172,092
Impala Platinum Holdings Ltd.^b		263,268		1,010,192
Northam Platinum Ltd.^b		143,788		473,946
Royal Bafokeng Platinum Ltd.^b		34,196		110,623

				2,660,543
SOUTH KOREA — 4.65%
Dongkuk Steel Mill Co. Ltd.^b		24,790		188,537
Hyundai Steel Co.		33,784		1,554,367
Jenax Inc.^a,b		5,768		114,843
KISCO Corp.		2,066		82,918
KISWIRE Ltd.		2,563		86,315
Korea Zinc Co. Ltd.		3,708		1,591,281


28		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2016


Security	Shares		Value
Kumkang Kind Co. Ltd.		350	$	15,303
Poongsan Corp.		10,712		301,185
Poongsan Holdings Corp.		2,884		117,041
POSCO		29,664		6,145,636
Seah Besteel Corp.		5,356		115,766
SeAH Steel Corp.		1,263		74,647

				10,387,839
SPAIN — 0.41%
Acerinox SA		66,652		825,478
Tubacex SA^a		34,196		96,357

				921,835
SWEDEN — 1.60%
Boliden AB		118,244		2,499,754
Granges AB		34,196		346,908
SSAB AB Class A^a,b		96,851		287,643
SSAB AB Class B^a,b		184,117		442,049

				3,576,354
SWITZERLAND — 0.07%
Schmolz + Bickenbach AG Registered^a,b		236,076		165,785

				165,785
TAIWAN — 2.18%
China Metal Products		412,011		393,436
China Steel Corp.		5,356,612		3,713,949
Feng Hsin Steel Co. Ltd.		412,000		527,165
TA Chen Stainless Pipe		33,559		17,239
Ton Yi Industrial Corp.		70,000		31,106
Tung Ho Steel Enterprise Corp.		75,000		43,728
Yieh Phui Enterprise Co. Ltd.^b		412,440		128,942

				4,855,565
THAILAND — 0.03%
STP & I PCL NVDR^a		254,360		70,175

				70,175
TURKEY — 0.49%
Borusan Mannesmann Boru Sanayi ve Ticaret AS^a		19,423		58,878
Eregli Demir ve Celik Fabrikalari TAS		588,748		885,380
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class D		330,859		156,535

				1,100,793
UNITED KINGDOM — 22.38%
African Minerals Ltd.^a,b		69,505		1
Anglo American PLC^b		594,516		6,071,813


Security	Shares		Value
Antofagasta PLC		167,684	$	1,086,438
BHP Billiton PLC		898,984		11,655,071
Evraz PLC^b		139,671		234,147
Gem Diamonds Ltd.		46,968		77,354
Glencore PLC		5,193,260		11,838,201
KAZ Minerals PLC^a,b		107,532		241,109
Lonmin PLC^a,b		120,716		304,346
Petra Diamonds Ltd.		222,480		330,718
Rio Tinto PLC		526,536		15,867,785
Vedanta Ltd. ADR		201,521		2,015,210
Vedanta Resources PLC		33,372		215,477

				49,937,670
UNITED STATES — 13.80%
AK Steel Holding Corp.^b		97,232		433,655
Alcoa Inc.		563,616		5,681,249
Allegheny Technologies Inc.		44,908		766,131
Carpenter Technology Corp.		21,012		762,315
Century Aluminum Co.^b		23,072		144,892
Cliffs Natural Resources Inc.^b		67,980		387,486
Commercial Metals Co.		49,028		760,915
Compass Minerals International Inc.		15,244		1,136,135
Freeport-McMoRan Inc.		507,996		5,227,279
Haynes International Inc.		5,356		197,583
Kaiser Aluminum Corp.		4,740		403,990
Materion Corp.		9,064		265,938
Nucor Corp.		135,548		6,575,434
Reliance Steel & Aluminum Co.		30,900		2,227,272
Schnitzer Steel Industries Inc. Class A		10,712		201,171
Steel Dynamics Inc.		104,236		2,566,290
Stillwater Mining Co.^b		54,384		687,958
SunCoke Energy Inc.		23,072		150,429
TimkenSteel Corp.		12,772		125,804
U.S. Steel Corp.		61,800		1,201,392
Worthington Industries Inc.		21,012		901,415

				30,804,733

TOTAL COMMON STOCKS
(Cost: $237,046,515)				217,135,086

PREFERRED STOCKS — 2.44%

BRAZIL — 2.44%
Bradespar SA		82,400		261,943
Gerdau SA		370,800		1,041,148
Metalurgica Gerdau SA		247,200		283,602


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2016


Security	Shares		Value
Usinas Siderurgicas de Minas Gerais SA Class A		164,800	$	176,837
Vale SA		824,000		3,687,080

				5,450,610

TOTAL PREFERRED STOCKS
(Cost: $4,433,118)				5,450,610

SHORT-TERM INVESTMENTS — 1.88%

MONEY MARKET FUNDS — 1.88%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^d,e,f		3,818,084		3,818,084
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^d,e		377,671		377,671

				4,195,755

TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,195,755)				4,195,755

TOTAL INVESTMENTS IN SECURITIES — 101.61%
(Cost: $245,675,388)^g				226,781,451
Other Assets, Less Liabilities — (1.61)%				(3,599,599	)

NET ASSETS — 100.00%			$	223,181,852

ADR — American Depositary Receipts

GDR — 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 money market fund.

^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.

^g	The cost of investments for federal income tax purposes was $256,729,878. Net unrealized depreciation was $29,948,427, of which $8,413,883 represented gross unrealized appreciation on securities and $38,362,310 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	217,135,079	$	—	$	7	$	217,135,086
Preferred stocks		5,450,610		—		—		5,450,610
Money market funds		4,195,755		—		—		4,195,755

Total	$	226,781,444	$	—	$	7	$	226,781,451

See notes to financial statements.


30		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GLOBAL SILVER MINERS ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 99.96%

CANADA — 64.24%
Alexco Resource Corp.^a,b		555,776	$	931,906
Americas Silver Corp.^a,b		2,789,760		669,772
Dalradian Resources Inc.^a,b		964,352		992,245
Endeavour Silver Corp.^a		355,776		1,534,768
Excellon Resources Inc.^a,b		638,720		803,238
First Majestic Silver Corp.^a,b		309,184		3,725,620
Fortuna Silver Mines Inc.^a		386,496		2,883,881
GoGold Resources Inc.^a		566,784		436,303
Great Panther Silver Ltd.^a,b		586,688		710,974
Klondex Mines Ltd.^a		320,512		1,670,898
Levon Resources Ltd.^a		1,976,640		708,068
MAG Silver Corp.^a,b		186,780		2,768,851
Mandalay Resources Corp.		1,146,752		961,417
Minco Silver Corp.^a,b		641,280		654,941
Pan American Silver Corp.		224,896		3,920,103
Primero Mining Corp.^a,b		467,677		709,331
Silver Standard Resources Inc.^a,b		300,032		3,519,296
Silver Wheaton Corp.		798,336		20,225,364
Silvercorp Metals Inc.^a,b		583,552		1,552,225
Tahoe Resources Inc.		502,784		6,556,636

				55,935,837
CHINA — 0.61%
China Silver Group Ltd.^b		2,304,000		528,716

				528,716
HONG KONG — 1.19%
G-Resources Group Ltd.		56,550,000		1,035,240

				1,035,240
MEXICO — 5.85%
Industrias Penoles SAB de CV		220,800		5,097,694

				5,097,694
PERU — 4.16%
Cia. de Minas Buenaventura SA ADR^a		293,248		3,624,545

				3,624,545
UNITED KINGDOM — 11.85%
Fresnillo PLC		382,016		8,035,237
Hochschild Mining PLC^a		725,824		2,287,171

				10,322,408
UNITED STATES — 12.06%
Coeur Mining Inc.^a		310,400		3,954,496
Hecla Mining Co.		690,176		3,851,182


Security	Shares		Value
McEwen Mining Inc.		644,032	$	2,209,030
Solitario Exploration & Royalty Corp.^a		658,112		487,003

				10,501,711

TOTAL COMMON STOCKS
(Cost: $72,587,466)				87,046,151

SHORT-TERM INVESTMENTS — 9.10%

MONEY MARKET FUNDS — 9.10%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^c,d,e		7,889,139		7,889,139
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^c,d		34,480		34,480

				7,923,619

TOTAL SHORT-TERM INVESTMENTS
(Cost: $7,923,619)				7,923,619

TOTAL INVESTMENTS IN SECURITIES — 109.06%
(Cost: $80,511,085)^f				94,969,770
Other Assets, Less Liabilities — (9.06)%				(7,891,733	)

NET ASSETS — 100.00%			$	87,078,037


ADR		— 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 money market fund.

^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.

^f	The cost of investments for federal income tax purposes was $84,710,307. Net unrealized appreciation was $10,259,463, of which $15,335,092 represented gross unrealized appreciation on securities and $5,075,629 represented gross unrealized depreciation on securities.


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL SILVER MINERS ETF

August 31, 2016

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	87,046,151	$	—	$	—	$	87,046,151
Money market funds		7,923,619		—		—		7,923,619

Total	$	94,969,770	$	—	$	—	$	94,969,770

See notes to financial statements.


32		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Global Agriculture Producers ETF			iShares MSCI Global Energy Producers ETF			iShares MSCI Global Gold Miners ETF

ASSETS
Investments, at cost:
Unaffiliated	$	30,451,461		$	40,369,255		$	253,325,323
Affiliated (Note 2)		732,565			405,359			2,582,321

Total cost of investments	$	31,184,026		$	40,774,614		$	255,907,644

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	27,222,853		$	37,177,358		$	266,138,343
Affiliated (Note 2)		776,869			405,359			2,582,321

Total fair value of investments		27,999,722			37,582,717			268,720,664
Foreign currency, at value^b		55,614			36,780			178,407
Receivables:
Investment securities sold		37,274			58,244			11,470,532
Due from custodian (Note 4)		—			—			94,948
Dividends and interest		42,710			222,951			66,557
Tax reclaims		57,684			771			—

Total Assets		28,193,004			37,901,463			280,531,108


LIABILITIES
Payables:
Investment securities purchased		31,126			69,406			11,769,721
Collateral for securities on loan (Note 1)		202,370			379,615			2,229,494
Capital shares redeemed		—			—			320,785
Investment advisory fees (Note 2)		8,628			12,417			102,729

Total Liabilities		242,124			461,438			14,422,729


NET ASSETS	$	27,950,880		$	37,440,025		$	266,108,379


Net assets consist of:
Paid-in capital	$	33,218,806		$	42,076,002		$	287,888,007
Undistributed (distributions in excess of) net investment income		115,569			226,240			(6,914	)
Accumulated net realized loss		(2,195,285	)		(1,669,988	)		(34,576,532	)
Net unrealized appreciation (depreciation)		(3,188,210	)		(3,192,229	)		12,803,818

NET ASSETS	$	27,950,880		$	37,440,025		$	266,108,379


Shares outstanding^c		1,150,000			2,000,000			25,100,000


Net asset value per share	$	24.31		$	18.72		$	10.60

^a	Securities on loan with values of $188,996, $327,113 and $2,068,680, respectively. See Note 1.

^b	Cost of foreign currency: $55,783, $37,101 and $187,453, 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			33

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2016


	iShares MSCI Global Metals & Mining Producers ETF			iShares MSCI Global Silver Miners ETF

ASSETS
Investments, at cost:
Unaffiliated	$	241,479,633		$	72,587,466
Affiliated (Note 2)		4,195,755			7,923,619

Total cost of investments	$	245,675,388		$	80,511,085

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	222,585,696		$	87,046,151
Affiliated (Note 2)		4,195,755			7,923,619

Total fair value of investments		226,781,451			94,969,770
Foreign currency, at value^b		197,114			58,036
Receivables:
Investment securities sold		78,715			1,680,584
Dividends and interest		446,817			96,957
Tax reclaims		14,469			—

Total Assets		227,518,566			96,805,347


LIABILITIES
Payables:
Investment securities purchased		444,627			1,718,236
Collateral for securities on loan (Note 1)		3,818,084			7,889,139
Capital shares redeemed		—			87,430
Investment advisory fees (Note 2)		74,003			32,505

Total Liabilities		4,336,714			9,727,310


NET ASSETS	$	223,181,852		$	87,078,037


Net assets consist of:
Paid-in capital	$	266,809,240		$	79,816,126
Undistributed net investment income		640,757			38,940
Accumulated net realized loss		(25,372,474	)		(7,235,375	)
Net unrealized appreciation (depreciation)		(18,895,671	)		14,458,346

NET ASSETS	$	223,181,852		$	87,078,037


Shares outstanding^c		20,600,000			6,400,000


Net asset value per share	$	10.83		$	13.61

^a	Securities on loan with values of $3,510,032 and $7,235,948, respectively. See Note 1.

^b	Cost of foreign currency: $197,918 and $58,302, respectively.

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

See notes to financial statements.


34		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Global Agriculture Producers ETF			iShares MSCI Global Energy Producers ETF			iShares MSCI Global Gold Miners ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	677,686		$	1,180,807		$	475,642
Dividends — affiliated (Note 2)		2,507			76			452
Securities lending income — affiliated — net (Note 2)		27,941			7,164			39,419

Total investment income		708,134			1,188,047			515,513


EXPENSES
Investment advisory fees (Note 2)		100,385			123,535			451,251

Total expenses		100,385			123,535			451,251
Less investment advisory fees waived (Note 2)		(3,606	)		—			—

Net expenses		96,779			123,535			451,251

Net investment income		611,355			1,064,512			64,262


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(827,378	)		(1,056,137	)		(11,536,714	)
Investments — affiliated (Note 2)		(4,617	)		—			—
In-kind redemptions — unaffiliated		(137,561	)		—			3,702,470
In-kind redemptions — affiliated (Note 2)		(66	)		—			—
Foreign currency transactions		3,833			(16,285	)		31,469

Net realized loss		(965,789	)		(1,072,422	)		(7,802,775	)

Net change in unrealized appreciation/depreciation on:
Investments		1,180,278			3,444,285			43,616,399
Translation of assets and liabilities in foreign currencies		(392	)		345			(8,795	)

Net change in unrealized appreciation/depreciation		1,179,886			3,444,630			43,607,604

Net realized and unrealized gain		214,097			2,372,208			35,804,829

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	825,452		$	3,436,720		$	35,869,091

^a	Net of foreign withholding tax of $57,063, $67,433 and $57,003, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			35

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2016


	iShares MSCI Global Metals & Mining Producers ETF			iShares MSCI Global Silver Miners ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	2,867,054		$	212,106
Dividends — affiliated (Note 2)		341			62
Securities lending income — affiliated — net (Note 2)		135,945			71,815

		3,003,340			283,983
Less: Other foreign taxes (Note 1)		(61	)		—

Total investment income		3,003,279			283,983


EXPENSES
Investment advisory fees (Note 2)		458,695			128,700

Total expenses		458,695			128,700

Net investment income		2,544,584			155,283


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(7,073,407	)		(2,887,852	)
In-kind redemptions — unaffiliated		1,333,292			1,748,929
Foreign currency transactions		12,509			(6,528	)

Net realized loss		(5,727,606	)		(1,145,451	)

Net change in unrealized appreciation/depreciation on:
Investments		18,661,810			20,735,034
Translation of assets and liabilities in foreign currencies		5,198			208

Net change in unrealized appreciation/depreciation		18,667,008			20,735,242

Net realized and unrealized gain		12,939,402			19,589,791

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	15,483,986		$	19,745,074

^a	Net of foreign withholding tax of $149,620 and $24,701, respectively.

See notes to financial statements.


36		2016 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, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	611,355		$	727,994		$	1,064,512		$	682,782
Net realized gain (loss)		(965,789	)		226,586			(1,072,422	)		(283,735	)
Net change in unrealized appreciation/depreciation		1,179,886			(4,642,303	)		3,444,630			(7,286,015	)

Net increase (decrease) in net assets resulting from operations		825,452			(3,687,723	)		3,436,720			(6,886,968	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(596,259	)		(764,487	)		(1,004,806	)		(528,102	)

Total distributions to shareholders		(596,259	)		(764,487	)		(1,004,806	)		(528,102	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,137,540			1,262,653			10,268,692			27,723,504
Cost of shares redeemed		(1,055,827	)		(15,565,180	)		—			(3,987,605	)

Net increase (decrease) in net assets from capital share transactions		81,713			(14,302,527	)		10,268,692			23,735,899

INCREASE (DECREASE) IN NET ASSETS		310,906			(18,754,737	)		12,700,606			16,320,829

NET ASSETS
Beginning of year		27,639,974			46,394,711			24,739,419			8,418,590

End of year	$	27,950,880		$	27,639,974		$	37,440,025		$	24,739,419

Undistributed net investment income included in net assets at end of year	$	115,569		$	96,640		$	226,240		$	182,749


SHARES ISSUED AND REDEEMED
Shares sold		50,000			50,000			600,000			1,300,000
Shares redeemed		(50,000	)		(600,000	)		—			(200,000	)

Net increase (decrease) in shares outstanding		—			(550,000	)		600,000			1,100,000

See notes to financial statements.


FINANCIAL STATEMENTS			37

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, 2016			Year ended August 31, 2015			Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	64,262		$	485,776		$	2,544,584		$	7,527,430
Net realized loss		(7,802,775	)		(12,222,666	)		(5,727,606	)		(18,316,429	)
Net change in unrealized appreciation/depreciation		43,607,604			(26,922,563	)		18,667,008			(46,808,920	)

Net increase (decrease) in net assets resulting from operations		35,869,091			(38,659,453	)		15,483,986			(57,597,919	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(300,013	)		(425,675	)		(2,206,034	)		(7,833,689	)

Total distributions to shareholders		(300,013	)		(425,675	)		(2,206,034	)		(7,833,689	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		191,934,458			19,671,874			159,613,046			98,298,863
Cost of shares redeemed		(7,321,308	)		(5,637,066	)		(18,927,748	)		(147,347,875	)

Net increase (decrease) in net assets from capital share transactions		184,613,150			14,034,808			140,685,298			(49,049,012	)

INCREASE (DECREASE) IN NET ASSETS		220,182,228			(25,050,320	)		153,963,250			(114,480,620	)

NET ASSETS
Beginning of year		45,926,151			70,976,471			69,218,602			183,699,222

End of year	$	266,108,379		$	45,926,151		$	223,181,852		$	69,218,602

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(6,914	)	$	114,183		$	640,757		$	255,560


SHARES ISSUED AND REDEEMED
Shares sold		17,550,000			2,700,000			16,100,000			6,750,000
Shares redeemed		(700,000	)		(750,000	)		(2,000,000	)		(9,350,000	)

Net increase (decrease) in shares outstanding		16,850,000			1,950,000			14,100,000			(2,600,000	)

See notes to financial statements.


38		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Global Silver Miners ETF
	Year ended August 31, 2016			Year ended August 31, 2015

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	155,283		$	76,577
Net realized loss		(1,145,451	)		(2,663,929	)
Net change in unrealized appreciation/depreciation		20,735,242			(6,307,162	)

Net increase (decrease) in net assets resulting from operations		19,745,074			(8,894,514	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(80,025	)		(294,253	)

Total distributions to shareholders		(80,025	)		(294,253	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		58,622,345			8,449,898
Cost of shares redeemed		(3,488,063	)		(957,750	)

Net increase in net assets from capital share transactions		55,134,282			7,492,148

INCREASE (DECREASE) IN NET ASSETS		74,799,331			(1,696,619	)

NET ASSETS
Beginning of year		12,278,706			13,975,325

End of year	$	87,078,037		$	12,278,706

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	38,940		$	(46,962	)


SHARES ISSUED AND REDEEMED
Shares sold		4,700,000			1,000,000
Shares redeemed		(300,000	)		(100,000	)

Net increase in shares outstanding		4,400,000			900,000

See notes to financial statements.


FINANCIAL STATEMENTS			39

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Global Agriculture Producers ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			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	$	24.03		$	27.29		$	24.63		$	24.91		$	24.88

Income from investment operations:
Net investment income^b		0.54			0.50			0.58			0.50			0.28
Net realized and unrealized gain (loss)^c		0.27			(3.21	)		2.63			(0.46	)		(0.05	)

Total from investment operations		0.81			(2.71	)		3.21			0.04			0.23

Less distributions from:
Net investment income		(0.53	)		(0.55	)		(0.55	)		(0.32	)		(0.20	)

Total distributions		(0.53	)		(0.55	)		(0.55	)		(0.32	)		(0.20	)

Net asset value, end of period	$	24.31		$	24.03		$	27.29		$	24.63		$	24.91


Total return		3.55	%		(10.11	)%		13.05	%		0.10	%		0.97	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	27,951		$	27,640		$	46,395		$	35,716		$	9,965
Ratio of expenses to average net assets^e		0.38	%		0.38	%		0.38	%		0.38	%		0.38	%
Ratio of expenses to average net assets prior to waived fees^e		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets^e		2.38	%		1.87	%		2.17	%		1.87	%		1.93	%
Portfolio turnover rate^f		7	%		10	%		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, 2016, August 31, 2015, August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 7%, 10%, 13%, 6%, and 6%, respectively. See Note 4.

See notes to financial statements.


40		2016 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, 2016			Year ended Aug. 31, 2015			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	$	17.67		$	28.06		$	24.06		$	23.51		$	24.79

Income from investment operations:
Net investment income^b		0.59			0.68			0.68			0.63			0.43
Net realized and unrealized gain (loss)^c		1.00			(10.61	)		3.96			0.55			(1.39	)

Total from investment operations		1.59			(9.93	)		4.64			1.18			(0.96	)

Less distributions from:
Net investment income		(0.54	)		(0.46	)		(0.64	)		(0.63	)		(0.32	)

Total distributions		(0.54	)		(0.46	)		(0.64	)		(0.63	)		(0.32	)

Net asset value, end of period	$	18.72		$	17.67		$	28.06		$	24.06		$	23.51


Total return		9.31	%		(35.63	)%		19.44	%		5.10	%		(3.77	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	37,440		$	24,739		$	8,419		$	4,811		$	4,701
Ratio of expenses to average net assets^e		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets^e		3.36	%		3.23	%		2.57	%		2.61	%		3.16	%
Portfolio turnover rate^f		6	%		4	%		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 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 years ended August 31, 2016, August 31, 2015, August 31, 2014, August 31, 2013 and the period ended August 31, 2012 were 6%, 4%, 8%, 6% and 5%, 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 Gold Miners ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			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	$	5.57		$	11.27		$	11.60		$	20.05		$	25.00

Income from investment operations:
Net investment income^b		0.01			0.07			0.08			0.21			0.15
Net realized and unrealized gain (loss)^c		5.05			(5.71	)		(0.33	)		(8.47	)		(5.02	)

Total from investment operations		5.06			(5.64	)		(0.25	)		(8.26	)		(4.87	)

Less distributions from:
Net investment income		(0.03	)		(0.06	)		(0.08	)		(0.19	)		(0.08	)

Total distributions		(0.03	)		(0.06	)		(0.08	)		(0.19	)		(0.08	)

Net asset value, end of period	$	10.60		$	5.57		$	11.27		$	11.60		$	20.05


Total return		91.17	%		(50.16	)%		(2.01	)%		(41.28	)%		(19.45	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	266,108		$	45,926		$	70,976		$	38,285		$	32,084
Ratio of expenses to average net assets^e		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets^e		0.06	%		0.88	%		0.81	%		1.37	%		1.25	%
Portfolio turnover rate^f		30	%		20	%		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.


42		2016 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, 2016			Year ended Aug. 31, 2015			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	$	10.65		$	20.19		$	18.11		$	19.00		$	24.76

Income from investment operations:
Net investment income^b		0.21			0.81			0.50			0.50			0.37
Net realized and unrealized gain (loss)^c		0.20			(8.96	)		2.23			(1.00	)		(6.00	)

Total from investment operations		0.41			(8.15	)		2.73			(0.50	)		(5.63	)

Less distributions from:
Net investment income		(0.23	)		(1.39	)		(0.65	)		(0.39	)		(0.13	)

Total distributions		(0.23	)		(1.39	)		(0.65	)		(0.39	)		(0.13	)

Net asset value, end of period	$	10.83		$	10.65		$	20.19		$	18.11		$	19.00


Total return		4.52	%		(41.94	)%		15.32	%		(2.68	)%		(22.76	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	223,182		$	69,219		$	183,699		$	222,808		$	123,524
Ratio of expenses to average net assets^e		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of expenses to average net assets prior to waived fees^e		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets^e		2.16	%		5.18	%		2.53	%		2.51	%		2.98	%
Portfolio turnover rate^f		8	%		17	%		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.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			43

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Global Silver Miners ETF
	Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			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	$	6.14		$	12.70		$	13.92		$	20.94		$	24.87

Income from investment operations:
Net investment income^b		0.05			0.05			0.08			0.16			0.11
Net realized and unrealized gain (loss)^c		7.44			(6.42	)		(1.15	)		(6.90	)		(3.90	)

Total from investment operations		7.49			(6.37	)		(1.07	)		(6.74	)		(3.79	)

Less distributions from:
Net investment income		(0.02	)		(0.19	)		(0.15	)		(0.28	)		(0.14	)

Total distributions		(0.02	)		(0.19	)		(0.15	)		(0.28	)		(0.14	)

Net asset value, end of period	$	13.61		$	6.14		$	12.70		$	13.92		$	20.94


Total return		122.11	%		(50.51	)%		(7.48	)%		(32.49	)%		(15.18	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	87,078		$	12,279		$	13,975		$	6,959		$	2,094
Ratio of expenses to average net assets^e		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets^e		0.47	%		0.57	%		0.63	%		1.03	%		0.86	%
Portfolio turnover rate^f		27	%		31	%		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.


44		2016 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			45

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

Open-end U.S. mutual funds (including money market 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.


46		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			47

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2016:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Global Agriculture Producers
Citigroup Global Markets Inc.	$	11,390	$	11,390	$	—
Credit Suisse Securities (USA) LLC		8,783		8,783		—
Goldman Sachs & Co.		19,174		19,174		—
HSBC Bank PLC		897		897		—
Morgan Stanley & Co. LLC		67,206		67,206		—
State Street Bank & Trust Company		23,714		23,714		—
UBS Securities LLC		57,832		57,832		—

	$	188,996	$	188,996	$	—


48		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Global Energy Producers
Citigroup Global Markets Inc.	$	15,066	$	15,066	$	—
Credit Suisse Securities (USA) LLC		121,178		121,178		—
Goldman Sachs & Co.		84,346		84,346		—
JPMorgan Clearing Corp.		25,655		25,655		—
Morgan Stanley & Co. LLC		43,939		43,939		—
Nomura Securities International Inc.		5,025		5,025		—
Scotia Capital (USA) Inc.		1,985		1,985		—
SG Americas Securities LLC		1,868		1,868		—
UBS Securities LLC		28,051		28,051		—

	$	327,113	$	327,113	$	—

MSCI Global Gold Miners
Credit Suisse Securities (USA) LLC	$	515,020	$	515,020	$	—
Macquarie Capital (USA) Inc.		569,300		569,300		—
Merrill Lynch, Pierce, Fenner & Smith		380,774		380,774		—
State Street Bank & Trust Company		603,586		603,586		—

	$	2,068,680	$	2,068,680	$	—

MSCI Global Metals & Mining Producers
Citigroup Global Markets Inc.	$	101,115	$	101,115	$	—
Credit Suisse Securities (USA) LLC		821,651		821,651		—
Deutsche Bank Securities Inc.		84,805		84,805		—
HSBC Bank PLC		37,595		37,595		—
Jefferies LLC		175,564		175,564		—
JPMorgan Clearing Corp.		298,250		298,250		—
Merrill Lynch, Pierce, Fenner & Smith		813,626		813,626		—
Morgan Stanley & Co. LLC		443,570		443,570		—
Scotia Capital (USA) Inc.		192,194		192,194		—
SG Americas Securities LLC		110,552		110,552		—
State Street Bank & Trust Company		27,304		27,304		—
UBS Securities LLC		403,806		403,806		—

	$	3,510,032	$	3,510,032	$	—


NOTES TO FINANCIAL STATEMENTS			49

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Global Silver Miners
BMO Capital Markets	$	203,056	$	203,056	$	—
Citigroup Global Markets Inc.		1,686,712		1,686,712		—
Credit Suisse Securities (USA) LLC		1,836,506		1,836,506		—
Goldman Sachs & Co.		57,530		57,530		—
HSBC Bank PLC		84,930		84,930		—
JPMorgan Clearing Corp.		137,228		137,228		—
Merrill Lynch, Pierce, Fenner & Smith		278,337		278,337		—
Morgan Stanley & Co. LLC		931,759		931,759		—
Scotia Capital (USA) Inc.		351,827		351,827		—
State Street Bank & Trust Company		128,742		128,742		—
UBS Securities LLC		1,539,321		1,539,321		—

	$	7,235,948	$	7,235,948	$	—

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.

In addition, each of the iShares MSCI Global Agriculture Producers and iShares MSCI Global Metals & Mining Producers ETFs indirectly pays its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA has contractually agreed to waive a portion of its investment advisory fees for each Fund through December 31, 2018 in an amount equal to the acquired fund fees and expenses attributable to each Fund’s investments in other iShares funds, if any.


50		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

For the year ended August 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Global Agriculture Producers	$	6,606
MSCI Global Energy Producers		1,808
MSCI Global Gold Miners		10,137
MSCI Global Metals & Mining Producers		34,277
MSCI Global Silver Miners		19,032

For the year ended August 31, 2016, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
MSCI Global Agriculture Producers	$	111,931	$	86,091
MSCI Global Energy Producers		191,961		247,357
MSCI Global Gold Miners		893,534		3,347,443
MSCI Global Metals & Mining Producers		286,116		341,873
MSCI Global Silver Miners		22,086		736,465

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 respective underlying index, may invest in shares of other iShares funds that invest in securities in each Fund’s respective underlying index.

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


NOTES TO FINANCIAL STATEMENTS			51

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, 2016 were as follows:


iShares ETF	Purchases		Sales
MSCI Global Agriculture Producers	$	1,816,474	$	1,832,143
MSCI Global Energy Producers		2,318,060		1,780,555
MSCI Global Gold Miners		46,162,207		34,569,825
MSCI Global Metals & Mining Producers		29,237,594		9,215,529
MSCI Global Silver Miners		9,763,821		8,813,861

In-kind transactions (see Note 4) for the year ended August 31, 2016 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Global Agriculture Producers	$	1,069,265	$	989,452
MSCI Global Energy Producers		10,013,449		—
MSCI Global Gold Miners		179,715,545		6,848,062
MSCI Global Metals & Mining Producers		136,686,456		16,342,709
MSCI Global Silver Miners		57,913,123		3,399,613

4.	*CAPITAL SHARE TRANSACTIONS*


52		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

5.	*PRINCIPAL RISKS*

MARKET RISK

Investing in the securities of non-U.S. issuers, whether directly or indirectly, 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.

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, political and social conditions affecting those market sectors may have a significant impact on its investment performance.


NOTES TO FINANCIAL STATEMENTS			53

Notes to Financial Statements (Continued)

iSHARES^®, INC.

CREDIT RISK

6.	*INCOME TAX INFORMATION*


54		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

August 31, 2016, attributable to passive foreign investment companies, 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 Global Agriculture Producers	$	(151,733	)	$	3,833		$	147,900
MSCI Global Energy Producers		—			(16,215	)		16,215
MSCI Global Gold Miners		1,966,387			114,654			(2,081,041	)
MSCI Global Metals & Mining Producers		976,901			46,647			(1,023,548	)
MSCI Global Silver Miners		1,531,931			10,644			(1,542,575	)

The tax character of distributions paid during the years ended August 31, 2016 and August 31, 2015 was as follows:


iShares ETF	2016		2015
MSCI Global Agriculture Producers
Ordinary income	$	596,259	$	764,487


MSCI Global Energy Producers
Ordinary income	$	1,004,806	$	528,102


MSCI Global Gold Miners
Ordinary income	$	300,013	$	425,675


MSCI Global Metals & Mining Producers
Ordinary income	$	2,206,034	$	7,833,689


MSCI Global Silver Miners
Ordinary income	$	80,025	$	294,253

As of August 31, 2016, 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	$	159,528	$	(1,515,500	)	$	(3,437,054	)	$	(474,900	)	$	(5,267,926	)
MSCI Global Energy Producers		232,122		(477,249	)		(3,825,028	)		(565,822	)		(4,635,977	)
MSCI Global Gold Miners		–		(13,627,904	)		(7,430,478	)		(721,246	)		(21,779,628	)
MSCI Global Metals & Mining Producers		944,466		(12,611,075	)		(29,950,161	)		(2,010,618	)		(43,627,388	)
MSCI Global Silver Miners		1,228,831		(3,202,603	)		10,259,046			(1,023,363	)		7,261,911

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


NOTES TO FINANCIAL STATEMENTS			55

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2016, 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	$	1,515,500
MSCI Global Energy Producers		477,249
MSCI Global Gold Miners		13,627,904
MSCI Global Metals & Mining Producers		12,611,075
MSCI Global Silver Miners		3,202,603

7.	*SUBSEQUENT EVENTS*

At the meeting of the Board held on September 28-29, 2016, the Board approved a one-for-two reverse stock split for each of the iShares MSCI Global Gold Miners ETF and iShares Global Metals & Mining Producers ETF, effective after the close of trading on November 4, 2016. The impact of the stock split will be to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Funds.


56		2016 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, 2016, 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, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 21, 2016


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			57

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2016:


iShares ETF	Qualified Dividend Income
MSCI Global Agriculture Producers	$	688,033
MSCI Global Energy Producers		1,223,109
MSCI Global Gold Miners		419,499
MSCI Global Metals & Mining Producers		2,742,291
MSCI Global Silver Miners		216,890

For corporate shareholders, the percentage of income dividends paid during the fiscal year ended August 31, 2016 that qualified for the dividends-received deduction were as follows:


iShares ETF	Dividends- Received Deduction
MSCI Global Agriculture Producers		39.58	%
MSCI Global Energy Producers		47.60
MSCI Global Gold Miners		17.50
MSCI Global Metals & Mining Producers		10.90

For the fiscal year ended August 31, 2016, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Global Agriculture Producers	$	453,672	$	57,063
MSCI Global Gold Miners		492,573		57,003
MSCI Global Metals & Mining Producers		2,688,785		149,681
MSCI Global Silver Miners		232,562		24,701


58		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			59

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^®, INC.

performance information, including additional detailed information on certain specific iShares funds requested by the Board, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.


60		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^®, INC.

services. The cost information distinguished, among other things, 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 that are not otherwise shared, 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.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			61

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	$	0.531683	$	—	$	—	$	0.531683		100	%		—	%		—	%		100	%
MSCI Global Energy Producers		0.543995		—		—		0.543995		100			—			—			100
MSCI Global Gold Miners		0.027147		—		0.001049		0.028196		96			—			4			100
MSCI Global Metals & Mining Producers		0.224672		—		0.005405		0.230077		98			—			2			100

Premium/Discount Information


62		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Global Agriculture Producers ETF

Period Covered: January 31, 2012 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.5% and Less than 2.0%		2		0.18	%
Greater than 1.0% and Less than 1.5%		23		2.07
Greater than 0.5% and Less than 1.0%		352		31.65
Between 0.5% and –0.5%		661		59.44
Less than –0.5% and Greater than –1.0%		68		6.12
Less than –1.0% and Greater than –1.5%		6		0.54

		1,112		100.00	%

iShares MSCI Global Energy Producers ETF

Period Covered: January 31, 2012 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.09	%
Greater than 2.5% and Less than 3.0%		3		0.27
Greater than 2.0% and Less than 2.5%		9		0.81
Greater than 1.5% and Less than 2.0%		20		1.80
Greater than 1.0% and Less than 1.5%		70		6.29
Greater than 0.5% and Less than 1.0%		210		18.88
Between 0.5% and –0.5%		724		65.11
Less than –0.5% and Greater than –1.0%		65		5.85
Less than –1.0% and Greater than –1.5%		9		0.81
Less than –1.5% and Greater than –2.0%		1		0.09

		1,112		100.00	%


SUPPLEMENTAL INFORMATION			63

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Global Gold Miners ETF

Period Covered: January 31, 2012 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		2		0.18	%
Greater than 3.5% and Less than 4.0%		1		0.09
Greater than 3.0% and Less than 3.5%		2		0.18
Greater than 2.5% and Less than 3.0%		2		0.18
Greater than 2.0% and Less than 2.5%		3		0.27
Greater than 1.5% and Less than 2.0%		11		0.99
Greater than 1.0% and Less than 1.5%		41		3.69
Greater than 0.5% and Less than 1.0%		245		22.03
Between 0.5% and –0.5%		743		66.81
Less than –0.5% and Greater than –1.0%		40		3.60
Less than –1.0% and Greater than –1.5%		14		1.26
Less than –1.5% and Greater than –2.0%		2		0.18
Less than –2.0% and Greater than –2.5%		4		0.36
Less than –2.5% and Greater than –3.0%		2		0.18

		1,112		100.00	%

iShares MSCI Global Metals & Mining Producers ETF

Period Covered: January 31, 2012 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		5		0.45	%
Greater than 4.0% and Less than 4.5%		1		0.09
Greater than 3.5% and Less than 4.0%		1		0.09
Greater than 3.0% and Less than 3.5%		1		0.09
Greater than 2.5% and Less than 3.0%		7		0.63
Greater than 2.0% and Less than 2.5%		12		1.08
Greater than 1.5% and Less than 2.0%		57		5.13
Greater than 1.0% and Less than 1.5%		200		17.99
Greater than 0.5% and Less than 1.0%		301		27.06
Between 0.5% and –0.5%		445		40.01
Less than –0.5% and Greater than –1.0%		56		5.04
Less than –1.0% and Greater than –1.5%		23		2.07
Less than –1.5% and Greater than –2.0%		3		0.27

		1,112		100.00	%


64		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Global Silver Miners ETF

Period Covered: January 31, 2012 through June 30, 2016


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		2		0.18	%
Greater than 2.5% and Less than 3.0%		5		0.45
Greater than 2.0% and Less than 2.5%		14		1.26
Greater than 1.5% and Less than 2.0%		31		2.79
Greater than 1.0% and Less than 1.5%		101		9.08
Greater than 0.5% and Less than 1.0%		283		25.45
Between 0.5% and –0.5%		516		46.40
Less than –0.5% and Greater than –1.0%		84		7.55
Less than –1.0% and Greater than –1.5%		37		3.33
Less than –1.5% and Greater than –2.0%		28		2.52
Less than –2.0% and Greater than –2.5%		8		0.72
Less than –2.5% and Greater than –3.0%		3		0.27

		1,112		100.00	%


SUPPLEMENTAL INFORMATION			65

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.


66		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director During the Past 5 Years
Cecilia H. Herbert (67)	Director (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	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 media company (since 2011).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015).

Jane D. Carlin (60)	Director (since 2015); Risk Committee Chair (since 2016).	Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012).

Charles A. Hurty (72)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); 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 (61)	Director (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (55)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).


DIRECTOR AND OFFICER INFORMATION			67

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c (Continued)

Robert H. Silver served as an Independent Director until March 31, 2016.


68		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^d



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since January 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).

Jack Gee (56)	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).

Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).

Scott Radell (47)	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 (53)	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).

Manish Mehta served as President until October 15, 2016.


DIRECTOR AND OFFICER INFORMATION			69

Notes:


70		2016 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-812-0816

AUGUST 31, 2016


2016 ANNUAL REPORT

iShares, Inc.

^Ø

iShares Edge MSCI Multifactor Emerging Markets ETF | EMGF | BATS

^Ø

iShares MSCI EM ESG Optimized ETF | ESGE | NASDAQ

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			10
Shareholder Expenses			10
Summary Schedules of Investments			11
iShares Edge MSCI Multifactor Emerging Markets ETF			11
iShares MSCI EM ESG Optimized ETF			15
Financial Statements			20
Financial Highlights			23
Notes to Financial Statements			25
Report of Independent Registered Public Accounting Firm			35
Tax Information			36
Board Review and Approval of Investment Advisory Contract			37
Supplemental Information			43
Trustee and Officer Information			45

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets advanced for the nine months ended August 31, 2016 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 4.04% for the reporting period.

Global stock markets began the period on a down note, declining amid lower energy prices and weaker global economic growth, including slowdowns in stronger developed economies such as the U.S. and U.K. In response, many of the world’s central banks took more aggressive actions to stimulate economic activity, including expanded quantitative easing measures and negative interest rates.

Among developed countries, the U.S. equity market returned approximately 5% for the reporting period. The U.S. Federal Reserve Bank (the “Fed”) ended a seven-year period of near-zero interest rates by increasing its federal funds target rate from a range of 0%-0.25% to a range of 0.25%-0.50% in December 2015. It was the Fed’s first interest rate hike since June 2006.

Although employment growth remained robust, other segments of the U.S. economy struggled, leading to three consecutive quarters of growth below a 1.5% annual rate. As a result, the Fed — which was expected to raise short-term interest rates further in 2016 — held rates steady through the first eight months of the year. Stable Fed monetary policy, as well as the relative strength of the U.S. economy compared with other regions of the globe, provided a favorable backdrop for U.S. equity market performance.

Equity markets in the Asia/Pacific region gained approximately 4% for the reporting period. New Zealand and Australia were the leading markets in the region, benefiting from improving economic growth during the reporting period, while the laggards included Singapore and Japan. In particular, the Japanese equity market declined by 15%, but a strong rally in the Japanese yen (which appreciated by 19% against the U.S. dollar for the reporting period) helped offset the overall market decline.

European stock markets declined by approximately 3% for the reporting period. Markets in Italy and Spain, which were adversely affected by political instability and struggling banking sectors, declined the most, while Portugal and the Netherlands performed best. In the U.K., the equity market advanced by 10%, but a sharp decline in the British pound in the wake of the Brexit vote led to negative returns in U.S. dollar terms for the reporting period.

Emerging markets stocks outperformed developed markets, advancing by 12% for the reporting period in U.S. dollar terms. Latin American equity markets generated the best returns, led by rebounding markets in Peru and Brazil, while stock markets in Eastern Europe lagged other countries in the region.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

Performance as of August 31, 2016

Cumulative Total Returns

NAV

MARKET

INDEX

Since Inception

11.16%

11.25%

11.19%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 12/8/15. The first day of secondary market trading was 12/10/15.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,212.00	$	2.67	$	1,000.00	$	1,022.70	$	2.44		0.48%

The iShares Edge MSCI Multifactor Emerging Markets ETF (the “Fund”) (formerly the iShares FactorSelect MSCI Emerging ETF) seeks to track the investment results of an index composed of stocks of large- and mid-capitalization companies in emerging markets that have favorable exposure to target style factors subject to constraints, as represented by the MSCI Emerging Markets Diversified Multiple-Factor 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 period from December 8, 2015 (inception date of the Fund) through August 31, 2016, the total return for the Fund was 11.16%, net of fees, while the total return for the Index was 11.19%.

The Index advanced for the reporting period, but underperformed broader emerging markets, as measured by the MSCI Emerging Markets Index.


6		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Value refers to undervalued companies; quality refers to companies with consistent and stable earnings, healthy balance sheets, and strong fundamentals; momentum refers to stocks experiencing an upswing in price; and size refers to companies with a smaller market capitalization.

Of the four factors, momentum’s detraction from the Index’s return outweighed contributions from (low) size and quality. Value contributed minimally to the Index’s performance for the reporting period.

While the net effect from targeted factors was slightly negative for the Index’s performance relative to the broader emerging markets, country and specific security exposures detracted significantly from relative performance. Underweight allocations to Indonesia, Thailand, and India detracted significantly from relative performance as those countries were particular outperformers within the broader emerging markets. Underweight allocations to oil and gas companies, as well as gold and other diversified metals companies, also detracted from the Index’s performance as commodities rebounded in the broader emerging markets during the reporting period.

From a country perspective, most countries in the Index contributed to the Index’s return. Brazil contributed significantly to the Index’s performance amid a rebound in commodity prices, signs of a stabilizing Chinese economy, and encouraging signals from the country’s new government. China contributed meaningfully to performance as improving industrial production and rising consumer spending helped to drive stock market gains. Taiwan advanced, supported by a rebound in exports and positive economic growth late in the reporting period. Although the Russian economy remained in recession, its stock market advanced, largely due to a rebound in energy prices. South Korea contributed to performance, benefiting from an improving economy and accommodative interest rate policy. Indian equities advanced as consumer spending rose to an all-time high.

From a sector standpoint, the information technology sector contributed the most to the Index’s performance, driven by strong merger and acquisition activity. The industrials sector detracted from performance for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector	Percentage of Total Investments*
Information Technology		18.49	%
Financials**		13.94
Consumer Staples		10.65
Consumer Discretionary		10.61
Industrials		9.26
Real Estate**		7.90
Health Care		6.78
Materials		6.71
Energy		5.65
Investment Companies		4.56
Utilities		3.78
Telecommunication Services		1.67

TOTAL		100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country	Percentage of Total Investments*
China		31.65	%
South Korea		12.82
Taiwan		12.07
South Africa		10.43
Brazil		9.70
Russia		7.84
India		4.56
Mexico		2.75
Qatar		1.51
United Arab Emirates		1.23

TOTAL		94.56	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI EM ESG OPTIMIZED ETF

Performance as of August 31, 2016

Cumulative Total Returns

NAV

MARKET

INDEX

Since Inception

12.09%

12.63%

The inception date of the Fund was 6/28/16. The first day of secondary market trading was 6/30/16.

For the fiscal period ended 8/31/16, the Fund did not have six months of performance and therefore line graphs are not presented.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (6/28/16)^a		Ending Account Value (8/31/16)		Expenses Paid During Period^b		Beginning Account Value (3/1/16)		Ending Account Value (8/31/16)		Expenses Paid During Period^b		Annualized Expense Ratio
$	1,000.00	$	1,120.90	$	0.83	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a	The beginning of the period (commencement of operations) is June 28, 2016.

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 (64 days for actual and 184 days for hypothetical expenses) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 10 for more information.


8		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

The iShares MSCI EM ESG Optimized ETF (the “Fund”) (formerly the iShares MSCI EM ESG Select ETF) seeks to track the investment results of an index composed of large- and midcapitalization emerging market equities that have positive environmental, social and governance characteristics, as represented by the MSCI Emerging Markets ESG Focus Index (formerly the MSCI EM ESG Select 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 period from June 28, 2016 (inception date of the Fund) through August 31, 2016, the total return for the Fund was 12.09%, net of fees, while the total return for the Index was 12.63%.

As represented by the Index, stocks of emerging market companies with positive environmental, social and governance (“ESG”) characteristics delivered solid returns in the reporting period, outperforming broader global markets.

The positive Index performance came amid broad gains in ESG investing overall and as emerging market economies improved their ESG practices. China, which represented approximately 25% of the Index on average, made the largest contribution to the Index’s performance during the reporting period. Industrial pollution and widespread corruption have caused China’s leaders to place greater emphasis on ESG factors in planning the country’s economic transformation. During the reporting period, Hong Kong companies prepared for the 2017 start of mandatory public disclosures about company policies, including how they intend to deal with operational risks that have broad implications for the environment and society.

South Korean ESG stocks also contributed to the Index’s return for the reporting period, as companies in South Korea earned a top ESG ranking as a result of initiatives such as the nation’s “Low Carbon, Green Growth” program. ESG stocks in Brazil and Taiwan also boosted the Index’s performance in the reporting period.

On a sector basis, the financials sector, led by the banking industry, was the largest contributor to the Index’s return during the reporting period. Following close behind, ESG stocks in the information technology sector also added to the Index’s performance. In particular, the technology hardware industry recorded notable strength, led by demand for new, premium-technology smartphones. The consumer discretionary sector also contributed to Index performance during the reporting period.

ALLOCATION BY SECTOR

As of 8/31/16


Sector	Percentage of Total Investments*
Financials**		26.52	%
Information Technology		25.29
Consumer Discretionary		10.88
Energy		7.45
Telecommunication Services		6.57
Materials		5.60
Consumer Staples		5.49
Industrials		5.22
Utilities		3.35
Health Care		2.30
Real Estate**		1.33

TOTAL		100.00	%

TEN LARGEST COUNTRIES

As of 8/31/16


Country	Percentage of Total Investments*
China		25.76	%
South Korea		14.76
Taiwan		11.72
India		8.12
Brazil		7.81
South Africa		7.34
Mexico		3.76
Malaysia		3.37
Russia		3.31
Thailand		3.12

TOTAL		89.07	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

About Fund Performance

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, 2016 (or commencement of operations, as applicable) and held through August 31, 2016, 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.


10		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 89.04%

BRAZIL — 5.87%
AES Tiete Energia SA		3,200	$	16,525
BB Seguridade Participacoes SA		49,600		447,103
CETIP SA – Mercados Organizados		19,200		259,459
EDP – Energias do Brasil SA		20,800		91,979
Embraer SA		47,200		209,158
M. Dias Branco SA		2,400		89,801
Odontoprev SA		32,000		126,167
Porto Seguro SA		4,000		34,078
Raia Drogasil SA		18,400		339,573
Sul America SA		15,200		76,757
Transmissora Alianca de Energia Eletrica SA Units		9,600		68,873

				1,759,473
CHINA — 31.58%
AAC Technologies Holdings Inc.		60,000		684,178
Alibaba Group Holding Ltd. ADR^a		768		74,642
ANTA Sports Products Ltd.		80,000		216,586
Beijing Capital International Airport Co. Ltd. Class H		128,000		144,390
China Communications Services Corp. Ltd. Class H		208,000		122,278
China Conch Venture Holdings Ltd.		108,000		207,736
China Everbright Ltd.		80,000		166,049
China Huishan Dairy Holdings Co. Ltd.^b		376,000		144,452
China Jinmao Holdings Group Ltd.		320,000		99,836
China Medical System Holdings Ltd.		104,000		174,300
China Power International Development Ltd.		152,000		57,416
China Resources Beer Holdings Co. Ltd.		112,000		258,459
China Resources Land Ltd.		144,000		405,634
China Southern Airlines Co. Ltd. Class H		160,000		94,885
Chongqing Changan Automobile Co. Ltd. Class B		50,400		76,671
Chongqing Rural Commercial Bank Co. Ltd. Class H		184,000		106,746
COSCO Pacific Ltd.		112,000		121,288
Country Garden Holdings Co. Ltd.		480,000		243,813
Dongfeng Motor Group Co. Ltd. Class H		208,000		222,299
Far East Horizon Ltd.		152,000		142,070


Security	Shares		Value
Fosun International Ltd.		160,000	$	221,536
Geely Automobile Holdings Ltd.		400,000		320,753
Guangdong Investment Ltd.		224,000		346,537
Guangzhou R&F Properties Co. Ltd. Class H		86,400		145,917
Haitian International Holdings Ltd.		48,000		96,659
Jiangsu Expressway Co. Ltd. Class H		112,000		157,386
Longfor Properties Co. Ltd.		124,000		199,826
Netease Inc.		3,768		798,703
New Oriental Education & Technology Group Inc. ADR		9,432		372,375
Nine Dragons Paper (Holdings) Ltd.		96,000		77,104
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		160,000		103,549
Shanghai Industrial Holdings Ltd.		32,000		83,334
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		58,400		160,366
Shenzhou International Group Holdings Ltd.		48,000		315,287
Shimao Property Holdings Ltd.		108,000		150,372
Shui On Land Ltd.		60,000		17,017
Sino Biopharmaceutical Ltd.		368,000		236,264
Sino-Ocean Group Holding Ltd.		180,000		83,540
Sinopec Engineering Group Co. Ltd. Class H		92,000		76,264
Sinopharm Group Co. Ltd. Class H		76,800		393,567
Sinotrans Ltd. Class H		240,000		118,813
Sunac China Holdings Ltd.		144,000		100,063
TAL Education Group Class A ADR^a		2,880		172,109
Tencent Holdings Ltd.		14,400		374,631
TravelSky Technology Ltd. Class H		56,000		121,865
YY Inc. ADR^a		1,992		102,488
Zhejiang Expressway Co. Ltd. Class H		128,000		142,740
Zhuzhou CRRC Times Electric Co. Ltd. Class H		40,000		212,718

				9,465,511
COLOMBIA — 0.20%
Corp. Financiera Colombiana SA		4,456		58,774

				58,774
CZECH REPUBLIC — 0.17%
O2 Czech Republic AS		5,368		50,121

				50,121
GREECE — 0.27%
JUMBO SA		6,624		80,784

				80,784


SCHEDULES OF INVESTMENTS			11

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
HUNGARY — 0.83%
Richter Gedeon Nyrt		12,175	$	249,410

				249,410
INDONESIA — 0.47%
AKR Corporindo Tbk PT		134,400		67,631
Waskita Karya Persero Tbk PT		343,200		72,184

				139,815
MALAYSIA — 0.98%
HAP Seng Consolidated Bhd		10,400		19,951
PPB Group Bhd		44,800		177,632
Westports Holdings Bhd		88,000		96,560

				294,143
MEXICO — 2.75%
Gentera SAB de CV		49,600		95,842
Gruma SAB de CV Series B		16,360		216,977
Grupo Aeroportuario del Pacifico SAB de CV Series B		26,400		261,289
Grupo Comercial Chedraui SA de CV		29,600		71,220
Grupo Lala SAB de CV		46,400		96,864
OHL Mexico SAB de CV^a		57,600		81,140

				823,332
POLAND — 0.68%
Enea SA^a		16,600		41,846
Eurocash SA		4,648		51,099
Grupa Azoty SA		3,536		58,048
Tauron Polska Energia SA^a		72,816		51,754

				202,747
QATAR — 1.51%
Barwa Real Estate Co.		11,928		119,563
Qatar Electricity & Water Co. QSC		1,496		88,946
Qatar Insurance Co. SAQ		10,192		243,510

				452,019
RUSSIA — 6.88%
Alrosa PJSC		194,400		224,887
Gazprom PJSC		282,880		584,008
Lukoil PJSC		1,008		45,199
Moscow Exchange MICEX-RTS PJSC		90,400		175,660
PhosAgro PJSC GDR^c		2,360		31,624
Rostelecom PJSC		73,200		91,894
RusHydro PJSC		10,736,000		130,589
Surgutneftegas OJSC		538,400		257,654


Security	Shares		Value
Tatneft PJSC Class S		106,320	$	520,597

				2,062,112
SOUTH AFRICA — 10.40%
Brait SE^a		26,672		211,177
Capitec Bank Holdings Ltd.		2,640		104,526
Coronation Fund Managers Ltd.		13,000		61,616
Fortress Income Fund Ltd.		55,608		128,720
Fortress Income Fund Ltd. Class A		85,136		95,064
Foschini Group Ltd. (The)		15,640		138,935
Hyprop Investments Ltd.		22,384		195,573
Liberty Holdings Ltd.		7,552		57,879
Life Healthcare Group Holdings Ltd.		77,960		203,985
Mondi Ltd.		9,736		196,518
Mr. Price Group Ltd.		18,544		232,484
Netcare Ltd.		83,584		186,605
Pick n Pay Stores Ltd.		23,248		116,428
PSG Group Ltd.		4,752		60,696
Resilient REIT Ltd.		25,400		203,695
RMB Holdings Ltd.		49,728		198,383
Sappi Ltd.^a		25,360		124,799
Sibanye Gold Ltd.		53,120		205,886
SPAR Group Ltd. (The)		14,928		194,790
Tiger Brands Ltd.		640		16,594
Truworths International Ltd.		35,360		182,998

				3,117,351
SOUTH KOREA — 11.53%
BGF retail Co. Ltd.		784		142,386
BNK Financial Group Inc.		19,600		155,569
DGB Financial Group Inc.		12,400		101,647
Dongbu Insurance Co. Ltd.		3,568		216,000
Dongsuh Cos. Inc.		2,832		78,356
E-MART Inc.		1,216		171,767
GS Retail Co. Ltd.		2,312		97,664
Hyosung Corp.		1,632		193,205
Hyundai Department Store Co. Ltd.		1,184		133,266
Hyundai Engineering & Construction Co. Ltd.		5,536		191,402
Hyundai Marine & Fire Insurance Co. Ltd.		3,731		113,101
Hyundai Steel Co.		5,880		270,533
KT&G Corp.		6,376		669,051
Lotte Chemical Corp.		1,248		299,968
Samsung Electronics Co. Ltd.		296		430,063
Yuhan Corp.		741		191,729

				3,455,707


12		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
TAIWAN — 12.05%
Catcher Technology Co. Ltd.		48,000	$	344,905
Chicony Electronics Co. Ltd.		40,200		99,453
Eclat Textile Co. Ltd.		16,000		202,707
Feng TAY Enterprise Co. Ltd.		26,880		127,917
Foxconn Technology Co. Ltd.		72,000		201,951
Highwealth Construction Corp.		64,000		99,437
Innolux Corp.		632,000		223,079
Inventec Corp.		176,000		130,625
Lite-On Technology Corp.		160,718		243,125
Nien Made Enterprise Co. Ltd.		8,000		90,764
Novatek Microelectronics Corp.		40,000		136,777
Powertech Technology Inc.		56,000		146,131
Realtek Semiconductor Corp.		40,000		160,098
Ruentex Development Co. Ltd.^a		64,000		74,931
Ruentex Industries Ltd.		24,000		37,251
Simplo Technology Co. Ltd.		24,000		79,041
Taiwan Business Bank^a		456,000		121,866
Taiwan Fertilizer Co. Ltd.		24,000		31,692
Taiwan Semiconductor Manufacturing Co. Ltd.		72,000		399,363
Transcend Information Inc.		16,000		46,139
United Microelectronics Corp.		816,000		295,741
Vanguard International Semiconductor Corp.		40,000		75,007
Wistron Corp.		123,110		90,401
WPG Holdings Ltd.		128,000		152,283

				3,610,684
THAILAND — 0.57%
Delta Electronics Thailand PCL NVDR		55,200		118,005
Thai Union Group PCL NVDR		84,800		52,670

				170,675
TURKEY — 1.08%
Eregli Demir ve Celik Fabrikalari TAS		95,468		143,568
Tofas Turk Otomobil Fabrikasi AS		12,079		88,824
Turkiye Sise ve Cam Fabrikalari AS		80,506		93,046

				325,438
UNITED ARAB EMIRATES — 1.22%
Dubai Islamic Bank PJSC		88,424		131,441
Emirates Telecommunications Group Co. PJSC		43,752		235,251

				366,692

TOTAL COMMON STOCKS
(Cost: $24,780,529)				26,684,788


Security	Shares		Value
PREFERRED STOCKS — 6.19%

BRAZIL — 3.81%
Braskem SA Class A		10,400	$	77,538
Centrais Eletricas Brasileiras SA Class B		17,600		155,112
Cia. Paranaense de Energia Class B		8,000		81,539
Itausa-Investimentos Itau SA		311,290		827,848

				1,142,037
CHILE — 0.18%
Embotelladora Andina SA Class B		15,144		54,378

				54,378
RUSSIA — 0.94%
Surgutneftegas OJSC		558,400		281,155

				281,155
SOUTH KOREA — 1.26%
AmorePacific Corp.		728		143,641
Hyundai Motor Co.		1,880		161,528
LG Chem Ltd.		448		72,323

				377,492

TOTAL PREFERRED STOCKS
(Cost: $1,593,719)				1,855,062

RIGHTS — 0.00%

BRAZIL — 0.00%
AES Tiete Energia SA^a		102		130

				130

TOTAL RIGHTS
(Cost: $0)				130

INVESTMENT COMPANIES — 4.55%

INDIA — 4.55%
iShares MSCI India ETF^d		46,118		1,363,248

				1,363,248

TOTAL INVESTMENT COMPANIES
(Cost: $1,279,509)				1,363,248


SCHEDULES OF INVESTMENTS			13

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

August 31, 2016


Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.54%

MONEY MARKET FUNDS — 0.54%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^e,f,g		160,740	$	160,740

				160,740

TOTAL SHORT-TERM INVESTMENTS
(Cost: $160,740)				160,740

TOTAL INVESTMENTS IN SECURITIES — 100.32% (Cost: $27,814,497)^h				30,063,968
Other Assets, Less Liabilities — (0.32)%				(94,984	)

NET ASSETS — 100.00%			$	29,968,984

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

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	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 Schedule 1.

^e	Affiliated money market fund.

^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.

^h	The cost of investments for federal income tax purposes was $27,839,769. Net unrealized appreciation was $2,224,199, of which $2,827,252 represented gross unrealized appreciation on securities and $603,053 represented gross unrealized depreciation on securities.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the period from December 8, 2015 (commencement of operations) to August 31, 2016, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:


Affiliated issuer	Shares held at beginning of period		Shares purchased		Shares sold			Shares held at end of period		Value at end of period		Dividend income		Net realized gain (loss)
iShares MSCI India ETF		—		49,468		(3,350	)		46,118	$	1,363,248	$	9,256	$	4,098

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	26,684,788	$	—	$	—	$	26,684,788
Preferred stocks		1,855,062		—		—		1,855,062
Rights		130		—		—		130
Investment companies		1,363,248		—		—		1,363,248
Money market funds		160,740		—		—		160,740

Total	$	30,063,968	$	—	$	—	$	30,063,968

See notes to financial statements.


14		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2016


Security	Shares		Value
COMMON STOCKS — 95.19%

BRAZIL — 4.66%
AES Tiete Energia SA		400	$	2,066
Ambev SA		3,200		18,989
Banco Bradesco SA		1,200		10,798
Banco do Brasil SA		2,000		14,355
Banco Santander Brasil SA Units		1,800		12,624
BM&FBovespa SA-Bolsa de Valores Mercadorias e Futuros		5,600		31,015
BRF SA		1,600		26,644
Cielo SA		400		4,155
Cosan SA Industria e Comercio		1,200		13,960
CPFL Energia SA		2,600		18,693
Duratex SA		2,600		6,987
EDP – Energias do Brasil SA		3,600		15,919
Engie Brasil Energia SA		1,000		12,060
Klabin SA Units		1,000		5,257
Kroton Educacional SA		600		2,561
Localiza Rent A Car SA		1,000		12,465
Lojas Renner SA		1,400		11,096
Natura Cosmeticos SA		1,800		17,344
Ultrapar Participacoes SA		600		13,810
WEG SA		2,400		12,268

				263,066
CHILE — 1.07%
Aguas Andinas SA Series A		28,358		17,040
Banco Santander Chile		391,904		20,661
Cia. Cervecerias Unidas SA		378		4,006
Empresas COPEC SA		2,114		18,570

				60,277
CHINA — 25.67%
AAC Technologies Holdings Inc.		2,000		22,806
Agricultural Bank of China Ltd. Class H		38,000		15,628
Air China Ltd. Class H		12,000		8,880
Alibaba Group Holding Ltd. ADR^a		1,486		144,424
Baidu Inc.^a		396		67,744
Bank of China Ltd. Class H		86,000		38,694
Bank of Communications Co. Ltd. Class H		10,000		7,722
Beijing Enterprises Water Group Ltd.		12,000		8,370
Belle International Holdings Ltd.		8,000		5,198
Brilliance China Automotive Holdings Ltd.		12,000		13,722
Byd Co. Ltd. Class H^a		2,000		13,923


Security	Shares		Value
China CITIC Bank Corp. Ltd. Class H		54,000	$	35,644
China Communications Construction Co. Ltd. Class H		4,000		4,363
China Construction Bank Corp. Class H		102,000		76,269
China COSCO Holdings Co. Ltd. Class H^a		15,000		4,989
China Everbright Bank Co. Ltd. Class H		48,000		22,711
China Everbright International Ltd.		18,000		23,020
China Everbright Ltd.		4,000		8,303
China Galaxy Securities Co. Ltd. Class H		9,000		8,435
China Life Insurance Co. Ltd. Class H		8,000		19,121
China Longyuan Power Group Corp. Ltd.		18,000		15,130
China Merchants Bank Co. Ltd. Class H		10,000		24,340
China Minsheng Banking Corp. Ltd. Class H		17,000		18,278
China Mobile Ltd.		7,000		86,454
China National Building Material Co. Ltd. Class H		12,000		5,415
China Oilfield Services Ltd. Class H		8,000		6,281
China Overseas Land & Investment Ltd.		4,000		13,227
China Pacific Insurance Group Co. Ltd. Class H		4,800		16,894
China Petroleum & Chemical Corp. Class H		16,000		11,613
China Shenhua Energy Co. Ltd. Class H		3,000		5,391
China Southern Airlines Co. Ltd. Class H		8,000		4,744
China Telecom Corp. Ltd. Class H		20,000		10,339
China Vanke Co. Ltd. Class H		3,200		8,210
Chongqing Rural Commercial Bank Co. Ltd. Class H		12,000		6,962
CITIC Ltd.		4,000		6,302
CNOOC Ltd.		16,000		19,658
CRRC Corp. Ltd. Class H		8,000		7,158
CSPC Pharmaceutical Group Ltd.		8,000		7,766
Ctrip.com International Ltd.^a		310		14,679
Dongfeng Motor Group Co. Ltd. Class H		8,000		8,550


SCHEDULES OF INVESTMENTS			15

Schedule of Investments (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2016


Security	Shares		Value
GCL-Poly Energy Holdings Ltd.		42,000	$	5,956
Geely Automobile Holdings Ltd.		40,000		32,075
GF Securities Co. Ltd. Class H		2,000		4,358
Guangzhou Automobile Group Co. Ltd. Class H		20,000		27,537
Haier Electronics Group Co. Ltd.		4,000		6,694
Huaneng Renewables Corp. Ltd. Class H		36,000		13,366
Huatai Securities Co. Ltd. Class H^b		2,800		5,927
Industrial & Commercial Bank of China Ltd. Class H		116,000		73,727
JD.com Inc. ADR^a		854		21,700
Kingsoft Corp. Ltd.		2,000		4,089
Lenovo Group Ltd.		36,000		24,273
Luye Pharma Group Ltd.^a		6,000		3,814
Netease Inc.		86		18,229
People’s Insurance Co. Group of China Ltd. (The) Class H		34,000		13,676
Ping An Insurance Group Co. of China Ltd. Class H		9,000		46,585
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		8,000		5,177
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		2,000		5,801
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		6,200		17,025
Shenzhou International Group Holdings Ltd.		4,000		26,274
Shui On Land Ltd.		27,000		7,658
Sinopharm Group Co. Ltd. Class H		2,400		12,299
Sinotrans Ltd. Class H		12,000		5,941
Tencent Holdings Ltd.		8,000		208,128
Vipshop Holdings Ltd. ADR^a		480		6,797
YY Inc. ADR^a		94		4,836

				1,449,299
COLOMBIA — 0.57%
Cementos Argos SA		8,092		32,326

				32,326
EGYPT — 0.25%
Commercial International Bank Egypt SAE GDR		2,200		9,244
Global Telecom Holding SAE GDR^a		2,436		4,848

				14,092


Security	Shares		Value
GREECE — 0.22%
Hellenic Telecommunications Organization SA		654	$	6,191
Titan Cement Co. SA		256		5,931

				12,122
HUNGARY — 0.71%
MOL Hungarian Oil & Gas PLC		646		40,270

				40,270
INDIA — 8.09%
Axis Bank Ltd. GDR^c		1,478		66,510
Dr. Reddy’s Laboratories Ltd. ADR		616		28,034
ICICI Bank Ltd. ADR		5,542		42,507
Infosys Ltd. ADR		5,912		93,765
Mahindra & Mahindra Ltd. GDR		2,182		47,240
Reliance Industries Ltd. GDR^b		1,840		57,408
Tata Motors Ltd. ADR		1,270		51,778
Wipro Ltd. ADR		6,722		69,371

				456,613
INDONESIA — 2.67%
Astra International Tbk PT		32,800		20,152
Bank Central Asia Tbk PT		27,600		31,314
Bank Danamon Indonesia Tbk PT		23,400		7,197
Bank Mandiri Persero Tbk PT		21,600		18,278
Bank Negara Indonesia Persero Tbk PT		23,800		10,541
Bank Rakyat Indonesia Persero Tbk PT		24,200		21,254
Perusahaan Gas Negara Persero Tbk PT		29,200		6,648
Telekomunikasi Indonesia Persero Tbk PT		57,000		18,091
Unilever Indonesia Tbk PT		5,000		17,207

				150,682
MALAYSIA — 3.36%
Astro Malaysia Holdings Bhd		9,800		7,129
Axiata Group Bhd		4,600		6,227
CIMB Group Holdings Bhd		9,800		11,599
DiGi.Com Bhd		17,400		21,538
HAP Seng Consolidated Bhd		7,600		14,580
Malayan Banking Bhd		12,400		23,910
Maxis Bhd^d		8,400		13,008
Petronas Dagangan Bhd		1,400		8,078
Public Bank Bhd		8,200		40,034
Sime Darby Bhd		14,600		28,404


16		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2016


Security	Shares		Value
Tenaga Nasional Bhd		4,200	$	15,265

				189,772
MEXICO — 3.74%
Cemex SAB de CV CPO^a		29,000		23,930
Coca-Cola Femsa SAB de CV Series L		5,200		38,596
Fomento Economico Mexicano SAB de CV		4,200		38,337
Gentera SAB de CV		15,000		28,984
Grupo Financiero Banorte SAB de CV		4,800		25,747
Grupo Financiero Santander Mexico SAB de CV Series B		10,000		19,015
Industrias Penoles SAB de CV		700		16,161
Kimberly-Clark de Mexico SAB de CV Series A		8,600		20,556

				211,326
PERU — 0.18%
Credicorp Ltd.		64		10,027

				10,027
PHILIPPINES — 0.87%
Energy Development Corp.		92,000		11,314
Metro Pacific Investments Corp.		75,200		11,168
SM Prime Holdings Inc.		41,800		26,778

				49,260
POLAND — 1.04%
Bank Handlowy w Warszawie SA		300		5,584
Bank Pekao SA		32		1,074
Bank Zachodni WBK SA		170		13,952
Energa SA		1,224		2,535
KGHM Polska Miedz SA		1,400		26,218
mBank SA^a		72		7,170
Polski Koncern Naftowy ORLEN SA		136		2,260

				58,793
QATAR — 0.87%
Commercial Bank QSC (The)		1,732		19,977
Ooredoo QSC		482		13,594
Qatar Gas Transport Co. Ltd.		2,228		15,297

				48,868
RUSSIA — 3.30%
Alrosa PJSC		11,200		12,956
Gazprom PJSC		13,520		27,912
Gazprom PJSC ADR		2,400		9,708
Lukoil PJSC		490		21,972
Lukoil PJSC ADR		160		7,176
Magnit PJSC GDR^c		280		11,043


Security	Shares		Value
Novatek OJSC GDR^c		252	$	27,166
Rosneft PJSC		1,700		8,971
Rosneft PJSC GDR^c		540		2,821
RusHydro PJSC		1,208,000		14,694
Sberbank of Russia PJSC		12,000		26,330
Sberbank of Russia PJSC ADR		970		8,895
Tatneft PJSC Class S		1,340		6,561

				186,205
SOUTH AFRICA — 7.32%
AngloGold Ashanti Ltd.^a		396		6,453
Aspen Pharmacare Holdings Ltd.		682		16,315
Barclays Africa Group Ltd.		1,726		17,466
Bid Corp. Ltd.^a		272		4,991
Coronation Fund Managers Ltd.		1,202		5,697
Exxaro Resources Ltd.		1,078		5,512
FirstRand Ltd.		3,432		10,279
Foschini Group Ltd. (The)		618		5,490
Gold Fields Ltd.		1,348		6,881
Growthpoint Properties Ltd.		3,504		6,056
Impala Platinum Holdings Ltd.^a		828		3,177
Imperial Holdings Ltd.		804		8,618
Investec Ltd.		4,234		24,700
Life Healthcare Group Holdings Ltd.		2,478		6,484
Mondi Ltd.		550		11,102
Mr. Price Group Ltd.		504		6,319
Naspers Ltd. Class N		562		91,896
Nedbank Group Ltd.		848		11,902
Netcare Ltd.		8,428		18,816
New Europe Property Investments PLC		1,154		12,820
Pioneer Foods Group Ltd.		618		7,140
RMB Holdings Ltd.		2,288		9,128
Sanlam Ltd.		5,404		22,947
Sasol Ltd.		430		10,817
Standard Bank Group Ltd.		3,698		33,461
Tsogo Sun Holdings Ltd.		5,154		10,655
Vodacom Group Ltd.		2,344		24,362
Woolworths Holdings Ltd./South Africa		2,500		13,701

				413,185
SOUTH KOREA — 13.90%
AmorePacific Group		132		17,166
BNK Financial Group Inc.		1,702		13,509
Celltrion Inc.^a		84		8,046
CJ CheilJedang Corp.		40		13,973
Coway Co. Ltd.		156		11,669


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2016


Security	Shares		Value
DGB Financial Group Inc.		2,338	$	19,165
Doosan Heavy Industries & Construction Co. Ltd.		268		6,646
GS Engineering & Construction Corp.^a		212		5,466
GS Holdings Corp.		442		19,583
Hana Financial Group Inc.		354		9,302
Hankook Tire Co. Ltd.		190		9,509
Hanwha Chemical Corp.		352		8,082
Hyundai Heavy Industries Co. Ltd.^a		76		9,372
Hyundai Mobis Co. Ltd.		10		2,336
Hyundai Motor Co.		58		6,918
Kangwon Land Inc.		552		19,530
KB Financial Group Inc.		360		12,560
LG Chem Ltd.		106		25,716
LG Corp.		466		27,542
LG Display Co. Ltd.		756		20,375
LG Electronics Inc.		376		17,367
LG Innotek Co. Ltd.		146		10,803
NAVER Corp.		26		19,704
Paradise Co. Ltd.		462		6,940
POSCO		156		32,319
S-Oil Corp.		278		17,627
Samsung C&T Corp.		74		10,055
Samsung Card Co. Ltd.		394		15,636
Samsung Electro-Mechanics Co. Ltd.		238		11,356
Samsung Electronics Co. Ltd.		154		223,749
Samsung Fire & Marine Insurance Co. Ltd.		84		20,341
Samsung SDI Co. Ltd.		194		20,096
Samsung SDS Co. Ltd.		62		8,897
Shinhan Financial Group Co. Ltd.		1,024		37,654
SK Holdings Co. Ltd.		64		12,169
SK Hynix Inc.		838		27,395
SK Innovation Co. Ltd.		78		10,178
SK Telecom Co. Ltd.		82		16,069

				784,820
TAIWAN — 11.67%
Acer Inc.		30,000		13,473
Advanced Semiconductor Engineering Inc.		22,000		27,040
Asia Pacific Telecom Co. Ltd.^a		16,000		5,395
AU Optronics Corp.		20,000		7,879
Cathay Financial Holding Co. Ltd.		12,000		15,165
Chailease Holding Co. Ltd.		6,000		10,362
China Steel Corp.		30,000		20,800


Security	Shares		Value
Chunghwa Telecom Co. Ltd.		22,000	$	79,041
CTBC Financial Holding Co. Ltd.		24,000		13,879
Delta Electronics Inc.		4,000		20,800
EVA Airways Corp.		14,700		6,810
Far Eastern New Century Corp.		14,000		10,325
Far EasTone Telecommunications Co. Ltd.		6,000		13,974
Fubon Financial Holding Co. Ltd.		6,000		8,490
Hiwin Technologies Corp.		2,040		10,544
Hon Hai Precision Industry Co. Ltd.		8,000		22,187
Hotai Motor Co. Ltd.		2,000		22,124
Innolux Corp.		16,000		5,648
Lite-On Technology Corp.		8,039		12,161
MediaTek Inc.		4,000		31,452
President Chain Store Corp.		4,000		31,831
Siliconware Precision Industries Co. Ltd.		10,000		14,923
Taiwan Fertilizer Co. Ltd.		4,000		5,282
Taiwan Mobile Co. Ltd.		8,000		28,112
Taiwan Semiconductor Manufacturing Co. Ltd.		38,000		210,775
Wistron Corp.		14,418		10,587

				659,059
THAILAND — 3.11%
Advanced Info Service PCL NVDR		2,200		10,518
BTS Group Holdings PCL NVDR		190,800		49,883
Kasikornbank PCL NVDR		2,800		15,975
Minor International PCL NVDR		19,000		22,642
PTT Exploration & Production PCL NVDR		2,600		6,103
PTT PCL NVDR		1,800		18,148
Siam Cement PCL (The) NVDR		2,600		39,809
Siam Commercial Bank PCL (The) NVDR		1,400		6,471
Thai Oil PCL NVDR		3,000		6,132

				175,681
TURKEY — 1.10%
Anadolu Efes Biracilik ve Malt Sanayii AS		944		5,854
Arcelik AS		5,488		39,243
Coca-Cola Icecek AS		1,356		16,937

				62,034
UNITED ARAB EMIRATES — 0.82%
Abu Dhabi Commercial Bank PJSC		12,100		21,149
DP World Ltd.		622		11,507


18		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2016


Security	Shares		Value
First Gulf Bank PJSC		1,162	$	3,701
National Bank of Abu Dhabi PJSC		3,884		9,644

				46,001

TOTAL COMMON STOCKS
(Cost: $4,839,018)				5,373,778

PREFERRED STOCKS — 4.46%

BRAZIL — 3.12%
Banco Bradesco SA		5,000		44,932
Cia. Brasileira de Distribuicao		600		9,344
Cia. Energetica de Minas Gerais		6,200		16,776
Cia. Paranaense de Energia Class B		1,800		18,346
Itau Unibanco Holding SA		4,400		48,779
Itausa-Investimentos Itau SA		9,800		26,062
Telefonica Brasil SA		800		12,045

				176,284
CHILE — 0.35%
Embotelladora Andina SA Class B		1,636		5,875
Sociedad Quimica y Minera de Chile SA Series B		532		13,626

				19,501
COLOMBIA — 0.19%
Bancolombia SA		1,092		10,758

				10,758
SOUTH KOREA — 0.80%
LG Chem Ltd.		42		6,780
LG Household & Health Care Ltd.		6		3,062
Samsung Electronics Co. Ltd.		30		35,623

				45,465

TOTAL PREFERRED STOCKS
(Cost: $208,969)				252,008


Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.28%

MONEY MARKET FUNDS — 0.28%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.65%^e,f,g		6,846	$	6,846
BlackRock Cash Funds: Treasury, SL Agency Shares
0.27%^e,f		8,895		8,895

				15,741

TOTAL SHORT-TERM INVESTMENTS
(Cost: $15,741)				15,741

TOTAL INVESTMENTS IN SECURITIES — 99.93% (Cost: $5,063,728)^h				5,641,527
Other Assets, Less Liabilities — 0.07%				3,851

NET ASSETS — 100.00%			$	5,645,378

ADR — American Depositary Receipts

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

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

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

^e	Affiliated money market fund.

^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.

^h	The cost of investments for federal income tax purposes was $5,068,505. Net unrealized appreciation was $573,022, of which $608,020 represented gross unrealized appreciation on securities and $34,998 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	5,373,778	$	—	$	—	$	5,373,778
Preferred stocks		252,008		—		—		252,008
Money market funds		15,741		—		—		15,741

Total	$	5,641,527	$	—	$	—	$	5,641,527

See notes to financial statements.


SCHEDULES OF INVESTMENTS			19

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2016


	iShares Edge MSCI Multifactor Emerging Markets ETF			iShares MSCI EM ESG Optimized ETF

ASSETS
Investments, at cost:
Unaffiliated	$	26,374,248		$	5,047,987
Affiliated (Note 2)		1,440,249			15,741

Total cost of investments	$	27,814,497		$	5,063,728

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	28,539,980		$	5,625,786
Affiliated (Note 2)		1,523,988			15,741

Total fair value of investments		30,063,968			5,641,527
Foreign currency, at value^b		123,725			10,198
Cash		—			38
Receivables:
Investment securities sold		283,655			299,108
Dividends and interest		28,596			4,604
Tax reclaims		—			38

Total Assets		30,499,944			5,955,513


LIABILITIES
Payables:
Investment securities purchased		332,973			301,123
Collateral for securities on loan (Note 1)		160,740			6,846
Due to custodian		25,083			—
Foreign taxes (Note 1)		52			6
Investment advisory fees (Note 2)		12,112			2,160

Total Liabilities		530,960			310,135


NET ASSETS	$	29,968,984		$	5,645,378


Net assets consist of:
Paid-in capital	$	27,506,253		$	5,039,084
Undistributed net investment income		314,129			29,307
Accumulated net realized loss		(99,999	)		(673	)
Net unrealized appreciation		2,248,601			577,660

NET ASSETS	$	29,968,984		$	5,645,378


Shares outstanding^c		800,000			100,000


Net asset value per share	$	37.46		$	56.45

^a	Securities on loan with values of $137,230 and $6,504, respectively. See Note 1.

^b	Cost of foreign currency: $124,138 and $10,292, respectively.

^c	$0.001 par value, number of shares authorized: 25 million and 25 million, respectively.

See notes to financial statements.


20		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Period ended August 31, 2016


	iShares Edge MSCI Multifactor Emerging Markets ETF^a			iShares MSCI EM ESG Optimized ETF^b

NET INVESTMENT INCOME
Dividends — unaffiliated^c	$	449,654		$	35,727
Dividends — affiliated (Note 2)		9,306			3
Securities lending income — affiliated — net (Note 2)		6,622			4

		465,582			35,734
Less: Other foreign taxes (Note 1)		(435	)		(32	)

Total investment income		465,147			35,702


EXPENSES
Investment advisory fees (Note 2)		55,963			4,334

Total expenses		55,963			4,334
Less investment advisory fees waived (Note 2)		(13,386	)		—

Net expenses		42,577			4,334

Net investment income		422,570			31,368


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(103,961	)		(673	)
Investments — affiliated (Note 2)		4,098			—
Foreign currency transactions		(7,857	)		(2,061	)

Net realized loss		(107,720	)		(2,734	)

Net change in unrealized appreciation/depreciation on:
Investments		2,249,471			577,799
Translation of assets and liabilities in foreign currencies		(870	)		(139	)

Net change in unrealized appreciation/depreciation		2,248,601			577,660

Net realized and unrealized gain		2,140,881			574,926

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,563,451		$	606,294

^a	For the period from December 8, 2015 (commencement of operations) to August 31, 2016.

^b	For the period from June 28, 2016 (commencement of operations) to August 31, 2016.

^c	Net of foreign withholding tax of $56,360 and $5,513, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			21

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares Edge MSCI Multifactor Emerging Markets ETF			iShares MSCI EM ESG Optimized ETF
	Period from December 8, 2015^a to August 31, 2016			Period from June 28, 2016^a to August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	422,570		$	31,368
Net realized loss		(107,720	)		(2,734	)
Net change in unrealized appreciation/depreciation		2,248,601			577,660

Net increase in net assets resulting from operations		2,563,451			606,294


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(100,720	)		—

Total distributions to shareholders		(100,720	)		—


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		27,506,253			5,039,084

Net increase in net assets from capital share transactions		27,506,253			5,039,084

INCREASE IN NET ASSETS		29,968,984			5,645,378

NET ASSETS
Beginning of period		—			—

End of period	$	29,968,984		$	5,645,378

Undistributed net investment income included in net assets at end of period	$	314,129		$	29,307


SHARES ISSUED
Shares sold		800,000			100,000

Net increase in shares outstanding		800,000			100,000

^a	Commencement of operations.

See notes to financial statements.


22		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout the period)

iShares Edge MSCI Multifactor Emerging Markets ETF


	Period from Dec. 8, 2015^a to Aug. 31, 2016
Net asset value, beginning of period	$	33.82

Income from investment operations:
Net investment income^b		1.27
Net realized and unrealized gain^c		2.50

Total from investment operations		3.77

Less distributions from:
Net investment income		(0.13	)

Total distributions		(0.13	)

Net asset value, end of period	$	37.46


Total return		11.16	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	29,969
Ratio of expenses to average net assets^e		0.49	%
Ratio of expenses to average net assets prior to waived fees^e		0.65	%
Ratio of net investment income to average net assets^e		4.91	%
Portfolio turnover rate^f		11	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount 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 rate excludes 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 rate for the period ended August 31, 2016 was 11%. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			23

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout the period)

iShares MSCI EM ESG Optimized ETF


	Period from June 28, 2016^a to Aug. 31, 2016
Net asset value, beginning of period	$	50.37

Income from investment operations:
Net investment income^b		0.31
Net realized and unrealized gain^c		5.77

Total from investment operations		6.08

Net asset value, end of period	$	56.45


Total return		12.09	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	5,645
Ratio of expenses to average net assets^e		0.45	%
Ratio of net investment income to average net assets^e		3.26	%
Portfolio turnover rate^f		9	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount 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.

See notes to financial statements.


24		2016 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
Edge MSCI Multifactor Emerging Markets^a,b		Non-diversified
MSCI EM ESG Optimized^c,d		Non-diversified

Formerly the iShares FactorSelect MSCI Emerging ETF.

The Fund commenced operations on December 8, 2015.

Formerly the iShares MSCI EM ESG Select ETF.

The Fund commenced operations on June 28, 2016.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•


NOTES TO FINANCIAL STATEMENTS			25

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

Open-end U.S. mutual funds (including money market 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.


26		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			27

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2016:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
Edge MSCI Multifactor Emerging Markets
Credit Suisse Securities (USA) LLC	$	137,230	$	137,230	$	—

MSCI EM ESG Optimized
Morgan Stanley & Co. International PLC	$	6,504	$	6,504	$	—

Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in each Fund’s statement of assets and liabilities.


28		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

For its investment advisory services to the iShares Edge MSCI Multifactor Emerging Markets ETF, BFA is entitled to an annual investment advisory fee of 0.65% based on the average daily net assets of the Fund. In addition, the Fund indirectly pays its pro rata share of fees and expenses attributable to its investments in other investment companies. BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through December 31, 2016 on those assets attributable to the Fund’s investments in other iShares funds, if any. For the period ended August 31, 2016 BFA has voluntarily waived a portion of its investment advisory fees for the Fund in the amount of $10,646.

For its investment advisory services to the iShares MSCI EM ESG Optimized ETF, BFA is entitled to an annual investment advisory fee of 0.45% based on the average daily net assets of the Fund.

For the period ended August 31, 2016, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
Edge MSCI Multifactor Emerging Markets	$	1,678
MSCI EM ESG Optimized		1


NOTES TO FINANCIAL STATEMENTS			29

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the period ended August 31, 2016, the purchase and sales transactions executed by the iShares MSCI EM ESG Optimized ETF pursuant to Rule 17a-7 under the 1940 Act were $14,401 and $64,599, respectively.

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.

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 period ended August 31, 2016 were as follows:


iShares ETF	Purchases		Sales
Edge MSCI Multifactor Emerging Markets	$	13,170,421	$	1,256,542
MSCI EM ESG Optimized		2,632,583		505,947

In-kind transactions (see Note 4) for the period ended August 31, 2016 were as follows:


iShares ETF	In-kind Purchases
Edge MSCI Multifactor Emerging Markets	$	15,857,088
MSCI EM ESG Optimized		2,922,025

4.	*CAPITAL SHARE TRANSACTIONS*


30		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

5.	*PRINCIPAL RISKS*

MARKET RISK

Investing in the securities of non-U.S. issuers, whether directly or indirectly, 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			31

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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*


iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
Edge MSCI Multifactor Emerging Markets	$	—	$	(7,721	)	$	7,721
MSCI EM ESG Optimized		—		(2,061	)		2,061


32		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The tax character of distributions paid during the period ended August 31, 2016 was as follows:


iShares ETF	2016
Edge MSCI Multifactor Emerging Markets
Ordinary income	$	100,720

As of August 31, 2016, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a		Total
Edge MSCI Multifactor Emerging Markets	$	336,234	$	(96,832	)	$	2,223,329	$	2,462,731
MSCI EM ESG Optimized		33,442		(39	)		572,891		606,294

As of August 31, 2016, the following Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:


iShares ETF	Non- Expiring
Edge MSCI Multifactor Emerging Markets	$	96,832
MSCI EM ESG Optimized		39

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2016 and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

7.	*LINE OF CREDIT*

The Funds along with certain other iShares funds, are parties to a $250 million credit agreement with State Street Bank and Trust Company, which expires on October 25, 2017. 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 0.20% 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 (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) 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.

The Funds did not borrow under the credit agreement during the period ended August 31, 2016.


NOTES TO FINANCIAL STATEMENTS			33

Notes to Financial Statements (Continued)

iSHARES^®, INC.

8.	*SUBSEQUENT EVENTS*


34		2016 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 Edge MSCI Multifactor Emerging Markets ETF and iShares MSCI EM ESG Optimized ETF (the “Funds”) at August 31, 2016, 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, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 21, 2016


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			35

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2016:


iShares ETF	Qualified Dividend Income
Edge MSCI Multifactor Emerging Markets	$	202,419
MSCI EM ESG Optimized		21,477

For the fiscal year ended August 31, 2016, the Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
Edge MSCI Multifactor Emerging Markets	$	515,270	$	56,567
MSCI EM ESG Optimized		41,240		5,545


36		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares Edge MSCI Multifactor 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 all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on April 28, 2016 and May 9, 2016. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 17, 2016, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. 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 21-23, 2016, 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			37

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 capital markets support and analysis, product design and other services, 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 iShares funds and their shareholders. 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 21-23, 2016 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 its 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 profitability 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.


38		2016 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 funds registered under the 1940 Act (including sub-advised funds), collective trust funds, 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 the same investment objective and strategy as the Fund and that track the same index 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 and generally more extensive services provided to the Fund, as well as other significant differences. 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 certain of the Other Accounts (particularly institutional clients) 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			39

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

II. iShares MSCI EM ESG Optimized ETF

At a meeting held on May 17, 2016, the Board, including all of the Independent Directors, approved the selection of BFA as investment adviser and approved the proposed Advisory Contract for the Fund, based on its review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review.

In selecting BFA and approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and made the following conclusions:

Expenses of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (including, where applicable, 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 Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’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 proposed investment advisory fee and expense level of the Fund supported the Board’s approval of the Advisory Contract.

Nature, Extent and Quality of Services to be Provided by BFA — The Board reviewed the scope of services to be provided by BFA under the Advisory Contract. 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 iShares funds and their shareholders. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Fund would be similar to the scope and quality of services provided to other


40		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

iShares funds. The Board also considered BFA’s compliance program and its compliance record with respect to other iShares funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and 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 who will be responsible for the day-to-day management of the Fund, as well as the resources that will be 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 throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on the review of this information, the Board concluded that the nature, extent and quality of services to be provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the Advisory Contract.

Costs of Services to be Provided to the Fund and Profits to be Realized by BFA and Affiliates — The Board did not consider the profitability of the Fund to BFA based on the fees payable under the Advisory Contract or revenue to be received by BFA or its affiliates in connection with services to be provided to the Fund since the proposed relationship had not yet commenced. The Board noted that it expects to receive profitability information from BFA periodically following the Fund’s launch and will thus be in a position to evaluate whether any new or additional breakpoints or other adjustments in Fund fees would be appropriate.

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. The Board noted that it had previously received and considered information 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 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 that are not otherwise shared, 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.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			41

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — Except as noted below, the Board did not consider the “fallout” benefits or ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA since the proposed relationship had not yet commenced. However, 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 considered the potential 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 also considered the potential for revenue to BTC, the Fund’s securities lending agent, and its affiliates in the event of any loaning of portfolio securities of 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, will be 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 Advisory Contract.

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 to be 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 Advisory Contract.


42		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^®, INC.

Section 19(a) Notices

Premium/Discount Information

iShares Edge MSCI Multifactor Emerging Markets ETF

Period Covered: December 8, 2015 through June 30, 2016


Premium/Discount	Number of Days		Percentage of Total Days
Greater than 1.0%		3		2.11	%
Greater than 0.5% and Less than 1.0%		10		7.04
Between 0.5% and –0.5%		103		72.53
Less than –0.5% and Greater than –1.0%		18		12.68
Less than –1.0% and Greater than –1.5%		6		4.23
Less than –1.5%		2		1.41

		142		100.00	%


SUPPLEMENTAL INFORMATION			43

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI EM ESG Optimized ETF

Period Covered: June 28, 2016 through June 30, 2016


Premium/Discount	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		1		50.00	%
Between 0.5% and –0.5%		1		50.00

		2		100.00	%


44		2016 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			45

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director During the Past 5 Years
Cecilia H. Herbert (67)	Director (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	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 media company (since 2011).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Director of Forward Funds (23 portfolios) (since 2009); Director of Salient MF Trust (4 portfolios) (since 2015).

Jane D. Carlin (60)	Director (since 2015); Risk Committee Chair (since 2016).	Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012).

Charles A. Hurty (72)	Director (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); 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 (61)	Director (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

John E. Martinez (55)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).


46		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors^c (Continued)

^c	Robert H. Silver served as an Independent Director until March 31, 2016.


DIRECTOR AND OFFICER INFORMATION			47

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^d



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since January 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).

Jack Gee (56)	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).

Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).

Scott Radell (47)	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 (53)	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).

^d	Manish Mehta served as President until October 15, 2016.


48		2016 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			49

Notes:


50		2016 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-816-0816

Item 2. Code of Ethics.

iShares, Inc. (the “Registrant”) adopted a new code of ethics on July 1, 2016 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, 2016, 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 and Madhav V. Rajan, all of whom are independent, as that term is defined under Item 3(a)(2). Robert H. Silver resigned from the Board of Trustees effective March 31, 2016.

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 fourty-eight series of the Registrant for which the fiscal year-end is August 31, 2016 (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 $712,460 for the fiscal year ended August 31, 2015 and $760,740 for the fiscal year ended August 31, 2016.

(b)

Audit-Related Fees – There were no fees billed for the fiscal years ended August 31, 2015 and August 31, 2016 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 $171,672 for the fiscal year ended August 31, 2015 and $181,488 for the fiscal year ended August 31, 2016.

(d)

All Other Fees – There were no other fees billed for the fiscal years ended August 31, 2015 and August 31, 2016 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, 2016 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 $4,167,972 for the fiscal year ended August 31, 2015 and $5,037,021 for the fiscal year ended August 31, 2016.

(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 Charles A. Hurty, John E. Kerrigan and Madhav V. Rajan. Robert H. Silver resigned from the Board of Trustees effective March 31, 2016.

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/ Martin Small
Martin Small, President (Principal Executive Officer)

Date:		November 2, 2016

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/ Martin Small
Martin Small, President (Principal Executive Officer)

Date:		November 2, 2016



By: /s/ Jack Gee
Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)



Date:		November 2, 2016